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Issue 11 - September 2007

Creating links to news that matters for food & drink markets – brought to you by
William Reed Events & Exhibitions

NEWS

Foot & mouth disease


UK meat producers and processors are once again under threat from the latest outbreak of foot and mouth disease.
Export markets were just beginning to recover after the previous ban was lifted on August 25.
The ban also takes an important source of supplies off the European market at a time when the price of meat is rising
to account for the increased cost of feed.
As the latest countrywide ban on livestock movements of cattle, sheep, pigs and other ruminants takes effect, UK pro-
ducers and processors will face a severe reduction in production. The three latest cases were just a few miles away from
the Pirbright research complex, the site blamed as the source of the last outbreaks.
The new cases are also believed to involve the same strain of the disease found in the outbreaks last month. The meat
industry estimates that the previous ban on exports cost industry about €2.7m a day.
Visit www.defra.gov.uk/footandmouth for further information or call the Defra Helpline on 0845 9 335577

Supermarket code is “toothless”


A new survey conducted by accountants Grant Thornton claims 52 per cent of food
suppliers are unfamiliar with the Supermarket Code of Practice, introduced by the
OFT in 2002.
Even more suppliers, 76 per cent, don’t believe the Code offers any protection
from increasing supermarket power.
The voluntary code is criticised for being ‘toothless’ and the fear of being de-listed
by the supermarket chains is a far greater
threat, with their ‘unreasonable behaviour’
putting ‘a huge financial strain’ on food
suppliers.
One supplier, whose contract worth £40million/year with ASDA was terminat-
Only two out of ten global shoppers ed at just 12 weeks notice, is still waiting for the OFT to decide if this was a
assess nutritional value when they breach of the Code after 2 years.
make purchases. In the survey 22 per cent of suppliers called for the introduction of a legal
In the early 20th century it was believed requirement for supermarkets to confirm key terms of trade in writing.
that the world market for cars would
reach only 4 million because the world
would run out of chauffeurs. Sweet success
Forks used to be known as split spoons Sales of honey rose 14 per cent in the UK between 2004 and 2006, says Mintel,
TIP is the acronym for To Insure while marmalade saw a 10 per cent drop over the same period. The total ‘sweet
Promptness spreads’ market was worth US$253 million last year,
reflecting no real growth since 2004.
The banana is a herb
But there would have been a decline without honey
Food production has increased faster sales increasing to £67million, thanks largely to its
than population over the last 40 years healthy credentials, Mintel claim. Jam still holds
In 1994, Chicago artist Dwight Kalb sent number one spot with 35 per cent of the market, fol-
David Letterman a statue of Madonna, lowed by honey 26 per cent; marmalade 21 per cent
made of 180lb of HAM! and peanut butter 10 per cent.
EYE ON INDUSTRY ISSUES

World first in food training


QFT (UK) Ltd, which specialises in e-learning courses, has joined forces with UK awarding body
ASET to be the first in the world to offer Level 2 Food Safety awards on line to the food manu-
facturing sector. A second award, in catering, is available from this September.
Previously these syllabus awards were only available through classroom training or by visiting
dedicated computer centres. Now candidates can visit the five training lessons on line and absorb
the fully illustrated learning at their own pace, says QFT.
The development of electronic testing and instant certification should be appreciated by busy companies and individu-
als who can now achieve ‘just in time training’.
Details of other ASET certificated training is available on line at www.elearnshop.co.uk

Cheese squeeze….
The price European processors pay for cheese is set to rise ‘significantly’ according to
European Dairy Association chief Joop Kleibeuker. Speaking to DairyReporter.com he said
companies may well have to reconsider how they use the product to formulate their goods.
Concerns now exist that Europe will face a cheese shortage. Dwindling milk supplies and
the current high prices commanded by butter and skimmed milk powder add weight to
these concerns. Delays in prices rises for cheese products are accounted for by the three
to six month contracts often agreed between processors and their suppliers. Once these
end, prices will inevitably rise and may be passed on to the consumer, says Kleibeuker,
which could have an effect on consumption, as seen already in the USA.

