Foodnews 07 10 11


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Foodnews 07.10.2011 Page 3 Article about Anadolu Etap (my employer with 11.2011)

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Foodnews 07 10 11

  1. 1. VOLUME 39 No.40 7 OCTOBER, 2011Coke plans to lead industryin planting new citrus grovesBY NEIL MURRAY To ensure growth, Coke has focused on sustainable sourcing, winning brand propo-CITRUS disease and the failure of farmers sitions and efficient operating practices, heto re-plant is regarded by Coca-Cola as the said. Expanding on that, as regards sourcing,most significant threat to the future of the he commented: “We set out to establish andjuice industry. And the soft drinks giant in some cases re-establish partnerships withhas hinted that it is planning to do some- juice suppliers and to source it at competitivething about it. prices so we could continue to invest in the Ian McLaughlin, general manager of market. In many cases we have had relation-Coke’s Global Juice business unit, told dele- ships without key suppliers for decades, ingates at this week’s World Juice 2011 confer- some cases for four decades, and the reality isence in Madrid: “Global warming is impact- that we see that as a key pillar of our on the raw material supply and in certain It is critically important that we have a strongsegments is threatening the future of the supply network from our growers and pro-processing industry. In particular, the cessors.” To this end, Coke established aincrease in disease is a worrying one because dedicated sourcing team based in Zurich.of the impact on trees and also because it is a Coke’s diversification into fruit juice hasbarrier to growth. thrown up some interesting challenges. One “We are all aware of the decline in the was the need to move from a formula-basedFlorida citrus market but even the recent operating system (because Coke’s “DNA ishigh prices of orange juice have not stimu- rooted in sparkling beverages”) to a recipe- Ian McLaughlin at World Juice 2011lated widespread re-planting. There has been based system. The next was to set up avirtually no re-planting in Florida. What we stimulus to re-planting and we are not seeing stepped product portfolio, starting withnormally see is high prices for juice are a that. I would say greening is the greatest cheap powders and concentrates (still very threat that we have and it is essential that we important in some markets), and moving up continue to invest in prevention and cure. through mainstream fruit juices, and then IN THIS ISSUE Not doing anything about it is not an issue. We are working with the industry in order to premium chilled juices, to the present pre- mium pinnacle of smoothies. make [re-planting] happens.” • Coca-Cola plans major His presentation, however, was generally Key brand platforms investment in Russia .................. 4 upbeat and spotlighted the growth strategy Coke has organised about 1 000 products • Suntory considers Russian that has enabled Coke to double its fruit juice into a few key platforms aligned under a expansion .................................... 5 market share since 2000 and to record a 10% global master brand. “We believe it was the compound annual growth rate (CAGR) since right decision to take,” said McLaughlin. “It • Serbia set for bumper autumn 2005. Despite the general economic gloom has allowed us to retain equity and consumer fruit crops .................................... 7 (especially in the Eurozone), he told dele- connection in many of the brands we have • Cristal deal to create new gates that there was still room for growth. had for decades.” force in sugar .............................. 7 “We strongly believe at Coke that this is the Coke now has three one-billion-dollar right time to think about growth,” he said. juice brands: Simply Minute Maid in North • MEYED calls for ‘World Fruit “We believe that we will get through this America, Minute Maid Pulpy in China and Juice Day’................................... 10 particular crisis and return to growth and Del Valle in Latin America. Simply Minute • Sharp rise in apple imports there are many opportunities to grow our Maid was launched in 2001, with strict con- to Brazil ...................................... 12 business. sistency in positioning, and provided Coke “We need a multi-year and multi-decade with valuable lessons as to how it might • Spanish canned foods gain approach to planning the success of our busi- approach premium juice segments in other from Euro crisis......................... 14 ness and that really is the approach we are markets around the world. • Peruvian enjoys strong canned taking at Coca-Cola. We do not want to Minute Maid Pulpy (strictly speaking a asparagus sales ........................ 15 waste this crisis. We want to use it as an juice drink) offers sensory experiences in opportunity to focus and plan for our next sight, smell, sound, touch and taste. Since it • Poland dominates frozen phase of growth. We have a very positive was launched, it “has taken China by storm strawberry market ..................... 28 view of the future.” continued on page 8 Incorporating Eurofood, World Drinks, Chocolate & Confectionery International and Fruit and Vegetable Markets
  2. 2. CANNED FOODS INDUSTRY NEWS 3 • Turkish planting Company Index Exciting times Aeon 7 Hormel Foods 22 ‘PERU is the new Chile’ was the phrase programme means AgriNurture 23 Intersnack 16 banded about at the recent Expoalimentaria Agrofert 23 Jordans & Ryvita 21 food fair in Lima, and there’s no doubt Cutrale may make apple about it - Peru has come a long way in the AIB Agroindustrias 15 Kraft 16 last decade. Growing international demand juice Anadolu Etap 3 Musgrave 5 for Peruvian fruits and vegetables led Arla 23 Naked Juice 9 organisers to set up the trade fair back inFRUIT JUICE 8 2009, and it is now one of the key events in Asahi 5 Nestlé 3, 22 the agri-food industry calendar.• Portuguese juice manufacturer signs Barens 3 Ocean Spray 9 Perhaps one of the busiest and most suc- Boost Juice 9 PepsiCo 22 cessful parts of the fair has been PeruNatura,long-term local supply deal an area dedicated to showcasing organic Camposol 15 Ralcorp 3 and sustainably produced food and drink in Cargill 23 Sahale Snacks 17 the country. Particularly noticeable wereFRESH PRODUCE 12 the stands upon stands featuring organi- Carrefour 20 Sainsbury’s 4 Coca-Cola 1, 3, 4 Sara Lee 3 cally grown Maca, a native root vegetable• Large harvest and smaller fruits may used to “improve energy levels and sexual Coca-Cola Hellenic 4 Sumol+Compal 8 desire”, and Sancha Inchi, a ‘wonder nut’aid US pear exports which contains naturally high levels of Conservas Libre Suntory Holdings 5 Caribe 13 Superquinn 5 omega 3 and 6.CANNED FOODS 13 Interestingly, the majority of Peruvian Cristal Union 7 Talkingrain 8 food production is in fact organic, since few Cutrale 3 Tank Management SA8 pesticides are needed, but organic certifica-• Chilean peach production helped by Diamond Foods 22 Unilever 22 tion in the EU and the US is hard to attainfavourable winter and often expensive. It is not uncommon Edeka 7 United Bakeries 23 for companies to find a partner within the Emperia 3 Vermandoise 7 EU-trading bloc willing to put up theDRIED FRUIT & NUTS 16 Esselunga 5 Viru 15 money. For companies that have received certifi- Gomes da Costa 14 Walmart 22• Development of African industry cation, the future looks bright. Acopagro, a Heinz Wattie’s 5 co-operative of chocolate producers thatessential to global cashew trade FOODNEWS interviewed in this issue (p18), has enjoyed international success,CHOCOLATE & with its cacao beans now used in fine choco- late production in Switzerland, theCONFECTIONERY 18 ONLINE TOP TEN Netherlands and the US. All would not have been possible, however, without foreign• Lucrative cocoa lures Peruvian investment, and the country owes a lot to 1 Italian tomato harvest lower away from coca for second year running One of the country’s best known exports is of course asparagus, particularly the 2 Class action lawsuit canned and fresh variety, and FOODNEWSFOOD SAFETY 19 launched against US juice has an in depth look at the industry this maker week (p15). But in tough economic times, it• UK E. Coli outbreak publicised by 3 Lack of apples hits seems processors are keen to diversify their operations to appeal to as many customersHPA only after it has ended Norwegian juice as possible. AIB Agroindustrias, for exam- manufacturers ple, is to begin exporting avocados to theBUSINESS INTELLIGENCE 20 4 Turkish programme means US, in addition to its asparagus, citrus and Cutrale may make apple grapes. There was perhaps unsurprisingly in a• Carrefour faces tough second half as juice country where you can’t escape the drink, aFrench struggles persist 5 Edeka reveals expansion Pisco hall. The Peruvians are keen to point plans out that the grape liquor is completely dif- 6 Chinese tomato forecast cut ferent from that produced in Chile (that oldMERGERS & ACQUISITIONS 23 rivalry) and production has boomed in the as harvest ends early last five years. Wine has also undergone• Cargill invests in AgriNurture 7 World enjoys taste of something of a transformation, with restau- Pakistani mangoes rant diners now recommended a Peruvian 8 UK E. Coli outbreak red wine to accompany their meals, some-WEATHER WATCH 24 thing which would never have happened a revealed 10 months after few years ago.