2011 Fn44

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2011 Fn44

  1. 1. “Competition in our “Quote” markets remained fierce Name, title, company See page XX with customers continuing to focus on price.” Piet Hein Merckens, chief executive officer, Wessanen The European organic market, P20-21 VOL. 39 No. No. 00 NOVEMBER 2011 VOL. 00 44 4 00 MONTHUnsettling decline in processingtomato output for main EU originsGLOBAL TOMATO PRODUCTION - Production in Greece saw the Portuguese source. “Growers [willPRELIMINARY RESULTS (000 TONNES) steepest decline within the bloc – a be] coming to us in January and 2009 2010 2011 staggering 48% to 330 000 tonnes. saying we want more money than Preliminary However, a Greek processor told that. “We could be negotiating the EU major producers FOODNEWS that he believed pro- 2012 crop with a situation that the duction would actually pick up tomato planted in March/April will France 215 198 191 again next year, in spite of the be significantly lower than in Greece 810 640 330 decoupled subsidies regime and 2011,” he added. Italy 5747 5080 4950 the financial crisis gripping the Portugal 1242 1280 1060 country. Mediterranean rebound This year the major factor dis- Though the EU’s production this Spain 2700 2375 2000 couraging tomato production was year dropped so dramatically, it the effect of competitive crops, failed to dent the overall picture for A SUBTOTAL 10714 9573 8531 Other AMITOM countries D T D 400A mainly cotton and corn, but these AMITOM (Mediterranean Interna- 240 OA were now less lucrative, he said. tional Association of the Processing WNL Algeria 280 “Last year, whoever planted Tomato) member countries, as Iran DO 150 K TO Egypt 150 150 tomato did quite well so there’s a CONTINUED ON PAGE 6 CLIC Iran 2400 1400 1850 positive image [attached to tomato],” he added. Israel 238 243 220 Within the EU, the only real IN THIS ISSUE Malta 12 9 10 surprise came from Italy, which Morocco 160 172 172 turns out to have produced almost Melamine crisis haunts Syria 150 160 160 the same amount as last year, at China dairy industry 4 4.95 million tonnes (-3%), though Tunisia 750 850 850 previous indications suggested a Chinese AJC prices settling Turkey 1800 1280 1900 decline of around 10%. This was at all-time high 8 Ukraine 340 280 420 attributed to good weather in Sep- tember and October and higher SUBTOTAL 6240 4944 6012 production from factories that do Argentine grape must TOTAL AMITOM 16954 14517 14543 not belong to the sector prices on the rise 9 GLOBAL PRODUCTION 42365 37323 37185 organisations.SOURCE: AMITOM/WPTC Alaska fights introduction Fruit prices of GM salmon 12BY EMMA SLAWINSKI tomato and had the lowest raw With the market for industrial material price in Europe this tomato still depressed, negotiations Raw tuna prices high,GLOBAL tomato production season. This was expected to be over next year’s raw material price canned stocks low 13has stayed roughly stable this reflected in production similar to are likely to be tough. Processorsyear, according to the prelimi- last year’s level, at roughly 1.2 have been struggling with poor US and Thai sweet cornnary results published by the million tonnes. In the event, bad returns and difficulty in obtainingWorld Processing Tomato weather during the season pushed finance, but farmers will expect falling short 13Council (WPTC) last week, but output down by 17% year-on- higher prices. If they do not getthe five main EU producers year. them, the result could be a further Low crop takes toll onhave seen a significant – if Spain’s production dropped by drop in contracted acreage next Australian raisin growers 17expected – reduction, of a similar proportion (16%) to 2.0 year.roughly 1.0 million tonnes. million tonnes, while French “The price has to go up to cover Bunge upbeat despite Portugal is in its last year of output declined by 4% to 191 000 2011 crop costs, from the point of profits drop 22coupled subsidies for processing tonnes. view of growers,” said a Key Indicator Argentine GJC Spanish GJC Italian GJC Find more key data in our on-line exports +50% exports +46% exports -26% library at www.agra-net.com Snapshot 75 242 tns 85 977 tns 64 340 tns
  2. 2. Editorial Comment A step too farVOL. 39 No. 44 4 November 2011 ConsUmErs are being rice or vegetables, a dairy “Five portions of fruit and nagged, no doubt about it. The product (cheese or yogurt) and nanny state keeps a watchful either a starter or pudding. vegetables a day are now CONTENTS eye on what people eat, scold- There is growing concern, considered essential, while ing those who choose a high-fat however, that these new rules are carbohydrates and proteinsINDUSTRY NEWS meal chock-full of additives. effectively imposing meat con- Five portions of fruit and veg- sumption on pupils. The French are dished out accordingSales value strong at etables a day are now vegetarian group L214 claimed to some sort of foodSanfilippo but volumes considered essential, while car- last week that the government guidance pyramid system.”fall 3 bohydrates and proteins are has made it clear that all sources dished out according to some of protein should come fromFRUIT JUICE sort of food guidance pyramid animal, not vegetable, products. it is still tricky to get good vege- system. While some may argue Isabelle Dudouet-Bercegeay, tarian meals. The likelihood isPineapple juice in there are advantages to such a president of the French Vegetar- that if you asked for a meat-freedoldrums despite Thai policy, protecting the overall ian Association, said: “It’s a case lunch you would be given the well-being of a nation state, of if you don’t want your child to option of chicken. so why all thisfloods 7 others believe the authorities eat meat, don’t use the canteen.” fuss about the new rules? have gone too far. Chances are that if such a Simply because peopleCANNED FOODS deserve to have a choice. many Take the latest legal nutrition ruling was introduced in the UK requirements for French school there would be uproar, but school people choose to follow a vege-Thai pineapple canners canteens, for example. A law meals in France are quite differ- tarian or other dietary regimenhold prices 11 passed on 3 october now forces ent. The majority of French for matters of taste or principle canteens feeding more than 80 children are happy meat eaters or both. The authorities shouldFRESH PRODUCE children to adhere to minimum and frequently sit down to lunches not forget that consumers do not nutritional requirements, outlin- of rabbit, veal or cassoulet accom- want to be told what they canBelgium increases ing how much protein, iron, panied by charcuterie, much like and cannot eat. Ensuring wevegetable exports to calcium and fresh fruit school those in neighbouring Spain or have easy access to general nutri-France 14 children must be given. meals Germany. In fact, vegetarianism tional guidance is welcomed, and must include a protein element in France is still pretty rare at helpful; prescribing what weTOMATO PRODUCTS with accompaniment, such as around 2% of the population and must eat is not.Tomato processorsmull impact of EUagri-reforms 15 MOST READ… Do you see FOODNEWS’ daily email alerts? See below the most clicked-on daily news stories this week:DRIED FRUIT & NUTS 1. Chinese AJC industry faces 6. Tomato soup goes orange catastrophic losses 7. Natural sweetener in beverageUS walnut prices firm in 2. FCOJ futures market still wary of supplementscontrast to eastern storm Rina 8. Chinese AJC processors fear forEuropean 16 3. Panama’s pineapple exports up future as fruit prices soar 4. Lassonde raises loan to pay for 9. Magnetic tongue tests cannedFROZEN FOODS Clement Pappas tomato flavourMushrooms and okra drive 5. Americans underestimate 10. Dole frozen fruit products launchedUS frozen veg imports 18 canned foods in USBUSINESS INTELLIGENCE Contact us for your on-line password today call +44 (0)20 7017 4161Organic giant Wessanen or email online.access@informa.comoutlines future plans 20 COMPANY INDEX FMC Corporation 23 Parle Agro 9MERGERS & ACQUISITIONS Ahold 22 G. Willi-Food 22 Pernod Ricard 5 Bunge 22 Genesis Today 3 PMK 23Coca-Cola buys bottlingcompany 23 Campbell Soup 15 H&T Walker 13 Pulse Beverage Corporation 8 Citrus Australia 5 Inventure Foods 18 South Pole Biogroup 23WEATHER WATCH Coca-Cola Company 5, 23 Jamba 3 Sunrise 16Heavy rain and snow in US De Cecco 23 Jeronimo Martins 22 UMII Products 6delay harvesting 24 Delamere Dairy 3 John B. Sanfilippo & Son 3 Wakefern 22MARKET DATA Del Monte 22 Lassonde 5 Wegmans 16 Dole 18 Natalie’s Orchid Island 3 Wessanen 20-21EU-27 juice import data 272 www.agra-net.com © Informa UK Ltd 2011 - FOODNEWS® 4 November 2011
