< Previous10 Food & Drink Internationalwww.fdiforum.netIMPORT AND EXPORTNo nation was immune to the stiflingeconomic recession of 2008. Such was thesetback that even now, some seven yearslater, recovery is still a prolonged and fraughtupturn. The return to economic stability hasprovided opportunities for some countries to re-establish themselves in the global tradingenvironment. Vietnam’s economy, unlike Thailand,is gaining momentum following the austerity of thecrunch. As evidenced by the figures of the third quarter,Vietnam’s economic growth is spearheaded bystrong manufacturing, particular in the foreign-invested sector. This investment has boosted thecountry’s exports and continues to drive growth inthis area. The Ministry of Planning and Investmenthas revealed that the disbursement of foreign directinvestment in the first nine months of 2015 isexpected to total around $9.65 billion, representingPHOTO: XUANHUONGHO / SHUTTERSTOCK.COMLife inexportsAlthough Vietnam is one of the fastest growingeconomies in its region, it’s an economy that isdependent on exports. 10-12_Layout 1 19/10/2015 11:41 Page 1Food & Drink International 11www.fdiforum.netIMPORT AND EXPORTan 8.4 increase for the same period lastyear. The Asian Development Bank hasforecast a continued modest inflation forthe remainder of this year at 2 per cent,with 4 per cent expected for next year. It’ll come as no surprise that China hasremained Vietnam’s biggest trade partnerfrom January to September, with the traderevenue totalling $49.3 billion. During thesame period, Vietnam is estimated to haveexported somewhere in the region of$12.5 billion worth of commodities toChina, which is an increase of 12.5 percent year-on-year. This is serves todemonstrate a healthy marketplace and acountry comfortable with its trade status.When it comes to the food sector,agriculture is the driving force ofVietnam’s stability. Innovation in agriculture has helpedVietnam become a truly global player asan exporter. Rising from a poor countrywhich had to import 500,000 to onemillion tonnes to rice per annum, tobecoming the world’s third largest riceexporter by 1989 is an impressive feat.Today, the nation is recognised as a toprice exporter. Indonesia, for example,wanted to import 1.5 million tonnes ofrice from Vietnam and Thailand by nextJanuary due to the effect of the El Ninoweather phenomenon cutting domesticsupply. This has since been described byofficials as just a contingency plan, but itdoes hint towards the nation’s exportreliability. But Vietnam’s exports go beyond rice.Cashew nuts, to name another, retail inthe region of $19.99 per pound in NewYork City. It’s telling that, per kilo, thenuts retail $44 in the US, while Vietnamsells them for between $9 - $10. Thistranslates, simply, as a small profit forVietnamese farmers and businesses, whilethe finished product-makers anddistributers reap the other three quarters. Luong Ngoc Trung, of the SouthernHorticultural Research Institute (Sofri),claims that Vietnamese fruits arefrequently exported under foreign brands.He said: “The US is a difficult to pleasemarket. Though it accepts high prices, italways sets very strict requirements onproduct safety and food hygiene.Therefore, the exporters that providefresh, safe fruits quickly have moreopportunities to do business with the US.” To curtail this problem, exports are firstBirmingham chosen for AmazonFresh’s inaugural UK launch Birmingham has been picked as the proving ground for the UKlaunch of Amazon Fresh food delivery business.The anticipated launch will enable Amazon Prime Now customersto order chilled and frozen food products, alongside the company’stypical range of drinks, books, games and DVDs et al. This news follows the company’s recent announcement that itwould establish and open and new fulfilment centre in Dunstable,Bedfordshire in October, alongside plans to open a second centre inDoncaster later this year. So far this year, the company has created700 permanent roles throughout its UK-based fulfilment centres,representing an increase of 3,000 since 2011.Amazon’s Vice President of UK FC Operations John Tagawa,commented: “We are excited to have created 700 great jobswith competitive wages and comprehensive benefits startingon day one of this year already, on top of the thousandswe created in the past five years. Amazon has adedicated and enthusiastic workforce whoplay