Categories
Food Loss/Waste

10 most commonly produced products out of food waste

The idea of extracting valuable ingredients from waste products and processing by-products is not a new one but new extraction technologies and increasing demand for natural ingredients could open up new avenues for extracting value-added ingredients. Now-a-days, food wastes are considered as a cheap source of valuable components. Exploitation of the entire plant tissue could have economic benefits to producers.

As more legal requirements are implemented, the food industry will be increasingly obligated to prevent waste. The French penalty system (which fines supermarkets for wastage) and Italian incentive system (which rewards them for donating surplus food) actively encourages waste prevention. Similarly, National Environment Agency, Singapore, launched a S$1.76 million food waste fund. The fund aims to help organisations subsidise the cost of installing food waste treatments solutions.

Let’s have a look at 10 most commonly produced products out of food waste:

  1. Juices

A carrot may have two legs, an apple might be dimpled, a cucumber might be slightly discolored — all of this leads to ‘rejectsʼin the food system. Approximately, one-third of a farmerʼs total harvest is lost due to the aesthetic standards of retailers. Contrary to popular perception, these rejected fruits and vegetables (based on aesthetic standards) are as fresh and delicious as their perfect counterparts. By sourcing these misfit fruits and vegetables, companies are developing sustainable juice and beverage production business.

  1. Fruit flour from seed, skin and pomace of fruits

Gluten-free foods could benefit from highly fibrous fruit flours developed from the by-product of juice and cider production. These by-product flours are high in dietary fibre and have high antioxidant properties. Eg. for the gluten-free bread, rice flour and potato starch is blended with the fruit flour and for extruded snacks fruit flour is mixed with maize flour. The blending is done to balance the taste impacts as well as provide key structural requirements needed for gluten-free bakery and snacks products

  1. Antimicrobial and Antioxidant foods
  • Cranberry pomace, a by-product of the juicing process, may be extruded to produce a range of polyphenol-rich ingredients for use in supplements or functional foods. The resulting product could be incorporated into a dietary supplement or explored as a functional snack food. Cranberry has long been considered an effective method of fighting urinary tract infections
  • Antimicrobial and antioxidant potential of ethanolic extract of mango seeds can be used to enhance the shelf life and to increase the antioxidant capacity of fresh-cut mango
  • Phenolic extracts from olive oil mill waste can be used as alternatives to synthetic antioxidants in order to increase the stability of foods. Disposal of olive oil mill waste causes serious environmental problems, as many of its constituents are not easily degradable
  • Onion wastes are an interesting source of phytochemicals, sulphurous compounds and natural antioxidants. Brown skin shows a high concentration of quercetin, aglycone and calcium. Outer scales could be used as source of flavonols, with good antioxidant activity and dietary fibre content 
  • Antioxidant waste from the soy industry could offer a cheap and healthy alternative to synthetic antioxidants that prolong the shelf life of food. The appreciable concentrations of flavonoids, along with phenolic acids and other antioxidant phytochemicals present in soybean might be responsible for their free radical-scavenging activity
  • Industrial by-products from tomato processing contain a significant amount of bioactive compounds that could be used to provide natural and sustainable source of antioxidants for functional food formulation, or to act as preservative ingredients in foods
  • Similar to wine and grape juice, which are known to contain natural antioxidants, up to 50% remain in the waste material left behind when the skins, stems and seeds are filtered
  1. Pectin
  • Each ton of dry cocoa bean produces ten tonnes of cocoa pod husk waste. An average of 10 grams of pectin could be extracted from every 100 grams of husk by-product. This way for each ton of dry cocoa bean production, one tonne of pectin could be extracted from the husk waste. Extraction of pectins from the main by-product of cocoa production would not only help to reduce the costs of the production of cocoa products but would also manage the disposal of this waste in an environmental friendly manner through the use of a natural and safe food additive
  • Waste orange peel is an excellent example of a wasted resource. By volume, half the orange fruit is left as waste once the juice has been recovered. Use of technology could allow the generation of valuable food ingredients like pectin on large scale. The ‘greenʼ approach could help dispose of waste products whilst also turning a profit.
  • Potato pulp is an underutilized material produced in large quantities by potato starch factories. Potato waste could provide ‘new generation’ of food ingredients like pectin. Extraction method promises large-scale extraction of potato fibres rich in pectin and functional hydrocolloids.
  1. Enzymes
  • Through solid state fermentation, it is possible to develop a multi-enzyme solution rich in glucoamylase and protease from waste bread. In the last two decades, solid state fermentation has attracted interest in western countries due to its advantages in the production of secondary metabolites, and production of novel foods. 
  • Waste from pineapple processing could provide a range of value added ingredients for the food industry, including a new source of the enzyme bromelain. Bromelain is an enzyme that is usually extracted from the stems or juice of pineapples. It has been used commercially in the food industry, dietary supplements, and the cosmetics industry – where it is known for meat tenderising, brewing, baking, and for the production of protein hydrolysates, among other things. Waste portions provides a significant yield of the enzyme with peel supplying between 29 and 40% by weight.
  1. High protein High fiber flour
  • Dried distillers grain, produced during ethanol processing has until now only found use in animal feed. The flour produced is a high protein, high fibre (36% protein and 40% fibre) ingredient that could be used as a substitute flour in a number of food applications
  • Peanut meal is the defatted, low-value, byproduct of commercial peanut oil production. Advances in enzyme technologies, coupled with new technologies to remove aflatoxin, may offer a way to produce the by-product meal, which is an excellent source of protein (containing between 45–55%).
  • Mushroom waste can boost fibre and lower glycaemic response in extruded snacks. Stalks and basal clumps retrieved from spent mushroom compost can be refined as a freeze dried powder called mushroom co-product material (MCM). The inclusion of MCM significantly increase the amount of total dietary fibre (TDF) in the extruded snacks
  1. Textiles

