Price Of Rice: Thailand’s Dilemma
Being on the top seldom implies an easy time. Thailand for example, is the world’s largest exporter of rice with as much as nine million tonnes shipped to the world annually. When food prices worldwide escalated early this year, consumers bought their supplies in bulk and created a widespread anxiety over sufficient supply. The government stepped in by releasing national stock while other rice producing countries stepped up on export bans.
Shortly after, Vietnam lifted the restriction and this eased global rice prices a little. But this time, as Forbes Asia’s report pointed out, Thai farmers felt the pinch instead, and urged the government, who again intervened by giving aid to farmers and buying stocks for BHT 14,000 per tonne.
Which side should the government be on and how can it strike a balanced consistency? Dhanin Chearavanont responded with his opinion. Chearavanont is Group Chairman of Charoen Pokphand (CP) Group, which owns CP Intertrade. The latter is one of Thailand’s largest rice exporters, and accounts for six percent of the country’s total rice export.
Essentially, Chearavanont supports the fundamental idea of cooperation between the top five rice-exporting countries, in line with Thai Prime Minister Samak Sundaravej’s proposal of an OPEC-styled rice cartel in Southeast Asia involving Thailand, Vietnam, Myanmar, Laos and Cambodia. Chearavanont explained to Forbes Asia why, although the Thai government is longer releasing stock: “Even if the price of rice is higher now and could benefit rice growers with more income now, there is still the need for the five to six rice exporting countries to discuss their cooperation. This is to ensure that we will have enough land for rice in the future and that farmers or rice growers will not turn their land into other crops.”
“This is not an attempt to set the price to distort market price mechanisms it is just an attempt to look for the most appropriate prices that could be enough of an incentive to prevent rice growers from shifting to other crops,” he added.
On the other hand, Thai exports are expected to fall over the last quarter of the year. Food exports to the global market totalled BHT 379.86 billion in the first half of 2008 and are expected to be some BHT 750 billion for the whole year. Export growth in the second half of this year will decrease about 13 percent as compared to the first half of 2008. Chookiat Ophaswongse, president of the Thai Rice Exporters Association, told Reuters that Thailand could export up to 8.5 million tonnes of rice in 2009, down from an expected 10 million this year, but he said later that even this lower target would be difficult to meet. “It won’t be that easy if the government insists on buying rice at 14,000 baht per tonne, which doesn’t reflect world market prices,” he said.
The Kingdom of Smiles may be the undisputed king of rice exports but the pricing issue continues to post problems to the government, growes, exporters and consumers. Only time will tell if a pricing system set according to an open market economy or OPEC model would help Thailand (and the world) through these trying times.
Bangkok, Thailand: According to the Bangkok Post, Thailand’s Food Institute has set a target for Thai food exports at BHT 1 trillion (US$29.2 billion) by 2012.
Food Institute director Yutthasak Supasorn has proposed to Industry Minister Mingkwan Saengsuwan to use the Functional Innovative Technology (FIT) programme as a means to add value to Thai food exports. This, he said, will increase opportunities for Thai food companies in the world market.
Thailand’s food exports to the global market totalled BHT 379.86 billion in the first half of 2008 and are expected to be some BHT 750 billion for the whole year. Export growth in the second half of this year will decrease about 13 percent as compared to the first half of 2008.
The projected decline is attributed to the global economic slowdown. Consumers will likely be less willing to spend, even on food, Supasorn said. Supasorn also said that the return of Vietnam and India to the world rice market would erode Thailand’s global share. India stopped exports of its rice to ensure sufficient domestic supple, while Vietnam’s crop was hit by a typhoon in the earlier half of 2008. “The re-entry of Vietnamese and Indian rice will reduce the demand for Thai rice, in terms of value, by 40 percent from the first half,” said Supasorn.
However, he added the institute projected that food exports would reach THB 1 trillion in 2012 if the FIT programme is implemented.
At present, Thailand supplies 2.5 percent of the world’s food export market, ranking it the seventh largest food exporter.
Kota Kinabalu, Malaysia: As reported by the Daily Express there were 40 incidences of food poisoning in Sabah in the first half of 2008. Of these, 77 percent occurred in schools. There were only 11 reported incidences in 2006. This number increased four-fold in 2007, amounting to 48 incidents.
State Health Director Dr Haji Marzukhi Md Isa who launched the State-level ‘Jom Tangani Stres 2008’ and Food Safety Promotion Programme, said the main contributing factors were unhygienic food operators.
He also cited dirty food premises, food being cooked too early and left for as long as four hours at room temperature before being served, unhygienic food handlers and contamination.
To reduce such incidences in schools, one of the initiatives adopted by the Health Ministry with the cooperation of the Education Department is the Food Safety Awareness Campaign. The campaign was started in 2007 with students and teachers as the target group. This year, it will target food operators in the canteens and school hostel kitchens.
Kuala Lumpur, Malaysia: According to Bernama, Fraser and Neave (F&N) Malaysia has launched a new range of lifestyle foods in the country. It is in line with F&N’s desire to strengthen its business that offers health and convenience.
Senior manager Eileen Chan said the new brand, ‘F&N aLive’ targets customers who lead busy lifestyles and require added health benefits from their foods. F&N aLive has three products – aLIVE Low Fat Yoghurt, aLIVE Whole Grain Cereal and aLIVE Nutritional Snack Bar.
The yoghurt and whole grain cereal are available in the market now while the snack bar will be sold from September 2008 onwards in Malaysia. In an F&N statement, the brand is a “combination of specific foods to amplify the nutritional benefits and flavor of each ingredient”.
Kuala Lumpur, Malaysia: Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui said that the promotion of the biofuel industry will not affect food supply from palm-oil based products.
As reported by The Star, Chin said that government policy gave priority to the use of palm oil as raw material for food production, although there is intention to promote the production of biofuel.
Malaysia and Indonesia are two of the largest palm oil producers globally. They have agreed to limit the production of palm oil to six million tonnes for the biofuel industry. “So, there is no issue of dwindling food production due to the increased promotion of biofuel manufacturing,” said Chin.
According to Chin, there are currently 10 biofuel factories in Malaysia with a combined capacity to produce 942,000 tonnes of biofuel from 960,750 tonnes of palm oil. But the local industry has only used 128,235 tonnes of palm oil toward the production of biodiesel last year.
Tokyo, Japan: As reported by theedgedaily.com, Japanese brewer Kirin Holdings is expanding its business interests in Australia. It has acquired Dairy Farmers for JPY 85 billion (US$780 million), helping Kirin to diversify away from a declining domestic beer market as the Japanese population ages.
Deutsche Bank analyst Kristan Walker said in the report: “Australian assets including Lion Nathan have been one of the major earning drivers for Kirin, so it looks as though Australia is becoming a more meaningful place of investment for them.” Kirin owns 46 percent of the Australasian brewer Lion Nathan.
Kirin has said in August 2008 that it would spend about JPY 300 billion on acquisitions and alliances until 2012. This is after spending over JPY 400 billion over the last 18 months.
Dairy Farmers recently reported a 23 percent increase in earnings for fiscal 2008. But a strong Australian dollar has made exports more expensive and less competitive against products from New Zealand.
Dairy Farmers Chief Executive Rob Gordon said in the report that he expects the deal will lead to consolidation of the industry. “The industry will benefit from rationalization, there are a number of overlaps between the two businesses,” Gordon said.
Kirin’s offer needs to win support of 75 percent of Dairy Farmers’ shareholders and also depends on the dairy producer agreeing on revised supply contracts.
Ho Chi Minh, Vietnam: The country is estimated to have exported 3.38 million tonnes of rice, worth US$2.24 billion in the first eight months of 2008. According to the General Statistics office, it is a 96 percent increase in value as compared to the same period in 2007.
Vietnam sold 450,000 tonnes of rice for US$334 million in August 2008 to the world, a 95 percent increase in value over the same month last year. While the value of rice exports were exponential, the actual volume shipped overseas has fallen.
According to the Vietnamese Ministry of Industry and Trade, world rice prices have fallen recently as major rice exporters, including Vietnam and Thailand, have had bumper crops. The ministry has asked local rice firms to accelerate rice delivery promised under export contracts.
Minister of Agriculture and Rural Development Cao Duc Phat has also asked businesses to sign more export contracts and accelerate purchases, so that farmers would not have to deal with large inventories, which could push prices down.
According to the ministry, about 3.6 million tonnes of rice is expected to be exported in the first nine months of 2008. Vietnam exported 4.5 million tonnes of rice worth US$ 1.5 billion.
Ho Chi Minh, Vietnam: Vietnam’s seafood export turnover has increased by 20 percent in the first seven months of the year as compared to the same period in 2007, valued at US$2.4 billion.
According to the Vietnam Association of Seafood Exporters and Processors (VASEP), frozen shrimp export turnover accounted for 32.8 percent while Tra and Basa catfish made up 31.9 percent. In July 2008, Vietnam exported over 136,000 tonnes of seafood worth nearly US$476 million. This is the biggest growth in volume and value in the past three years.
Russia is a big market for Vietnamese seafood exporters. In July, 2008 Vietnam exported US38 million to Russia, 64 times the same period last year. Exports to the EU, Japan and South Korea also grew – by 17.23 percent, 41.72 percent and 23.85 percent respectively.
The US Department of Commerce recently exempted three Vietnamese Tra catfish export and processing companies from anti-dumping tariffs. This development is expected to boost export revenues further. If that is the case, this year’s seafood export target of US$4.25 billion is reachable, said Nguyen Huu Dung, VASEP’s standing vice-president.
Beijing, China: According to a report by The China Daily, the Ministry of Health has submitted its latest draft of its food safety regulation to the National People’s Congress (NPC) Standing Committee on August 25, 2008.
