WINE & ALCOHOLIC BEVERAGES


Experimental winery in Wagga Wagga

The art of wine making was given an innovative boost with the opening of the $1.73 million Stage III of the CD Blake Experimental Winery at the National Wine and Grape Industry Centre (NWGIC) at Wagga Wagga in July. The centre is a partnership between the NSW Department of Primary Industries, Charles Sturt University (CSU) and the NSW Wine Industry Association.

NSW Minister for Primary Industries, Ian Macdonald, said that the facility is a world class resource that will expand the research capacity of the iconic National Wine and Grape Industry Centre.

“The experimental winery will be used for a variety of purposes including teaching, training and the production and evaluation of experimental wines to assess the impact of viticultural or winemaking practices on the final wine flavour,” said Mr Macdonald.

“This will help make the quality of NSW wines even better and build our reputation as a first-class wine producing State. The NSW Government is proud to be a key supporter of this vibrant, valuable and growing industry that supports up to 20000 jobs. Regional NSW is home to some of Australia’s premium and best known wine growing areas. NSW currently exports around half a million bottles of wine every day to more than 100 countries around the world,” he added.

As this is a joint initiative between the NSW Government and CSU, the Government invested $500000 in the current expansion in addition to previous support of $2 million for capital works that was matched by CSU.

Vice Chancellor and President of CSU, Professor Ian Goulter, said that the CD Blake Experimental Winery will be a very important facility for the Australian and NSW wine-making community.

“It is a further demonstration of the partnership between Charles Sturt University, the NSW Department of Primary Industries and the NSW Wine Industry Association,” said Professor Goulter.

The Director of NWGIC, Professor Jim Hardie, said that the facility will be a cradle of great innovation in the Australian wine industry.

“The CD Blake Experimental Winery allows us to test and compare, on a small scale, the effects of grape growing conditions, vineyard management practices and new ways of making wine,” said Professor Hardie.

The NSW wine industry
NSW accounts for one third of Australia’s $5 billion wine industry – with the majority of these wines going to export. NSW has nine of the top 20 wine exporters. NSW is the second biggest wine producer following South Australia, producing about 27% of the national production and 33% of Australian export wine sales, amounting to $895 million. Currently NSW exports about half a million bottles of wine per day to more than 100 countries.

NSW bottled wine sales have grown 12.6% in the last 12 months. This means an increase in domestic revenue of $6.6 million in 2008 to reach $59 million. Further, NSW Wine’s growth has outstripped the State’s growth, with NSW total sales of bottled wine in the same period only growing by 5.8%.

The NSW wine industry continues to act as a significant agricultural industry in the State, employing close to 20 000 people if associated retail and wholesale businesses are included.

The wine and grape industry contributes 7% of the State’s GDP by value and is second only to the wheat industry amongst the agricultural commodities.


Global wine marketing initiative

Twelve of the most recognised family names in Australian wine have joined together to form a global marketing initiative – Australia’s First Families of Wine, officially launched by Federal Minister for Agriculture and Forestry and Fisheries, Tony Burke MP at the Sydney Opera House at the end of August. The collective 12 represent Australian regions across four states. Together they own more than 5500 hectares of vineyards and have over 1200 years of winemaking experience.

The inaugural members of the AFFW are Brown Brothers, Campbells and Tahbilk from Victoria; d’Arenberg, Henschke, Jim Barry, Taylors and Yalumba from South Australia; De Bortoli, McWilliam’s and Tyrrell’s from NSW and Howard Park from WA.

The AFFW will work to engage consumers, retailers, restaurateurs and industry members across the globe about the real character and characters of Australian wine. The inaugural Chairman of the AFFW is Alister Purbrick of Victorian winery Tahbilk, a fourth generation winemaker and custodian of the 150 year old Tahbilk winery on the banks of the Goulburn River.

“While as family winemakers we all value our independence, we do share a common vision – that Australian wine can take on the world’s best and win,” said Mr Purbrick.

Mr Purbrick and his colleagues have been working behind the scenes on the creation of the AFFW for more than three years. The meeting where the idea of the group was first mooted was held in July 2006 before Wine Australia in Sydney.

“Although the Australian wine industry has achieved great success over many years and continues to dominate the UK wine market as the number one wine importer, the AFFW recognises the need to continually evolve and keep ahead of our competitors. The wine industry’s exports to the UK and US are declining in overall value and price per litre. Competing purely on price is not sustainable and is not a long-term competitive advantage. The AFFW will showcase the passion, quality and character of our wine brands that can compete against the world’s best and win!”, he said.

Paul Henry, General Manager Market Development of the Australian Wine and Brandy Corporation, believes the initiative is positive for the wineries involved and for Australian wine in general.

The AFFW will pursue their individual business goals with the shared purpose of being a part of a strong collective. The group will gather together on occasions throughout the world to show the spirit of Australian winemaking is alive, well and thriving as never before.

The new AFFW logo will adorn selected bottles of each winery’s best known wines and the group plans to launch into the European market in May 2010.


Premium brands dominate alcoholic beverage consumption

Despite being faced with monetary pressures as a result of the global financial crisis, Australians do not appear to have sacrificed much when it comes to their choice of alcohol. Strong volume sales performance of imported and domestic premium beer, premium brand spirits and bottled wine priced over $10, contradict any perception that Australians will turn to cheaper alcoholic beverages in times of struggle.

According to the latest Nielsen report (Nielsen ScanTrack Liquor), imported premium beer and domestic premium beer enjoyed significant volume growth of 15.3 and 18.6% respectively for the Quarter to March 2009 versus the previous year, while premium spirits increased by 21.3%. Volume sales still increased for the cheaper, more traditional beer and spirit segments (mid-strength/full-strength beer 4.9/4.8%; standard spirits 9.4/16.5%), however this growth was modest when compared to their premium counterparts. Low alcohol beer volume decreased by 9.2%.

When it came to wine, the overall category continued to experience volume losses driven by long term declines in the value-end of the market (cask wine down by 5.1% and bottled wine under $10 down by 5.6%). However, increased consumer demand for more expensive wine (bottled wine priced $10–$20 up by 5.6%, and bottled wine priced over $20 up by 4.1%) is contrary to the category’s overall downward sales trend.

