Tag Archives: food

Foodplus: value added to beef

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More value is to be generated from beef with the development of innovative new products for food, ingredients and healthcare, thanks to the latest Primary Growth Partnership (PGP) programme.

PGP co-funding has been approved by the Ministry of Primary Industries (MPI) for an $87 million Foodplus programme, run by meat processor and exporter Anzco Foods. The PGP fund is committing $43.5 million over seven years towards the programme, with ANZCO matching that funding.

Foodplus will identify opportunities to create new products, with a particular focus on parts of the beef carcase that currently generate less value. ANZCO has identified three markets for innovative new products: food, ingredients and healthcare.

“Adding further value to the carcase is essential for the future success of the meat industry,” MPI director-general Wayne McNee says. “ANZCO’s vision for Foodplus is relevant and bold and now backed by a significant investment.”

Sir Graeme HarrisonANZCO Foods chairman, Sir Graeme Harrison is enthusiastic about the potential of the new Foodplus programme to enhance business opportunities for the sector.

It will give a vital boost to the industry, he says. “For too long, the meat industry has been criticised as being a production-led commodity business characterised by high volatility and marginal profitability. This government-industry partnership provides a springboard to further transform our industry, to leverage off the inherent strengths of our farming practices and animal health status and to collaborate and capitalise on the benefits of quality New Zealand research and innovation.”

“As Foodplus begins to use the PGP’s comprehensive research opportunities, ANZCO will introduce more projects that will certainly challenge and re-invent the traditional uses of beef cattle in particular.

“The Foodplus initiative will build on the existing expertise within ANZCO Foods but also add considerable new processes and opportunities never before realised in the meat industry,” says Sir Graeme.

Rennie Davidson, chief executive  of ANZCO’s Food & Solutions division says ANZCO welcomed the opportunity to partner with the Crown on the Foodplus programme. “It is a large-scale project that wouldn’t be achievable without collaboration. We’re excited about the potential that this will bring to the sector.”

The company also recently announced a company-wide energy management programme, which will see it working with the Energy Efficiency Conservation Authority’s business unit over two years to achieve savings of $2 million a year in its processing plant energy usage.

ANZCO Foods is a multinational group of companies and one of New Zealand’s largest exporters, with sales of $1.3 billion and employing more than 3,000 staff worldwide.

This article has appeared in Food NZ magazine (February/March 2013) and is reproduced with kind permission.

Investment and innovation needed for food export growth

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Steven JoyceMore investment and more innovative processed foods are going to be needed to double New Zealand food exports by 2025 according to a new report released earlier this week by Economic Development Minister Steven Joyce.

The report, Driving Growth in the Processed Foods Sector says that doubling export sales in the food sector by 2025 will require an export growth of 7.7 per cent to 9.3 per cent per annum for 15 years, leading to approximately $30 billion in new exports.

“The report says that doubling our foods exports by 2025 is achievable. New Zealand’s food industry has seen significant growth over the last 16 years – outperforming a wide range of our competitors – but there are still challenges to overcome if we are to reach our goal,” says Joyce.

The report suggests that with investment, the processed foods industry can build on New Zealand’s existing competitive advantage in food and agriculture, and growth can continue to be driven through developing premium, innovative and niche products that are well-branded.

“New Zealand has good food and beverage exports per capita but we need to move beyond our traditional mix of meat and dairy. Processed value-added foods, like infant formula, nutraceuticals and baked goods, have the best potential for achieving the growth we need.”

Petfoods’ potential is also pointed to in the report.

The project is part of the Government’s Business Growth Agenda, to build a more productive and competitive economy. The Agenda sets an ambitious goal to increase the ratio of exports to GDP from the current 30 per cent to 40 per cent of GDP by 2025.

Designed to prompt discussion, the Driving Growth in the Processed Foods Sector report, by Coriolis Research, is part of a suite of reports released under the Food & Beverage Information Project – the most comprehensive analysis of New Zealand’s food industry ever undertaken.