The ministry will have the primary responsibility of food safety supervision under that newly proposed legislation. It will also take on additional tasks of risk evaluation, standards setting, accident investigation and information under the draft.
Chen Junshi, a senior researcher with the National Institute for Nutrition and Food Safety, said that while the draft draws clearer lines of responsibility, it fails to tackle problem with the supervision mechanism.
Under existing legal framework, at least six government departments are involved with food safety and this leads to problems with enforcement. Chen praised the decision to give overall responsibility for supervision to the health ministry. Currently, this task rests on the State Food and Drug Administration (SFDA) which has only vice-ministerial status.
“It is impossible for a vice-ministerial dept to coordinate ministries. So, things may get better if the new law is approved,” Chen said.
Shanghai, China: In a report by wine-info.com, grape growers and wine makers at the Romeo Bragato industry conference in Christchurch, New Zealand were told that imports into Asia would be worth US$17 billion by 2012 and US$27 billion by 2017. Naturally, New Zealand wine-makers want a slice of the pie.
Asian countries had been minor export markets, with individual countries buying up to US$10 million of wine annually, compared to Australia which bought US$250 million, the UK – US$240 million and the US – US$160 million.
“There is very big potential, a real opportunity for red wine in particular, and to broaden our base away from sauvignon blanc,” Chief Executive New Zealand Wine Growers, Philip Gregan said of Asia.
Asian markets favour red wine, but there is potential for white given its compatibility with Asian food. According to Gregan, Asian wine markets would need some nurturing. But with New Zealand’s wine exports expected to grow to value US$1 billion 2010, it is necessary to look for new consumers.
Simon Tam, from the International Wine Centre in Hong Kong, told the conference that the reputation of Chinese as non wine-drinkers was unfounded. It was also a market reputed for cheap wine often mixed with soft drink. He commented that Chinese have become more wine savvy with the increasing sophistication of eating and drinking culture. The country imports 30 percent of its alcohol, with most imported from Spain and South America.
The Chinese, like the Europeans, want quality products and services. Tam said that exporters needed to do the same homework on Chinese buyers and distributors. Another mistake for exporters was potential partners overpromising what they could deliver.
Despite claims from distributors, the country is too large for one company to handle nationwide distribution. Tam says that exporters should focus on individual states or cities such as Hong Kong or Macau.
It is a myth that rules and laws could be circumvented by personal relationships. Tam said, “China is cleaning up its house. Doing business in China is no different than doing business anywhere else in the world right now.” Companies are being randomly audited and there has been increased pressure to desist from illegal activities.
Taipei, Taiwan: Two days of tens of thousands took to the streets of Taipei to protest the inaction of the government to halt or slow rising prices, a new round of food price hikes are due to take effect September 1, 2008.
Suppliers are being forced to pass on increasing material costs. According to them, they have to do this even amidst shrinking consumer spending. Some infant formula manufactures have raised
prices by as much as 30 percent.
Some food suppliers have approached the problem differently. Instead of raising prices, they have reduced the weight of packages and number of items per pack.
Although the cost of flour has dropped as a result of falling prices for imported wheat, some manufacturers say there is no room for price reduction since sales have declined around 20 percent. They said they are unable to lower retail prices for moon cakes (a traditional confection consumed during the mid-autumn festival annually in September) because the flour used was purchased during the flour hike.
The new price hikes will cause more problems for the Ma administration that took office in late May, 2008. President Ma Ying-jiu personally urged the public, especially government agencies to buy more moon cakes made by the under-privileged and social welfare organisations. The sales of moon cakes have become a major source of selffunding for these groups in the recent years.
Premier Liu Chao-Shiuan has vowed that his Cabinet will not allow unreasonable price hikes for daily necessities and commodities. But so far, the government seems incapable of containing the price increases despite repeated complaints from the people.
Beijing, China: According to ChinaStakes.com, Chinese authorities are increasingly concerned about the control that foreign firms have over the country’s food supply. There is even talk that the recent inflation was triggered by the foreign giants as they expand into Chinese agriculture.
Agriculture occupies the largest sector of the Chinese economy and its stable development is crucial to China’s growth. Recent inflationary pressures that coincided with multi-nationals’ entrance has sparked off calls for protectionist policies. Five years ago, the four big grain dealers: ADM, Bunge, Cargill and Louis Dreyfus gained control of China’s soybean oil industry.
Rumours have surfaced that international investment banks, led by Goldman Sachs, may take a large stake in China’s hog industry. It intends to acquire around 10 hoggeries in provinces such as Fujian and Hunan for US$200 – 300 million. The hoggeries will be operated by other companies under Goldman’s supervision. Deustch Bank is already actively negotiating with Shanghai-based Hongbo and Tianjin-based Baodi to acquire their hoggeries.
Comparing 2008 to 2007, food prices have spiked 23.3 percent. Pork and oil prices have increased dramatically by 63.4 and 41 percent, respectively.
Liu Xiaorong, a researcher in a large state-owned oil company, said that foreign companies’ entry into the Chinese agricultural sector must be controlled: “How can we control our own fate if our 1.3 billion must be fed by foreign companies?”
Beijing, China: Xinhua Daily has reported that the Chinese government is working on a plan to boost grain output by 10 percent by 2020. Vice Chairman of the China National Association of Grain Sector Song Tingming said that the National Development and Reform Commission and the Ministry of Agriculture are drafting the plan to boost output by 50 million tonnes a year to 550 million tonnes within the next 12 years.
This ambitious target is 20 million tonnes higher than the previous amount set by the State Council in July. In a statement, the new plan aims to “fully explore the potential capacity of major production provinces, and takes into account the rising population.” The government wants to keep the population at 1.45 billion by 2020.
Macau, China: According to the Macau Daily Times, factors such as inflation and restrictions on the Individual Visit Scheme (IVS) in the Mainland have adversely affected local retailers.
The hotel industry is concerned about the rate of vacant rooms and the F&B industry is predicting that their business will dip by 10 percent. Since the tightening on the IVS, visitors to Macau have halved.
Hotel vacancy rates have affected the takings of the foodservice sector. As there are less visitors to the Special Administrative Region, restaurants and food outlets across Macau have seen their earnings dip. A spokesperson for the F&B industry said that takings would be down 10 percent as compared to 2007.
Beijing, China: Chinese authorities have stepped up inspection and quarantine measures on meat products from a Canadian company after its products were involved in a fatal outbreak of listeria.
According to a report by Xinhuanet, nine people in Canada have died from listeriosis caused by contaminated meat products from Maple Leaf Foods. It is the largest food company in Canada.
The outbreak has been attributed to the company’s Toronto plant 97B. The company claims that it has never sold products to China while Canada halted China-bound exports from other related facilities.
“We would watch the situation closely and take timely measures to keep tainted products out for the safety of Chinese consumers,” a spokesperson for the General Administration of Quality Supervision, Inspection and Quarantine.
Since the incident, Maple Leaf Foods has closed the Toronto factory and issued a recall of some 270 products after a customer died from consuming tainted meat on August 20, 2008. The Public Health Agency of Canada has confirmed 29 cases of the outbreak and there are a further 35 cases under investigation.
Listeriosis can cause flu-like symptoms such as stiff neck, headache, nausea and fever. People with a weakened immune system are at the greatest risk of infection.
Beijing, China: Tai Na International Fruits and the China National Green Food Industrial (Green Industry) Ltd Co have signed a letter of intent for strategic partnership on August 29, 2008.
As reported by Market Watch, the two parties have reached a preliminary consent on issues such as building a base, distribution of products in Beijing, store sharing and cooperative operation was well as acquisition of certain Green Industry assets by Tai Na.
Beijing-based Tai Na International Fruits is a wholly owned subsidiary of China Fruits Co with a registered capital of RMB 10 million (US$1.4 million). The company specialises in handling famous and special fruits from China and abroad.
This move is a boost for Tai Na International to explore opportunities In the North China market. It will give Tai Na access to more markets in the country and increase brand awareness.
Taipei, Taipei: The China Post has reported that four out of 18 box meals commonly sold in convenience stores have failed to meet health standards.
A survey held in June 2008 by the Consumers Foundation (CF) randomly visited four large convenience store chains in Taiwan. Most of the meal boxes were found to be too greasy, lacking in greens or unclear labeling.
Of the four that failed, three contained artificial food colouring and one contained unlabeled preservatives. In addition, five of the 18 meal boxes surveyed contained excessive amounts of sodium, some 1,000mg more that the recommended daily intake of 2,400mg.
CF also noted that the plastic packaging that most of the box meals were found in posed additional health risks to consumers. Many of the lunch boxes contained three to four layers of layers of plastic wrapping, which can turn carcinogenic when heated in a microwave.
Beijing,China: According to the China Daily, sales of snack food soared before and during the recently concluded Olympics. “I have bought a lot food, including duck and chicken wings. I have also bought soft drinks, tea and ice cream,” said Wang Jing, a university student.
Carrefour said that sales of snacks and beer increased significantly since the start of the games. It is the largest foreign supermarket in China. The sale of snacks at the supermarket’s Fangyuan branch in Beijing rose nearly 16 percent in the first two weeks of the Olympics.
More people are also buying food from online stores to save time. Shanghai, Beijing and Hangzhou have seen the most significant growth. “Buying food online saves people the trouble of going to the supermarkets. It also gives people more time to watch the Olympics,” Qiao Peilei said. Qiao is a press officer with Taobao.com, a popular online market in China.
Taipei, Taiwan: Taiwan’s minimum price restrictions on rice exports will help reduce export volumes. This will ensure sufficiency for domestic consumption, according to a Council of Agriculture (COA) Official. Chen Wu-hsiung made the statement while explaining a decision taken by the COA in April 2008 to impose a price floor of US$1,200 per tonne for rice exports.
