Showing posts with label sugar. Show all posts
Showing posts with label sugar. Show all posts

Friday, 14 November 2014

Authorities barred from taking action against sugar millers

The Sindh High Court (SHC) on Thursday restrained the provincial authorities from taking any coercive action against sugar millers for not commencing sugarcane crushing by the deadline set by the provincial government. A division bench headed by Chief Justice Maqabool Baqar granted this injunction while hearing a petition filed by sugar mill owners who moved the court questioning the legality of a provision of the Sugar Factories Control Act, 1950 that give provincial government powers to unilaterally fix a minimum price of sugarcane.

Abdul Hafeez Pirzada, representing Mirpurkhas Sugar Mills and other petitioners, had submitted that the provisions of the Act imposed unreasonable restriction on the petitioners to sell sugar at a loss as government fixes the minimum price of sugarcane arbitrarily and in that respect there is no reasonable protection against the misuse of power and no provision for check by way of the appeal or otherwise.

He said it was categorically envisaged in the prevailing national sugar policy that price of refined sugar "shall" be determined by free market and therefore in prevailing circumstances, the impugned provision has become anachronistic, discriminatory and redundant and same is therefore needed to be struck down. On Thursday, counsel for petitioners filed a miscellaneous application, submitting that provincial government had issued a notification dated November 11 whereby the minimum price of sugarcane was unilaterally enhanced to Rs 182 per 40 kilogram. He added that the government issued another notification, specifying the date of commencement of sugar crushing by November 14.

He said the issuance of the notification regarding sugarcane pricing would prejudice the interests of petitioners, besides they will suffer an irreparable loss. He added that the acts of the government will completely destroy the local sugar industry. He pleaded to the court to declare as illegal and unconstitutional both the notifications and set them aside. After hearing preliminary arguments, the court issued a notice to provincial authorities and restrained them from initiating any coercive action against the petitioner millers for not commencing the crushing till November 19.
Copyright Pakistan Press International, 2014

Tuesday, 19 November 2013

Delay in fixing prices: sugarcane growers stage protest demonstration

Expressing voice concern over delaying in fixation sugarcane prices for this year, dozens of growers staged a protest demonstration on main Sher Shah Suri Road near Press Club here on Monday, demanding the government to fix prices as per growing ratio of price-hike in the country.

The protest demonstration was spearheaded by Kisan Council District Peshawar, Arbab Mohammad Jamil, along with dozens of sugar cane growers. The protesting farmers were carrying placards and banner, inscribed slogans in favour of their demands, and against the Khyber-Pakhtunkhwa government. The protesters marched from Peshawar Press Club to Jinnah Park on main Trunk Road, where they staged a sit-in against the provincial government.

Talking to reporters, Arbab Jamil said the provincial government is using delaying tactics in announcement of sugar cane prices for the next season, which is sheer injustice with the poor farmers. He demanded the prices should be fixed at Rs 300 per/40 kilogram for this current year. The growers' leader said the arrangement should be made to export 'Gur' (raw form of sweet) to foreign countries, especially Middle East and Central Asian States. For this purpose, he urged the authorities to proper guide farmers and facilitation for them to export Gur to other countries.

Kisan Council demanded the government to lift ban on export of poplar wood to neighbouring Afghanistan and to restore the irrigation system through 'civil canal' in Duadzai an area of outskirt of Peshawar, Khyber-Pakhtunkhwa. The growers warned if the government failed to accept their demands forthwith, then they would compel on self-immolation in front of Chief Minister House.
Copyright Business Recorder, 2013

Thursday, 14 November 2013

Government misled by PSMA, Punjab cane commissioner?

Pakistan Sugar Mills Association (PSMA) and Cane Commissioner Punjab have reportedly misled the federal government regarding sugar stocks in Punjab, giving an impression that current galloping hike in prices is not due to the shortage of commodity, well informed sources told Business Recorder.

On November 12, 2013, Cane Commissioner Punjab and PSMA informed a meeting of Sugar Advisory Board (SAB) presided over by Secretary Industries and Production, Shafqat Naghmi that stock with Punjab stood at 748,162 MT till November 6, 2013 which was far higher than the actual stocks available with the mills. An Islamabad-based sugar sector insider told Business Recorder on Wednesday that sugar stock with the Punjab stood at 260,000 MT on October 31, 2013, expressing surprise over a misstatement by the Cane Commissioner with the backing of PSMA and Association member sitting in the meeting, who did not challenge the exaggerated data.

Official documents available with Business Recorder revealed the SAB meeting was apprised that total sugar stocks stood at 923,950 MT as of November 4, 7 and 4 in Punjab, Sindh and KPK, respectively. However, sugar sector insider claims that if 500,000 MT of overstated stock is excluded from the total, it stands at 423,950 MT. An official of Industries Ministry told this scribe on Tuesday that total sugar stocks stood at 882,000 MT and sufficient till January 25, 2013 @ 3,90,000 MT per month.

Official documents discussed at the meeting disclosed that the TCP has 57,876 MT of sugar stock as on November 2013. The ECC of the Cabinet, in its meeting on November 7, 2013, had allowed TCP to procure 50,000 MT more from domestic sugar mills. The documents further reveal that sugar mills have exported 1,002,420 MT of sugar against the quota of 12, 00,000 MT and 3,490 MT against quota of 500,000 MT till November 8, 2013.

Contrary to the claims of Federal Government, PSMA President Punjab Riaz Qadeer Butt told this scribe on November 12, 2013 that only 27,000 MT of sugar has been exported so far. The meeting was also apprised that Rs 216.95 million was to be paid to sugarcane growers from sugar millers for season 2012-13, out of which Rs 216.78 million ( 99.92 percent) has been paid so far. Mill owners still have to pay Rs 170 million to the growers of which Rs 90 million is against Punjab-based mills and Rs 80 million is against Sindh -based mills. Sugar mills based in KPK have cleared growers'' dues.

Officials in the Industries Ministry and one of the top PSMA office bearers have also acknowledged that sugar millers usually float black stocks( not mentioned in the books) in the market and pocket substantial amount from undeclared stocks. However, the PSMA office-bearer was of the view that black stocks are floated during the initial days of crushing season and presently actual sugar figures are mentioned. This is the first time when an office-bearer of PSMA acknowledged that the undeclared stocks are being sold in the market. Last year, FBR had appointed inspectors at mills to examine stocks and the practice to continue this year.
Copyright Business Recorder, 2013

Friday, 8 November 2013

ECC held hostage by big sugar players?