  3. 3. Industry NewsSanfilippo increases net sales News In Briefvalue, but volumes still falling More outlets for 2011 JAmBA, the Us smoothie chain, has announced that itBY JENNIFER WILLIS-JONES “Due to higher acquisition costs growing areas and the poor quality now has a total (as of 4 for most tree nuts that were pur- of the 2010 crop carry-over stocks. october) of 762 outletsJoHn B. sanfilippo & son, chased during the first quarter of Consistent with what has appeared around the world. All but 10Inc, a processor, packager, fiscal 2012, the weighted average in recent articles regarding the are in the Us, though Jambamarketer and distributor of cost per lb of raw nut input stocks 2011 peanut crop, we also believe intends to expand abroaddried fruit and nuts, has on hand increased by 18.4% as of that there is a possibility of a and opened its first store inannounced that its net income the end of the first quarter of fiscal peanut shortage during the 2011 Toronto, Canada, on 28for the first quarter of 2012 was 2012,” the announcement said. crop year,” Sanfilippo stated. October. It is also testing aUsD2.4 million, compared with Jeffrey T. Sanfilippo, chairman “Under these conditions, being new express service calledUsD1.1 million for the first and chief executive officer of the a peanut sheller can deliver mean- JambaGO, with a limitedquarter of fiscal 2011. company, said: “Net income for the ingful advantages. We leveraged menu of the brand’s signa- The firm added that net sales first quarter of fiscal 2012 more our long-standing relationships ture smoothies. Jamba’sincreased by USD10.0 million, or than doubled in comparison to net with our peanut farmers so that suf- chief executive James White6.8%, to USD156.8 million this income for the previous year’s first ficient peanut acreage was planted said the company expects toyear from net sales of USD146.8 quarter primarily due to improved to meet the majority of our peanut have nearly 80 new outlets,million last year. This increase can alignment of sales prices and requirements. Additionally, including JambaGO stores,be attributed to higher selling acquisition costs for most of the because we entered into purchase opened globally by the end ofprices generated by the company in products that we sell, except for contracts with our peanut farmers 2011.the first quarter of fiscal 2011. cashew products. Pricing actions prior to planting in February and Sales prices increased for all for cashews and products contain- March and fixed our purchase costs Now in the Big Applemajor product types due to “higher ing cashews are anticipated to be at that time, we were therefore able GEnEsIs Today, a Texas-commodity acquisition costs”. completed in the second quarter of to avoid a considerable portion of based superfruit juice maker,Sales volume, meanwhile, in the fiscal 2012. the year-over-year peanut market has partnered with Preferredfirst quarter of fiscal 2012 fell by “Unlike tree nuts, peanut market price increase,” he explained. Beverage Distributors to6.8% in comparison with the previ- prices for the 2011 crop have “Consequently, we should be introduce its superfruit juic-ous year. increased over 100% in compari- well positioned to meet our cus- es in New York City. Genesis The total value of inventories on son to peanut market prices for the tomers’ peanut needs over the next Today’s 10oz and 32ozhand at the end of the first quarter 2010 crop. This remarkable twelve months, assuming that the superfruit juices includingof fiscal 2012 decreased by USD2.3 increase in peanut market prices is negative impact of the drought açaí berry juice, pomegran-million, or 2.0%, while the volume due to reduced acreage, reduced conditions on crop quality and ate/berries with resveratrol,of raw nut input stocks decreased yields caused by drought condi- yield does not exceed what we are cranberry/goji, and its Wakeby 22.0%, or 5.8 million lbs. tions in the majority of the peanut anticipating.” me and relax me beverages,Hong Kong office to help lift goats’ milk sales are now available in manhattan, Bronx, Queens and Brooklyn, as well asBY JENNIFER WILLIS-JONES supermarkets, decided a base in of powdered milk products and we Staten Island, Nassau and Hong Kong would boost sales of its believe there is an opportunity to suffolk and WestchesterDELAmErE Dairy, a producer UHT goat’s milk. Currently, 10% of sell our UHT milk, which has a six- counties.of goat’s milk products in the its revenues are generated through month shelf life. We are hoping toUK, has opened its first office exports, with products already sold make significant inroads into theoverseas to increase sales. in Poland, Holland, Italy, the Czech Asian market by having a base in Industry moves The Cheshire-based company Republic and the Middle East. Hong Kong.” UmIT Guvenc, formerwhich produces and supplies goat’s Liz Sutton, who founded the Company turnover grew by 8% chairman of the Turkishmilk, cheese, butter and yogurt, as company 25 years ago with husband to GBP15.2 million in 2010 and Processed Fruit andwell as milk for pets under its Roger, said: “There is demand. In hopes are to reach revenues of Vegetable ExportersTopLife Formula brand to China, for example, there are a lot GBP16 million this year. Council, has left Turkish food manufacturer, Tamek, Brazilian juice maker quadruples functional juices sales and is seeking new opportu- nities in the fruit and vegeta- BY VLADIMIR PEKIC hopes to increase sales to cranberry with strawberry flavour ble processing sector. BrL100 million by 2015. - is available in 1 litre and 200ml Guvenc held the position of JUXX, a Brazilian producer of Juxx was founded in late 2006 packages. Juxx juices do not export sales director at functional juices, has reported a by entrepreneur Edson Mazeto Jr., contain colourants, preservatives Tamek, which produces fruit four-fold increase in sales in the with a BRL2.0 million invest- or artificial flavours and are pro- juices and other preserved first half of 2011. The company ment. The company’s first launch duced from juice concentrates foods, from 2009. Previously, sold 900 000 litres of juice in the was cranberry juice, previously imported from Chile. he worked for nearly 20 first six months of the year, available only as an imported The company will launch six years at Turkish conglomer- while earnings reached BrL6.0 product in Brazil. new projects before the end of ate, Koc Holding at its agri- million (UsD3.5 million) in the The entire Juxx product line – 2012 when it expects to double business branch, Tat. same period. The company cranberry, plum, pomegranate, sales compared with 2011. Key Indicator PJC price Chinese AJC Polish AJC Find more key data in our on-line USD1 750/tn +3% USD2200/tn +5% EUR1.52/kg +12% library at www.agra-net.com Snapshot Weds close Weds close Weds close