Capitalising on the growth opportunities presented by premium liquor, Diageo Australia recently announced the launch of a new premium rum, Bundaberg Reserve, which is to be supported with media, digital, trade and PR activity worth over $1 million over the next 12 months.

“We intend to leverage our best-in-class portfolio of premium spirits brands to meet the continued consumer demand for something more special,” said Sally Smallman, Head of Consumer Planning and Communications.

Peter McLoughlin, CEO of Pacific Beverages, commented that, despite the worsening economic climate, consumers were still prepared to pay for beer brands, which offered superior quality. Pacific Beverages brands such as Peroni Nastro Azzurro, Grolsch, Miller Genuine Draft and Bluetongue were growing well ahead of the category as a result and appeared relatively unaffected by the downturn.

“Instead of trading down when it comes to buying liquor, Australian consumers are becoming more sophisticated and are choosing high quality spirits, premium wines and a wide and growing variety of premium or artisan-style beers,” said Michael Walton, Executive Director of Nielsen Australia’s Liquor Services Group.


Australian wine world first carbon neutral

Taylors Wines ongoing commitment to environmental stewardship has taken a great step forward with the announcement that the Taylors Eighty Acres range of wines are 100% carbon neutral based on a Life Cycle Assessment (LCA) model compliant to ISO14044. They believe that this is a first for any wine brand or range in the world.

To achieve this, Taylors Wines worked with Provisor, a consultancy specialising in the wine, food and beverage industries, to develop a Life Cycle Assessment (LCA) model compliant with ISO 14044 to accurately measure the carbon dioxide equivalent emissions at every step in the life cycle of the Taylors Eighty Acres range of wines. That life cycle begins in the vineyard before harvesting and ultimately ends with the consumption, disposal and recycling of the finished packaging – a complete cradle to the grave approach. This analysis was then independently audited and approved by RMIT University.

According to the ACCC’s guidelines, Green Marketing and the Trade Practices Act, an organisation should “consider the entire life cycle of a product when making claims about carbon neutrality”. The Department of Climate Change’s National Carbon Offset Standard (draft) clarifies this further, mandating that companies “undertake a Life Cycle Analysis (LCA) assessment in accordance with the ISO 14040 series” if making claims about a product or service’s carbon neutral status. Organisations making carbon claims may fail to calculate carbon dioxide equivalent emissions relating to the entire product life cycle if they do not use an ISO14044 compliant assessment technique.

Based on an extensive review of carbon claims world-wide, Provisor established that Taylors Wines were the first winery in the world to produce, market and sell a range of 100% Carbon Neutral wines following the requirements of the International Standard for Life Cycle Assessment ISO 14044.

The LCA approach allowed Taylors to define an accurate total carbon footprint and subsequently work to minimise emissions prior to off-setting the balance. To assist with the reduction of emissions, Taylors has moved the Eighty Acres range into O-I’s new Lean + Green™ lightweight bottles. This new glass bottle is almost 40% lighter than the original glass used and delivers a reduction in CO2 equivalent per bottle of more than 15%.
Taylors then selected Carbon Neutral, a not-for-profit organisation which provides carbon offsets including Verified Emission Reduction Units (VER), to offset the sum of carbon emissions. Taylors Wines and Carbon Neutral purchase their VER through domestic projects, independently certified by the Australian Federal Government, ensuring the avoided emissions maximise the benefit to the local environment.

Mitchell Taylor, CEO of Taylors Wines, is excited by this achievement but recognises there are more initiatives that can be undertaken on the road to environmental sustainability.
“As a family owned winery we are committed to reducing our impact upon the environment. Our direct link with the land, along with the long-term view we hold for our business, means we acknowledge the responsibility we have in protecting our environment both for the present and future generations. The LCA Model will be instrumental in helping us fulfill this commitment through providing an accurate picture of our total carbon dioxide equivalent emissions,” he said.

100% Carbon Neutral status applies to all Taylors Eighty Acres wines bearing the Taylors 100% Carbon Neutral Leaf trademark on the bottle and carton.

Other environmental initiatives being undertaken by Taylors Wines include ISO 14001 Environmental Management System, Eco-mapping™, water recycling, composting and vineyard mulching, Wakefield River regeneration, the use of energy from 100% renewable sources in Taylor’s Head Office and sheep grazing over the winter to reduce the need for both mowing and weed spraying.

Further information is available from www.eightyacres.com.au.


Seniors favour premium alcohol brands and water

With substantial assets and significant liquid capital, seniors are likely to ‘upgrade’ and choose premium products, particularly those ‘empty nesters’ who have no dependent children to support. Most of today’s consumers in their 50s and above have years of experience of consumption, enabling them to spot better quality products more easily. The recent ‘less is more’ philosophy might reinforce the pursuit of high quality products.

Matthew Taylor, Consumer Analyst at Datamonitor has provided his insights on Senior populations in Australia and New Zealand and their attitudes to alcoholic and non-alcoholic beverages.

In demographic terms, Australia is a relatively mature region, with almost one third of its population accounted for by consumers aged 50 and above in 2007. In Australia, the Senior proportion of the population is forecast to continue growing to 33.6% by 2012. Growth will be slightly slower in New Zealand where Seniors will account for 29.6% of the population by 2012. This should make the Senior consumer particularly worth targeting in terms of potential market size alone.

Alcoholic drinks are enjoyed by all age groups above legal drinking age, but tastes and attitudes are subject to a significant degree of change as consumers grow older. Younger age groups are likely to have few commitments, making the money spent on alcohol a relatively low concern. However, this financial concern will increase markedly with age, as consumers start families and make major purchases, such as houses and cars. Consumers will sometimes choose alcoholic drinks on the basis of their status credentials. This propensity is subject to wide variations with age, with many older consumers choosing alcoholic beverages that they feel give an air of sophistication when drinking socially.

The beer category is not dominant among Seniors, and wine and spirits are substantially more popular with this age group. These two sectors are more commonly associated with the sophistication and connoisseurship that is valued by Seniors, with both wine and spirits exhibiting colossal variety and a substantial potential for premiumisation. These image-related factors are important to many Seniors who choose to drink alcohol. Wine is often associated with the responsible and moderate consumption of alcohol, which is also appealing to many Seniors. Many wines are designed to be enjoyed with food, which is another factor that can lend some sophistication to the category.

