reading the entire newsletter

Issue #4
April 30, 2015
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Message from Chip Smith, President:
Well, no shortage of things to report in this month's newsletter. Beyond the usual intrigue surrounding
the coming planting intentions and summer weather predictions, we are still grinding towards clarity
regarding the suspension agreement with Mexico. As always, please enjoy the articles that were sent
in by you, our members.
In two weeks many of us will be heading to New York City for Sugar Week and I encourage you all to
join us at Smith and Wollensky's Steakhouse for our annual luncheon. It will be at 11:30 on
Wednesday the 13th. We are pleased to have Mike Gorrell of Imperial Sugar as our speaker. This is
the first time that Mike has been our speaker and we are excited to hear his thoughts on this interesting
time in the sugar industry. If you have not RSVP'd, please do.
Thank you and see you in New York,
Chip Smith, President
Also in this issue: (Click on the Headline, or scroll down to the document)
00/00 - Sugar Club Week events
00/00 - NSIMA Annual New York City Luncheon Invitation
03/23 - Judge tosses 'no refined sugars' case vs KIND Healthy Snacks
03/25 - New beans developed to 'beat the heat' of climate change
03/31 - Bottled water drove beverage market growth in 2014
04/01 - Michigan Sugar Co. wraps up annual beet slicing campaign
04/02 - Kraft, Mondelez in hot seat over alleged wheat price manipulation
04/03 - FAO food price index drops again in March
04/06 - How much all-natural sugar is in your typical 'sugar-sweetened beverage' in the U.S.?
04/09 - U.S.D.A. raises U.S. sugar ending stocks
04/10 - Targeting Sugar Is an Oversimplified Approach to Complex Problem of Obesity
04/13 - Shift to simple ingredients gaining momentum
04/14 - Brazil's sugar output to rise 5%; ethanol up 1.9%
04/14 - Progress is SWEET at Sweetener Solutions of Pooler, aided by Local Investors Group
04/15 - April issue of the SUGAR AND SWEETENERS OUTLOOK
04/16 - India to consider building sugar stockpile to cut market surplus
04/17 - Subtracting sugar from formulations
04/20 - Organic food sales grow 11% in 2014 with politically, geographically diverse shoppers
04/21 - Europe and North America cocoa grinds slump in Q1
04/22 - Rise in organic imports signals opportunity for U.S. farmers, OTA says
04/23 - Vietnamese plantations to shift to cocoa production, says cocoa buyer
04/24 - PepsiCo ditches aspartame from Diet Pepsi in US: will be replaced with sucralose
04/24 - Americans Are Consuming LESS Sugar and LESS Caloric Sweeteners
04/27 - US resumes probe on sugar imports from Mexico
The Sugar Club
67th Annual Banquet
Wednesday, May 13, 2015
March 24, 2015
Dear Sugar Club Member:
We are pleased to announce that the 67th Annual Sugar Club Banquet will take place on
Wednesday, May 13, 2015 at the Waldorf Astoria Hotel in New York City (Park Avenue & 49th Street).
The black-tie event will begin at 6:00 p.m. in the East Foyer, followed by dinner at 7:00 p.m.
in the Grand Ballroom. Our guest speaker will be announced shortly.
BANQUET RESERVATIONS. Reservations will be accepted on a “first-come, first served”
basis until May 1 and must include payment in U.S. funds. The price is $300.00 per person and
$3,000.00 per table of ten. Checks, wire transfers and ACH payments will be accepted.
No credit cards are accepted.
If paying by check, make payable to The Sugar Club and mail the attached reservation form and
check to:
The Sugar Club
c/o Trudy Kominus
8215 Donset Drive
Springfield, Virginia 22152
If paying by wire transfer or ACH payment, include an additional $25.00 per domestic
wire or $50.00 per international wire through:
People’s United Bank
14 Mamaroneck Avenue
White Plains, New York 10601
The Sugar Club
Account Number: 6500333111
ABA: 221172186
Send an e-mail notification with the date and amount of the wire transfer and the attached
reservation form to: TheSugarClubNYC@gmail.com. Your reservation will not be held unless
the applicable wire fee is included in your payment.
HOTEL ROOM RESERVATIONS.
The Waldorf Astoria is holding a block of rooms for the Sugar Club Banquet on May 13
at a special rate of $369.00 single/double occupancy and several
Executive Suites for $519.00. To ensure your room reservation at the special group rate, please
call the Waldorf at 1 877 GROUP WA and mention the Sugar Club group code: SUG.
The cutoff date for the group rate is Wednesday, April 23.
Guests making reservations from overseas should contact
1 800 HILTONS.
Sincerely,
Rick Pasco,
Secretary, The Sugar Club
2015 SUGAR CLUB BANQUET RESERVATION FORM
$300.00 per person, $3,000.00/table of ten
Company Name: _________________________________ Number of seats _____
Contact: ________________________________________ [if less than 10]
Telephone #: ____________________________________ Number of tables _____
E-mail: _________________________________________
Please print the attendees names in capital letters by table in alphabetical order by last name.
Send additional forms, if you require more than two tables.
If names are not provided by May 1 they will be listed as “guests” of your organization.
TABLE _____ TABLE _____
LAST NAME FIRST NAME LAST NAME FIRST NAME
1. 1.
2. 2.
3. 3.
4. 4.
5. 5.
6. 6.
7. 7.
8. 8.
9. 9.
10. 10.
PAYMENT $ ________ CHECK ONE: [ ] CHECK [ ] WIRE TRANSFER
ONCE PAYMENT IS RECEIVED YOUR RESERVATION WILL BE CONFIRMED BY E-MAIL.
TABLES WILL BE ASSIGNED THE WEEK BEFORE THE BANQUET.
IF YOU HAVE ANY QUESTIONS, CALL (703) 451-6444
OR E-MAIL: TheSugarClubNYC@gmail.com
SUGAR WEEK EVENTS
Monday, May 11, 2015
- 13th Sugar and Ethanol Seminar sponsored by JSG Commodities
and Job Economia. Executive Conference Center, New York City. The
Seminar will analyze the new NAFTA sugar complex and the markets in turmoil.
It will also cover prospects for the new crop in Brazil and its global
competiveness in the face of increasing costs and the weak Real.
For more information contact:
bea@jsgcom.com.
Wednesday, May 13, 2015
˗ ISO Datagro Sugar and Ethanol Conference. Waldorf Astoria, New York City.
The program will include sessions on global trends and
perspectives for sugar and ethanol; sugar in Central and South America;
sugar and ethanol in Brazil; the EU; lessons learned from the NAFTA
dispute; and the impact of biotech beet sugar production.
For more information contact:
isodatagroconferences.com
˗ NSIMA Annual Luncheon. Smith & Wollensky Restaurant, New York City.
The speaker will be Mike Gorrell, President and CEO, Imperial Sugar Company.
For more information contact Bruce Penner at:
penner@cass.net.
The National Sweetener and Ingredient Marketing Association (NSIMA)
will hold our annual luncheon at the Smith & Wollensky Restaurant,
located at 49th St. & 3rd Ave, New York City, NY
on Wednesday May 13, 2015 beginning at 11:30am.
Smith & Wollensky’s is a world famous upscale steakhouse.
We will be two blocks from the Waldorf.
The cost is $115.00 in advance, $125.00 at the door.
Our guest speaker will be Mr. Mike Gorrell,
President and Chief Executive Officer, Imperial Sugar Company.
We feel this will be an outstanding event,
and urge RSVP as soon as possible due to limited seating.
We are sure Mr. Gorrell’s presentation will be
timely, topical, entertaining, and thought provoking.
A "don't miss" event !
To make reservations, please either call the Association at 989-205-6007,
e-mail the Association at penner@cass.net, or USPS Postal mail us at:
NSIMA
8088 Bay Court
Temperance, MI 48182
We look forward to seeing you in New York !
*****Reservation Form*****
NSlMA Luncheon Wednesday, May 13, 2015
Smith & Wollensky Restaurant, located at 797 3rd Ave, New York, NY
Time: 11:30am
$115.00 each in advance, $125.00 at the Door
Company:
_____________________________________________________
Attendees:
_____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
Make checks payable to and mail to:
NSIMA, 8088 Bay Court, Temperance, MI 48182
http://www.foodnavigator-usa.com/content/view/print/1067009
Mar. 23, 2015: By Elaine Watson+, FOODnavigator-usa.com
Judge tosses ‘no refined sugars’ case vs KIND Healthy
Snacks, but attorney says it had a lucky escape
A judge in Illinois has thrown out a class action lawsuit against KIND LLC over
“no refined sugars” claim on its Healthy Grains products, which contain
evaporated cane juice, a form of sugar, and molasses.