• Increasing rainfall across US might first cases All told, it is an exciting time to be in 9 Smaller Valencia lemon crop Peru. One gets the feeling the country is onprompt disease outbreak the cusp of becoming a very big player in 10 Kraft and Intersnack pledge the international food and drinks market, to purchase African cashews and yes, it could even give Chile a run for itsMARKET DATA 25 Many more articles online money. FOODNEWS’ Peru spotlight is out in late• Nuts and dried fruit export data in our Daily News section November.2 October 7 2011 © Informa UK Ltd 2011
  3. 3. INDUSTRY FOODS CANNED FOODS CANNED NEWSTurkish programme means News in BriefCutrale may make apple juice Smaller Valencia lemon crop THE Comunitat Valenciana expects its 2011/12 citrus harvest to contract 9.8% compared with last year, with orange seeingBY NEIL MURRAY completed. the biggest fall. The latest figures from the Already, around 1 000 hectares have been local government peg the upcoming harvestA JOINT venture between (among others) planted. This will double in another two at 3.168 million tonnes, while the orangea major Brazilian orange juice processor, a years, and there should be three million harvest will be just 1.372 million tonnes, asoft drinks giant and a Turkish soft drinks fruit trees planted by 2014. Already, the fall of 14.4%. Mandarin production, mean-bottler and juice maker will vastly expand project has cost USD90 million. while, will reach 1.572 million tonnes, declin-the supply of Turkish raw material for The project involves stone fruit (peaches, ing 9% on 2010/11. As regards lemon andjuicing. chiefly), apple, pomegranate and sour cher- grapefruit, groves in the province of Alicante Earlier this year, MEyED, the Turkish ry. Citrus is not being considered because, have shown an increase in volume for bothfruit juice association, called for more con- according to Demir Sarman, general man- fruits in 2011/12, by 23% (217 642 tonnes)tract growing of fruits to assist the country’s ager of Anadolu Etap: “For the time being, and 24% (6 178 tonnes) respectively. Theprocessors (FOODNEWS 14 January). Now competing against Brazilian citrus is diffi- biggest fall by province can be seen inmore details are available of a multi-million cult and the land available for citrus growing Valencia, down 12% (1.9 million tonnes),dollar growing project, which has been in in Turkey is limited.” while Alicante will see production drop 3% (629 398 tonnes). Castellon expects its citrusprogress for some time but which seems to However, he added: “It is a new venture production to slide 9% (607 736 tonnes).have escaped much notice outside the for Cutrale. It will allow them to expand intocountry. other fruit juices.” Thus it is perfectly Fewer tomatoes Anadolu Etap, one of Turkey’s largest conceivable that in a few years, Cutrale will ITALY’s processing tomato harvest is peggedjuice processors, is also the exclusive Turkish be a major producer of AJC and/or peach at 4.6 million tonnes, 9% below last year’sCoca-Cola bottler, with sales of Coke prod- purée. production, according to the latest estimateucts in nine countries. Cutrale, one of It is expected that Coca-Cola, which is from the processing vegetables association,Brazil’s major orange juice manufacturers, is operating a global programme of partner- ANICAV. In a press release, the associationa shareholder in Anadolu Etap. The project ships with fruit processors, will also eventu- described it as a notable reduction, com-involves planting 10 million fruit trees by ally have access to raw material produced pared with the 5.1 million tonnes processed2020, at a total cost of USD400-500 million, under the programme, which will allow it to last year and the 5.7 million tonnes the yearincluding the construction of new fruit juice accelerate any programme it has for fruit before. ANICAV also drew attention to theprocessing plants – two have already been juice production in Turkey. increase in production cost of 25-30% com- pared with last year, estimated by its mem-Suitors eye Polish Emperias retail arm ber industries. The biggest cost increases were for methane, raw material (processors this year paid EUR90 for round varieties andBY ALEX MASTERS Chief executive, Artur Kawa, refused to 100 for plum tomatoes), transport and pack- comment on any suitors’ names but told aging, all of which would imply a price hike inA RAFT of private equity funds and gro- Reuters that the company plans to sign a industrial sales of products, the associationcery chains are eyeing Polish Emperias deal with a potential investor “at the end of said.retail arm. the year”. It is understood that four private equity The list of suitors is understood to Nestle R+D plant opensfunds (Advent International, Penta include both financial and strategic bidders NESTLE has opened a new Global TechnologyInvestments, Mid Europa Partners and for the retail arm. Last week, sources told Centre for confectionery products in York, theDoughty Hanson) are among more than a Reuters that Tesco (the worlds number UK, as part of its research and developmentdozen bidders shortlisted for the race, three retailer) and its biggest European policy. It is expected that the food giant willReuters reported, citing unnamed sources. rival Carrefour are also eyeing the retail create new confectionery products there, in Emperia first announced in June that it arm. addition to reformulating existing confectionswould sell off the Stokrotka, Delima, Earlier this year, MEP bought one of to better suit current markets. All new prod-Społem Tychy and Maro Market chains, Polands largest retail chains Zabka from ucts will be rigorously tested, with new pack-which comprise a total of 233 stores, Polish Penta for about EUR400 million (USD541 aging being designed. Nestlé has said itdaily, Gazeta Wyborcza, reported. million). hopes its York centre will help stimulate ideas The retail arm has been valued by the Meanwhile, Emperia abandoned plans for new products which will surprise theseller at PLN900 million (USD271 million). for a PLZ926 million sale of its distribution senses, while using sustainable materials andEmperia in its entirety is said to be valued arm to wholesaler Eurocash after it failed to saving on almost USD440 million. get regulatory approval. Chocolate Christmas figurineRalcorp snaps up Sara Lee dough business SWISS confectionery brand Barens has launched a Father Christmas milk chocolateRALCORP confirmed on Wednesday refrigerated dough category. figurine “to help retailers boost festive(3 October) that it has completed the He added that the deal will also make impulse buys in the lead up to the holidayacquisition of Sara Lee’s private brand “important contributions” to Ralcorp’s season”. The chocolate figurines are pro-refrigerated dough business for USD545 earnings following the planned separation duced using ethically sourced, natural ingredi-million. of the Post cereals business. ents. Each 25g chocolate figurine is pack- aged in a clear, festively decorated wrapper Kevin Hunt, co-chief executive and presi- With products ranging from nutritional and has a recommended retail price ofdent of Ralcorp, said the dough business bars and frozen dough to salad dressings GBP0.49. The figurine follows on from thewill become “a key part” of Ralcorp’s frozen and waffles, Ralcorp produces Post brand- launch of the company’s Amador range inbakery division and immediately positions ed cereals and a variety of private-brand early August (FOODNEWS 26 August).Ralcorp as a leader in the USD1.8 billion foods as well as frozen bakery products.© Informa UK Ltd 2011 October 7 2011 3
