JANUARY - 2021

processing & packaging 51

REFUCOAT develops hygienic recyclable
food packaging

Lorena Rodríguez Garrido, Packaging
Researcher at AIMPLAS and scientific
co-ordinator of REFUCOAT, said: “Pack-
aging must be recyclable and must also
maintain the barrier properties that help
protect packaged food. Current packaging
has a complex multilayer structure and
is made from non-renewable sources.
It provides all the protective functions
but is difficult and expensive to recycle.
REFUCOAT aims to replace current pack-
aging with more sustainable, better-per-
forming alternatives.”

The European REFUCOAT Project to package fresh chicken meat, cereals and High-performance packaging design
has developed sustainable active snacks.
packaging solutions to address the The REFUCOAT Project focused on three
challenge set by the European Union for One of project’s innovations was the for- main areas: developing active coatings for
2030 by researching packaging solutions mulation of bacteriophage-based coatings food packaging films that use bacterio-
that could positively impact the reduction that considerably reduce the proliferation phage organisms; using low-quality flour
of food waste. of Salmonella bacteria in chicken breast as a base to produce PHA,; and developing
samples packaged in a modified atmo- an efficient production process for PGA,
Specifically, innovative, efficient sphere. The project successfully addressed a completely biodegradable material with
bioplastic production processes were one of the problems faced by packaging excellent water barrier properties. Until
developed to package food using renew- with barrier properties: in order to protect recently, this solution had been too ex-
able materials that are also recyclable food, packaging must be made up of com- pensive to use to replace fossil fuel-based
and could replace conventional fossil plex multilayer structures that are either materials.
fuel-based materials. These bioplastics difficult or costly to recycle. However, all
include polyhydroxyalkanoate (PHA) and the packaging systems developed by the The REFUCOAT Project ended in October
polyglycolide (PGA), which were used to REFUCOAT Project can be recycled and/ 2020 after successfully validating all the
develop three different bio-based active or converted into compost, making them a new packaging structures and compar-
packaging systems, specifically designed promising sustainable alternative. ing their performance with metallised
packaging. Tests were also carried out to
compare the products’ shelf life and biode-
gradability with those of current conven-
tional packaging on the market.

www.eppm.com

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52 sustainability

SUSTAINABILITY

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sustainability 53

Bühler and DIL join forces to accelerate
sustainable food production

Swiss technology group Bühler AG
and the DIL Deutsches Institut for
Lebensmitteltechnik e. V., a re-
search institute focusing on food techno-
logy and food science, announced on Jan.
11 that they have teamed up to develop
new production technologies for healthy
and sustainable food products, focusing
on alternative protein-based products with
a lower environmental impact than the
carbon-dioxide-heavy meat value chain.

By 2050, in order to meet the needs of than the animal meat value chain. The many, provides food safety labs, pilot
the world’s growing population, farmers companies said it is therefore essential plants and research capabilities. Over 200
will have to produce more food from 35% to explore and identify alternative and scientists and technologists from diverse
less agricultural land. With an additional underused sources of protein and develop fields of expertise collaborate with a
250 million tonnes of protein required efficient technologies to convert these into growing number of spin-off and startup
per year, the pressure on alternatives to attractive, marketable products. Consumer enterprises to develop solutions that im-
animal-based proteins is mounting. Given demand for sustainable and healthy food prove food safety and quality.
the environmental impact of the current products has been growing in recent
system, there is growing consensus that years, underlining the opportunity for the “With DIL, we have found a great partner
the food industry must change course food industry to make a positive impact. who can provide a food grade test and
immediately. production lab combined with extensive
The companies noted that a key tech- analytical services,” said Christoph Näf,
The change is already underway in many nology to unlock this opportunity is head of Business Unit Human Nutrition,
parts of the food value chain, but to drive extrusion. Highly versatile, it enables Bühler.
it faster, partnerships are essential. the formation of texturized proteins
with different structures from different The partnership will create a platform
Announcing a new strategic partnership raw materials. High moisture extrusion to support startups, existing customers,
between Bühler AG and DIL, Ian Roberts, enables the conversion of plant proteins and future partners to develop new end
chief technology officer, Bühler, said: “If into food products with textures similar to products and generate synergies, the
we are to feed 10 billion people in 2050 meat. It is a technology in which Bühler is companies said.
and if we are to be able to do this and a market leader.
mitigate the climate change increase that “We continuously try to achieve a better
we currently see, we need to build strong “With Bühler’s expertise in extrusion, but understanding of the structure and func-
partnerships with purpose and we need to also in other engineering disciplines, such tionality of foods, which we consider is
build those in areas where we can drive as milling, plant proteins, and powder the key to innovative solutions for food
major impact.” handlings, we will be able to provide new processing,” said Volker Heinz, director
and customized solutions for our clients and chief executive officer, DIL.
The partnership to accelerate research and for the rapidly changing market,”
and the development of new solutions said Volker Lammers, head of Research “On this track, we are excited to have
for more sustainable protein production Platform Process Engineering, DIL. “With Bühler as a partner on our side,” he said.
comes at a critical time, said Volker Bühler, we have a competent partner “Together we will explore the many pos-
Heinz, director and chief executive of- along the full protein value chain.” sibilities of technological interventions to
ficer, DIL. get our food system on the track towards a
The DIL campus in Quakenbrück, Ger- sustainable future.”
“Within our planetary boundaries, there is
no room for a further expansion of animal
protein and fat production,” he said.