Evaporated cane juice has been the subject of multiple lawsuits in the past couple of years, in which
plaintiffs argue that it’s basically crystallized sugar masquerading as something more 'natural' or
healthy.
However, the (amended version of the) lawsuit in question is not about the term ‘evaporated cane
juice’ (ECJ) per se, but KIND's claim that products containing ECJ have ‘no refined sugars’, with the
implication that this confers some kind of meaningful advantage.
According to plaintiff Rochelle Ibarrola, the claim 'no refined sugars' is simply misleading, as while
evaporated cane juice contains trace amounts of minerals and undergoes slightly less processing than
regular white sugar, it’s still a “refined sugar with very little nutritional value”.
Judge: No reasonable consumer would think that evaporated cane juice is sugar in its natural,
completely unrefined state
However, in a March 12 order dismissing the case with prejudice (meaning the plaintiffs cannot re-file),
US district judge Sara Ellis said that consumers understood that all sugars were processed in some
way, but some were more obviously ‘refined’ than others. She added: “No reasonable consumer would
think –as Ibarrola alleges she did – that the sugar contained in KIND’s Healthy Grains products was
still in its natural, completely unrefined state… a reasonable consumer would know that all sugar canederived sweeteners suitable for human consumption must be at least partially refined. “Thus the court
finds that the only reasonable conclusion after reading the entire… label is that KIND used the word
‘refined’ as a term of art to distinguish partially refined sugars like evaporated cane juice and molasses
from fully refined sugars like table sugar.”
KIND was lucky to get case thrown out, says attorney: 'Here, the claim 'no refined sugars' is
flat-out false'
So what do legal experts make of the case? Steve Gardner, who heads the food law practice at the
Stanley Law Group of Dallas, Texas (and was formerly director of litigation at consumer advocacy
group The Center for Science in the Public Interest) said KIND was lucky to have had the case thrown
out. He added: "This isn’t a question of whether anyone’s interpretation of the 'no refined sugar' claim
is reasonable. That’s a test applicable to deception claims. Here, the claim 'no refined sugars' is flatout false. It would in fact be unreasonable for a consumer to interpret the phrase 'no refined sugars' to
mean 'with refined sugars, just not as refined as some other sugars that I could name'." The judge, he
argued, "substituted her own interpretation of a fact for the plaintiff’s allegations".
Processed Free America: Evaporated cane juice is just plain old sugar
Consumer groups meanwhile, remain suspicious of firms trying to present evaporated cane juice as
superior to table sugar given that it has an identical number of calories, is processed by the body in the
same way, and you'd have to eat a ton of it in order to get useful levels of the minerals it contains. In a
comment to the FDA – which launched a new probe into evaporated cane juice labeling last year - nonprofit nutrition education group Processed-Free America said consumers might assume that firms
merely squeeze out the juice from
sugar cane and evaporate it.
In fact, manufacturers of evaporated cane juice have to clarify and filter sugar cane juice to remove
solids, heat it with steam and concentrate it into a syrup; then seed it with tiny sugar crystals and boil it
to form a mixture of crystals and molasses. Next it is put in a centrifuge to spin out the molasses. The
golden crystals are then dried and packed. The end product has a darker color than table sugar, which
goes though some additional steps, but ECJ is still a crystallized sugar, not just 'evaporated juice', said
Processed Free America.
Domino Sugar/Florida Crystals: ECJ is entirely distinct from what is commonly known as
refined sugar
ECJ manufacturers beg to differ, however. In a statement submitted to the court in a lawsuit over ECJ
labels Michael DeLuca, VP of specialty ingredients at Domino Sugar, said ECJ was "entirely distinct
from what is commonly known as refined sugar". He added: "The plaintiffs say the industry uses ECJ
as a euphemism for sugar. This is incorrect...During the entire time that it has been on the market, ECJ
has been considered entirely distinct from what is commonly known as refined sugar. ECJ has a
distinct darker appearance because it is not decolorized, as is refined sugar. ECJ has distinct taste and
smell characteristics. Further, ECJ has nutrients and other inherent constituents that do not exist in
refined sugar.”
The case is: 3:13-cv-50377 Rochelle Ibarrola et al vs KIND LLC.
http://www.cgiar.org/consortium-news/beans-that-beat-the-heat/
March 25, 2015: CGIAR Press Release
New beans developed to ‘beat the heat’ of climate change
As a result of a major breakthrough, beans – once feared to be a casualty of climate change – are now
set to withstand extreme temperatures, protecting a staple food of the poor in developing countries.
Amidst fears that global warming could zap a vital source of protein that has sustained humans for
centuries, CGIAR bean breeders announced today the discovery of 30 new types, or lines as plant
breeders refer to them, of “heat-beater” beans that could keep production from crashing in large
swaths of bean-dependent Latin America and Africa.
“This discovery could be a big boon for bean production because we are facing a dire situation where,
by 2050, global warming could reduce areas suitable for growing beans by 50 percent,” said Steve
Beebe, a senior CGIAR bean researcher.
“Incredibly, the heat-tolerant beans we tested may be able to handle a worst-case scenario where the
build-up of greenhouse gases causes the world to heat up by an average of 4 degrees Celsius (about
7.2 degrees Fahrenheit),” he said. “Even if they can only handle a 3 degree rise, that would still limit
the bean production area lost to climate change to about five percent. And farmers could potentially
make up for that by using these beans to expand their production of the crop in countries like
Nicaragua and Malawi, where beans are essential to survival.”
CGIAR researchers had previously warned that rising temperatures were likely to disrupt bean
production in Nicaragua, Haiti, Brazil, and Honduras, while in Africa, those warnings had focused on
Malawi and the Democratic Republic of the Congo as the most vulnerable, followed by Tanzania,
Uganda, and Kenya.
“As a result of this breakthrough, beans need not be the casualty of global warming that they seemed
destined to be, but rather can offer a climate-friendly option for farmers struggling to cope with rising
temperatures,” said Andy Jarvis, a CGIAR climate change expert.
Many of the new heat-tolerant beans developed by the CGIAR scientists are “crosses” between the
“common bean”—which includes pinto, white, black, and kidney beans—and the tepary bean, a hardy
survivor cultivated since pre-Columbian times in an area that is now part of northern Mexico and the
American southwest.
Often called the “meat of the poor” for the affordable protein it provides, the crop is a vital foundation of
food security for more than 400 million people in the developing world. Beans are a highly nutritious
food, offering protein, fiber, complex carbohydrates, vitamins and other micronutrients. In addition to
heat tolerance, CGIAR experts are simultaneously breeding for higher iron content to enhance the
beans’ nutritional value.
Unlocking the Potential of Humanity’s Key Crops
The new beans are a landmark result of urgent efforts by CGIAR to develop new crop varieties that
can thrive in drastic weather extremes. The bedrock of this research is CGIAR’s “genebanks”, which
preserve the world’s largest seed collections of humanity’s most important staple crops. Using new
genomic tools, plant breeders are now better able to unlock the potential of the genebanks’ vast
genetic diversity by probing nearly 750,000 samples of cereals, legumes, roots and tubers, trees, and
other important food crops—along with their wild relatives—to identify genes with traits like heat, flood,
and drought tolerance or resistance to pests and disease that can help farmers adapt to environmental
stresses.
“The payoff we are seeing from these bean breeding efforts underscores the vital importance of
investing in CGIAR’s genebanks—a front-line defense in the race to adapt crops to climate change to
protect the staple food supplies of poor farmers and consumers and avert food crises around the
world,” said Jonathan Wadsworth, Executive Secretary of the CGIAR Fund Council. “The development
of these heat-defying beans also highlights what can be achieved when we invest in modern science to
find solutions to urgent challenges, with expected economic benefits vastly exceeding the costs of
investment in the research.”
The heat beaters emerged from the methodical and exhaustive testing of more than 1,000 bean lines,
work that originally started as an effort to develop beans that could tolerate poor soils and drought. The
focus turned to heat-tolerance following an alarming 2012 report from CGIAR scientists warning that
heat was a much bigger threat to bean production than previously believed.
Led by CGIAR researchers, a team of the world’s leading bean experts quickly moved to cultivate test
plots on Colombia’s Caribbean coast, where they deliberately exposed beans to night-time
temperatures well above what they can normally tolerate. Scientists also established greenhouses so
that temperatures could be dialed up on demand.
“We confirmed that 30 heat-tolerant lines are productive even with night-time temperatures above 22
degrees Celsius (about 72 degrees Fahrenheit),” Beebe said. “Normally, bean yields start to falter
when the temperatures exceed 18 or 19 degrees Celsius (about 64 to 66 degrees Fahrenheit).”