Taiwanese rice has been popular for export recently. Its relatively stable prices amidst international price hikes have made it attractive, according to Yu Sheng-feng, Director-general of the COA’s Agriculture and Food Agency.
Taiwan exported 6,634 tonnes of rice during the January – June period, more than 20 times the amount for 2007. Under the new restrictions, the only export destinations will be wealthy countries with the ability to pay such as Japan.
According to Yu, the government has also taken measures to increase domestic rice production. Polices of land revitalisation and rice coverage are expected to increase Taiwan’s rice reserves from 2008’s 300,000 tonnes to 400,000 tonnes in 2009.
Shanghai, China: Chiquita Brands International Inc announced on August 26, 2008 it has entered into a joint venture with Haitong Food Group Co Ltd. Together, they will process, sell and market value-added fresh produce in China. This marks Chiquita’s initial entry into an important emerging market.
“Introducing the Chiquita brand to the emerging Chinese value-added produce market is an important strategic step in becoming a global leader in branded, healthy, fresh foods,” said Fernando Aguirre, Chairman and Chief Executive Officer of Chiquita Brands. “Our strategy allows us to capitalise on health and wellness trends globally, and we are excited to bring our healthy food portfolio to this new market. We are very pleased to partner with Haitong, a company known for its high quality products, and are confident that combining our strong brand and marketing capabilities with their local expertise will position us to successfully enter this promising market.”
“Haitong has been in the export-orientated vegetable processing industry for more than 20 years and has actively sought opportunities to provide more fresh and healthy vegetables to Chinese consumers,” said Longhai Chen, Chairman of Haitong Food Group. “The opportunity to work with Chiquita enables our two companies to forge a common vision between East and West. Together, we are aligned to fully explore the significant opportunity to provide healthy foods that leverage Haitong’s strength in processing and agriculture with the strong branding and marketing expertise from Chiquita.”
Under the agreement, Chiquita will provide limited capital investment and have majority ownership of the joint venture company, Zhejiang Chiquita-Haitong Food Company Ltd, which will operate processing operations in Cixi, China. The company will market and sell value-added produce, such as fresh packaged salads, fresh cut fruits and vegetables and fresh chilled beverages in China.
Macau, China: Following Hong
Kong, Macau has eliminated taxes wine and beer. However, taxes on spirits will remain. According to a report by Flexnews, the move will ease trans-shipments between the two Special Administrative Regions (SAR) of Hong Kong and Macau. Although both are Chinese territories, they remain distinct custom geographies separate from Beijing.
US traders have expressed approval for both tax reduction and abolishment of heavy administrative and bureaucratic burdens associated with beer and wine shipments to Macau. It is not a complete removal of taxes: Macau’s Consumption Tax of 10 percent plus MOP 20 (US$2.58) per litre still stands for beverages exceeding 30 percent alcohol content.
A US Government source said: “US exports of wine and beer to Hong Kong and Macau have exploded in the wake of Hong Kong’s tax elimination and the booming casino industry in Macau.”
US beer and wine exports rose 132 percent to US$8 million dollars in 1H 2008 compared to the previous year. For Macau, January-June exports approached US$3 million, an astonishing 1,576 percent increase.
Caracas, Venezuela: According to a report by iht.com, food producers in the country have protested 26 laws
President Hugo Chavez pushed through just before the expiration of his special executive powers. They argue that the new laws are unconstitutional because the legislation limits economic freedom of businesses and consumers.
The laws were published August 4, 2008 makes changes in sectors ranging from the military to small businesses. The bills were passed on the final day of an 18 month period during which lawmakers granted him special legislative powers.
Pablo Baraybar, president of the Venezuelan Food Industry Chamber, said the new laws directly affect consumer choices and businesses’ ability to operate. “These laws increase the authorities’ control and discretionary ability,” he said.
He said businesses are especially concerned about a law declaring that all goods necessary for the production, manufacturing, importation, storage, transport, distribution and commercialization of food, goods and services be of public use.
The law gives Chavez the power to “initiate the expropriation” of goods that do not meet the standard.
Baraybar denied Chavez’s statement that there has been a discussion of the laws in the country.
“We have at no time been consulted,” he said.
Asked if businesses plan to take legal action, Baraybar said that the Food Industry Chamber is first studying the laws’ impact on the food sector. The new laws increase state control over commerce, distribution and publicity. Business owners who violate the new rules can face fines, indefinite closure or up to 10 years in jail.
Chavez has used his legislative powers to nationalise major players in the telecommunications, steel, electricity and cement sectors and take a majority stake in four major oil projects. The socialist president has been granted such powers three times during his nearly 10 years in office.
Washington, US: Economists and leaders from the livestock, restaurant, beverage and food industries have expressed disappointment at the Environmental Protection Agency’s (EPA) refusal for relief from the Renewable Fuel Standard (RFS) which is contributing to record food price inflation, according to a report on prnewswire.com.
Federal law allows EPA to grant a waiver of the RFS ethanol mandate in the case of severe economic harm. On April 25, 2008, Governor Rick Perry of Texas submitted a request to the EPA to reduce the RFS mandate by half - from nine billion to 4.5 billion gallons (39.64 billion to 19.82 billion litres) blended into the national fuel supply in the coming year.
“It is obvious that the Environmental Protection Agency did not consider fully the environmental and economic implications of their decision to deny this waiver from Texas Governor Perry. We are convinced that diverting feed stock into fuel will continue to have adverse effects, and it will have an especially hard impact on the family farmers who raise turkeys, the hard-working men and women who work in turkey processing plants and every American who has to pay for rising food prices. We call upon members of Congress and governors of states where rising food costs are affecting constituents to take a stand on this issue for all Americans,” Joel Brandenberger, President of the National Turkey Federation, said.
Organisations came together on a conference call on August 7, 2008 to express their frustration at EPA’s unwillingness to grant relief from higher food prices. They argue that the RFS, along with tax incentives for blending ethanol into gasoline and tariffs on cheaper, imported ethanol, have distorted the market and helped drive record prices for corn and other grains. This translates into higher prices for food and animal feed, which means consumers pay more for eggs, milk, meat and poultry.
In the US, the index of prices received by farmers for all products increased by 34 percent from January 2006 to May 2008. The index of prices received for feed grains and hay, led by surging corn prices, increased 144 percent over that same period. Wheat acreage has decreased by almost 26 million acres since 1982 due in part to increased government-driven demand for more corn. With less wheat land, prices for the commodity will rise resulting in higher consumer prices for basic food staples such as bread. Meat processors estimate that from 2007 to 2009, under the current RFS mandate, consumers could pay 25 percent more for some pork cuts and nearly 40 percent more for some beef cuts.
Dr. Keith Collins, a former chief economist with the US Department of Agriculture, says if such policies continue, retail food prices could inflate an estimated 23-35 percent above the normal increase in food prices that would occur over two to three years.
Los Angeles, US: At least 73 people who attended a camp in Virginia have fallen ill, and the infection has been confirmed at 22. A California food company is recalling 153,630 pounds (69, 685 kg) of frozen ground beef after an E. coli outbreak incident.
According to a report on by The Los Angeles Times, the meat from Azusa-based S&S Foods was intended for institutional use and foodservice companies, which normally supply restaurants, and was not sold at the retail level.
US Department of Agriculture (USDA) spokeswoman Laura Reiser said that the department did not know how the meat became infected and that it would be following up with S&S Foods about the source of the beef and the company’s food safety measures.
The outbreak began between July 20 and July 26, 2008, and may have continued on, health officials said. Since spring 2007, more than 19,500 tonnes of E. coli-tainted beef have been recalled in more than 30 separate incidents, according to Seattle attorney and food safety expert William D Marler.
The Massachusetts Department of Public Health announced that it was investigating six cases of E. coli that might be linked to a multi-state outbreak involving tainted meat from Nebraska Beef of Omaha. So far, at least 50 people have been sickened.
“Nobody I’ve talked to has any idea why we’re seeing an increase, though everybody has a different theory,” Marler said. “The meat industry basically has no answers. It’s pretty frustrating -- there’ll be some hand-wringing, a bunch of lawsuits and nothing will be done until three months later, when it all happens again.”
Jeff Grohs, S&S Foods’ vice president of business development, said in an e-mailed statement that the company was working “diligently to correct the situation” and to “determine whether illnesses in Virginia are connected to our operations or have some other original source or cause.”
The company’s parent, Idaho-based CTI Foods, has supplied precooked, frozen and fresh food products to major restaurant chains such as Taco Bell and Quiznos. In addition to S&S, CTI also operates facilities in Idaho and Texas.
The E coli strain can cause bloody diarrhoea, dehydration and kidney failure and can lead to serious illness or death. Children, the elderly and people with weak immune systems are most susceptible to food-borne illnesses, according to the USDA.
Separately, Tyson Foods Inc said on Aug 7, 2008 that it was recalling 51,360 pounds of uncooked chicken because of a soy-based allergen that wasn’t named on the label. No connected illnesses have been reported.
Edinburgh, Scotland:According to a report on 7thspace.com, GBP 6 million (US$11.56 million) will be invested in businesses producing, processing and marketing local food. In line with the emerging national food and drink policy, businesses will work closer together, forming local food networks and creating a healthier, more environmentally-friendly supply chain from farm gate to plate.
Cabinet Secretary for Rural Affairs and Environment Richard Lochhead said, “Supporting Scottish food is in our national interest and this funding will help our food businesses grow and flourish. I have been impressed with the innovative, high-quality ideas which have been put forward for funding. “
Capital grants from the National Food Processing, Marketing and Co-operation Scheme have been awarded for a total of GBP 5.99 million to 27 companies. These include:
The National Food Processing, Marketing and Co-operation Scheme is provided under the Scotland Rural Development Programme (SRDP). Up to GBP 10 million per year is available to food processors and producers to help them construct new facilities refurbish premises, purchase new equipment, support marketing efforts including website development and consumer education.