New sustainable plant-based proteins have
significantly less environmental impact,
less land use, and a lower CO2 footprint

www.fooddrinkinnovations.com JANUARY - 2021 Food Drink & Innovations

54 sustainability

Danone North America Expands the Most
Comprehensive Regenerative Agriculture Program
in the Dairy Industry

Danone North America, the pur- “At Danone, we believe that regenerative Biodiversity, Water, Carbon and Economy
pose-driven food & beverage agriculture – a series of innovative farming & Productivity. The company partners with
leader with a diverse portfolio of practices that help to lock carbon in the Sustainable Environmental Consultants and
dairy and plant-based brands, continues to ground where it belongs – is a key solution its EcoPractices® platform to conduct an
expand its regenerative farming program, to tackling climate change. We are proud to in-depth field-level sustainability analysis
currently the most comprehensive regen- be making real progress with our regen- and reporting on soil health and related
erative agriculture dairy program in the erative farming partnerships and that, to- goals leading to continuous improvement
U.S. The company unveiled today its year gether with our farmers, we are leading the on enrolled farms. The year three assess-
three results from its multi-year, multi-mil- way with the most comprehensive program ment revealed key performance updates for
lion-dollar soil health research program. of its type in the U.S. We hope our work the following environmental impact areas:
Launched in 2017, the soil health initiative inspires others to join and drive an even
brings together experts and academics to bigger impact.” Protecting and restoring soil: On the
build best-in-class soil health programs third year of the program journey to
to benefit farms and communities across The goal of Danone’s soil health initiat- enhance organic matter in soils, farmer
the Danone North America portfolio. Now ive is to improve organic matter in soils partners plant cover crops on 64% of the
completing its third year, the research leading to increased carbon sequestration Program acreage versus the national aver-
program has nearly tripled to more than and improved yields, reduce chemical use, age of 5%, and practice reduced or no till
82,000 acres, inclusive of 28,000 organic restore biodiversity, and enhance soil water management practices on 77% of the Pro-
acres, across the U.S. and Canada, and has holding capacity, leading to improved farm gram acreage versus the national average
recently expanded into almond orchards in economic resilience over the long-term. of 33%. 93% of the fields in the program
the central valley of California. In year three of the five-year soil health had a positive Soil Conditioning Index
program, Danone North America evaluated value in the third year of the program.
Nicholas Camu, Vice President of Agri- progress with a focus on five key areas
culture at Danone North America said: of regenerative agriculture: Soil Health, Fostering biodiversity with species,