Among the beans found to be especially heat tolerant was one that was recently introduced into
commercial production in Nicaragua, chiefly because of its performance in drought conditions. Tested
in dry conditions in Costa Rica, it yielded more than twice the amount of beans compared to what
farmers were currently cultivating. Beebe said scientists now have evidence that the superior
performance was due not just to drought tolerance but also heat tolerance.
“What this shows us is that heat may already be hurting bean production in Central America far more
than we thought and farmers could benefit from adopting the new heat-beater beans right now,” he
said.
Better Beans for Better Nutrition
To provide a sustainable and cost-effective way to combat hidden hunger, caused by diets low in key
vitamins and minerals, CGIAR researchers embarked more than a decade ago on a pioneering
program to improve the nutritional content of staple food crops that the poor rely upon.
Some of the heat-tolerant beans identified by Beebe and his team have also been deliberately bred
through conventional methods to be higher in iron in an effort to tackle malnutrition. In developing
countries, deficiencies of this essential micronutrient afflict one out of every two preschool children and
pregnant women, making them highly susceptible to anemia and compromising children’s growth and
cognitive development. While beans are already high in iron, these new varieties could eventually
provide up to 60 percent of daily iron needs for women and children—almost twice the iron of nonimproved beans.
“A couple of years ago, when climate change experts warned that rising temperatures could be
devastating for bean production, we were asked how this would affect high-iron beans,” said Beebe.
“Now, I am confident that we can confront this challenge as well. We can develop more iron-rich beans
that are also heat tolerant. These beans would deliver even greater benefits than expected because
they could be grown more widely.”
http://www.foodbusinessnews.net/articles/news_home/Business_News/2015/03/Bottled_water_drove_beverage_m.aspx?I
D={BC33B16E-1DC4-4137-B692-F084EA833C4A}&e=penner@cass.net&cck=1
3/31/2015 - by Keith Nunes, FOODBUSINESSNEWS.net
Bottled water drove beverage market growth in 2014
NEW YORK — The U.S. market for liquid refreshment beverages grew in 2014 after being basically
flat in 2013, according to the Beverage Marketing Corp. (B.M.C.), an industry market research
company. The group said factors driving the growth included the strength of the bottled water market,
which pushed total category volume to 30.9 billion gallons during the year, a 2.2% increase compared
with the previous year when category volume was 30.2 billion gallons.
The B.M.C. said bottled water “had a remarkable year” and added that aggressive pricing in the
category grew volume during the year by 7.3%.
“Beverages rebounded in 2014,” said Michael C. Bellas, chairman and chief executive officer of the
B.M.C. “Products that connect with what contemporary consumers want, like bottled water and
functional offerings, added buoyancy to the ever-changing market.”
As has been the case in previous years, niche beverage categories continued to outperform most
traditional mass-market segments. Premium beverages such as energy drinks and ready-to-drink (R.T.-D.) coffee advanced particularly forcefully during 2014. Larger, more established segments such as
carbonated soft drinks and fruit beverages failed to grow.
Ready-to-drink coffee moved forward faster than all other segments with a 10.7% volume increase in
2014, but the segment accounted for a tiny share of total liquid refreshment beverage volume. It was
the smallest, trailing even value-added water, which registered the largest decline of any liquid
refreshment beverage type other than fruit beverages or carbonated soft drinks, according to the
B.M.C.
Energy drinks advanced by 6.4%, but also remained fairly modest in size. No energy drink, R.-T.-D.
coffee or value–added water brand ranked among the leading trademarks by volume. Sports
beverages, on the other hand, had Gatorade as the sixth largest beverage brand during the year. The
sports beverage segment exceeded 1 billion gallons for the first time in 2011 and topped 1.4 billion
gallons in 2014.
Carbonated soft drinks remained by far the largest liquid refreshment beverage category, but it
continued to lose both volume and market share. Volume slipped by 1% from 12.9 billion gallons in
2013 to less than 12.8 billion gallons in 2014, which lowered market share from slightly less than 43%
to just above 41%. Even so, the category declined more slowly than in previous years and some soda
brands, such as Sprite and certain varieties of Mountain Dew, did achieve growth
http://www.mlive.com/news/bay-city/index.ssf/2015/03/slicing_campaign_coming_to_an.html
April 01, 2015: By Heather Jordan, Bay
City Times
Michigan Sugar Co. wraps up annual beet slicing campaign
MONITOR TOWNSHIP, MI -- Michigan Sugar Co. wrapped up its annual beet processing campaign on
Monday and Mike Schmidt says he's ready to get a new season started.
Now all he needs is some warmer weather to help dry up his fields.
"We start as soon as we can," said Schmidt, co-owner of Schmidt Farms in Bay County's Kawkawlin
Township. "If it doesn't rain or anything, I think there's a possibility of starting a week from today, real
easy."
Schmidt grows 500 acres of sugar beets and is one of more than 900 Michigan Sugar growers in 20
Michigan counties and Canada.
If area growers are able to begin planting next week, it would be well before most beets went in the
ground last season, when the majority of planting happened in May following a very wet spring.
Despite the late start, company officials say this past season produced a record-setting crop that
is allowing the Monitor Township-based, grower-owned cooperative to produce another billion pounds
of sugar that it sells under the Pioneer Sugar and Big Chief Sugar brands.
"A late crop ... blossomed into a very good crop," said Paul Pfenninger, vice president of agriculture for
the company.
"It was a very successful year," added Ray Van Driessche, director of community and government
relations.
In the fall, growers delivered more than 4.72 million tons of beets, up from more than 4.17 million tons
in fall 2013. Pfenninger said yield was 29.6 tons per acre, the highest ever. And it was the secondlargest crop ever received.
"It's second to crop year 2012 when we had 29.3 tons per acre and we had 4.75 million (tons)," he
said.
Of the total received, Van Driessche said just under 4.2 million tons of beets were processed this year.
The difference in beets harvested and beets processed is known as "shrink," explained Pfenninger.
Because beets are stored in piles, they lose some of their weight between harvest and slice. Some
beets also spoil and must be thrown out. This year, the company disposed of 15,000 tons of beets,
Van Driessche said.
"We don't want to dispose of any, but that number's not bad," Van Driessche added, giving credit to the
workers who stored and processed the beets.
"Our employees made a great effort, and we appreciate it very much," he said. "There's a lot of
growers that really appreciate what goes on."
A more important number for the company is the average sugar content of the beets, which this year
came in at 18.37 percent, up slightly from last year's total of 18.34 percent.
"That's a tad bit higher than our normal, but it's higher than we expected and very good considering
how late the beets went in the ground last year," said Pfenninger. "I'm especially happy because when
we plant in May we expect a little lower quality, but these beets really rallied."
Pfenninger said the goal each year is to hit 19 percent sugar content, a challenging goal that has only
been attained one time in the company's history.
"We call it 'The Road to 19,' " said Pfenninger. "We have a lot of growers who hit 19 and some get 20
and over, but as a total, we've only hit it one time.
Pfenninger said this year's processing campaign, which began on Sept. 4, was lengthy, which is a
good thing.
Company officials said the final beets rolled through the Sebewaing processing facility the afternoon of
Monday, March 30. Slicing wrapped up at the company's Monitor Township, Croswell and
Caro facilities last week.
"The last one went in at 1:50 this afternoon," Pfenninger said Monday afternoon. "Sebewaing sliced the
last beet. It's done and over with. Hallelujah!
"Anytime we have (an) over 200-day campaign, it's a good year for us," Pfenninger said.
There were some challenges along the way, including rain around Christmastime and brutal cold in
February, but, "at the end of the day, we sliced them all," Pfenninger said.
"We're very, very happy with the outcome."
And now, company officials and growers immediately look ahead.
In general, the ground is still too cold for planting, Van Driessche said, but "growers are anxious to be
out there in the fields."
He said growers have their equipment ready and could begin planting soon.
"If conditions warmed up and dried up, we'd be out there first part of next week, I would assume," he
said.
Company officials say growers will plant about 160,000 acres again this year.
"We just need some warm temperatures," Pfenninger said. "Around the middle of April it looks like
there's a stretch of sunshine and warmer weather."
Pfenninger said slicing is tentatively scheduled to start again Sept. 1. He hopes this growing season
will be just as successful as the last.
"We would hope to have another 4.5 million- to 4.7-million-ton crop," he said.
http://www.bakingbusiness.com/articles/news_home/Regulatory/2015/04/Kraft_and_Mondelez_in_hot_seat.aspx?ID={058A
5DD7-2E8F-44FE-9D4D-06167408C250}&e=penner@cass.net&cck=1
4/2/2015 - by Ron Sterk, bakingBUSINESS.com
Kraft, Mondelez in hot seat over alleged wheat price manipulation
WASHINGTON — The U.S. Commodity Futures Trading Commission on April 1 filed a civil
enforcement complaint in the U.S. District Court for the Northern District of Illinois against Kraft Foods
Group, Inc. and Mondelēz Global L.L.C., alleging manipulation and attempted manipulation of futures
and cash wheat prices, exceeding speculative position limits in Chicago Board of Trade wheat futures,
and engaging in numerous noncompetitive trades in C.B.O.T. wheat.
