Jose Graziano da Silva, the new director general of the United Nations’ Food and Agriculture Organization (FAO), recently argued that the use of corn to make ethanol in the U.S. is playing a noticeable factor in raising grain prices worldwide. “We have been looking into the details of the price, and nowadays there is no doubt that the use of maize in the U.S. for biofuels affects the prices of maize all over the world,” Graziano da Silva said. Graziano da Silva argues that “food security comes first, that is the rule.” The FAO head says the organization’s current position is that cereals should not be used for biofuel production.

Ethanol production from sugar cane in Brazil accounts for only 3 % of land use, and does not currently affect the price of sugar on international markets, according to the director general of the FAO.

The Brazilian Development Bank announced earlier this month a program to finance low cost loans for farmers of sugar cane and producers of ethanol. The country is seeking to boost biofuel production in the wake of ethanol tariffs and subsidies expiring in the US.

The report recommends a simple FOP nutrition rating system that shows calories in household measures and points for the healthfulness of the product based on nutrients of most concern, enabling shoppers to instantly recognize healthier products by their number of points and calorie information. The intent is to assist Congress and the Food and Drug Administration decide what to do about the proliferation of certain labeling practices that food companies and retailers use to highlight the nutritional aspects of food products.

In an earlier Phase 1 report, the IOM Committee “concluded that calories, saturated fat, trans fat, and sodium should be the focus of the new front-of-package system because they are most strongly associated with chronic disease,” according to the IOM release. The Committee’s Phase 2 report issued October 20, added sugars to the list of unhealthy nutrients. This seems to indicate a reversal of its 2010 Phase I science-based recommendation on sugars, in which the panel concluded that total or added sugars were not one of the “most pressing diet-related health concerns.

According to The Sugar Association, in this report, the IOM has disregarded the conclusion of another IOM panel and the European Food Safety Authority which found there is no scientific evidence supporting an upper intake level for total or added sugars.

Researchers have introduced a new approach that prioritizes a sustainable and responsible way of producing ethanol called the “midway” strategy. This innovative strategy involves producing the necessary biotechnology to increase biomass yield and ethanol production. Agricultural expansion will be further reduced by improving sugarcane management. This strategy will effectively minimize the impacts of sugarcane bioethanol production on biodiversity while synergistically protecting and regenerating rainforest.

According to Marcos Buckeridge, Professor of the University of Sao Paulo and Scientific Director of the Brazilian Bioethanol Science and Technology Laboratory, “Brazil is now in a privileged position because of its opportunity to introduce a new style of crop production with a much higher level of sustainability. The midway strategy should be applied not only for sugarcane, but for all crops.”

Successful implementation of the “midway” strategy will require three key components: scientific research to understand sugarcane biology and ecology, technological development of genetically improved sugarcane crops and production technologies, and creation of policies that support sustainable land management.

Buckeridge further notes that, because Brazil has a stable economy and is the world leader in sugarcane ethanol production, it is in an excellent position to implement the midway strategy.

Use of stevia is predicted to rise at an astonishing rate this year, taking the natural sweetener’s share of the total US sugars and sweeteners market from 1.8% in 2010 to 9.1% in 2011, according to Packaged Facts.

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USDA said law allows the secretary of agriculture to permit sugar allocated under a given quota period to be entered in a previous or subsequent quota year period.

“This action is expected to reduce the TRQ shortfall and provide additional flexibility for U.S. refiners,” the USDA said.

The South Florida Water Management District, the agency tasked with Everglades restoration, announced today that the EAA’s on-farm Best Management Practices (BMPs), developed by university scientists in collaboration with farmers, are a resounding success. The District praised EAA farmers for being proactive and often implementing more BMPs than what is required.

“We’re proud of farmers’ accomplishments cleaning water, with an average phosphorus reduction of 55 percent over the last 16 years,” said Barbara Miedema, vice president of the Sugar Cane Growers Cooperative. “When the BMP program was first envisioned in 1991, no one imagined it would be this effective over the long term. It’s an example of the kind of success that can be achieved in partnership with scientists and farmers, who roll up their sleeves to get the job done.”

In addition to improving water quality using high-tech sustainable practices, more than $200 million has been paid by farmers for the construction of Stormwater Treatment Areas (STAs) to further clean water. Built on 60,000 acres of former farmland, the STAs have reduced phosphorus to the Everglades Protection Area by an additional 1,470 metric tons. That’s in addition to the 2,400 metric tons of phosphorus removed by farmers.

