Australia drowning in a sea of imported and falsely labelled olive oil!

Coles management should be congratulated for its decision to offer 100% Australian-grown frozen vegetables (Weekly Times 9/5/2012). Food Industry Comment believes this exciting decision is very important to Australian vegetable producers, and will be welcomed by consumers.  

Food Industry Comment has previously discussed the Australian industry request of the supermarket majors to adopt the new Australian Standard AS5264-2011 for Olive Oil and Olive Pomace Oil, and we appreciate that Coles has already agreed to implement the Standard for its house brands.

Unfortunately the local olive oil industry continues to struggle to profitably market certified Australian Extra Virgin Olive Oil (EVOO) in what is a veritable sea of imported olive oils, of which as much as 70% is found to be misleadingly (if not fraudulently) labelled, and out of specification in terms of compliance with AS5264-2011.

The latest round of independent testing of olive oil commissioned by the Australian Olive Association (AOA) has identified continuing and Major Breaches of the Australian Standard by many of these imported olive oils, and disappointingly the odd (non-certified) Australian brand.

NOTE: Major Breach:  Oils that significantly fail the specified chemical tests and/or organoleptic tests, as well as label designations (i.e. using the words, pure, light & extra-light, which are misleading for consumers).  The oils that would fall into this category are:

Oils falsely labelled as Extra Virgin Olive Oil

15/03/2012	Aigeon oil	Independent Store
15/03/2012	Always fresh Australian	Supermarket
15/03/2012	Bertolli	Supermarket
15/03/2012	Borges	Supermarket
15/03/2012	Carapelli Firenze	Food Services
15/03/2012	Carbonell	Supermarket
15/03/2012	Dante	Supermarket
15/03/2012	La Espanola	Supermarket
15/03/2012	Pietro coricelli	Supermarket
15/03/2012	Pietro Salvo	Food Services
15/03/2012	Romanella	Independent Store
15/03/2012	Vetta	Independent Store
15/03/2012	Woolworths - Home brand	Supermarket

Several of the above oils in the ‘EVOO’ category were also found to have degraded to ‘Lampante’ quality (not fit for human consumption without further refining).

Oil falsely labelled as ‘Olive Oil’

15/03/2012	Always Fresh Olive Oil Spanish pure	Supermarket
15/03/2012	Carbonell extra light	Supermarket
15/03/2012	Casa Barelli	Supermarket
15/03/2012	Colavita 100% pure	Independent Store
15/03/2012	Homebrand Spanish Extra Light	Supermarket
15/03/2012	Lupi extra mild	Supermarket
15/03/2012	Lupi olive oil	Supermarket
15/03/2012	Vetta 100% pure	Independent Store

All of the above oils in the ‘Olive Oil’ category were organoleptically determined to be Rancid. All of their labels used words such as Light, Extra Light, Pure etc which are not supported by the Australian Standard as they are meaningless and yet confusing terms for consumers.

Rancid food oil forms harmful free radicals in the body, which are known to cause cellular damage and have been associated with diabetes, Alzheimer's disease and other conditions. Rancid oils can also cause digestive distress, diarrhoea and deplete the body of vitamins B and E. Free radicals can cause damage to DNA, accelerate aging, promote tissue degeneration and foster cancer development.

In stark contrast natural Extra Virgin Olive Oil is rich in natural antioxidants and vitamins such as alpha-tocopherol, o-diphenols and other phenolic compounds. In-depth research has demonstrated the action of these antioxidants in slowing down ageing and cell degeneration. The natural extra virgin olive oils have been shown to have much better positive heart health outcomes than refined olive oils in studies such as the Eurolive Study 2009 that recommended a daily intake of 25 ml of virgin (un-refined) olive oil for all adult humans for its preventative effects on heart disease. 

Given these positive health outcomes for true extra virgin olive oils and the contrasting negative outcomes for lower grades and rancid products:

1) consumers need clear labelling to enable them to chose between grades (not ‘light’, ‘pure’ and ‘extra light’ for low grade refined olive oils and

2) low grade products masquerading as healthy natural olive oil should be removed from the shelves.

This is the purpose of AS 5264-2011.

The question therefore needs to be asked as to if and when will Coles take the lead in implementing AS 5264-2011, and thereby providing consumers with the opportunity to identify and select natural EVOO from a sea of fraudulently labelled and unhealthy products (mostly imported)?

If they do so, both Australian consumers and olive oil producers will be very grateful.

Australian Fruit Juice Standard Needed

According to consumer advocate group CHOICE the convenience of poppers no substitute for the real thing:

"Parents should think twice before packing juice poppers (also known as juice boxes) in their children’s lunchboxes, due to their high sugar content and large serving sizes.
The people’s watchdog compared the percentage of juice, sugar content, serving-size, vitamin C, additives and price of 100 popper varieties and found a quarter contain 25% or less juice.