  4. 4. Industry NewsSpectre of melamine fraud stillhaunts Chinese dairy industryBY NEIL MURRAY verification and were delisted from CHINESE WMP PRODUCTION, DISTRIBUTION (’000 TONNES) production. These local processorsCHInA’s total milk produc- generally collected raw milk from 2010 2011 2012ftion will grow by 5% in 2012 small or backyard operators and TA 85 D DA 1200 Beginning stocks 80 110to 33.4 million tonnes, accord- their insolvency has pushed some OA 396 WNL Production 11001030ing to the latest report from the backyard operators to slaughterUsDA. Almost all of this (32.2 dairy cows in 2011. Although O OD Imports 326 450 KTmillion tonnes) will be cow larger operators are taking what Total supply 1466 1576 1735 CLICmilk. could be a risk to expand herd size, Domestic consumption 1386 1491 1685 Recently, China’s National Sta- the pace of increase in dairy cowstistics Bureau (NSB) announced a is constrained by land resources. Ending stocks 80 85 50new official figure for cow milk China’s skim milk powder Total distribution 1466 1576 1735production in 2010 of 35.8 million (SMP) production in 2012 is fore- Source: USDAtonnes. The USDA, however, cast to recover 2% to 57 000 tonnesbelieves it will take longer than following another 2% recovery the China’s liquid milk exports in while increasing the bacterialexpected for China to fully recover previous year, the result of greater 2012 will recover 12% to 27 000 colony maximum requirementfrom herd losses following the local demand for infant and func- tonnes, following a 14% recovery from 500 000/millilitre to 2.0melamine crisis of 2008. Chinese tional formula. Meanwhile, the previous year, the result of million/ml. These factors haveproducers are slowly rebuilding China’s whole milk powder demand from Hong Kong. WMP lowered processor confidence,the country’s dairy herd following (WMP) production in 2012 will exports in 2012 are forecast at with some manufacturers andthe melamine crisis in 2008 when rise 9% to 1.2 million tonnes, 11 000 tonnes, a 22% rise follow- resulted in shifts of entire product15% of China’s dairy cows were based on a 7% increase the previ- ing estimated double sales in 2011. lines to imported ingredients. Thistaken out of production due to ous year. It has taken Chinese This forecast has WMP exports strong demand for alternatives toweak demand after the melamine WMP production more than three approaching pre-melamine crisis local supply will result in a signifi-scare. However, recovery is slow years to fully recover from the levels of 2008. cant increase in dairy imports inand raw milk output in 2011 and impact of the melamine crisis in Inner Mongolia continues to be 2011, especially dairy powder,2012 will probably remain below 2008. the largest production area for and China’s dairy industry antici-the pre-melamine levels. Higher domestic demand for liquid milk products in China, and pates a continued increase in Although year-on-year raw dairy products, combined with is expected to account for 19% of 2012.milk prices only increased 3%, lower tariffs on dairy products total industry revenue in 2011. The Overall, milk powder demandprices have climbed 27% from from New Zealand (China’s largest province also has the largest will be particularly strong fromUSD407 per tonne in July 2009 to supplier), policy changes that numbers of dairy cows on hand. large-sized processing companies,USD515/tonne in July 2011. reduced the VAT on pasteurised The largest production bases of such as Inner Mongolia-based YiliEncouraged by higher milk prices and UHT milk to 13% in July from major firms Mengniu and Yili are and Mengniu, which offer con-in China, operators are increasing 17%, and a stronger yuan against also located in Inner Mongolia. sumers a superior safety profileimports of breeding dairy cows for the US dollar will drive China’s While higher prices and strong over smaller companies. Improvedgenetic improvement, which are imports in 2012, predicts the long-term prospects for China’s WMP exports will also encourageexpected to approach 90 000 head USDA. Liquid milk imports are dairy demand are driving produc- production gains in 2011 andin 2011. forecast to rise 21% to 40 000 tion gains, raw milk output growth 2012. However, the pace of increase tonnes. SMP imports are forecast may continue to be dampened byin dairy cow beginning stocks in at 140 000 tonnes, a 16% year-on- consumer safety concerns over Consumption2012 is forecast slightly slower year increase. The USDA forecasts local milk as a result of repeated Consumption of milk, cheese,than in the previous year due to the US will be China’s second melamine detections. In late 2010, yogurt and other dairy productscontinued withdrawal of backyard largest supplier in 2012, account- the Chinese government seized differs across regions and particu-operations, which still account for ing for 16% of total imports. over 2 000 tonnes of melamine- larly in urban versus rural areas.an overwhelming majority of China’s WMP imports are fore- tainted milk powder during a Regions with lower per capitaChina’s dairy herd production. cast to grow 14% in 2012 to six-month crackdown. All the milk incomes have lower consumptionAlthough the 2010 and 2011 offi- 450 000 tonne, due to strong powder was allegedly left over levels. Rural areas have the lowestcial data is not yet available, the demand for bulk supplies for from the 2008 melamine crisis and per capita consumption of theseUSDA believes the withdrawal further processing or food process- should have been destroyed. Pro- products, even though the ruralspeed of backyard producers will ing. Whey is China’s second ducers ignored the national population accounts for aboutbe much faster, following China’s largest imported dairy product and regulation to destroy tainted milk 60% of China’s total population.new requirement for all processing imports are estimated at about powder, holding onto product for Improvements in living standardsplants to reapply for verification of 288 000 tonnes, worth USD443 sale after the crisis died down. and consumption ideas in ruralprocessing qualifications and re- million in 2011. Higher sales are China’s newest dairy standard areas will contribute to higherobtain processing permits by the expected in 2012, driven by strong was implemented on 1 June 2010, market demand in the future, butend of March 2011. Given that the demand for infant formula, food and lower raw milk minimum urban populations will likelynew requirement is much stricter, processing, and feed production. protein requirement from 2.95 remain the main consumers ofmany small plants did not pass the The USDA forecasts that grams per 100 grams to 2.8g/100g, Continued on page 5 Key Indicator Spanish GJC exp Spanish GJC value Argentine GJC exp Find more key data in our on-line 85 977 tns +46% USD1 336/tn +10.8% 75 242 tns +50.6% library at www.agra-net.com Snapshot
  5. 5. Industry NewsContinued from page 4dairy products. Despite the overall years to come. The highest earning Chinese are not price-sensitive, market. US exports over the same period more than doubled at 4 199 News In Briefincrease in dairy consumption in and figures indicate they consume tonnes, valued at USD18.4 million,China, consumer confidence in the bulk of imported liquid milk. 23% of China’s market. Cheaper All-Aussie juicesdomestic dairy products has not yet Some middle-class consumers US cheese, as a result of the stron- FrUIT juice made fromrecovered owing to the seemingly switch between domestic brand ger Chinese currency, has made it a 100% Australian fruit willconstant reports of melamine liquid milk and imported milk competitive choice, challenging be proudly labelled as suchdetections. Foreign suppliers based on price sensitivity, while Australia exports to China. China before the end of the year,aggressively tapped into the market most urban consumers prefer pas- also imports cheese from France, according to ABC rural inand the term ‘imported’ has become teurised or UHT milk in carton Italy, and Denmark. An important Australia. The chief execu-almost a guarantee of food safety boxes or plastic bags available in change to note is that in 2010, local tive of Citrus Australia,or at least ‘free of melamine’. supermarkets or packed in bottles dairy manufacturers began to use Judith Damiani, says the Dairy product consumption for home delivery. Dairy bars in US bulk cheese for processed new labels will mean con-gains are mainly the result of the streets in large cities owned by cheese production, a first for China. sumers will not have to readrapidly rising interest in dairy brand companies, such as Sanyuan The gap between China’s per the fine print to know theirproducts in tandem with higher in Beijing, are gaining popularity capita consumption and the average juice is Australian. Growersdisposable incomes, increasing among younger generations, which per capita consumption of over say current labels are mis-health consciousness among the mainly sell fresh milk. 200kg in developed countries leading and can make it dif-growing middle class, and