“Along with being stable economic drivers and job providers for our state and county, farmers have a long track record of supporting and implementing Everglades restoration,” said Gaston Cantens, vice president of Florida Crystals Corporation. “Today’s record-breaking results are another example of the proven success of our sustainable practices and demonstrate the significant role our farms continue to play in protecting and preserving the Everglades ecosystem, as the design was intended.”

Florida Agriculture Fast Facts:
* Supports 766,000 jobs
* Generates $100 billion annual economic impact in Florida
* Responsible for $3 billion in tax revenue for local and state government
* Florida Sugar Industry provides 7,000 direct jobs & 23,500 indirect jobs
* Florida Sugar Industry generates $2 billion economic impact

On June 21, 2011, the U.S. Secretary of Agriculture announced an additional in-quota quantity for the TRQ for raw cane sugar for the remainder of FY 2011 (ending September 30, 2011) in the amount of 108,862 metric tons* raw value (MTRV). This quantity is in addition to the minimum amount to which the United States is committed under the World Trade Organization (WTO) Uruguay Round Agreements.

Based on additional consultations with quota holding countries, USTR is adjusting the quantity of 108,862 MTRV allocated on June 21, 2011 to the following countries in the amounts specified below:

Additionally, based on follow-up country consultations, the Office of the United States Trade Representative is also today reallocating 16,807 MTRV of the minimum amount of the original TRQ for raw cane sugar to the Philippines. This results in an overall increased allocation of 19,648 MTRV for the Philippines.

These allocations are based on the countries’ historical shipments to the United States. The allocations of the raw cane sugar TRQ to countries that are net importers of sugar are conditioned on receipt of the appropriate verifications of origin, and certificates for quota eligibility must accompany imports from any country to which an allocation is provided.

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Source: USDA Agricultural Research Service

The Secretary of Agriculture announced an additional in-quota quantity for the TRQ for raw cane sugar for the remainder of FY 2011 (ending September 30, 2011) in the amount of 108,862 metric tons* raw value (MTRV). This quantity is in addition to the minimum amount to which the United States is committed under the World Trade Organization (WTO) Uruguay Round Agreements.

Based on consultations with quota holding countries, USTR is allocating the quantity of 108,862 MTRV to the following countries in the quantities specified below.

These allocations are based on the countries’ historical shipments to the United States. The allocations of the raw cane sugar TRQ to countries that are net importers of sugar are conditioned on receipt of the appropriate verifications of origin, and certificates for quota eligibility must accompany imports from any country to which an allocation is provided.

”The quota increase they made isn’t going to be enough to cover the gap,” said John Sheptor, Chief Executive Officer of Imperial Sugar Company. Sheptor indicates that his company isn’t ruling out price increases if sugar costs rise since in the past, sugar manufacturers have had to import sugar at higher tariffs to meet their supply needs.

The increase is expected to yield a net increase in imports of 110,000 STRV due to normal TRQ slippage. The increase in sugar supplies is forecast to yield an ending FY 2011 stocks-to-use ratio of 15.0 percent and mitigate some of the summer 2011 sugar supply risk associated with late sugar beet plantings, uncertain Mexican imports, and a tight world sugar market. This increase in raw sugar imports is also expected to provide an adequate supply of sugar without the need for significant imports under the unrestricted high-tier tariff.

In a separate action, USDA increased the overall allotment quantity (OAQ) for domestic sugar marketing by 164,750 STRV to provide U.S. producers with the statutory minimum market share of 85 percent. This OAQ action increased both cane and beet sugar allotments given the sector proportions specified in statute. The increased cane sugar allotment was greater than the domestic cane sugar supply. Thus, the surplus cane sugar allotment was reassigned from domestic sugarcane processors to raw sugar imports. This reassignment, as well as the enlarged beet sugar allotment, is effective June 21.

The individual company allocations that reflect the change in the OAQ are below. The Office of the U.S. Trade Representative will announce country allocations for the TRQ increase separately.

FY 2011 Raw Sugar TRQ Increase

On August 5, 2010, USDA established the FY 2011 TRQ for raw cane sugar at 1,231,497 STRV (1,117,195 metric tons raw value, MTRV*), the minimum to which the United States is committed under the World Trade Organization (WTO) Uruguay Round Agreement on Agriculture.