a crucial role in delivering a firstrate level for our customers.”12 Á10-12_Layout 1 19/10/2015 11:42 Page 212 Food & Drink Internationalwww.fdiforum.netIMPORT AND EXPORTsent to China, where they can then bedistributed more quickly to the US.Vietnamese exporters tend to hesitatebetween shipping exports by air or sea.The Chinese, on the other hand, use air.Nguyen Minh, who distributes fruit tohotels in San Francisco, commented:“They [China] have many direct airroutes, which allow fruit exporters tocarry fruits to export markets atreasonable costs. Though it is more costlyto carry fruits by air, it will not beunbearable for Chinese enterprises.” Exporting to the US does put Vietnamin competition with others, particularlyMexico and Thailand. Vietnam does havethe benefit of being able to export thetropical fruit rambutan directly to the USas it can make off-season products.Typically, exporters will only export fruitswhich have a high output in Vietnam,rather than trying to develop competitiveproducts. There is a certainly ample roomfor growth, but the relationship betweenVietnam and the US is a healthy one.According to Sofri, US imports fromVietnam accounted for $10.92 billionworth of fruits in 2011 alone. Interestingly, both the US and Vietnamare in agreement in wanting the SoutheastAsian nation to be less reliant on China.Subsequently, Vietnam is very likely to bethe biggest winner of the Trans-PacificPartnership. In a decade’s time, thecountry’s gross domestic product will beboosted 11 per cent, or $36 billion infinancial terms, as a direct result of theworld’s largest trade pact. Exports, bothagricultural and apparel, are predicted tosoar during this same period, ascompanies move their factories toVietnam. Vietnam has been described asaggressively pursuing economic partnersto balance its relationship with China. Be that as it may, rice demand fromVietnam’s traditional markets isdemonstrating signs of recovery for thenext six months. Speaking at an onlineconference held by the Ministry ofIndustry and Trade in early October, ViceChairman of the Vietnam FoodAssociation (VFA) Huynh Minh Hue,stated that Vietnam has won a slew ofbids including the winning bid to supply450,000 tonnes of rice to the Philippines.He further added that these contracts willhelp the county’s rice export to grow moresturdily from the fourth quarter of 2015 tothe first quarter of next year. Despite therise in exports, it will put pressure ofsuppliers to keep up with demand fortrade as well as for domestic consumption.However, the ministry will becollaborating with the relevant agencies toreach the Government’s goal of exportingrice whilst also ensuring an income andbusiness profits for farmers. The forecast for the immediate future islooking positive as Vietnam continues toalign itself as a reliable and importantglobal exporter. Since its economyfunctions on exports, that can only beproof that it’s an economy that’s in forsteady growth. As prices of Indian coffee rises,exporters are turning toimportsAs the prise of Indian green coffee – of both varieties,Arabica and Robusta – continue to rise, instant coffeeexporters are turning to imported raw coffee for theirshipments. The fall in coffee prices and thecurrent price of raw coffee in India,currently about 10 per cent higherthan global prices, arefurther driving this. This isdespite the weakeningrupee pushing exports. Over the nine and a halfmonths to mid-September, the totalexports from India increased slightly to 236,779 tonnes year on year. Instant coffee re-exports,meanwhile, rose 22 per cent to 46,127 tonnes for the same period. CCL Products, being the country’s foremost instant coffee exporter, is now sourcing its coffeefrom African countries as well as Brazil, Columbia, Vietnam, Mexico, Columbia and Peru. ChallaSrishant, Managing Director at CCL Products, believes that instant coffee is winning more fans ina global context due to its cheaper cost and more convenient preparation than other varieties. Healso notes that the quality has improved in recent years. PHOTO: XUANHUONGHO / SHUTTERSTOCK.COMPHOTO: SHUTTERSTOCK.COM/M. UNAL OZMEN10-12_Layout 1 19/10/2015 11:42 Page 3Food & Drink International 13www.fdiforum.netTRANSPORT AND LOGISTICSTransport remains one of the mostcostly and complicated parts ofthe supply chain for many in thefood and drink industry, and is often seenas the go-to location