Friday, August 5, 2016

Small traders express concern over heavy taxation on dairy industry

ISLAMABAD: The Islamabad Chamber of Small Traders on Sunday expressed serious concern over heavy taxation on local dairy industry and imported milk, which has resulted in hike in the price of packed milk twice in a short span.

It asked the government to review the taxes and take note of the situation as it will hit health of masses, especially babies, half of whom are already underfed.Talking to Tabassum Anwar, Chairperson of IWCCI Standing Committee on Trade and Industry, he said that prices of sugar have also been increased, which is unjustified.

He said the government has imposed 20 percent customs duty and 25 percent regulatory duty on import of milk powder to please the elite class, keeping in view the upcoming elections. Shahid Rasheed Butt said the decision was unacceptable as masses should not pay the cost of ambitions of the political elite.

He said the EU has given trade relaxations to Pakistan while our policymakers have returned the favour by imposing additional taxes on their exports, which may compel them to change their mind and that will further damage dwindling exports.

Additional taxes have also pushed the local dairy sector into a crisis, which has increased the cost of doing business. He noted that the revenue measures will result in around 30 percent fall in the demand of milk hitting masses and the people linked to this business.

Pakistan is the third largest milk producer in the world producing around 55 million tonnes of milk, production is increasing by four percent per year while the demand is increasing 15 percent annually.

Pakistan exports skimmed and fresh milk while it also imports 40,000 tonnes of milk, mainly from India, which is equal to 320,000 tonnes of fresh milk, he informed.The global milk demand is set to increase by 36 percent in nine years, which can be an opportunity for Pakistan.

Resource: https://www.thenews.com.pk/print/139197-Small-traders-express-concern-over-heavy-taxation-on-dairy-industry

European Union dairy intervention boosts unviable

THE EU paying dairy farmers to slow milk production will be good for global markets in the short term, according to Dairy Australia analyst John ­Droppert.

But the downside was that it might keep unviable dairy farmers in business in the ­medium term, Mr Droppert said.

The EU Commission’s €500 million ($A740 million) package to support dairy farmers announced last month ­includes €150 million ($A221 million) to ­encourage milk production cuts across three months. EU nations have swamped the globe with milk, adding to the oversupply that has ­depressed global prices.

Milk production has started to slow, but the most recent UK Agriculture and Horticulture Development Board figures from May showed a lift of 0.8 per cent in milk deliveries across the EU compared with the same month last year.

“Milk production was ­already starting to slow down, handing out money at this point, I think the effect will be fairly limited,” Mr Droppert said.
There’s a feeling in the wind that we are starting to see an improvement, anything to help slow down (production) in the short term will help.

“But handing money to marginal producers to keep them viable into the future may not be such a good thing in the medium term.”

In the past month global prices have shown a small ­improvement, fat products, such as butter, have increased $US150-$US200 ($A195-$260) a tonne, while milk powder has remained stable and skim milk powder lifted up to $US100 a tonne, according to Mr ­Droppert.

Near-term pricing on Global Dairy Trade has improved recently, but Mr Droppert said there had been tightening of the market in later contracts as well.

“It is not so much that they are going up, but a feeling that they are not going down as we head towards the slow and steady recovery,” he said.

Acting Australian Dairy Farmers president David Basham said the EU intervention “might slow down milk production quickly, but it might be keeping people in business in the EU ... longer than they would have”.

Mr Basham welcomed the move to cut supply in a bid to help prices but said the EU’s regular market intervention put uncertainty in the market and prompted speculators to enter into the market.

Resource: http://www.weeklytimesnow.com.au/agribusiness/dairy/european-union-dairy-intervention-boosts-unviable/news-story/1cf57f7083ba62cc1297f0002c1146b5

Tuesday, June 21, 2016

Meadow Gold recalls dairy products in four states

The Meadow Gold Dairy plant in Boise, ID, is voluntarily recalling Meadow Gold brand Old Style whipping cream and Meadow Gold DairyPure brand whipping cream and half and half because insufficient pasteurization may have failed to kill pathogens in the products.

No illnesses had been reported in connection to the products as of the posting of the recall notice June 1 on the Food and Drug Administration’s website.

“It is possible that pathogens present in raw milk, including Salmonella, Campylobacter, Listeria, and/or E. coli, may have survived and, if ingested, could cause serious or life threatening issues,” the dairy company stated in the recall notice.

“The recall involves approximately 10,000 units of the affected product, which was distributed in four states including Idaho, Oregon, Wyoming and Utah through numerous retail outlets and food service settings. The company is actively notifying customers and is in the process of retrieving the affected product.”

The recalled whipping cream and half and half can be identified by the following label information:

    Meadow Gold DairyPure Half and Half — Quarts with UPC number 4190007913, date of 06-17-16, and plant code of 16-05;
    Meadow Gold “Old Style” Whipping Cream — Pints with UPC number 1570013313, date code of 06-24-16, and a plant code of 16-05;
    Meadow Gold DairyPure Whipping Cream — Half pints with UPC number 1570010018, date code of 06-24-16, and plant code of 16-05;
    Meadow Gold DairyPure Whipping Cream — Quarts with UPC number 1570013210, date of 06-24-16, and plant code of 16-05; and
    Meadow Gold DairyPure Whipping Cream — Gallons with UPC number 1570016615, date of 06-24-16, and plant code 16-05.

Meadow Gold Dairy officials discovered the potential problem during a routine review of production records, according to the recall notice.

“Consumers who have this product should not consume it. They should discard it and may return the product package to the place of purchase for a full refund or exchange,” according to the recall notice. “Consumers with questions can contact the company at 800-587-2259 Monday through Friday from 8 a.m. to 5 p.m. Central time.”

Resource: http://www.foodsafetynews.com/2016/06/meadow-gold-recalls-dairy-products-in-four-states/#.V2kpkzUpfIU

Dairy prices hit 4-month top, despite whole milk powder weakness

Dairy prices rose to their highest level since January at the GlobalDairyTrade auction, but benchmark whole milk powder prices were down, amid ideas that New Zealand dairy production has been much better than previously thought.

Dairy prices, as measured by the GlobalDairyTrade index, rose by 3.4% at the latest bi-monthly auction event.

But the rise disguised diverging fortunes, as whole milk powder prices fell back 1.7%, while prices for skimmed milk powder soared 12.1%.

Premium narrows

The jump in skimmed milk powder marks a change in fortunes for the commodity, which has been falling back against whole milk powder.

At the last the discount of skimmed milk powder to whole milk powder reached $593 a tonne, the highest since October 2013.

After Wednesday's auction, the premium stands at just $338 a tonne.

Supportive summer

The performance for whole milk powder prices was slightly worse than expected, with production from New Zealand, the world's top exporter and the dominant player in whole milk powder markets, proving more resilient than thought.

"New Zealand late‑season production has held up better than expected thanks to good summer pasture availability," said Tobin Gorey, at Commonwealth Bank of Australia.

Dairy Australia said New Zealand's production had fallen less than expected, due to "with timely rainfall and warm temperatures maintaining good pasture cover in many regions".

And for farmers who use feed in addition to pasture" lower demand and a shortage of storage for supplementary feeds such as feed grains, palm kernel and maize silage are contributing to sharp price reductions for these products," the industry body said.

Milk production in New Zealand was down 2.1% year on year between June 2015 and March 2016, Dairy Australia said, with overall production in the year to May 31 2016 down by just 3%.

Earlier in the season there was talk that production might fall by as much as 10%.

Global surplus

Dairy Australia warned that globally, "supply continues to outpace demand," and inventories are building up, particularly in Europe.

"The European Union continues to produce significant growth, while US farmers have seen margins cushioned by cheap feed grain prices."

"These stocks will likely slow any emerging price recovery," the industry body said.

Australian production to fall

Still, Australian production is expected ease due to lower prices paid to farmers.

Australian farmers in the southern, export-focused regions saw cuts to farmgate milk prices in April and May of this year.

"Although it remains too early to quantify the impact of the recent milk price cuts, it is clear that farmer confidence will be significantly impacted," Dairy Australia said.

But this fall in confidence could result in lower output in 2016-17, which would be supportive for the global milk market.

"As always, regional variation is expected, but a national volume total below that of 2015-16 is considered highly likely," Dairy Australia said.
Resource:  http://www.agrimoney.com/news/dairy-prices-hit-4-month-top-despite-whole-milk-powder-weakness--9607.html

Aging processing plants have exceeded capacity, forcing producers to dump skim milk daily

Already forced for months to dump skim milk because there isn’t enough processing capacity in Ontario, a bad situation could get worse if action isn’t taken to modernize aging plants, Ontario’s dairy farmers are warning.