Food Drink & Innovations JANUARY - 2021 www.fooddrinkinnovations.com

sustainability 55

varieties and wildlife: To support wildlife result of regenerative agriculture practices. investment and impact model that will sup-
habitat and pollinators, like bees and port farmers and their partners, confirming
butterflies, that are critical to agriculture – In 2020, the program has grown by 64% lasting impact – both economically and
and ensure a more resilient and sustainable and enables Danone North America to environmentally.”
supply for farmer partners – Danone North continue supporting farmers in implement-
America doubled the number of cover crop ing innovative farm management practices. One of the farms active in the soil health
and cash crop species, up to 32, including Over the next two years, the company program over the last three years is
grasses, legumes and brassicas to promote aims to collaboratively establish goals with VanTilburg Farms in northwestern Ohio,
crop diversity. farmer partners, pilot innovative techno- a co-owner of MVP Dairy, LLC. Boyd
logies to drive change, launch industry VanTilburg started farming in 1902 with
Preserving and protecting water leading tools and programs to encourage 80 acres, and today his great-grandsons,
systems: Enhancing soil water holding greater regenerative management adoption, Matt, Kyle and Luke VanTilburg, are now
capacity through improved soil health man- finance projects to accelerate more impact, farming over 4,000 acres of non-GMO
agement and protecting our water supply and achieve enrollment of 100,000 acres crops for MVP Dairy, LLC, all of which
through technologies such as soil moisture under the regenerative agriculture program. are part of the Danone North America soil
probes, filter strips and saturated buffers. health program.
“We’re now three years into our five-year
Reducing Greenhouse Gas emissions soil health research program and have “As a family that has been farming for
and sequestering carbon: To date, Dan- established a solid foundation of research more than 100 years, we are committed to
one North America’s soil health program and data down to the individual field level. using conservation practices to preserve
has reduced more than 80,000 tons of Our farmer partners are very receptive and the land for generations to come,” said
carbon dioxide equivalent and sequestered engaged in our program, and this year we Kyle VanTilburg of VanTilburg Farms and
more than 20,000 tons of carbon through welcomed several new farmer partners MVP Dairy, LLC. “We are fortunate to
regenerative soil health practices, pro- to the program with the expansion into work directly with Danone North America
gressing efforts toward our global net zero almond orchards and increasing our acres to continuously assess and improve the
carbon by 2050 goal. with organic dairies,” said Ariel Wilde- soil health of our farm, allowing us to
nauer Desmarais, Senior Director of Agri- build-in regenerative agriculture practices
Ensuring ongoing viability: The program cultural Sourcing, Danone North America. to drive returns over the long term. We
monitors improved yields and efficiency, “Over the next two years, we look forward are proud of the progress to-date from
and supports the farmer economic value to taking our findings, quantitative out- this comprehensive program and encour-
proposition, achieving lower input costs as- comes, and improvement plans, to increase age others to join us and secure both the
sociated with reduced nutrient application, regenerative agriculture practices in the financial and environmental future of their
supporting farm economic resiliency as a field and launch a comprehensive financial farms.”

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56 sustainability

Tetra Pak uses connected packaging
to explain sustainability plans but food
safety a top priority

about the games and to educate consumers
on Tetra Pak’s sustainability.

In total Appetite delivered Tetra Pak the
game design, game development and build,
social media assets and access to an admin
dashboard that can be used for data collec-
tion. Results have been quite impressive
and continue to grow. So far there have
been 43,397 scans on packaging, 49,584
users played the game, which lead to
513,951 website page views with 2 minutes
average time spent on the page.

Earlier, in November Tetra Pak unveiled
the findings from its 13th global research
study, in partnership with Ipsos, showing
that food safety is a major issue for society.
The same number of respondents believe
that COVID-19 is a “real threat.”