for cutting costs,improving efficiency – or limitingenvironmental waste. Over the years however the industryhas been squeezed so much, not only bycompanies looking to cut costs – but alsoever-increasing costs of fuel and taxrelated to it. While more recent cuts inthe cost of oil have had a beneficial effecton the industry, suppliers were quicklyexpected to pass those savings on to theircustomers. And yet the demand for logistics andtransport is only increasing, incorrespondence to the increased demandfor food products to be delivered ever-closer to our doors, and fresher than ever.One of the big questions faced by manymanufacturers in this situation – one ofneeding to transport perishable goodsmore often to meet freshness quotas, iswhether they should seek to increase theirtransport fleet – and all the costsassociated with it. Or whether they shouldlook to invest in more facilities closer tothe destination, usually in the form ofwarehouse or storage space.While the latter certainly sounds likethe most efficient long-term option, it isby far the more costly one – which is adirect result of the supply and demand forhigh quality warehouse space at this time.Simply put, there is not enough Grade Awarehouse space to go around, and whencompanies are dealing with largequantities of perishable food goods thatneed to be kept at a regulated temperature– there really is a necessity for thewarehouse space to be of the highestquality. As the available space decreases,chances are the cost of rental willincrease. And this only gets worse whenwe consider that consumer demand forfresher and more immediate goods is notlikely to slow in coming years. In fact,with it being predicted that by 2050 thepopulation of the world will top ninebillion, with over 65% of that living inurban areas… well, the logisticalnightmare is expected to get worse. The other option then, is to considerexpanding transport fleets toaccommodate for the increased demands,with more goods on the road at any giventime to keep product in the retail storesfresh. While this will certainly avoid theissue of limited warehouse space, thelong-term costs of such an arrangementmay become untenable for manymanufacturers. Expanding a fleet not onlyincreases fuel and vehicle related costs –but also recruitment costs for drivers,14 ÁPHOTO: SHUTTERSTOCK.COM/TTSTUDIORoad tosuccess Road tosuccess The supply chain may have strugglesahead, as they try to cope with notonly increased costs – but furtherdemands on environmental impact. 13-16_Layout 1 19/10/2015 11:43 Page 114 Food & Drink Internationalwww.fdiforum.netTRANSPORT AND LOGISTICSwages and associated HR andadministration costs. There is alsothe issue of environmental impactand carbon waste created by a fleet.Because the only issue that canmatch consumer’s demands forfresher food – is that food and drinkmanufacturers should be doing allthey can to reduce the impact on theenvironment, not contribute more toit. Many companies are seeking tocombat the issue through a combinedapproach, both of improving theefficiency of their existing transportfleets – while also better utilisingexisting warehouse space. Intermodaltransport is a popular method utilisedpredominantly in the US – but alsoin Europe as well. The guidingprinciple is to mix multiple forms offreight transport to achieve a netreduction in costs, be it energy orcapital. The typical example would beto use rail to shift huge quantities ofgoods to a given warehouse closer tothe final destination – before thenhaving lorries ferry the goods the lastdistance into urban areas. While this can obviously savemany thousands of road miles thereis the issue of rail availability,especially in the UK. The reason whyit is so prevalent in America isthanks to their abundance of flatland that is suitable for rail. UK railsystems are often not as welldeveloped – and while that hasn’tstopped companies such as Tescoutilising rail for intermodal logistics,it does mean companies aresomewhat limited in location. Beingforced to settle warehouses where therail links are strongest. Savings on warehouse space can befound in improving efficiency toincrease the amount of product thatcan be stored in any given amount ofspace. Advanced racking solutions,combined with more robust supply16 ÁPHOTO: SHUTTERSTOCK.COM/TTSTUDIOHat trick for PaneltexSomersLeading manufacturer of refrigerated vanconversions Paneltex