Taste and price remain the most influential factors for Seniors when choosing alcoholic drinks and this is no different to younger adults of legal drinking age. Datamonitor research shows that Seniors are less likely to think of moderate alcohol consumption as healthy. Typically, health concerns will be greater for this age group and many feel that the healthiest approach will be to avoid alcohol altogether.

The ageing of the Baby Boomers is also a factor in turning toward a less materialistic approach to the luxury lifestyle. With increased consumer awareness of ‘sustainability’, many products made with natural ingredients cultivated organically, or sourced from specific origins, are becoming popular among these sophisticated consumers. The appeal is not just related to the high quality image of such products, they also carry the signal that they are ‘danger-free’ and benefit from the natural substances they contain.

In recent years, the importance of remaining hydrated has been widely covered in the general media due to the physical benefits of avoiding thirst in allowing muscles and the brain to operate at optimum performance. The human body contains a high proportion of water, so keeping it topped up with fluids is intuitive to many consumers. This may be one of the key factors in influencing the rising sales of bottled water in many national markets, as consumers seek to gain the numerous benefits of staying hydrated. Datamonitor’s 2008 consumer survey found that hydration is one of the most consistently heeded dietary concerns of all consumers with an average of 53.3% of all consumers stating they pay either a high or very high level of attention to the practice. This level of attention paid to remaining hydrated is highest among Seniors and rises with age to a peak of 57% of respondents aged 65 and above responding positively when surveyed by Datamonitor.

In Australia, the relative consumption of bottled water by Seniors, compared to population numbers, is highest among the mixed Senior and Pre-Senior age group of consumers aged 45–54. This age group ‘over-consumes’ relative to population size, whereas the over 55 age group’s consumption of bottled water is lower than their population share would suggest. The pattern is similar in New Zealand, although consumption among the over 55s is higher in that country. Seniors tend to reduce the amount of water they consume and for those who have retired they may lead lifestyles, which allow them to plan ahead better and do not need to rely on buying water in convenience retail channels. This could be either due to taking water with them when out of home or by having more time to stop for refreshments than is true of still economically active adult consumers.

Fruit juice consumption among Seniors has typically been high. In New Zealand, the proportion of the population aged over 55 ‘over consumes’ in this category relative to their percentage of the population. However, in Australia, this age group is continuing to ‘under consume’ in the fruit juice category.


EXPORTS


Promoting Australian Seafood

Premium prices and better market access for Australian seafood could be among the benefits from a new program announced in May. Seafood Services Australia (SSA) Managing Director Ted Loveday said that a comprehensive branding scheme for Australian seafood would help secure both domestic and international markets.

This followed an announcement by Federal Fisheries Minister, Tony Burke, of funding support of $148 875 for an SSA project, Building Capacity to Promote Australian Seafood – Australian Made, under the Australian Government’s Promoting Australian Produce Program.

“Australian seafood businesses will be well placed to achieve premium prices and protect access to domestic and international seafood markets under this project to promote the environmental credentials of Australian seafood. This capacity building project, to be managed by Seafood Services Australia, has two key elements. Firstly, the highly visible and nationally recognised Australian Made and Australian Grown branding and promotion platform will be utilised to develop an Australian Grown Seafood representation to promote Australian seafood. Secondly, the project will build the capacity of the Australian seafood industry to promote its world leading environmental management practices,” he said.

“It will build the capacity of Australian seafood producers, both wild harvest and aquaculture producers, processors, distributors, retailers and exporters to use the Australian Grown promotion platform and associated brand recognition to promote and differentiate their product in the Australian domestic market and in international markets.

“Also, it will help protect access to international markets by providing international seafood buyers and consumers with assurance that Australian product is sourced from sustainably managed fisheries. This market requirement is becoming increasingly important in several key Australian export markets, particularly the European Union and United States,” added Mr Loveday.

Mr Loveday said that Australia’s world leading achievements in fisheries sustainability have been drastically under-recognised.

“Quite frankly, the Australian industry and governments have spent many years and hundreds of millions of dollars getting our fisheries onto a sustainable footing. Australian fisheries now operate under the most stringent environmental framework for fisheries in the world. The Australian Government’s support for this fisheries branding initiative is just what is needed to enable the nation to capitalise on the world class environmental credentials of Australian seafood. This project will be strongly welcomed by seafood businesses across Australia. It will enable them to receive recognition for their environmental achievements and to capitalise on that in the domestic and export market places,” he concluded.


G’day UK

London’s gourmet shoppers were offered a unique Australian food experience as part of G’dayUK celebrations at the UK retailer Selfridges in June. Austrade’s Senior Trade Commissioner for the UK, Kylie Hargreaves, said that the outlet in Oxford Street hosted a number of Australian-themed G’dayUK activities to help raise the profile of Australian food and wine.

At the Selfridges’ Wonderbar, shoppers were able to sample premium Australian wines through the bar’s innovative enomatic machines which offer a wide range of wines by the glass. Dawn Davies, Selfridges Wine Buyer, added a touch of ‘Down Under’ to the store’s wine shop using themed displays and VIP wine tastings with well-known wine personalities.

Michelin-starred chefs Shane Osborn and Brett Graham created an Australian-themed food and wine menu exclusively for the Selfridges Gallery Restaurant using produce available in the Selfridges Food Hall for purchase. There were also exclusive promotions and sampling opportunities on selected Australian produce within the Food Hall. Product from more than 60 Australian food and beverage companies was featured.

“There is now a huge range of premium, innovative Australian products available in both gourmet stores and supermarkets in the UK and demand simply seems to keep growing. For example ‘free-from’ foods (eg free from gluten, dairy) have long been an accepted part of the Australian shopping experience; the UK is picking up this trend and the free-from market has recorded double-digit value and volume sales growth in recent years.

“Products that provide health benefits as well as convenience are also predicted to become more prevalent as consumers demand more from convenience food in the UK. By 2015, the UK takeaway and convenience food sector is predicted to experience double-digit growth to reach a value of £12.3b,” said Ms Hargraves.