Sugar sector players have reportedly made the Economic Co-ordination Committee (ECC) of the Cabinet hostage to get decisions in their favour by setting aside recommendations and observations of the concerned Ministries. Official documents and well-informed sources revealed that sugar mill owners are using the clout of Finance Minister, Senator Ishaq Dar-chairman of the ECC for preparation of summaries on a war-footing.

The influence of PSMA can be gauged from the fact that the Association wrote a letter to the Finance Minister on October 29, 2013 on the basis of which Commerce Ministry prepared a summary within a few days. Commerce Ministry''s summary, however, indicates that Minister of State for Commerce, Engineer Khurram Dastgir has not been taken on board regarding sugar export summary or he might have refused to become a part of any such proposal in writing. Dastgir always opposed such wheeling- dealing as Chairman National Assembly''s Standing Committee on Commerce.

According to the existing procedure, every Ministry writes at the bottom of the summary that "Minister has seen and approved the summary for submission to the Cabinet or the ECC". Probably Minister of State for Commerce gave his views in the ECC meeting during discussion on this issue, but he was not available to this scribe for comments.

This time PSMA also criticised State Bank of Pakistan (SBP) for allegedly employing delaying tactics in the approval of sugar export cases. These accusations, however, have been denied by the central bank in clear words. Official documents disclosed that ECC considered a summary of Ministry of Commerce and Textile Industry dated September 6, 2013 on "export of sugar" and allowed the mills to export a total 0.5 million MT of sugar, of which 250,000 MT was allowed to be exported with immediate effect up to October 31, 2013 and the remaining 250,000 MT from November 1, 2013 onward.

Pakistan Sugar Mills Association (PSMA) wrote a letter to the Finance Minister, Ishaq Dar on October 29, 2013 and put forward the following demands; (i) sugar mills may be allowed to export 0.5 million tons of sugar in addition to already allowed exports of 0.5 million MT, claiming that crop for the season 2013-14 is expected to be on the higher side and Pakistan may produce more than five million tons of sugar in fiscal year 2013-14 with a carry-forward stock of more than 1.1 million MT. This may create a glut of sugar in the domestic market and would severely affect the sugar industry and the growers; (ii) a decision regarding crushing seasons may be reviewed as it falls under the Sugar Factor Control Act, which is a provincial subject; and (iii) due to a late decision and clearance by the State Bank of Pakistan (SBP), PSMA could not export the desired quantity of 0.25 million MT by the deadline of October 31, 2013; therefore, the desired period for the leftover quantity of about 0.2 million MT may be extended till December 31, 2013.

According to the summary, Commerce Ministry proposed that since the assessment of sugar stocks in the country is the responsibility of the Ministry of Industries and Production, their views have been solicited regarding PSMA''s proposal for export of additional 0.5 million MT.

As regards the other two demands made by PSMA, Commerce Ministry submitted following proposals to the ECC for consideration; (i) the period of the export of the leftover quantity of about 0.2 million MT of sugar may be extended till December 31, 2013; (ii) the starting dates of crushing season as agreed by PSMA''s representatives in the ECC''s meeting held on September 7, 2013 were November 1, 2013 for Sindh and November 15, 2013 for Punjab. However, keeping in view the date given for the start of crushing in Sindh has already lapsed; hence, it is proposed that the new dates for crushing may be fixed as November 15, 2013 for Sindh and November 20, 2013 for Punjab; and (iii) Ministry of Industries and Production may obtain a report from Provincial Cane Commissioners as to whether the outstanding arrears, including Rs 1.7 billion reported by PSMA representatives to the ECC''s meeting on September 7, 2013, have been paid to growers.

The documents further revealed that views and comments of Ministry of Industries and Production and SPB were obtained on the summary prepared in line with the demands of sugar mill owners. MoI&P supported the proposals of Commerce Ministry with the exception that the new dates for starting of crushing season may be fixed as November 20, 2013 for Sindh and November 25, 2013 for Punjab because of Ashura vacations, whereas SBP has refuted the accusations of PSMA regarding delaying tactics.

"SBP has been facilitating the export of sugar in a very professional and proactive manner. Related operational issues were immediately brought into the notice of MoC and a draft circular letter has been sent to the MoC, MoI&P and MoF for their requisite vetting. SBP issued the circular immediately on the same day, after clearance from the stakeholders," said Zaheer Ahmad, a Deputy Director of SBP, Karachi.

SBP, which has been accused of using delaying tactics, informed the government that the Bank has taken into account lesser interest of sugar mills in applying for export of sugar. "Since September, 2013 we have been approving the applications on the date of receipt or within 24 hours but quantity of 41,513,956 MT is still available with us, which can be verified from the website of the Bank," Ahmad added.

Further as per FBR reports, a total quantity of 27,239 MT sugar has been shipped till October 31, 2013 against an approved quantity of 8,486,044 MT of sugar which indicates that only 32 per cent approved quantity has been shipped. SBP further stated that 91 applications involving 88,000 MT sugar pending due to non-availability of quota, were returned to the bank/s sugar mills for resubmission along with the documents required under the latest decision of ECC dated September 7, 2013. The currently received applications are mostly those which have been resubmitted in line with the ECC requirements and approved accordingly by SBP.

An official statement issued by the Finance Ministry after the ECC meeting says: "ECC decided for sugar mills that the new dates of crushing season for sugar mills in Sindh would be November 20th, 2013 and 25thNovember 2013 in Punjab with the condition that sugar mills would start procurement of the sugar cane from farmers from these dates. The ECC had earlier decided that the crushing season would begin from November 1, 2013 for Sindh and November 15 for Punjab. The extension is being given in view of Ashura," it noted.

The official decision indicates both the Commerce Ministry and Industries Ministry have been bypassed by the ECC in accepting the demand of sugar mills owners. The ECC also extended the date for export of 0.5 million tons of sugar allowed by it till December 31, 2013. However, the ECC reiterated that no further extension would be given on this account, the official press release added.
Copyright Business Recorder, 2013

ECC for comprehensive procurement policy: TCP allowed to purchase sugar from local mills

The Economic Co-ordination Committee (ECC) of the Cabinet on Wednesday allowed Trading Corporation of Pakistan (TCP) to import 150,000 metric tons of sugar from local sugar mills for domestic consumption. Finance Ministry reportedly informed the ECC about the unprecedented increase in the price of vegetables, especially tomatoes, onions and others during a presentation on economic indicators. Sources said the meeting was concerned that increase in prices of vegetables could fuel inflation and directed the federal and provincial authorities to monitor the prices of vegetables.