Forget about cotton, we could be making textiles from banana, pineapple and coconut.

  • Banana fibre: The fabric is claimed to be nearly carbon neutral and have soft texture. The material is having application in making jackets, skirts and trousers.
  • Pineapple fibre: It is used as an alternative to petroleum-based textiles. The greatest thing is that itʼs made of leaf fibres, a byproduct of the pineapple harvest. The industrial process used to produce pineapple fibre also produces biomass, which can be converted into a bio-fertiliser  and the fibre is also biodegradable.
  • Coconut fibre: A thousand coconuts can produce 10 kg of fibre. A blend of fibre with polyester is particularly good choice for sportswear
  1. Fuel and Fertilizer
  • Organic waste from companies food processing plant can be converted into a renewable natural gas. Organic waste from the plant is converted into biogas through Anaerobic Digestion process. The biogas is then purified to become renewable natural gas which can be used in the same was as conventional natural gas. The renewable natural gas displaces conventional natural gas which is used to support the energy needs of the plant operation. 
  • In addition, a high-quality fertilizer is produced as a byproduct which in turn is used to support healthy growth of local vegetation.
  1.  Molds

The designer custom-made molds with a mixture of agricultural byproducts and mushroom mycelium, can result in lightweight, biodegradable lamp shades. Mycelium is introduced into a mixture of chopped up corn stalks and seed husks, and begins to spread its white fibers and digest it. Once coated in mycelium, the mixture is broken up into particles, which can easily be packed into molds, and left to grow for a few days until it forms a completely solid structure

  1. Fats

Seed waste may be source of new fats. Fat from seed kernel ‘waste productsʼ could provide the food industry with a new source of edible oils. Eg. rambutan seed kernels provide a considerable yield of fat with high arachidonic acid content and that makes the fat highly stable to oxidation. Because of these physical and chemical characteristics, rambutan kernel fat is perfectly suited for the cosmetic and food industries. The increasing demand for oils and fats, whether for human consumption or for industrial purposes, necessitates the search for new sources of novel oils and fats. Fat extraction from seed waste could be as high as 37% by weight.

Categories
Food Processing Strategy

10 major reasons of business failure in food processing sector

When it comes to business, food processing seems to be an obvious choice for most of the entrepreneurs. There could be a considerable number of reasons for this apparent choice. Some of the prominent ones could be:

  1. Our exposure to a range of food available in our vicinity and our food consumption habits.
  2. Media speaks a lot about food losses and food wastage in the developing and developed world.
  3. A latent and unsatisfied demand because of demand-supply mismatch.
  4. Entry of new product lines or brands in the market on a regular basis.