  4. 4. CANNED FOODSINDUSTRY NEWSCANNED FOODSCoca-Cola plans major investmentto stimulate growth in RussiaBY ALEX MASTERSTHE Coca-Cola Company and its bot-tling partner, Coca-Cola Hellenic, haveunveiled expansion plans in Russia, whichinclude a USD3.0 billion investment pro-gramme. News of the investment, which is set tostart in 2012 and last for five years, coincideswith the official opening of a new Coca-Cola Hellenic plant in the Rostov region. Coke’s chief executive, Muhtar Kent, saidhis company continues to invest in Russia tostimulate growth across its supply chain. “[The] announcement underscores theCoca-Cola system’s long-term strategy ofinvesting in Russia,” he said. “The Coca-Cola Company along with our bottlingpartner, Coca-Cola Hellenic, will invest inRussia more than USD3.0 billion in fiveyears from 2012 to 2016.” George David, chairman of Coca-ColaHellenic Bottling Company, added that theinvestment programme would enhancewealth creation and prosperity in the Rostovregion. “We are fully committed to andbelieve strongly in the potential of Russia,and that of the region,” he said. The opening of the new plant was also Muhtar Kent is keen to continue investment in Russiacommemorated by the launch of the limited catalyst of the economic growth of the Worldwide, The Coca-Cola Companyedition Coca-Cola can bearing the Sochi Russian South. Coca-Cola shares two major and its bottling partners are investing near-2014 logo. ideals of the Sochi 2014 Organising ly USD30 billion over the next five years to Dmitry Chernyshenko, chief executive of Committee: innovation and sustainability. support anticipated growth across its sys-the Sochi 2014 Organising Committee, The plant is equipped with the most tem. Investments range from new manufac-said: “The launch of the new Coca-Cola advanced technologies, and I believe that in turing facilities and distribution systems toplant demonstrates the fact that the 2014 we are going to be thirsty but only for new marketing investments in emergingOlympic Games in Sochi have become a Olympic victory.” economies.UK grocer Sainsbury’s battles tough consumer environmentBY ALEX MASTERS King said the re-launch of its ‘by quality own label ranges and commitment to Sainsbury’s’ range (which claims to offer the delivering value.NEW stores and promotions have helped same or better quality as the branded equiva- A recent report from Kantar WorldpanelSainsbury’s battle the tough consumer en- lent at prices typically at least 20% lower) is suggests the UK grocery market has becomevironment to deliver a solid set of first-half “well under way”, with over 3 000 new or particularly challenging for the UK’s ‘Bigresults. improved lines already in store. Product Four’ (Tesco, Asda, Sainsbury’s and The supermarket chain, one of the UK’s innovations, including its Mexican ready Morrisons) which, unlike the discount and‘Big Four’ grocers, saw total sales (excluding meal range, have also proved “extremely premium niche players, have to appeal to afuel) rise 4.3% in the first half, with a 4.4% popular”. broad range of consumers (FOODNEWS,rise in the second quarter. As fuel prices continue to impact custom- 26 August, 2011). Chief executive, Justin King, described the ers’ disposable income and put pressure on Only Morrisons managed to add sharelatest results as “a good sales performance in household budgets, Sainsbury’s continues to for the 12 weeks ending 7 August, 2011,a tough consumer environment”, which was focus on strong promotions and competitive with year-on-year growth of 4.6% – slightlyboosted by strong growth from both its pre- pricing on branded goods to drive growth. ahead of the market.mium ‘Taste the Difference’ and economy The report also suggested that premium‘basics’ ranges. Confident own-label products are growing in popular- The group’s convenience business contin- While he expects the market environment to ity, compared with their budget counter-ues to grow at 20% (it opened its 400th con- remain “very competitive for the foreseeable parts: private label goods witnessed 8%venience store, at Wolverhampton) with like- future” King is confident in the company’s growth in premium, compared with a morefor-like growth ahead of supermarkets, the ability to grow, “by doing a great job for our muted 2% for budget versions, during thecompany said. customers” through its combination of high 12-week period.4 October 7 2011 © Informa UK Ltd 2011
  5. 5. INDUSTRY FOODS CANNED NEWS CANNED FOODSNZ canners’ ‘dumping’ claims News in Briefprompt government enquiry More mango exports THE UAE was the top importer of Pakistani mangoes, taking around 20 000 tonnes dur-BY EMMA SLAWINSKI business. The initial ministry of Economic ing July-April 2010/11, according to a Development report into the matter said: Pakistani government official quoted by theNEW ZEALAND canned foods manufac- “Heinz Wattie’s stated that the imported price country’s News International paper. Salesturer, Heinz Wattie’s, has alleged that pre- of preserved tomatoes from Italy has to the UAE earned PKR487 million (USD5.5served tomatoes from overseas are being decreased significantly in 2011 and competi- million), a rise of one-third from the samedumped on the local market, prompting a tors have passed these savings on to consum- period last year. The UK was in second posi-government investigation. ers, which has meant that Heinz Wattie’s tion, importing over 12 000 tonnes of man- The Sunday Star Times reported that Heinz forecast increase in sales did not eventuate.” goes, worth PKR419 million, and up fromWattie’s evidence that New Zealand industry Following the initial report, a formal inves- 8 000 tonnes worth PKR273 million. Theprices are being cut by foreign tomatoes, is tigation began on 19 September and a final Saudi Arabian market, however, fell to aboutbeing treated as credible by the Ministry of determination is due by 8 April next year. 7 000 tonnes of mangoes, compared withEconomic Development. However, emergency anti-dumping mea- some 12 000 tonnes in the same 10 months Imports from Italy rose sharply in the year sures could be introduced, at the earliest of the 2009/10 fiscal year. Other marketsto April, to 10 687 tonnes from 8 739 tonnes, from mid-November, to prevent damage to include Germany, Canada, Belgium, Bahrain,though there was no corresponding increase the local industry. Denmark, Malaysia, Maldives, Thein demand, the paper reported. Heinz Wattie’s Increased Italian imports have also taken Netherlands, Norway, Oman, Qatar,alleges that Italian producers have the capac- market share from two other suppliers, Singapore, Sweden, Switzerland and, for theity to supply New Zealand importers at short Turkey and Australia. Australian tomatoes first time, the US (FOODNEWS 11notice. were also found to be imported at prices “sig- March). The company, which markets several nificantly undercutting” Heinz Wattie’s, buttomato products as using ‘New Zealand- the ministry determined this was not on a Asahai deal confirmedGrown Tomatoes’, has reportedly said the scale that would damage the company’s JAPANESE beer and soft drinks major, Asahialleged dumping has had a big effect on its business. Group Holdings, confirmed this week that it is to acquire the Independent Liquor Group as it looks overseas to drive growth. The deal,Suntory considers Russian expansion which includes Independent Liquor in New Zealand and Independent Distillers inBY EUGENE VOROTNIKOV it is easy to calculate that the Russian market Australia, is valued at NZD1.534 billion still remains untapped for the Japanese (USD1.17 billion). Independent Liquor is NewJAPANESE alcohol producer, Suntory company. Zealand’s leading ready-to-drink cocktailHoldings Ltd, is considering major expan- Most Russian analysts believe that expan- maker and is number three in Australia. Itsion in the Russian alcohol market by the sion in the Russian market could be a logical also brews and distributes the Carlsberg,end of the current year through the possi- step for Suntory Holdings. The company has Tuborg and Kingfisher beer brands. Someble purchase of some local distilleries and not yet realised its enormous potential in the 90% of the company’s sales are from Newopening an office in Moscow. country, partly due to being forced to change Zealand and Australia, but