G’dayUK is a celebration of uniquely Australian products, people, places, businesses, skills and attitude and is part of a broader strategy by Australia to continue to develop its relations across the world. G’dayUK 2009 is supported by the New South Wales, Queensland, Victorian, South Australian and Western Australian State Governments, Austrade, Qantas and Tourism Australia in conjunction with the Department of Foreign Affairs and Trade, Wine Australia, Australian Business and key private sector sponsors.


NSW Export Awards

The 2009 Premier’s NSW Export Awards provide an opportunity for companies in NSW to highlight their international business success. The Premier’s NSW Export Awards are open to all NSW firms that are doing business in the international marketplace. Award categories recognise the range of exports from the State and include agribusiness, small business, regional and manufacturing, among others.

The NSW Government, through the Department of State and Regional Development, is the major sponsor of the awards and sponsors the Exporter of the Year Award and the Regional Export of the Year Award. Winners of the State awards go on to represent NSW at the Australian Export Awards.

Previous winners of NSW export awards include Bega Cheese and Casella Wines as well as non-food companies.

Entries in the 2009 Premier’s NSW Export Awards close on August 7. Further information is available from www.exportawards.gov.au/nsw.


Donut King coffee to China

Australia’s biggest donut maker Donut King has exported its first shipment of roasted coffee to mainland China, as part of its growing presence in that country. The 288 kg of DK Royal Bean coffee blend will be used by the four Donut King stores in Shanghai China, owned by China licensee Mak Brands Limited.

The DK Royal Bean coffee has been specifically developed at Retail Food Group’s dedicated coffee roasting facility in Sydney, called Caffe Coffee. It is used in all Donut King outlets and features a ‘unique blend of international beans’.

The first shipment will provide more than 23 000 shots of espresso, with more shipments expected to follow later this year. More than 20 Donut King outlets are expected to be open in China by 2014. Donut King National Marketing Manager Tracey Catterall said Donut King was developing a strong reputation for coffee.

“While we’re synonymous with donuts, people are sometimes surprised to learn how good our coffee really is. It’s such an important part of our business that we’ve invested in the creation of own coffee blend, DK Royal Bean, designed to match the taste preferences of our customers. We have also invested heavily in training coffee baristas in outlets to ensure the best beans become the best coffee,” she said.

As Australia’s largest specialty donut and coffee chain, the Donut King franchise system has more than 300 stores across Australia, employing over 4600 staff and serving 30 million donuts to Australians every year.


Cost recovery impacts organic and commodity exports

The Federal Government’s intended elimination of financial support for organic and other exporters has drawn a sharp response from the Biological Farmers of Australia (BFA, www.bfa.com.au).

From 1 July, the Australian Quarantine and Inspection Service (AQIS) is recovering all costs for the management of their activities pertaining to the export of organic products. BFA’s view is that without a concurrent overhaul of the Export Orders Act the government’s move will double charges and red tape while simultaneously dampening opportunities for export.

The changes will see the AQIS export program for organic products (along with other commodity export programs) being stripped of the 40% government co-contribution. In addition, expected rises in costs for management will be factored into the charges, which will result in a rise of more than 50% in program costs, to be charged directly to the commercial exporters.

According to Dr Andrew Monk, BFA Director and Organic Standards Convenor, the only way to offset the negative impact of the proposed changes and to prevent bureaucratic doubling-up is to institute simultaneous changes to the Export Orders Act for organic produce. Dr Monk cites Australian Certified Organic’s (ACO’s) successful history of achieving direct overseas market access for clients.

“Given AQIS’s limited jurisdiction, it has been up to ACO and other certification agencies to manage the integrity of certified organic claims as the consumers’ best means of ensuring they get what they pay for. ACO has led Australia in achieving export accreditation in the US, Japan, and other countries and in cutting through red tape to ensure that there are choices in world marketplaces for small and large operators alike. With direct accreditation achieved with such countries as Japan and the US, the need for AQIS jurisdiction on export orders to these destinations should be eliminated,” he said.

“BFA will be working with AQIS and the Government to achieve a positive outcome for the organic industry. However, in the absence of an overhaul of the Act and with the elimination of any residual support for export activity, export growth will be hampered at a critical juncture in our country’s economic cycle,” he added.

Some observers say that a move to full cost recovery could threaten thousands of Australian rural jobs, particularly given this will be applied to all commodity groups.   
“It’s ironic that that this should happen at a time when many other governments are protecting domestic markets while enhancing and supporting export activities,” said Dr Monk.


SALT in food


Salt in food

As a result of recent publicity concerning salt consumption and salt levels in food, FSANZ have issued a fact sheet How much sodium and salt are we eating? It is reproduced here with the permission of FSANZ and can also be found at www.foodstandards.gov.au/newsroom/factsheets2009/howmuchsodiumandsalt4340.cfm

How much sodium and salt are we eating?
Salt is also called sodium chloride and it is the sodium in salt that can be bad for your health.

Sodium in food
Most of the sodium in our food comes from sodium chloride (salt), which is added to foods for flavour and as a preservative. Sodium also occurs naturally in almost all foods and can be present in processed foods due to use of some food additives, for example, sodium bicarbonate used as a raising agent in cakes and biscuits.

What are the recommended sodium intakes?
The National Health and Medical Research Council (NHMRC) recommends that Australian adults consume less than 2.3 g (2300 mg) of sodium per day (equivalent to about 6 g of salt). The NHMRC Dietary Guidelines for Australian Adults (www.nhmrc.gov.au/publications/synopses/_files/n33.pdf) recommend choosing foods low in salt.

How much sodium do Australians eat?
Using our most recent analytical data, FSANZ has estimated current sodium intakes for the Australian population. These results show that Australians consume an average of 2.2 g of sodium per day from sodium chloride (80% from processed foods and 20% from salt used at the table or in home cooking), with smaller amounts of sodium coming from naturally occurring sodium or sodium-containing food additives. However, some Australians (34%) are estimated to consume sodium at levels above that recommended.

Recent media reports suggest that Australians regularly consumed more than 40 g sodium chloride (salt) a day. In contrast, FSANZ’s estimates showed that 95% of Australians consume less than 8.5 g of salt each day, with the highest daily salt consumption calculated for an individual to be 26 g. 