In testimony before the Senate’s Committee on Agriculture and Forestry, Peter Gould, CEO of Dairy Farmers of Ontario said there could be a devastating impact on rural Ontario and rural Canada in the absence of a well-thought-out strategy.

“The status quo is not an option. Doing nothing is not an option,” Gould said. “It’s not a pretty picture.”

Processing plants that turned skim milk into powder hit their capacity 12 months ago in Ontario, Quebec and the Maritimes. The industry has been disposing of skim milk almost every day since, he said.

Tens of millions of kilograms of skim milk have been used for animal feed, the lowest-priced market. Some skim milk has been dumped into lagoons or manure pits.

Canada has a dozen processing plants that make skim milk powder in a system that uses dryers. Out of the 12, 10 of the dryers are more than 40 years old, Gould said.

“For all practical purposes, they have outlived their useful life. In fact, any one of those dryers can fail at any time.”

Building new plants to replace the dryers will cost in the hundreds of millions of dollars and would take about three years, he estimated.

Dairy farming is the largest agricultural sector in Ontario with most of the province’s 3,800 dairy farms located in Southwestern Ontario.

The president of the Dairy Processors Association of Canada Jacques Lefebvre agreed with Gould’s bleak evaluation of the situation.

“The way it has been presented is pretty accurate,” Lefebvre said Tuesday.

The limited skim milk processing capacity also constrains Canada’s ability to produce enough butter to meet growing market demand, Gould testified.

Business is being turned away and it is questionable if the industry will ever be able to recapture the lost opportunities, he said.

Lefebvre said the positive part of the challenge facing the dairy sector is that there now is unprecedented co-operation between processors and producers to modernize the system in Canada.

The Dairy Farmers of Ontario moved in April to create a new class of milk with prices designed to encourage processors to invest in new facilities.

“The challenge has been in Canada is we have not created a marketplace that is conducive to domestic processors investing in these modern plants because we price that use of skim at such a high level,” said Graham Lloyd, general counsel, for Dairy Farmers of Ontario.

The new class of milk has created a competitive marketplace, Lloyd said.
Resource: http://www.lfpress.com/2016/06/01/aging-processing-plants-have-exceeded-capacity-forcing-producers-to-dump-skim-milk-daily

Tuesday, May 17, 2016

Falling cattle numbers attributed to dairy price slump

The number of dairy cattle in New Zealand has fallen for the first time in about a decade, according to the 2015 Agricultural Production Survey.

Statistics New Zealand says the number of dairy cattle fell to 6.5 million in 2015, which was the first decline after nine years of consecutive increases.

Sheep numbers have continued to decline and there is now just over six sheep for every New Zealander, down from 13 sheep per person 20 years ago.
The survey is based on responses from farmers and foresters for the 12 months ended June last year, and it shows the number of dairy cattle has fallen as dairy farmers have slaughtered cows because of the slump in dairy prices.

The national dairy herd hit a record high of 6.7 million in 2014.

The biggest fall in animal numbers is in the Waikato dairy heartland where there were 153,000 fewer dairy cattle than in 2014, while Taranaki dairy cattle numbers were down by 8 percent and in Canterbury it was 6 percent lower.

The survey also shows that sheep numbers fell by 2 percent to just over 29 million sheep.

The number of beef cattle was marginally lower at 3.5 million and deer numbers dropped 6 percent to 900,000.
Resource:http://www.radionz.co.nz/news/rural/303637/falling-cattle-numbers-attributed-to-dairy-price-slump

New Coles milk brand sparks derision from dairy farmers

Farmers have met a decision by Coles to create a milk brand that will deliver funding for the struggling industry with cynical laughter.

Coles will launch a new milk brand and divert 20¢ a litre from sales to an independent diary industry fund, which the retailer said would "provide direct support to farmers and invest in innovation to ensure the long-term future of the dairy sector".

It would also contribute $1 million to the fund.

The decision comes amid warnings dairy farmers will go out of business in the face of low global milk prices.

"It's important that we have a vibrant dairy farming sector, and we can only have that if we work together to ensure the long-term health of the industry," Coles managing director John Durkan said in a statement.

Farmers argue they have little respite from challenging global conditions in their home markets after Coles slashed the price of private-label milk to $1 a litre five years ago. Woolworths followed suit.

"It's incredibly ironic [the fund]," said Victorian dairy farmer Marian Macdonald.

"Now that Coles are killing the goose that laid the golden egg they're saying we'd better get some grain under their nose to keep the head up."
Coles milk profit rising

Coles is making more money from its private-label milk than when it struck a deal with the nation's biggest milk processor, Murray Goulburn, in 2013 because the prices it pays are pegged to the international price, which has dropped.

When global prices rise, Coles pays Murray Goulburn more for its milk. When it falls, it pays less. Coles pays a processing fee, regardless of the price for milk. The retail price has remained the same at $1 a litre.

Ms Macdonald said she didn't want to look a gift horse in the mouth and welcomed the prospect of funding for dairy farmers.

"We love that [Coles managing director] John Durkan has had an exorcism," Ms Macdonald said.

"Tell him we will forgive him for his past sins. We will even shout him a glass of milk, fresh from the cow."

When Murray Goulburn secured the Coles private-label contract, former managing director Gary Helou argued it could turn a profit from $1-a-litre milk, when other processors said they couldn't, because he would invest in new manufacturing plants that would lower production costs.
Shareholder backlash

Murray Goulburn is facing a shareholder class action and a probe by the Australian Competition and Consumer Commission after it shocked farmers and investors by slashing the price it would pay its farmers for milk.

It will struggle to meet half its net profit forecast outlined in the prospectus for its partial float on the Australian Securities Exchange less than a year ago, after management's expectations for Chinese demand for its milk powders failed to materialise. 

Coles says its private-label milk accounts for only 6 per cent of Murray Goulburn's production. The retailer, which has yet to set a price for the new brand, also says it will not make any profit from sales of the new label.

Its decision comes amid growing angst in the sector, with some farmers calling on Deputy Prime Minister Barnaby Joyce to intervene and establish an independent review of the industry.

Industry group Australian Dairy Farmers has argued a $1-a-litre milk price is unsustainable.

ADF president Simone Jollife and chief executive Ben Stapley have meeting with Coles and Woolworths executives this week.

Ms Jolliffe, a NSW dairy farmer, said many farmers were hurt because Murray Goulburn's decision to cut prices came so late in the season, well after budgets were set in place and costs incurred.

She said she wanted to understand the detail of Coles' new milk brand and how the fund would support farmers.

"We would welcome an opportunity to add value," Ms Jolliffe said.

Victorian dairy farmer Andrew Leahy said the world market was holding farmers to ransom and was thankful Coles was at least "trying to do something".

But he said it was still up to the consumer to choose what will probably be milk priced at a premium to Coles' private label.


Resource  :http://www.afr.com/business/retail/new-coles-milk-brand-sparks-derision-from-dairy-farmers-20160517-gox1sc

Friday, April 29, 2016

India signs dairy products export protocol with Russia

 After nearly 16 months of formal announcement, India has finally signed protocol with the government of Russia for exports of dairy products to that country.

With this, Indian producers may start exports of dairy products largely hard cheese to Russia to which the first consignment is expected to leave Indian ports by June-end.

Estimated at 230,000 tonnes, Russia's hard cheese supply was met largely through imports from European countries. But, since restrictions were imposed on dairy products import from Europe in retaliation with the economic sanctions levied by European countries, the hard cheese import was diverted from South America and neighbouring Russian markets including Belarus etc.

Amid stiff conditions on quality, therefore, Russia was desparately looking for alternative supply of hard cheese from Asian countries and India being the largest milk producer in the world, could get some pie of the Russian markets.

"The government today signed the protocol, which would allow Indian dairy exporters to start shipment of hard cheese," said a senior industry official.

Russian announced opening of its dairy product markets for Indian exporters in December 2014 coinciding the visit of its President Vladimir Putin. But, the actual shipment hit a roadblock due to stiff conditions laid down by the Russian phytosanitary authority Rosselkhoznadzor.

After visiting around two-dozen factory premises and facility of milk procurement in India, Rosselkhoznadzor officials concluded that farms with less than the herd size of 1,000 cattle would not be allowed to export dairy products to Russia. In India, therefore, only two dairy farms including Parag Milk Foods and Schreiber Dynamix were conforming to this norm.

While Parag MD Devendra Shah recommended the government to sign the protocol to begin with the exports and negotiate for the liberalisation in norms later, dairy companies like Amul brand producer Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF) insisted the government to sign the protocol only after liberalisation in this norm.