Vermont, US: According to a report by Socialfunds.com, the fast food industry is seeing growing demand for environmental sustainability. A third of children in the US consume one fast food meal in any given day. The industry seems to affect every corner of American life and industry, from health care to agriculture, transportation and marketing.
As a result, shareholders and stakeholders are scrutinising the fast food industry and making demands for more accountability for both the kind of food it serves and how it produces that food. The fast food industry has been making moves to cater to peoples’ desire for healthier food choices. The ban on trans fats in New York City is an example of how fast the industry can change in response to consumer or governmental demands.
Ellen Kennedy, Senior Social Research Analyst at the Calvert Group which specialises in mutual funds that invest in socially and environmentally responsible companies, has identified four areas that fast food companies need to mindful of to attract ‘green’ investors’. They are: the company’s environmental footprint, workplace issues, animal welfare and product safety and marketing to children.
In 1990, Michael Oshman helped to create the Green Restaurant Association (GRA). It is a third party non-profit organisation that works to certify restaurants as green. So far, 256 restaurants have received certification or are in the process to be. “Over the past year we have tripled the amount of restaurants that are certified or are on the way to being certified,” said Oshman.
The GRA recently signed a partnership with Pepsico and Sysco Corp, to help the companies more sustainable. Even with such efforts, certified green restaurants make up only a meagre percentage of US restaurants. With 40 percent of the restaurants using Styrofoam containers, they cannot and will not go green so soon.
Though adoption rates are slow, the industry does realise that it needs to react to changing demands. “The entire restaurant industry is making great strides towards more sustainable operations,” said Stensson of the National Restaurant Association. “In fact, our research shows that one-third of restaurant operators say that they will allocate a larger part of their budge to environmental efforts this year.”
Stensson said, “The move to sustainability is not a trend, it is a new way of doing business. We as an industry will never be completely carbon-neutral or a zero-waste producer, but we are making great progress toward a sustainable future by conserving resources.”
Mumbai, India: According to Piruz Khambatta, Chairman and Managing Director of Rasna Pvt Ltd and Chairman of Confederation of Indian Industry, food processing could do for rural India what information technology did for urban India.
As reported by Commodity Online, food processors must focus on improving technology to ensure health food and food supplements to meet the changing consumer demands globally. Production efficiency in the food industry could be achieved by incorporating advanced technologies that lower unit cost and improve overall product quality.
“It is high time that India applied better technologies to prolong the shelf life of vegetables and fruits and improve the packaging machinery and cold storage system to facilitate better processing of our agricultural products, “Khambatta said. The food processing industries should make major strides from traditional to modern technologies for processing agricultural products. With globalisation of economy the country is now obliged to meet international safety and quality standards to survive in the global market. The future development of the food processing industries will depend on technological progress and energy efficiency.
New York City, US: According to a report on the Wall Street Journal, consumers are likely to absorb costs when food manufacturing giants respond to rising food prices.
At the bottom of the food production chain, farmers are making the largest cuts to their livestock in decades. What this means: meat at the supermarkets will likely cost more in the coming years. In response, middlemen are trying to shorten supply contracts to 90 days instead of the usual year so they can pass on rising costs more quickly. Manufacturers are also reacting, downsizing contents of their packages.
Everyone’s adjusting,” Brenda C Barnes, chief executive of Sara Lee Corp, said on August 7, 2008 after the company reported a US$695 million loss for the quarter ended June 28. That included an US$850 million after-tax charge, mostly for writing down the value of bakery businesses hit by soaring wheat costs.
The Illinois-based Sara Lee Corp which makes foods ranging from bread to hot dogs is whittling its products line-ups and cutting the amount of meat in its Hillshire Farm deli Packages, among other things. The company expects its commodity costs to climb an additional US$500 million in its fiscal year ending June 2009. This will be following a US$350 million in fiscal 2008.
Nestle SA, which reported August 7, 2008 strong profits for the first half of the year has already increased prices on thousands of products in recent months in a move to offset some of its rising costs.
Grain demand has outpaced supply in much of this decade, causing additional strain on availability. In 2006, corn went for below US$3 per bushel. In the next two years, it would go as high as US$7 per bushel. Similarly, soy and wheat also saw sharp spikes in price.
Add rising affluence and bio-fuels to the fray. Economic development is giving hundreds of millions of people the means to afford better diets, including grain-fed meat. High oil prices have also forced governments to encourage the use of alternative fuels, leading to government mandates and grants for farmers to divert some of their harvests to the more lucrative trade. US cornderived ethanol makers forecast that they will consume one-third of the corn growing across the US – doubling their numbers from two years ago.
Many food processors are seeing a downturn because they are facing difficulty passing along their costs. Pork giant Smithfield Foods Inc has slipped 10 percent since August 2006 while Tyson Foods Inc has lost 24 percent of its stock value over the past year.
But all is not gloom, as food companies with strong brands are finding it easier to pass on costs to consumers. Stock prices of cereal maker Kellogg Co has been gaining steadily. It is now up 11 percent since grain prices started to soar.
San Francisco, US: According to a report on the San Francisco Chronicle, the industry should stop resisting implementing these changes. The food industry must embrace electronicrecording and support an effective system for tracing contaminated food to source, according to a law maker investigating food safety.
“It is my hope that the food industry will drop its opposition to these common-sense safeguards and move forward with implementation,” said Bart Stupak, Chairman of the House Energy and Commerce Committee’s investigative subcommittee.
Stupak has been conducting investigations since January 2007 into the Food and Drug Administration’s ability to protect the nation’s food and drug supply. “This salmonella outbreak in July has shown us that it is necessary to have electronic record-keeping and trace-back systems in order to quickly detect the source of food-borne illnesses,” Stupak said.
The food industry has previously resisted such plans, complaining that the paperwork would be too costly and burdensome. The industry also warned that the requirements would retard the availability of consumers’ favourite foods – especially fresh produce. The White House also refused to support a plan that would make the industry maintain electronic tracking records.
The chairman of the Energy and Commerce Committee, John Dingell of Michigan, has said the industry has brought on its own troubles. “The food industry is learning the hard way that having a strong FDA and commonsense regulation makes good financial sense,” he said.
The apparent but unintended consequences of the lobbying success: a paper record-keeping system that has slowed investigators, with estimated business losses of US$250 million. Nearly 1,300 people in 43 states, as well as inthe District of Columbia and Canada, have been sickened by salmonella since April.
Under pressure in 2003 and 2004, the White House agreed to dilute record-keeping proposals by FDA safety experts. “If the FDA had been given the resources and authority years ago that it requested to solve these kinds of problems, I think we would have solved this already,” said William Hubbard, a former FDA associate commissioner.
Tommy Thompson, who was health secretary during the industry’s lobbying campaign, acknowledged that a more robust food-tracking system could have helped stem the current illnesses and business losses.
“We went in with the larger package but knew we had to compromise,” Thompson said. “I was satisfied with this being the first step... We could have ended up with nothing. If we had more, would it help the situation now? Yes.”
According to government records, business groups met at least 10 times with the White House between March 2003 and March 2004 as the FDA regulations were under debate. Food industry lobbyists successfully blunted proposals using arguments familiar in other regulatory debates: The government’s plans would saddle business with unnecessary and costly regulations. The proposed rules “were significantly watered down before they became final,” said Caroline Smith DeWaal, food safety director at the Washington-based Centre for Science in the Public Interest.
Vermont, US: According to a report by the Concord Monitor, the downside of food convenience has become more apparent. Processed and fast foods have contributed to the ‘super sizing’ of a country used to 10 minute dinners.
In a Vermont Law School Speech, environmentalist Anna Lappé raised a tough question: Is the increasingly corporate food industry responsible for global warming? To Lappé, the answer is a definite ‘Yes.’
Lappé says that the food industry contributes about one third of the gases responsible for global warming. Trucks and cargo ships used to transport food spew carbon dioxide and monoxide as they go. And rather than feeding beefstock with the grass their digestive systems were designed for, cows in beef factories are fed processed feed which causes them to release copious amounts of methane gas.
According to Lappé, the livestock industry alone generates 20 percent of the world’s greenhouse gases. The answer won’t come from government officials alone. As summer and fall bring a bumper crop of opportunities at farm stands and markets and via community supported agricultural agreements, diners would do well to think about buying wholesome food produced not by a distant agribusiness.
Washington, US: The mandatory country-of-origin labelling (COOL) is scheduled to take effect on September 30, 2008. The US Department of Agriculture (USDA) says that imported beef is the product that could see the most impact from the introduction of COOL.
According to a report by farmonline. com, many US consumer and industry processors are wondering how the introduction of COOL will impact retailers who must implement the rules. Top of everyone’s minds: how it will affect the consumer.
USDA Agricultural Marketing Service Administrator Lloyd Day said, “It’s really going to have most of an impact in the meat sector, because a lot of the fruits and vegetables are already labelled ‘product of Mexico’ or ‘product of Chile’.”
“Fruit and vegetable customers are used to buying foreign produce. With beef however, the American consumer is going to have to make a choice. ” Day said, “So they want a purely American steak or do they want a steak that may have come from an animal that was born in Canada or Mexico, will it have an impact on their decision making?”
According to Day, other segments of the US food market will see less noticeable impact. “I don’t think they’re going to see a lot of changes actually,” said Day.
Abu Dhabi, UAE: As reported by The National, all food industry workers in the emirates were to undergo mandatory training from August 9, 2008. This is part of the measures introduced by the Abu Dhabi Food
Control Authority.
The courses were to commence on the same day and includes workers in kitchens, cafes, restaurants and many other locations. The certification programme is in tandem with steps taken by the Food Control Authority in recent months to ensure that food outlets and everyone involved in the food industry observe the highest hygiene standards. Companies that resist this new ruling risk being fined, although no sums are yet disclosed.