…and milk surge


Dairy co-operatives around the world are having to pay their suppliers regular increases for milk
as prices for the raw product continue to surge, says a report from agri-business consultancy
Promar International.
Commissioned by First Milk the report highlights concerns and patterns in the global dairy mar-
ket. Richard Greenhalgh, chairman of First Farms said that international demand for skimmed
milk powder, particularly from China, Latin America and North Africa ‘will impact on the UK for
some years. “Current market rates could be in place for some time….if a sustainable supply of
liquid milk and cheese for the home market is to be ensured,” he added.
The milk commodities market internationally is set to remain volatile for some time with reduction in exports from
Australia and South America and EU reforms on quotas for dairy farmers.

New food training facility at Lincoln University


July 2008 will see the opening of a new facility offering training, research and an actual food production factory which can
act as a ‘live laboratory’. The 1,400 sq metre unit, costing £3.3m, will have three dedicated areas. Many companies have
donated equipment for the training and research sections, including Ishida Europe Ltd.
Already more than 3,000 food processing specialists pass through Lincoln University’s Holbeach Site
each year taking advantage of the bespoke training on offer for the sector.
Mike Dudbridge, senior lecturer at Holbeach, who is head of the project, claims this will enable the
industry to tap into the expertise and facilities even more easily and quickly. “Companies often need
training at short notice. We can offer this with state-of the-art technology from next July,” he confirmed.
The University has undertaken a detailed study of the use of automation in the food processing indus-
try across Europe. The study looked at food manufacturers in Germany, France as well as the UK and
included long and short shelf-life products. Mike Dudbridge,
Lincoln was partnered in the project by leading food institutions from Germany and France and the Lincoln senior lecturer,
University
study was supported by Ishida Europe. Holbeach

The end of shake and tap?


A new coating for the inside of containers for ketchup, mayo and other sticky products is set to end the problem of what
gets left behind in the bottle according to the Fraunhofer Institute of Germany.
The 20 nanometer thick coating which made from a plasma already used in neon lamps will be launched later this year
at the ‘K’ exhibition in Dusseldorf. Developed by three German research institutes, (Fraunhofer, IGB and Munich
University of Technology), the coating will aid recycling and reduce the product residue by half or even more it is claimed.

Issue 11 - September 2007


EYE ON INDUSTRY ISSUES

Home help
Almost three-quarters of food producers are claiming their order books are above normal thanks to
domestic orders, says the latest CBI industrial trends survey. But exporters report a less rosy picture
with 23 per cent above and 17 per cent below normal levels. Some 62 per cent of respondents expect
average prices for domestic orders to increase over the next three months, but almost half reported
stocks of finished goods were less than adequate.

Calls to support UK pig industry


At a meeting held at Sainsbury’s Pimlico store BPEX chairman Stewart Houston called
for sustainable supply chains as a key element in tackling the economic threats facing
the British pig industry.
The meeting, attended by Food and Farming Minister Lord Rooker and senior
Sainsbury’s representatives, said real improvements in productivity and competitive-
ness had been made in the last two years, but recovery was now being threatened by
economic factors such as the rise in feed costs.
“Sainsbury’s already has a well-developed group for beef suppliers and we are dis-
cussing extending the concept to the pig industry,” said Houston. The supermarket chain
now claims to be 100 per cent British on pork across its core lines.
Lord Rooker gave his strong support to partnerships between retailers and the British pig industry to promote home
grown pork products.

Classy burgers
Up market eateries for burgers, chips and even pie and mash are bringing people back to these
‘old favourites’ according to research by Mintel. Following on from the gastropub they will help the
‘eating out’ market grow by 27 per cent over the next 6 year from its current annual value in the UK
of £17.7 billion.

Pensioner power
By 2030 over one billion of the world’s population will be over 65, which presents a huge opportunity for food and gro-
cery companies according to research published by IGD.
The fastest growth in senior citizens is taking place in emerging markets like China and India. But, worldwide, these will
be the first ‘sixty-somethings’ with a long standing exposure to marketing and brands and also with serious purchasing
power.
Investing effectively in the middle-aged market segments of today will reap “huge benefits” says IGD. The Institute iden-
tifies ageing, along with other trends such as urbanisation, immigration and the changing role of women as being “the
most important influences on food consumption in the 21st Century”.