Tetra Pak is the world’s largest food form and educate consumers about its Concern for the environment remains
processing and packaging solutions sustainable packaging efforts in a fun strikingly powerful, pointing towards a di-
company, is working closely with and engaging way, through gamification. lemma in the consumers’ minds as they try
its customers and suppliers to provide safe Appetite achieved that through connected to balance the critical priorities of human
food. The Brand has been focusing on packaging, by creating games that were existence through safe food and sustainab-
sustainability and working on innovative found through the scanning of QR codes ility of the planet we live on.
ways of incorporating it into all aspects of on the Tetra Pak packages. Additionally
its processes. It wants to take consumers it produced social media templates to be In addition 77% of consumers see food
along this road by sharing these efforts and shared on Tetra Pak’s social channels. waste as a key challenge while 60% of
educating them on environmental issues. consumers globally say they worry about
The games had the themes of Renew, Re- the food they buy being hygienic and safe.
For the second year in a row, Appetite duce and Recycle, with three games related A majority not only believe that improving
Creative Solutions has help them spread to these topics. They were all hosted on food safety is the responsibility of man-
and promote their sustainability message, one URL, so every time someone visited ufacturers, they see it as the number one
by merging Tetra Pak’s commitment to the the URL by scanning the QR code, it issue that companies need to tackle now
environment, with Appetite’s expertise in would randomly and automatically load a and in the future.
web app creation and marketing. different game, so guaranteeing a different
experience for every visit. The social me- www.aipia.info
Tetra Pak wanted to find a way to in- dia templates helped to generate awareness

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58 SAFETY/HYGIENE & REGULATIONS

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SAFETY/HYGIENE & REGULATIONS 59

Quality Council launches Marico to give
scheme for hygiene-rating audit ‘pure honey
agencies certificates’

In a bid to increase the number of recognised hygiene-rating audit agencies in the Consumer goods maker Marico has
country, the Food Safety and Standards Authority of India (FSSAI) said that the started a consumer communication
Quality Council of India (QCI), at its behest, has come out with a scheme for the exercise encouraging consumers to
approval of hygiene-rating audit agencies. “receive their own” Saffola honey certific-
ate for every bottle they buy, the company
This is being done after the FSSAI launched a certification system for restaurants, announced. The company said the certificate
hotels and cafeterias among others under its ‘Food Hygiene Rating Scheme’. Under is an assurance that the brand “goes through
this initiative, these food establishments will be rated based on food hygiene and 60+ quality checks”.
safety parameters by recognised hygiene-rating audit agencies. The food safety
authority believes this will enable consumers to make informed decisions about “Saffola Honey is manufactured at a USFDA
consuming food at outlets that have higher hygiene ratings and also incentivise food registered plant and compliant with paramet-
establishments to improve their hygiene ratings. ers mandated by FSSAI (Food Safety and
Standards Authority of India),” it said in a
“The hygiene rating will be in the form of a smiley (1 to 5) and the certificate should statement.
be displayed prominently in the consumer-facing area. The recognised hygiene-rat-
ing audit agencies will be responsible for verifying compliance with food hygiene The packaged honey category has been in
and safety procedures laid by the FSSAI and get hygiene ratings,” the food safety the midst of controversy in recent weeks,
authority said in a statement. after research and advocacy organisation
Centre for Science and Environment (CSE)
Arun Singhal, CEO, FSSAI, said, “The Hygiene Rating Scheme can be instrumental said in a report that the honey sold by ten
in creating awareness amongst the consumers and developing a culture of self-com- brands including Dabur, Patanjali, Zandu,
pliance amongst food business operators. It will improve the quality of the food Hitkari and Apis Himalaya are adulterated
supply and increase demand as well. I urge all eligible food businesses to implement with sugar syrup. The companies have
the Hygiene Rating Scheme in their premises.” denied CSE’s findings, saying that their
brands conform to standards set by the food
Currently, the scheme is applicable for food service establishments such as hotels, regulator. The CSE report cleared Saffola,
restaurants, cafeterias, dhabhas, sweet shops, bakeries and meat retail stores. Markfed Sohna and Nature’s Nectar.

Adil Zainulbhai, Chairman, QCI, said that the scheme will help in improving the Marico chief operating officer Sanjay Mishra
confidence of the Indian consumer and food service operators in the basic hygiene said in the statement: “Every batch of
and quality of the food. “These kinds of standards and conformity assessment always Saffola honey is independently tested using
lead to an improved demand for the food service outlets and improved confidence NMR (nuclear magnetic resonance) techno-
among the consumers,” he added. logy.” The company launched honey in June
this year, amid the pandemic which fuelled
category sales to high double digits.

The foods regulator has said it is closely
examining the findings submitted by CSE
and considering evolving guidelines for the
category.