According to industry insiders, the program is an evitable consequence of Abu Dhabi’s development into a global city. The courses will last a minimum of six hours, followed by an examination held at Al Hosn University, either in Abu Dhabi or Al Ain.
Workers can expect to be taught how to handle food correctly. The Food Control Authority aims for everyone in the industry to be trained and certified by 2012. The courses are run by three Abu Dhabi companies and will be conducted in a variety of languages, including English and Arabic.
In addition, tough new laws added in May 2008 give the jurisdiction to mete out heavy punishments should a company be found guilty of serving unhygienic food or prepare food in unsatisfactory conditions.
There was previously no certification programme encompassing the entire food industry in the capital. Instead, individual licenses and certificates are issued to each sector of the industry. A restaurant or food service or food shop in Abu Dhabi cannot open for business without a certificate from the Food Control Authority. Other documentation issued by the authority includes certifications for export, food transport vehicles, foodstuff disposal and slaughterhouse management. These papers will still be issued in conjunction with the new certificates.
California, US: According to a report on the ocregister.com, a chemicalindustry backed lobbying group has embarked on a campaign to convince Californians that Bisphnol-A (BPA), a potentially dangerous compound found in baby foods and canned goods is safe.
State officials and scientists alike say that the advertisements are misleading and designed to scare consumers into keeping products that could harm children on the market. The campaign is paid for by industry trade group the American Chemistry Council. It urges voters to voice opposition to a Senate bill that would outlaw BPA in products made for young children.
So far, dozens of independent scientific studies have alleged that BPA could cause everything from cancer to reproductive and behavioural problems, although others have found products containing BPA to be safe.
Mailers and ads appearing in newspapers depict an empty cart in the desert and warn that if BPA is banned, canned foods and beverages may be prone to spoilage or contamination. According to the ad, food products may disappear from the shelves, despite ‘rigorous, scientific reviews’ concluding that BPA is safe. ‘Maybe that’s why no other state in the country bans BPA,’ the advertisement continues to say.
Experts have rejected the advertisements’ claims. “The bill wouldn’t regulate the majority of food found on grocery store shelves. It only restricts BPA in products for children ages three and younger, such as formula cans, sippy cups, baby bottles and glass jars of baby food,” said Tracy Fairchild, spokeswoman for the bill’s sponsor Senator Carole Migden of San Francisco.
But representatives for the chemical council said that the bill’s language was vague and could even extend to all canned foods because three-year olds often eat the same foods as adults. “We do believe that the bill could potentially affect a wide range of products,” said Steve Hentges, Director of ACC’s Polycarbonate/BPA Global Group, “And it could extend quite a bit beyond that to containers and serving dishes – anything used to feed a child.”
BPA is the heart of a multi-billion dollar industry and is commonly used as a building block of plastic products such as water and baby bottles and coatings that line food containers. According to industry estimates, about GBP 7 billion (3.13 million tonnes) of the compound is manufactured each year.
The chemical’s potential danger to human health was first identified more than a decade ago by Frederick vom Saal, a reproductive scientist at the University of Missouri at Columbia. Since then, more than 100 studies into the compound’s effects have been conducted by university and government scientists.
Ottawa, Canada: According to Canwest News Service, the Conservative government is trying to convince the public that a controversial decision to scrap a food-labelling approvals system. It is saying that the new proposals help companies “take the lead in fulfilling their responsibility for consumer protection”.
The decision to abolish the Canadian Food Inspection Agency (CFIA) programme that requires companies to get all labels approved for meat and processed fruit and vegetable products before they got to market was made last November.
Robert de Valk, a food-regulation consultant specialising in labelling, says the reasoning does not hold up. After reviewing details of the plan supported by Treasury Board, he said the decision to terminate the pre-market label approval for domestic and imported products is the “most dangerous part” because it undermines consumer confidence.
The Food Processors of Canada says the decision to cut the program is like “playing Russian roulette with the Canadian public.” President Christopher Kyte said the label review unit is composed of about eight people who play effoa vital role in food safety.
“They prevent mislabelling and unsafe products from ending up on store shelves. They catch things like illegal chemicals and misleading health claims. What we want to do is prevent these products from reaching the marketplace. To chase down these products in grocery stores doesn’t seem like a good use of our inspectors.”
Authorities say that scrapping the label registration programme is expected to save $87,000 (US$ 82,720) annually and “it is in-line with the other efforts to refocus the available resources to ensure greater level of compliance at distribution or retail level for the investments made”.
“It doesn’t make sense to do away with pre-market review to save $87,000,” De Valk said. He argues that is would be more prudent to employ a handful of people to ensure that labels are accurate instead of asking hundreds of inspectors to review labels on store shelves.
Agriculture minister Gerry Ritz said August 22, 2008 that the government has already boosted support to CFIA by putting $113 million over existing budgeting into food and product safety and hiring 200 new inspectors.
Moscow, Russia: Pepsico and the Pepsi Bottling Group (PBG) have announced August 28, 2008 that they have completed a joint acquisition of 75.33 percent of Russia’s leading branded juice company JSC Lebedyansky. Pepsico and PBG have said they will initiate a mandatory offer for the remaining shares of Lebedyansky in accordance with Russian law.
Lebedyansky is the sixth-largest manufacture of juice globally and the largest in Russia. It has an estimated domestic market share of around 30 percent and 2007 revenues of approximately US$800 million from its juice business.
“We are looking forward to building Lebedansky’s portfolio of strong, popular brands in one of the world’s fastest juice markets,” said Michael White, CEO and Vice Chairman of Pepsico. “It’s yet another way we’re transforming our product line-up to include more beverages and foods that address the growing consumer interest in health and wellness.”
Additional terms of the agreement were not disclosed. However, the US$1.4 billion Pepsico and PBG paid for a stake in Lebedyansky implies a total enterprise value of around US$2 billion, including debt s and spin-of f related adjustments. This estimate does not take into account Lebandyansky’s baby food and mineral water businesses.
London, UK: Diageo has cut its 2009 forecasts and gave warning that the current economic climate would lead to the middle classes drinking at home instead of bars and pubs. According to a report by Timesonline, Diageo is the world’s largest producer of alcoholic drinks.
Paul Walsh, the Chief Executive of Diageo said he was still relatively optimistic about the next few years, even though he acknowledged that slowing economic growth would be pose a big challenge. He said: “We are not seeing the middle classes move away from drink. The middle consumer group is under pressure but what we’re seeing there is a migration from the on-premise [pubs and bars] to the off-premise. For the average person of 35 with a young family and household income of less than GBP 40,000 a year, a night out at the pub these days is expensive. We have to capture that off-premise occasion.”
In the next year these consumers will be affected by planned price increases of Diageo’s key brands, including Guinness, Smirnoff and Johnnie Walker, as margins are hit by an average increase of three percent in the price of commodities such as oil and grain.
London,UK: Tony Baines, managing director of buying at the Germanowned chain of supermarkets Aldi has said that he expects the value range to be launched by Tesco sometime in September 2008 to be a flop. According to The Times, Baines said, “They will be able to compete with us on price but not quality. For that reason I don’t think it will work.”
He added: “You’d really expect a company like Tesco to have its own agenda; it does feel to me that they are really struggling to hold on to their customers. We are flying and believe we’re taking more customers from Tesco than anyone else. But surely they must have something better to do than worry about a company as small as us?”
It has been said that Tesco has been working for months on a new range of products to counter the growth of discounters such as Aldi, Lidl and Netto. Tesco’s new range is expected to be even cheaper than its own brand of Tesco value range products.
Sales and Aldi and Lidl have been growing at a faster rate than their larger counterparts for much of the year as customers search for bargains amidst a inflationary climate. According to figures from ACNielsen, Aldi’s market share in the UK has climbed to a record 2.2 percent, 37 percent up on the same month in 2007. It claims that its 430 stores are serving nearly a million more customers each week, compared to same period figures in 2007. Tesco’s market share has remained the same at 28.2 percent.
New Jersey, US: Campbell Soup Company has announced the appointment of B Craig Owens as Senior Vice President and Chief Financial Officer (CFO) and Chief Administrative Officer (CAO) on August 28, 2008. Owens, 53, will report to Campbell President and Chief Executive Officer, Douglas R. Conant. His appointment will be effective October 6, 2008.
As CFO, Owens will have direct management responsibility for Campbell’s Controller’s, Corporate Development, Investor Relations, Corporate Audit, Treasury and Tax departments. He succeeds Robert Schiffner, who stepped down as CFO on August 1, 2008. Schiffner will retire from the company on January 31, 2009, and will assist in Owens’ transition.
Owens will join Campbell from the Delhaize Group, where he has been Executive Vice President and CFO since 2001.
Conant said, “We are very excited to have Craig Owens join the Campbell team. His strong financial acumen and global food and beverage industry experience make him an ideal choice to be our Chief Financial Officer. We are also very pleased to be able to draw on Craig’s extensive general management expertise, including his experience managing supply chain and information technology functions, from nearly two decades with Coca-Cola.”
SOFI Awards 2008 (Part I):
Distinctive And Delightful
In a two-part series, we feature the best of the best from the US. These gold award specialty food winners are purveyors of fancy foods the evidence of the country’s resilience.
The annual National Association for the Specialty Food Trade’s (NASFT) SOFI Awards recognise outstanding food and beverage products in 32 categories of specialty food. SOFI stands for Specialty Outstanding Food Innovation. Winners are selected by a national panel of specialty food industry experts and conferred at the Summer Fancy Food Show in New York City.
This year’s contest was the most competitive yet, with a record of 2,191 entries received. The field was narrowed to 150 silver finalists last spring. Finally, the gold winners were handpicked by a group of more than 250 retailers and restaurant buyers in a judging event at the Fancy Food Show. This event is also owned and operated by the NASFT. Companies must be members of the NASFT to enter a product for competition.