Somers has set a newbenchmark at this year’s prestigious annual TCS&DAwards by becoming the first company ever to winthe same award for three consecutive years.Paneltex Somers has now scooped a hat trick ofawards for the category of ‘Refrigerated Panel Vanof the Year’ over the last three years. Paneltex Somers won this award for the first timeat the inaugural 2013 TCS&D Awards held 2 yearsago, as well as winning the same award at lastyear’s event. According to the TCS&D 2015 Awards judges,“We were impressed with the outstanding buildquality and attention to detail achieved by PaneltexSomers. Consistent innovation and production inhigh quality facilities were also influential.” 13-16_Layout 1 19/10/2015 11:43 Page 2GO DIRECT……to the UK’s No.1 supplier of plastic pallets and boxesThe UK’s largest range Available from stock Free expert adviceInstant, competitive quotes Immediate nationwide delivery01323 744057 sales@goplasticpallets.comwww.goplasticpallets.comFood & Drink International 15www.fdiforum.net13-16_Layout 1 19/10/2015 11:43 Page 316 Food & Drink Internationalwww.fdiforum.netTRANSPORT AND LOGISTICSchain systems enable companies toincrease throughput while also cuttingcosts associated with lost time orproduct losses. As always, the trick is infinding out exactly how much ispossible given space limitations – andadapting what can be used for acompany’s products, be they palletisedgoods – or more individually stackedproduce. Even beyond efficient storagehowever is the concept of efficienttemperature control. With the vastmajority of food products needing to bekept at specific temperatures there areobviously savings that can be made indoing so. After all it is more expensiveto reduce the temperature of a storagefacility, than it is to maintain it. Anylosses in temperature due to breaches,poor worker attention to detail – or justold age, will result in costs that cansoon spiral out of control. PHOTO: SHUTTERSTOCK.COM/TELEKHOVSKYIPolymer Logistics receivesaward for its new ‘woodlook crate’ Polymer Logistics, a leading provider of retail-ready packaging(RRP) solutions, has been presented with a Golden Medal in theInnovation Awards held at the fruit and vegetable trade show,Macfrut 2015. Macfrut, an international trade show with exhibitors representingthe food and vegetable sector, has been running yearly in Italy since1983. However, the Innovation Awards were launched for the firsttime at the event this year. Focusing on environmental and economicsustainability, the Awards were dedicated to reviewing the mosttechnically significant innovations in various categories frompackaging and logistics to agriculture and cultivation. The jury that awarded the Golden Medal to Polymer Logistics wascomposed of an expert panel of professionals from the food andvegetable sector and industry journalists. Having been announcedas award winners at the start of Macfrut 2015, Polymer Logistics hadthe Golden Medal notification displayed on their stand whilst aformal ceremony, in which the Innovation Award was presented toGian Paolo Mezzanotte, Polymer Italy country manager. 13-16_Layout 1 19/10/2015 11:43 Page 4Food & Drink International 17www.fdiforum.netMACHINERY AND EQUIPMENTShining a lighton optimisation Innovative and intuitive equipment is the key to efficiency acrossthe production line, but there’s more than meets the eye. It comes as no surprise that achievingan efficient production or packagingline is at its most efficient when theyvery best equipment is being employed.And it doesn’t take a stretch of theimagination to consider that gaining acompetitive advantage can be as simple asinstalling the latest machinery. So, to put aspotlight on the latest in machinery andequipment is equivalent to highlightingsome of the best ways to improveefficiency and optimisation.As ever, the continued atomisation ofthe production line is leading toinnovative developments as far asmachinery are concerned. T Freemantle’slatest range boasts a variety of automaticand semi-automatic sleevers, cartoners andsealers, among others, to establish aproficient production line. Take its fully automated end loadcartoner, for example. The given productis loaded into the machines infeedconveyer, which can be achieved eithermanually or automatically depending onthe capabilities of the user, at which pointthe machine detects and automaticallyselects and erects a