expand- Almost all the cheese available further illustrates the growth poten- ficult to find genuineing retail outlets. Although the in China’s market is imported and tial of China’s dairy market, says Australian juice. “made indairy market sustained a high rate processed. New Zealand is the the USDA. It also explains why Australia” is a term fre-of growth during the past decade, largest cheese exporter to China. China’s dairy market, facing so quently used by juice manu-per capita consumption of dairy From January-August 2011, New many challenges, has the potential facturers, and refers to juic-products in China, especially in Zealand exports to China rose 14% to bounce back quickly after es made with imported rawrural areas, is still very low, sug- to 8 344 tonnes, worth USD36.2 serious setbacks and still show material (fruit or concen-gesting the potential for continued million and accounting for 41% of considerable potential for future trates) plus a percentage ofstrong demand gains for many China’s total imported cheese development. Australian product.Peru/Thailand FTA comes into force in 2012 Juice purchase funding LAssonDE, the CanadianBY JENNIFER WILLIS-JONES been approved in Thailand by the give its government permission to fruit juice company that Lower Chamber in Congress and start negotiations with Peru con- recently bought Us juiceA TrADE agreement signed will now be voted on in the Upper cerning a Free Trade Agreement manufacturer Clementbetween Peru and Thailand Chamber in the next few weeks. (FTA). Pappas and Cowill come into effect from “Once it is approved by the “In parallel, we will start nego- (FOODNEWS 24 June), hasJanuary 2012, Peru’s vice min- Thai senate, Peru’s Ministry for tiations to convert the protocol into raised CAD15 million inister for Foreign Trade, Carlos Foreign Trade and Tourism an FTA and, even if we do not have additional financing fromPosada, has announced. The (Mincetur) will publish a supreme a start date for these negotiations, it two Canadian banks toprotocol will eliminate duties decree that will fix the date for the will probably be in the middle of cover the acquisition.for up to three-quarters of protocol to come into force, which next year,” he said. Lassonde had earliergoods shipped between the two is expected to be 1 January of next Products such as squid, grapes, announced a rights issue tocountries. year,” Posada continued. mango, avocado, asparagus, citrus pay for the purchase Peru’s Ministry of Foreign Furthermore, he said, the Thai fruit, onions and fishmeal are (FOODNEWS 29 July).Affairs has ratified the Early Upper Chamber of Congress will thought to be the main beneficia- Lassonde paid UsD390 mil-Harvest Protocol, while it has just not only ratify the protocol but will ries of the agreement. lion for Pappas in its big- gest-ever takeover. It nowChocolate tequila launched in South Africa owns 71% of Pappas while the founding Pappas family BY JENNIFER WILLIS-JONES retains 19% and the Lassonde family 10%. PErnoD ricard is to roll out a dark chocolate variant of its olmeca Fusión tequila range in south Africa following a suc- Cappy launched in India cessful test launch in Greece and Austria. It is hoped the premium Tequila-based liqueur with an ABV of 35% will COCA-Cola Company attract new consumers to the category. announced the official Olivier Fages, international vice president for Olmeca, said: launch of its Cappy fruit “While bartenders across the globe are really embracing Tequila with juice in Egypt. Cappy innovative and exciting cocktails, there is still huge scope to grow the already exists in other coun- other side of the category, by recruiting young, adventurous tries around the world consumers. under the name of minute “The Olmeca Fusión range, which has a lower ABV than our maid and Cappy selectii. original Tequila, currently boasts two variants, each inspired by the The company has invested delicious flavours of Mexico – dark chocolate and hibiscus. We more than EGP100 million are confident that this vibrant, refreshing range will be huge success (UsD16.6 million) in the for us, and look forward to monitoring its development in South production of the new 100% Africa.” juice product. Key Indicator EU27 imports Brazil EU27 imports US EU27 imports Costa Find more key data in our on-line NFCOJ +2% NFCOJ +41% Rica NFCOJ +56% library at www.agra-net.com Snapshot 360 563 tns 73 291 tns 5 698 tns
  6. 6. Industry News News In Brief Revamped juice regulations forAustralian mangoesTHE UsDA has given thegreen light for imports of Spain due to win EU approvalAustralian mangoes under BY JENNIFER WILLIS-JONES legally state they ‘contain no added must be labelled as ‘orange andan irradiation protocol. It sugars’. mandarin Juice’.has opened the matter for THE spanish Fruit Juice Asso- • Voluntary addition of aromas to The final set of regulations willpublic comment, until 27 ciation (Asozumos) has both freshly squeezed and from be presented at the next COREPERDecember. This follows a announced that new rules regu- concentrate juices is permitted in meeting in Brussels for its approvalrecommendation from the lating production and order to prevent additional costs on by EU member states, followed byUsDA’s Animal and Plant marketing of juices and nectars products or other adulterations. approval by the European Parlia-Health Inspection service will come into force in the • Fruits which have been treated ment in December.(APHIs) they be allowed country within a year. post-harvesting that can be con- The president of Asozumos,entry. The proposed proto- The organisation has been sumed as fresh can be used for Óscar Hernández, said “the asso-col also includes fungus working on the regulations along making juice, according to interna- ciation, following the instructionsmanagement procedures. with the European Fruit Juice and tional regulations. of the advisory council, has carried“As a condition of entry, Nectars Association (AIJN) since • Tomato will now be included as a out a good job and has achievedthe mangoes would have to December 2006, simplifying and fruit (with the possibility of adding practically everything that wasbe produced in accordance updating international rules on salt and spices), which will give asked”.with a systems approach juice production. legal recognition to tomato juice in He added: “The successfulemploying a combination The rules will now be as the EU. outcome is the result of a job wellof mitigation measures for follows: • Juices from concentrate can now done by our association, and thethe fungus Cytosphaera • An absolute distinction is made be obtained from dehydrated fruits fact that there was a Spanishmangiferae and would have between products, with juices following certain guidelines. speaker in the European Parlia-to be inspected prior to clearly labelled either freshly • In the interests of commerce, ment meant we were quickly madeexportation from Australia squeezed or from concentrate. regulations governing brix content direct partners with the Europeanand found free of this dis- • The addition of sugar to fruit have been changed. Guava, mango, Parliament to meet all the demands.ease,” the statement said. juice sold in Europe is absolutely passion fruit and redcurrant juices Nationally, we have also workedIf all goes well, the market prohibited. As a result, EU legisla- can now have a slightly lower brix very hard with the Ministry ofcould be open to Australia tion is more precise and stricter content than before. Environment and Rural and Marinebefore the end of the cur- than international laws, better pro- • Labelling requirements for mixed Affairs, transferring their demandsrent season, which runs tecting consumer interests. fruit juices have been simplified, to Brussels.through to around march. • Up to 18 months after the new with fruit listed in order of impor- “The approved regulations have regulations come into force, fruit tance in the drink. taken into account current produc-Natural sweetener deal juice may still be labelled as ‘not • The use of ‘no added sugars’ on tion of juices and nectars, coveringUmII Products has signed containing any added sugars’ so nectar labels has been defined. all