The objective of GCMMF was to accommodate more companies including small and medium size producers for exports.

"After signing the protocol by the government of India, the Rusian authority would sign it. The entire process would take at least 15 days to one month. After that, negotiations of prices and trade terms would take at least one more month. So, by June- nd we would be able to supply first consignment of hard cheese to Russia," said Shah,

Industry sources, however, said that the Russian authority has liberalised norms to accommodate more Indian players in dairy exports. Instead of herd size of 1,000 cattle, the Russian authority has focused on traceability of milk procurement and quality of cheese India produces.

"More than exports of dairy products, Russia would be able to pay some premiums compared to other export destinations which would help raise prices of skimmed milk powder (SMP) and other products which have been under tremendous pressure for over 18-month. Once dairy farms begin to get higher realisation, they would pass on to farmers for milk procurement. So, farmers would benefit ultimately," said Shirish Upadhyay, Senior Vice President (Strategic Planning), Parag Milk Foods.

Resource :http://www.business-standard.com/article/markets/india-signs-dairy-products-export-protocol-with-russia-116042801248_1.html

Import of dry milk harming local farmers’ interests: UVAS VC

LAHORE - Massive-scale import of dry milk and whey powder has been damaging local milk farmers, as they are unable to get the right price of their milk.
This was stated by Vice Chancellor of the University of Veterinary and Animal Sciences (UVAS) Prof Talat Naseer Pasha in an exclusive talk with APP here on Sunday.

He said that European Union was giving subsidy to their farmers to produce milk that’s why their farmers were growing and they had acquired a strong position in milk production.
About the potential of agriculture and livestock sectors, Prof Pasha said that Pakistan is an agricultural country with world’s one of the best irrigation systems, fertile lands and all four seasons.
Agriculture sector contributes about one fourth to the country’s GDP and is believed to be the backbone of the rural economy, as it provides employment to 45 per cent workforce of the country, he added.
While livestock is an integral part of the agriculture sector, it contributes 55.
1 per cent to the agricultural value added, and approximately 12 per cent to the national GDP, he said.
Responding to a question about the rise and fall of investment in the dairy sector, the VC said that milk is largely the single most commodity of the livestock sector and the value of milk alone exceeds combined value of wheat, rice, maize and sugarcane in the country.
More than 8 million farming families are associated with livestock sector and majority of them are small-holders and landless.
This depicts the critical dependence of 40 to 50 million rural people on the livestock sector.
Selling milk for meeting day-to-day needs has become a visible phenomenon in the country during the last two decades and hence livestock farming has become vital in generating instant cash flows for the rural population.
Historically, majority of the livestock farming has been fragmented into small holders, as smaller herd size is 1-6 animals.
As a result of various dairy development initiatives since 2005, tremendous improvement had been witnessed in dairy farming where commercial and corporate sector in dairy farming emerged.
The country has seen phenomenal growth in investment in dairy farming during the last one decade.

The emerging commercial scale farmers had positively influenced the whole livestock farming sector in terms of transforming practices, sharing modern knowledge and skills and attracting international service providers.
The trend of investment in the dairy farming continued until 2013 when this growth started declining and has currently been halted, he added.
About the declining trend in the dairy sector, Prof Pasha said that livestock farmers especially samll farmers have been facing various issues for the last few years, that have not only hampered the growth in this sector but eventually put the livelihoods of 40 to 50 million people at stake.

One of the major issues that has adversely impacted livestock sector is the unchecked import of milk powder and whey powder in the country, as the duty regime is just 20 per cent for such imports that makes it easy to get it dumped in Pakistan.

These imports have shaken the dairy sector stake-holders particularly the producers/ farmers.
It’s worth mentioning here that Pakistan is considered the third largest milk producing country in the world with nearly 50 billion liters of annual production.
However, despite having one of the largest animal population base and huge local production of milk, the import of powders indicates manipulation in the value chain, resulting in net economic loss both to producers and consumers.
In short, the dairy farming sector is at the verge of devastation due to influx of skimmed milk powder and whey milk powder (SMP&WM) from across the globe, the VC added.
The use of SMP&WP in the dairy processing industry, dairy related products, biscuits, sweet making, confectionary industry and tea whitening segment has deprived the local farmers of getting the right price of their commodity and eventually triggered a discouraging wave in the developing dairy farming sector.

The VC said that import of SMP&WP, according to the United Nations database, Pakistan imported 35 million kilograms of milk powder in 2012 worth $102.
1 million, 22 million kilograms in 2013 worth $70.

8 million and 34 million kilograms in 2014 worth $117 million.

At the same time, Pakistan imported 19.

5 million kilograms, 18.

3m Kgs and 20.

2m Kgs of whey powder in 2012, 2013 and 2014 worth $13.

4 million , $15 million and $16.

9 million, respectively.

From 2007 onwards, there has been a shift in focus of Pakistani dairy processors from selling milk to selling recipe products made out of SMP&WP and vegetable fat etc.
These products are generally called tea whiteners and dairy liquids.

According to estimation by dairy industry experts, in 2014, the share of recipe products (other than milk) in litre-age term has gone up to 59 percent in total sales while plain white milk is only 41 percent.
Since these recipe products are made using SMP&WP for dairy processor, the cost of production of these products is far below the raw milk prices, which ultimately deprives dairy farmers of a better price for their raw milk, the VC claimed.

When asked what should be done to halt the import of dry milk and whey milk to help the local farmers to continue their business, he suggested levying 100 to 150 per cent duty on import of dry and whey milk.

Resource  :http://nation.com.pk/lahore/25-Apr-2016/import-of-dry-milk-harming-local-farmers-interests-uvas-vc

Reduce sugar content in dairy whitener: Food regulator

xWith India being home to a huge population of diabetic patients, the food regulator has asked the industry to reduce sugar content in dairy whitener used in tea and coffee in households.

Currently, the total added sugar for dairy whitener is 24 per cent by mass, which the Food Safety and Standards Authority of India (FSSAI) wants to bring down to 18 per cent. The industry will be given two years to suitably modify the manufacturing process.

This was decided by the FSSAI in its 17th meeting held on May 18, the minutes of which were released last Friday.

‘24% sugar hazardous’

“There was near unanimity that the sugar level could not be kept at 24 per cent as a standard as it could be hazardous for consumers suffering from diabetes,” the food regulator said.

India is reported to have close to 65 million cases of diabetes, the second largest number after China. Union Health Ministry estimates suggest nearly 50 per cent of known diabetics cases—another 30 million plus—are undiagnosed and unaware of their condition and progressing towards complications.

A population-based diabetes screening programme carried out by the health ministry suggests high prevalence of diabetes in several states like Gujarat, Karnataka, Andhra Pradesh, Bihar, Punjab and Sikkim where the prevalence varies between 7-14 per cent. The suspected prevalence of diabetes in urban slums is also  high—about 12 per cent.

The industry representative, however, argued at the meeting that it might not be feasible for the manufacturers to switch to the 18 per cent sugar standard. But the regulator was firm that the industry had to shift to the new standard, as higher sugar level is a health hazard.

The 18 per cent sugar standard was fixed by the Bureau of Indian Standards, which the FSSAI asked the manufacturers like Nestle, Amul and Mother Dairy to follow. In the meeting, the industry was represented by the All India Food Processors’ Association.

Alcoholic beverages

In the same meeting, the FSSAI had also approved draft standards for alcoholic beverages and the necessary labelling conditions for imported liquors.

The official process has now begun to publish the draft notification on alcoholic beverages seeking public comments.

Earlier this year, the Central Advisory Committee of the FSSAI had given the go-ahead to make standards for alcoholic beverages like vodka, gin, whisky, rum, brandy and beer.

Resource :http://www.deccanherald.com/content/507209/reduce-sugar-content-dairy-whitener.html

Misleading ads: CCP issues notices to dairy drink producers

ISLAMABAD: The Competition Commission of Pakistan (CCP) has served show cause notices to four dairy drink manufacturers after finding that four out of five existing market players were deceiving consumers by selling tea whiteners as milk.
The anti-trust watchdog issued show cause notices to Shakarganj Foods Products Limited, Haleeb Foods Limited, Noon Pakistan Limited and Engro Foods Limited for alleged violation of the Competition Act 2010, by advertising tea whiteners as milk, announced the CCP on Monday.

The CCP conducted an inquiry of all the existing players who produced dairy drinks and tea whiteners and advertised them as milk. It evaluated the packaging and marketing practices, including television commercials, website disclosure and other marketing material.

There had been concerns that the manufacturers were marketing dairy drinks and tea whiteners as milk, whereas both the products actually contained only a proportion of dry milk in their ingredients. The product could not be considered as fresh milk.