it is looking to Russian analysts believe that such plans its distribution partners several times. expand into the US and China.could have been prompted by the recent Potential Russian alcohol producers thatproblems linked with Suntory’s exclusive could be the subject of Suntory’s takeover Esselunga head to step downdistributor in Russia, Veld-21, which failed to were not disclosed but there is speculation BERNARDO Caprotti, the founder and chair-renew the license for sales of alcohol in the from market sources that it could be a com- man of Italian grocery chain, Esselunga, hascountry. pany with a wide sales network. said he plans to step down from his post. In According to Russian RBC Daily business Such expansion would mark part of a surprise announcement, Caprotti said thepaper, despite the ever-growing consumption Suntory’s wider global acquisition strategy. move will help the private chain “have aof whiskey in Russia, sales of Japanese whis- So far, Suntory already owns Scottish proper management”, according to localkey remain low, not exceeding 4 000 decali- Morrison Bowmore Distillers, and has a 20% press reports. Caprotti said that he will retaintres, which account for 0.25% of total whis- stake in Macallan brand. The group also “an operating role” in human resources atkey imports to Russia in 2010. operates the French cognac house, Louis Esselunga, and will retain his board seat. He Given that total global sales of the Suntory Royer, several chateaux in Bordeaux and added that the company will refurbish itsKakubin brand reached 2.51 million in 2010, Austrian liquor producer, Mozart. outlets, but stressed that he has no plans to list the chain on the stock markets. EsselungaMusgrave gets green light for Superquinn has a market share of around 10%, and its 143 outlets generated sales of EUR6.0 billionMUSGRAVE, the Irish food retailer, has research, a formal request for information (USD8.0 billion) last year.been given the go-ahead to acquire Super- from the parties, ongoing contact, obtain-quinn for EUR250 million (USD330 mil- ing the views of suppliers and competitors Heavy floods in Thailandlion). and on-site investigations, the Competition HEAVY floods have struck the north of “Following an intensive investigation the Authority takes the view that the transac- Thailand in the last few days, damaging rice,Competition Authority believes the deal tion will not result in the problems sweet corn and some pineapple crops (thewill not substantially lessen competition in identified.” bulk of Thailand’s pineapple is further south). Back in July, Musgrave, which already The damage has been described tomarkets for goods or services in the State,” FOODNEWS as very serious, though the fullit said. controls Centra, Super Valu and other impact will not be assessed for several days The watchdog added: “Based on a thor- supermarket operations in Ireland, agreed yet.ough investigation, which included to buy Superquinn from receivers KPMG.© Informa UK Ltd 2011 October 7 2011 5
  6. 6. Advertise in 100 Why FOODNEWS? ✓ 100% paid-for-readerships – an attentive and responsive audience ✓ Senior-level subscribers – the power to buy from youFOODNEWS 100 will provide a comprehensive review ✓ Dedicated to the foodof the most significant factors affecting the food and processing industry – for relevantdrinks industry in 2011 and predicts what will be the targeted campaignsmajor talking points in the year ahead. ✓ Over 25 years as the industryContaining editorial contributions from leading market leader – alignment with afigures, analysis from FOODNEWS’ own team of reporters valued brandand drawing on our extensive data and information ✓ Print and online – the flexibility toservice, FOODNEWS 100 is the essential guide to the meet your needscondition of the global food and drinks sector.In depth analysis of the biggest companies operating Contactin this field across the globe will be supplemented with Sunny Patelinformed opinions and forecasts on specific category Global Advertising Managersections including fruit juices, canned foods, tomato +44 207 017 4153products, soft drinks and dried fruit and nuts.
  7. 7. INDUSTRY NEWS CANNED FOODSSerbia set for bumper autumn News in Brieffruit production this year Pirated lollipops BRAZILIAN lollipop and candy exporters are facing an unexpected challenge fromBY VLADIMIR PEKIC from 2010. There are 4.25 million fruit- pirated versions of their own products that bearing pear trees in the country and average originate from India and China.SERBIA is looking forward to a bumper yields amount to 13.5 kg per tree. Southern “Counterfeiters are extremely flexible. Theyproduction of late fruits this year, accord- Serbia is expected to contribute 38 325 produce a version of our product, in specificing to the latest information released in tonnes, while producers in northern Serbia volumes and with details that meet theBelgrade. are expected to collect 19 281 tonnes. needs of their clients,” said Carlos Barion, Apple producers in Serbia are expected to Plum producers, meanwhile, are expected president of Dori, the largest domestic pro-harvest 271 570 tonnes of apples this year, up to harvest 638 768 tonnes this year, or 49.6% ducer of candy and chewing gum. Dori’sby 13.2% from last year. Fruit will be har- more than in 2010. Average yields will Facepop lollipop product was copied for thevested from 15.78 million fruit-bearing trees amount to 15.6 kg per tree, while the number African market by a rival manufacturerwith an average yield of 17.2 kg per tree, of yielding trees is estimated at 40.82 million. from India. “Congo accounted for 10% ofannounced the Statistical Office of Serbia on The bulk of the crop will be collected in our sales in Africa, today it is less than 5%,”27 September. southern Serbia, which is expected to pro- said Barion. The Brazilian Association of The new report reveals that apple produc- duce 548 209 tonnes. Cocoa, Chocolate, Peanut, Candy andtion is split roughly equally between north- Finally, Serbia’s walnut production is also By-product Industries (ABICAB) is nowern Serbia (139 582 tonnes) and southern expected to go up by 20.5% this year com- reviewing measures that would help reduceSerbia (131 988 tonnes). pared with 2010 and this year’s harvest will pirating of its leading brands. Average yields per tree, nevertheless, are amount to 25 816 tonnes. Average produc-noticeably higher in the northern part where tion per tree is expected to reach 15.3 kg, Edeka plans expansionthey are expected to reach 20.2 kg, while while the total number of yielding walnut GERMAN retail chain, Edeka, has unveiledaverage yields in southern Serbia will amount trees in Serbia amounts to 1.69 million. Most plans to spend EUR1.0 billion on expansionto 14.8 kg. of Serbia’s walnut production occurs in next year. The investment will enable it to Serbia’s pear production this year is southern Serbia where farmers are expected open 200 supermarkets and convenienceexpected to reach 57 606 tonnes, up by 21.3% to collect 17 345 tonnes. stores. The company is currently trialling new stores in Hamburg for the move, which is expected to create around 10 000 part-Cristal deal creates major new force in France and full-time jobs, according to FreshFRENCH sugar co-operative, Cristal Un- Plaza, citing local press reports. Edeka’sion, has agreed to take control of domestic chief executive, Markus Mosa, was quotedrival, Groupe Vermandoise, in a deal that as saying that while the group’s “full-rangewould create the number two sugar group supermarket” model still has considerablein France after Tereos. potential, some stores will be shut down as Alex Masters writes: The valuation of the they are either too small or, which is nearly EUR1.0 billion (USD1.3billion), represents the cost of eventually buy- Strong Q2 for Japan’s Aeoning the whole of Vermandoise and its subsid- JAPAN’S second-biggest retailer, Aeon Co,iary Societe Sucriere de Pithiviers Le Viel which has a market capitalisation of EUR262 has raised its full-year outlook on the back(SSPLV) , Reuters quoted Alain Commissaire, million. of a solid set of quarterly results. For itschief executive of Cristal Union, as saying at The deal is fully funded by Credit Agricole June-August quarter, robust sales of fooda recent conference. Nord Est and Credit Agricole Corporate and and household staples helped lift profits by Cristal’s offer would build a group with Investment Bank, the two companies