the legal requirements in fooda three-year agreement that it does not suffer from a com- • Orange juice cannot be labelled safety issues including some tech-with Tate & Lyle for the parative disadvantage to similar as such if 10% of mandarin juice is nical aspects that needed to beusage of Tate & Lyle’s drinks such as nectars which can added to the juice. In this case, it improved.”Purefruit monk FruitExtract in its all natural CONTINUED FROM PAGE 1 a large concentration of tomato As southern hemisphere pro-U-line of zero-calorie bev-erage supplements. The and Turkey saw a strong recov- deliveries in the late harvest ducers move towards their newagreement also allows Umii ery in production after very poor period, which commands extra season, the first production fore-to use the consumer-friend- harvests last year, to 1.85 million premiums on top of the base level casts for the major southly ‘Sweetened with tonnes (+32%) and 1.9 million of UsD68 per ton set this year. American producers were alsoPUrEFrUIT™ monk tonnes (+48%) respectively. In addition, brix levels overall revealed by the WPTC.Fruit Extract’ trademark These helped to bring production were lower than expected, the Chile is set to produce 700 000on its product packaging. in the area back to last year’s source said, particularly affect- tonnes, 94 000 tonnes less thanmonk fruit, also known as level, at 14.54 million tonnes. ing production of tomato paste, last year’s total, while Argenti-luo han guo, is native to California, meanwhile, has which as a high-brix product na’s output is pegged at 400 000south-east Asia where it has had slightly lower production then requires a greater volume of tonnes, up from 355 000 tonnesbeen in use for hundreds of than expected. rains waylaid raw material to achieve the same last year.years. Its pulp is steeped in harvesting in early october, and final volume. Brazil, the largest producer inhot water to release a natu- as of 29 october 11.96 million China’s final production is the region, is headed for 1.5ral, calorie-free sweetening (short) tons of tomato had been put at 6.79 million tonnes, slightly million tonnes, 90 000 tonnes lessingredient that is around delivered to processors, accord- higher than indications given in than last year.200 times sweeter than ing to the California Processing early october, and 9% above last Australia, whose crop lastsugar. The extract can be Tomato Advisory Board, with year’s. year was devastated by floodingformulated into a variety of very little (if any) expected to be overall, at this estimate global and only reached 87 000 tonnes,foods including beverages, delivered thereafter. production stands at 37.19 is expected to have 245 000dairy, cereals, confectionery According to one processor in million tonnes, a reduction of less tonnes, bringing it almost backand bakery products. the state, production costs will than 1% compared with last up the 2010 level, of 265 000 work out higher this year due to year’s 37.32 million tonnes. tonnes.Key Indicator Raw tuna Raw pineapple Cali peach trees Find more key data in our on-line USD1 850/tn -12% USD0.14/kilo -6.25% Bearing -3.2% library at www.agra-net.comSnapshot acres: 22 314
  7. 7. Fruit JuicePineapple juice market stays inthe doldrums despite Thai floodsBY NEIL MURRAY PINEAPPLE JUICE CONCENTRATE PRICE 2005-11 (USD/TONNE FOB)ALONG with the canned pine-apple sector (see page 11), the A DATThai pineapple juice concen- ADtrate (the two commodities are Source: FOODNEWS NLOfrequently produced by single DOWprocessors) market is in a state TOof turmoil due to the extensive ICKflooding in the country. After a few years of inclementweather (be it droughts or floods) CLand consequent low production,Thai PJC had risen to well overUSD2 000 per tonne. In recentmonths, the price has been falling,due to a better harvest this year andgenerally lacklustre demand for cans float, and FOODNEWS has fruit is reported to be of rather low demand, uncertainty over the reli-the product, but in the last week received a vivid description of a ratio at 16-22. In contrast, Brazil- ability of shipments, andprices have taken a slight lurch bottling plant with a sea of drinks ian pineapple is presently reported uncertainty over whether Thai-(about USD50) upwards to cans bobbing around in the waters. to be of extremely high ratio land’s processors can continueUSD1 750 per tonne fob, accord- “Can and packaging material (24-32) which means it may be in producing PJC. Consumers areing to buyers in Europe and supply is a big risk now for all strong demand for blending. also cutting back on some foodsUSD1 850+/tonne, according to a packers,” confirmed a processor. Overall, the real reason for the and drinks that they deem inessen-processor in the country, who “We are 30% short in loading for 7039 RHODES FRUIT EXPORT be FA 4/19/11pineapplePage 1seems to lacklustre market seems to AD tial, and 1:29 PM juiceadded that South Korea was con- this month, which is roughly 150 uncertainty: uncertainty as to fall into M Y category. CY CMY K C this CM MYtracting at USD1 950/tonne. full containerloads (fcls). We have The real problem is not so a delay of two weeks. In the firstmuch the harvest nor the produc- week of November, we are sup-tion of PJC, as the fields and posed to load 125 fcls but we canprocessing plants have escaped the load only nine fcls. All these inter-worst of Thailand’s flooding, but ruptions are because the tinplatethe infrastructure. There has been and drum factories got flooded in asome damage to plantations in the bad way, and we have to paynorth of the country, but the southhas not been damaged. Road travel is still difficult or nearly 5% more to maintain cus- tomer service levels.” Dedicated to delightimpossible in some regions, and Port delays At Rhodes Food Group we take great pride in producing a widestaff whose villages and towns Further adding to the infrastructure range of high-quality citrus fruit, pineapple and South Africanhave been flooded are at home, problems, the port of Bangkok is deciduous fruit. Our range is available in cans, plastic cupstrying to sort things out (in much reported to be suffering badly from and industrial juice concentratesthe same way as Chile suffered a the flooding, causing delays tolabour shortage immediately after shipments. If there is one positive & purees. These quality productsits earthquake last year). aspect to the flooding, it may be are appreciated by a broad As with steel cans, makers of that the waters have washed the range of customers in thedrums for packing PJC have excessive nitrates out of the soil in food service sector,watched as their factories flooded, the north of the country. That there industrial supplyand have asked processors to take is still PJC with excessive nitrate arena, as well asdelivery of their drums immedi- content is likely, and any extremelyately, if only because they can cheap product should be tested. the global retailprovide somewhere dry to store One buyer reported being market.them. FOODNEWS understands offered PJC at USD1 450/tonne,that the juice processers are quite only to discover that it had a nitratehappy with this arrangement. level of 50 parts per million: twice One source said that there was the AIJN level, although the AIJNstill a steel drum plant in operation recommends 15ppm as a morein the country, so the problem of suitable upper limit. Precisely thepackaging is probably not as same thing happened last yearserious as it is for canners. (FOODNEWS 10 December RHODES FOOD GROUP (PTY) LTD, PNIEL ROAD, GROOT DRAKENSTEIN, 7680, SOUTH AFRICAHowever, Thailand’s beverage 2010). TEL: +27 (0)21 870 4000industry has been badly affected, In addition, because the harvest www.rhodesfoodgroup.comnot least because empty beverage started rather early this year, the© Informa UK Ltd 2011 - FOODNEWS® 4 November 2011 www.agra-net.com 7 Composite