The foods that contribute the most to Australians’ sodium chloride (salt) consumption are bread and bread rolls (25%), meat, poultry and game products and dishes, including processed meat (21%), cereal products and cereal based dishes (eg biscuits and pizza) (17%), savoury sauces and condiments (8%) and cheese (5%). Breakfast cereals contribute approximately 4% of total salt consumption from processed foods and dried soup mixes less than 3%.

Is sodium identified on food labels?
Salt and sodium-containing additives must be identified in the ingredients list on food labels. The total sodium content of packaged foods must also be declared on the Nutrition Information Panel on the food label. Many fast food companies also provide this information at point of sale, eg on leaflets, posters, wrappers etc.

How much sodium is in Australian foods?
FSANZ monitors the levels of sodium in the Australian food supply. Sodium analysis was included in monitoring programs for 2006 and 2008 and also in a recent national survey. In these surveys, the foods found to contain the highest levels of sodium per 100 g were potato crisps, processed meat and meat products including sausages, meat pies, sausage rolls and chicken nuggets, cheese and pizza. Other high salt foods include a range of sauces, spreads and condiments, generally used in small serving sizes.  

The food industry has been reducing salt in various products and survey results indicate that levels of sodium in some processed foods have declined in recent years. For example, sodium levels in margarine, savoury biscuits, soup and mayonnaise were lower compared to previous studies. Average sodium values for various foods tested in recent FSANZ programs are presented in the table below.


How can I reduce my sodium intake?
Too much sodium in the diet has been linked with increased blood pressure and hypertension, a risk factor for cardiovascular disease, including stroke and heart attack. Consumers concerned about their sodium intake should check the Nutrition Information Panel on food labels for the total sodium concentration per 100 g of food and compare the labels of like foods to select those with low or reduced sodium amounts. Some foods are labelled as ‘low salt’ foods. A ‘low salt’ food is defined by the Australia New Zealand Food Standards Code as a food with a sodium concentration of no more than 120 mg per 100 g. Other claims that assist with choice of lower sodium foods include reduced salt/sodium, salt/sodium free, and no added salt/sodium. Reduced salt means the food must have a limited amount of sodium and have at least 25% less salt/sodium than the comparative reference food. Sodium intake can also be reduced by limiting use of salt in the home, for example, by adding less salt to food during and after cooking.

AWASH perspective
In response to the recent debate surrounding estimates of Australian salt intakes, the Australian Division of World Action on Salt and Health, (AWASH, www.awash.org.au) has released the following statement.

AWASH believes that the current confusion over Australian salt consumption further highlights the need for definitive data. The government must ensure that adequate methods of reliably estimating sodium intakes are included in the Department of Health and Ageing’s Health Risks Survey, which is planned to commence in 2010. Further, AWASH believes that the estimate of salt consumption derived from the dietary modelling methods used by Food Standards Australia New Zealand (FSANZ) significantly underestimates the actual intake.

The National Health and Medical Research Council (NHMRC) Nutrient Reference Values define a Suggested Dietary Target of 4 g of salt (1600 mg of sodium) per day and an Upper Level of Intake of 6 g of salt (2300 mg of sodium) per day (NHMRC 2006). It is of note that the optimal level of daily salt intake is actually much less (1–2 g/day) and both government criteria represent a pragmatic compromise position.

Recent media sources reported that many Australians are eating as much as 40 g of salt a day. This is incorrect and appears to have resulted from a media misinterpretation of the statement that “Australian’s are eating 5–10 times more salt than they need for optimal health.” Australians almost certainly are eating on average 5–10 times more than the 1–2 g/day required but are not eating 5–10 times more than the Suggested Dietary Target of 4 g per day.

In its recent release (p 255), FSANZ estimated that Australians aged two years and older consume an average of 5.5 g of salt (2150 mg of sodium) per day. Further, FSANZ claims that 95% of Australians consume less than 8.5 g of salt each day and that only 34% consume more than 6 g of salt per day. The highest daily salt consumption calculated for an individual was 26 000 mg (26 g).

The FSANZ estimates were based on dietary modelling. This modelling is prone to important biases because it uses old 1995 National Nutrition Survey data and dietary recall methods have been found to substantially underestimate sodium intake (Espeland & others 2001).

While there are no representative studies that have made gold standard salt intake estimates based on urinary sodium excretion, it is likely that average Australian intake is substantially above the 5.5 g per day suggested by the FSANZ data. It is of specific note that:

  • Studies in Australia that have used urinary analysis in non-representative samples have all estimated daily salt intake to be significantly more than 5.5 g per day (Webster & others 2008)
  • The recently reported government’s Children’s Nutrition and Physical Activity Survey revealed that many children are eating more than twice the Suggested Dietary Target for salt each day (DHA 2008) and are consuming salt far in excess of the government’s recommended daily upper limits. For the recent FSANZ population salt consumption estimates to be correct it would be necessary for many children to be eating more salt than adults. This seems unlikely.
  • Other developed countries for which there are gold standard salt consumption estimates systematically report much higher average levels of population salt consumption that those suggested by FSANZ. Given the broad commonality of diets across developed countries and the absence of any concerted action to reduce salt consumption within Australia it is highly unlikely that Australia has an average salt consumption much lower than other countries.

Finally, even if the FSANZ estimates were correct (which they are almost certainly not) they would still be of huge concern. Salt consumption above 1–2 g per day is a leading cause of the rise in blood pressure with age and high blood pressure, alongside smoking, is the single greatest cause of premature death and disability in Australia.

In conclusion, we reiterate our call that the government must take urgent action to ensure that we have truly reliable estimates of population salt intakes that are monitored over time. Furthermore, government must take leadership of this issue and work with industry to agree upon a comprehensive plan for the implementation and monitoring of a national salt reduction strategy.

References
DHA. 2008. 2007 Children’s Nutrition and Physical Activity Survey; www.health.gov.au/internet/main/publishing.nsf/Content/phd-nutrition-childrens-survey
Espeland, MA & others. 2001. Statistical issues in analysing 24-hour dietary recall and 24-hour urine collection data for sodium and potassium intakes. Am. J Epidemiol. 153(10): 996-1006.
National Health and Medical Research Council. 2006. Nutrient Reference Values for Australia and New Zealand Including Recommended Dietary Intakes. Department of Health and Ageing, Canberra.
Webster, J & others. 2008. Measuring Australian Salt Intakes. High Blood Pressure Research Council Annual Conference, November.