said in nearly a fifth. The retailer now forecastspro-forma sales of close to EUR1.2 billion a joint statement. operating profit to be as much as USD2.7and annual sugar production of around 1.45 Known for its Daddy and Erstein brands, billion for its year to February 2012, whichmillion tonnes, and which would rank as Cristal Union groups 5 350 farmers account- would beat market expectations. Aeon,Europe’s fifth-biggest sugar group. ing for more than 21% of the national sugar Japan’s second-biggest after Seven & I The exclusive deal covers a 51% stake quota. The deal is not expected to result in Holdings, also unveiled plans to spendowned by the Delloye family in Vermandoise, job cuts or plant closures, the statement said. USD585 million to buy domestic supermar- ket chains Marunaka and Sanyo MarunakaPotato consumption goes back to its roots to expand its presence in central Japan, Reuters reported.BY AMY BOOTH lem, Umhau said. There are virtually no markets for these. Following persistent rain Weather worriesTHE Germans are buying more potatoes this summer, clearing is still not finished. CALIFORNIAN almond and raisin grapeagain. After a several-year low in quan- Moreover, the prices are disappointing for growers are wary of possible heavy raintities eaten, German consumers bought the growers. Costs soared, particularly due to storms that could affect their crops. Manyaround 63kg of potatoes per head in 2010, the watering which was necessary this spring. of the nuts are still under trees waiting toup from 60kg in 2009, according to Mar- On the other hand, the situation is quite be picked up, while raisin grapes are stilltin Umhau, chairman of the Potato Panel different for consumers in Germany. Potatoes laid out on trays. The cool spring has meantwithin the German Farmers’ Association are of a very high quality and quantity. “The the crops were delayed by a week or two(DBV). purchase of potatoes is barely noticed in a this year, with some growers unable to get The quantities harvested in Germany so household’s budget, and they also provide a raisins drying before the crop insurancefar promise very high quality, although the healthy, tasty and nutritious food,” Umhau deadline in late September.high rate of oversized produce poses a prob- summarised.© Informa UK Ltd 2011 October 7 2011 7
  8. 8. FRUIT JUICECANNED FOODS News in Brief continued from page 9 and is now in 20 countries across four con- Developed markets are the bedrock of the industry, so this is of concern. But in 2020, tinents” and will go into other markets. It is based on economic projections, the indus- Citrus greening prevention also Coke’s first billion dollar brand to try will have a billion new consumers in RESEARCHERS, citrus producers and gov- come from an emerging market. developed markets. ernment institutions in Brazil’s Bahia state, Del Valle is a case study of success by “As people have more income and move the second largest orange producer after acquisition. The brand was bought in 2007, into that middle class bracket, two things São Paulo state, are strengthening their when it was operating in three countries in happen,” added McLaughlin. “The con- partnership in order to prevent the spread Latin America with annual sales of less sumption of juice increases and, which is of Huanglongbing (HLB), or citrus greening than USD500 million. It was described by bad for the industry, the consumption of disease, from the affected regions in Brazil. McLaughlin as “the vehicle to transform fresh fruit increases dramatically.” (The HLB is already present in São Paulo, the our Latin American juice” and is now pres- effect of that has been most clearly seen in Triângulo Mineiro region in Minas Gerais ent in 14 countries in Latin America with China recently). state and northern Paraná state. “The cit- sales of over USD1.0 billion. “Another challenge that we have to be rus production sector in Bahia is a priority And for the super-premium end, Coke aware of is the obesity concern. Juice used of the [state] government,” said Eduardo has invested in Innocent, the UK smoothie to be considered healthy but is now under Salles, Bahia’s state agriculture secretary. manufacturer, seen as “a great brand and a challenge. We must consider how we mar- Citrus producers in Bahia last year har- great future platform for growth”. ket the benefits of juice as part of a well- vested 987 813 tonnes of oranges and this Challenges still remain. “Take these balanced diet. year’s production is expected to reach 1.02 together and we have a very different set of “There are no local challenges any more. million tonnes. HLB has still not been challenges that are unique in the history of Anything that happens on a local level, detected in Bahia, or in Brazil’s northeast, the industry,” said McLaughlin. One is immediately becomes through social media north and central-west regions. related to the disease issue. “Any residue of a global issue. It is our responsibility to lead agricultural chemicals is unacceptable. We on these issues as an industry.” Cheaper Thai PJC supplies must be prepared to work with govern- He concluded: “I cannot over-emphasise THAI pineapple juice concentrate prices ments otherwise we will have regulation the role the industry has to take in safe- are continuing to fall slowly, according to a imposed on the industry.” guarding its future. I want to be very clear source at this week’s World Juice 2011 In the short term, particularly in western that we have a positive view of the future of conference. The latest prices are in the markets, Coke is seeing a slight slowdown. the industry.” region of around USD1 850 per tonne cfr Europe. It is thought that these prices will steal business from Costa Rica, even though Major Portuguese juice manufacturer signs Thailand’s Cayenne variety of pineapple is not as highly prized as Costa Rica’s MD2. long-term contract with local fruit producers The chief worry for processors (and, down BY VLADIMIR PEKIC ensures the company will have a stable supply of the fruit in the upcoming decade. The total the line, customers) is that new legislation PORTUGUESE beverages company, contracted area amounts to 135 hectares, in Thailand has mandated a steep increase Sumol+Compal, has signed a deal with a including 75ha of new orchards planted in in the minimum wage which will impact on group of national fruit producers for the 2011 and 60ha that will be planted in 2012. processors’ costs. supply of 40 000 tonnes of peaches over Sumol+Compal, which controls four plants the next 10 years. The announcement was in Almeirim, Pombal, Gouveia and Vila Flor, Functional juice drinks made during an official visit to the com- reported sales of EUR160.2 million TALKINGRAIN of Seattle, the US, has just pany’s production plant in Almeirim by the (USD215.6 million) in the first half of 2011, introduced Sparkling ICE functional fruit country’s agriculture minister, Assunção down by 2.2% from the same period last year. juices in six natural flavours. These are a Cristas, on 19 September. The disappointing performance was primar- blend of spring water, natural fruit juices “Contracts signed with national agricul- ily due to a 4.6% drop in domestic sales, that and six vitamins and antioxidants with a tural producers demonstrate the commit- were worth EUR118.1 million in the first half claimed zero calorie count. Sweetened with ment of Sumol+Compal to the fruit produc- of last year. Splenda, they are ideal for diabetics. They tion sector and they are part of a broader In international markets, however, are also kosher and free of carbohydrates, strategy to increase exports of fruit juices Sumol+Compal’s growth continues unabat- sodium and caffeine. Flavours are black incorporating Portuguese fruit,” said Duarte ed. The company again reported double-digit raspberry, kiwi/strawberry, lemon/lime, Pinto, chief executive of the company. growth in foreign sales, ending the first half orange/mango, pink grapefruit and pome- The new contracts will meet half of of 2011 with exports worth EUR34.6 million, granate/berry. Sumol+Compal’s demand for peaches, which up by 19.8% from the same period last year. Norwegian juice shortage Bulk aseptic juice tanks to be launched in 2012 NORWAY is suffering from a shortage of A NEW method of transporting juice by sea will be introduced next year, according to fruit to make apple juice, according to local information supplied to FOODNEWS at this week’s World Juice 2011 conference. Neil Murray writes: Tank Management SA of Norway is introducing a new range of media. While sales of other juices, nectars 24 000-litre aseptic tank containers for carrying juice. There will also be a 25 000-litre and lemonades fell by over 5% in 2010, version for short sea (as opposed to deep sea) freight. sales of apple juice rose by more than a The steel tanks are claimed to be the first such units on the market and will incorpo- quarter. Heavy rain and a lack of pesticides rate temperature control and real time monitoring, over the internet, of all vital func- has led to a shortage of apples for the tions such as temperature and the various parts of the refrigeration and storage system country’s processors (who mainly make (glycol and nitrogen levels, for example) as well as track-and-trace capability. NFC juice). Norwegian consumers demand The units will not be sold, but will be operated as an integrated service by Tank Management. They are claimed to be much cheaper than conventional steel drums, and particularly high acid juice, and this sort of (given the need to clean and dispose of drums properly) also more environmentally fruit has been especially scarce. friendly.8 October 7 2011 © Informa UK Ltd 2011