Despite of so much of an unmet demand and huge requirements of food for consumption, it’s difficult to understand why food processing or food related businesses fails. During the research, there were some interesting facts which came across and 10 major ones are discussed below with the list of companies who were failed in the process:

1. Raw material availabilityAngas Parkwas was active in the dried fruit processing business with its operations in the souther Australia. Due to decrease in the number of big dried fruit growers, they were forced to produce less, which further led to the closure of the unit.

2. Cheaper imports:

McCain Foods (Australia)was forced to close its potato processing plant because of cheaper imports of finished products. Input costs (potatoes, labor and electricity) were steadily increasing for potato processing and that led to surplus capacity and higher unit costs compared to the imported products. Losing competitiveness on unit economics and low prices of imported products made McCain unit unviable to sustain in the long term.

Rol-Land Farms Group (US)group was active in mushroom processing business in Freetown, US. Increased labor and raw material costs with fall in margins due to market competition made mushroom  processing unprofitable, further leading to the closure of plant.

3. Regulatory environment: Heinz was manufacturing tomato ketchup, baby foods, BBQ sauce and other products in Ontario, Canada. Canada passed more stringent water and labor regulations leading to spike in prices of raw material. Neighbouring countries with less stringent norms like Chile and US had cost competitiveness over the domestic produce. This made Heinz products unviable and led to the closure of a 104 year old plant. Though this blow made Canadian authorities to think of a national food strategy to ensure Canadians have access to fresh Canadian products but it was too late.

4. Margins: Morrisons, Bos Brothers Fruit & Vegetables BV (a part of WM Morrisson Supermarket, the Netherlands) was into international trade in fruit, vegetables, flowers and plants. They were forced to terminate the company because of stiff competition from discounters like Aldi and Lidl.

5. Violence:

Stanfilco (the Philippines) was managing a 1000 acres banana plantation in the Philippines. Multiple violent incidents from armed lawless groups lead to the decision of closure of operations.

Nakashin Davao International (a Japanese company) closed down its frozen fruit operations in Davao city (the Philippines). The reason for the closure was labor agitation. Workers were demanding reinstatement and regularisation which was not acceptable to the company.

6. Consumer demand:

Ready Pac Produce Inc. (US) closed down the Salinas Valley Plant because of slow down in consumer demand for iceberg lettuce.

Treehouse Foods, Inc. (US) closed two of its plants at Azusa (California) and Ripon (Wisconsin). Declining consumer demand led to the discontinuation of the manufacture of sugar wafer products (bars, cookies and snacks).

7. Centralisation: Companies are more interested to manage fewer plants because of higher economies of scale. This concept leads to centralisation of operations with higher capacities. Saputo (Canada) closed down three of its milk processing facilities in eastern Canada and Saputo (Germany) closed down its cheese manufacturing unit in Quebec, Germany to increase capacity utilisation at other units. The efforts were meant to pursue additional efficiencies and lower costs. The process created more centralised operations with higher efficiencies.

8. Capacity underutilisation: . Economic unviability of the plant due to under-utilized capacity lead to the closure of Del Monte Foods (US) vegetable production and canning facility in Sampson County.

9. Single customer: Lonrho Fresh (South Africa) was into cut fruit and vegetable business and working on very thin profit margins. 70% of its sales were dependent on single retail player’ Pick and Pay’. Losing out some big business from their biggest customer, ‘Pick and Pay’ made the business unviable for Lonrho Fresh.

10. Dependability on subsidiesTINE (Norway) decided to close its facilities of Jarlsberg Cheese in Norway as export subsidies in Norway are being phased out by 2020. Increase in domestic competition and loss of export subsidies were expected to make TINE operations inefficient in Norway.

Above examples illustrates the importance of supply, demand, efficiencies, diversification, human resource, subsidies, trade, trends, consumer health and other critical factors in determining the viability of a unit.

For running a food processing plant, everything has to be well organised and planned, otherwise a single problem could make you out of the business.

Categories
Milk

Consumer preference for Milk in Europe and America

Americans prefer chilled milk, while Europeans store their milk outside the refrigerator. The difference arises due to different taste/ flavor preferences of consumers and the pasteurization technologies used by dairy industry in these two geographies. Pasteurization, here means, heat-treatment process that destroys pathogenic microorganisms in certain foods and beverages.The treatment also destroys most of the microorganisms that cause spoilage and so prolongs the storage time of food.