On April 12, 2011, USDA increased the raw cane sugar TRQ by 325,000 STRV to a total of 1,556,497 STRV. Pursuant to Additional U.S. Note 5 to Chapter 17 of the U.S. Harmonized Tariff Schedule (HTS) and Section 359k of the Agricultural Adjustment Act of 1938, as amended, USDA today announced in the Federal Register an increase in the raw sugar TRQ of 120,000 STRV (108,862 MTRV), which brings the overall FY 2011 raw sugar TRQ to 1,676,497 STRV (1,520,892 MTRV). Raw sugar under this quota must be accompanied by a certificate of quota eligibility and may be entered under subheading 1701.11.10 of the HTS until September 30, 2011.

FY 2011 Reassignment of Sugar Marketing Allotments

USDA’s Commodity Credit Corporation (CCC) latest review of domestic demand indicated that the OAQ had to be increased to provide domestic processors with the minimum 85 percent domestic market share, as required by the 2008 farm bill. This increase helps some beet sugar processors, who had inadequate allocations, to market all their supplies. Thus, the beet sector allotment was increased by 89,542 STRV to 5,108,900 STRV and redistributed from beet processors with surplus allocation to those with deficit allocation to release all blocked beet sugar stocks for sale. No beet sector allotment is reassigned to imports at this time (see attached table).

The 2008 farm bill requires that any OAQ increase be implemented in fixed proportions between the beet and cane sectors. Thus, the OAQ increase resulted in a 75,208 STRV increase in the cane sugar allotment, which was distributed among the sugar cane states and processors. The resulting CCC estimate of a 600,000 STRV cane sugar allotment surplus must be reassigned to raw sugar imports. Here, 480,000 STRV is reassigned to Mexico raw sugar imports already anticipated, while 120,000 STRV is reassigned to the TRQ increase announced above.

All sugarcane states’ sugar marketing allotments are reduced, with the total cane sector allotment decreased from 3,890,892 STRV to 3,366,100 STRV. The new cane state allotments are: Florida, 1,464,666 STRV; Louisiana, 1,526,050 STRV; Texas, 147,138 STRV; and Hawaii, 228,246 STRV. The FY 2011 sugar marketing allotment program will allow all domestic supply to be marketed.

USDA will closely monitor stocks, consumption, imports, and all sugar market and program variables on an ongoing basis. Additional adjustments to import TRQs and domestic marketing allotments may be needed later in FY 2011 to ensure an adequate sugar supply for the domestic market to prevent market disruptions. Within the next few months USDA will announce the FY 2012 sugar tariff-rate quota, and whether the periods for entry of raw sugar under the FY 2011 and/or FY 2012 raw sugar TRQs will be extended.

The suit, filed in U.S. District Court in Los Angeles by Western Sugar Cooperative, Michigan Sugar Company and C & H Sugar Company, Inc., charges that the “corn sugar” branding campaign financed by the corn refining industry’s giant companies constitutes false advertising under federal and state law. The processors’ campaign was launched as a way to thwart declining sales of high-fructose corn syrup, or “HFCS.”

Companies named as defendants include Archer Daniels Midland Company, Cargill, Inc., Corn Products International, Inc., Penford Products Co., Roquette America, Inc., Tate & Lyle Ingredients Americas, Inc. and the companies’ marketing and lobbying organization, The Corn Refiners Association, Inc.

“This suit is about false advertising, pure and simple,” said Inder Mathur, President and CEO of Western Sugar Cooperative. “If consumers are concerned about your product, then you should improve it or explain its benefits, not try to deceive people about its name or distort scientific facts.”

The sugar producers seek an injunction to end the advertising campaign and also seek damages, including compensation for corrective advertising.

According to the complaint, consumers have increasingly sought to avoid food and drinks containing HFCS, because of its possible role in the obesity epidemic and other nutritional and health problems, or simply to avoid non-natural ingredients. As a result, food and beverage makers have been replacing HFCS with real sugar, and the corn refining industry has seen HFCS sales steadily decline.

The sugar producers charge the defendants with trying to resuscitate HFCS sales through a marketing blitz aimed at changing consumer perceptions of HFCS by equating it with real sugar. The defendants are attempting to do so, allege the sugar producers, by marketing HFCS as a natural sugar that is simply extracted from corn, which is not true.