Iodised salt required from October 2009

Australian bakers have been reminded that they need to replace the salt that they currently use in bread making with iodised salt from 9 October 2009. When launching the Australian User Guide for Mandatory Iodine Fortification in May, Food Standards Australia New Zealand’s Chief Executive Officer, Steve McCutcheon, said that the baking industry needs to be aware of the changes that become mandatory in October.

“Iodine is essential for good health and mild iodine deficiency has re-emerged in Australia over the last 10 to 15 years. FSANZ has developed a mandatory iodine fortification standard to help address this iodine deficiency in Australia and New Zealand. The new standard requires the replacement of non-iodised salt in all bread, where salt is added, with iodised salt with a range of 25 to 65 mg of iodine per kilogram of salt. It also applies to the small amount of bread imported into Australia, usually as frozen dough. However, bread described as organic is exempt,” said Mr McCutcheon.

“This simple user guide explains exactly what bakers have to do to replace the current salt they use with iodised salt. This must be done in all products made from bread dough that contain yeast and salt.  This includes loaves, buns, rolls, pita, naan, focaccia, pide, bagels, topped breads, buns and rolls (such as cheese and bacon rolls), baked English-style muffins, sweet buns, and fruit breads or rolls.

“The user guide also details what labelling changes may be needed, for example, if the bread is packaged and not made on the premises where it is sold then iodised salt must be listed in the ingredients list. Mandatory iodine fortification comes into force just after the folic acid mandatory fortification of bread to make it easier for bakers and bread manufacturers to make any labelling changes in one go. A user guide for folic acid mandatory fortification of bread making flour is also available.

“We greatly appreciate the time the baking industry and flour milling industry have taken to bring in these important health initiatives. We also want to make sure that smaller bakers are aware of the changes and have the information they need. We are also working closely with health professionals on consumer information about the mandatory fortification of bread with iodine and folic acid which will be released closer to when the changes are being made,” concluded Mr McCutcheon.

The Australian User Guide for Mandatory Iodine Fortification can be found on the FSANZ website at www.foodstandards.gov.au/thecode/industryuserguides/mandatoryiodineforti4336.cfm and the Australian User Guide for Folic Acid Fortification at www.foodstandards.gov.au/thecode/industryuserguides/mandatoryfolicacidfo4208.cfm.

Information relevant for New Zealand is on the New Zealand Food Authority’s website, www.nzfsa.govt.nz.

For previous discussions on salt in food and information on the ILSI Science of Salt seminar see Food Aust. 61(6): 224, June 2009. For the next symposium on this topic see adjacent.
Further comment via Letters to the Editor is welcomed.


Salt in the diet: the elephant in the room: why health professionals need a shake up
13 August 2009
The George Institute for International Health, Westpac Building George St/ Regimental Square, Sydney

This symposium is held under the auspices of the Australian Academy of Science and sponsored by The Nutrition Society of Australia, Sydney Group.

Its aim is to raise consumer and health professional’s awareness of the health consequences of excessive salt intake and to disseminate strategies that can be implemented at a federal, state and community level to reduce dietary salt intake.

Invited speakers include Professors Stewart Truswell and Jennie Brand Miller, University of Sydney, Professor George Jerums, University of Melbourne, Dr Russell Keast, Deakin University and Dr Jennifer Keogh, CSIRO. Others are Dr Geoffrey Annison AFGC and Susan Anderson, National Heart Foundation, plus community health and nutrition specialists. They include Associate Professor Stephen Corbett, Centre for Population Health, Sydney West Area Health Service, Robyn Speerin, Fairfield Cardiac Rehabilitation & Complex Cardiac Care Service, Jacqui Krassie, J Krassie & Associates and Jacqui Webster, AWASH.

The program addresses a range of issues including the role of salt in cardiovascular risk and diabetes, salt in foods and menus, taste perception, food labels and industry and regulatory issues.

There will be Panel Discussions on Developing a framework for health professionals and Developing a coordinated policy framework.

The final hour of the day will be a free public lecture, Should you be eating that much S**T (salt)? given by Dr Bruce Neal, George Institute for International Health.

Early Bird registrations close 31 July.

People D Pty Ltd
Tel: 0417 358 894
Fax: (03) 9011 6285
Email: register@peopled.com.au


IMPORT / EXPORT


BFA opposes banana imports on organic grounds

The Biological Farmers of Australia (BFA) has announced its opposition to the Director of Animal and Plant Quarantine’s recent policy determination that Australia accept imported bananas from the Philippines, on the grounds that it could affect Australian producers’ certified organic status.

In March, Biosecurity Australia (BA), confirmed the recommendation that Cavendish bananas be allowed to enter Australia where appropriate risk management measures are met under the newly determined quarantine policy.
On behalf of the organic industry, BFA has now joined organisations including the Australian Banana Growers’ Council (ABGC) in voicing its concern over Philippine banana imports. Dr Andrew Monk, BFA Organic Standards Committee Convenor, said that the real risk inherent in importing Philippine bananas for farmers using biological controls has not been considered. 

“For certified organic producers, this decision carries both marketing and production implications because it allows for the potential introduction of exotic diseases that cannot be treated or eliminated using organic or biologically orientated methods,” he said. 

Dr Monk says that exposure to foreign pests and disease could destroy the livelihoods of farming families and farm workers connected with the organic industry, “a promising and growing market sector in its own right”, in a matter of days. He added that the import recommendation also jeopardises Australia’s growing reputation as a provider of ‘clean and green’ foods – a claim which many organic farmers build upon. 

“BFA supports the prohibition of specific imported products from countries where there are clear biosecurity risks associated. We do not want to ruin the advantage of separation from product contamination which Australia’s isolated geographic position affords,” he said.

BFA is calling on the current approach to both scientific and market risk review to be adjusted by relevant departments including the Department of Agriculture Fisheries & Forestry (DAFF); the Australian Quarantine and Inspection Service (AQIS); and the Department of Foreign Affairs and Trade (DFAT), to a format that pertains to developing markets like organic. Dr Monk said that review processes should take into account the market for consumers seeking natural food products not sprayed with synthetic pesticides, fungicides, and insecticides; as well as the Australian farming families that cater to organic demand domestically and internationally.