Fruit drink poppers Golden Circle Pineapple and Golden Circle Sunshine Punch, for example, each contain more than six teaspoons (30.5g) of sugars in a 250mL pack.
“Poppers definitely offer lunchbox convenience but many are packed with added sugars and deserve the status of a treat. While the 100% juice poppers can give you valuable nutrients such as vitamin C and folate, they don’t have the fibre of fresh fruit,” says CHOICE spokesperson Ingrid Just.

CHOICE also found the serving sizes of many of the poppers to be confusing. Seventy five of the 100 poppers tested were 250mLs or larger. Dietary guidelines define a serve of juice as 125mL.

“Many popper boxes offer a double serve which makes it easy for children to end up drinking more juice and more associated kilojoules and sugars, than what is generally recommended,” says Ms Just.  

Having water and a piece of fruit is ultimately more nutritious than juice, but if it’s convenience you’re after CHOICE recommends choosing poppers with no added sugar and with minimal kilojoules.

Poppers such as Popper Juice Apple (125mL), Popper Juice Tropical (125mL), Just Juice Orange (200mL) and V8 Original (250mL) are reasonable options as they deliver 340 kilojoules or less per pack - roughly the equivalent of a medium apple or orange.

CHOICE says that parents who are concerned about artificial additives in fruit drinks should check the nutritional label before buying.

Access the full report on juice poppers here.

Food Industry Comment believes what is needed is an Australian Standard for real fruit juice - consumers need to have certainty when selecting fruit juice products that they are getting the genuine product.  The Australian Government and Citrus Australia Ltd have both failed citrus growers and consumers by allowing the current plethora of fraudulent juice based products - complete with misleading labels on supermarket shelves - turning what should be a health enhancing products into unhealthy junk drinks, and in the process decimating the Australian citrus industry as imported juice concentrates of questionable quality displace fresh wholesome Australian citrus juice. Consumers are being duped - shame shame shame!

The same scenario could play out in the Australian olive industry as cheap imports of refined and adulterated olive oil masquerade as  Extra Virgin Olive Oil (EVOO).  This is why the Australian Olive Association (AOA) has worked  so hard to implement an Australian Standard for olive oil that is supported by an industry code of practice and a certification logo Australian Extra Virgin(R) that provides consumers with a guarantee that products carrying this logo are both 100% Australian and EVOO.  A list of certified brands by state is also posted on the AOA website.

AOA is also commissioning extensive testing of both Australian and imported olive oils through independent laboratories to identify fraudulent oils.  This testing information is routinely provided to the ACCC - all that is needed now is for the ACCC to take action against those importers whose fraudulent products falsely claim to be EVOO.

It would also be helpful if supermarkets had the moral fortitude to refuse to stock any product that independent testing has found to be fraudulently labelled to deliberately confuse and mislead consumers.

The Australian citrus industry could learn a thing or two from Australian olive producers!

FUTURE DIRECTIONS FOR THE AUSTRALIAN HERB AND SPICE INDUSTRY - SEMINAR REPORT

The Australian Herb and Spice Industry Association Ltd (AHSIA) recently convened a future directions seminar, held in Ballarat, Victoria on Wednesday 18^th April 2012.

According to AHSIA President Robert Hayes, “The seminar showcased innovative herb and spice business models across a range of sectors from culinary to (complementary) medicinal crops; from protected cropping to organic, and field grown production.” 

The seminar program featured the following panel of informative speakers:

·         Robert Hayes, is AHSIA President and a Director of Northern Rivers NSW based glass house herb producer FreshZest Pty Ltd, spoke on “Taking stock and future challenges for the Australian Herb & Spice Industry” (Text);

Robert outlined the development of both the culinary and medicinal herb and spice sectors in Australia over the past 40 years expanding from its initial base of a few seasonal product lines (predominately curly leaf parsley) to the more than 100 product lines widely available today - both fresh and processed, with many more crops new to Australia in the pipeline.  He emphasised the continuing need for research and development to meet pest and disease control and government regulatory requirements, as well as market development funding to fully capitalise on the potential of these crops.  This will require industry participants to invest in the future of their industry.

·         Jan Vydra, is a Director of Mornington Peninsula based herb producer Australian Fresh Leaf Herbs, and 2011 Australian Young Farmer of the Year (among other accolades), spoke of his industry experiences as “A new face and a different way” (Text);

Jan (pronounced Yarn) takes us on his journey as a young and enthusiastic businessman establishing a new fresh herb business, forging strategic partnerships and developing innovative business systems to address the many challenges he identifies in developing a branded product that can deliver on consumer expectations.

