Fonterra invests $100m in UHT milk plant

Multi-national dairy company, Fonterra, will invest more than $100m in a new UHT milk processing plant at its Waitoa site in New Zealand's Waikato region.

Fonterra chief executive, Theo Spierings, said the new plant will allow the company to meet Asia's growing demand for UHT products.

"The new plant will enable us to increase our UHT production by 100 percent over the next few years. The plant will include five new UHT lines that will produce a range of products including UHT white milk and UHT cream for the foodservice sector," he said.

The new plant will see the creation of 50 new jobs and will provide new opportunities for Fonterra farmers in the North Island.

"Milk supply in New Zealand is seasonal because it follows the grass growth curve. However UHT production requires year-round milk supply so we will be talking to our farmers about the opportunity for more of them to take up winter milk contracts. This will enable them to take advantage of the milk price premium that these contracts include," Spierings said.

"A recent survey of our farmers indicated that a good proportion of them in the Upper North Island would be keen to take up winter milk contracts."

 

Food contamination – a weighty issue

Looking out for certain features of weighing equipment can help food manufacturers maximise their return on investment, and minimise the risk of contamination. Isaac Leung writes.

Food contamination can occur via any number of vectors, so constant vigilance is required during every step of the food supply chain.

One oft-overlooked source of food contamination is weighing equipment, a fundamental part of portioning in food processing.

Current international standards which govern hygiene in relation to weighing equipment in the food industry include the European Hygienic Engineering & Design Group (EHEDG) guidelines, BRC Global Food Standard, SQF program, ISO 22000, and the NSF 3-A/ANSI 14159-1 standard.

Locally, the Australia New Zealand Food Standards Code relating to Food Premises and Equipment stipulates that equipment needs to be designed, constructed, located and installed to ensure there is no likelihood they will cause food contamination, and can be easily and effectively cleaned.

In the case of food contact surfaces, for example, where a scale has foodstuff set on it during the portioning process, the rules are even stricter: in addition to the above, they need to be able to be sanitised, and be unable to absorb grease, food particles and water, and made of material which will not contaminate food.

Similar requirements can be found in the policies of food retailers. For example, Woolworths’ Quality Assurance Standard pertaining to Manufactured Foods require well-documented procedures for the microbiological and chemical cleaning of processing and handling equipment. These cleaning procedures are backed up by visual inspection, residue testing, and quarterly microbiological swabbing of surfaces and equipment.

Woolworths also requires planned preventative maintenance programs which include clean in place (CIP) operations utilising documented chemicals, hot water and energy like scrubbing or high pressure hosing.

According to Phil Hyland, project manager at Mettler Toledo, the last three to four years have seen a tightening of hygiene controls as a number of high-profile food contamination cases have emerged globally.

Weighing equipment manufacturers have kept an eye on these stringent demands, and designed their equipment to be correspondingly easier to clean, with less food traps and areas which could become sources of cross-contamination.

Materially-speaking
By virtue of their function, weighing equipment consists of a mix of direct food contact surfaces and non-contact surfaces.

On a scale, non-product contact surfaces can include the terminal, housing, and feet, but these can cause indirect contamination. Depending on the type of food being weighed, the feet of scales can also be in direct food contact.

Contact surfaces are defined as surfaces in direct contact with food residue, or where food residue can drip, drain, diffuse or be drawn. The scale platform is the most obvious direct food contact surface.

These surfaces need to be smooth, non-porous, non-absorbent, impervious; free of cracks, crevices, pitting, flaking, and chipping; corrosion-resistant; durable and maintenance-free; non-toxic, non-contaminant; cleanable and non-reactive.

The standard material for contact surfaces is stainless steel, which is corrosion-resistant and durable. 316 steel is preferred, while 304 stainless steel is also adequate.

To attain the requisite hygiene ratings, the surface needs to be polished to a smoothness of 0.8 micron or better. Rougher surfaces prevent effective cleaning as microorganisms become trapped in the surface, becoming a bacteria trap.

Of course, cleanability can also be dependent on the finishing technology, which can affect the surface topology.

Where other materials are used, plastics should be food grade, and smooth ceramics is also a common material.