carton from the cartonmagazine. The product is thenautomatically loaded into the openedcarded, which is then folded, glued andsealed, and then ejected at the end of themachine. Available with an integralproduct transfer system to accept randomsupply of product from the line and feeddirectly from machine, it embodiesoptimisation. The relationship betweenefficiency and automation is harmonious,and nurturing automatic competences isan investment in the future. ‘Production line automation madesimple’ is the missive of WesternMechanical Handling UK Ltd, and it’s asentiment realised across its catalogue.19 ÁPHOTO: SHUTTERSTOCK.COM/SARYMSAKOV ANDREY17-25_Layout 1 19/10/2015 11:45 Page 1No.1 FOR SHRINK WRAPPINGADPAKAdpak Machinery Systems Ltd established in 1987 are recognized as one ofthe leaders in packaging technology.Adpakmarket a range of innovative shrinkwrapping, palletisation and pallet stretchwrapping systems supplying both newand second hand machinery andproviding a full after sales service.Tel: 01282 601444 Fax: 01282 6122013 Pendleside,Lomeshaye Industrial Estate, Nelson,Lancashire BB9 6RYemail: sales@adpak.co.ukWWW.ADPAK.CO.UKT: +44 (0) 118 946 1900 E: sales@appliedweighing.co.ukwww.appliedweighing.co.ukFOR GENERAL, PROCESS, PHARMACEUTICAL & FOOD WEIGHING APPLICATIONSLoad CellsSilo, Tank & Vessel SystemsWeight Indicators & Control SystemsPlatform ScalesDrum FillingSystemsDynamic CheckWeighersThe UK’s leading load cell & process weighing systemmanufacturer. When you use any product fromApplied Weighing you will have absolute accuracyand total peace of mind. ComprehensiveNational ServiceOrganisationAccurate weighing - whatever your industryMANUFACTURED IN THE UK17-25_Layout 1 19/10/2015 11:45 Page 2Food & Drink International 19www.fdiforum.netMACHINERY AND EQUIPMENTThe family owned company, which, for forty years, hasbeen offering automation solutions to food and pharmacompanies across the globe, works alongside third partmanufacturer WMH to offer a seamless productionline. This seamless quality is perhaps most readilyrealised in the company’s range of depositors. Thehygienic, multi-lane systems are designed fordepositing hot or cold liquids and sauces and highthroughputs, with superior repeatable accuracy. Thedepositors are offered as standalone mobile units butcan also be fully integrated into the production line.Often, the key to automation is simplicity, as evidencein all WMH depositing systems. Each unit offers asimple to operate touch screen interface, as well asbeing configured for CIP cleaning and being suitablefor extended production run for complete ease of use. Harford Control Ltd, on the other hand, offer totalcompliance at the lowest manufactured cost. Leaders inin-line performance management, Harford Controloffers the most comprehensive system available globallytoday for a performance management system whichcovers all Factory Floor Information (MIS) needs in asingle turnkey system. This translates as a combination21 ÁPHOTO: SHUTTERSTOCK.COM/ET1972JLT introduces virtually unbreakabletouch screen and boosts performanceof its logistics computerJLT Mobile Computers, Swedish developer and manufacturer of ruggedcomputers for demanding environments, has announced the JLT1214P, a newlogistics computer which features revolutionary Rugged Projective CapacitiveTouch (PCT) display technology and additional computing power compared toprevious product generations. The JLT1214P computer’s bright 12-inch XGA display with the new JLT RuggedPCT technology provides a familiar, user-friendly experience comparable tomodern consumer devices, both with a gloved or ungloved hand, while ensuringruggedness, reliability and longevity in even the most demanding environments.The JLT1214P computer also offers enhanced computing performance thanks toa 64-bit Intel quad-core processor, improving responsiveness. In combination withthe new user-friendly touch screen, the higher performance speeds up tasks andincreases users’ productivity. This powerful combination of features provides thebest possible total cost of ownership for logistics applications ranging fromwarehousing and food distribution to freezer storage and cross-docking.As with all JLT computers, the JLT1214P logistics computer is built from theground up to deliver maximum reliability and function in very demandingenvironments. 17-25_Layout 1 19/10/2015 11:46 Page 3Next >