While the corn refining industry has petitioned the U.S. Food and Drug Administration (FDA) for approval to substitute “corn sugar” for “high-fructose corn syrup” on ingredient labels, the sugar-producing plaintiffs assert that the defendants did not even wait for the FDA’s response before beginning their “corn sugar” branding efforts. The complaint states that “Defendants’ resort to such literally false and misleading statements harms consumers, harms the makers of real sugar and harms any dialogue based on the truth. This lawsuit seeks to put an end to the deception.”

Soggy soil is blamed for delaying the planting of sugar beets, the crop that accounts for more than half of the country’s supply of sugar.

In Minnesota, none of the crop has been planted, compared to 77 % last season at the same date. Similar conditions exist in North Dakota where the crop is not yet underway. The crop was 76% complete last season at the same date. In Idaho 48 % of the crop has been planted, up from 18% last week but down from 77% last season at the same date. In Michigan, 13 % of the crop has been planted, up from 12% last week but down from 100% of the crop last season at the same date. In Colorado, 20% of the crop has been planted, down from the five-year average of 49%. In Montana, 10% of the crop has been planted, up from six percent last week but down from 52% last season.

A delay in sugar-beet plantings could reduce yields of the sweetener, since the root’s sugar content increases the longer it is in the ground. After they are harvested, the beets are shredded and boiled to extract the sugar. The beets also need to be harvested by October, before cold weather hits.

The U.S. needs to import sugar every year, but the USDA operates a limit for low-tariff or duty-free imported sugar to protect domestic producers. The U.S. government is likely to increase imports of the sweetener if this year’s sugar-beet harvest is significantly lower than normal. The USDA earlier this month increased the import quota for the first time this season after record cold slashed sugar-cane output in Florida.

The U.S. consumes about 11.5 million tons of sugar a year, according to the USDA.

Duiven, the Netherlands-Luo han guo, a natural, low-calorie sweetener that has been used in China for hundreds of years, may soon become more popular here in the States, according to the Innova Markets Insights’ database, which tracks new product activity.

To read more, click here.

Published in Whole Foods Magazine, October 2010

Foods and beverages sweetened with Chinese monk fruit will be hitting US grocery store shelves within the year and could become another all-natural, zero-calorie weapon against obesity and diabetes.

About 300 times sweeter than sugar, the monk fruit – which looks like a small, green melon – is the latest all-natural sweetener to edge its way into the food and beverage market.

The biggest player making waves currently is stevia, a plant that’s been used in Paraguay and Brazil for hundreds of years for its sweetening and medicinal properties.

Both Coco-Cola and PepsiCo partnered with researchers to develop their own brands of stevia-based sweeteners. PepsiCo’s line of SoBe waters, available in the US and Canada, uses the stevia-based sweetener PureVia.
Coca-Cola’s Odwalla juice line includes two flavors sweetened with the proprietary Truvia: Odwalla Mojito Mambo and Odwalla Pomegranate Strawberry.

The monk fruit, meanwhile – also known as luo han guo – is likewise touted as an all-natural sweetener and grows on steep forested mountains in southwest China, on small-scale local farms. It’s been used for years as a sweetener in Asia and is touted as a zero-calorie ingredent ideal for diabetic patients.

In an interview with trade magazine FoodNavigator.com last week, New Zealand-based BioVittoria – the largest producer and processor of monk fruit in the world – said it’s confident that its sweetener, Fruit-Sweetness, will be available in beverages commercially this year. The product is 150 times sweeter than sugar.

FlatBelly Protein Shake, a whey protein drink of Maverick Brands in California, will be the first to launch a beverage using Fruit-Sweetness.

Talking Rain Beverage Company in Washington is also developing a flavored water formulated with the natual sweetener.

After getting the green light from the US Food and Drug Administration last year affirming its product’s status as Generally Recognized As Safe, BioVittoria has been aggressively going after the US market.

While dairy, juice drinks and water manufacturers are BioVittoria’s biggest market right now, soft drink, cereal, biscuits and confectionery companies have also expressed interest, the company’s VP of sales and marketing told FoodNavigator.

According to market researcher Mintel, new US launches of monk fruit-sweetened products for this year include two cereals from Kashi, a whey protein meal replacement drink from Biochem, Fruity Dophilus probiotic drink mix sachets and a table top sweetener from Swanson Health Products.

BioVittoria is currently working towards a regulatory submission for the European Union.