  9. 9. FRUIT JUICESigns cranberry juice marketbeginning to wake up at lastBY NEIL MURRAY is produced as a by-product of SDC manu- facturing anyway. Fruit inventories in theTHERE are signs that the cranberry juice US are still very high, though, and nobodymarket, for so long in the doldrums, is is expecting a sudden surge in the price ofstarting to move, but any price rises are 50 brix cranberry concentrate.likely to be small and may not even exceed Blueberry concentrate prices remainthe rate of inflation. firm, due to the very strong demand for Ocean Spray’s opening prices for its next fresh fruit, and FOODNEWS has heard ofjuice auction (relatively small amounts of prices quoted at USD15.00-16.00/gallonjuice are traded at these, but they provide c&f.the only real indicator as to how prices are On the other hand, FOODNEWS hasmoving) are quoted at USD17.85 per gallon noted that the price of white grape juice hasfor November delivery, USD18.56/gallon surged recently. Demand was already quitefor February 2012 delivery and USD20.52/ strong, due to the high cost of AJC, but ingallon for August 2012 delivery. Europe in the last month or so it has moved Offers still seem to be around USD20.00/ up perhaps 20 euro cents to EUR1.38 pergallon, although one FOODNEWS contact kilo, ex-works, and there are worries that itsaid that he had recently fielded an offer of may rise to as high as EUR1.50/kg.USD25.00/gallon, which he regarded as Spanish product was much more keenlymuch too expensive. priced, but this has also risen because Italy, It appears that the massive demand still faced with a shortage of grape juice for itsevident for sweetened dried cranberries own wine industry, and also for balsamic(SDCs) is putting very slight pressure on vinegar manufacture, has been buying a lotthe fruit available for juicing, though juice of Spanish juice.Juice bar chain plans expansion into IndiaBOOST Juice, the Australian juice bar sell its drinks for around AUD3.00 each. Thechain, plans to open 100 stores across India target is to open five outlets in 2012. However,between now and 2017. its Chinese operation is proving problematic. The business has signed an AUD1.60 mil- According to Australian media reports, Boostlion (USD1.58 million) franchise agreement sells its juices through small kiosks for on-with a married couple of Indian entrepre- the-go consumption and Chinese consumersneurs. The first stores will be established in apparently prefer a fast-food restaurant ambi-Delhi, and then it is hoped the chain will ance, where they can sit down.expand into other cities and the provinces. US private equity firm Riverside this year Boost, which set up in the UK a few years took a 70% stake in Boost last year with theago (FOODNEWS 20 April 2007) and also intention of expanding Boost’s overseashas outlets in China and South Africa, will operations. ProfessionalUS consumers launch lawsuit against Naked Juice Fruit Concentrate ProducerBY NEIL MURRAY Naked Juice bills its juices as “100% Clear Apple/Pear Juice Concentrate juice”, “all natural”, and “non-GMO”. Cloudy Apple Juice ConcentrateNAKED Juice, the US fruit juice company, The plaintiffs contend that Naked Juice’s Apple/Pear/Peach Pureeis under fire from a federal class action claims that it uses no GMO ingredients are Apple/Pear Aromalawsuit. untrue, because the drinks contain soy and The plaintiffs allege that Naked Juice “almost all soy products are now geneticallyintentionally uses misleading language to modified”.give consumers “the false impression that It adds that 11 synthetically derived sub-the beverages’ vitamin content is due to the stances – including niacinamide, d-alphanutritious fruits and juices, rather than the tocopherol acetate, cyanocobalamin, and Yantai North Andre Juice Co., Ltd. Add: No. 889 Xincheng St,Muping Yantai,China 264100added synthetic compounds such as calci- pyridoxine hydrochloride - are contained T e l : 86-535-4230228 4762998um pantothenate (synthetically produced in Naked Juice drinks which it says Fa x : 86-535-3396029from formaldehyde)” and “Fibersol-2 (a belies the label’s claims that the beverages E-mail : business@northandre.comproprietary synthetic digestion-resistant contain only the “freshest, purest stuff in Web: produced by Archer Daniels Midland the world”.and developed by a Japanese chemical com- The plaintiffs are asking for compensa-pany), fructooligosaccharides (a synthetic tory and punitive damages as well as anfiber and sweetener) and inulin (an artifi- injunction against Naked Juice stating thatcial and invisible fiber added to foods to its products are 100% juice, are all natural[...] increase fiber content without the typi- and that they contain no genetically modi-cal fiber mouth-feel)”. fied organisms.© Informa UK Ltd 2011 October 7 2011 9
  10. 10. FRUIT JUICECANNED FOODSCANNED FOODSColdstore investments in Polandmay strengthen farmers’ handBY NEIL MURRAY round the back’, and so I did,” one contact works, and is expected to hit EUR1.50/kg told FOODNEWS. “He showed me this huge soon. However, these prices are for promptIT IS possible that developments in Po- coldstore and he said: ‘Thank you. you built delivery: full-year contracted prices are fiveland’s storage infrastructure will lead to a that. EU money!’ A lot of farmers have been to 10 cents higher per kg. This would putrise in the price of AJC in the country. Al- investing, with EU subsidies.” Polish AJC at USD2 000/tonne, whereasready, this season, AJC prices are increasing It is hard to determine exactly how exten- Chinese AJC is as cheap as USD1 800/tonnefast and seem likely to keep rising at least sive this investment programme is. Poland fob from desperate sellers. Turkish low aciduntil the end of the year. receives EUR250 per head in European (1-2%) AJC is presently around EUR1.35/kg A few years ago, heavy investment was Social Funding (ESF) support, according to cfr, so similar to Polish prices. However,made in Poland’s cold storage industry, and the official EU website: five times more than Chinese product is subject to freight and dutythe fruit industry was particularly targeted. Denmark. Various trade association and and Europe still has the upper hand when itEU funds were allocated to this programme: other sources have confirmed to comes to price. FOODNEWS sources suggestFOODNEWS’ information is that the EU FOODNEWS that Poland has vastly that they could work with these higherpaid as much as three-quarters of the cost of improved and increased its storage infra- European prices, albeit with difficulty.some stores. There was an extensive pro- structure in recent years, but are unable to Meanwhile, the situation in China isgramme of building new chill stores for fruit place any kind of figure on it. It has been almost impossible to and these are now in place. suggested, though, that Polish farmers may FOODNEWS has heard that processors have The result is that farmers are now able to put 1.5 million tonnes of fruit from this year’s ceased manufacturing AJC and are onlystore more fruit for longer, in good condi- harvest into store. This would have a marked starting up sporadically when they receivetion, and this is likely to result in exactly the effect on raw material