·         Andrew Drummond, is Managing Director of major Sydney Basin based field grown and hydroponic herb producer Barden Produce, presented “The Barden Produce story” (PowerPoint);

Andrew explains how Barden Produce as a vertically integrated production, processing, distribution and marketing enterprise has invested in technology to increase its productivity and remain competitive in what is a very tough business environment; now with fewer growers, increased production, greater supply chain transparency, with a focus on product quality, and on-farm value adding.  “Company owned packinghouses are not hospitals!”

·         Michael Brouwer, is an innovative Maldon, Victoria based organic dried herb producer, processor and distributor Southern Light Herbs, spoke on “Going Organic” (Text to be posted when available) and (PowerPoint);

Michael presented an alternative business model of sustainable farming, mentoring a network of 60 small scale certified organic growers.  Organic producers have a closer relationship with consumers, organic product price is not linked to world price. Key features of organic herb farming include the production and use of compost made from carefully selected ingredients, enhancing natural systems, labour intensive, hand harvesting, close attention to quality. 

·         Ben White, CEO of New Rural Industries Australia (NRIA), presenting on “New rural industries - new business directions” (PowerPoint);

Ben explained the vision of NRIA is for profitable and sustainable new and emerging Australian rural industries, which are strongly connected into markets and regional economies.  The Australian Herb and Spice Industry Association is a member of the NRIA alliance of new rural industries; which aims through education, coordination, and cooperation to create an environment for the development and capacity of new, innovative, Australian rural industries.

·         Professor Ian Brighthope, of Nutrition Care Pharmaceuticals Pty Ltd, presenting on “A proposal for a home grown safe antidepressant in Australia” (Text) and (PowerPoint).

Professor Brighthope describes the huge and growing market for antidepressant across the world.  In Australia in 2009 some 1.5 million people were on antidepressants at a cost to the Government of $300 million.  The entire antidepressants market worldwide is estimated at $12 billion per annum!  A review of clinical trials involving more than 5,000 patients concluded that extracts of St John’s wort has similar efficacy to standard antidepressants, with less side effects.  St John’s wort is a declared noxious weed in Victoria.  Subject to addressing various regulatory issues, commercial production of this plant could become a new industry in Australia.  Nutrition Care is interesting in working with the Australian herb and spice industry to develop this new opportunity.  Similarly ‘curcuman’, the active ingredient of Curcuma longa (Tumeric), has demonstrated analgesic properties and is clinically proven for the symptomatic relief of pain and inflammation of arthritis while effectively inhibiting factors that cause cartilage degeneration – another new Australian spice industry?

The seminar concluded with a panel discussion facilitated by Peter McFarlane of McFarlane Strategic Services, providing a platform for discussion of new opportunities, challenges and future directions for the Australian Herb and Spice Industry.  Key themes include:

·         Working together – strategic partnerships, grower networks and associations; the need to manage supply chains, need to co-invest in R&D and market development, to meet regulatory requirements and develop full industry potential; New Rural Industries Australia has formed to assist new and emerging industries to address common issues and explore new opportunities;

·         Productivity and efficiency – herb and spice enterprises are investing in technology and building to achieve a critical mass, taking costs out of the system to remain competitive in the market place;

·         Regulatory challenges – the ongoing review of chemicals used by both conventional and organic producers, and the need to develop bio-control options; food safety issues including the current FSANZ Proposal P1015: Primary Production & Processing Standard for Horticulture, that includes micro-greens and fresh herbs; as well as emerging environmental sustainability requirements;

·         Consumer trends – the popularity of various ethnic cuisines and the growing influence of the TV cooking and food programs in driving consumer purchases;

·         Going organic – with the high Australian dollar currently dampening export opportunities, and making imported foods cheaper, the “cost : price” squeeze is making life very tough for Australian producers – in particular for those larger enough to have contracts with the major supermarket chains.  One strategy for smaller producers is going organic, and going direct to consumers to achieve a higher margin for their product.

·         Quality – with product sourced from multiple suppliers the challenge of achieving consistent high quality products to deliver on consumer expectations; the imperative of herb and spice businesses having a HACCP food safety plan.

·         Emerging opportunities - with new (to Australia) herb and spice crops – both culinary and medicinal, many of which have demonstrated bio-active properties.  This may see a convergence of the culinary and medicinal herb and spice sectors with culinary products that have complementary medicinal or nutraceutical properties. A growing middle class in Asia also presents new export opportunities (when the value of the $Australian falls.)

ENDS

This report and the speaker presentations can be downloaded from the AHSIA website: www.ahsia.org.au