Ferré & Consulting Blog (English Version)

Co-ordinated EU-wide action is needed urgently to end food price volatility induced by market speculation, warns the European Flour Milling Association after wheat prices reached a 23-month high yesterday.

Speaking after Russian Prime Minister, Vladimir Putin announced a ban on grain exports leading to record price hikes, the association highlighted the corrosive effect of food speculators.

Laurent Reverdy, the association’s secretary-general told BakeryandSnacks.com: “We consider that this situation requires a significant reaction of public authorities to fight artificial and detrimental food price volatility induced by market speculation. We are convinced that European coordinated measures by public authorities are necessary to provide a clear signal to all operators on the futures commodity markets.”

Price inflation

Market speculation is a key reason behind the current price rises, he said. “The rise in cereal prices is market speculation, which seems to be fuelled by statements of speculators exaggerating the current uncertainty over harvest prospects in regions hit by adverse weather conditions. This leads to price inflation and affects the whole cereals chain.”

The association said it was difficult to gauge the impact of the temporary Russian grain export ban at this stage. But quotations on the EU cereals market have increased since the beginning of July by more than 40 per cent for wheat.

However independent market monitoring reports from the Food and Agriculture

Organisation (FAO), United States Department of Agriculture (USDA), European Commission (EC) and International Grains Council (IGC) all confirm that recent price rises are not supported by market fundamentals.

“Recent cereal crop estimates in key world growing regions (EU included) seem high enough to meet the global demand even with the severe setback in the Russian and Ukraine cereal harvest,” said Reverdy.

Yesterday, Putin confirmed a ban on the exports of grain and grain products from 15 August until 31 December 2010. “I think it is advisable to introduce a temporary ban on the export from Russia of grain and other agriculture products made from grain,” he said.

One of the world’s biggest producers of wheat, barley and rye, Russia exported a quarter of its grain output last year.

Following widespread drought and continuing wildfires, the country’s deputy agriculture minister Aleksander Belyayev recently predicted this year’s wheat harvest to be between 70-75m tonnes compared with 97m tonnes last year.

Speaking before the export ban the National Association of British & Irish Millers (NABIM) said it was too early to predict what effect the lower Russian harvest would have on the effect on European flour products such as bread and biscuits.

Too many variables

“The European wheat harvest is likely to be between 5 -10 per cent below forecast but, at present, there are too many variables, to predict the impact on bread and biscuit prices,” said a spokesman.

Meanwhile, EU’s internal market commissioner, Michel Barnier, condemned food price speculation last year. “Speculation in basic foodstuffs is a scandal when there are a billion starving people in the world. We must ensure markets contribute to sustainable growth. I am fighting for a fairer world and I want Europe to take the lead on that.”

Source: Bakery and Snacks

Milling industry grain exports, speculation, wheat prices

American macaroons are chewy and dense. Their French macaron counterparts, on the other hand, are fluffy and as light as air.

You say potato; I say potato. You say macaroon; I say macaron. But wait. The difference with the spud saying lies in simple opposing pronunciations. However, that is only a small portion of the story in the case of the cookie. Although both “macaroon” and “macaron” come from the Italian word “maccarone,” meaning paste, they actually refer to two very different sweet treats.

American macaroons are chewy and dense. Their French macaron counterparts, on the other hand, are fluffy and as light as air. What the two varieties do have in common, though, is that they are easy enough for your instore bakers to make, and carrying one or both of them will add an enchanting and profitable element to your instore bakery.

American macaroons are traditionally moist, sweet and very dense. In the United States, the best-known variety is coconut; however other flavors, like chocolate and honey nut, also exist.

Macaroons provide bakers with a lot of creative freedom when it comes to shape and toppings. They can be piped out with a star-shaped tip, individually hand-formed, or baked in a tart shell to be later cut into slices. There are endless ways to decorate macaroons, as well, from chocolate-dipped to cherry-topped and everything in between.

Although the sugar content is fairly high in these confections, there are some nutritional advantages you can tout to your health-conscious clientele. For starters, coconut is not only a great source of fiber, which is an important component of popular diet plans like Weight Watchers, but it also contains medium-chain fatty acids that are easily converted to energy. With today’s on-the-go lifestyle, that is definitely a plus. Additionally, there are no fermented grains in macaroons, making them a perfect dessert for Jewish families to enjoy during Passover.

Adding to their appeal, macaroons are gluten-free, which renders them a great product for your instore bakery to offer as the demand for gluten-free products continues to grow. According to a recent report from Packaged Facts, the gluten-free market has grown at an average annual rate of 28 percent since 2004, when it was valued at $580 million, to reach $1.56 billion last year. Packaged Facts estimates that gluten-free sales will be worth $2.6 billion by 2012.

Wegmans, Hy-Vee and numerous other instore bakeries all across the country already carry macaroons. Safeway does as well, and according to its website, “The sweet, fluffy macaroon is a classic cookie to have in your baking repertoire.”

If you do not yet carry macaroons in your instore bakery, the American Almond Products Company, Inc. (www.americanalmond.com) can help you easily begin to incorporate them into your product line. American Almond offers five-pound cartons of both a vanilla and a chocolate coconut macaroon mix for around ten dollars each. The company’s website says, “With either of our complete Coconut Macaroon Cookie mixes, vanilla or chocolate, you’ll find that a chewy texture and delicious taste are as easy as 1-2-3. Just add hot water, mix and bake!””

While American macaroons can take any number of different forms, the shape of French macarons is much more uniformed and structured. French macarons are made out of two smooth, dome-shaped meringues that sandwich a layer of flavorful filling, which is typically made out of buttercream or jam. The meringue batter is made by folding almond flour into egg whites beaten with sugar until the mixture becomes thick and shiny. It is then piped into small rounds on parchment or silicone-lined sheets for baking. The filling is the last step of the process.