The C.F.T.C. is seeking a permanent injunction from future violations of federal commodities laws,
disgorgement and civil monetary penalties in its litigation against Kraft and Mondelēz.
The C.F.T.C. alleges that, in response to high cash wheat prices, Kraft and Mondelēz developed,
approved and executed in early December 2011 a strategy to buy $90 million of December 2011 wheat
futures, equal to a six-month supply of wheat. The C.F.T.C. alleges neither company intended to take
delivery of the wheat but executed the strategy “expecting the market would react to their enormous
long position by lowering cash wheat prices and strengthening the spread between December 2011
wheat and March 2012 wheat futures.” Those price moves occurred and the C.F.T.C. said the
companies made more than $5.4 million in profits as a result.
The C.F.T.C. also alleges that on five dates in early December 2011, Kraft and Mondelēz held long
positions in December 2011 wheat futures that exceeded the C.B.O.T.’s 600-contract speculative spot
month position limit by as much as 2,110 contracts without having a valid hedge exemption in place or
a bona fide need for that amount of wheat.
Finally, the C.F.T.C. alleges that beginning around 2003 and continuing through January 2014, prior to
each of the five annual delivery periods for C.B.O.T. wheat futures, Kraft and Mondelēz conducted offexchange futures transactions between two separate corporate trading accounts that did not comply
with exchange rules for noncompetitive, off-exchange futures trades.
In a statement filed April 1 with the Securities and Exchange Commission, Kraft Foods said, “On April
1, 2015, the Commodity Futures Trading Commission filed a formal complaint against Mondelēz
International, Inc. and the registrant related to activities involving the trading of December 2011 wheat
futures contracts. As previously disclosed, these activities arose prior to our Oct. 1, 2012, spin-off from
Mondelēz International and involve the business now owned and operated by Mondelēz International
or its affiliates.
“Our Separation and Distribution Agreement with Mondelēz International dated as of Sept. 27, 2012,
governs the allocation of liabilities between Mondelēz International and us and, accordingly, Mondelēz
International will predominantly bear the costs of this matter and any monetary penalties or other
payments that the C.F.T.C. may impose. We do not expect this matter to have a material adverse
effect on our financial condition, results of operations or business, including our proposed merger with
H.J. Heinz Holding Corp.”
http://www.worldgrain.com/articles/news_home/World_Grain_News/2015/04/FAO_food_price_index_drops_aga.aspx?ID={7FB42B57D7C1-415E-9E16-6652C9AFAA85}
4/3/2015 - by World Grain Staff, WORLD-GRAIN.com
FAO food price index drops again in March
ROME, ITALY — The United Nation’s Food and Agriculture Organization’s (FAO) Food Price Index
continued to decline in March, dropping 1.5% from February and 18.7% (40 points) below its level a
year earlier. A sharp fall in the price index for sugar - which reached its lowest level since February
2009 - together with dipping prices for vegetable oils, cereals and meat, more than offset a rise in dairy
prices and contributed to the lower index, which in March averaged 173.8 points. The index has been
on a downward path since April 2014. The FAO Food Price Index is a trade-weighted index that tracks
prices of five major food commodity groups on international markets. It aggregates price sub-indices of
cereals, meat, dairy products, vegetable oils and sugar.
The FAO Sugar Price Index averaged 187.9 points in March, down a sharp 9.2% from February. This
was mainly due to improved crop prospects but also the continued weakening of the Brazilian currency
against the US dollar, which is supportive to exports.
The FAO Cereal Price Index averaged 169.8 points in March, down 1.1% from February and as much
as 18.7% below its level a year earlier. The downward trend in 2015 has been mainly due to large
export supplies and mounting inventories, in particular for wheat and maize.
The FAO Vegetable Oil Price Index averaged 151.7 points in March, nearly 3.1% below the February
level and reaching its lowest value since September 2009.
Meanwhile, the cereal output estimate for 2014 was raised to 2.544 billion tonnes mainly due to a
larger than anticipated maize harvest in the European Union, according to FAO's latest Cereal Supply
and Demand Brief. If confirmed, global cereal output in 2014 would outstrip the 2013 record by 1%.
Looking ahead to the 2015 season, global wheat production is expected to reach 722 million tonnes in
2015, around 1% below the current estimate for 2014, mainly due to reduced plantings in the E.U.
While China, India and Pakistan are all expected to harvest close to 2014's record levels, production is
predicted to decline in the Russian Federation and Ukraine.
As for coarse grains, plantings are only about to start in the northern hemisphere. However, early
indications in the southern hemisphere, where crops are more advanced, point to a decline in 2015
production from last year's high levels. In particular, South Africa's maize production is expected to
decline sharply, by 33%, following severe precipitation shortfalls earlier this year.
Rice production prospects for 2015 are generally positive in the southern hemisphere countries, with
sizeable increases forecast in Indonesia and Sri Lanka in Asia and Colombia and Paraguay in South
America. In Australia, by contrast, output is officially anticipated to fall by 18 percent, reflecting
lingering shortages of irrigation water.
FAO's forecast for world cereal utilization in 2014-15 has been raised to 2.493 billion tonnes, which is
an increase of 17 million tonnes. The increase largely reflects historical revisions in China and India.
The forecast for world cereal stocks by the close of crop seasons ending in 2015 has also been revised
up sharply since last month's report and now stands at 645 million tonnes. The increase mainly reflects
upward revisions to wheat and maize stocks in China.
Based on the current forecasts for cereal stocks and utilization, the cereal stocks-to-use ratio is
expected to reach 25.9% in 2014-15, its highest value since 2001-02.
http://www.sugar.org/how-much-all-natural-sugar-is-in-your-typical-sugar-sweetened-beverage-in-the-u-s/
How much all-natural sugar is in your typical
‘sugar-sweetened beverage’ in the U.S.?
You might be surprised to learn that the amount of sugar (sucrose) in your typical “sugar-sweetened
beverage” is actually zero.
More than 90 percent of the caloric sweetener supplied for beverages in the United States is actually
high-fructose corn syrup (HFCS), according to USDA data.
http://www.bakingbusiness.com/articles/news_home/Purchasing/2015/04/USDA_raises_US_sugar_ending_st.aspx?ID={0E
FA3FF0-A5C3-4A25-A517-C90984F08015}&e=penner@cass.net&cck=1
4/9/2015: by Ron Sterk, bakingBUSINESS.com
U.S.D.A. raises U.S. sugar ending stocks
WASHINGTON — The U.S. Department of Agriculture in its April 9 World Agricultural Supply and
Demand Estimates projected 2014-15 U.S. sugar ending stocks at 1,700,000 short tons, raw value, up
50,398 tons, or 3%, from its March projection but down 110,000 tons, or 6%, from an upwardly-revised
1,810,000 tons in 2013-14.
The 2014-15 ending stocks-to-use ratio increased from 13.5% in March to 13.9%, which is above the
minimum 13.5% required under the current suspension agreements between the United States and
Mexico, which regulate the amount of sugar Mexico can export to the United States, among other
things, in lieu of antidumping and countervailing duties of about 56%.
Changes for 2013-14 included a 4,000-ton increase in Florida cane sugar production and a 9,000-ton
decrease in deliveries for food, which resulted in a 13,874-ton increase in ending stocks, and a bump
in the ending stocks-to-use ratio to 14.4% from 14.3% in March.
Total supply for 2014-15 was raised about 50,000 tons from March, to 13,919,000 tons, as the result of
larger beginning stocks and a 36,524-ton increase in forecast tariff-rate quota imports, at 1,528,000
tons, lifting total imports by a like amount to 3,464,000 tons. Forecast sugar use in the current year was
unchanged, resulting in a 50,398-ton increase in ending stocks.
The increase in T.R.Q. imports stemmed “mostly from sugar entering under free trade agreements that
was previously expected to be imported in the first quarter of 2015-16,” the U.S.D.A. said.
For Mexico, 2013-14 numbers were unchanged, but 2014-15 ending stocks were lowered 26,000
tonnes, actual weight, or 3%, from March to 975,069 tonnes. Sugar production in 2014-15 was lowered
101,372 tonnes from March, to 6,050,000 tonnes, domestic use was raised 50,000 tonnes, to
4,574,000 tonnes, and exports were lowered 125,000 tonnes, to 1,506,000 tonnes.