Ministry of Industries and Production reportedly submitted a summary to the ECC for the procurement of 650,000 metric tons of sugar from the local sugar mills, but after a detailed discussion it was decided to procure 150,000 metric tons for supply to Utility Stores Corporation (USC). The meeting presided over by Finance Minister Ishaq Dar also decided that a comprehensive policy on procurement of sugar would be placed before the ECC to work out a mechanism for the purchase of regular requirements for TCP.

A statement issued by the Finance Minister after the meeting stated that the ECC decided that the new dates of crushing season for sugar mills in Sindh and Punjab would be November 20 and November 25, respectively, with the condition that sugar mills would start procurement of cane from these dates. The ECC had earlier decided that the crushing season for sugar mills would begin from November 1, 2013 for Sindh and November 15 for Punjab. The extension is being given in view of Ashura, it noted. The meeting noted with satisfaction that a bumper crop of sugarcane assures a satisfactory stock position of sugar in the country.

The ECC also extended the date for export of 500,000 tons of sugar till December 31, 2013 but stated that no further extension would be given on this count. The meeting was informed that Pakistan Sugar Mills Association had given a categorical assurance to the government that all dues of sugar cane growers had been cleared.

The ECC was informed that local manufactures of Bopet films had approached the Federal Board of Revenue (FBR) for withdrawal of duty relaxation on its import which is presently 5%, contending that their combined capacity was to produce 48000 tons, which had been found in access of the national requirement of 34000 tons.

The ECC decided that this matter would be reviewed by the Committee chaired by Secretary Industries, Secretary Commerce, Chairman FBR and representatives of National Tariff Commission and a report would be submitted before November 18, 2013 for a decision. It would be pertinent to mention here that Bopet films are used for lamination and allied purposes.

The ECC was informed that power production from Biomass/Begasse by sugar mills would add 1500MW to 2000MW to the national grid in the next three years. The ECC approved a revised language to remove an anomaly for tax exemption as stipulated in power policy 2012 and Income Tax Ordinance 2001. This will provide an equal treatment under the framework and remove the anomaly to create a level playing field for all prospective investors.

The ECC approved a request by Ministry of Water and Power for the approval of re-lending rate in accordance with the interest rate allowed by NEPRA to Independent Power Producers (IPPs) for 2660 MW coal fired Jamshoro Power Generation Project. The ECC approved a request of the ministry of Petroleum and Natural Resources to grant it time till December 15, 2013 to put up a report on the study to establish a basis for the revision of a margin for oil Marketing Companies and dealers.

The meeting was attended by Minister of Petroleum and Natural Resources, Shahid Khaqan Abbasi; Minister for Information and Broadcasting, Senator Pervez Rashid; Minister for Water and Power, Khawaja M. Asif; Minister for National Food Security, Sikandar Bosan; Minister for Science and Technology, Zahid Hamid; Ms. Anusha Rehman, Minister of State for Information Technology; Minister of State for Privatisation Khurram Dastagir; Chairman FBR, Governor State Bank of Pakistan Yaseen Anwar; Zubair Umar Chairman Board of Investment and senior officials of the Ministries of Finance, Water and Power, Planning and Development, Commerce, Communications and Industries.
Copyright Business Recorder, 2013

Thursday, 7 November 2013

USC again revises sugar prices upward by Rs 3 per kg

Utility Stores Corporation (USC) of Pakistan once again made upward revision in price of sugar by Rs 3 per kilogramme, which came into effect from October 26; but fresh price received here on November 5. An employee of USC said that head office asked to deposit the difference of price immediately while they had sold out the sugar at Rs 47/kg during last nine days.

The decision to enhance price of one of the most essential kitchen item at a ratio of Rs3 per kg has pushed its rate to Rs50 per kg level compared to previous rate of Rs47 of the same weight.

On the open market, after the fresh increase, sugar at retail level is available to consumers at Rs58 per kg, which was previously sold at Rs54 to Rs55 per kg. Similarly, wholesale prices have gone up to Rs53 to Rs54 per kg.

Few months ago, USC had jacked up rates of sugar and after the fresh increase in its rates would spell financial hardship for majority of consumers hailing from lower segment of the population. USC has been making upward revision in prices of essential commodities without taking pros and cons of the decision on the meagre financial resources of its regular general buyers, complained a buyer at USC's mega outlet on Khanewal road Multan.

He blamed the Corporation for making whooping increase in rates of all essential commodities with the sole objective to make overnight financial gains.

Another buyer at the same USC outlet said the USC was established with the sole objective to provide subsidised items to general consumers but it has fast turned into a money-minting organisation. "Its sole objective now appears to be earning financial gains at the cost of interest of poor and helpless buyers' majority of which stopped visiting USC outlets in search of subsidised items," he added.

An official of an outlet of the Corporation acknowledged about increase in rates of sugar having adverse impact on its daily sales. He admitted frequent increase in prices of essential commodities has negative impact on the purchasing power of common man; consequently, a sharp decline is witnessed at all USC outlets in the demand of all items.

Similarly taking advantage of arrival of Muharram, sugar retailers and wholesalers have also made unilateral increase in rates of the sweetener, which is multiplying financial woes of large number of consumers.

According to a leading retailer, further increase in sugar rates in the open market cannot be ruled out in the next few days with the surge in demand of the commodity spurred by Muharram.
Copyright Business Recorder, 2013

Wednesday, 6 November 2013

Slow stock release: TCP holds payments to four sugar mills

Trading Corporation of Pakistan (TCP) has withheld sugar procurement payment of four mills that were using delaying tactics for release of already procured stocks. Sources told Business Recorder on Tuesday that so far the TCP has released payments of over 80,000 tons of sugar procured from domestic sugar mills in August this year, it has withheld/delayed the payment of some 19,195 tons sugar supplied by four domestic mills.

Reportedly, these mills have been accused for delay of release of sugar stocks, procured by the state run grain trader earlier this year. In June this year, on the request of Pakistan Sugar Mills Association (PSMA), Economic Co-ordination Committee (ECC) asked the TCP to procure some 0.1 million tons of sugar from domestic mills to enable them to pay the dues of sugar cane growers. For the last two years, the mills are facing some financial difficulties due to bumper sugar cane crop and decline in commodity price in the domestic market.

Following the directives of federal government, the TCP finalised deals for the procurement of some 100,000 tons of sugar from local sugar mills through two tenders in August. First tender for the purchase of 50,000 tons of sugar was opened on August 2, 2013, while another tender for procurement of same quantity was opened August 18, 2013.

Under this procurement campaign, so far the TCP has made a payment of Rs 3.75 billion to some 35 mills against procurement of 80,175 tons of sugar. However, payments of some four mills amounting Rs 917 million have been delayed/withheld by the state run grain trader due to slow release of commodity stocks earlier sold to the TCP.