for juice processors. enough fruit for it to be worthwhile runningsame scenario as has been played out in The Polish fruit price opened around the plants. It is being suggested that ChinaChina in the last few years. Farmers have the PLN0.55 (EUR0.11/USD0.15), fell to around has basically written off the European mar-option to sell to processors or the fresh mar- PLN0.30, and has since strengthened to ket, acknowledging that it is unable to com-ket and can play one market off against the around PLN0.55, which is equivalent to pete this year, although there will certainlyother. USD170 per tonne. One source put the fruit be some product imported. On the other Poland has always stored its apples, of price higher, at PLN0.57/kg (USD175/tonne). hand, contacts agree that Chile will againcourse, but it seems that the recent invest- By way of comparison, Chinese fruit prices enjoy a successful season in Europe. Chileanment programme really is going to make a are presently put at USD200-220/tonne. producers are now looking at Europe as afundamental change to the way the country’s Polish AJC (up to 3% acid) is now priced at permanent market, it seems, while Europeanapple market operates. EUR1.35 per kg ex-works: a rise of at least buyers have been impressed by Chilean “When I was last in Poland, I was visiting five cents in the last couple of weeks. Higher product, its pricing and the reliability of thean apple farm, and the farmer said: ‘Come acid (4%) product is at least EUR1.4/kg ex- suppliers.Turkey’s MEyEd calls for support for World Fruit Juice day planAN AMBITIOUS plan to highlight the ben- between categories. It would also serve to tion and the awareness of consumers,” sheefits of fruit juice, and to increase its long- eradicate some of the prejudices and precon- emphasised. “It is a cross-national source ofterm consumption, has been presented to ceptions that surround fruit juices. information for people from all over thean international audience at the FOOD- World Fruit Juice Day would require par- world. It is a platform, where all the nationalNEWS World Juice 2011 conference in Ma- ticipants to enlist the support of governmen- juice industries act together and combinedrid. tal bodies and to convince opinion leaders. their power for their shared commitment.” Neil Murray writes: Ebru Akdag, secretary- It is anticipated that it could be incorporated So far, the idea has received support fromgeneral of MEyED, the Turkish Fruit Juice under the ‘Five a Day’ campaign, as an inter- the Australian Fruit Juice AssociationAssociation, unveiled her plans for World national communication platform. Akdag (AFJA), the New Zealand Juice and BeverageFruit Juice Day, to be held next year. emphasised that each participating country’s Association (NZJBA), the Russian Union of “Despite the growth in the market, con- PR activities would be improved as it learned Juice Producers (RSPS), the French associa-sumers are not fully aware of the health ben- from the experiences of others. tion (UNIJUS), Agrumigel in Italy, theefits of juices,” Akdag told conference dele- Akdag told delegates that communication Arabian Soft Drinks Association (ABA), thegates. “Consumption per capita is still below channels would include the web pages and US Juice Products Association (JPA), thethe levels that it deserves. Consumers do not publications of international and national Polish Juice Association (KUPS), the Chinapay attention to the labelling and cannot dif- unions, such as the IFU, AIJN, SGF, and Chamber of Juice (CFNA) and the SGF test-ferentiate between categories. Companies’ national trade associations as well as the web ing and quality control organisation.public relations activities focus on brand pages of publications of industrial partners A question about cost raised bybuilding. There is a perception that juice is (such as FOODNEWS, which would be glad FOODNEWS brought the news that a trialhealthy, but it is ‘boring’. A global coordinated to participate), media and social media such Juice Day in Turkey had cost EUR75 000industry action is needed to increase as Facebook, and school programmes with (approx. USD100 000) at that sort of level,demand.” health ministries in participating countries. the initiative seems more than feasible. The aims of the initiative include the cre- MEyED has come up with a logo for the “We have a shared corporate socialation of a daily habit of juice consumption initiative. responsibility to raise awareness about theand the raising of consumer awareness of the “World Fruit Juice Day is an international importance of drinking juice,” concludedhealth benefits of juices and the differences initiative aiming to increase the consump- Akdag.10 October 7 2011 © Informa UK Ltd 2011
  11. 11. NEW Now includes tables fromFOODNEWS 100 and Juice Data supplementsThe Foodnews data libraryincludes 1,200 data files,dating back two years, forevery product sector covered Foodnews data libraryby Foodnews including:✔ Beers & soft drinks now available online✔ Business intelligence✔ Canned foods Foodnews has placed its data bank online,✔ Chocolate & confectionery FREE to all subscribers✔ Dairy✔ Dried fruit Visit✔ Fresh produce✔ Frozen to start downloading your data files now✔ Herbs & spices✔ Juice✔ Nuts✔ Seafood✔ Tomatoes✔ Wines & spirits
  12. 12. FRESH PRODUCELarge harvest and smaller fruitsmay aid US pear exports this yearBY EMMA SLAWINSKI (October-July), to 113.7 million lbs, shatter- “The large pear crop to lower ing the previous record for marketing yearUS FRESH pears saw huge growth in ex- exports, again owing to the favourableports in the first month of the marketing early-season prices to growers, exchange rate, but also to a smaller crop fromseason, as 11.48 million lbs were shipped at USD0.26 per lb, down from leading exporter, July, compared with 8.68 million lbs the July 2010 average price of Issues on the supply side hampered USlast year (+32%), the USDA’s Economic Re- USD0.30/lb for fresh pears.” fresh grape exports in the 2011/12 season,search Service (ERS) reported. and for the season to date (May-July) these Nearly 70% of export volume during the were down 21% from the same period inmonth went to Mexico, where US exports seasonal increases in both pear and apple 2010/11, to 48.11 million lbs. Harvest delays,had been hampered by a 20% tariff imposed supplies were likely to put downward pres- lower production and higher prices wereas a result of a cross-border trucking dispute sure on prices. cited as contributing factors. In value terms,between the two countries (FOODNEWS 19 If exports continue to absorb one third of exports to July grew 4%, but remain belowAugust 2010). The ERS report noted that the fresh domestic production, the average share the 10-year average.recent agreement to phase out the tariff rate in the past decade, exports in 2011/12 could Fresh strawberry exports were down 2% inmay lead to “positive export growth” for US see a 3% lift, ERS said. the first seven months of the marketing year,pears to Mexico. The weakness of the US dollar through which begins in January, at 118.56 million “Other factors that may help the industry most of the year has aided US exports of sev- lbs, while high prices in recent months boost-achieve increased exports this season include eral other fruits. Shipments of fresh oranges ed overall export value, up 6% year-on-year.a bigger domestic crop and smaller sized moved up 13% to 1.6 billion lbs for the sea-fruit, which is favoured in several export son-to-date (November – July), and havemarkets,” the agency said. Conversely, demand for US fresh pears in achieved a marketing year record, even with three months remaining in the season. Brazil forced toEurope could be reduced due to increasedproduction in the region. “While shipments to leading market Canada were reported down 5% compared to import more apples According to data from GTIS, imports of last year, exports to number two market – BY JENNIFER WILLIS-JONESUS pears to the EU27 totalled 882 tonnes South Korea – have increased 21%, more(1.81 million lbs) in January-July, down 40% than compensating for decreased shipments BRAZILIAN apple imports have risenon 2010’s intake of 1 471 tonnes. to Canada,” the report noted. sharply, prompted by a strong real and a The report also noted that the large pear “Shipments also increased substantially to poor quality national harvest followingcrop, forecast at 1.78 billion lbs by the most other top-10 markets, particularly