Feeding East Asia

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The importance of the East Asia region as the most significant market for New Zealand and Australian food and fibre products is set to grow in coming years, highlighted more recently by the global economic downturn, according to Rabobank.

In a recent report titled, Feeding East Asia’, Rabobank senior analyst Marc Soccio says the global and economic downturn has sharpened the focus onto the East Asian region as it continues to expand its slice of the global economic pie, offering opportunities no longer available in traditional markets as incomes grow and diets change in fundamental ways.

“The significance of East Asia to New Zealand and Australian farmers and agribusinesses is growing from an already strong base, with markets in developing economies coming on-stream to supplement more established markets in the region,” Mr Soccio says.

“As developing countries across East Asia continue to grow their share of the global economy, rising incomes are gradually transforming household consumption patterns. Opportunities for greater trade with the region are widespread and are more or less subject to the ongoing evolution of strong and sustainable consumer economies.”

Soccio says supply chains are evolving, and competition to capture value from rising trade flows is arising from both within the region and beyond.

“But overall, with a greater understanding of this diverse region, New Zealand and Australian suppliers appear well positioned to satisfy growing demands for a greater range and value of food and fibre production in years to come.”

The cultural and socio-economic diversity inherent in East Asia remains a defining characteristic that makes the region a particularly complicated prospect to navigate.

Accordingly, Soccio says the need to better understand the region and its future direction has never been so great, as this will provide New Zealand and Australian food producers with the competitive advantage required to explore the right markets, in the right way, at the right time.

On the topic of the rising tide of foreign ownership in the sector, the Rabobank report refers to the case of Australia’s sugar sector which undertook a significant shift in ownership of the industry’s downstream milling assets in the period from 2010 to 2011.

“In fact, over the past decade, control of almost three-quarters of Australia’s downstream sugar refining assets have been acquired by foreign investors – around two-thirds are now owned by businesses based in East Asia,” says Soccio.

“The investment into the sector has had a revitalising effect, but it has also significantly changed supply chain dynamics, with cane farmers now needing to be more mindful of how they transact with parties further downstream.”

The value created by opportunities to supply food and fibre products to East Asia into the future will be influenced by a number of factors.

According to Soccio, competition from suppliers, both within the region and in other parts of the world, will continue to put the strong reputation of New Zealand and Australian food producers to the test.

“Many countries across East Asia are significant agricultural producers in their own right and will try to meet their own needs as best as they can, which can limit opportunities for some crops where New Zealand and Australian producers may not have a clear cost or quality advantage.”

Soccio highlights other competitive forces, such as the way in which value is shared in the supply chain, as well as exchange rates and bilateral trade negotiations, will also have a bearing.

“One way or another, the stronger ties being forged to the region through greater inbound and outbound trade and investment will underline New Zealand and Australia’s pivotal role in feeding Asia in the years to come,” he says.

Rabobank New Zealand is a part of the international Rabobank Group, the world’s leading specialist in food and agribusiness banking. Rabobank has more than 110 years’ experience providing customised banking and finance solutions to businesses involved in all aspects of food and agribusiness. Rabobank is structured as a cooperative and operates in 48 countries, servicing the needs of approximately 10 million clients worldwide through a network of more than 1600 offices and branches. Rabobank New Zealand is one of the country’s leading rural lenders and a significant provider of business and corporate banking and financial services to the New Zealand food and agribusiness sector. The bank has 31 branches throughout New Zealand.

Eventful year for meat training

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It’s been an eventful year for meat training, with the merger of the meat and dairy sectors’ industry training organisation (NZITO) and the Seafood ITO to create a major export food ITO, which is generating synergies that will benefit all.

The new single ITO entity, using the NZITO name and branding, has been in operation since the beginning of August and is now servicing a combined workforce of over 60,000 employees covering New Zealand’s three key export food industries – meat, dairy and seafood.

“There are many obvious synergies we are now taking up, such as knife skills and rendering and there will be more shared servicing over time as we maximise staff and training to keep costs in check,” reports general manager Carl Ammon, who has stepped up from leading the meat and dairy ITO to head the new body, adding that there are new skills in the team that are all adding value.