The flavor opportunities for French macarons are abundant, only limited by imagination. They range from the traditional and always popular chocolates and raspberries, to the exotic and more adventurous black sesames and candied violets. Cecile Cannone, pastry chef and co-owner of MacarOn Café in New York, finds her flavor inspiration from the seasons, annual holidays and various ethnic spices she stumbles across. “Once I finish the basic flavors I can create something fun,” Cannone says. “At Thanksgiving, I make a cranberry macaron. I also have a lot of Asian customers so I make a green tea flavor for them.” The endless flavor possibilities provide a great opportunity for you to differentiate your instore bakery from your competitors, and to keep your customers surprised and coming back for more.

If you need further convincing as to the worth of these confections, consider this: The Wall Street Journal reports that macarons may soon surpass the cupcake in popularity. They are already all the rage in Paris, where they can even be purchased by consumers at McDonald’s McCafés. The macarons sold through this fast food giant are not just any macarons, either. They are provided by Holder, the company that owns the infamous Ladurée which is internationally known for its delectable macarons.

Source: Baking Buyer

Beyond the European borders, macarons have recently started popping up abundantly in the United States. While they are still somewhat resigned to specialty bakeries, they are beginning to spread into new outlets. Starbucks carried them nationwide during the holidays last year and that sentiment is sure to grow. By offering French macarons, you will keep your instore bakery ahead of the curve and give customers a reason to shop yours instead of someone else’s.

Pastry Macaron, Macaroon

Shanghai, Jakarta, Bucharest, Mexico City… Just a few examples of the 70 locations where Sensient Technologies have placed their footprint across the globe. This diverse, multifaceted company operates in over 30 countries with customers in more than 150. Sensient is now looking to further its presence across the world. When I speak to Kenneth Manning, Sensient´s Chairman and Chief Executive Officer, I am eager to find out how he has achieved so much when the rest of the world has been in the grip of an economic crisis, and what his ongoing strategy could be.

“I am happy to report excellent earnings per share for 2009. Our sales were strong at $1.2bn and our cash flow surpassed $138 million, the highest in the company’s history.

The economy may be struggling but we are not”, Mr Manning tells me. “The uniqueness of our products stood up to the tough market.” I ask him how he would characterise his company now in May 2010 and looking onwards. “High-tech, high growth and international,” he responds without hesitation.

Sensient´s technological strength is indisputable, with major investment projects across the globe, in particular in china and the US.

A new production plant for flavour extracts was opened in Indianapolis, as well as a major facility in Guangzhou, China, including labs and manufacturing equipment. A $16 million investment in natural colours in St. Louis was also just announced. About 60% of Sensient´s revenue now comes from overseas. “We’ve had some spectacular opportunities in China, with a larger operation base now running in Brazil. Growth has been strong across Eastern and Central Europe. We are continuing to pursue geographic expansion with our development of an extended distribution system. We have recently established nine new locations with sales and technical personnel in Helsinki, Warsaw, Bucharest and other cities in Eastern and Central Europe and Scandinavia,” said Mr Manning.

With so much of the planet already able to access Sensient´s products, I ask if there are any specific markets being targeted. “We are very interested in the Balkans, the Baltics and Ukraine and we are looking at North Africa. We are particularly interested in expanding in Central and Eastern Europe. Interestingly, these are often the countries with less disposable income, yet there we find greater demand for natural colours.”

Natural products were arguably 2009´s biggest trend. “Naturals are in fact now growing much faster than synthetics,” Manning comments. “Our new Fusion brand of natural colours can match specific shades with superior quality for our customers. We’re number one in the world for our food and beverage colours, and our food colour technology has become so advanced that It can be applied in non-food sectors, such as inkjet inks and cosmetics. The factories are differents, but the underlying technology is the same.”

2010 will see key new colour and flavour regulations introduced acroos the EU. “We are very well placed for the new legislation,” Manning says. “Natural colour and flavour trends across Europe have been leading the way, and are now forcing many US companies to go natural too.” He elaborates on other foods trends he expects to see in the future. “Value will be a key area for consumers. They want as good a solution as possible but for less money. I expect to see a continuation of private label – it´s an excellent way to offer a high quality product at a reasonable price. In the longer term, we will see many more new products. Manufacturers have remained with established brands, and in the last few years, because of the economy, we have not seen as many new product launches. Launches will accelerate as the economy picks up.”

Sensient offer innovative products which have relevance across cultures, a combination which generates growth. How does Mr. Manning manage this expanding global business? “We have a very flat organisation and follow a profit centre concept. Our general managers have a great deal of autonomy in their particular regions. We have strong financial controls and our financing is handled centrally. Locally, the general manager has control over sales and can adjust products and product mix to the preferences of the region.

Strategy is a crucial aspect of Sensient´s success. “Our ongoing aim is to launch new products. Health and wellness is a key area, and I plan to develop more natural products. Continuing to offer state-of-the-art technology is of utmost importance. We are currently expanding into additional geographic markets, and we are focusing on future global development.”

Looking at Sensient today, it’s hard to believe this billion-dollar global enterprise began in 1882 as Meadow Springs Distilling Company, making gin and later yeast. Before Mr Manning joined the company, it had become a collection of low-growth commodities businesses. When Mr Manning became CEO, he embarked on an acquisition programme to invest in new technologies and new markets. The company is now a leading global developer, manufacturer and marketer of colours, flavours and fragrances.

Mr Manning is confident about Sensient´s progress and its plans for the future. “I expect this year to be a very strong year for Sensient. We are well-positioned, whether or not the economy turns up.”

Source: Kennedys Confection

Companies flavour extracts, Ingredients, Sensient Technologies