According to Hyland, the common approach to use silicon-based potting material to protect sensitive parts of weighing equipment, such as the load cell, is insufficient for food-grade equipment. Certain cleaning products can shorten the life of silicon potting materials. A better approach is to protect the load cell with a welded, IP69 rated seal.

Designed for cleaning
The ability for equipment to handle heavy washdowns is one of the things which differentiates food-grade industrial weighing systems from, say, a kitchen scale. But Hyland says customers who only focus on the washdown capabilities of equipment may be overlooking other important factors.

“They often haven’t looked at the ability to clean the equipment properly, such as ensuring there are no food traps,” Hyland explained. “The converse applies: you could have a machine which is open and able to be washed down but the equipment eventually suffers from the cleaning.”

“We’re looking for something that can be cleaned to a satisfactory standard and yet be able to withstand that process.”

Equipment which is poorly designed may require more severe and prolonged cleaning. Aggressive chemicals and longer clean/decontamination cycles increase maintenance cost and downtime, and in the long run, can reduce the life of the product.

To avoid food traps, equipment should not have sharp corners and crevices, and mated surfaces should be continuous and substantially flush. Construction should allow easy disassemble for cleaning and inspection.

Internal angles should be rounded to standards-specified radii. Most standards specify the avoidance of sharp corners, less than 90 degrees.

Particular features which allow for easy cleaning include full stainless steel construction, smooth surfaces, continuously welded and completely closed columns with no disturbing cables, and ingress protection of IP68 or IP69K.

“IP69K sealing gives our food industry equipment very good protection against hot, high-pressure hosing,” Hyland said. “When you are in a meat room or a food processing area, the temperature often changes. If a freezer comes on, for example, you can have a large change in air temperature.”

To combat condensation within equipment due to temperature changes, the machines should be well-sealed, and properly vented.

“Food equipment in high-condensation areas will have Gore-Tex vents, which allow a balance of air pressure, so it doesn’t try to suck in moist air, but also does not allow moisture in through the vent,” Hyland explained.

Holistic approach
While the design of equipment is an important aspect of food safety, food safety auditors say many manufacturers often spend millions of dollars on equipment, only to find themselves out of step with their core customers’ requirements.

Standards like the Woolworths Quality Assurance Standards and the Coles Housebrand Supplier Program specify a comprehensive set of requirements, which relate to factors beyond equipment design like equipment placement, calibration, cleaning, interfaces with other equipment, and data retrieval and analysis.

By having a good understanding of all aspects of these requirements, in addition to equipment design, food manufacturers can minimise the risk of contamination, and ensure they are compliant with relevant standards.

 

The importance of traceability in your supply chain

Traceability is now taking centre stage as a vital component of an organisation’s supply chain process.

In September 2012, Food Standards Australia New Zealand (FSANZ) provided updated information for Australian food businesses regarding their requirements for food product traceability and product recall obligations in the supply chain process. It is important that all food and beverage suppliers understand their obligations in these two critical areas.

According to FSANZ, traceability in the Australian food sector should enable businesses to identify the source of all inputs such as raw materials, additives, other ingredients and packaging on the basis of one step forward and one step back at any point in the supply chain.

Traceability enables food businesses to target the product(s) involved in a food safety problem, thereby minimising disruption to trade and reducing potential public health risks.

FSANZ stated that an effective product traceability system will not only help isolate and prevent contaminated products reaching consumers in the event of a product recall, it will also help Australian food businesses protect their brands. FSANZ also requires food businesses to be able to provide information about the food it has on its premises and where it came from. This important information must be produced on request from an authorised officer of FSANZ.

As traceability professionals, GS1 Australia welcomed the FSANZ announcement and its recognition about the importance of traceability, particularly in the event of a product recall.

Marcel Sieira, GS1 Australia’s general manager, business development, said an organisation’s requirement to track and trace a raw material, ingredient or packaging material through all stages of its production, processing and distribution to the end consumer as a fully packaged item is an often undervalued and unrecognised ability within an organisation.

“The increasing demands for food product safety for consumers, major supermarkets and regulatory authorities can only help Australian food businesses focus on the need for an improved ability to track and trace products up and down their supply chains,” he said.  

Traceability is an important part of an organisation’s product recall management plan, said Steve Hather, managing director of the RQA Product Risk Institute.

“Where we see companies struggle with recalls is often in those first critical stages of investigating incidents and making the decision to recall,” he said.