“Through advertisements, the public is being misled into believing that they are consuming milk, whereas what they are actually consuming are ‘dairy drinks manufactured from powered milk’ or ‘liquid tea whiteners’,” said the inquiry report.

The CCP observed that deceptive marketing practices had a direct impact on the public at large. False and misleading advertisements induced consumers to purchase products which gave producers a competitive edge over other players.
Nestle Pakistan

Nestle Pakistan is the only producer that, according to the CCP, is not giving any wrong impression to the general public about its product ‘Everyday’.

“Nestle Pakistan is manufacturing two variants of Everyday, one is in the powder form ie ‘Powdered Tea Whitener’ and the other is in liquid form ie ‘Tea Creamer’ which is clearly mentioned on their respective packaging,” showed the inquiry.

Other four

The inquiry found that four manufacturers were involved in distributing false and misleading information that could eventually harm consumer interests as well as business interest of other players.
The report recommended the initiation of show-cause notices to Shakarganj Foods Products for its product Qudrat (liquid tea whitener), Haleeb Foods for its product All Max (dairy drink) and Dairy Queen (liquid tea whitener), Noon Pakistan for its product Dairy Rozana (dairy drink) and Engro Foods for its product Dairy Omung (dairy drink).

Noon Pakistan has recently been bought by Fauji Fertilizer Bin Qasim Limited.
There are a set of standards defined by the Pakistan Standards and Quality Control Authority (PSQCA) and the Punjab Food Authority (PFA) for dairy products such as milk, dairy drinks and tea whiteners.
Any product claiming to be milk, must contain milk protein not less than 34% of SNF and lactose not less than 4.6% of SNF, extracted from Halal animals.
Published in The Express Tribune, April 19th,  2016.
 
Resource :http://tribune.com.pk/story/1087434/misleading-ads-ccp-issues-notices-to-dairy-drink-producers/

Friday, April 15, 2016

Midwest Dairy Association to Consumers: Take the Pledge

As dairy intake declines in the U.S., an industry group is calling on Americans to pledge to consume three servings of milk, cheese, and other dairy products every day. The message: It’s both healthy and affordable.

It’s probably no surprise that the Midwest Dairy Association wants you to boost your dairy intake. What might surprise you, however, is that DMA wants you to pledge to consume three servings of dairy products every day.

DMA launched its “Dairy 3 for Me” pledge last month, citing concerns that many Americans aren’t getting the USDA-recommended daily amount of low-fat or fat-free dairy foods. So far, more than 400 people have taken the pledge, including at least two news anchors and one child—the latter being MDA Dietitian Stephanie Cundith’s son Topher.

A three-times-a-day habit is both healthy and fiscally responsible for consumers, MDA says.

“Dairy’s nutrition, versatility, as well at its affordability—an eight-ounce glass of milk costs, on average, only 25 cents—are all motivating factors in taking the Dairy 3 for Me pledge,” Cundith said in a news release. “Not only is upholding a commitment to get three servings of dairy every day important to our health, but it can be easy to do and easy on a grocery shopper’s budget.”

The drive to get Americans to fill their glasses with more cow’s milk comes at a time when the industry is facing stiff competition from alternatives such as soy and almond milk. Indeed, last month the Plant Based Foods Association launched to represent manufacturers of these and other plant-based products in Washington, DC.

Interested in taking the dairy pledge? Hop on to the Midwest Dairy Association website.

Resource :http://associationsnow.com/2016/04/midwest-dairy-association-consumers-take-pledge/

Manufacture program connects students

The Cows Create Careers (CCC) Manufacturing Program is a dairy industry initiative launched by Dairy Australia in 2010. Following a successful pilot program in Victoria, the program was expanded to several other states establishing a vital link between secondary school students, teachers, dairy manufacturing and the dairy industry supply chain.

The program introduces secondary school students to career and education pathways in dairy manufacturing and encourages students to learn not only about the manufacture of dairy products but also the nutritional benefits of this amazing food source.

The program is strongly supported by dairyfarmers, field officers, dairy companies and others across the dairy manufacturing chain. The program is delivered to 140 schools and 3000 students across the country. A key part of the program requires secondary school students to visit dairy factories, and local industry advocates to visit schools to outline the myriad career opportunities available. It provides a link between schools, dairy companies and the local school community.

John Pye, a director of Murray Goulburn and farmer from Hamilton in Victoria, has been involved with the CCC Manufacturing Program since its inception. Mr Pye helps in the camembert in the classroom component and regularly attends presentation days.

"This program is fun and educational," he said. "The teachers are so enthusiastic, and I've seen an improvement in the quality of the kids and their levels of interest each year. It's easy to notice the change in the kids understanding of dairy and how much they love it."

While the manufacturing program continues to grow in popularity, Mr Pye said the program's benefits were as much about awareness and creating career pathways as they were about the program's achievements.

"The dairy industry has long recognised the opportunities for growth and profitability and how closely these are linked to its position as a world-competitive producer," he said. "Linking the local schools and students to the dairy manufacturers is a key aspect of this." 

Resource:http://adf.farmonline.com.au/news/magazine/industry-news/general/manufacture-program-connects-students/2751969.aspx

Now is the time to lock in deals for dairy ingredients, says Greenfields Ireland

Dairy commodity prices have hit the floor as there is too much milk in the market and not enough demand for it.
 In Europe this has been caused largely by the abolition of milk quotas, which previously put a cap on how much milk dairy farmers were allowed to produce. With EU-wide quotas consigned to history, dairy commodities are exposed to free market forces that have sent prices crashing to the floor.

The European Commission is already buying up skimmed milk powder through its Intervention Scheme to prop up the market, and is expected to extend this measure to butter in the next few weeks. According to Belfast-based Greenfields Ireland, as soon as a market balance is achieved prices are almost certain to start rising again. This means now is the perfect time for food manufacturers in Europe to lock into a fixed-price deal for their dairy ingredients using a long-term pricing model.

“Do this today, and it will be possible to benefit from low prices and insulate your business from the extreme price volatility that’s been a characteristic of the European dairy ingredients market over the past decade,” said Ian Thomas, Managing Director of Greenfields Ingredients, the UK division of Greenfields Ireland.
‘Simply too good to miss’

Mr Thomas added: “For companies in the bakery, confectionery and ready meals categories, who often use large volumes of dairy ingredients, this is an opportunity that’s simply too good to miss. Wait too long, however, and it could be too late. Intervention by the European Commission will take excess supplies of milk out of the market, and product prices will soon start to creep up.”

However, according to Mr Thomas, prices will not stay low for long. “Now is the time to consider locking into a long-term pricing model,” he explained. “This will give you the assurance of knowing that when prices eventually rise, which we expect them to do in the second half of 2016, the price you pay for your dairy ingredients will be more favourable than that available on the market. Considering the pressure major retailers put on their suppliers to keep a lid on raw material costs, the peace of mind this offers could prove to be invaluable. While your competitors are pulling their hair out at the prospect of an upswing in ingredient prices, you’ll enjoy the benefits of cost protection.”


Resource :http://www.newfoodmagazine.com/23665/news/industry-news/greenfields-dairy-ingredient-prices/

Nut milk leads plant-based dairy alternatives product launches

Dive Brief:

  • Conventional milk is still the cream of the dairy crop globally. But plant-based dairy alternatives are seeing rapid growth, while making up only 6% of total global dairy product launches in 2015, according to Innova Market Insights.
  • While dairy alternatives were once mainly dominated by soy milks, almond and other nut milks are grabbing a larger piece of the market share. Soy milk's share has dropped from almost three-quarters of launches in 2011 to 60% in 2015, while almond milks have boosted their share to more than 28% of new launches as of last year.
  • Health benefits are part of dairy alternatives' appeal. More than 90% of dairy alternatives launched in 2015 were positioned with a health claim, including lactose-free (over 47%) and claims about natural ingredients and being additive/preservative free (36%, or 64% including organics).

Dive Insight:

Non-GMO is another major selling point for dairy alternatives. This is more so in the U.S., where nearly half of launches in 2015 included the non-GMO claim. That's compared to less than a quarter globally and 11% in the EU, where GMOs have to be labeled.

As consumers' voice concerns about allergens and intolerances, manufacturers of dairy alternatives are positioning and advertising their products as healthy solutions.

Hain Celestial, maker of WestSoy, Soy Dream, and Rice Dream, and WhiteWave Foods, maker of Silk and So Delicious, have been on the winning side of strong growth in the dairy alternatives category. Hain grew by double digits for 20 consecutive quarters before the first fiscal quarter of 2016, and since, growth has remained steady in the high single digits. WhiteWave recently reported its second consecutive quarter with more than $1 billion in sales, including a 12.5% jump for full-year 2015. Plant-based beverages have been key to these companies' growth as they increasingly become major players in the industry.