Mexico’s sugar production forecast was lowered “due to a slower-than-anticipated production pace,
especially in the state of Veracruz that has experienced excessive precipitation in the first three months
of 2015, with especially severe weather in March,” the U.S.D.A. said. The reduction in forecast exports
was to destinations other than the United States “because of much lower world raw sugar prices than
existed when certain contracts for export were originally negotiated,” the U.S.D.A. said. Mexican sugar
exports to the United States, now dictated by the suspension agreements signed last December, were
unchanged 1,306,000 tonnes.
http://www.sugar.org/dr-courtney-gaine-in-the-daily-caller-targeting-sugar-is-oversimplified-approach-to-complex-problemof-obesity/
Dr. Courtney Gaine in The Daily Caller:
Targeting Sugar Is An Oversimplified Approach to Complex Problem of Obesity
The dilemma of the low-hanging fruit has plagued mankind since the beginning of time. But history has
proven that while it is tempting to address a problem by focusing on the most attainable goal, rather
than the most appropriate, it just doesn’t pan out in the long run.
We would be well-advised to remember this as we search for solutions to the ongoing obesity
epidemic.
Currently, many purported health advocates are targeting all-natural sugar as public enemy number
one in the fight against obesity. And while this tactic might result in a quick win, especially given the
negative coverage of all-natural sugar in recent years, it’s an oversimplified approach to a complex
problem and simply not supported by scientific evidence and solid data.
http://www.foodbusinessnews.net/articles/news_home/Business_News/2015/04/Shift_to_simple_ingredients_ga.aspx?ID={
435E4B6B-A08B-45D1-9EDC-5F7A9040B7CA}&e=penner@cass.net
4/13/2015: by Monica Watrous, FoodBusinessNews.net
Shift to simple ingredients gaining momentum
GLENDALE, CALIF. — More top brands are reformulating products to meet demand for simple
ingredients and less sugar.
Consumer desire for a shorter ingredient list and less processing of food products is growing, said
Steve French, managing partner at the Natural Marketing Institute, during an April 8 presentation at
Ingredient Marketplace in Orlando. Sixty-two per cent of shoppers said they seek foods that are
minimally processed, and 53% prefer foods and beverages with a short list of recognizable ingredients,
according to N.M.I. data.
In response to the trends, Nestle USA announced it has reduced added sugar and removed artificial
ingredients from two Nesquik powdered formulas. The original chocolate and strawberry varieties now
contain 15% and 27% less added sugar, respectively, and are free of artificial colors and flavors.
Nestle replaced the sugar with cocoa and other natural flavors and substituted beet juice powder for
the artificial colors in the strawberry powder. Now with 10.6 grams of added sugar per two-tablespoon
serving, the reformulated powders are slated to hit shelves nationwide beginning in April with a new
label to indicate the changes. Nestle said it dedicated 18 months to the reformulation with consumer
testing to ensure the reduced-sugar recipes maintain the taste of the original products.
The changes are the latest in a series of reformulations and sugar reductions announced by Nestle.
Since 2000, the company has reduced added sugar in Nesquik’s chocolate powder formula by 35%.
Within the next few months, every flavor in the Nesquik portfolio of powder and ready-to-drink products
will contain only 10.6 grams of added sugar. Nestle has further committed to introducing product
refinements and innovations to the brand over the coming years.
In February, the company announced plans to remove artificial colors and flavors from all of its
chocolate candy products by the end of the year. Some product formulation changes include using
annatto instead of Red 40 and Yellow 5 in Butterfinger products, and replacing artificial vanillin in
Crunch products with natural vanillin. The company also is pursuing the removal of caramel coloring
from its chocolate products.
Nestle is not alone in its commitments to simple ingredients and sugar reduction. Recently, five other
leading companies have announced product reformulations to align with consumer health trends.
http://www.brecorder.com/markets/commodities/america/238151-brazils-sugar-output-to-rise-5pc;-ethanol-up-19pc.html
April 14, 2015: by Shoaib-ur-Rehman Siddiqui, Brecorder.com
Brazil’s sugar output to rise 5pc; ethanol up 1.9pc
SAO PAULO/BRASILIA: Brazil's 2015/2016 cane crop, which began crushing this month, is due to
churn out 37.35 million tonnes of sugar, up 5 percent from a year earlier, with most of the growth
coming from the main center-south harvest, government crop supply agency Conab said on Monday.
The forecast may be among the first to reflect expectations that mills will substantially boost sugar
production over ethanol due to the stronger dollar.
Sugar futures shrugged off the bearish outlook and rose more than 1 percent to 12.98 cents a lb.
The main center-south region, which accounts for 90 percent of output, will produce 33.7 million tonnes
of sugar, up 5.4 percent from 2014/15, Conab said in its first estimate of the new crop.
A severe drought in 2014 in the region hurt cane growth and production.
The country's combined center-south and northeast cane output will rise 3 percent to 654.6 million
tonnes as fields recover from drought, Conab said.
Conab's forecast of the center-south cane crop is more in line with private-sector outlooks than in past
years, when it had been on the high end of the range of estimates.
Analysts had expected recent government measures favoring the ethanol industry to shift mills'
preference for production toward the biofuel from sugar.
The government recently reinstated a tax on gasoline, a direct competitor of ethanol. It also raised the
blend of ethanol in gasoline to 27 percent from 25 percent.
Conab said it expected Brazil's ethanol output to increase only 1.9 percent to 29.2 billion liters.
But a sharp depreciation in the real against the dollar in recent months has revived the attractiveness
of sugar. "The exchange rate favors the closing of export contracts for sugar," Agriculture Ministry
Director of Cane Cid Caldas told reporters.
The stronger dollar allows Brazil to undercut rival exporters such as Thailand or India in dollars terms,
while mills' earnings remain attractive in reais. Ethanol is predominantly consumed domestically.
Not all analysts agreed that currency factors would stimulate sugar production and sales. Julio Borges
of Job Economia said many mills were cash-poor and shut out of credit markets, which are needed to
fix export sales in dollars.
The most liquid product for mills to generate cash flow is ethanol for the local market, he said.
"The new crop will not have a bias for sugar," Borges said. "Also, the demand for ethanol will grow a
lot."
https://savannahbusinessjournal.com/index.php/news-categories/manufacturing/4736-progress-is-sweet-at-sweetenersolutions-of-pooler,-aided-by-local-investors-group.html
April 14, 2015: By Lou Phelps, Savannah Business Journal
Progress is SWEET at Sweetener Solutions of Pooler,
aided by Local Investors Group
April 14, 2015 - Sweetener Solutions, LLC. led by CEO Mike Lasky (pictured), has announced that the
company will expand its manufacturing capability in Chatham County, building a new 30,000 sq. ft.
building on Sam Morgan Blvd. in Pooler.
The 10-yr old company was founded by partners John Curry and Michael Coffield who had long-term
experience in the sugar and sweetening industry, and are now equity owners and members of the
company’s board of directors.
Major investors in the company, enabling it to grow, are Mark Smith, Don Waters and Tom Prince of
Florida, business partner of Mark Smith.
The Pooler company manufactures high-intensity sweeteners, and produces custom blends for its
customers. It all began with a modest 1,000 sq. ft. facility on U.S. 80 in Pooler, and has expanded to its
current 20,000 sq ft. plant. “But, we’ve completely outgrown our space,” said Lasky. “Our landlord
even moved out to give us more room.”
The initial operation included a small sales office, a warehouse for blenders and mixers and a small
laboratory for product testing. “Through persistence and perseverance, Sweetener Solutions has
grown into a more than 20,000-square-foot facility serving sweetener users and food manufacturers
domestically and abroad,” according to the company, but will now build a brand new 30,000 sq. ft.
plant. There are currently 17 employees, said Lasky. Smith added that they anticipate having 45
employees within 5 years.
He was recruited by Smith and Waters last year, after more than 20 years in the dairy industry, and is
pleased with their progress since joining Sweetener Solutions.
The company manufactures sweetener blends that provide improved taste, reduced carbs and calories
for foods and beverages at significant cost savings, and sells both locally, national and internationally.
“In fact, Byrd Cookie Company is one of our newest customers,” added Lasky.
Don Waters is chairman of the board of Sweetener Solutions, LLC, the operating company; vicechairman is Mark Smith.
Waters is also Chairman of the Board, President and CEO of Brasseler USA. Mark Smith is Chairman
of the Board of The S Bank, and chairs the Georgia International Maritime & Convention Center
Authority, as well.
Smith, Waters and Prince have formed Savannah Investors, LLC. as of February 2015, that will take
on the debt to build the new building, keeping the building off the company’s balance sheet, explained
Smith. That entity received approval today from the Savannah Economic Development Authority board
in a resolution to pursue $5,000,000 in tax-free industrial development bonds to fund the new building.