“The winners of this year’s SOFI awards are evidence that our members continue to create distinctive products that delight consumers,” said Ann Daw, president of the NASFT. “That is part of why our industry remains resilient in this challenging economy,” she added.
Outstanding Appetiser, Antipasto, Salsa or DipDark cherries are paired with fruity merlot and complex hints of raspberry, scented geranium, galangal root, bergamot, black pepper, cinnamon, vanilla and bay. It serves well with pork, duck, game hens, quail, beef or lamb, with cheese, or on ice cream. Not pitted, ingredients include whole cherries, wine, sugar, vinegar, corn syrup, herbs and spices.
Outstanding CondimentAuthentic South Indian cuisines are made easy with this range from the gourmet kitchen of Ann Varkey. The food manufacturer’s products are made in federally inspected USDA plants in North Carolina and marketed to specialty and gourmet stores in US markets under the brand name Kerala Curry. They are 100 percent natural and contain no gluten, MSG, artificial colours, preservatives, fillers, modified food starch or corn syrup.
Outstanding Cold BeverageGingernize is a 100 percent natural ginger-based juice. The name is an abbreviation of “Ginger/ Energize”. Ginger’s rhizome contains anti-oxidant vitamins, minerals, and volatile oils and pungent compounds in a well-balanced proportion that has energising properties. The juice is gently pasteurised so to maintain the natural richness in delicate healthy nutrients. Refrigeration is required.
Outstanding ChocolateAt just 16 and 17 years old, Brandini Toffee founders Leah Post and Brandon ‘Brandini’ Weimer are the youngest entrepreneurs to receive the Gold SOFI Award. They use rich, dark chocolate instead of milk chocolate and roast their own almonds. The final touch lies in the recipe which was from Don Calendar of Marie Calendar’s fame after trying an early version.
Outstanding USDA-Approved Organic ProductThis fruit sorbetto is made without preservatives, additives or extracts. The frozen treats are cholesterol free and completely vegan. Each fruit sorbetto has a slightly different texture because of the real fruits used. In fact, each pint contains at least 70 percent real fruit and fruit juice.
Outstanding Hot BeverageThis all-natural mix contains only the finest Belgian chocolate, Dutch cocoa and pure white cane sugar. Retail packs of 16-ounce net weight come in elegant, decorative tins.
Outstanding OilStella Cadente’s Basil Oil is made by crushing fresh basil and mission olives together at the olive mill, and the result is a pesto style showstopper. The oil has a Basil aroma and the palate experiences a persistent fruity Basil flavour with a gentle hint of pepper on the finish. The maker notes that the basil is ‘crushed’ using traditional methods; not ‘infused’ like most on the market.
Outstanding VinegarAged about eight years, this Balsamic vinegar is unusually dense with a pleasantly sweet aftertaste. Rich and thick to the palate, it is ideal for barbecues, cheeses, fruit, or on its
own, said the California-based specialty food importer.
Outstanding Salad DressingThis intensely flavoured dressing has a mellow tang of the rich balsamic vinegar that blends with sweet ripe figs to make a robust dressing or marinade. Other ingredients include canola oil, orange juice concentrate, salt, dried onion, black pepper, vanilla extract, and Xanthan gum.
Outstanding Dessert or Dessert ToppingThe Salty Butterscotch Dessert Sauce has just the right amount of fleur de sel to balance the sweetness. The product also scores high on convenience.
Outstanding Jam, Preserve, Honey or Nut ButterPure cane sugar, egg whites, egg yolks, unsalted butter (from milk), lemon juice, shredded lemon peel (lemon peel, water, citric acid), soy lecithin, sodium benzoate, and kosher salt make up this product. Light, creamy and bursting with bright lemon flavour, this fills tiny tartlets perfectly.
Outstanding Food GiftSweet Basics contains one can each of organic allspice, organic anise seed, organic cardamom, organic Korintje cinnamon, organic cloves and organic nutmeg. Each spice can contains 12 one-teaspoon packets. These sweet spices are ideal for baking sweets or blending chai.
Ambrosial Granola: Fruity Organics
Mediterranean diet inspired, Ambrosial Granola's organic granolas and muesli are all fruitful, nutty, rich in whole grains and fibre, and low in fat and sugar. Nutritious goodness includes Venetian Vineyard Omega-3 Plus. The Grecian Grove Antioxidant Blend is sweet-scented, antioxidant-laden and fruitful. Another, the Athenian Harvest Muesli Fibre Boost is fibre-loaded with Goji berries.
Annie's Naturals: Dress In Health
Annie's Naturals introduces three new certified organic dressings. The Creamy Asiago Cheese Dressing captures the creamy, nutty flavour of Asiago with basil and parsley. The Lite Cucumber Yogurt Dressing is a cool Raita-style dressing or dip. The Pomegranate Vinaigrette is a fruity-sweet and tangy vinaigrette made from the ruby-seeds of the super-fruit, pomegranate.
Great Eastern Sun: Value For Money
This line is produced from a complete line of certified organic garlic and ginger in jars. The manufacturer describes the range as “low priced, high quality, ready to use - convenience without sacrificing quality”.
Mirab: Healthy Meat Snack
Mirab now offers the organic Beef Jerky in a 1.5oz bag. The manufacturer also offers this product for private labelling. It is available in original and teriyaki versions made from organic spices and natural smoke flavours.
Honeysuckle White: Guilt-Free Luxury
Bursting with flavour, Honeysuckle White’s Turkey Bratwurst has only nine grammes of fat. With sauerkraut and potato, it makes a complete meal for the health-conscious.
5 Star: Golden Nuggets
Easy to prepare, 5 Star’s Golden Tempura Crispy Chicken Nuggets is a fast but nutritious snack for those on the go. Combined with baked beans and salad, it makes for a filling lunch. Processed and distributed by Pertanian Pertiwi Sdn Bhd, the golden nuggets are made from hormone and antibiotic-free chicken meat.
MySalai: All Natural With A Kick
Malaysian-based My Salai Sdn Bhd’s chicken barbeque meat slices marketed under the brand ‘Salai’ is made from 100 percent natural ingredients. Containing no artificial flavouring, preservatives or MSG (Monosodium Glutamate), the barbequed meat is enhanced with chilli, giving it that extra ‘kick’.
Ramly: A Handy Snack
Coated chicken drummets from Ramly Food Processing Sdn Bhd is a handy snack for active children. The coating, made from a mixture of wheat flour, corn flour, spices and salt gives the chicken wing portions added crunch. The drummets must be kept frozen at -18 º C.
Robert Rothschild Farm: Simple Elegance
Ground Black Peppercorn Crackers from Robert Rothschild farms are all natural and kosher. They come in 4oz (113 gm) boxes and are available in 3 other flavours: Authentic Natural Crackers with Sea Salt, Rosemary & Basil Crackers and Stone Ground Wheat Crackers with Sea Salt.
Lundberg: Brown is Tasty
Made from fine whole grain brown rice, Lundberg’s Organic Brown Rice Cakes are milled and immediately popped into rice cakes on their farm. Lightly salted with sea salt, each serving size of 1 cake gives you 4 percent of the recommended daily fiber intake.
Nature Valley: Whole Grain Bonanza
From one of the pioneering manufacturers of granola bars, Nature Valley, Oats ‘n’ Honey cereal. Contain a whole plethora of whole grains such as oats, wheat, corn, wheat bran and corn bran. A filling and healthy snack, each recommended 58 gm serving gives 4 gm of protein and 4 gm of fiber.
Nestle: Bite Sized Indulgence
Mini sized chocolatey frozen treats with an ice cream center and a chocolate shell, Nestle’s Dibs are convenient snacks for the whole family. They are available in three flavours: Chocolate, Rolo and Vanilla and come in two different packages sizes. Choose between tubs of 26 or 60 pieces.
London: Rolling Sweet Times
Following the success of its Swiss Rolls, the Kuala Lumpurlisted company offers its London Rolls in six flavours: chocolate, coconut, blueberry, strawberry, ‘choco roll’ and milk. They come in packs of 48 or 24 boxes.
Kinos Food Industries: Gold Standard
Made with a higher egg content, Hiro Gold Custard Cake is a vanilla sponge cake with a creamy custard filling. With a soft texture, it is suitable for adults and children alike. It has a long shelf life of 12 months and is exported to the Asia Pacific and South East Asian regions.
Crispy Green: High Tech Snack
Crispy Green’s newest additions to its freeze-dried fruit selection, Crispy Pear snacks are made from 100 percent Asian Pears. The natural snacks contain no added sugar, preservatives, colours, flavours, fat or cholesterol. Each serving of Crispy Pears contain approximately half a cup of Asian pears and have less than 39 calories.
Think Products: Healthy Five
Giving the consumer five cups of fruit and vegetables with every Think5 bar, it is a choice for the health-conscious. The Think5 bar contains spinach, watercress and a blend of broccoli, carrots and other vegetables. The snack bar comes in two flavours: red berry and chocolate red berry.
Crum Creek: Soy Nutty So Good
Crum Creek’s Soy Nuts are toasted snacks made of soy. 100 percent certified organic, its manufacturers claim that it contains 60 percent less fat than peanuts. A good choice for those watching their weight, it is also cholesterol free and high in fiber content.
Dannon: Lighter, Fitter, Better
Dannon’s new Light & Fit 0% plus yoghurt is a low-calorie snack that is high in nutrients. Each cup provides 10 percent of the recommended daily allowance of calcium, vitamin D and vitamin B2 and six other essential nutrients. The product is available in packs of four, eight and twelve. Every cup contains 60 calories.