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60 SAFETY/HYGIENE & REGULATIONS

FSSAI notifies standards for fortification of
processed food products

products with iron, folic acid, zinc, vitamin
B12, vitamin A, among other micronutri-
ents. The notification has defined the levels
of these vitamins and minerals per 100 gm.
For instance, iron levels have been set at
1.4-1.7 mg per 100 gms of cereals.

These norms are part of the Food Safety
and Standards (Fortification of Foods) First
Amendment Regulations, 2020, and will
come into effect from July 1, 2021.

The packet of noodles, pasta or rusk or fortified with permitted micronutri- Similarly, permissible levels of nutrients
that you pick up may soon come ents and additives as specified under the such as iron, zinc, vitamin B1, vitamin
with added vitamins and minerals. Food Safety and Standards (Food Product B12 and vitamin B3 have been specified in
After setting fortification standards for Standards and Food Additives) Regulation, the regulations for biscuits, rusks, breads
staples, the Food Safety and Standards Au- 2011,” stated the latest notification. and buns. “Fruit juices when fortified shall
thority of India (FSSAI) has notified norms contain Vitamin C at the levels of 6-12 mg
for permissible levels of micronutrients for Permissible levels per 100 ml,” the regulation added.
fortifying processed food products such as The FSSAI has restricted the amount of
breakfast cereals, biscuits, breads, rusks, fortification that can be added to 15-30 Already, many packaged food companies
pasta, noodles, buns and fruit juices. per cent of the average daily dietary intake sell products such as noodles and biscuits
levels. “The Fortified Processed Food shall fortified with vitamins and minerals. They
Companies that make such products can provide 15-30 per cent of the Indian adult will need to ensure they are in compliance
fortify them with micronutrients volun- RDA (Recommended dietary Allowance) with the norms by next year.
tarily. Also, products that are high in fat, of micronutrient, based on an average
salt and sugar will be “excluded” from the calorie intake of 600 kcal from processed Earlier this month, the FSSAI had also
fortified processed foods category. foods (approximately a third of daily en- released a draft notification seeking stake-
ergy requirement for an adult),” it said. holder comments on making fortification
“Fortified Processed Foods may have with vitamin A and vitamin D mandatory
fortified staples as raw materials and/ Companies will be able to fortify the for edible oils and milk.

In 2018, FSSAI had notified standards of
fortification for five staple product categor-
ies — milk, edible oil, rice, flour and salt.
It has also launched the ‘F+’ logo to be dis-
played on labels of fortified food products
for easy identification by consumers.

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SAFETY/HYGIENE & REGULATIONS 61

Food service FSSAI reduces trans
establishments to mention fat levels in food from
calorific value in menu 5% to 3%
card: Labelling & Display
norms

Food service establishments with central license or outlets at 10 or The Food Safety and Standards Authority of India
more locations will have to mention the calorific value (in kcal (FSSAI) has capped the amount of trans fatty
per serving and serving size) against the food items displayed on acids (TFA) in oils and fats to 3% for 2021 and
the menu cards or boards or booklets, according to the government of 2% by 2022 from the current permissible limit of 5%
India’s newly notified labelling and display regulations. through an amendment to the Food Safety and Standards
(Prohibition and Restriction on Sales) Regulations.
“Additionally, reference information on calorie requirements shall
also be displayed clearly and prominently as “An average active adult The country’s food regulatory body notified the amend-
requires 2,000 kcal energy per day, however, calorie needs may vary”,” ment on December 29, more than a year after it issued a
the notification said. draft on the subject for consultation with stakeholders.
The revised regulation applies to edible refined oils,
The Food Safety and Standards Authority of India (FSSAI) was in the vanaspati (partially hydrogenated oils), margarine,
process of overhauling the labelling regulations for packaged food bakery shortenings, and other mediums of cooking such
products, which have now been notified. as vegetable fat spreads and mixed fat spreads.