Smith said that they are in negotiations with a design/build firm and will make an announcement shortly
on who will oversee the project.
He anticipates being in the new building within a year.
http://www.ers.usda.gov/publications/sssm-sugar-and-sweeteners-outlook/sssm-320.aspx
April 15, 2015: by Michael McConnell, Stephanie Riche, and Alberto Jerardo
Sugar and Sweeteners Outlook
Sugar and Sweeteners Outlook No. (SSSM-320) 13 pp, April 2015
The Sugar and Sweeteners Outlook for April 2015 reviews the sugar and sweeteners market
conditions for the United States and Mexico based on changes to the April WASDE.
The report also provides a summary of 2014 honey markets.
Keywords: Sugar, sugarcane, sugarbeets, trade, sugar imports, high corn fructose syrup, honey,
Mexico, NAFTA
In this publication...

Entire report,
213 kb
http://in.reuters.com/article/2015/04/16/india-sugar-idINKBN0N71NY20150416
Apr 16, 2015: By Mayank Bhardwaj, REUTERS
India to consider building sugar stockpile to cut market surplus
India will examine the feasibility of building government stocks of sugar to cut a surplus of sweetener in
the market, the food minister said on Monday, a move that would prop up local prices and help moneylosing mills pay dues to cane growers. "Mills, farmers and sugar producing states have suggested to
create buffer stocks of 3 million tonnes, or 10 percent of output, which we will consider after consulting
the prime minister," Ram Vilas Paswan told a news conference. Buffer stocks refer to government-held
purchases.
Five straight years of surplus output has hammered local sugar prices, hitting mills' financial health to
an extent that they now owe more than $3 billion to cane growers. Paying off those arrears would help
mitigate farmers' problems after untimely rains and hailstorms blighted their crops in most parts of
northern India. Farmers have already suffered as a result of falling global commodity prices.
Although Paswan did not give details, some industry experts said the government could buy sugar
from the open market and store it at its own expense. India, where sugar output usually yo-yos, has
created buffer stocks in the past to stave off a free fall in prices. Earlier Paswan said he would propose
raising the import tax on sugar to 40 percent from 25 percent as a preventive measure to protect
farmers from any cheap imports and help improve price prospects. The minister on April 8 told Reuters
he would also consider an incentive for white sugar exports to trim stocks and help beleaguered mills
make money.
India already gives a subsidy of 4,000 rupees ($64) a tonne for exports of raw sugar.
Output in India, the world's biggest producer behind Brazil, is estimated to rise to 26.5 million tonnes in
2014/15 from 24.4 million tonnes in the previous year.
Stocks on Oct. 1, when the next sugar season will start, are likely to touch 9.5 million tonnes, up from
7.2 million tonnes on Oct. 1, 2014, Paswan said
http://www.foodbusinessnews.net/articles/news_home/SupplierInnovations/2015/04/Subtracting_sugar_from_formula.aspx?ID={87AE1B36-8A80-4039-8C7D9AC432BD4B2C}&e=penner@cass.net&cck=1
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4/17/2015 - by Jeff Gelski & Keith Nunes, OOD USINESS EWS.net
Subtracting sugar from formulations
Count Nestle USA’s Nesquik brand as another business focused on reducing the sugar content in its
products. On April 13 the company disclosed its original chocolate and straw-berry varieties now
contain 15% and 27% less added sugar, respectively.
Nestle replaced the sugar with cocoa and other natural flavors. Now with 10.6 grams of added sugar
per two-tablespoon serving, the reformulated powders are slated to hit shelves nationwide this month
with a new label to promote the changes. The company said it dedicated 18 months to the
reformulation with consumer testing to ensure the reduced-sugar recipes maintain the taste of the
original products.
The changes are the latest in a series of sugar reduction efforts announced by Nestle. Since 2000, the
company has reduced added sugar in Nesquik’s chocolate powder formula by 35%. Within the next
few months, every flavor in the Nesquik portfolio of powder and ready-to-drink products will contain
only 10.6 grams of added sugar. Nestle has further committed to introducing product refinements and
innovations to the brand over the coming years.
Nestle is not alone in its efforts to reduce sugar content. General Mills, Minneapolis, has revealed
plans to introduce a 25% sugar reduction across its entire Yoplait Original yogurt line. PepsiCo has
followed a similar path with some of its new Mtn Dew Kickstart varieties, which contain coconut water
and include 60% less sugar than original Mountain Dew, according to the company.
As part of its commitment to the Partnership for a Healthier America, the Dannon Co., White Plains,
N.Y., has pledged to reduce the amount of total sugar in Dannon products to 23 grams or less per 6-oz
serving in 100% of products for children and 70% of the company’s products overall by 2016. Dannon
said in February it already had met or exceeded its commitment to reduce sugar in products overall,
with 76% of its portfolio meeting those standards, and had made progress with 91% of children’s
products compliant at the end of the first year.
But who are the core consumers focused on reducing the amount of sugar in their diets and replacing
them with ingredients that are perceived as natural by consumers? Steve French, managing partner of
the Natural Marketing Institute, said they may be described as “well-beings.”
Mr. French divided consumers into five categories when he spoke April 8 at Ingredient Marketplace in
Orlando, Fla. Well-beings, who are proactive about their health, are likely to use natural sweeteners
such as stevia extracts.
“They are leading the charge,” he said. “They were the first adapters of natural sweeteners and will
continue to be the first adapters, and not only sweeteners but all areas of health and wellness.”
Another consumer group, “fence-sitters,” want to be healthier, but they need direction and education,
Mr. French said.
The well-beings and the fence-sitters were more likely to agree with the statement “I typically watch the
sugar content in my diet.” While well-beings make up 20% of the U.S. population, they made up 28% of
the group that agreed with the statement. While fence-sitters make up 25% of the population, they
made up 27% of the group that agreed with the statement.
Three other consumer groups defined by Mr. French include “food actives,” “magic bullets” and “eat,
drink and be merrys.” The food actives are into mainstream health and make up about 16% of the
population. The magic bullets seek convenient ways to deal with health, including supplements and
prescription drugs. They make up about 21% of the population. The eat, drink and be merrys are the
least health active group and make up about 18% of the population.
Mr. French also spoke about stevia, high-fructose corn syrup and added sugars.
Seventeen per cent of American adults in 2014 said they regularly used stevia, which was the same
percentage as sucralose, according to research from the N.M.I., which is based in Harleysville, Pa.
Stevia had a compound annual growth rate of 30% from 2007 to 2013, Mr. French said.
Only 9% of consumers said they use HFCS.
“They would obviously be mistaken if they were to read the labels on the back of the beverage
products,” Mr. French said.
Some consumers are more likely to check ingredient lists for HFCS.
“Others don’t even realize that high-fructose corn syrup is part of a product that they have been using
for perhaps 20 years,” Mr. French said.
Research from the N.M.I. showed the percentage of Americans agreeing with the statement “I prefer
foods with no sugars added” increased to 52% in 2014 from 40% in 2005.
Consumers now are more likely to choose an item promoted for having no added sugar.
“Even though it may be a high caloric beverage, there is no added sugar,” Mr. French said
http://www.foodnavigator-usa.com/content/view/print/1078322
April 20, 2015: By Elizabeth Crawford, FOODnavigator-usa.com
Organic food sales grow 11% in 2014 with
politically, geographically diverse shoppers
Organic is outgrowing its moniker as a specialty category thanks to a double digit
increase in sales last year by consumers nationwide of all political leanings and
ethnic backgrounds, according to data from the Organic Trade Association.
“We really moved beyond” the “old assumptions about organic being niche and having sort of a cultural
blanket over it,” said CEO of OTA Laura Batcha. Sales of organic food climbed 11% to $35.9 billion in
2014, and while consumers in blue states in New England and the Pacific Northwest continue to lead
the charge, shoppers in the red dominated mountain and south Atlantic regions were not far behind,
Batcha said, citing data released April 15 from the association’s annual Organic Industry Survey.
Specifically, she noted the sales penetration is highest in New England at 87% and the Pacific
Northwest at 86% as expected, but sales penetration in the mountain region is a close 82% and
penetration in South Atlantic reached 79% last year based on the purchase of organic CPG coded
products.
The West South Central region, including the stalwart Republican states of Texas, Oklahoma,
Mississippi and Louisiana even had penetration of 75%, according to the survey. “This additional new
data prove [organic] doesn’t have regional or partisan boundaries,” Batcha said in a prepared
statement. She added at the association’s policy conference in Washington, D.C., April 15 that
additional data show “strong growth in areas that historically haven’t seen the growth.”