Generally procured sugar stored in the godowns of the mills Utility Stores Corporation (USC) directly lifts the commodity from mills after getting a Delivery Order (DO) from the TCP. "Some mills were using delaying tactics and releasing stocks less than DO issue by the TCP. Therefore to ensure complete supply of procured stock TCP has withheld the payment of some four mills as against 19,195 tons of sugar", they added. Sources said that all other payments have been made by the TCP after getting PSQCA test report, staff surveyor report, stock inspection report and handing over taking over certificate, which are necessary for full and final payment.

As the reports were received, the TCP made payments to mills and take charge of sugar, which will remain in the sugar mills'' godowns under the supervision of "Muqadam", appointed by the TCP. It may be mentioned here that last year, followed by a bumper sugar cane crop of over 55 million tons, the country followed by record sugar production of some 4.2 million tons as against local consumption of about 3.6 million tons annually.

Copyright Business Recorder, 2013

Thursday, 24 January 2013

Sugarcane Interculturing with Bullock

Sugarcane Interculturing with Bullock mounted tool for "weed control, loosening of soil & earthing" perception: by breaking main shoots, more tillers will emerge..........I disagree with that perception......these r the tillers which will give u good yield & sugar recovery in the end..........for rest there r better options available.
By Hadi Laghari

Saturday, 24 November 2012

Inefficient revenue system of agriculture dept: three sugar mills fail to pay over Rs 10 million cane cess

Three sugar mills - M/s Ansari Sugar Mills, M/s Larr Sugar Mills and M/s Kiran Sugar Mills - failed to pay Rs 7.475 million of sugar cane development cess besides a penalty of Rs 3.249 million to the agriculture department in FY 2010-11. M/s Larr Sugar Mills, Sujawal and M/s Kiran Sugar Mills Rohri had also not paid penalty of Rs 3.249 million on late deposit of sugar cane development cess, it was revealed on Thursday. 

These disclosures are mentioned in "Audit report on the accounts of revenue receipts government of Sindh audit year 2011-12," prepared by Auditor General of Pakistan, a copy of which was obtained byBusiness Recorder. The report mentioned in Audit paras 2.4 "Short realisation of sugar cane development cess No Rs 7.475 million" that: as per Sindh Government's notification No 8 (142)/SO/(Ext.)/95-XXIII dated 20th October 2010, "sugar cane development cess @ 50 paisa per 40-kg on cane crushed during the financial year 2010-11, by each sugar mill in the province should have been realised." 

The Cane Commissioner Sindh short realised sugar cane development cess of Rs 7.475 million from M/s Ansari, Matli, M/s Larr, Sujawal and M/s Kiran, Rohri in FY 2010-11, the report revealed. "The recovery was not affected due to inefficient revenue collection of agriculture department. The short receipt of cess dues from sugar mills caused revenue loss to the government." 

The short realisation was pointed out to the department in August, October and December 2011 but no reply was received till finalisation of this report. The Departmental Accounts Committee (DAC) meeting was not convened by the concerned authorities despite request to the PAO, the report stated. 

The report added that: As per Rule 3(3) of sugar cane development cess rules 1964, "the non-depositing of sugar cane development cess into government treasury within 15 days of close of each fortnight ie 5th and 20th of each month is liable to be 100 percent penalised of equal amount of the sugar cane development cess not deposited into crushed season. "Sindh Cane Commissioner did not recover penalty of Rs 3.249 million on late deposit of sugar cane development cess from M/s Larr and M/s Kiran." 

The non-recovery of penalty impacted negatively on tax revenue of the government, it stated. The Departmental Accounts Committee (DAC) meeting was not convened by the department despite request to the PAO, the audit para concluded. Reliable sources told Business Recorder that the said three sugar mills are the properties of three high-profile political bigwigs belonging to major ruling party. 

When contacted, recently-posted Cane Commissioner Riaz Soomro told Business Recorder that he has no knowledge of the previous issues as he has joined this post only a couple of days ago. The Cane Commissioner hoped for implementation of the law saying that he would implement all Acts concerning the sugar industry in letter and spirit. 

Tuesday, 4 September 2012

East Africa: Give Agriculture Priority - Dr. Sezibera

Dar es Salaam — Banning the exportation of agricultural produce will not improve agriculture the EAC Secretary General has said.

Speaking during the Regional Private Sector CEO Forum in Dar es Salaam last week, Ambassador Richard Sezibera said that banning of food exportation and seed importation experienced last year by Kenya and Tanzania was not a solution to food insecurity in the region.

"As we build the community, there are challenges that need to be faced, " Sezibera said.

He said there was need for the region to improve the free movement of agricultural produce in order to bring benefits to small scale farmers in the region which will in turn lead to improving their economy.

He noted that despite the region having a conducive environment of growing wheat and sugar, there is lack of capacity to produce such raw materials in the region and this has made countries in the region to request for the importation of sugar due to low production in these countries.

The East African Business Council Chairman, Mr Felix Mosha, noted that there was need to look at both the national and East African dimensions when it comes to farming and selling of agricultural produce so that these do not affect the regional protocols thereby hurting farmers as well.

He said that there was need for the government to offer the farmers the same prices like those offered in the local market during droughts instead of imposing export bans because such restrictions reduce the morale of producing more agricultural produce to most small scale farmers in the region.

"The Tanzania Private Sector have been saying that if goods from Tanzania can be smuggled into Kenya territories then Tanzania should see it as an opportunity to exploit the market," Mosha said

"He noted that Tanzania is endowed with vast agricultural resources that include, arable land, abundance of water supply, and a wide road network and this can make the country produce more for the entire region.

"All we need is for the region to provide us with the zero rated taxes on food because food security is the other coin of national security" the EABC Chairman insisted.

