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Changing tastes make China new flavour centre By Jess Halliday, 30-Nov-2009 Burgeoning demand for flavours

from Chinese food manufacturers has led to rapid growth in the last decade and encouraged more foreign firms to set up operations there, says Leatherhead. China s economy has grown apace in the last few decades, and the food and drink sector has seen a boom in output with 150 per cent growth between 2004 and 2008. Especially in the urban hubs where many have more disposable incomes, there has been a general shift in shopping habits towards Western style foods bought in grocery stores rather than markets. In 2000 production of flavours, flavourings and fragrances was almost 145,000 tonnes but by 2008 it had more than doubled to 300,000, a new report from UK-based Leatherhead Food Research has found. The Asia Pacific region is said to account for 17 per cent of the global demand for flavours, and domestic demand in China has been a driver for expansion. Leatherhead estimates that between 90,000 and 100,000 tonnes of China s production is used by its own domestic industry. However the growth and the potential have attracted a number of flavour houses to set up production in China. While leaders Givaudan and IFF have had local presence for a while, they have been joined by Firmenich and smaller Western firms like Treatt, Ungerer and Comax. Being close to the market is especially important for flavour firms, as local tastes can vary wildly between geographies and companies need to understand the subtle variations in a population s flavour preferences. MSG shift In the last decade China has overtaken Indonesia as the leader in production of monosodium glutamate (MSG), a flavour enhancer. It now accounts for 60 per cent of the world s monosodium glutamate supply (1.9m tonnes), Leatherhead says. Although much of this is for domestic use, domestic demand has stagnated recently. Chinese MSG now accounts for around 40 per cent of the MSG sold in Europe, despite importers being slapped with tough anti-dumping tariffs in 2008 following a complaint by Ajinomoto, the only MSG maker with a base in the EU. Leatherhead s researchers note some consolidation in the Chinese MSG landscape however. Some of the smaller suppliers have folded because of higher raw material costs and falling profitability. A clutch of larger suppliers, such as Henan Lotus, Hebei Meihua and Shandong Qilu, and Shandong Linghua are now said to dominate. General ingredients growth

. Bring in knowledge but adapt it to local behaviour and desires.com from China. . There is enormous value in a global infrastructure but it must be carefully applied. he said. elimination of language barriers. representing some 15 per cent of the global ingredients trade. according to Torben Friis Lange. 04-Mar-2011 As the world s most populous nation with a strong economy. This emphasis on quality means there is a willingness to buy speciality ingredient instead of going with commodity products. you need to communicate with people and you can t do this from a distance. Local presence key to Chinese market: AAK By Emma Edwards. China is an attractive target for food manufacturers and their suppliers . excluding commodities like sugar and starch. Leatherhead estimates that China was producing in the region of 2 million tonnes of food ingredients a year in 2000. this does mean quality is compromised. consumers are very demanding of high quality products. Friis Lange identified strong demand for healthier products. In fact.Leatherhead s analysis of the Chinese ingredient sector is included in a new report called China a growing global power in food supply.but they cannot operate effectively in the region without a local presence.The most efficient approach is to act with global knowledge but carry out business locally. To keep pace. Consumer trends As well as a big snacking trend. fast feedback. He sees trends from Europe and the US taking shape in China and expects them to take off rapidly in the region. It s no longer a case of international companies taking products in. Quality counts A huge assortment of products proliferate the chinese market but. so manufacturers need high quality ingredients. local knowledge and awareness of local tastes as just some of the benefits of having a sales team on the ground. western companies are now sharing the market with local Chinese companies. Today that volume has swelled to up to 5 million tonnes. you need to be in the market and part of what s happening.. where the fats and oils specialist AAK has just established its Shanghai base. he said. he said. AAK vice president and business area president. Friis Lange highlighted. Speaking to FoodNavigator.

. and low or no trans fatty acids. Especially in the urban hubs where many have more disposable incomes. the combined grocery markets of Brazil. In 2015. Global Players in the Confectionery Industry. Joanne Denney-Finch. and the food and drink sector has seen a boom in output with 150 per cent growth between 2004 and 2008. USDA By Jane Byrne . biscuits and juice products are experiencing double-digit growth in China with this consumer demand fuelling an increase in the country s sugar imports. growth in sugar consumption is mostly attributed to the rapidly growing processed food and beverage sectors. there has been a general shift in shopping habits towards Western style foods bought in grocery stores rather than markets. China s economy has grown apace in the last few decades. IGD said.194bn. Russia.042bn by 2010. states a report from the US Department of Agriculture's Beijing office. Domestic sugar output was hit by drought in cane areas in the current season but prospects look better for next year with the cane producing areas experiencing heavy rainfalls. worth an estimated 1. traditionally around the one million tonnes mark. This change in positions is largely attributed to the impact of the prolonged recession in the US and quick recovery in China.Many retailers and manufacturers have already built a strong presence in these countries. Sweets demand fuelling hike in China's sugar imports. 5 million tonnes in 2010-11.Consumers are looking for products with reduced saturated fat. 29-Apr-2010 Products such as confectionery. Market view China is set to be the largest grocery market in the world. According to the publication. for example. said the USDA. The region is predicted to continue its strong growth and overtake the US in 2012 to take the top position putting the US in second place. according to international food and grocery analysts IGD. but for those that haven t. . it is vital that they incorporate the BRIC markets into their strategic planning in order to sustain business growth. A report from Leatherhead Food Research. according to a USDA report. and particularly in China and India. India and China will be worth more 2. Commenting on the recently announced figures. China's sugar imports. are forecast to rise to 1.. published last autumn forecasts that growth in global chocolate sales will in the main be generated by the developing world in places such as Africa and the Middle East. chief executive.