The notification further states that, “E-commerce Food Business Oper- Trans fats are associated with increased risk of heart
ators shall get the above mentioned information from respective Food attacks and death from coronary heart disease. As per
Business Operators and provide on their website wherever applicable.” the World Health Organisation (WHO), approximately
5.4 lakh deaths take place each year globally because
The regulation has, however, done with the proposed colour-coded of intake of industrially produced trans fatty acids. The
labelling which was intended to enable consumers to identify products WHO has also called for global elimination of trans fats
that are high in fat, salt and sugar (HFSS) products, according to the by 2023.
newly notified labelling and display regulations. The proposal had
raised concerns that if implemented, it would require majority of “The FSSAI rule comes at the time of a pandemic where
products to display red-colour coding on their labels. the burden of non-communicable diseases has risen.
Cardiovascular diseases along with diabetes are proving
Through these regulations the food regulator has for the first time fatal for COVID-19 patients,” says Ashim Sanyal, Chief
defined children for the packaged food industry. Operating Officer of Consumer VOICE, adding that the
regulation must not be restricted to oils and fats, but
“Children or child” means a person under the age of 18 years as defined must apply to all foods. “Hopefully, FSSAI will address
in Juvenile Justice Act, 2015. Explanation- The applicability of the age this as well before January 2022 to eliminate chemical
limit for specific category of food may be indicated in the relevant reg- trans fatty acids from the Indian platter.”
ulation, under the broad category of children,” the newly notified Food
Safety and Standards (Labelling and Display) Regulations 2020 said. While the regulation comes into effect immediately, in-
dustry players were made to take a pledge back in 2018
www.fooddrinkinnovations.com that they would comply with WHO’s call for action to
reduce TFA by 3% by 2021 allowing them three years to
comply with the latest regulation.

It was in 2011 that India first passed a regulation that set
a TFA limit of 10% in oils and fats, which was further
reduced to 5% in 2015.

JANUARY - 2021 Food Drink & Innovations

62 SAFETY/HYGIENE & REGULATIONS

FSSAI asks States Food Commissioners to
crackdown on spices adulteration

Food regulator FSSAI asked state media regarding the sale of adulterated drive to check the adulteration of com-
food commissioners to conduct spices in domestic market. As per one such monly used spices like haldi, dhaniya, lal
effective enforcement drive to check report, the spices like dhaniya powder is mirch powder etc in wholesale markets/
adulteration in spices. In a letter to Com- being adulterated with bajra and dhaniya mandis under their jurisdictions.
missioner of Food Safety of all States/UTs, stem whereas turmeric powder is being
the Food Safety and Standards Authority adulterated with broken rice which is “Further, the necessary action as deemed
of India (FSSAI) said that there have been mixed with yellow colour,” FSSAI said in fit may be initiated against the defaulting
media reports about sale of adulterated the letter. Food Business Operators as per the provi-
spices in the domestic market. sion laid down under the Food Safety and
The regulator asked state food commis- Standards Act, 2006, Rules and Regula-
“Instances have been reported recently in sioners to conduct an effective enforcement tions 2011 made thereunder,” FSSAI said.

FSSAI gives more time for
compliance with calcium,
magnesium limits in packaged
drinking water

Food regulator FSSAI has extended subsequently till January 1, 2021. timeline for compliance related to limits of
the deadline by six months till July calcium and magnesium for the standards
1, 2021 for the food business operat- FSSAI said in a statement that represent- of Packaged Drinking Water (other than
ors (FBOs) to comply with the regulations ation has been received from a section mineral water) up to July 1,” the regulator
related to limit of calcium and magnesium of stakeholders requesting for further said. These standards on packaged drink-
in packaged drinking water, other than extension of time since FBOs are not yet ing water are prescribed in the Food Safety
mineral water. The Food Safety and Stand- prepared to comply with regulations due to and Standards (Food Product Standards
ards Authority of India (FSSAI) had earlier the COVID-19 pandemic. and Food Additives) fourth amendment
extended the deadline to July 1, 2020 and “It has been decided to further extend the regulations, 2019.

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SAFETY/HYGIENE & REGULATIONS 63

FSSAI extends deadline
to reduce TFA in edible
oils

The Food Safety and Standards Authority of India (FS- Are you a
SAI) has extended the deadline for the enforcement of Manufacturer ?
its recent gazette notification which caps the amount of
trans fatty acids (TFA) in oils and fats to 3 per cent from the Get listed on
current permissible limit of 5 per cent from January 2021 to TRADE ZONE
April this year. The deadline to reduce trans-fatty acid to 2 per just @ Rs. 3000 / Yr.
cent, however, remains the same - January 1, 2022.
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“In view of representations received from the industry and to
facilitate smooth transition from the industry to the new norms JANUARY - 2021 Food Drink & Innovations
for the trans fatty acids (TFAs), it is directed that the enforce-
ment for the limit of 3 per cent by weight shall commence
w.e.f. April 1, 2021, and for such products manufactured on or
after April 1, 2021,” the authority said in its recent notification.