Original Article Here

Thursday, 23 August 2012

Food Inflation Lures Phosphate Producers to Brazil


By James Wellstead
Brazil’s agricultural sector continues to animate the phosphate market. Rising incomes in the predominantly commodity-based economy have increased the quantity of food consumed by millions of Brazilians at the same time as the country is leading the world in production and exports of coffee, beef, sugar and poultry.
But Brazil’s economy has hit the skids of late, with the country’s GDP growth slowing to 1 percent in the first half of 2012, the lowest of all BRIC nations and a sharp fall from last year’s 2.7 percent and 2010′s 7.5 percent. Beyond its slow growth, food inflation rates are creeping higher and are reducing domestic consumption in a country where more than 26 percent of the population lives below the poverty line.
Phosphate producers believe they can be of help to Brazil as it seeks to expand its agricultural production while bringing more land under intensive cultivation.
Food inflation
Brazil’s statistical agency, IBGE, reported earlier this month that production in the country’s agro-industrial sector fell 3.9 percent in the first half of 2012 compared with the same period the year before.
Sugarcane and soybean crops have been most affected this year, with refined sugar and sugar-based ethanol production falling by 32.4 percent thus far, adding to the impact of global corn prices, which increased by as much as 15 percent in the second quarter.
The net effect, reported Carlos Hamilton, Brazil’s central bank director of economic policy, was that food prices rose by 0.88 percent in July alone.
Brasil Foods (NYSE:BRFS), one of the country’s largest food retailers and the world’s largest poultry exporter, saw revenues rise by 9 percent over last year due mainly to higher domestic pricing. The company’s CEO expects to raise prices by another 5 to 10 percent in order to account for rising animal feed prices.
This inflationary impact, coming through corn and grain prices, is particularly acute for citizens in emerging markets, who spend 25 to 50 percent of their income on food, compared to 7 to 10 percent US citizens spend.
Brazil’s solution to this challenge is to try to grow incomes while unleashing the country’s agricultural capacity. Brazil’s natural assets — 14 percent of the world’s fresh water and 11 percent of its arable land — have already played a large part in the country’s growth, and it currently stands behind only the US in corn and soybean production and exports globally.
Recently, corn production and exports have increased in the wake of drought in US corn markets, with significant corn exports flowing to the world’s largest corn producer, the US. Exports to that country are not expected to be sustained.
Land values have also increased steadily over the last year, with Brazilian farm operator SLC Agricola seeing an 18 percent increase in the value of its 220,000-hectare holdings, Agrimoney.com reported.
The combination of rising food costs, variable production growth and increasing land values continues to entice phosphate producers seeking to supply Brazil’s expected agri-business expansion.
Brazil’s phosphate expansion
Following recent months of crop and price volatility, Bert Frost, senior vice president of sales and market development at CF Industries, predicted that increased phosphate application will follow this fall.
“[W]e’re anticipating an increase in fertilizer, both nitrogen and phosphate in South America to one, achieve higher yields and two, due to higher acres planted,” Frost said earlier this month.
Both major and junior phosphate producers are gearing up for continued phosphate demand.
Vale (NYSE:VALE), Brazil’s largest mining company, increased its phosphate rock production by 8.5 percent this year, and has sought both domestic and foreign sources to supply Brazil’s growing phosphate demand.
The majority of this production output has come from overseas, specifically the company’s Peruvian Bayóvar project, which posted a 10 percent increase in rock phosphate production, topping 2 million tonnes in the second quarter.
Vale has also targeted 9.6 percent of its total US$21.4 billion planned budget for 2012 on both phosphate rock and potash in Brazil, targeting 8 million tonnes of phosphate rock production in 2012.
Eagle Star Minerals (TSXV:EGE) has also grown its presence in Brazil, reporting a $750,000 private placement earlier this month, which it plans to put toward developing its phosphate projects — Bomfim, Ruth and Samba.
Rio Verde Minerals Development (TSX:RVD) is also focused on developing Brazil’s internal phosphate reserves after acquiring the Fosfatar phosphate project from Fosfatar Mineração on September 12, 2011.
All three companies will likely benefit from this week’s announcement that Brazilian President Dilma Rousseff will earmark approximately US$66 billion for an infrastructure investment strategy aimed at developing roads, ports and rail infrastructure to connect the country with global markets.
Securities Disclosure: I, James Wellstead, hold no direct investment interest in any company or commodity mentioned in this article.
Original Article Here

Friday, 10 August 2012

Food prices soar globally, U.N. finds


The U.N. Food and Agriculture Organization reported the monthly food price index for July rose 6 percent in large part to weather-related issues.
The FAO reported lingering drought in the United States increased maize prices by 23 percent in July. The U.S. drought was the worst on record since the 1950s as temperatures reached record levels for most of the country.
Sugar prices increased by 12 percent because of unseasonable rains in Brazil, the largest sugar exporter, and grain prices rose 19 percent because of low production expectations from Russia.
Food prices had declined for the previous three months, the FAO said. For July, the monthly food price index was 6 percent higher than for June.
Kelly Wiesbrock, a manager at hedge fund Harvest Capital Strategies, said expectations for corn were exceptionally high for 2012.
"Then the month of June hit and into July, and it's just been a train wreck," she told Bloomberg News.
Record prices had pushed more than 40 million people in North Africa and the Middle East into extreme poverty.
The United Nations estimates more than 15 million people are facing food shortages and malnutrition due to a lingering drought. More than 200,000 children died of malnutrition last year and more than 1 million children are threatened.
Original Article Here

Monday, 6 August 2012

Sugar import quotas remain a secret


The Ministries of Industry and Trade (MOIT) and Agriculture and Rural Development (MARD) have agreed to the proposal to grant quotas to import sugar. However, the argument about the sugar import has not finished yet.
No one wins the verbal battle between food processors and sugar companies. However, the battle still played its important role: it has paved the way for the MOIT to grant the quotas to import 70,000 tons of sugar.

The proposal to allow enterprises to import 70,000 tons of sugar has been co-submitted by both the ministries.

According to MOIT, by July 15, 2012, the inventory volume at sugar refineries had reached 240,000 tons, or 54,000 tons lower than that of the same period of the last year. Therefore, if Vietnam does not import sugar, it may face the sugar shortage, especially RE sugar, especially in September and October, the pre-harvest months.

However, the problem is that the “ask-and-grant” mechanism still exists in granting quotas for sugar import. To date, the list of the companies which get the quotas for sugar import remain a secret.

Do Thanh Liem, Director of the Khanh Hoa Sugar Company, Deputy Chair of the Vietnam Sugar Cane and Sugar Association, said on Dau tu that MOIT has not made public the names of the companies to which it has granted quotas. Therefore, it is unclear which companies would import sugar, and if they would sell sugar imports on the domestic market, or they would import for re-export later for profit.

It happened that some companies asked for the permission to import sugar in big quantities, though their demand was very low. Therefore, in 2011, MOIT then took back the quota to import 850 tons of sugar from the International Food Joint Stock Company and Orana Vietnam joint venture.

Under the current regulations, the sugar products imported in accordance with the granted quotas would be imposed the import tariff of 15 percent, while non-quota sugar imports would be taxed 80-100 percent. As such, the turnover gap in the sugar imports may reach tens of billions of dong. This explains why food processing companies always scramble for the quotas to import sugar.

Thoi bao Kinh te Saigon has quoted Nguyen Hai, Secretary of the Vietnam Sugar Association as saying “that the association has proposed to apply the bidding mechanism to decide which companies would be able to get the right to import sugar.”