China is top location


A new study by Deloitte & Touche reveals two thirds of companies surveyed are plan-
ning to expand their operations into China in the next five years. Of these 82 per cent
expect to invest in production facilities, 78 per cent in sales and distribution and 44 per
cent in R&D.
Preference for China remains strong despite product safety concerns, rising labour
costs and increases in raw material prices, says the study. Firms with annual revenues
in excess of $1 billion are more likely to invest in emerging markets and while China
remains the favourite location almost half said they planned to expand production in
other developing countries.

Putting the fizz in drinking at home


Champagne and cocktails are now the order of the day, or night, in many UK households with
sales of wine and champagne for domestic consumption up 26 per cent between 2002 and
2006.
Likewise spirit and liqueur sales increased by 16 per cent over the same period. So it’s out
with the ‘party eight’ and in with the Bolly darling!

Issue 11 - September 2007


EYE ON THE MARKET
The Show Teams:
Food & Drink World 2008 Ready meals still in vogue
The UK is still the largest market for ready meals in Europe, shows a study published
recently by Mintel. Of the five major EU countries in the study UK consumption for 2006
to 2007 stood at €3bn with sales expected to grow a further 25 per cent between now
www.foodanddrinkworld.com
and 2011. The UK is followed by France at €2bn. Twenty three per cent of Brits are like-
FOOD & DRINK WORLD
ly to eat a ready meal at least once a week, while only 9 per cent of Germans do the
NEC 6 - 9 April 2008 same, (source TGI Europa). But Germany will be the biggest growth market over the
next 5 years, says the report.
In the UK leading retailers of ready meals, such
Marketing: as M&S, are highly responsive to consumer trends,
Clair Bowman offering a variety of products for many different
+ 44(0)1293 867 639 tastes.
clair.bowman@william-reed.co.uk Adding to consumer convenience aluminium
trays has now been given a clean bill of health for
use in the microwave oven following a study by the
FDE 2008: Fraunhofer Institute, in Germany.
Jack Halliday or Sarah Thomas
+44 (0)1293 867616
foodanddrinkexpo@william-reed.co.uk

CRS 2008: Food & Drink World


Matthew Butler or Rebecca George
+44 (0) 1293 867613
matthew.butler@william-reed.co.uk
Showcase
rebecca.george@william-reed.co.uk
Special Features – specialties abound
Foodex Meatex 2008 & BIE 2008:
Daren Rose-Neale Keep an eye open for regional specialties at Food & Drink Expo 2008
+ 44 (0)1293 867 626 where you will find a host of products within the Regional Areas in Hall
fm08@william-reed.co.uk 6. Take a look at the best on offer from local food producers in pavilions
operated by East Midlands Fine Foods, Heart of England Fine Foods,
IFFE 2008: Invest Northern Ireland, Northumbria Larder, Scottish Development Int,
David Inkle The Regional Food Group of Yorkshire & Humber, Wales the True Taste,
+44 (0)1293 867613 Savour the Flavour - Dumfries and Galloway, Pure Produce of the Isle of Man and many
david.inkle@william-reed.co.uk more…
Also watch out for: Chefs Competition Theatre over 1,000 chefs from across the
PR - MAJIC LIMITED: industry, including three semi-finals of Knorr Chef of the Year. Wine And Cheese Theatre
Mary or Audrey - Discover the award winning cheeses and wines of 2008. Soil Association Organic
+44(0)1424 777783 Village; PLUS: 30 international pavilions from as far a field as Australia, Europe, India
murphy-mmassociates@tiscali.co.uk and South East Asia.

Weightron weighs in at Classic


Please let us have your news Cuisine and Foodex Meatex
and any thoughts about the sort of
news headlines and links you Classic Cuisine, of Northampton, has purchased two ‘low
would like to see published. mount’ mobile volumetric depositors from Weightron
E: fdwpr@william-reed.co.uk Bilanciai, which will be exhibiting at Foodex Meatex 2008,
to increase production of its range of frozen gourmet
Food & Drink Matters meals, due to rapid growth in demand.
is produced by The company, now supplies its customers, which
William Reed Events & Exhibitions include restaurants, pubs and motorway services, with
as a service to more than 100,000 single meal units per week.
exhibitors and visitors. The two depositors are used for a variety of processes,
including sauce deposition, filling boilable sauce pouches
and piping mashed potato. The machines are capable of
handling delicate or fragile vegetables as well as cooked
meats suspended in sauce.

Issue 11 - September 2007