Eatsmart: Health Is Chip
These trans-fat free potato crisps have 30 percent less fat than their regular counterparts. It manufacturer claims that its chips gives the consumer 3 gm of fiber per serving. They come in three different flavours: Lightly Salted, French Onion or Sweet Barbeque.
Hillside Candy: Apple Of My Eye
A new product from American manufacturer Hillside Candy, the GoNaturally Organic Hard Candies contain no preservatives, corn syrup or hydrogenated oils. The hard candies are available in apple and pomegranate flavours.
Master Chef Jochen Kern:
Passion and Purpose
With passion and purpose, Master Chef Jochen Kern oversees the running of Kuala Lumpur’s Equatorial Hotel’s F&B outlets and signature restaurants with an expert eye. Recently awarded the WACS Global Master Chef title, he believes chefs should be more professional than other professionals! Managing the bottom line is as mportant as creating good food.
By Azrina Abdul Karim
Jochen Kern, Executive Chef at Hotel Equatorial Kuala Lumpur says, “I’m proud to be a chef”.
The Master of the Culinary Trade, who began his career at the age of 15, was recently conferred the honourable degree of ‘WACS Global Master Chef’ – one of the highest honours a professional chef can hope to achieve – at the World Association of Chef’s Societies (WACS) Congress held in Dubai in May. Having passed rigid requirements and possessing the relevant experience and qualifications, including certifying other chefs, the Germanborn Kern was the only representative from Malaysia out of 249 chefs from around the globe honoured with the title. A ‘larger than life’ character, Chef Kern is passionate about his profession. “Chefs,” he says, “are more professional than other professionals!”
His ‘Master of Trade’ title, obtained in 1977, gives Kern the certification to be a master instructor and examiner, testing and certifying chefs and cooks for various culinary degrees and competitions, including the International Salon Gastronomique and Penang Chefs Challenge. Kern, who has trained chefs all over the world including India, Hong Kong, Singapore and Malaysia says, “We need industry people who can stay in the industry and rise in the industry.”
A professional chef, he explains, must be willing to take on responsibilities. He must also enjoy meeting people and socializing, says the well-travelled chef who had recently celebrated the 20th year anniversary of ‘Cordon Noir Gourmet’, the non-financial gastronomic club for fine food connoisseurs he established in Beijing, China. A chef must inspire trust. In the food business, a chef’s reputation is very important.
Since he joined Equatorial in July 2006, Kern has been “changing the menu non-stop”. Malaysian diners, he explains, is no different from other diners all over the world. “They’re always looking for something exciting, something new,” he adds. As Executive Chef, he oversees or like he says, “takes care”, of all the restaurants within the hotel, including signature restaurants like Kampachi (Japanese), Golden Phoenix (Chinese) and Chalet (Swiss). “If they have a problem, I move in.”
An Executive Chef is also responsible for pulling in the crowd – even during an economic slump! Kern recalls his surprise when diners began to shy away from the Equatorial a day after the Malaysian government announced a sudden rise in petrol prices in June. “People get so over-excited,” he says. Fortunately, after the initial shock wore off, they began to return. Malaysians, after all, love food too much to abstain themselves!
During an economic slowdown, however, chefs have to be more creative in wooing customers who may be reluctant to spend too much on eating out; especially at luxury restaurants. Therefore, when they do decide to spend, they must receive value for money. In this regard, Kern refuses to compromise on quality of the food, preferring to cut costs in other areas. Planning and marketing events are also part and parcel of an executive chef’s responsibility. How do you keep guests coming back for more? “To be a professional chef, you have to be a professional salesman,” he says. “The whole purpose of my employment,” he adds firmly, “is to make a profit – nothing else.” A chef, he explains, has to be a “revenue mover” and he has to take care of the bottom line. “All my cooks have to be businessmen,” he emphasises.
Chef Kern holds regular discussions with the purchasing manager, whom he describes as a “good guy”. A close collaboration between the Executive Chef and the purchasing department is important so that the hotel achieves success and delivers the best to its guests while maintaining its profit margins. Kern says, “I try to avoid dealing with suppliers or having any personal contact with them. I let the purchasing department find all the things we need.”
The purchasing manager has to find a balance between quality, cost and supply. Kern, however, strongly believes in a fair bargain. Therefore, he is not averse to stepping in when the situation demands it. “Business is business,” he says. He will travel up and down the country to look for the best produce – such as eels in Malacca – at a good price. Getting the best price, he says, is like “magic”! Kern also makes sure that he attends trade shows – as often as he can – to network, meet new suppliers, touch base with existing suppliers and assess new products and services.
In terms of volume and quality, says Kern, the Equatorial Hotel is the “number one caterer in town”. There are so many events and festivals to plan for. The hotel’s catering services is much sought after because food quality is maintained. As the Equatorial in not as huge as a multi-national corporation, decision-making is fast, says Kern. Most of his requests, including the purchase of a freezer truck, normally get the go ahead without a lot of red tape. “If I can bring in the business,” he adds, “I get it!”
In catering, he says, logistics management is important. Kern has had experience catering a five-day event for 5000 pax assisted by a team of eight chefs. “The logistics was so clear, we didn’t have any problems!” Planning, however, must be very detailed. A client must be clear about his budget and number of attendees. Costs will depend on location, transportation and the number of waiters needed; whether it is cocktail, lunch or dinner and so on. If held outside, will a generator and access to water be available? Are there any special requests – a band, clowns? Whatever the client wants, the client will get!
The unpredictability and varied requirements of catering keeps him excited. “The energy is electric!,” Kern exclaims. After calculating the costs, a proposal will be sent to the client and if accepted, they will commence with the food tasting.
Kern starts his day early in the morning by checking all the outlets and the buffet table, greeting other employees, motivating his chefs; then he signs the purchase orders and conducts the first meeting of the day with hotel staff to discuss previous day’s sales statistics, plans for events and so on. Later in the kitchen, Kern will conduct another meeting with his chefs to prepare for the day’s functions.
Every day, Kern conducts a 40-minute class for his assistants. In fact, he says, 60 percent of their day is considered an education in itself. Apart from the necessary qualifications, a chef must have love for the profession. Only then, says Kern, will he become a good chef.
A twelve-hour day is normal for an Executive Chef. This gruelling schedule does not bother him. He has been doing this for more than forty years. He enjoys it. “I don’t want to retire,” he says.
Retirement is not in his vocabulary and he repeats forcefully, “I don’t want to retire, OK?”
Wales Exporters (Part II of II):
Banking On Nature’s Best
Wales has built a deserving experience for clean, safe food. Welsh companies have forged a niche by capitalising on its image as producer of premium food and products. Food Export International examines the Welsh meat market and speaks to two Welsh companies on how they have made a name for themselves by marketing only the best.
By Ong Hong Tat
The Welsh landscape is dotted with rolling moorlands, craggy mountains and a long coastline. Its people have traditionally made a living for themselves working the land they inhabit. In turn, their dishes reflected their toil: Welsh food is known to be hearty and filling.
What a long way they have come. Today, lamb is one of Wales’ most famous exports. Not long ago, lamb would be an unlikely choice to be Wales’ face to the world as pork was the favoured ingredient. Wales has evolved to be a strong exporter of meat. According to statistics from Meat Promotion Wales (Hybu Cig Cymru or HCC), only four percent of red meat produced in Wales is consumed in the territory.
Top 5 Sheep Meat Export Destinations 06/07
Top five importers for UK sheep meat in 2007 are: France – 50,100 tonnes, Belgium/Luxembourg – 5,700 tons, Italy – 3,000 tonnes, Germany – 3,000 tonnes and Ireland – 3,600 tonnes. Notably, France imported 11,400 tonnes less (18.53 percent decrease) of UK sheep meat in 2006 as compared to 2007. As France’s imports of UK sheep meat far outstrip the rest, a drop of 11,400 tonnes translates to a 16.7 percent decrease in its total export volume. UK producers would do well to woo the French customers back.
UK sheep meat exports to its top five destinations fell by 21.6 percent in 2007 compared to 2006. All of its export destinations took in less UK sheep meat than the previous year with the exception of Ireland.
These bleaker figures in 06/07 seemed to have reversed in 2008. According to data published by the HCC, fresh and frozen sheep meat exports for January – April 2008 increased eight percent compared to the same period last year.
UK remains the top exporter to the French. France’s domestic supply of mutton fell by eight percent in the first four months of 2008 because of lower production and live imports. Sheep slaughtering in France fell four percent while total French production of sheep meat headed down s i x percent. These factors ramped up French demand for UK sheep
meat exports.
French imports of UK’s sheep meat accounted for 70 percent of UK output. Exporting 19,000 tons to France from January – April, 2008, UK sheep meat exports were up three percent compared to the same period of 2007.
While mutton exports to Ireland doubled to roughly 2,800 tones, shipments to Belgium fell 15 percent to 2,000 tonnes.
Top 5 UK Beef Export Destinations 06/07
While there are no available statistics for beef exports in 2008, UK’s top five export destinations took in 17,500 tonnes more beef in 2007. In May 2006, UK beef exports resumed when the ban caused by BSE was lifted. This bodes well for UK beef exporters after the discovery of BSE (commonly known as Mad Cow Disease) peaked in 1992. After nearly a two decade hiatus, UK beef exporters have a lot to do to convince the world that its beef is safe for consumption.
Apart from Germany and Italy, which had reduced their imports of UK beef, Netherlands, the Irish Republic and France have all increased their acceptance of UK beef: Netherlands – 6,000 tonne increase, Irish Republic – 9,400 tonnes increase and France – 2,900 tonnes increase.
Consumption and Expenditure in Wales, 2006
According to statistics released by HCC, the average Welsh spent GBP 254.8 (US$454.32) on meat and meat products, consuming 54.8 kg in 2006. Poultry is a popular meat type in Wales, it accounts for the bulk of Welsh consumption by weight. An average person consumed 13 kg of poultry that year, spending GBP 47.32. It accounts for just shy of 19 percent of all value of meat consumed in the territory.