  8. 8. Fruit JuiceChinese AJC prices starting tosettle but at all-time high levelBY NEIL MURRAY CHINESE AJC PRICE (USD/TONNE, FOB)THE Chinese AJC situationremains extremely fluid,changing from day to day, butone thing remains: the product TAis extremely expensive, where D DA SOURCE: FOODNEWSit can be found, and will not be A NLOfalling in price in the foresee- OWable future. OD In addition, European and other T LICKproducers are putting up their Cprices, though whether this isbecause of higher fruit prices orbecause they are simply capitalis-ing on the woeful supply situationfrom China is harder to judge. The swift break-up of theChinese processors’ attempt todictate the apple price (FOOD- and clients from Israel who need have come stories of renegotiated switch to grape juice as a base forNEWS 21 October) has resulted in AJC for Passover are paying USD and even broken contracts. FOOD- blends (and white grape juicefruit coming into the processing 2 150/tonne. Who will pay USD NEWS has heard that some prices are starting to soar), Europeplants at last, but at a price. The 2 200/tonne fob? We will see!” processors are worried, having will probably need to importraw material price is not less than Indeed, it looks like processors are signed contracts early in the season another 40 000 tonnes of AJCCNY1 750 per tonne (USD275/ now talking about USD2 300/ based on the expectation of much besides what it produces itself andtonne) and in some places is quite tonne fob, which would work out lower raw material prices. “Broken what it can get from suppliers sucha bit higher. at an incredible USD2 900/tonne contracts or price renegotiations as Turkey. Ukraine and other “The price for fruit in east c&f duty paid Rotterdam. have happened or are happening eastern origins.China is CNY1 900/tonne, but It seems that the Chinese fresh right now,” confirmed one on-the- Importers in Europe are stillhardly any fruit is coming in to the market is even stronger than last spot source. looking optimistically at Latinfactories,” said one contact in the year, and that the fresh apple price America, which will come to thecountry. “Things have improved has also risen. However, the under- Other suppliers market in three or four months’recently in western China. The lying problem is one of fruit size. Poland’s earlier offers have all time. One processor in Chile lacon-price there is in a range of CNY “The fresh apple brokers are been withdrawn and the latest price ically described the debacle in1 750-1 780/tonne and we are smart,” said one of FOODNEWS’ from Poland seems to be EUR1.50- China as “very good news” andseeing much better inflow of fruit contacts in the country. “In the 1.52/kg (USD2.12-2.15/kg) added that he expected there to beto factories in the last week. At this past, they prepared 80+ [size ex-works for standard (up to 3% enough raw material for hisprice level I think we are catching grade] for the fresh market. But acid) product. Nobody is expecting company.grade C fruit that would normally this year, they store and sell 60-80 that price to remain at this level forgo to the fresh market.” grade for the fresh market. It is long. Turkey, too, has pulled its US lemonade Another source told FOOD- simple: 80+ is too big, so usually a earlier offers. Experimental offersNEWS: “Now Chinese apple is family shares it. But if the fruit is reported two weeks ago of up to distribution dealsomething around CNY1 800/ 60-80 grade, one person eats one EUR1.74/kg fob may yet become THE Pulse Beverage Corpo-tonne. The cheapest is CNY1 750/ apple. The headache is that this is reality. Turkey’s price for low acid ration of the Us has startedtonne and the highest is CNY1 850/ just what the processing apple size (around 1.2-1.5%) is now put at midwest distribution of itstonne. This means that the AJC is now. In fact, China still has around EUR1.60/kg. “Normally Cabana natural lemonadesprice is about USD2 300-2 400 per some 80+ fruit from the last crop Turkey produces circa 60 000 through an agreement withtonne.” The last price that FOOD- (the quantity is not too big), but all tonnes of AJC,” said a processor in southern Illinois BeveragesNEWS heard from China was smaller fruit from the last crop is the country. “However, this season, based in nashville, Illinois.USD2 200/tonne fob. The price sold.” considering the fruit prices are Southern Illinois has been dis-has thus trebled in less than three Another contact corroborated double those of the previous year tributing beverages sinceyears. this story, adding that Chinese at the farmgate, the farmers may 1996, servicing 35 counties “At this level, who will buy I do apples can be of remarkably large bring more fruit to the industry.” regionally as well as the city ofnot know,” echoed another source size. FOODNEWS has also heard He added that Turkey usually har- st. Louis and five surround-in China. “But I know that clients that smaller ‘individual’ size vests around 2.7-2.8 million tonnes ing counties in missouri. Itfrom the EU intend to pay USD apples are particularly prized as of apples, putting its crop size on a distributes AriZona Tea, Vess1 950/tonne fob and will get gifts and smaller ones still are level with that of Turkey. carbonated soft drinks, Ever-nothing. Clients from Australia being sold as suitable for children, Even allowing for increased fresh juices, Florida’s naturalintend to pay USD2 000/tonne and because their small hands can cope production from Turkey, and also juice, rip It Energy Fuel,will get nothing. Clients from the with them. allowing for a decrease in con- Geyser Water, TradewindsUS paid USD2 050/tonne and got With these unheard-of prices sumption and demand for AJC, and Tea and ohana fruit drinks.some small quantities last week, both for fruit and finished product also assuming that processors will8 www.agra-net.com © Informa UK Ltd 2011 - FOODNEWS® 4 November 2011
  9. 9. Fruit JuiceMust prices increase as applejuice becomes more costlyBY JENNIFER WILLIS-JONES “Argentina’s increasing global mustIn THE past week, san Juan has seen a sales were prompted by reducedrecovery in the price of its sulphited must, stock in France as a result of poorwith signed contracts reaching Ars1.15 weather conditions, and(UsD0.27/litre) per litre, an increase of15% on last week, according to the Viti- developments in the Chineseculture Chamber in the province. apple juice market.” The marked improvement in price can beattributed to increasing demand from grape 56.37% on the 44 315 tonnes shipped in theconcentrate exporters, the majority of whom same period the previous year, according toare based in Mendoza. data from customs. This was the largest This year, in accordance with what has been increase in shipments since 2008 when 195 142sold up until now, the grape juice sector tonnes were shipped during the year.expects to sell 130 000-140 000 tonnes glob- The news is also good for producers of bulkally, out of a total of 170 000 tonnes that has white wine who have suffered with low pricesbeen produced this year, according to data from in the region following a large number ofthe Argentine Must Chamber. stocks leftover from last year. The organisation explained that Argentina’s In San Juan basic white wine is currentlyincreasing global must sales were prompted by priced at ARS0.80/litre (USD0.19/litre),reduced stock in France as a result of poor although in Mendoza prices have started risingweather conditions, and developments in the with prices of around ARS1.15-1.20/litre forChinese apple juice market, its main competi- good quality wine for export as a result of localtor, which recently reached prices of government subsidies.USD2 100-2 200/tonne fob. “Here in San Juan we continue with the old Production of grape must is extremely price, I do not have news of a recovery inimportant to the economy in San Juan and the Mendoza wine prices, but I have noticed thatindustry hopes to get back on track this year the must market is moving fluidly,” said Angelafter three poor seasons. Leotta, president of the Viticulture Chamber. “There are companies who have left theExport figures market and yet they have got in touch with theDuring the first half of 2011, 69 295 tonnes of chamber so that we tell the wineries that sul-must were exported, signifying an increase of fited must is in demand,” he added.Two new pineapple processing plantssoon to come on line in MozambiqueA PInEAPPLE processing factory is due Tomo said that as well as processing pine-to start operating by the end of the