In the U.S. and Canada, milk manufacturers use high-temperature short-time pasteurization, or HTST. HTST is efficient but results in milk that expires relatively quickly—usually within a week and requires storage in a refrigerator. That’s because the temperature used (about 161°F for 15 seconds) is enough to kill most bacteria, but some will proliferate if the milk hangs around long enough.

In Europe, another technique called ultra-heat-treated pasteurization, or UHT, is used. Milk is exposed to higher temperatures of 284°F for three seconds, decimating virtually all the bacteria and making it shelf-stable for a couple of months if left unopened. (Once opened, it has to be refrigerated.) Because it’s “cooked” at high heat and burns off some of the sugar, UHT milk also has a slightly different flavor.

Read more at MentalFloss

Categories
Investments Strategy

Brand divestment: Hershey’s plans to sell KRAVE, Scharffen Berger and Dagoba

Hershey is looking to divest its high-flying jerky brand KRAVE along with its artisan chocolates Scharffen Berger and Dagoba, Hershey CEO Michele Buck told analysts. KRAVE, a high-end jerky and meat snack company that Hershey acquired for $220 million in 2015, had failed to meet company’s expectations.

These are great brands that continue to resonate with consumers, but they require a different go-to-market model. These brands are are far more niche with much smaller market shares.

Hershey is best known for its mainstream brands that resonate with a broader segment of consumers. It makes sense for Hershey to focus its attention in areas where it has far more expertise and can promote and innovate the brands to ensure they resonate with a broader-range of consumers. The company needs to better prioritize its resources moving forward.

Read more at NOSH

Categories
Agriculture

Urban Agriculture: A national strategy in works for Luxembourg

Urban farming or urban agriculture is essential not only as an alternative to traditional production, but as an innovative solution to promote the circular economy and thus reinvent our cities. The Ministry of Environment, Climate and Sustainable Development, NEOBUILD and the Council for the Economic Development of Construction (CDEC) presented on the occasion of the conference “Living City: urban farming & revegetation of buildings” on 23 May 2019 the national strategy “Urban Farming Luxembourg”.

Urban farming, as a policy, could lead to effective balancing of economic and social interests while minimizing trade-offs. The benefits conceptualised in favour of the policy are:

  • Development of social ties by bringing living spaces, serving as a place of training, promoting reintegration and well-being of citizens.
  • Fulfilment of ecological functions like regulation of microclimates, air purification, preservation of biodiversity etc.
  • Stimulation of local economy by new activities where money stays longer in the local circuit.

Local production will also mitigate reliance on imports and serves as a buffer during supply disruptions to import sources, which contributes to nation’s food security.

Read more at UrbanFarming.LU

Categories
Food Loss/Waste

Washington growers have a billion pounds of potatoes that they can’t sell

Washington growers have a billion pounds of potatoes sitting around that they can’t get rid of because restaurants don’t need them. Ninety percent of Washington potatoes go to processors. Due to this lockdown, processors and restaurants are closed. This lead growers to the brink of financial collapse. When all of that shuts down, it has a huge ramification for all the processors and the growers.

There are 4 billion pounds of potatoes already harvested. About 70% of that will be shipped overseas, but that leaves a billion pounds in storage. Those farmers that can sell their product have seen the wholesale price fall below the costs to produce them.

Read more at MyNorthWest.com

Categories
Trade

European Commission warns against shift towards protectionism in agri-food sector

Uncertainty about food availability sparked a wave of export restrictions, creating a shortage on the global market. Countries across the EU are increasingly considering protectionist measures, promoting national agri-food products and discouraging imported products. There has been a sequel of instances across the EU, particularly in Bulgaria, Czech Republic, Germany, France, Austria, Greece, where concerned ministers urged either to increase consumption of local products or to stop the import and sale of fruits and vegetables until locally grown supplies are exhausted.

That has prompted the European Commission to express concern about the effect this would have on the free movement of goods and services in the internal market, knowing the fact that no member state has the capacity to meet all its own needs for all products. The European Commission is “urgently addressing intra-EU export bans and restrictive measures by member states,” and could resort infringement proceedings against non-compliant member states.

