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Further food safety legislation in the offing
Supporters say the legislation grants the Food and Drug Administration the authorities and resources it needs to better oversee the safety of the nation’s food supply. The legislation also increases the industry’s responsibility for overseeing the safety of its own products and provides FDA with new and enhanced tools to hold processors accountable when problems occur. Much of FDA’s expanded budget would come from fees levied on food producers, under the proposed legislation.
The Grocery Manufacturers Association (GMA) gave qualified support to the bill. GMA President and CEO Pamela G. Bailey expressed some reservations but said overall the measure would improve the system.
“This bipartisan bill contains many of GMA’s food safety proposals, and we look forward to continuing our work with Congress to enact food safety legislation that makes prevention of contamination the foundation of our food safety strategies,” Bailey said.
Meanwhile, the late June recall of 421,000 lbs of beef, possibly tainted with E. coli bacteria, has increased the pressure in Congress for food safety oversight and reform. One of the food industry’s biggest congressional critics, Rep. Rosa L. DeLauro (D-CT) issued a statement calling the recall part of a larger pattern.
“It is deeply troubling that it has been over two months since this meat was produced and only now are we learning that thousands of Americans have potentially been exposed to E. coli-tainted beef,” DeLauro said. “I urge the USDA to aggressively and expeditiously investigate why in the company’s words the safety of this product could not be assured.”
An investigation into the at least two dozen illnesses in multiple states is ongoing. The suspect beef was distributed by JBS Swift Beef Co. of Greeley, CO.![](/FE/Home/Images/CavendishBioGas-WEB.jpg)
Potato waste creates fuel, fertilizer
According to Robert Irving, Cavendish Farms president, “This is the first facility in the potato industry to take solid potato waste and convert it into usable energy.” While most facilities treat wastewater produced from potato processing, the Cavendish bio-gas facility also takes the solid waste material from potato processing, and through anaerobic digestion, converts it into useable energy. What’s left over is converted to organic fertilizer.
“The investment in this new technology benefits our environment while being financially beneficial to our business model,”
Adds Richard Brown, minister of environment, Energy and Forestry, “By taking a waste product and turning it into both energy and usable compost, Cavendish Farms is demonstrating a commitment to innovation, energy efficiency and waste reduction.”
The new facility reduces the amount of truck traffic by 1450 km (901 miles) per day, and the spent potato waste from the reactor is converted into an organic, natural fertilizer that can be used on fields in place of chemicals.
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CPG beats S&P 500, Dow Jones
“Given the CPG industry’s laser focus on delivering value, innovation and investment in the future, it’s no surprise that it appears to be weathering this economic cycle better than other sectors,” said GMA President and CEO Pamela G. Bailey. “This performance is testimony to the fact that CPG companies are fulfilling their core mission, which is giving consumers the quality products they need at an affordable price.”
The food sector experienced sales growth of 10.2%, evidence that consumers are increasingly cooking and eating at home. The beverage sector recorded 9.9% sales growth, followed by household product at 9.1% growth. The food sector was the performance leader among the major CPG sectors, with 2008 median shareholder returns down 21%. Overall CPG company shareholder returns for 2008 were down slightly more than 25%, which actually showed better performance than the rest of the market.
While gross margins and sales growth remained steady, the beverage sector still seemed to be swimming upstream, especially in the market that once fairly defined the sector-carbonated drinks. According to the study, while sales of carbonated soft drinks have been eroding steadily for years, the biggest players in the sector continue to respond aggressively. The study says the emphasis for beverage manufacturers is to protect and rejuvenate their core brands. With the competition of store brands, defining and differentiating name brands is more important than ever.
For more information on the study or to download it, visit GMA’s Web site or the PricewaterhouseCoopers LLP Web site.Features
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