Further information on this issue is available from www.daff.gov.au/ba/ira/current-plant/banana-philippines


India reopens market for Australian dairy products

Australian milk products can be exported to India for the first time since 2003, after years of detailed negotiations by the Australian Government.

Australian dairy exports to India were worth around $6 million annually in 2003, including milk powder concentrate and lactose and that is expected to grow once trade recommences in the near future. Industry is also expected to gradually seek a share of other imports such as cheese, which is currently worth $4 million and growing at 100% per annum. Dairy desserts such as ice cream will be another key dairy product of high value.

Several Australian exporters have expressed a keen interest in exporting dairy products for human consumption to India. The announcement follows the Indian Government’s approval of a new system for the health certification of Australian milk products developed by the Australian Quarantine and Inspection Service. Trade had ceased in late 2003 when India changed its import requirements.

The Minister for Trade Simon Crean said that the reopening of trade showed the growing agricultural relationship between Australia and India and the benefits of on-going cooperation on bilateral trade issues.

“India’s changing demographics – particularly its growing middle class and urbanisation – is creating real potential for the trade growth and Australia is well placed to provide high-value dairy products,” he said.

Minister for Agriculture, Fisheries and Forestry Tony Burke said that Australian dairy producers were under pressure from factors including global input prices and the falling farmgate price.

“This will be a great opportunity for the industry at a time when Australian dairy producers have been going through a difficult period,” he said.


Guides to worldwide food regulations

Leatherhead Food International’s series of Regional Regulatory Guides have been updated. Providing a guide to food law in four key regions, the publications review topical subjects such as additives, contaminants and genetic modification. The updates include new information on labelling, shelf-life requirements, compositional standards and the regulatory authorities, registration and import requirements and restrictions, for a number of countries. Updated respectively in September, October and November 2008 are guides on Central/Eastern Europe, Middle East, Far East/South Asia and Latin America.

Further information is available from: publications@leatherheadfood.com.


AGRIFOOD


Good honey season in 08/09

One of Australia’s major honey producers has predicted an outstanding season as a result of rising demand and stronger supplies following good flowering conditions around Australia. The quality of honey is also described as excellent with enhanced flavour and density due to current climate conditions.

Leabrook Farms, which is owned by Adelaide’s Spring Gully Foods, expected to sell more than 4000 tonnes of honey in 2009, sourced entirely from Australian bee keepers. This is a significant increase from the 800 tonnes of honey produced when the Leabrook Farms brand was purchased by Spring Gully in 2001.

Kevin Webb, Managing Director of Spring Gully Foods, said that while Australian honey stocks had been very low during the winter months of 2008, the return to spring and good flowering in many forests around Australia meant that new honey was plentiful during the summer.

“Australia’s honey industry is on the brink of a major expansion as overseas countries hit by declines in bee numbers look for alternative sources of honey and crop growers in Australia look to expand. Only recently we heard that almond growers in Australia will need another 100 000 hives in the next few years just to fertilise the new orchards that have been planted, so bee keepers will certainly be in demand. This will have the additional benefit of increasing honey supplies in coming years,” he said.

“Overseas demand for honey and for Queen bees to overcome declining hive numbers in those countries also points to growing interest in bee keeping as a profession. The USA has reported a drop of about 25% in bee hive numbers because of disease and is looking to Australia as a clean supplier,” he added.

Mr Webb said that Spring Gully Foods was currently riding the international export wave of success by securing ongoing export deals with several overseas markets.

“We have recently secured export deals in Singapore, Japan and China. This has been largely based on Australia’s “clean” and “green” reputation. At the same time, we have been able to expand our operations interstate and have consolidated our position as one of the top three honey brands in Australia. With plans for further expansion, we will be looking for as much honey as Australian producers can supply,” he concluded.

Leabrook Farms is a wholly South Australian owned brand, which is now one of the top three honey producers in Australia. Their honey products are available in all major supermarkets.


Coles extends “Australian grown” message

Coles Supermarkets have begun to use the classic ‘Australian made, Australian grown’ green and gold triangle/kangaroo icon in its weekly catalogues, to offer more information to customers about the origin of fresh food. The new icons will indicate to customers where their meat, fruit and vegetables have originated so they can support local farmers, producers and growers. In Western Australia, the ‘Buy West, Eat Best’ logo continues to be used in accordance with a local government initiative.

Coles’ General Manager Fresh Produce, Peter Pokorny, said, “We know that buying Australian grown fresh food is important to our customers and are committed to sourcing quality local produce, meat, deli and dairy, where possible. Over the course of the year, 97% of the fresh produce sold in our supermarkets is home grown … ”

The icons will also allow customers to identify the origin of fresh produce by state within Australia, such as Queensland Mangoes, or more regionally specific, Gippsland Asparagus. Coles chose to display this information by adapting the classic green triangle and gold kangaroo icon, which, according to Roy Morgan research, is recognised by 98% of Australians.

Australian Made, Australian Grown Campaign Chief Executive, Ian Harrison, congratulated Coles on the move.

“Coles has used the green and gold kangaroo icon on its Australian home branded products for many years. Now, the inclusion of regional information in its catalogues is a fantastic extension of Coles’ commitment to identifying great Australian produce,” he said.


Nutritional status of crops

A new review from CCFRA UK discusses the many factors that affect the nutrients in fruit and vegetables.

With a growing awareness of the importance of nutrition and diet to consumers, processors and retailers alike, techniques for optimising and maintaining the nutritional content of fruits and vegetables have become increasingly important. These techniques could range from agronomic crop treatments, to postharvest storage and handling. This review, Nutritional Status of Fruit and Vegetable Crops (Review No 61) covers the impact of varieties, agronomy, plant breeding, crop treatments and post-harvest storage, as well as the legislation relating to nutritional and health benefit claims on foods. It also suggests possible ways in which the levels of certain plant compounds could be increased, considering the evidence of crop inputs and management, and highlights possible areas for future practical research work.

It is available via CCFRA’s on-line bookstore at www.campden.co.uk/.


Do farmers get value from value chains?