Conventional milk maker Dean Foods has increased profitability significantly in the past year. The company reported a 371.4% increase year over year in its most recent quarter, and CEO Gregg Tanner's 2015 compensation soared 138.8% after exceeding EBITDA targets. However, revenues have declined, including 15.8% last quarter, as competition from dairy alternatives ramps up.

Wal-Mart recently announced plans to build a dairy processing plant, which will cut Dean Foods' private-label fluid milk volume by about 100 million gallons. Dean Foods said it remains unfazed as the company shifts to more profitable brands, like Dairy Pure and Tru Moo.

Resource :http://www.fooddive.com/news/nut-milk-leads-plant-based-dairy-alternatives-product-launches/416567/

Chinese willing to pay more for quality dairy products – Kantar

Despite the slowdown of global dairy markets, the liquid milk market in China continues to grow, market researchers say. 
 
The overall liquid milk market in China (milk and yoghurt) saw a sales increase of 7.5% in 2015, according to consumer market researcher Kantar Worldpanel. In comparison with the European dairy market, this positive trend in China is set to continue, they said. 

To promote greater consumption, dairy manufacturers should educate the Chinese people on the benefits of consuming dairy, according to the market researchers.

They also said that young people are willing to try more categories, and that manufacturers can continue to grow strongly if they diversify their portfolio and look for innovative ways within dairy to convert new consumers.
“Health benefits are a hot topic and using a scientific approach to communicate how the product can improve consumers’ lives can be successful,” they said.

Imported milk

Imported milk is growing faster than domestic milk in China, accelerating the whole dairy market consumption. According to Kantar Worldpanel, through government support policy, promoting the quality of domestic milk to consumers has become a priority now for domestic manufacturers

Resource  : http://www.farmersjournal.ie/chinese-willing-to-pay-more-for-quality-dairy-products-kantar-204841

Patanjali may go global; needs Rs 1000 cr investments for expansion

Yoga guru, Baba Ramdev’s Patanjali range of products is riding on the increasing consumer acceptance and shift towards ayurvedic and natural products.

A report by Religare Capital Markets, prepared after interaction with Patanjali Ayurved’s Managing Director, Acharya Balkrishna, has interesting facts about the company and its future plans. We list out some of the highlights.

– Patanjali clocked revenues of Rs 4,500-5,000 crore in FY16 (ghee sales being Rs 700 crore, toothpaste Rs 300 crore and herbal cosmetics Rs 250 crore) and plans to grow at 100-125 per cent annually for the next three years. The company may explore international markets if growth in the domestic market becomes saturated.

– New products launched in FY16 are gaining traction and the company plans to roll out an extensive range of baby care products, premium herbal cosmetics, guava drinks and dairy products such as WMP (Whole Milk Powder) in the near term. In-house manufacturing capacity of honey, which was launched about six months ago, has been ramped up to 65 tonnes/day and the company plans to increase this to 100t/day. No Patanjali product has ever been withdrawn from the market thus far.

– Patanjali sources its raw material directly from farmers and a few vendors, and believes raw material availability could fall short in the medium term, given the shortage in cultivation of herbal ingredients. Currently, 90 per cent of its products are manufactured in-house and management intends to maintain these levels in order to ensure product quality (outsourcing is only to exclusive manufacturers).

– Distribution is through 80 super stockists and 2,000-3,000 distributors. The company also has 1,200 Chikitsalyas (treatment centres) and 7,000 Arogya and Swadeshi Kendras, which it plans to double in FY17. Patanjali also plans to ramp up its presence on the modern trade and e-commerce platforms to drive consumption.

– Product pricing is on a Cost+Profit basis and is irrespective of competitor prices.

– As per Acharya, if supplied with high quality products, India’s personal care market has higher growth potential as compared to the food market given higher penetration of personal care products in rural India.

– Patanjali requires an investment of Rs 1,000 crore in the near term to expand and modernise its facilities which will largely be debt funded.

Resource :http://www.financialexpress.com/article/industry/companies/patanjali-may-go-global-needs-rs-1000-cr-investments-for-expansion/236046/

Looking inward – Career in Interior Designing

Working to design the interiors of a constructed space can be a challenging and satisfying profession, says Reena Jhaveri

Sector overview

Since the time of cavemen, humans have had homes and wanted to decorate their homes according to their tastes and likes. Over the years, it became a need to understand the needs of space versus beauty, finding the balance, and also, finding the right materials to create that exact look that one is looking for. And that’s where a designer steps in. A designer who in concerned with built spaces and how to get the optimum use of the space along with making it visually appealing as well as affordable.

It seems that interior design has been a popular profession for many decades now, and will continue to do so. With high rises overtaking the Mumbai skyline, there is much scope for these professionals to put their creative juices and practical training to good use. The trends show that even though most design professions are concentrated in the urban regions, interior design is spread across the country. That is because even in the interior regions, people have begun to understand the value of pleasantly designed spaces.

With passing time, people have realised the value to professional services in this area, not to mention that they want comfort at every step of the way whether we talk of the home or work environment. Indians are now also developing a taste for the good life, and they want this to reflect in every aspect of their lives, including the spaces they inhabit.

There was a time when space was viewed as a merely functional, especially in cities like Mumbai where real estate costs have touched the sky. Spaces are now being viewed in an aesthetic manner, no matter what the size. Between the construction of new homes and buildings, new office and display spaces and renovation of old spaces, interior designers will have their hands full with new demands every day!

To get there

Whether you think you have the aptitude or not, the professional education in this field can start only after completing class 12 (HSC or equivalent). Experts believe that those interested in design professions should have the ability to introspect and understand their aptitude, since this is a profession where talent is needed, and talent cannot be imparted. A person can learn skills, but cannot acquire talent beyond a certain point.

Several institutes offer higher education programmes in the field and these offer a blend of theoretical and practical training. There are diploma and degree programmes to choose from. An aspirant is advised to check all the aspects of a programme, including the duration and fee structure, before settling in on one.

Most institutes hold entrance exams for these programmes (depending on your prior qualification) and test your drawing and design abilities. Some of these institutes may also conduct personal interviews before finalising the admissions. This way, they are able to judge your readiness and skill level to pursue the programme.

Apart from those pursuing professional courses, many graduates of architecture as well as commercial and applied arts gain entry into this profession by way of their talent and experience.
Institutes in Mumbai
  • Rachana Sansad’s School of Interior Design, Prabhadevi
  • Premlila Vithaldas Polytechnic, SDNT Women’s University, Juhu
  • B. K. Somani Polytechnic, Sophia College, Pedder Road
  • Sir J.J. School of Arts, Fort
  • Raffles Design International, Santacruz
  • ITM – Institute of Fashion, Design and Technology
  • Pearl Academy, Andheri
  • L. S. Raheja School of Architecture, Bandra
  • International School of Design (INSD), Mulund
  • Garware Institute of Career Education and Development, University of Mumbai, Kalina
  • International Institute of Interior and Fashion Technology, Navi Mumbai
  • St. Francis Institute of Art & Design, Borivali

Market and remuneration

The market is booming and how. Several budding designers have had the opportunity to branch out on their own after a few years of gaining experience with a large firm. Opportunities exist in large design firms, with personal visits to homes of existing and would be clients. There are opportunities in public and private sector companies, including architectural firms, building contractors, hotels, resorts and individual clients.

A newcomer can begin with any such organisation understanding the basic nature of the work as well as what each type of space entails. Once can also understand which work is best suited, after a short stint at a company. With work experience, there come specialisations through work itself – business projects, residential design, outer spaces and even landscape design. Students in this field need to understand the importance of keeping up with the latest trends, and perhaps even being able to predict the future trends. After your work speaks for you, word of mouth will serve as the best way to get new clients and do more fruitful work with each passing day.

Designers also need to understand that the client is after all at the centre of the activity, so working in tandem with the client is essential, even when ideas and opinions clash. If you deliver well with one client with few hassles, you are likely to score more clients. You also need to showcase your creativity and whip out something fresh at each instance, because even if for you this is an everyday activity, for the client, the idea of doing up a home does not present itself often.

New graduates join as trainees or junior designers, and the remuneration varies from Rs. 15,000 per month to Rs. 25,000 per month. This number can rise rapidly with experience.