Raw poultry took precedence over cooked poultry. The Welsh consumed 10.3 kg of raw poultry, far more than the 2.7 kg of cooked poultry purchased. Not surprisingly, cooked poultry comes at a premium price of GBP 5/kg compared to GBP3.28/kg for poultry in uncooked form.
It is the same with bacon and ham. Uncooked bacon and ham costs GBP 5.5/kg. In cooked form it is some 40.18 percent more expensive, averaging GBP7.7/kg.
Welsh Food Companies:
A Model Of Premium Excellence
Coming from an unspoiled landscape that produces the best, Welsh food companies have leveraged on its strengths of hearty, nutritious foods to forge a space for themselves in the world food market. The Anglesey Sea Salt Co and The GoodCarb Food Co are both examples of how Welsh food enterprises can succeed amidst intense competition.
The Anglesey Sea Salt Co started off small and unassuming, tracing its origins to the home kitchen. Today, the taste and versatility of this Welsh sea salt has won the favour of chefs and epicures globally.
In 1998, the company started by supplying its sea salt to local butchers on the Isle of Anglesey. From the very beginning we were determined to be a quality business. We are a small company but we count large companies among our customers. In the UK, we supply Marks and Spencer, Waitrose and Harvey Nichols. Outside of the UK, we have distributors in 22 countries. Additionally a significant number of the world’s top 50 restaurants also use our products, “said Alison Lea-Wilson, Director of The Anglesey Sea Salt Co.
Last year, Anglesey Sea Salt joined the ranks of the food and drink elite. The Feria de Gastronomia – Europe’s Gastronomic Congress – voted the only sea salt from Anglesey as one of the world’s top five gastronomic products.
It counts Michelinstarred chefs and food establishments as firm customers. Most recently in May 2008, Gordon Ramsay at The London restaurant in New York began using Anglesey Sea Salt in a new dessert offering. The restaurant is owned and operated by A-list star chef Gordon Ramsay who has been awarded 12 Michelin Stars; he is also one of only three chefs in the UK to
hold three Michelin Stars at one time. Lea-Wilson said, “We are delighted our salt is being used in such an innovative way.”
Highlighting the importance of marketing, this development was the result of a lunch held in February at the restaurant for New York media hosted by the Welsh Assembly Government and other agencies as part of Wales Week USA.
Working closely with government and promotion agencies has brought dividends. “Over the years we have had tremendous help and advice from the Welsh Assembly Government and have taken part in a number of overseas events organised by International Business Wales (IBW) which have certainly helped raise our international profile and grow our export sales.”
Tapping on the strength of Wales’ reputation, the company attends up to six international trade fairs annually. Lea-Wilson said, “Our products are really targeted at the premium segments. There is a very viable market out there for our products and we hope that we can find more areas to expand to. Hence we attend tradeshows in the more developed regions of the world such as Gulfood in Dubai, Food and Hotel Asia in Singapore, SIAL Paris and the US Fancy Food Shows.”
Lea-Wilson mentioned that the company had been expanding product ranges in the last three to four years. In the earlier half of 2008, it launched ‘Sea Salt with Organic Celery Seeds’ for Europe. According to Lea-Wilson, it has been popular with restaurants and bars that use the product for cocktails.
Expansion is on the minds of the people at Anglesey. Taking an interest in the Asia-Pacific (AP) region, Lea-Wilson said, “We took a big step forward in 2007 and went to the AP region. We went to Hofex in Hong Kong and found response to be really good.” They have recently started regular shipments to Singapore, supplying gourmet retailers and fine restaurants in the country.
Started in 2003 by Dr Mick Shaw and his wife, Lizi Shaw, the GoodCarb Food Co works to produce food from completely natural ingredients that have a minimal effect on blood sugar level. The idea started when they discovered the artificial ingredients in the low carbohydrate foods found on the market. The GoodCarb Food Co makes granola products in various flavours.
The company is serious about their health claims. They employed the services of an independent laboratory to make sure that their products really did have a minimal effect on the consumer’s blood levels. As Lizi terms it, the company is a ‘science-based’ enterprise.
Describing their supply and production strategies, Lizi Shaw said, “Yes, we outsource our production but at the same time we keep a very close eye on the specifications of the ingredients. After that, we conduct third party checks on the final products. We also constantly evaluate our position to fine-tune our strategies and explore collaborative opportunities.”
Dedicated to making the best, the husband and wife team took a year to develop their products before bringing them to market. “We were trying to make the product the best. From sourcing for manufacturers to design and packaging, we wanted to adhere to strict, honest principles of organic food,” said Lizi Shaw.
Taking their time has certainly helped the company to cement its position as a producer of healthy granola products. Raymond Blanc, restaurateur and one of Britain’s top chefs, recently commended the products of the GoodCarb Food Co.
Although still in its early days, the company is already a firm exporter to America where its premium products have attracted consumers looking for more healthy breakfast foods. The company has also started small scale exports to Scandinavia, India and Hong Kong.
More About Meat Promotion Wales
Hybu Cig Cymru - Meat Promotion Wales (HCC) is the industry-led organisation responsible for the development, promotion
and marketing of Welsh red meat.
HCC aims to improve quality, increase cost-effectiveness and add value to red meat products across the whole supply chain in Wales. This is achieved by providing information as well as advancing and promoting the use of technology within the industry.
HCC is active in many important markets within Europe: developing and strengthening business opportunities for red meat exporters from Wales. At home, HCC works with retailers, farmers markets and foodservice operators, undertaking regular promotional programmes for Protected Geographical Indication (PGI) Welsh Lamb and Welsh Beef.
An important part of HCC’s work is ensuring information regarding developments relating to Welsh red meat is made known to stakeholders and consumers.
Serving Up A Multi-Billion Marketplace
Exhibitors at the ninth Malaysia International Food and Beverage Trade Fair (MIFB’08) are optimistic about what the future holds for the food and beverage industry. Held from July 10 to 12 at the Putra World Trade Centre, Kuala Lumpur, the event was organised in conjunction with the World Food Shortage Conference.
"We are here to look for distributors and to understand the local market. At the government level, there’s a bilateral agreement, and Malaysia has been a good friend. For this region, we need to come up with a suitable strategy for marketing our cassava products and processed cocoa, which is unsweetened. Maybe look at it from a health angle."
Gerald Nyarko-Mensah
Deputy Director
Ghana Export Promotion Council
Accra, Ghana
"First time here, response is really good. A few months ago, we obtained halal certification; and Muslims can accept out product (barbequed meat). We didn’t change the Chinese taste – but it’s halal. So, it’s a bit special. Whatever we are selling here, even the cuttlefish, we manufacture ourselves. No preservatives, no colouring, no MSG."
Simon Teo
General Manager, DDQ
Johor, Malaysia
"We market 34 types of honey, obtained from our own farm. We export to the Middle East – Oman, Yemen, Libya – because the people there take a lot of honey. Pakistan and Bangladesh prefer our honey as there is a high level of trust for Malaysian products in these countries. We also market to Korea, where honey is used on barbequed meat. At this fair, we have had enquiries from Pakistani and Mauritian buyers."
Simon Chua
Sales & Marketing Director
Vital Reap Sdn Bhd
Selangor, Malaysia
"We are a spice manufacturing firm exporting to many countries and we welcome local exporters to take our products overseas. With the rising prices, one wonders if most people could afford the basic food items which they constantly buy and enjoy. Our Baba’s is always an affordable item on their list as we are also audience sensitive, working towards a balance which is acceptable by both the local and the international market."
Patricia Irvine
International Business Consultant
Baba Products (M) Sdn Bhd
Kuala Lumpur, Malaysia
"We are an established brand in Thailand selling seafood snacks, biscuits and jelly. Our products – Bento, Jele, Lotus – is halal but we are waiting for Malaysian certification. Our seafood snacks are more spicy than other brands, and we hope to improve our packaging for the Malaysian market. Our products are available in Taiwan and Malaysia but we are also targeting other Asian markets like Japan and Korea."
Venus Withoonsap
Brand Manager
SNNP Intertrade Co. Ltd
Bangkok, Thailand
"We grow our dragonfruit at a plantation in Pahang, near the National Park. From A to Z, we give assurance on quality and value for money. This is our second year participating at MIFB. We are very happy to bring our product (Pureal) to this exhibition. We have gotten very good feedback from visitors. We supply to organic shops and outlets selling vegetarian products. Our export market, so far, is Singapore and Indonesia."
Lee Chun Seng
Project Manager
Vision Lee Sdn Bhd
Pahang, Malaysia
"Being here is good exposure for us as we are looking for an exclusive distributor. Our cocktailsized abalone is a new product which we would like to introduce to Malaysians. It can be eaten as an appetizer; there is no need to slice. We export live abalone to Japan – 80 percent – and seed to Taiwan. We have been exporting to Japan every week since last month. We are still talking to the EU."
Panjai Muangsin
Co-Owner
Phuket Abalone Farm Co. Ltd
Phuket, Thailand
"So far, the response is quite good. Yesterday, we had the President of the Chamber of Agriculture, Pakistan who is interested in taking this product [ECPI water] back to Pakistan; they want to JV and open a factory there. This morning, a lady from Dubai wants to bring this product into Dubai. We have exported to Saudi Arabia, Philippines, Vietnam, Brunei and Singapore. We have also sent the product to Indonesia and Thailand."
Che Zaiton Ismail
Distributor, ECPI Water
Golden Rainforest Sdn Bhd
Shah Alam, Selangor
Change, What Change?
In business, as in life, nothing is constant but change. Companies devise a myriad of strategies to create change in order to progress; but what about the custom