Ammon is delighted to share that the new NZITO is delivering at the top of the Tertiary Education Commission’s Educational Performance Indicator tables. “Which is creditable as our industries are seasonal and not based around trade apprenticeships, unlike building or engineering,” he says.

The move to a single enlarged ITO has been strongly supported by the Meat Industry Association (MIA) with chief executive Tim Ritchie pointing out that ITOs provide training that many people would not otherwise get, as it is delivered in the workplace and allows for the seasonal pressures of the agricultural industry.

“The ITO system is an invaluable asset for out industry, and this merger can only make it stronger. The merged ITO will allow our people to learn and up-skill themselves while they work and offers clear opportunities for career development in our industry.”

When he announced  the merger, NZITO chair Graeme Sutton said that training offered through the NZIITO will carry more status in the primary sector and the community as a whole.

Because of its increased ‘buying power’, Sutton said that the ITO will be able to demand high standards of delivery from its training providers. There will also be greater emphasis on training skills that are transferable across the food export sector, creating more opportunities for personal advancement, he said.

The new NZITO board includes two representatives each from the meat, dairy and seafood industries. Representing the MIA, and the meat industry, on the board are Carolyn Thompson, HR Manager for Taylor Preston Ltd and Kerry Stevens, Group HR and Communications Manager for Alliance Group Ltd.

There is also a meat advisory group (MAG), comprising representatives from a number of meat companies, which provides industry input to the NZITO. Similar groups have been set up for the dairy and seafood sectors.

Qualifications now under review

Recent work for the groups includes input to the nation-wide Targeted Review of Qualifications (TRoQ), aimed at simplifying the qualification framework, rationalising the number of qualifications and seeing where updates are needed. Proposals are expected to go forward to NZQA in early 2013.

The work is going well, says Ammon, adding that it is using best practice examples between sectors and will allow for qualifications that are simpler to follow and use and that still provide a learning pathway for staff.

“We are focusing on the generics and people skills like communications, problem solving and team work as well as food safety, market access, quality, biosecurity and supply chain.”

Apprenticeship pathways, proving very popular for meat companies and others, are to be rebuilt. “This uses the qualifications and packages them to the level of a well-rounded and capable operator able to take on technical and leadership responsibility.”

The TRoQ review is also building in the future needs that are arising from drivers like automation and robotics that are now expanding in use across the sector. “This mirrors past experience in the dairy industry, so we can benefit from that experience here,” says Ammon.

Health and safety skills and knowledge are being integrated into core training, alongside the running of specialist Occupational Health and Safety qualifications.

Management development and productivity improvement qualifications are being retained, “as these have been used to good advantage by many companies in building both people and organisational performance,” says Ammon.

The NZITO is also planning to implement with other ITOs, such as hospitality, a base food sector qualification aimed at schools and pre-employment. “This will reinforce the career pathways plan of the Ministry of Education and support trade academies and schools delivering trade-focused skills to students who have a career planned in industry.”

What’s next?

The NZITO is now working closely with other primary sector ITOs in the planning of a primary sector platform to coordinate qualifications and training. That will harmonise with Ministry of Primary Industries (MPI) requirements in areas like traceability, transport and animal welfare.

“This will help us to harmonise much that is in common in the food export areas and is intended to reinforce the value chain or paddock to plate concept this is a key driver in New Zealand exports,” Ammon explains.

Practical examples would be common HACCP training standards, animal welfare, animal products inspection and initiatives like halal standards for key markets. “This is also intended to complement our adaptation to expectations from key markets for a standards based approach to the supply chain,” he says.

The NZITO/Seafood ITO merger is part of the reconfiguration of the ITO sector into larger, more capable organisations to better meet the needs of employers. In October, the agriculture and horticulture ITOs also merged into one organisation, under the Primary Industry Training Organisation banner.

“Work is progressing on the prospect of a consolidated primary sector ITO that will deliver greater efficiencies in scale, coverage (market share) and resourcing flexibility,” says Ammon. “Early work shows real potential for savings and improved services so this will be a work in progress for 2012/2013.”