For example, the No. 1 market for organic sales growth in 2014 was Salt Lake City with 34% yearover-year growth, followed by Dallas-Fort Worth, which grew 32%, and Phoenix-Tucson, which
increased 31%. These results follow the association’s recent announcement that organic shoppers are
more ethnically diverse now than previously with 14% of black and 16% of Hispanic households buying
organic in 2014.
Growth despite supply crunch
The growth in organic sales in 2014 is “striking” because it occurred in the face of increasing and “very
dramatic” supply shortages, Batcha said. The trade group underscored that currently organic sales
account for 4% of total food sales, while acreage devoted to organic agriculture is less than 1% of total
U.S. cropland. “There is a huge opportunity for rural communities to fill this demand,” OTA said in
materials prepared for the conference.
In particular, organic fruit and vegetables offer potential as they continue to be the largest selling
category in 2014 with $13 billion in sales – a 12% increase from 2013.
Organic dairy also offers opportunity with an 11% increase in sales to $5.46 billion in 2014 – the largest
increase for the category in six years, according to OTA.
http://www.foodnavigator-usa.com/content/view/print/1079950
April 21, 2015: By Oliver Nieburg+, FOODnavigator-usa.com
Europe and North America cocoa grinds slump in Q1
Cocoa processing has dropped in North America and Europe in the first quarter
of 2015, but a futures analyst says chocolate demand remains steady.
The Q1 cocoa grind in North America slid 6% on last year to 121,508 metric tons (MT), according to
the US National Confectioners Association (NCA). Europe’s Q1 cocoa grind also fell and was the
lowest 2009. Cocoa processing in Europe dropped 2% on last year to 337,706 MT, the European
Cocoa Association (ECA) found. The figures were provided by the world’s leading cocoa processors
including Barry Callebaut, Cargill, Mars and Hershey.
The International Cocoa Association (ICCO) said last month that it expected the cocoa market to
revert to a deficit in the 2014/15 season. It said that while global cocoa grinds were expected to decline
1.7% due to moderate growth in demand for chocolate, production would drop 3% to leave a small
17,000 MT deficit. Production is expected to be affected by
seasonal Harmattan winds and dry hot weather in West Africa.
Chocolate demand strong despite grind declines
Judith Ganes-Chase, president of J.Ganes Consulting said today at a workshop at the Asia Choco
Congress in Singapore that grinds had not declined because consumers were consuming less
chocolate, but because of industry buying patterns for cocoa last year. She said the industry panic
bought cocoa last year in response to Ebola fears and consequently processed more than usual. New
factories also came online in Asia last year causing a further spike in prior year grinds, she continued.
“Demand isn’t poor…but industry action is changing. I think demand is holding up quite well given
rising cocoa prices,” said Ganes-Chase. She added that wholesale chocolate price increases by major
brands last year had caused retailers to buy before the hikes were introduced and was another factor
in rising grindings last year.
Price hike fallout?
Analysts said after weak cocoa grinds in Q4 last year that consumers may be responding negatively
to chocolate price hikes from the major players. Nestlé, Hershey, Mondelēz International and Mars
Chocolate North America all introduced chocolate confectionery price hikes in the first half 2014 in
response to rising input costs, particularly from cocoa.
But Ganes said consumers remained loyal to brands and it was chocolate manufactures that were
changing consumer habits by downsizing products and changing recipes to use less cocoa. J.Ganes
Consulting forecasts 2014/15 grinds to be up 1.6% globally, excluding Asia. It expects Asia cocoa
processing rise 2.4% as capacity grows in the region. “The grind is moving closer to where growth in
demand is,” said Ganes.
http://www.foodnavigator-usa.com/Suppliers2/Rise-in-organic-imports-signals-opportunity-for-U.S.-farmers-OTAsays/?utm_source=newsletter_daily&utm_medium=email&utm_campaign=22-Apr2015&c=nr4GVAI4KC1I2QZre4yi%2FjFyfuAHgV5h&
April 22, 2015: By Elizabeth Crawford, FOODnavigator-usa.com
Rise in organic imports signals opportunity for U.S. farmers, OTA says
Sharp increases in imported organic soy beans and corn to the U.S. in 2014 to feed the
expanding organic dairy, poultry and livestock sectors is a “‘help wanted’ message for
American farmers,” according to Laura Batcha, CEO of the Organic Trade Association.
“We are now importing more organic soy beans that we are growing” with 31% of all the soybeans
imported to the U.S. in 2014 being organic, Batcha said at the association’s policy conference in
Washington, D.C., April 15. She added that organic soy bean imports in 2014 were worth $186 million,
and that a bushel of organic soy sells for $30 compared to only $9 for conventional soy. Likewise, 33%
of all imported corn in 2014 was organic and sells for $14 a bushel compared to $4 for conventional
corn. “This is an opportunity for U.S. farmers to take advantage of the premium,” Batcha said. And in
doing so, she added, they could help alleviate the acute shortage of organic dairy and eggs in the U.S.
due to insufficient supply of organic feed grains.OTA is actively educating policy makers about the
disparity between demand and supply of these crops in the U.S. in hopes that they will encourage the
adoption of organic practices by the farming community to take advantage of the premium pricing,
Batcha said. She explained that while there was early adoption of organic practices for those primary
animal feed commodities, the production of organic soy has stagnated since the early 2000s. Organic
corn production has increased, but not fast enough.
Addressing organic farming challenges
Batcha noted there is a “host of reasons” for the insufficient production, including concerns about
making ends-meet during the three-year transition period towards certified organic when crop yields
are lower but farmers cannot yet take advantage of the higher price point for organic. Insufficient data
about the organic sector, such as what quantities the market needs and what the prices will be also
have hindered expansion of organic acreage, according to OTA. Social and mind-set challenges also
could stop farmers from making the switch to organic, OTA notes in materials distributed at the
conference. For example, if a farmer switches to organic she might not have as much in common with
her cohorts in conventional farming and could feel isolated. To an extent, the organic check-off
campaign for which OTA is advocating would address some of these concerns. For example, some of
the funds collected would go towards research that could answer questions about market demand and
production.
Other imports
Beyond corn and soy, most of the $1.28 billion in organic imports in 2014 were products that are not
easily grown in the U.S., according to OTA, which commissioned analysis of international trade trends
of organic products from Edward Jaenicke, an associate professor of agricultural economics at
Pennsylvania State University. His findings, released April 15, found the top five organic imports are
coffee, soybeans, olive oil, bananas and wine. In addition, he found a phytosanitary regulation for
almonds led to a spike in organic almond imports, which account for 53% of almond imports, according
to OTA.
Organic exports are increasing
While organic imports continue to outpace organic exports, exports are up, reaching $553 million in
2014, according to the research. “The U.S. is the preferred provider for fresh organic product in terms
of fruits and vegetables and these products really do over perform in that market,” Batcha said. In
particular, 33% of exported carrots were organic, as were 33% of exported spinach, 42% of exported
cherry tomatoes and 27% of exported onions, she said. Most exports go to Canada and Mexico, but
“we have seen strong penetration in Japan, Korea and Taiwan,” Batcha said, adding, “Increasingly we
supply the world in that fresh market.”
http://www.confectionerynews.com/content/view/print/1080900
April 23, 2015: By Oliver Nieburg+, Confectionerynews.com
Vietnamese plantations to shift to cocoa
production, says cocoa buyer
Vietnamese state-owned companies plan to convert some coffee and rubber
plantations to cocoa, delivering A significant boost to the country’s annual
output, says Vietnam’s principle cocoa buyer Puratos Grand-Place.
Speaking to ConfectioneryNews at the Asia Choco Cocoa Congress in Singapore, Gricha Safarian,
managing director of cocoa ingredients supplier Puratos Grand-Place said that incoming industrial
plantations could grow Vietnam’s cocoa production from 3,500 metric tons (MT) annually to 50,000 MT
in eight to ten years. It would still behind Asia’s largest cocoa producer and world number three
Indonesia, which produces around 400,000 MT a huge, but would be a big boost for the cocoa sector
in Vietnam, where coffee and rice take priority.
Rubber to cocoa conversions
“In the last 18 months I’ve seen three big state owned companies in Vietnam who have rubber
plantations – one is 500 hectares another of 800 hectares – because of market prices they are thinking
of converting to cocoa,” said Safarian. Puratos Grand-Place is offering advice to these companies.
“Hopefully this is our contribution to Vietnam picking up in terms of cocoa production…I really believe
that cocoa has a great chance in Vietnam,” said the company’s MD.