85 per cent for the last five years. However. Iran. especially within younger age groups. the organisers of the Sweet China trade event. Taking into account more than just the number of food alerts from a particular country. Citing official figures from China. chocolate confectionery is gaining acceptance amongst the more affluent consumers in these regions. Identification The scientists behind the new computer tool. which was presented last month at an EFSA-AESAN conference on risk surveillance of imports. six per cent above global growth over the same period. which was set up in conjunction with the National Candy Association. They also say the program will allow easy handling of the enormous quantities of data that arise from food alerts and recalls. . Signed by 50 countries in 2007 the Beijing Declaration urges signatories to develop comprehensive programmes to improve consumer protection and participate in the International Food Safety Authorities Network (INFOSAN) to share food safety information. at a rate of 12.In many of these regions. Koelnmesse. on average. chocolate is less of an established product. the new computer system is being touted as a tool to facilitate the adoption of the Beijing Declaration on food safety. where it is becoming popular as a snack. since both the warm climates and an underdeveloped infrastructure have traditionally hampered sales. the development of new monitoring systems is warranted to facilitate wider participation in food alerting and to provide early detection of potential epidemics of contaminated foodstuffs (e. In 2009.g. Writing in the PlusOne open access journal. claim it will help countries identify major food safety transgressors and detectors within their trading networks. New global monitoring tool identifies food safety offenders By Guy Montague-Jones. 05-Mar-2010 A new monitoring tool presented at a recent EFSA conference has named China. Turkey. melamine in Chinese food products). the system creators said: Owing to the enormity and frequency of arrival of the data involved. the event organisers claim that the national confectionery industry has increased. said the growth forecasts for the Chinese confectionery market continue to offer encouraging investment opportunities for multinational sweet makers. said the researchers. the United Sates and Spain as the top five offenders in food contamination between 2003 and 2008.

a leading government official said it would intensify scrutiny on the food supply chain in a bid to prevent or catch tainted products reaching food processors.1371%2Fjournal. Turkey. China. Naughton China vows further food safety clampdown By Rory Harrington . The computer tool is also capable of taking impact into account by computing the number of countries involved in a transgression as well as the number of alerts.pone. the software takes into account the number of reports received by transgressor countries and reporting countries (detectors) related to a particular country. But the order was different when impact was taken into account with China taking first place as the worst offender and Iran dropping down the list. Source: PlusOne 4(8): e6680. Announcing the latest in a string of safety initiatives.0006680. Rather than just counting up food alerts.pone. To consult the data and read more about the methodology http://www. and Spain. Vice Minister of Agriculture Wei Chao'an said this week that agricultural officials at all levels are working this year "to prevent any large-scale food safety crises by clamping down on thousands of farms particularly those involved in the production of dairy products.1371/journal.0006680 Network Analytical Tool for Monitoring Global Food Safety Highlights China Authors: Tamás Nepusz. Worst offenders Analysing data from the alert logs from the European Rapid Alert System between January 2003 and 2008 the program picked out some of the worst food safety offenders. analyse trends. doi:10.Network approach The new system takes a network approach that attempts to capture the complexity of global food safety. the five biggest offenders judged by the total number of food alerts were Iran. and predict the impact of interventions.org/article/info%3Adoi%2F10. Declan P. 12-Mar-2010 China has said its aim this year on food safety is to avoid any major contamination crises as it continues to struggle to impose national standards on food producers and processors. In descending order.plosone. . the US. Andrea Petróczi.

contaminated with the industrial chemical." It also vowed to release national quality standards for dairy products this year. consumers don't know which food products in the store have a sales tax and which do not. A government statement issued this week promised to "implement quality and safety monitoring programs targeting raw and fresh milk. Statement: Occasionally. were left over from the 2008 scandal that killed six and sickened 300. and strengthen supervision of purchase stations for raw and fresh milk.Assurances from Chinese authorities that it had improved its food safety system after the introduction of a new law last summer and the formation of a number of new committees have been undermined by the continuing appearance of melamine-tainted products in recent months. due to the arbitrary nature of the taxes.especially for dairy products and other high-risk food. production methods are still backward and our supervision lags behind. many of our operations remain scattered. "Our agricultural products overall are safe and of high quality. a challenge in a vast country where some rural areas are still very poor. when the southern Hainan Province took emergency measures to stop toxic cow peas from entering the market after about 3. Even if they did. Poor supervision Wei said China was working to bring more farms under better supervision. Candy Taxes National Confectioners Association (NCA) March 18. Officials also mentioned an incident in late February. The reality is that. The dairy products. To prevent such incidents and help ensure food safety.S. legislators claim that the aim of these discriminatory taxes is to help curb the obesity epidemic in the U. said the official statement. 2011 Overview: Confectionery products are increasingly becoming a target for lawmakers across state capitols in an effort to raise revenue." he added.000. the country plans to increase the frequency of food tests and inspections . the fact is that .5 tonnes of cow peas found were tainted with a poisonous pesticide. but we must also recognize that while we transition from traditional to modern farming.

and 'Nutraceuticals' General Good Manufacturing Practices and HACCP Imports and Exports Inspections Labeling Recalls/Market Withdrawals . Tax policy should not interfere with the marketplace by creating competitive disadvantages for arbitrarily created food classifications. Furthermore. varying tax rates for different types of foods create confusion and compliance problems with retailers and others who are charged with collecting the taxes. and Filth Advertising Alcohol in Candy Fortification. Frequently Asked Regulatory Questions y y y y y y y y y y Adulteration. Sanitation. food taxes hurt lower and middle income American families who spend a larger portion of their income on food purchases. The National Confectioners Association and it members oppose these discriminatory taxes for many reasons. it is a little pleasure that can be enjoyed as part of a healthy active lifestyle.candy represents less that 2 per cent of the calories Americans consume. Additionally. Dietary Supplements.