This item appeared first in Food NZ magazine (December 2012/January 2013).

 

New programme to add value to beef

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A new $87 million innovation programme that will look at how more value can be generated from beef carcases has been approved for Government funding.

Ministry for Primary Industries director-general Wayne McNee today announced approved co-funding from the Primary Growth Partnership (PGP) for the new Foodplus programme.

The PGP Fund is committing $43.5 million over seven years for the programme, which is worth $87 million in total and is being run by ANZCO Foods.

Foodplus will identify opportunities to create new products, with a particular focus on parts of the beef carcase that currently generate less value. ANZCO has identified three markets for innovative new products: food, ingredients and healthcare.

ANZCO Foods is a multinational group of companies and one of New Zealand’s largest exporters, with sales of $1.3 billion and employing more than 3,000 staff worldwide. ANZCO Foods also owns processing plants and a cattle feedlot: CMP, Riverlands and Five Star Beef.

“Adding further value to the carcase is essential for the future success of the meat industry,” says McNee. “ANZCO’s vision for Foodplus is relevant and bold and now backed by a significant investment.”

Rennie Davidson, CEO of ANZCO’s Food & Solutions division says ANZCO welcomes the opportunity to partner with the Crown on the Foodplus programme. “It is a large-scale project that wouldn’t be achievable without collaboration. We’re excited about the potential that this will bring to the sector.”

This announcement brings the Government’s investment in meat industry PGP programmes to $129.5 million, for projects worth a total of over half a billion dollars.

Minister welcomes announcement

David Carter, NZ Primary Industries MinisterPrimary Industries Minister David Carter has welcomed the announcement of another successful PGP bid which lifts the total invested in the variety of projects to more than $650 million.

“ANZCO’s proposal to generate more value from the beef carcase with its Foodplus programme is bold and innovative.  This is exactly what PGP is about – transforming great ideas into tangible R&D programmes focussed on results,” says Carter.

“Today’s announcement lifts the total government-industry investment in PGP since its inception three years ago to $665 million.  This is firm proof of the Government’s drive to lift economic growth through primary sector innovation.

“Thanks to the collaborative government-industry approach, we have relevant projects underway across a range of sectors from dairy, arable, red meat and wool to forestry, seafood and aquaculture and manuka honey.

“New Zealand stands to gain from innovative investment in its primary industries because our food, fibre, fishing and forestry sectors are at the heart of our economy,” says the Minister.

ANZCO Foods is a multinational group of companies and one of New Zealand’s largest exporters, with sales of $1.3 billion and employing more than 3000 staff worldwide. The company owns processing plants and a cattle feedlot within a group including CMP, Riverlands and Five Star Beef.

Understanding food protein at heart of science prize

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A world-renowned contribution to the understanding of food protein has led to Distinguished Professor Paul Moughan and Professor Harjinder Singh together being awarded this year’s Prime Minister’s Science Prize – New Zealand’s most valuable award for scientific achievement.

The $500,000 award goes to the two who are Massey University food scientists and co-directors of the Riddet Institute, a centre of research excellence led from the Manawatū campus that focuses on food and health innovation.

Their contribution to food protein science is world-renowned. Singh’s expertise is in food protein structures and how they interact in food systems while Moughan’s work focuses on how proteins are broken down and absorbed in the digestive system and the resulting physiological benefits.

“It’s a marriage made in heaven,” says Moughan. Between us we cover the whole spectrum of food protein science, which is rare worldwide.”

Examples of innovation from their work include the development of a highly effective probiotic, ProBioLife, establishing the health benefits of kiwifruit which is giving Zespri an edge globally and a technology that allows high doses of fish-oil-dervied Omega-3 fatty acids to be added to food products without a fishy smell and after taste.

A recent focus has been developing a novel process to isolate proteins and peptides in low cost meat products and use them in a food product that has been shown to have health benefits for older people. The product is being commercialised by a New Zealand meat company.