A student says

Anmol Surve   / Pursuing his course  
Even though you might feel that there are many job openings in this field with the kind of construction activities going on, you need to realise that every year, there are many students who are graduating from their courses and are entering the market. As our professor says, you must always think of distinguishing yourself from the others by developing yourself. Once you think about what you are good at and how that can complement the field you are in, you will be able to work towards developing a niche for yourself.
For that it is imperative that you use your time to get some work experience by way of an internship. You will be able to observe the ongoing work on different projects and learn how the world works in terms of demand, supply, sourcing items, purchasing decisions and so on. More importantly, you will also acquire some hands on training in communicating with the workers on site, and how to tackle their everyday issues. You will realise the importance of the client, and how he views the professional whose services he has hired. For the client, you as a designer will be no different from a senior designer and
he is not going to cut you any slack just because you are new. So you better learn how to pull up your socks.

An aspirant asks

Himanshi Mehta, FYJC student  

I want to get into this field, since my sister is an interior designer and I really like the work she does and the work culture in her office. I am afraid that I do not know how to check by ability and skill for this field, and want to make sure I am doing the right thing by choosing this field. How do I ensure this?

Our professionals answers: I’m quite certain that no one will tell you this, but look at your drawing and visual ability. Your drawing capabilities will tell you a lot about your talent in design. This profession cannot depend only on what you visualise, you also need to put in on paper, and that is where your ability to scale down things, arrange things spatially will be reflected. I am sorry to say that if your drawing skills are really poor, you should rethink. Another way is to take an aptitude test. Several professional institutes conduct aptitude tests where the score can reveal your capability.

Apart from that, personally for you I will suggest that you shadow your sister (or even one of her seniors) for a few days to see how they function and what kind of design decisions they make every day. You should also question her about how she arrived at certain decisions and designs, and perhaps ask her to set you some task (may be a hypothetical situation) to judge how you would provide the design solutions to the problems posed by her.
Resource : http://www.freepressjournal.in/looking-inward-career-in-interior-designing/696972

NGO organises blood donation camp for thalassemic children

LUDHIANA: Fulfilling their social responsibility, Yes Bank and staff came forward for support of Thalassemic Kids by organizing a blood donation camp in association with Zindagi Live Foundation.


The camp was inaugurated by Councillor Narender Sharma (KALA) and Kanwalbir Singh (Regional Head). Team from Red Cross Blood Bank collected 55 units of blood. Anuj Gupta, cluster head and Rajesh Sharma, branch head, appreciated the work of Zindagi Live Foundation and promised their wholehearted supporting future too.

Anmol Marria from Zindagi Live Foundation thanked all the donors and staff of YES Bank for their concern for the society.

Those present included Mintu Sharma, councillor, Vijay Narula, Sachin, Bhanu, Chandrma Singh, Ashok Marwaha, Balram Mehta, P P Chopra, Gyan Bansal, Nitin Walia and Parveen Soni Bakshi. 
 
Resource : http://timesofindia.indiatimes.com/city/ludhiana/NGO-organises-blood-donation-camp-for-thalassemic-children/articleshow/51179486.cms

Glorious night for Bengal biz biggies

Kolkata: The state government is planning to join hands with chambers of commerce and industry bodies to create a structure for corporate social responsibility of the Bengal Inc, disclosed state finance and industries minister Amit Mitra at the fourth edition of the ET Bengal Corporate Awards held last week.

According to Mitra, one of the guests of honour, the award holds up the transforming image of the Bengal industry. Besides Mitra, Niti Aayog vice-chairman Arvind Panagariya was the other guest of honour.

This time, 263 organisations participated in categories that included best financial performance, fastest-growing company, highest job creator and innovation in business. The first category received maximum nominations, followed by the second and the third category. There were two special award categories: lifetime achievement and Indian visionary business leader.

The Oberoi Group executive chairman Prithviraj Singh Oberoi received the Visionary Business Leader award. EIH Ltd executive vice-chairman SS Mukherjee received the award on his behalf from Panagariya. The Lifetime achievement award went to Emami founders R S Agarwal and R S Goenka. "The secret of success for industry is to create leaders who can execute," Agarwal said while receiving the award. Panagaria, who was on his maiden trip to Bengal, added that the Bengal success story needed to be told to people.   

As many as 13 companies got recognition in various categories. In best financial performance, four companies - Koppern Maco Corporation, La Opala RG, R S Software and Emami Ltd - bagged awards in different sub-categories.


Mega Moda, Indian Cable Net Company, Vikram Solar and Star Ferro and Cement became the fastest growing companies. AKA Logistics, 2 COM Solutions, Vedant Fashions and Magma Corp were the winners in the highest job creator category. The award for innovation in business model went to Senrysa Technologies (P) Ltd.

The award ceremony was sponsored by Anmol, Bengal Energy, Himadri Chemicals, Manyavar, Orbit, PS Group, Rashmi Group, Ultra Force, SKM GRoup, AMPL, Senrysa and was managed by Cherry Tree. The progrramme will be telecast later in ET Now.

Resource : http://timesofindia.indiatimes.com/city/kolkata/Glorious-night-for-Bengal-biz-biggies/articleshow/50723980.cms

Teen basketball player selected for Tokyo academy

LUDHIANA: When 16-year-old Anmolpreet Kaur Pannu was shuttling between Phillaur and Ludhiana last year to learn the nuances of a not-so-popular sport like basketball, it would have seemed to many that her efforts would go to waste. But, earlier this month, it was this six-foot, one-inch tall trainee at Ludhiana Basketball Academy who had the last laugh.

On March 3, the Class XI student became the first Indian girl to be selected for a three-year scholarship at a basketball academy in Tokyo, Japan. A student of Malwa Khalsa Senior Secondary Girls School in Ludhiana, Anmolpreet described her selection for the scholarship at Toagaukuen High School in Tokyo as a "dream come true".

"Since my childhood days, sports had been my first love, though I like studies too. Thoug I would participate in athletics at my alma mater, Saint Joseph Convent School, my teachers Ravi Kumar and Vijay Thakur motivated me to take up basketball. It was when I was playing the sport that someone suggested me to join LBA and get trained by Teja Singh Dhaliwal," she said.

Anmol, as she is lovingly called by her friends, hails from Rountan village in Shahpur Nakodar, Jalandhar, and lives in Phillaur, where her father is posted as an assistant sub-inspector (ASI) in Punjab Police. She joined LBA two years ago. "Till last year, I was shuttling between Ludhiana and Phillaur, where my family lives. This year, I joined a hostel,' she said. "In September, Dhaliwal sir informed me about the trial for the three-year scholarship in Tokyo in the same month. I appeared for the trial that was held in Noida, and cleared it," she said.

The achiever, whose favourite is the first India-born NBA player, Satnam Singh Bhamara, says she got a final confirmation about her selection on March 3. "I am the only girl from India who has qualified for the prestigious school, where budding players from across the world come to learn the game," she said.

"The credit for my making it to the prestigious school goes to the LBA, especially Dhaliwal sir, my coaches Devinder Singh and Jaipal Singh, and coordinator Rohit Bakshi," she said, adding that her parents, Parminder Singh and Jasvir Kaur, too deserved all the praise for supporting her and standing by her choices.

Parents: 'Feels like we are living a dream'

For Punjab Police assistant sub-inspector Parminder Singh, Anmolpreet is more of a son. "Two years ago when she decided to learn the game, we were a bit apprehensive as she had to shuttle between Phillaur and Ludhiana. But we knew our daughter is a strong girl," he said. He added that such was the conviction and passion of her daughter for basketball that she would take two tiffins, one for her lunch at school and the second during training at the academy.

Resource :http://timesofindia.indiatimes.com/city/ludhiana/Teen-basketball-player-selected-for-Tokyo-academy/articleshow/51365785.cms

Britannia Industries Gears up for Big Play in Dairy Segment

Britannia Industries is gearing up for a full-fledged play in the estimated Rs 85,000 crore Indian dairy market as part of its overall strategy to be a total food company. The company will seek board approval within a couple of months for its expansion in dairy segment, which could entail a minimum investment of Rs 300 crore in the initial phase.

"We want to be a total food company and to be a total food company, we can't ignore the large dairy segment. The dairy segment in India is almost Rs 85,000 crore," said Britannia Industries Managing Director Varun Berry.

Elaborating on why it made sense to be a full-fledged player in the dairy segment, he said: "We sell sell dairy products worth Rs 400 crore and for our bakery business we buy dairy products worth Rs 300 crore. Overall, the consumption and sales is almost Rs 700 crore, which is a fairly large number."

When asked how the company is preparing to enter the segment, Berry said: "We have reached a very interesting stage where we have got a fairly good grip on what we need to do to make the plunge in dairy. We just want to make sure that we get all the details together before take this proposal to the
board, which will be in the next couple of months."