The edible oil industry has cited the outbreak of the
Coronavirus and the subsequent lockdowns as a reason for its
inability to prepare for the reduction of trans-fat. The coun-
try’s food regulatory body notified the amendment to the Food
Safety and Standards (Prohibition and Restriction on Sales)
Regulations on December 29, more than a year after it issued a
draft on the subject for consultation with stakeholders.

The revised regulation applies to edible refined oils, vanaspati
(partially hydrogenated oils), margarine, bakery shortenings,
and other mediums of cooking such as vegetable fat spreads
and mixed fat spreads.

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SUPPLY CHAIN
MANAGEMENT

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supply chain management 65

India needs to reduce logistics cost
to improve competitiveness: Report

India’s supply chain and logistics sector, ive actions are not taken. TAKE YOUR
one of the largest globally and worth BUSINESS
$215 billion growing at a CAGR of 10.5 India’s supply chain industry needs to be PROMOTIONS
per cent, faces several barriers to growth reimagined and efforts need to be made to
despite its criticality to the economy. An move towards creating an optimised and ONLINE,
unbalanced logistics modal mix, high in- digitised logistics ecosystem, a de-layered WITH US
direct costs, fragmented infrastructure and distribution system and a green, resilient GET OUR MEDIA
networks, and limited technology adoption and flexible supply chain. The reimagined INFORMATION
has been hampering the sector’s growth. supply chain will help realise the Prime KIT- 2021
Minister’s Atmanirbhar Bharat vision and
To bridge the current competitiveness supplement Make-in-India and Start-up
gap of $180 billion, India needs to reduce India strongly, catering to the global supply
logistics cost from 14 per cent of GDP to chain, he said.
7 per cent, said Barnik Chitran Maitra,
Managing Partner of the management The report said that supply chains are trans-
consultancy firm Arthur D Little India forming globally by adopting Industry 4.0
and South Asia and lead author of a report trends including agile networks, disruptive
‘Reimagining India’s supply chain: A bold technologies, end-to-end visibility, and risk
vision for 2030’. mitigation versus risk management. India
can benefit from the experience of mature
The report by the firm and the Confedera- economies, which have used emerging
tion of India Industry highlights the need technologies such as artificial intelligence,
for immediate attention given the high blockchain, and the Internet of Things
logistics cost of 14 per cent of GDP in India to enhance supply chain operations and
compared to 8-10 per cent of GDP in the resilience.
US and Europe.
To make India’s supply chain competitive,
The report brings to light these issues, sets a efficient, and resilient, Vision 2030 aims to
bold Vision 2030 and lays the roadmap for pare logistics cost to 7-8 percent of GDP,
ensuring global competitiveness of India’s optimise the logistics modal mix, digitise 90
supply chain. It was released by Pawan Ku- per cent of supply chain operations, develop
mar Agarwal, Special Secretary (Logistics), omni-channels, move towards green supply
Government of India, at the CII National chains and enhance skill development.
Packaging Conference on Friday.
The report takes a long-term view of the
The report details the improvements needed Indian supply chain and sets five broad
to make India’s supply chain competitive. aspirations to achieve Vision 2030. They
It provides a glimpse of learnings from are optimise the logistics and warehousing
around the world, presents five imperatives network; hasten adoption of cutting-edge
for the Indian supply chain, and sets aspira- technology; restructure the supply chain;
tions to achieve Vision 2030. It also brings enhance skill development and talent man-
to light the vulnerabilities that the supply agement and move towards a green supply
chain network is exposed to if transformat- chain.