The two scientists teamed up more than a decade ago to establish the Riddet Institute as a world-leading centre for food science research. Since 2003, the Institute has secured over $40 million in research funding and used it to carry out fundamental and strategic research and apply the knowledge to create new food products, processes and systems. The Institute has also trained 80 postgraduate scholars and 30 postdoctoral fellows.

“A lot of new ideas and ways of thinking are generated at the Riddet Institute and graduates take that knowledge out into industry,” says Singh.

In addition, the Institute has established Riddet Foodlink, a network of more than 100 companies interested in food innovation and research that work with Riddet Institute researchers.

The winning team plans to use $400,000 of the prize money for on-going research to commercialise discoveries made at the Riddet Institute. “We have a lot of bright minds that come up with really good ideas,” says Singh, adding that the prize money will allow the Institute to screen those ideas and take the most promising through to the next stage.

Moughan says he and Singh are honoured to have won the Prime Minister’s Science Prize and see it as recognition that science and technology is a key to New Zealand’s future. “Food is New Zealand’s biggest industry and there is great opportunity to leverage it further, through advanced scientific understanding, to grow the economy and improve our standard of living. We are privileged to be at the heart of that opportunity.”

No consistent evidence of ‘convincing’ red meat/cancer link, says US expert

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There is no consistent evidence of a ‘convincing link’ between colorectal cancer and red meat, according to one leading US epidemiologist who visited New Zealand recently.

With extensive experience in health research methodology and interpretation of epidemiological studies, particularly nutritional epidemiology, Dr Dominik Alexander is based in Boulder, Colorado, where he works for engineering and science consultancy firm Exponent Inc in its Health Sciences Centre for epidemiology, biostatistics and computational biology.

As an epidemiologist, he’s involved with examining exposure and outcome.
“Food is a necessary exposure. All people have to eat,” he says, adding that the result of over-exposure leads to higher Body Mass Index (BMI) rates, where there is an established increased risk for cancers such as colorectal, the most common cancer affecting the alimentary tract.

Last year, the World Cancer Research Fund released the second expert report on a continuous update project on diet and colorectal cancer. This was a comprehensive study, carried out by a panel of scientific experts, which reviewed 567 nutrition-cancer studies from all around the world (see Food New Zealand, July 2011).

The panel’s conclusion was that physical activity and foods containing dietary fibre convincingly reduced the risk of colorectal cancer and, the consumption of garlic, milk and calcium probably also helps to decrease the risk.  However, the report stated that there was a ‘convincing link’ between the consumption of fresh red meat – defined as beef, pork, lamb and goat from domesticated animals – and processed meat and an increased risk of colorectal cancer. This fact was picked up by media around the world and has been used to guide Department of Health nutritional guidelines here and overseas.

However, Dr Alexander points out, it is an ongoing appraisal, which, in his view, has overstated the conclusion that there is a link. “The scientific evidence does not support the ‘convincing link’. In fact, it’s getting weaker over time as more studies are published,” he says.

In addition, the report separated out fresh red meat and processed meats, like salami and jerky. However, he says, there’s actually very little difference between the two in terms of associations.

In the US, he has found the consumers with the highest intake of red meat tend to also smoke, have a higher alcohol consumption rate, do little exercise and are generally unhealthier. There’s also genetics and age to take into account as more people in developed, and increasingly in developing countries, are reaching senior years – one of the strongest risk factors for cancer.

“It’s very challenging to disentangle the factors.”

On recommended portion-sizes (intake values), he argues that they are difficult to quantify as every person is a different size and, therefore, difficult to quantify their risk. He calls it ‘heterogeneity’, where there is no uniform pattern: “75g might work for a small person, for example, but not for a large man involved in physical activity all day.”
In his work, he has looked at a range of intake values and sees no range of patterns for increased risk, with increased consumption.

In Dr Alexander’s view, the focus should be on cancer prevention. He says, “It all starts with physical exercise and maintaining a healthy body weight. In addition you need a well-balanced diet.”

Dr Dominik Alexander PhD MSPH visited New Zealand and Australia in September in a programme organised by Beef + Lamb NZ Inc and the Australian Meat & Livestock Association.