Now is not the time for restrictions or putting in place trade barriers. Now is the time to protect the flow of food around the world.

Read more at Euractiv

Categories
Food Safety

Food safety violations: Chipotle to pay $25 million fine

Chipotle Mexican Grill Inc. will pay $25 million to resolve criminal charges related to the company’s involvement in foodborne illness outbreaks that sickened more than 1,100 people between 2015 and 2018, according to the Department of Justice. This case highlights why it is important for restaurants and members of the food services industry to ensure that managers and employees consistently follow food safety policies. According to the factual statement in the DPA, which the company agreed was true, Chipotle was implicated in at least five foodborne illness outbreaks between 2015 and 2018 connected to restaurants in the Los Angeles area, Boston, Virginia, and Ohio.

For example, in December 2015, a norovirus incident at a Chipotle restaurant in Boston sickened 141 people. In July 2018, approximately 647 people who dined at a Chipotle restaurant in Powell, Ohio reported illness related to Clostridium perfringens, a pathogen that grows rapidly when food is not held at appropriate temperatures.

This incident clearly implicates that the priority to produce food economically and efficiently comes with a strong reason to produce safe food. Losses due to lost revenue in the case of food safety issues may far exceed the cost of maintaining safety. Lost revenues includes a missed opportunity to sell the products, cost of discarded products, business interruption, customer reimbursement and the biggest one is loss of credibility among the consumers.

Read more at AgDaily

Categories
Food Laws

Food Labels – often misleading and don’t convey ingredient info.

The internationally accepted definition of a food label is any tag, brand, mark, pictorial or other descriptive matter, written, printed, stencilled, marked, embossed or impressed on, or attached to, a container of food. Food labelling includes any written, printed or graphic matter that is present on the label, accompanies the food, or is displayed near the food, including that for the purpose of promoting its sale or disposal. People look at food labels for a variety of reasons. But whatever the reason, many consumers would like to know how to use this information more effectively and easily.

To address concerns about confusing labels, the FDA issued a report in 2016 recommending that consumers not rely on product names, pictures on the packing, or the taste of the product to determine what it contains but instead examine the ingredient list. FDA concedes that its labelling requirements for front of packages… do not clearly convey product and ingredient information to consumers. For example:

  1. If you’re digging into a bowl of cereal that has the word “maple” on the package, and even images of maple leaves, you may think you’re eating a product that contains maple syrup. But not so fast—the taste may come from added flavors.
  2. The same goes for the lemon drink you’ve made from a package picturing fresh lemons. You probably think it was made with lemons, but it may be flavored with natural or artificial lemon flavor.

In 2019, FDA analyzed federal law for drinks that contain or purport to contain juice by using LexisNexis and FDA’s Web site, identified top-selling children’s “juice” drinks in fruit punch flavors, gathered labels in store and online, and extracted data from the principal display and information panels. The conclusion of study stated that, “Principal display panels rendered it difficult to differentiate among product types, identify those with added sweeteners, and distinguish healthier products. Revised labeling regulations are warranted to support public health.”

Read more at AJPH and US FDA

Categories
Intellectual Property Rights

Geographical Indications: Economic impact on agri-food products

As defined by WIPO, a geographical indication (GI) is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin. In order to function as a GI, a sign must identify a product as originating in a given place. In addition, the qualities, characteristics or reputation of the product should be essentially due to the place of origin. Since the qualities depend on the geographical place of production, there is a clear link between the product and its original place of production. Similar to GI, European Union also protects Traditional Specialities Guaranteed (TSG), highlighting the traditional aspects of a product, such as traditional production methods or traditional composition, without being linked to a specific geographical area.

A study published by the European Commission, which collected the economic data from each of the 3,207 GI protected products from across the EU, found that GIs represent a sales value of €74.76 billion. The sales value of agricultural products and foodstuffs labelled as TSG were found to be worth €2.3 billion. Out of the 3,207 product names registered as either GI or TSG in 2017, 49% were wines, 43% agri-food products and 8% spirits drinks.

It concluded that the sales value of a product with a protected name is on average double that for similar products without a certification. This is due to the high quality and reputation of these products and a higher willingness of consumers to pay for authentic products. Example of GI include champagne, which is produced from grapes grown in the Champagne region of France.