Hai said on the newspaper that instead of granting quotas to enterprises, MOIT would invite for bids for the consignments of sugar the government imports. The enterprises that accept to pay highest prices, would win the bids.

In fact, the above said mechanism has been proposed to the watchdog agencies several times. However, the answers given by MOIT are nearly the same: “the conditions in Vietnam still do not allow to apply the mechanism”.

However, Liem said that the bidding mechanism has been successfully applied in the Philippines for a long time, which both ensures the transparency and satisfies the sugar demand from businesses.

“The mechanism the Philippines is following is quite simple which can completely be applied in Vietnam,” Liem said, adding that the quota granting mechanism has become “out of date.”

Deputy Minister of MARD Diep Kinh Tan has advocated the idea that it’s necessary to set up a mechanism to ensure the transparency in sugar import.

Local newspapers have reported that Hoang Anh Gia Lai group of Doan Nguyen Duc, one of the richest Vietnamese businessmen has asked for the permission to import 100,000 tons of sugar from its sugar refinery in Laos. However, Duc has denied this.
Original Article Here

Friday, 20 July 2012

Sugar and coffee jump


Raw sugar futures on ICE settled at a three-month high in choppy dealings on Thursday, while coffee surged on spillover support from gains in agriculture commodities. Cocoa futures also moved higher. "The rise in soft commodities is primarily on the back of higher agricultural markets," said Sudakshina Unnikrishnan, a soft commodities analyst with Barclays Capital.

The Thomson Reuters-CRB index, a benchmark for global commodities, jumped 1.9 percent to a 2-1/2-month high at 304.85. Sugar's higher close followed an up and down session, with funds buying early. "The (raw sugar) market tried to go up this morning when we had the funds buying. Very fast we ran out of steam and then we just fell like a rock," said Alex Oliveira, Newedge USA analyst.

Oliveira noted that sugar turned negative as corn futures fell from their highs. Raw sugars later turned up again, to close at a three-month high on the coattails of the firm commodity complex. Benchmark October sugar futures on ICE gained 0.30 cent, or 1.3 percent, to close at 23.25 cents a lb, the highest settlement for the spot contract since April 13.

The sugar market was underpinned by the prospect that weak monsoon rains may reduce production in top consumer and No. 2 global producer India, dealers said. Rains in Australia have also slowed the flow of supplies from the world's third-largest raw sugar exporter. The sugar market got a boost from news on Wednesday that Copersucar, a leading sugar and ethanol trader in top producer Brazil, said rains forced 42 percent of its associate mills to stop crushing and it may turn to buying the sweetener.

White sugar futures on Liffe also soared in choppy dealings. The October contract jumped $11.60, or 1.9 percent, to end at $636.30 per tonne. Arabica coffee futures jumped on a combination of chart-based strength after the benchmark contract managed to close above its 100-day moving average at $1.7899 on Wednesday, and as the firm commodity complex provided support, dealers said.

Arabica coffee futures on ICE soared with September jumping 6.80 cents, or 3.7 percent, to settle at $1.8895 per lb. Robusta coffee futures on Liffe also rallied, with September settling up $81, or 3.8 percent, at $2,192 a tonne, the highest since May 31. The benchmark US cocoa futures contract climbed as it triggered buy stops above $2,220, then filled the technical gap between $2,250-$2,270, before consolidating slightly, dealers said. ICE September cocoa futures rose $26, or 1.2 percent, to settle at $2,230 a tonne. London September cocoa finished up 31 pounds, or 2.1 percent, at 1,532 pounds per tonne.



Saturday, 14 July 2012

Sugar Farmers Divert Water in Maharashtra


Vast swathes of Maharashtra are parched with thirst as powerful politicians divert water for their own purposes. The state's second biggest dam Ujani, in Union Agriculture Minister Sharad Pawar's Lok Sabha constituency Madha, has been providing water for the area since its inception in 1980. But of its 117 TMC (thousand million cubic metre) of water, 60 TMC is being illegally diverted to sugarcane fields, creating acute water shortage in hundreds of villages in eight taluks-Madha, Pandharpur, Mohol, Mangalvedha, Malshiras, North Solapur, South Solapur, Akkalkot-of Solapur district.

'India Today' has access to a confidential report prepared by officials at the Ujani dam in January this year which explains how the water was to be divided. According to the report, Ujani's water supply is reserved for crops like chilli, jowar, bajra, groundnut, maize, sunflower, tur, wheat, gram and vegetables. However, 51 per cent of its supply goes to six lakh hectares of sugarcane fields spread across three districts. These districts have as many as 50 sugar factories, most of them run on a cooperative basis under which farmers are the biggest shareholders and Congress and Nationalist Congress Party politicians have controlling shares.

Dam officials have repeatedly pointed out to the Maharashtra Water Resources Department about sugarcane fields owned by Rajendra Tambele, a close aide of Sharad Pawar, on more than 100 acres of the dam land at Hingangaon. These get a disproportionate share of water.

On May 29, Chief Minister Prithviraj Chavan admitted in his presentation before Planning Commission Deputy Chairman Montek Singh Ahluwalia that water-intensive cropping pattern (read sugarcane) is the reason behind the state's failure in achieving its irrigation targets. "Out of 358 taluks in the state, 148 are drought-prone," he said, while submitting the state's annual plan of Rs 55,000 crore for 2012-13.
Original Article Here