to hailstorms, the Office for Foreign TradeNational Agricultural Statistics Service China, Malaysia, Australia and India. Larger (Secex) has said. In the period running(NASS), up 9% on last year, led to lower ear- US production in 2010/11 and smaller ship- January-August this year, Brazilian off-ly-season prices to growers, at USD0.26 per ments from top exporters South Africa and take of fruits grew 47.7%, reaching 50 800lb, down from the July 2010 average price of Egypt has also contributed to larger US tonnes.USD0.30/lb for fresh pears. August prices export volumes this marketing year,” it added. According to the president of the Brazilianstrengthened again, reportedly due to tight Fresh tangerines/mandarins saw a jump of Apple Producers Association (ABPM), Pierrefresh apple supplies, but as the harvest peaked nearly 50% in exports for the season so far Pérès, Argentina is the largest supplier of the fruit to Brazil. Indeed, Secex data show that Argentina exported close to 40 100 tonnes ofSmaller Spanish lemon crop for 2011/12 fruit to Brazil in the last eight months, cor- responding to 79% of the total import figure SPANISH LEMON PRODUCTION for the period. A survey by IBGE showed Brazilian per D DATA 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12* CLICK TO DOWNLOA 1105234 1090000 552192 945527 682498 930512 870000 capita apple consumption to be 1.68kg per SOURCE: Alimpo *Initial Ailimpo estimate person per year in 2002, but by 2008 this had risen to 2.15kg, an increase of 28% in sixBY JENNIFER WILLIS-JONES good peel, high juice content and fruit of a years. The company believes consumption good size. will rise further in 2011, putting more pres-AILIMPO, the Spanish citrus association, The lemon market is expected to be highly sure on supply.has estimated lemon production in the competitive in 2011/12, with Turkey proving Pérès explained that the Argentine applescountry to reach 870 000 tonnes in 2011/12, stiff competition for Spain. Good supply and arrive with a final price of BRL45 per box ina fall of 6.4% compared with the previous the country’s low production costs permit Brazil, while national fruit is closer to BRL36.campaign. Production will be “normal” in Turkey to lower their prices considerably to What really threatens the national market, hevolume and of “excellent” quality. sell to Eastern European markets, in addi- added, is the arrival of inferior quality fruit This year’s campaign will officially begin tion to important government subsidies to which is sold in the region of October, with larger and more important exporters (USD125 per tonne equivalent to It is thought imports increased signifi-volumes later on in the year. Favourable EUR0.09 per kilo). cantly this year as a result of hailstorm dam-weather conditions, thorough fungus treat- Spain, meanwhile, sells most of its lemons age to fruit and a strong real which favouredments and irrigated fields have led to superb to western Europe where the economic crisis imports. Brazilian fruit exports to the EU,quality fruit, the association explains, with a has hit hard, pushing prices down. meanwhile, suffered.12 October 7 2011 © Informa UK Ltd 2011
  13. 13. CANNED FOODSChilean peach output aided byfavourable winter conditionsBY AMY BOOTH CHILEAN CANNED PEACH PRICES 2002-2011 (USD/CLP)ALTHOUGH it is still early for an accurateprediction, Chilean canned peach produc-tion for 2011 is forecast to be similar to lastyear’s output, as the weather has been fa-vourable this winter. In 2011, canned pro- A DATduction was larger than both the previousyear and previous estimates. D LOA An estimated 10 500 hectares of peaches OWNfor canning are planted in Chile, according TO Dto the latest Chilean agricultire ministrystatistics, reported the USDA. There are an K CLICestimated 1 697 producers of peaches forcanning and four processors. The mostpopular varieties, accounting for 75% of thetotal planted area, are Pomona, Andros,Fortuna and Phillip’s Cling. Prices offeredto farmers for peaches for canning werealmost as high as in 2007 in US dollar termsdue to the revaluation of the peso against canned peaches together with strong export large stocks may reflect poor sales and man-the dollar during the last few years. demand, total exports in 2010 are expected agement or adversely affect future prices. There are no official statistics on canned to be larger than last year. A little over 90% of The USDA claims that peach purée pro-peach consumption. The figures are derived Chile’s canned peaches are exported to Latin duction and exports are going to be affectedfrom the only known data, i.e. export fig- American countries: Mexico is by far its larg- in a similar way to canned peaches, as exportures and limited information supplied by est market. The industry expects Mexico to demand and prices have also fallen as a resultthe canning industry. remain the main export market for Chile due of the economic crisis that is affecting most In general, however, demand for canned to a high import duty (23%) for Greek economies in the world.peaches in Chile is considered to be rela- canned peaches. Chile normally imports Due to a strong demand and increasingtively stagnant. This is partly the result of small amounts of canned peaches, which are prices for peach purée, the industry increasedincreased competition from alternative mainly destined for government school production and exports until 2008.products, particularly ice cream and yogurt. lunch programmes or low-priced Chinese The USDA adds that a fall in demand andSmall profit margins do not permit canner- products. prices will lower production and exports ofies to advertise their products in the domes- There are no official stock figures avail- peach purée in the coming years.tic market. able. Normally, the canning industry hesi- FOODNEWS does not necessarily agree As a result of an increase in production of tates to specify inventories out of fear that with this assessment.Brazil and Peru to discuss sardine restrictions New canned rangeREPRESENTATIVES of the Peruvian and nical meeting to be held this week in Brasilia, CONSERVAS Libre Caribe, a cannedBrazilian governments have announced with the aim of defending the national inter- food company in Jagüey Grande, Cuba,they will evaluate the possibility of lifting ests because of the importance the fisheries has modernised its processing equip-the restriction imposed by the Brazilian au- sector has for the country.thorities on the import of Peruvian canned For the Ministry, the Brazilian regulations ment and is now producing tinnedsardines or anchovies to its market. affect exports of Peruvian sardine and the sweets. The Ministry of Foreign Trade and commercial expectations arising from the The 26 strong work force producesTourism (Mincetur) said that Peru had sub- agreements of the WTO. sweets in syrup, custard creams, creammitted a specific trade concern to Brazil in The meeting will be attended by María pots and guava, mango and passion fruitthe Committee on Technical Barriers to Elmore, the national director of multilateral marmalade in bulk, while also producingTrade from the World Trade Organisation affairs and international trade negotiations, canned tomato in season.(WTO). and by the director of the Free Trade Area of “The products are for local people, the That action was taken in response to the Americas, Maria Honorio, among other catering sector and school food pro-Brazil’s notice of the Regulatory Directive officials. grammes”, a spokesman for the companyproject, which establishes the requirement of There will also be a representative of the said.identity and of the quality of canned sardines. Commission for the Promotion of Peru The entire process, from fruit collec-This project does not include the anchovy Export and Tourism (PromPeru) to discuss tion to canning or preserving, is done bythat Peru trades as Peruvian anchovy. Brazil the subject from the technical point of view. hand. “We now not only produce basicalso ordered the ban on entry to its market of Promperu has recalled its request that the sweets, but have a wider range like thecans of this species, Andina reports. Brazilian government recognise the Peruvian cream pots,” he said. “It’s a shame that we Mincetur considers it is necessary that canned anchovy with the name allowed by cannot produce tomato all year round.”their representatives participate in the tech- the Codex Alimentarius.© Informa UK Ltd 2011 October 7 2011 13