“Not having effective traceability processes and people trained in using them can often lead to delays in actioning a product recall. This is one of the leading causes of incidents escalating into a crisis.

”Roughly one-third of the total cost of a recall is in business interruption. Companies should have effective business continuity programs in place to minimise disruption and get back into business as soon as possible after a recall or other disruptive events.

“Being out of the market for an extended period of time can lead to loss of shelf space for a period of time, or worse – loss of key customers. The ability for a company to successfully track and trace their products through their supply chain and retrieve them from the marketplace is a key component in the decision by the relevant regulatory authorities to finally close out an organisation’s product recall.”

This is why GS1 Australia includes traceability as a key component of the “Effective Product Recall Management Workshops” held jointly with RQA Product Risk Institute.

As well as examining risk management, incident identification, escalation, the product recall management plan and business communications, the workshops provide training on GS1 Recallnet, which eases traceability and the process of delivering information to trading partners and regulatory authorities.

GS1 Recallnet is GS1 Australia’s secure web-based portal for the management of recall and withdrawal notifications. Based on global GS1 standards and best practices, GS1 Recallnet simplifies and automates the exchange of information between suppliers, distributors and retailers as well as government agencies such as FSANZ and the Australian Competition and Consumer Commission (ACCC). 

By increasing the speed and accuracy of recall and withdrawal notifications, GS1 Recallnet significantly decreases business and consumer risk, reduces costs, protects brands and ultimately, helps improve food safety in Australia.

The Effective Recall Management Workshops (GS1/RQA workshops) for 2013 will take place as follows:

• Wednesday 6th March 2013 in Melbourne
• Thursday 7th March 2013 in Sydney

 

Dairy farmers’ new joint venture to churn out organic butter

Organic Dairy Farmers of Australia has teamed up with the home delivery food franchise, Aussie Farmers Direct, in a joint venture which will see the production of certified organic butter from a new manufacturing facility.

The $1.2m venture will include raw material handling, equipment and butter making machinery and will see the creation of a new butter processing facility, as part of an upgrade to the Aussie Farmers Dairy in Victoria's Camperdown.

Two different types of butter will be churned out: Aussie Farmers will convert its cream into Aussie Farmers branded butter packs, and a certified organic butter will also be produced using organic milk supplied by the 22 dairy farmers that make up the Organic Dairy Farmers of Australia. The latter will be sold under the Organic Dairy Farmers of Australia label and also under its second brand, True Organic.

Butter production is expected to kick off by the end of June 2013, if not before, and in its full first year should deliver between one- and two-million packs of butter.

Peter Skene, CEO, Aussie Farmers Dairy, said "We are incredibly proud to be partnering with Organic Dairy Farmers of Australia – they’re a very special group of organic dairy farmers and we appreciate the quality of supply and the credibility and expertise they bring to this joint venture.

"We believe our joint entry into the Australian butter market will not only benefit more local Aussie dairy farmers by providing a greater choice of buyers and volume of demand for their milk and cream, but will also help to support and strengthen the creation of additional jobs for the local community and give consumers the choice of a 100 percent Australian owned and produced butter range."

This is Organic Dairy Farmers of Australia's second direct investment in manufacturing in the past six months, following its joint venture with high-end French cheese maker, L’Artisan Cheese.

The joint venture will be music to the ears of dairy farmers across the country, who have struggled with cost cutting by the supermarket duopoly.

And it's not just Australian producers who are unhappy. Earlier this week angry dairy farmers in Brussels sprayed riot police and parliament structures with a fire hose full of milk, protesting agains unfair pricing systems. Read more here

 

Heinz suffers profit drop after relocation

Heinz Watties has reported a five per cent drop in net profit for the year to April 29, with significant costs centred around the relocation of sauce and beetroot processing back to New Zealand.

Watties announced in mid-2011 that the processing of some sauces and beetroot would move from Australia to Hastings and Hawke’s Bay.  The Girgarre Heinz tomato processing facility’s closure at the beginning of the year was reported in Food magazine and elsewhere.

Heinz Watties has spent $7.5 million plus upgrading its beetroot facilities since mid-last year, reports Fairfax’s Business Day, eating into profit results.

Watties was acquired by global tinned food giant Heinz two decades ago. It exports 60 per cent of what it manufactures.