Monday, 25 June 2012

Cranberry industry wary of upcoming nutrition standards


By Larry Bivins

WASHINGTON – The federal government is expected to propose new nutrition standards soon that could leave a bitter taste in the mouths of cranberry growers from Massachusetts to Wisconsin.
To address childhood obesity in America, an effort spurred by first lady Michelle Obama's "Let's Move" initiative, the Department of Agriculture is finalizing guidelines for what can be sold in school vending machines, stores and a la carte cafeteria lines. Sugar is widely viewed as a target, and sweetened beverages like cranberry juice cocktail could be deemed unhealthy.
That would be unfortunate and unfair, cranberry industry officials say, because the tart, deep red fruit is loaded with nutrients and health benefits. But for consumers to avail themselves of those benefits, cranberries must be sweetened.
"Cranberries can be sweetened with anything," said Linda Prehn, a cranberry grower in Tomah, Wis., citing apple juice as an example. "But you can't eat 'em raw. They're tough to eat straight up."
Prehn, chairman of United Cranberry Growers Cooperative, a collective of 85 growers in Massachusetts, Oregon and Wisconsin in the U.S. and New Brunswick and Quebec in Canada, was among cranberry industry honchos attending the recent inaugural meeting of the Congressional Cranberry Caucus on Capitol Hill.
Prehn and others are hoping the bipartisan caucus led by Reps. Reid Ribble, R-Wis., and Bill Keating, D-Mass., and Sens. John Kerry, D-Mass., and Scott Brown, R-Mass., can help persuade agriculture officials to make an exception for cranberry products in its nutrition standards for added-sugar products.
"Given the beneficial and scientifically proven health properties of cranberries, we believe there is a need to establish clear standards that recognize cranberries as a part of a healthy diet," the lawmakers wrote in a letter to Agriculture Secretary Tom Vilsack. "We ask that you consider including a variety of cranberry juice and dried cranberry products in USDA's food nutrition program so that children, seniors and adults served by these programs are not denied benefits unique to cranberries."
The lawmakers sent a similar letter to the first lady, pointing out cranberries "contribute to whole body health, particularly urinary tract health and the potential to fight cancer and other diseases."
At stake is exclusion from an estimated $2.3 billion school vending machine business and an image that could have a negative impact on the marketing of cranberry products worldwide, particularly cranberry juice cocktail, industry officials say.
"If we're put into a category that says these types of products are unhealthy, we think it would be inaccurate and unfair," said Tom Lochner, executive director of the Wisconsin State Cranberry Growers Association. "Lumping us in with other beverages that don't have the health benefits associated with them that cranberries do is definitely going to affect our ability to sell cranberry products."
Randy Papadellis, president and CEO of Ocean Spray Cranberries Inc., a cooperative owned by more than 700 cranberry growers in Massachusetts, New Jersey, Oregon, Washington, Wisconsin, British Columbia and other parts of Canada and 35 grapefruit growers in Florida, said the new nutrition standards could damage the industry and the Ocean Spray brand.
"We obviously would want to be on the list of things USDA and other agencies buy," Papadellis said. "Our concern is more the signal a standard that says cranberries are unhealthy sends out to other constituencies. Many people take their cue from USDA in terms of what is healthy."
Ocean Spray describes itself as the nation's leading producer of canned and bottled juices and juice drinks, with $2.1 billion in sales last year and 2,000 employees worldwide.
The cranberry industry says research indicates the fruit helps prevent urinary tract infections and reduces harmful bacteria in the urethra, bladder and kidneys.
Connie Diekman, director of university nutrition at Washington University in St. Louis and a former president of the American Dietetic Association, is a cranberry booster.
"Cranberries contain more antioxidants than almost any other fruit out there," Diekman said. "That's why it has such a tart taste. It is a source of vitamin C. Fiber is great in the cranberry."
Yet not all nutritional experts are sold on cranberries as a health food, and some supporters of lowering the sugar intake of children and adults say the need to address the nation's obesity crisis may outweigh the concerns of those in the cranberry industry.
"There's some evidence to show that cranberry juice can prevent urinary tract infections, but that doesn't mean everyone should be drinking cranberry juice every day," said Margo Wootan, director of nutrition policy for the Center for Science in the Public Interest. "Only 3 percent of kids a year have urinary tract infections, compared to one-third who are overweight. Urinary tract infection is not a booming epidemic. Obesity is."
The USDA already has established new standards for what can be sold in school cafeterias as part of the federal school lunch program and is now preparing criteria for school vending machines.
If the department follows its earlier guidelines, only 100 percent juice beverages would be allowed in vending machines and school stores, Wootan said.
"There's no evidence of any particular public health problem to suggest that cranberry drinks should get a special exemption," Wootan said. "It's curious that the cranberry industry is pressing Congress for nutrient standards that are weaker than what Coke and Pepsi have already agreed to."
Placing cranberry juice in the same category with sodas and other sugary drinks is what the cranberry industry wants to avoid.
"The current debate over added sugar and the effort to help Americans consume less is commendable, but our point is you have to make a distinction between nutrient-dense products and other products that are empty calories," said Terry Humfeld, executive director of the Cranberry Institute in Carver, Mass.
Original article here

Saturday, 16 June 2012

EU Plan to End Sugar Limits Pits France Against the U.K.


By Isis Almeida and Rudy Ruitenberg 
European Union proposals to change rules on sugar output and usage will pit France, the biggest food producer in the bloc, against the U.K. next week when members of the European Parliament meet in Brussels.
Sugar quotas that limit production should expire Sept. 30, 2015, EU Agriculture Commissioner Dacian Ciolos proposed in October. The European Parliament will consider on June 18 and June 19 whether to end that policy that caused sugar supply shortages in the bloc for the past two years.
Sugar beet growers backed by France oppose the plan, saying they need at least until 2020 to become more competitive, while the U.K. says the proposal will allow farmers to grow their business. While international prices have fallen 20 percent in London over the past year, white sugar in the EU averaged 711 euros ($898) a metric ton in March, the highest since at least July 2006, commission data as of May 3 show. An EU sugar users’ group backed by Kraft Foods Inc. opposes France’s plan.
“European farmers are going to have huge opportunities to feed an increasingly hungry world,” the U.K. Department of Environment, Food and Rural Affairs wrote in an e-mailed comment yesterday. “Scrapping counter-productive sugar beet quotas will up production, stop shortages and bring down prices.”
The European Parliament gets the final say on farm policy for the first time, Jan Jakubov, agriculture spokesman, said by phone from Brussels yesterday. Policy makers for France and the U.K. will attend the meeting next week when Parliament’s rapporteurs will present their view on the reforms for the first time, he said.
France’s View
“I’ll defend, in France’s name, the position that consists of maintaining the current regulation until 2020 to allow this industry to adjust, and at the same time give it the outlook on the future that it seeks,” French Agriculture Minister Stephane Le Foll told sugar beet growers at an industry meeting in Reims on June 12. “I also know of the need to have a little bit more time that’s required so you can adjust.”
The end of sugar quotas would mean that French production would have to compete with Thailand, the world’s second-biggest exporter, and India, the second largest producer. Brazil is the top exporter and producer and its production costs have been climbing because of labor costs and strengthening value of the real currency since 2000.
Sugar Users
The Committee of European Sugar Users, representing companies including Kraft Food Inc. (KTF) (KTF) and Nestle SA, is opposed to France’s plan, the Brussels-based group said in a statement e- mailed today.
“EU sugar users have seen an increase of 40 percent in sugar prices within the last year, leading to significant financial instability for many food manufacturers across Europe,” said Robert Guichard, president of the committee and procurement manager of sweeteners for Kraft Foods in Paris.
“Postponing again the debate to 2018 is not going to help prepare EU farmers or the food sectors to adapt to future market challenges,” he said. The committee “demands that the commission proposal of abolishing quotas in 2015 is respected.”
The EU spent four years since 2006 shrinking its sugar-beet industry to comply with a ruling by the World Trade Organization limiting its exports.
Net Importer
After the reform, the bloc became a net importer and dependent on supplies from a group of least developed countries and some nations of the African, Caribbean and Pacific group of countries that have preferential access to the EU market.
“The problem facing the EU has been the limited availability of preferential imports from least developed countries and ACP,” LMC International Ltd. and London-based Overseas Development Institute said in a report at the U.K. Parliament’s inquiry into the EU sugar regime on June 13.
LMC International is an Oxford, England-based agriculture research company and Overseas Development Institute focuses on ways to reduce poverty in developing countries. Shortages of sugar in Europe are set to continue through 2015, they said in the report to the U.K. Parliament.
The removal of sugar quotas is likely to reduce the EU sugar price by 100 euros a ton, LMC International and the Overseas Development Institute said. White, or refined, sugar on NYSE Liffe settled yesterday at $566.70 a ton.
The elimination of sugar production quotas “must only be done alongside opening up markets for tropical cane sugar, which is crucial for British refiners, food manufacturers, and consumers,” Defra said.
The EU has not proposed changing import duties. The levy is 339 euros a ton on imports of raw sugar and 419 euros a ton for white sugar.
To contact the reporter on this story: Isis Almeida in London at Ialmeida3@bloomberg.net; Rudy Ruitenberg in Paris at rruitenberg@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at Ccarpenter2@bloomberg.net.
Original Article Here