This article appeared in Food NZ magazine (October/November 2012).

Food price surges “worrying”

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The food price surges are worrying governments and non-governmental organisations (NGOs) around the world.

Looking at it from a global perspective, and possibly with the spectre of food riots in the back of their minds, the G20, meeting a couple of weeks ago said the food price situation is “worrying“. However, they have held back from calling an emergency meeting now, preferring to wait until late-September or early-October when Washington has assembled some more crop forecast information. It was noted, however, that rice harvests are stable.

In the meantime, European banks are cooling on food commodity speculation, as it is said to be contributing to the commodity price surges, and are considering regulation. Others, including Sumiter Singh Broca a policy officer with the UN’s FAO, don’t agree entirely.

“While speculation may have added to the volatility of food prices, it is hard to argue that the increased volume of speculation would have made food prices more volatile in the absence of real shocks,” he argues in an article written for RepRisk Insight, a new e-zine.

“Farm subsidies and protection in some OECD countries have affected the volume and efficiency in agriculture and discouraged production in some countries, increasing their dependence on imports and hence their vulnerability to price shocks.”

He suggests increasing credible information on global food markets and enhancing transparency will reduce “panic-driven price surges” and enable better informed policy decision making.

Call to ‘stress-test’ the system

Recent research released last week by major international non-governmental organisation Oxfam ‘Extreme Weather: Extreme Prices’ ahead of UN talks in Bangkok aiming to tackle climate change is said to show that the full impact of climate change on future food prices is being underestimated. The research, carried out by Dirk Willenbockel of the Institute of Development Studies, looks at the impact of extreme weather scenarios on food prices by 2030.

Spikes, such as the current US drought, would be a massive blow to the world’s poorest who today spend up to 75 percent of their income on food, says Oxfam’s climate change policy adviser, Tim Gore. He calls for governments to ‘stress-test’ the global food system under climate change to identify where the world is most vulnerable.

Organic foods not more nutritious, says study

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The argument that organic food, including meat, is more nutritious than conventionally grown food has been cast doubt on by new research, based on an analysis of several hundred studies.

The study by Dr Crystal Smith Spangler and others, published in Annals of Internal Medicine (4 Sept), is the most comprehensive meta-analysis to date of existing studies comparing organic and conventional foods. Researchers analysed 237 separate studies which compared the organic foods to conventionally grown foods. They did not find strong evidence that organic foods are more nutritious or carry fewer health risks than conventional alternatives, though consumption of organic foods can reduce the risk of pesticide exposure.

As for what the findings mean for consumers, the researchers said their aim is to educate people, not to discourage them from making organic purchases. “If you look beyond health effects, there are plenty of other reasons to buy organic instead of conventional,” noted lead researcher Dena Bravata, from Standford University. She listed taste preferences and concerns about the effects of conventional farming practices on the environment and animal welfare as some of the reasons people choose organic products.

Professor Alan Dangour of the London School of Hygiene and Tropical Medicine, says like a review he and others conducted in 2009, this latest study “again demonstrates there are no important differences in nutrient content between organic and conventionally produced foods.” It also finds no evidence that organic foods are healthier than conventionally produced foods, he adds.

Organic driven by risk aversion

The majority of people who eat organic food are driven by risk aversion not nutritional superiority, believes Liza Oates, a PhD researcher into the health effects of organic diets and course coordinator of Food as Medicine, Wellness and Complementary and Alternative Medicine for the Master of Wellness Programme at RMIT University in Melbourne.

“Our research shows organic consumers are more interested in what’s not in their food – such as pesticides and antibiotics – than what is. Most also say that the environmental and social benefits of organic food play a key role in their decision to go organic.”

She points to US research that has shown that eating organic food has a dramatic effect on pesticide residues in children. “Substituting non-organic fruits and vegetables with organics for five days resulted in an almost complete reduction in organophosphate pesticide residues. It is this kind of benefit that many organic consumers are looking for when choosing to buy organic food,” says Oates.