The company has also roped in dairy expert, Sarad Garodia, who has joined the company as Business Head Dairy Operations. He had earlier worked for 16 years with Schreiber Dynamix, one of the leading dairy products manufacturers in India.

"He is helping us validate all the assumptions... In the next couple of months we should definitely be ready with the plan. I am pretty bullish on it but it has to pass a few tests because it is going to be a fairly large investment," Berry said.

When asked about investments, he said: "The first phase will be about Rs 300 crore. In the next two or three months we will be able to take a decision on it."

The company today said that its board has approved a plan for demerger of the manufacturing and retails sales divisions of its subsidiary Daily Bread Gourmet Foods (India) to be merged into itself. The step will help it in optimum utilisation of resources, achieve cost saving and economies of
scale, among others.

Resource : http://food.ndtv.com/food-drinks/britannia-industries-gears-up-for-big-play-in-dairy-segment-1275828

Bengali Work Culture: Continuity in Change

Work culture has to come from within”, “China and Japan have progressed owing to their work culture, while we cannot progress as we do not possess it to their level.”
Division Bench of Arun Mishra, Chief Justice, and Justice Joymalya Bagchi of Calcutta High Court, February 8, 2013 during the hearing of a Public Interest Litigation (PIL) seeking the Court’s intervention to maintain normal conditions during the two-day nationwide strike from February 20, 2013 (The Statesman, Kolkata, February 9, 2013)

Long ago Acharya Prafulla Chandra Roy made the following comment about the national character of the Bengalis:

“We should not conceal our national character. Bengalis are quite clever and adept in deceitfulness and cleverness. They even resort to deceitful means in passing the examination. In the field of employment and work this deceitfulness is equally evident—being indifferent to hard work, unwilling to learn that tact of business. Intriguing and cleverness in every sphere—as the saying goes the more you are clever, the more you become destitute—Bengalis are really destitute in all walks of life.”

A true relationship between private interest and public essentials is the foundation of economic development which gets duly reflected in the work culture of a particular place or community. What debilitates the social fabric of West Bengal is its generic failure in instilling a specific consciousness of a functional reciprocity between individual aspirations and public good. The pervasive practices of negligence, avoidance, absenteeism, and lack of seriousness among the entire working community, particularly the officials of public service in Bengal, reflect a dissonance in identifying private interest to be preferably in harmony with a dynamic public space and testify to a firm hold of the untamed notion of one’s own well-being which is completely detached from the collective ambit and remnants. The Bengali’s peculiar worldview misses a very basic point that caring for one’s own well-being can scarcely be devoid of one’s caring for the society and surrounding public— a social trend reinforced by the global consumerism. (Maharatna, 2008)

An all-encompassing indifference, carelessness and indolence towards work and job responsi-bilities characterise the prevailing state of ‘work culture’ of government offices and Public Sector Units of West Bengal. People are commonly believed to be oblivious of punctuality; typically slack on their job responsibilities and duties. The majority of the working population is allegedly habitually late in coming in and early in leaving the workplace; they appear to spend a lot of time gossiping and even socialising within prime duty hours; there is also a common complaint regarding their intermittent disappearance from the office desk on various private and non-official pursuits. All this is popularly perceived as manifestations of the usual ‘work culture’ in West Bengal. (Maharatna, 2001) The Comptroller and Auditor General (CAG) came down hard on the much-hyped ‘do it now’ mantra of the then Marxist Chief Minister, Buddhadeb Bhattacharjee, once again exposing the lethargic work culture prevailing in State Government offices and Public Sector Units of West Bengal. (Goswami, 2007) Ranking of the State of West Bengal in social and economic infrastructure has slipped back during 1981-91—signifying a distinct relative retrogre-ssion in social and economic infrastructure development. (Maharatna,2007) Therefore, decline of work culture is the manifestation of a facade of overall decadence of the socio-economic life of West Bengal.

Roy (1995) tried to explain the nature of ‘Bengali Leftism’ which he holds to be solely responsible for the present state of poor work culture in West Bengal in the following manner:

According to Roy, the primary characteristics of ‘Bengali Leftism’ is showing indifference to, rather ignoring, the formal authority.

Secondly, Marxism-based oversimplified analysis of ‘classified’ society divided into ‘Haves’ and ‘Have Nots’ where being idle at work is a revolutionary step by which the ‘Have Nots’—workers—are teaching a lesson to the ‘Haves’—the entrepreneurs or owners of the business or, for that matter, their representatives.

Thirdly, so far as the role of the revolutionary trade unions are concerned, to achieve the ‘Earned Rights’ is more important for them than doing the work or assigned duty.

A few very common phrases which a consumer or customer citizen listens at any government office or Public Sector Undertaking in West Bengal when she/he interacts with the officials of those organisations for the purpose any work:

“Pare asben. Aaj habena. Ektu byasto achhi.”

(Come later. Today the work cannot be done. I am a bit busy.)

Or

“Deri habe.”

(It will take time to do your work.)

Or

“Onar aste deri habe.”

(The concerned person will be late in coming to the office.)

Or

“Uni aaj asen ni.”

(The concerned person is absent today.)

This environment leads to the formation of ‘vicious circle of poor work culture’ where members of different work organisations reciprocate with each other being charged with a sense of destructive retaliation.

Very peculiarly, the traditional Bengali psyche, influenced by Leftist ideology, considers the idea of improving the standard of living a dishonest one, the archetypal rationale being one honest person cannot be successful and well-off. One should not confuse it with the great ideal of ‘simple living and high thinking’; rather, this is a typical manifestation of the emotional Bengali character romanticising, rather glorifying, poverty under the cover of a pseudo-idealistic romanticised notion choosing an easy escape route from “hard work”—an essential ingredient for an ideal work culture. At the same time the Bengalis are no exception to the general Indian character which has been wonderfully explained by Kakar (1978, 1981):

‘The heightened narcissist vulnerability of the Indian.....a clamour for attention, exhibitionism, hypochondria or in the extreme of psychosis, a cold paranoid of grandiosity.”

A combination of all the aforesaid factors finally leads to the formation of a dehumanised, destructive work culture.

Although seemingly unbelievable, it is, however, a fact that out of 365 days of a year the government or, for that matter, PSU employees enjoy 179 holidays. This can be explained in the following manner:
Nature of Leave    Number of Days
Casual Leave     12
Earned Leave     30
Medical Leave     10
Holiday     16
Restricted Holiday     2
Total Saturdays and Sundays in a year     104
‘Bandh’, Holiday under NI Act, office remaining close on account of the death of important figures     5 (minimum)]     TOTAL     179 Days
Working days left 365-179=186

Source: Panchu Roy, letters to the editor, Desh (Bengali Magazine), 1995

 There is hardly any government office in West Bengal where the office timing is maintained and employees have genuine concern for maintaining office hours. In the decade between 2001 and 2010, no office of the Government of West Bengal remained open for 240 days in a year. (Anandabazar Patrika, February 18, 2011) Irrespective of its political affiliation in West Bengal, the political leadership motivates the workers to make demands and to be aware of their rights but never highlights their duties and infuse in the workers the sense of responsibility and obligation towards work. The trade unions spearhead the culture of getting their demands fulfilled by “stopping” the work.

This idleness, rather inability to work, leads to insecurity resulting in narrow-mindedness, inferiority complex which gets manifested by way “institutionalisation of indecency at the workplace” (as well as in society in general) preventing the constructive approach to work.

It is really a paradox; the people who are very careful, meticulous, vigilant about work and work-related issues in domestic and personal front, at the workplace as government officials the same people are equally careless, negligent, indifferent towards their work.

Now a very pertinent question: has there been any perceptible positive change in the work culture of West Bengal with the change of the political vanguards in the State?

The answer does not carry hope, rather it cannot. Although there are certain indications but how far they turn out to be a reality, marking substantial change in the work culture of West Bengal is quite uncertain. There are sporadic instances of improvement in the employees’ morale and productivity in organisa-tions like the State Transport Corporations, Mother Dairy which may be suggestive of change in specific sectors. However, the government’s propaganda machinery is out to prove the change in work culture with the change of political regime. “There has been no case of strike in the major industries of West Bengal; neither has there been any disturbance in the Tea Plantations. Only three Jute Mills remained closed out of 50 Jute Mills and only four tea gardens remained closed out of 281 tea gardens at the end of the Financial Year 2012-13.” (Labour in West Bengal, 2012-13, Annual Report, Government of West Bengal) According to West Bengal Chief Minister Mamata Banerjee, “The loss in mandays in West Bengal was 66 lakh during 2010-11 and it dropped to 66,000 in 2011-12.” (The Statesman, Kolkata, July 27, 2013)

The above mentioned figures may be indicative of a mechanical change but the question is: how much of this change is spontaneous and how far is it sustainable? Change in political or government structure may initially bring about certain positive outcomes—even it happened in India during the dark days of the Emergency too. But the success of the change depends on certain factors. There is a need to understand whether the change is holistic, spontaneous and deeprooted.