Wednesday, 6 June 2012

From kitchen to stand


Photos by Samuel Hoffman | The Journal Gazette
Mary Rice sells homemade items at places such as the Historic 
West Main Street Farmers Market.

Law exemption lets home cooks sell some goods
Rosa Salter Rodriguez | The Journal Gazette
Rice credits an exemption in state food laws
with allowing her to set up a business,
which includes selling chocolate crinkle cookies.
Abby Hardy has loved being part of a family farm business her whole life, and she has also loved baking for about as long as she can remember.
Now she’s thinking about combining both – by selling homemade cookies at her family farm’s roadside stand on Knoll Road in southwest Fort Wayne.
“I’d like to make frosted sugar cookies in the shape of ears of corn,” the 27-year-old says, adding that the stand’s sweet corn is one of its most popular summertime offerings.
So, last month Hardy attended a Web-based seminar outlining a little-known exemption in state food laws. Since 2009, the exemption has allowed Hoosiers to prepare a limited array of food products in a home kitchen and sell them at farmers markets and roadside stands.
Samuel Hoffman |The Journal Gazette
Kalamata olive bread and berry cobblers 
are some of the baked goods 
Mary Rice makes and sells.
The event, “Cooking Up a Food Business in the Home Kitchen: Opportunities and Challenges of Starting or Growing a Home-Based Food Vendor Enterprise,” was hosted by the Allen County branch of the Purdue Extension Service, which has had similar programs around the state.
Roy Ballard, a Purdue extension educator in Hancock County familiar with the seminar, says the exemption was passed as a way to spur entrepreneurialism.
“I think people have been very reluctant until this law to produce foods for sale in their home. This does open it up for a lot of people to get their toe in the door for food production,” he says.
The exemption means that, unlike other food-selling or producing establishments, home-based food vendors don’t have to be licensed, permitted or registered nor have their kitchens routinely inspected by health officials.
While the lack of red tape may be appealing, “There’s a lot of limitations on what you can and cannot do,” says Steve Engelking, small farm coordinator and extension educator for Purdue’s LaGrange County office, which hosted a seminar in May.
Home-based vendors can sell only “non-potentially hazardous food products,” which must be labeled with their ingredients and that the products were produced in an uninspected facility, he said.
Producers also must test to make sure their food meets parameters for water content and pH, a measure of acidity or alkalinity, and kitchens must use proper sanitation, the LaGrange seminar attendees were told.
Animal products, non-baked dairy- or egg-containing foods, cut produce, “acidified foods” such as salsas and low-acid canned goods, such as canned green beans, are not allowed.
Jams, jellies and preserves can be made and sold under the exemption, but fruit butters and low- or no-sugar fruit spreads are out. Sauerkraut is okay as a fermented food.
Vendors can’t sell their foods at retail establishments, such as grocery stores or restaurants, or at festivals.They also can’t prepare non-hazardous foods and other foods that require more regulation in the same kitchen. “It’s one or the other,” Engelking says.
Still, the rules leave a lot room for home cooks, according to people familiar with the exemption.
Other products that can be sold include breads, cakes, cookies and dessert bars, nuts, honey, candies and confections.
Mary Rice of Fort Wayne says the exemption helped her set up a business baking bread, pies with locally grown fruit and her grandmother’s chocolate crinkle cookies.
“They’re a hot commodity,” says the 52-year-old woman, who sells at the Historic West Main Street Farmers Market on Fridays.
“I do fresh vegetables when they’re in season, and I do baking in between, and it has improved my business,” she says. “At the time when I started it, I was unemployed so it brought in more money to help pay the bills, and last year I did make a nice profit off of it.”
Engelking says local officials are somewhat split on the effect of the exemption. Some see it as a boon to the county’s many Amish farm families, while others believe all food producers should follow stricter regulations because of the large number of tourists who visit the county and its food-oriented attractions.
LaGrange’s health officials try to nudge home food producers into becoming regulated food establishments, he says.
Engelking says that many people who buy from roadside stands or at farmers markets may not know that some products come from uninspected kitchens and urges caution on the part of buyers and producers.
“My advice to buyers is look for labels. … My advice to (potential vendors) is get to know the local health (department enforcement) people. Get them involved early on, and let them know you’re interested in learning,” he says.
Gonzalee Martin, Allen County extension educator for agriculture and natural resources, says it’s in vendors’ best interests to care about food safety to protect their own and their markets’ reputations. He expects interest in home-vendor exemptions will grow as more farmers markets spring up.
About a dozen people attended Allen County’s seminar, and more than 175 signed up statewide, although some were not current or potential food producers, he said.
After hearing about the food restrictions, Joan Sumter of LaGrange decided against becoming a home-based vendor. Her idea was to sell slow cooker meals at lunch to local factory workers, but she found that wouldn’t be allowed under the exemption.
“I’ve been thinking about it for a long-time, but I think it’s not for me,” she said.
But Hardy says her idea is still on the front burner.
She says she may start small by selling a few dozen cookies only on the weekends after the stand opens the second week in July.
“I have to sanitize everything, so it’s going to be a process to get started,” she says. “It was a really useful seminar. And I think we’re going to give it a try.”
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