year in apple the factory would produce tomato,mozambique’s Zambézia province, papaya and grapefruit juice, concentrate and Professionalaccording to the director of the Provincial jams, along with other products. Fruit Concentrate ProducerAgricultural services, Luís Tomo. Speaking to Mozambican news agency Second plant Clear Apple/Pear Juice ConcentrateAIM, Tomo said that the factory, which had Another USD6.0 million pineapple processing Cloudy Apple Juice Concentratebeen scheduled for completion last May but factory is due to be built in the Muxúnguè Apple/Pear/Peach Pureehad not because of problems with the contrac- region of the central province of Sofala. This Apple/Pear Aromator, “is ready and should start operating before factory, which belongs to South African groupthe end of the year”. The idea is to use up the First National Choice, is intended to processsurplus fruit that otherwise lies to rot in the around 40 tonnes of pineapple per day, accord-region. ing to the country’s Agriculture Ministry. Yantai North Andre Juice Co., Ltd. Add: No. 889 Xincheng St,Muping Yantai,China 264100 T e l : Frooti’s direct challenge to Coca-Cola’s Maaza Fa x : 86-535-4230228 4762998 86-535-3396029 E-mail : business@northandre.com INDIAN drinks maker Parle Agro is launching its Frooti mango juice in glass bottles in Web: www.andre.com.cn a direct challenge to Coca-Cola’s maaza brand, which owes half its sales to returnable glass bottles. The new glass bottles mark a move into rural areas, where such packs are preferred. At present, urban sales account for nearly 90% of all sales. maaza is the leader in the fruit-based drinks sector, and is also sold in Tetra Paks and PET. However, its share of the market fell to 41% in the first half of this year from 48% in H1 2010, while Frooti has maintained its 25% share.© Informa UK Ltd 2011 - FOODNEWS® 4 November 2011 www.agra-net.com 9
  10. 10. 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. sunit.patel@informa.com
  11. 11. Canned FoodsThai canned pineapple producers News In Briefhold prices in face of uncertainty Fish counts CAnnED foods are oftenBY AMY BOOTH licenses. Furthermore, with soared to a high of THB7.5/kg just as nutritious as their essential aid supplies running low after drought caused a shortage of frozen and fresh counter-IT IS peak pineapple season in and being imported in large quan- fruit. “If the farmer migration to parts, but many AmericansThailand, but persistent flood tities, the port is too busy to other crops continues, soon we do not even realise that theywaters and rising production export consumer goods. will have the same bad situation count towards dietary tar-costs are still cause for concern. At the current height of the of no supply, but this time, it will gets, the Canned FoodThe centre of Bangkok has harvest, output is around 12 000 be for good... I do not really know Alliance (CFA) reports.survived the peak of the high tonnes per day and raw material how this mismatch will end but I According to the survey,tide, but concerns remain that prices are currently at an average know that it is really important 37% of respondents believedams could break, as hap- of THB4.5 (USD 0.14) per kilo, for manufacturers to sell at the canned foods to be of lesspened in the north of the city. down slightly from THB4.8/kg. current price,” he said. nutritional value than frozenThis situation is expected to This is less of a drop than buyers Another source suggested that foods and 57% believe thempersist for at least a month. expected. One contact explained this trend may be tempered by the to be of less nutritional value The proportion of the quar- that some figures in the industry several-year gap before crops than fresh produce. 51% ofterly pineapple crop which has are working to keep prices at such as caoutchouc can be har- those surveyed did notbeen destroyed remains around these levels, since farmers are vested, but it is an issue which realise that cans are a very15%. The main body of the flood currently dealing with costs of has been observed in the past. safe form of packaging – yetwater will take a path to the sea THB4.07/kg. This is largely due Faced with the lack of Thai as a tamper-proof, airtightwhich does not include southern to the price of fertiliser and other pineapple, it is expected that form of packaging, they didpineapple plantations, but chemicals of the trade, which has buyers will turn to the Philippines not directly account for amonsoon rains will continue to risen by 58% or more over the and Indonesia, but Kenya, which single outbreak of 4 500 sur-fall on the south until the end of past year. also produces pineapple, has suf- veyed in the Us in 2005. TheNovember and this, too, could Fruit canners have two main fered from drought this year and CFA stated that cannedcause flooding. reasons for holding their prices: is not set to export in large quan- foods offer “affordable, Many healthy crops cannot firstly, they must cover the costs tities. Heavy rain in central accessible and convenientreach the shelf because of prob- of flood damage, and secondly, America is also causing wide- nutrition, helping Americanlems such as the lack of tinplate pineapple farming must stay prof- spread problems with the Costa families prepare and enjoysupply and workers’ inability to itable. “Manufacturers are afraid Rican crop. The country is the nutritious meals that tastetravel. that if pineapple plantations make global top exporter of fresh and great,” and is now working There are various obstacles to a loss for another year, farmers dried pineapple, but the Cámara with the UsDA to educateexporting: Bangkok port is are likely to switch their crops to de Exportadores y Productores de Americans and help themclosed, forcing exporters to other kinds such as sugar, palm Piña estimates that the industry achieve dietary goals.reroute, and at the next port, oil and rubber which has already has lost around USD2.5 millioncustoms workers unable to reach been a strong trend,” a producer in consequence. The full impact Finfish traceabilitytheir offices cannot sign export said. Last year, the price of fruit remains to be seen. A nEW Iso fish traceability standard will improve foodCalifornian peach tree pulls may need safety standards by facilitat- ing product recalls and pre-to be curtailed as US exports increase venting disease outbreaks. The standard details the facts that each businessBY AMY BOOTH California with 23 000 acres of export figures rose by 45% to along the supply chain must peach trees in total. Current levels 253 334 cases from 175 138 in the store about the fish theyPEACH trees in California of demand indicate that there will same period last year. This is handle – this will entail notcontinue to be pulled, but the be greater demand for Californian notably higher than the previous just the origin of the prod-latest California Canning peaches next year to the extent two years, but still well short of uct, but how it has been pro-Peach Association (CCPA) that yield rates will need to be 2008, when 449 862 cases were cessed and its precise con-figures suggest that this may improved. exported. Mexico is the top export tents. The standard may beno longer be necessary at a The June-August period saw a partner, with figures booming to utilised by fishing vessels,time when exports are soaring 34% drop in US canned peach 162 660 cases from 70 606 cases processors, transporters,and new markets are imports, down to 582 568 cases last year. traders, retailers and cater-emerging. from 887 886 cases in the same The recent withdrawal of ers among others. A similar This year to date, 709 acres of period in 2010. The large drop retaliatory tariffs on a variety of standard will apply topeaches have been pulled. This can be attributed to last year’s US products including many farmed finfish. spokespersonrepresents 3.2% of California’s unusually high figure. In the same kinds of fruit may see these rolf Duus said: “the respon-total peach growing acreage. period, exports rose 45% to figures continue to rise. Second sibility for supplying safe,Over half of the pulled trees were 253 334 cases from 175 138 export market Canada was up 9% healthy and nutritious foodin the Yuba/Sutter area, with most cases. The top three importers are to 67 054 cases, and a massive is shared between all actorsof the remainder in Modesto. China, Greece and Chile; Greece’s rise from 1 078 cases to 10 171 involved in the production, It is anticipated that a total of imports are up 24% to 206 008 cases destined for South Korea processing, marketing and800-900 acres will be pulled this cases from 166 594 cases, but may be indicative of an emerging consumption of fish and sea-year. Around 1 400 acres of Chile’s imports are down to market – a situation which can food.”peaches planted in 2009 will 33 583 cases from 62 846 cases. only be helped by the two coun-begin to bear fruit, leaving In contrast with this, June-August tries’ recent free trade agreement.© Informa UK Ltd 2011 - FOODNEWS® 4 November 2011 www.agra-net.com 11