Unfortunately, the study of the social psyche of the Bengalis does not conform to the change syndrome of the post-Leftist era. Because the problem fundamentally does not lie with the prevalent political ideology, it rests with the Bengali psyche.

Bengalis are never good team-workers. Perhaps the Bengali team-work is confined to culture alone—Group Theatre, making great movies but since independence Bengalis cannot boast of producing an institution out of team-work—not an Amul, not a Lizzat Papad, not a JNU, not a Reliance, not even a Gramin Bank samething their Bangladeshi counterparts did.

To understand the phenomena, it is necessary to analyse its socio-psychological roots. Under the caste system, which provided religious sanctity to occupational division of labour based on birth, the members belonging to the upper castes of the Indian society constituted the dominant section. The dominant section was excluded from engaging in any of the difficult, labourious and unpleasant kinds of work but was entitled to a major share of the production from the efforts of the low-caste people who were bound to perform all kinds of work. Most of the work done by the low-caste people was looked down upon as disgraceful activities. While work was a duty of the low-caste people, without any corresponding claim for a return, the upper-caste people were conferred with rights to a share of the produce without any corresponding obligation to work. Thus so far work is concerned, the Indian system turned out to be soft towards the upper-caste people and harsh towards the low-caste people. A work culture with indifference to work on the part of the dominant classes was the outcome of such a system. (Joseph, 2004)

However, the nature of work and the manner of its performance were altogether different under the modern European industrial system. A new work culture with strong commitment to duty, collective orientation to work, diligent observance of work norms etc. were essential for the orderly development of modern industries. Since the industrial system is an offshoot of the technological processes and work practices which prevailed in Europe, a work culture conducive to the development of industries could emerge in the West as a spontaneous evolution from the existing work culture. Besides, the Protestant ethics, which accorded a dignified status to work, facilitated the smooth adoption of such a work culture in the West. On the other hand, India or, for that matter, Bengal had no such experience with machines or factories or the work norms expected under the modern industrial system of production. To the workers who were employed in the newly-opened factories, the work norms and practices expected to be adopted as well as the organisational arrangements under which they were bound to work were altogether new. Along with industries, Western ideas, the philosophies of liberty and equality, institutions like trade unions and ideologies like socialism also arrived in India. (Joseph, 2004)

The interaction of these various parameters forming part of the modern European industrialisation process with the pre-industrial work culture of India did not lead to the emergence of a work culture conducive to the development of modern industries following the European model under Indian conditions. Instead, the organised labour emerged as a dominant class inheriting the work culture of the dominant classes of the past, characterised by a soft attitude towards work. (Joseph, 2004)

Historically Bengalis are knowledgeable, preachers not doers, motivated by self-gain not by collective wellbeing. Even when it comes to self-gain, they are driven by the urge of preservation and recognition not by dedication to a cause. Here very aptly the views of Swami Vivekananda can be applied:

“Being active for self-preservation or recognition and being engrossed in conviction are two radically different processes.’’

The inability to work together forgetting the differences is ingrained in the Bengali psyche. The “great responsibility” of inculcating this practice in every social stratum was carried on by the former Left Front Government. Its main objective was to mobilise “partisan” people—from education to industry, politics to sports, culture to society—no field was an exception to this trend. In fact non-cooperation with each other so that anything great cannot be made or built has become the character of the Bengali community. Bengalis are always scared of credit-sharing.

Allegorically, like crabs they pull down each other. The long Leftist rule has really consolidated these characteristics. The Leftists designed the strategy of encirclement of the government by the party and in this direction they adopted the disintegrative campaign of dividing the society between ‘we’ and ‘they’. As a result of being in power for long the Leftists have helped in spreading this malignancy in the social body of Bengal; it is quite difficult, rather impossible, for the successor government to cure this social malady in a short duration.

Thus, on the floor of State Legislature (Bidhansabha) in the month of June 2014, when the Food and Supplies Minister of the Government of West Bengal, Jyotipriyo Mallick, admits there has been no real change in the work culture under the post-Leftist new political regime, it reflects the hard reality. (Anandabazar Patrika, June 28, 2014)

The society provides the human land to be cultivated for producing an ideal work culture. In the final analysis it can be said that the erosion in the human land of the Bengali society is a fact which cannot be denied.

People are everywhere embedded deeply in long-standing cultural, social and political institutional patterns. The rigidities in the political as well as socio-cultural and economic institutions in the State prompt us to look at West Bengal as a classic case of “institutional stickiness”. Clearly, the right institutions for creating a more enabling environment for work do not seem to exist. Not only do they not exist, but also their growth or emergence is frustrated by every existing institution. During the early 19th century the Bengali intellect learned to raise questions about issues and beliefs under the impact of British rule in the Indian subconti-nent. In a unique manner, Bengal had witnessed an intellectual awakening that deserved to be called a Renaissance in the European style. Today’s West Bengal badly needs another Renaissance. A renaissance which should signify a kind of socio-cultural process associated with the ideas of revitalisation and modernisation of the Bengali community. There must be a genuine call of conscience for every member of the Bengali society to “Arise, awake, and stop not” till the goal of social regeneration is achieved. No political party, no leader, no guru, no god man will lead this task, it should be the outcome of the collective conscience; only a civil society movement can do that. It should usher in a cultural revolution in the true sense of the term, a revolution which must be able to fundamen-tally reconstitute the socio-cultural dynamics of West Bengal keeping its glorious tradition and ethos intact. “Institutional Rejuvenation” must occur following the principles as follows:

1. Restoration of values or Dharma in Society, which includes rule of law;

2. Practice of decency in public and private life; show of mutual respect, empathy and fellow feeling;

3. Striving towards limited rule and show of power, decentralisation of powers at all walks of life with a vibrant, participatory approach instead of centralisation of power and forming a coterie;

4. The role of the state is limited to effective regulation in the interest of free and fair competition as also on considerations of equity, fair play and sustainable growth;

5. Nurturing good and responsible leadership at all levels of society;

6. In the pursuit of the above objectives there should be integration of the goals of the individual and organisation.

[Text of the author’s Research Paper presented at National Conference on Human Resource Development (NCHRD-2015) on February 14-15, 2015; the Conference was organised by the Faculty of Commerce, Banaras Hindu University (BHU) in association with the Indian Council of Social Science Research (ICSSR), Ministry of Human Resource Development (MHRD), New Delhi.]

REFERENCES

“Could Not Change the Work Culture—Admission of Food Minister”, Anandabazar Patrika, June 28, 2014.

Goswami, Tarun (2007) ‘CAG slams poor work culture in Bengal Government offices’, The Statesman, April 6.

“HC comes down hard on poor work culture”, The Statesman, Kolkata, February 9, 2013.

“It’s a mixed work culture”, The Statesman, Kolkata, July 27, 2013

Joseph, K.V. (2004), Culture and Industrial Development: The Indian Experience, New Delhi, Anmol Publications Pvt. Ltd.

Kakar, Sudhir (1978), The Inner World: A Psycho-Analytic Study of Childhood and Society in India, New Delhi, Oxford University Press.

Kakar, Sudhir (1981) (2nd Edition), The Inner World: A Psycho-Analytic Study of Childhood and Society in India, Delhi, Oxford University Press.

Labour in West Bengal (2012-13), Annual Report, Labour Department, Government of West Bengal.

Maharatna, Arup (2001), ‘Work Culture: Myth and Reality’, Economic and Political Weekly, January 6, pp. 17-19 (20).

Maharatna, Arup (2007), ‘Population, Economy and Society in West Bengal since the 1970s’, Journal of Development Studies, Vol. 43, No. 8, pp. 1381-1422, November.

Maharatna, Arup (2008), ‘The Bengali Worldview—The Babu, Private Interest and Public Imperatives’, The Statesman, August 31.

Roy, Panchu (1995), Letters to the editor, Desh (Bengali Magazine).

Roy, Tathagato (1995), ‘Work Culture’, Desh (Bengali Magazine), April 22.

“The Leave Culture during Bandh now Boomerangs for the State”, Anandabazar Patrika, February 18, 2011.

Dr Arunava Narayan Mukherjee is a Professor of Human Resource Management and the Principal of a Management College affiliated to the Maulana Abul Kalam Azad University of Technology, West Bengal.

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