Coffee plantations converting too
There are other plans to convert an even bigger land area in Vietnam because too much coffee was
planted, he added. Safarian said that around 600,000 hectares of coffee was planted, while there was
only demand for 500,000 hectares. Any new cocoa plantations will be a big boost to Vietnam’s current
planted cocoa area of around 20,000 hectares. Five years ago, Vietnam had been projected to
produce about 50,000 metric tons of cocoa for the current crop year (2014/15), but it didn’t happen
because there was no real incentive to grow cocoa as Vietnam instead sought to strengthen its
position as a number two global coffee and rice producer. Safarian said that the cocoa sector in
Vietnam could reach 50,000 MT in eight to ten years when the new plantations come online. Marc
Donaldson, senior partner at On The Ball Consulting said at the Asia Choco Cocoa Congress: “If
Vietnam wanted to grow cocoa they could grow a lot.”
New plantation from Middle East fund
Safarian said that outside investment may encourage Vietnam to take cocoa more seriously. He
revealed one country in the Middle East has established a sovereign fund for a 2,000 hectare
plantation in Vietnam and Puratos Grand-Place is consulting on the project. “They are doing a test of a
2,000 hectare industrial cocoa plantation and are trying to do things right from the very beginning with
the right seedling, the right grafting techniques, water irrigation and fertilizer and if they feel they are
successful they will be looking at within three years to expand this. I think this a new trend in the cocoa
industry that people are seeing: an industrial plantation in which they would blend the neighborhood
farmers – there could be an interesting propagation effect.”
Transformational effect
Safarian said the 2,000 hectare plantation could bring an additional 3,000 -4,000 MT to Vietnam’s
annual cocoa output. He added that if the plantation proved a success it could trigger a much quicker
transformation of Vietnam’s cocoa sector by spurring more rubber plantations to convert to cocoa.
Mars and Cargill have interest in Vietnam and along with Puratos-Grand Place are working together to
grow the sector.
http://www.foodnavigator-usa.com/Markets/PepsiCo-replaces-aspartame-with-sucralose-in-Diet-Pepsi-inUS/?utm_source=newsletter_daily&utm_medium=email&utm_campaign=24-Apr2015&c=nr4GVAI4KC2HtrJ1Lrp9D8vQ0u5fnFmr&
April 24, 2015: By Elaine Watson+, FOODnavigator-usa.com
PepsiCo ditches aspartame from Diet Pepsi in US:
‘While decades of studies show aspartame is safe, we recognize that consumer demand
is evolving’
While aspartame is safe, many US consumers don’t want it in their cola, said
PepsiCo this morning, announcing plans to ditch the much-maligned sweetener
from Diet Pepsi, Caffeine Free Diet Pepsi and Wild Cherry Diet Pepsi in the U.S
from August.
Aspartame will be replaced with sucralose, which is also an artificial sweetener, but has not as much
bad press, while acesulfame potassium (ace K) will remain in the formula.
Explaining the thinking behind the move, PepsiCo SVP Seth Kaufman, Pepsi & Pepsi Flavors Portfolio,
PepsiCo North America Beverages, said the new formulation was developed "after extensive research
and testing with US diet cola drinkers ". He added: “Increasingly, US consumers have been asking for
a great tasting cola without aspartame. While decades of studies show aspartame is safe, we
recognize that consumer demand is evolving and that’s why starting this August Diet Pepsi in the US
will be aspartame-free, providing the refreshing and great cola taste cola drinkers have come to expect
from Pepsi.”
Aspartame has been deemed safe by all major scientific and regulatory bodies
While aspartame has been deemed safe by all major scientific and regulatory bodies based on
analysis of 100+ toxicological and clinical studies, it has repeatedly come under fire from activists and
consumer groups such as the Center for Science in the Public Interest (CSPI), which urges shoppers
to avoid the sweetener over concerns it may be carcinogenic. Meanwhile, several retailers including
Whole Foods feature aspartame on their lists of ‘unacceptable ingredients’ ; General Mills recently
removed it from Yoplait Light ; and Coke and Pepsi have both launched new lower-calorie colas (CocaCola Life and Pepsi True) that use stevia instead of aspartame owing to its more ‘natural’ credentials.
FDA: ‘You have not identified any scientific data… that would cause the agency to alter its
conclusions’
However, the FDA says it has been monitoring the scientific data on aspartame since the 1970s and
has not seen anything to change its position that it is “safe for the general population except for
individuals with phenylketonuria [warning labels about which are mandatory on all products containing
the sweetener]”.
In a letter published on October 24, 2014, responding to a citizen’s petition filed by K. Paul Stoller MD,
FACHM, the FDA said that Dr Stoller had not provided any evidence to show that
current intakes of aspartame exceed the ADI (acceptable daily intake). It also challenged his
interpretation of a 2006 study by the European Ramazzini Foundation (ERF) and said it had not
received data it had repeatedly requested from the ERF about studies conducted in 2007 and 2010. It
concluded: “Despite your many assertions, you have not identified any scientific data or other
information that would cause the agency to alter its conclusions about the safety of aspartame.”
FDA: Anecdotal accounts of adverse effects of aspartame … are not supported by scientific
evidence
In a letter responding to fellow petitioner Betty Martini, founder of Mission Possible World Health
International, “which is committed to removing the deadly chemical aspartame from our
food”, the FDA said that “anecdotal accounts of adverse effects of aspartame [cited in her petition]
… are not supported by scientific evidence”.
Aspartame: There seems to be a gap between perception and reality
From a consumer perspective, meanwhile, aspartame seems to get a bad press regardless of the
science, Datamonitor Consumer innovation insights director Tom Vierhile told FoodNavigator-USA last
year. “This is an area of intense controversy and there seems to be a gap between perception and
reality. Perhaps because it is an older sweetener that has been
on the market longer, aspartame may have attracted more of a negative health perception than
sucralose.”
CSPI: Move should spur other food and beverage companies to abandon aspartame, including
Diet Coke
The Center for Science in the Public Interest (CSPI), which has had a long-running campaign against
aspartame, said the fact that Diet Pepsi will be specifically marketed as 'Aspartame Free' was "a blunt
acknowledgment that consumers have soured on aspartame". It added:"The new cans should increase
consumer awareness even further and spur other food and beverage companies to abandon it
(including in Diet Coke)."
While he was concerned that Diet Pepsi would still contain ace K, which he argued was "poorly tested",
executive director Dr Michael Jacobson said diet soda still represented a better choice than full sugar
soda, however. "Reformulated or not, diet sodas probably are still a better choice than full-calorie
sodas sweetened with high-fructose corn syrup or sugar. While diet sodas pose small risks, the
evidence is strong that regular soda increases the risk of diabetes, heart disease, obesity, tooth decay
and other major health problems."
Coca-Cola said in a statement that it has no plans to remove aspartame from Diet Coke, "America’s
favorite no-calorie soft drink."
http://www.sugar.org/americans-are-consuming-less-sugar-and-less-caloric-sweeteners/
When The Sugar Association notes that all-natural sugar (sucrose) consumption has declined nearly 34
percent over the past 40 years, we are often asked, what about all the other caloric sweeteners often used
in its place? Haven't they gone up?
It comes as a surprise to many that U.S. consumption of total caloric sweeteners —which includes natural
sugar and the multitude of other sweeteners that it is often lumped together with—has actually declined as
well. In fact, total deliveries dropped 15.3 percent between 1999-2013. This is according to United States
Department of Agriculture (USDA) Economic Research Service data.
Needless to say, the targeting of sugar or added sugars as the cause of increasing rates of obesity by
entities like the World Health Organization (WHO) and the 2015 Dietary Guidelines Advisory Committee
(DGAC) just DOES NOT MAKE SENSE, based on the available USDA data.
http://www.reuters.com/article/2015/04/27/usa-sugar-mexico-idUSL1N0XO2IF20150427
Apr 27, 2015: by Chris Prentice, REUTERS
US resumes probe on sugar imports from Mexico
The U.S. Department of Commerce is resuming anti-dumping, countervailing investigations on sugar
imports from Mexico in response to requests to continue the probe, according to a notice published on
its website on Monday.
The department will continue the investigations after receiving timely responses to do so, the notice
said.
The Commerce Department suspended the investigations in December after signing a deal with
Mexico that established floor prices and a quota for imports. However, two U.S. cane refiners
requested that the department reopen the probe.
The deal suspended prohibitive duties on imports of sugar from Mexico that the department levied last
year in preliminary determinations during the probe.
Those anti-dumping and countervailing duties will not resume as the department continues the
investigations, a Commerce spokeswoman said.
The refiners, Louis Dreyfus Commodities BV's Imperial Sugar Co and AmCane Sugar LLC separately
launched the appeals process on Friday after the U.S. International Trade Commission approved the
December deal, which they say will hurt their businesses.
The United States and Mexico have been embroiled in a year-long dispute over low-priced imports that
U.S. sugar farmers and companies said were flooding the market.
The Commerce Department said it plans to make a final determination on its investigations within 135
days.