  12. 12. Canned FoodsConcern over introduction of GMsalmon to Alaska goes to the topBY AMY BOOTH the natural, wild nature of the source said: “Well, that is always premier producer of wild salmon, product, and those within the a danger, but then the farmers do the reports from BC must beAQUACULTUrE company industry fear that the introduction not want to flood their own looked into,” he commented.AquaBounty may be set to of GM salmon to Alaska could market.” Washington senator Cantwell saidproduce genetically engineered cause customers to lose faith in the A contact explained that Alas- in a press release: “Infectioussalmon – a controversial move state’s salmon, harming sales. For ka’s governor and congressional salmon anemia could pose awhich would see the first ever the year to August, the US delegation have declared them- serious threat to Pacific Northwestgenetically modified animal exported 12 081 tonnes of fresh selves to be against the wild salmon and the thousands ofdestined for human consump- salmon and 29 662 tonnes of introduction of GM salmon for Washington state jobs that rely ontion. The fish would grow far canned salmon. It is the top global human consumption and are them. We have to get a coordi-larger than their wild counter- canned salmon exporter, although calling for appropriate labelling in nated game plan in place to protectparts, but the proposition is this year’s figure is lower than the event that the fish are pro- our salmon and stop the spread offacing opposition from Alaskan figures of around 30 000-35 000 duced. The source added that all this deadly virus.” However, in apoliticians, seafood experts tonnes which have been seen over Alaskan salmon is wild and sus- state where seafood sustainabilityand environmentalists. the past decade. tainably harvested. “We will is written into the constitution, the The decision is currently at Developers AquaBounty and hopefully never have GM salmon industry remains wary of drasticWhite House level, where there biologists at the University of New here,” he declared. It is as yet too precautionary measures. “Ruleare concerns about consumers’ Brunswick claim that the fish are early to say what impact their one: do no harm,” a source said.“right to know” and the transpar- not dangerous for humans and introduction would have on prices. He added that an outbreakency within the procedures. could play a key role in meeting Moreover, the fin fish farms where would reduce the quantity of fish AquAdvantage salmon, dubbed demands for high-quality protein. these fish would be bred are illegal available, which would push‘Frankenfish’ by many in Alaska, They would all be sterile females in Alaska for the specific reason prices up, but there is also theare bred from Atlantic salmon. farmed inland to prevent contact, that diseases could very easily danger that it would put consum-They grow twice as quickly as breeding or spread of disease with grow and spread to wild fish, ers off salmon, which could causetheir non-GM counterparts and wild salmon. according to The Vancouver Sun. prices to fall. If other outbreaksachieve the same weight on 10% “I do not think that the intro- Regarding reports of infectious serve as an accurate model, BCless feed – but they raise many duction of GM fish would cause salmon anaemia (ISA) in British and Alaska would be looking at aobjections ranging from the envi- the wild fish market to tank,” an Columbia (BC), he said the issue rise in prices. The Chilean out-ronmental to the economic. industry source said, explaining was “certainly cause for concern, break caused frozen salmonAnchorage Daily News reports that Alaskan wild salmon’s unri- but not for panic”. Alaskan exports to fall from top globalthat Alaskan salmon is renowned valled quality gives it a firm Senator Begich expressed con- levels of 50 706 tonnes in 2009 tofor its quality, and that the Alaskan market position. Buyers are said cerns that the disease would 14 110 tonnes in 2010. Fish Infor-economy earns almost USD1.0 to be “reasonably well-covered” spread to the state. “This virus is a mation Services estimates that thebillion from salmon each year- but this season. On the possibility of potentially serious threat to wild 2008 outbreak led to over 25 000much of its reputation is built upon GM fish flooding the market, the salmon stocks and, as the world’s job losses.Flooded Thai can manufacturers run short of lacquerBY AMY BOOTH Samuthprakarn, which is in the ing as it goes. cycle. This used to be an annual south east of Bangkok. This area Fruit packers left unable to can cycle, but after massive demand inWITH tides high and floods lies in the path of huge volumes of their fruit are now forced to con- China coincided with the globalpersistent, even companies that water flowing towards the sea and sider other ways of selling or financial crisis in 2009, the pricehave escaped the flooding are is the location of most tinplate and storing it, such as pulping and soared. It did not stabilise for 18running into problems as sup- can manufacturers. freezing. However, one source months, and even then, it was 30%plies run short and roads flood. It is 10 days since industrial commented that “canned pineap- more expensive. A FOODNEWS contact estates to the north of Bangkok ple has a very special taste. Prices are now reassessedexplained that one large canning were hit by the water, and the Producers are left with losing that every six months rather than everycompany in Bang Kapi is under quantity of water which has yet to taste, or using different packing year to ensure they correspondthree metres of water. Another drain away means that these firms methods which are more expen- with the market. The six-monthcanning company has escaped the will not be dry for some time yet. sive.” Canners are not entirely cycle means that price fluctuationsflooding so far because it is posi- “In October 2003, it took more dependent on the recovery of are less extreme but more fre-tioned on high land, but lacquer than four weeks to recover our Thailand’s tinplate industry quent, and rising or falling pricessupplies are running low, and the production after one week of inun- because there is a good chance of felt in the canning industry arefactory may be forced to close dation in floodwater,” one getting more tinplate from China generally echoes of this cyclicalwhen it runs out because it will be company wrote, begging the ques- and Japan, but as the source said, pattern.impossible to source more until the tion of how long it will take this “the headache is getting it to the However, the source added thatflooding goes down. So far, an time – but this remains unanswer- plant”. the price of tin only accounts forestimated 10% of tinplate produc- able while what has been described The situation in Thailand is not 3-6% of the retail price of the can,ers have been hit. The main as a “land tsunami” continues to forecast to affect the global price and that fluctuations in the price ofconcern is for the Poo Chow drain from north of the country of tinplate. A contact explained tin plate do not generally trickleSaming Prai area in into the sea, causing further flood- that its price moves in a six-month down too far.12 www.agra-net.com © Informa UK Ltd 2011 - FOODNEWS® 4 November 2011

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