Farmers will not automatically increase their profitability just by being participants in value chains managed by food processors or food retailers. They need to develop some unique features for their businesses that others cannot easily copy. This is the key message for farmers arising from research that Agribusiness consultant Michael O’Keeffe has completed for the Australian Farm Institute, and which was released at a series of seminars held in Melbourne, Brisbane and Sydney during October 2008.

The research aimed to investigate whether farmers gained any benefit from being integrated into value chains, rather than simply selling their farm products through traditional agricultural marketing systems. The study involved an examination of seven international case studies where groups of farmers have formed alliances with food processors or food retailers to market agricultural products. The case studies included vegetables, fruit and livestock products. The case studies were specifically selected to cover a range of business designs, each of which involved different ways of integrating farmers into value chains.

“There are plenty of stories about how such arrangements disadvantage farmers, but the case studies included in this research also highlight that there are plenty of success stories as well,” said Mick Keogh, Executive Director of the Farm Institute.

“What is obvious is that in cases where farmers have successfully been able to obtain extra value from such marketing arrangements, this has occurred because the farmers have developed unique skills and capabilities that cannot easily be copied by others, including other organisations involved in the value chain.

“These unique skills include specific agricultural production skills for certain commodities, but also additional skills such as being able to accurately forecast supply, the ability to have produce available to meet specific seasonal demand, unique packaging and transport arrangements, or even the ability to meet specific quality or accreditation requirements,” he added.

What is also evident from the case studies is that becoming involved in a value chain is not a ‘set-and-forget’ operation. Markets are constantly changing, and good market intelligence systems and open communication channels with other participants in the value chain is an important way of ensuring that value chains develop resilience, which enables them to evolve in response to changing markets.

This report is available on www.farminstitute.org.au.


New Board at AUSVEG

AUSVEG Ltd appointed a new Board of Directors at the 2008 AGM held in Melbourne in late November, following the adoption of a new constitution for the company. The new board will comprise seven state-representative directors, one from each state and the Northern Territory, and up to two skills-based directors.

The state representatives are John Brent, Queensland (interim Chairman); Geoff Moar, New South Wales; Romeo Giangregorio, South Australia; John Said, Victoria; and Jim Trandos, Western Australia. Representatives from Tasmania and the Northern Territory were still to be announced. Dr Elizabeth Duncan from La Trobe University was appointed as a skills-based director in December 2008.

John Brent has more than 30 years’ vegetable industry experience.


Tomato producer receives SA Great 2008 sustainability award

Australian truss tomato producer, d’VineRipe Pty Ltd, has won a sustainability award in the SA Great Regional Awards 2008 for innovative water and energy savings implemented at its high-tech truss tomato facility in South Australia.

d’VineRipe chief executive officer, Robert Gooden, said that the Mid North/Yorke Peninsula/Southern Flinders region award was recognition of more than two years’ planning and investment by the company in its sustainable water use and CO2 recycling practices. It came within the company’s first year of operation and recognised d’VineRipe’s outstanding achievements and significant contributions demonstrating excellence in regional leadership.

d’VineRipe’s Chief Executive Robert Gooden

Sustainable water infrastructure comprising membrane filtration and reverse osmosis units saves d’VineRipe from drawing nearly 250 ML a year from Adelaide’s potable water supply while energy efficient environmental control systems within the facility maintain temperatures.

“d’VineRipe’s goal from the initial planning stage was to set a precedent for sustainable glasshouse operations and this award is recognition we have achieved that. It says to the business world, and Australia’s horticultural industry that significant planning and investment is critical to achieve sustainability,” said Mr Gooden.

“d’VineRipe would continue to investigate energy savings including the feasibility of installing energy saving screens to reduce the amount of reheating required inside the proposed Stage Two of the glasshouse development and a program to recycle its green waste,” he added.

SA Great is an independent incorporated association. Its annual awards celebrate the positive contribution and successes of individuals, businesses and organisations across a range of categories and are supported by the Government of South Australia and its program partners. d’VineRipe’s award category was jointly sponsored by the South Australian Government and SA Water.

d’VineRipe is a joint venture company comprising fresh produce marketing company, Perfection Fresh Australia Pty Ltd, agribusiness investment manager, Timbercorp Limited and diverse investment company The Victor Smorgon Group. Stage One of its 8.2 hectare glasshouse at Two Wells, north of Adelaide, produced its first truss tomatoes in late 2007.


Bethonga Whole Foods boosts pineapple production

Australia’s leading premium pineapple producer, Bethonga Whole Foods, expects to send 650 000 trays of its trademark Bethonga Gold pineapples to market in 2010 with the appointment of three additional growers in south-east Queensland.

Bethong’s Managing Director Gavin Robinson

National sales and marketing manager, Kees Versteeg, said that the appointments were in line with Bethonga’s growth strategy, which aimed to send one million trays to market by 2012, and brought the total number of contracted Bethonga Gold growers to 10.

About 60% of Bethonga Whole Foods’ current annual harvest of 500 000 trays a year is produced at its 300 hectare home farm at Wamuran, north of Brisbane. The company’s contracted growers produce the remainder on plantations stretching from Queensland’s far north to the south-east corner.

Mr Versteeg said that two of the new growers – based at Wamuran and Elimbah in the Glasshouse Mountains region, were experienced pineapple producers who sought to diversify by growing hybrid Bethonga Gold pineapples. The third, from the Gin Gin district, in the Burnett region, was an experienced vegetable crop grower who would produce pineapples for the first time.
Planting on an additional 17 hectares, spread between three properties, was already under way, with the two-year growing cycle culminating in the first harvest in 2010.

“The increase in our grower base will continue to ensure a year-round supply of Bethonga Gold pineapples, while boosting volumes to meet demand during peak periods. While, summer is traditionally a peak period for pineapple production, we have also experienced a substantial increase in pineapple sales in winter during the past year and need to be able to meet that demand on an ongoing basis. A continuous planting program allows us to more accurately forecast supply and achieve economical returns for the growers.

“We have contracted growers in these locations to meet specific market demands. For example, our Gin Gin grower is ideally located geographically to produce larger fruit in the period between January and March which will support production and supply from the already established regions which, by nature, produce relatively smaller fruit at that time,” said Mr Versteeg.
Bethonga Whole Foods was also continuing to improve practices across its grower base to increase the marketable yield per hectare.


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