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66 supply chain management

The Transforming Global Supply Chain: Optimizing
for Business Resiliency

The past year has been full supply chain sustainability strategies and focus on only isolated risks (e.g.
of change. But threaded actions. water supply). While such as-
underneath the tumult sessments can be insightful, they
of the pandemic, we’re seeing Consumer Pressure also miss opportunities to truly
another kind of transformation understand aggregate conditions
in how companies must evolve Every product has a backstory, or at least and scenarios (e.g. exposure to
supply chain management. that is the growing expectation of many multiple or compounding risks).
consumers, especially younger generations. TCFD provides a very deploy-
It used to be that accountab- Increasingly, consumers are inquisitive able framework for evaluating
ility ended at the limits of a about the products they are choosing to key physical (acute and chronic)
company’s own perimeter. But buy. More and more people are taking a and transition risks.
now, businesses are feeling the deeper look at what they apply or put in
pressure when it comes to being their bodies for foods, beverages, cosmet- Consider Connections: Gaining
accountable for the totality of ics, etc. They want to understand the story insight that one of your facilities
their supply chain. Leading companies have behind the product - where it comes from, has a higher risk exposure than another is
long understood the broad risks and oppor- how it was sourced, made, and packaged. useful, but what if you also were able to see
tunities embedded within the supply chain They want to know if there are any harmful that that higher risk facility is supplied by
(e.g. environment management, social and substances within the product, pound for two of three supplier facilities also facing
ethical practices, business continuity, cost). pound impacts compared to alternatives, risks? The odds of business continuity
The pressure and expectations have been and so on. Many consumers also want to be challenges or increases costs has increased
ratcheted up considerably in recent years intrigued and engaged where products have by magnitudes due to aggregate risk
from multiple key stakeholder perspectives. a history or societal connection. conditions. Furthermore, what if one of the
facilities was also sole source?
Investor Pressure The above perspectives are from over a
decade of experience working with a broad Exercise Prudence: While it is important to
Technology has revolutionized the world range of clients on business optimization have confidence in your risk and opportun-
and has made everything transparent. and resiliency. Based on this experience, ity assessment results, it is also critical to
Investors are using advanced data analytics, here is some practical advice for consumer not overdue the analysis and short-change
AI-assisted software, and cloud business products companies: resources available for actions that make
intelligence tools to gain a sophisticated your company more resilient. Conduct a
view of supply chains. This comes as no Be Genuine: Before aggressively driving high-level screening and then dive deeper
surprise when you consider that supply initiatives into your supply chain, make where warranted to validate risk and clarify
chain compliance is one of the biggest sure your own house is in order and that investment opportunities. Also, make
emerging concerns for investors. All of you are “talking the talk” and “walking the sure to leverage a combination of external
this newly unearthed data means a clearer walk.” Nothing derails a sustainable supply datasets, internal facility and leadership
view of a supply chain risk profile - and the chain strategy like the following question insights, and expert interpretation.
truth isn’t always pretty. With this increased from a supplier, “So, you want us to reduce
visibility comes increased expectation for our energy and water usage but you don’t Share Knowledge: Mostly likely a supplier
risk mitigation. This trend is being further even have goals for your own operations?” facility and your own facilities have a
fueled by the emergence of disclosure and tremendous amount in common in terms of
regulatory frameworks that are increasingly Think Holistically: Often time very solid best practices and opportunities to optimize
being adopted by investors including the risk assessments are completed, but they are energy, carbon, water, wastewater, and
Task Force on Climate-related Financial done so in isolation or myopically with a waste. Approach your supply chain as if
Disclosures (TCFD) and extended producer they are your own facilities. By optimiz-
responsibility (EPR). ing, you reduce costs, prepare facilities for
the future (e.g. low carbon economies),
Customer Pressure and enhance your business continuity and
resiliency. Collaborating with suppliers can
For every consumer products company, the also build longer-term business partnerships
success of their business is largely driven and retention.
by satisfying the evolving demands of their
largest customers. In addition to standard Source: https://us.anteagroup.com/news-events/
expectations on quality and price, custom- blog/the-transforming-global-supply-chain-optim-
ers are deploying an increased focus on
business continuity, product traceability, izing-for-business-resiliency
and transparency on product footprints. All
three of these items are strongly related to

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supply chain management 67

68 Ingredients

Food Drink & Innovations JANUARY - 2021 www.fooddrinkinnovations.com