Food Business News - August 30, 2011 - (Page 9)

Editorial EDITORIAL STAFF Editor-in-chief Morton I. Sosland Executive editor, markets Neil N. Sosland Editor L. Joshua Sosland Executive editor Keith Nunes Senior editor, markets Jay S. Sjerven Managing editor Eric J. Schroeder Associate editor Jeff Gelski Assistant editor Ron Sterk Internet editors Allison Gibeson Erica Shaffer Graphic designer, market graphics, data Christina Sullivan MORTON SOSLAND Food itself plays major role in demand for food I PUBLISHING STAFF Chairman Charles S. Sosland Vice-chairman L. Joshua Sosland President and publisher Mark Sabo Associate publisher David DePaul G. Michael Gude Bruce Webster Vice-president, chief financial officer Melanie Hepperly Audience development director Don Keating Advertising manager Nora Wages Director of design services Sadowna Conarroe Circulation manager Judith Arnone Digital systems analyst Marj Potts Manager of advertising design Becky White Director of e-Business Jon Hall Director of on-line advertising and promotions Carrie Fluegge WE’RE EAGER TO RECEIVE YOUR FEEDBACK: E-mail or write to us at Food Business News, 4800 Main Street, Suite 100, Kansas City, Mo, 64112 n dealing with a plethora of negative as- presents a dramatic contrast between Italy sessments of the global economic out- and the Democratic Republic of the Congo. look, the temptation is great to embrace Italy has a population today of 61 million any positive sign. None is more welcome and Congo is 68 million. Projections for than evidence of market growth as measured 2050 show Italy’s population holding at 62 by that most basic of all statistics, the count million and Congo expanding its population of consumers. Here the attention is to global to 166 million. Annual births in Italy are numbers, in part because this year marks forecast at 560,000 and deaths at 590,000, another milestone, the milestone addition compared with 3,050,000 and 1,140,000 of one billion. For the food industry, hardly respectively, for Congo. The current annual anything is more important than consumer global gain stems from 139,558,000 births numbers. Equal weight ought to be assigned and 56,611,000 deaths to result in a natural to global market measures as well as hugely increase of 82,947,000. important supply-demand equations. These While people are the all-important force govern the cost of everything from process- behind demand, the Italy-Congo differences ing equipment to essential ingredients. What the food The global food situation has as much to do business needs to know is how best to balance recordwith population size as any other factor, indicating setting market expansion against the way this affects how food has become an important determinant of the costs of business. Thanks to studies by its own demand. the Population Reference Bureau, it may be stated that global population will reach 7 billion near the end of this year. As ought not be neglected. Indeed, the annual staggering as that may be, its significance natural increase rate near 83 million is made is magnified by this: “Today the world is up of 81 million in less developed nations and adding the largest numbers to the population 2 million in the more developed countries. Like in America, economic status hugely as in any time in history.” Such a statement may seem contrary to the declining annual influences food demand. That is why it’s population growth rate, to 1.2%, compared important to realize that the most rapid with more than 2% a few decades ago. population expansion is occurring among The simple explanation is that the current the poorest. At present, 48% of the world growth rate, with the downward trend nearly lives in poverty, meaning incomes below $2 universal, means adding 83 million persons per day. In India, which will become the most annually, whereas the same growth in 1930 populous country, ahead of China, by 2050, would have meant yearly gains of 30 million. 76% live in poverty. Yet, it is expanded urban The highest growth rate in history was 2.1% residency and the positive effect this exerts in the late 1960s and if that had held, the on incomes that spur birth rate declines. While economic advances and improved increase would be 117 million and today’s public health are hugely important population would be 8.6 billion. Achieving the seventh billion in 2011 took influences on population, it is fast growing 12 years, the same as the interval between urbanization and modern medicine that are 5 billion and 6 billion. Remembering that specifically credited with current trends. the first billion did not occur until 1800 and Often overlooked is the grand role food that 130 years were needed to reach 2 billion itself has played in influencing family size. in 1930 underscores the rapidity of current Modern processing and distribution have expansion. Looking ahead, the bureau says totally transformed the role of the family the record-breaking 12 years to add a billion in assuring food adequacy. In many ways, the global food situation has as much will likely rule in bringing 8 billion in 2023. Without exploring the wide diversity in to do with population size as any other population changes among continents and factor, indicating how food has become an countries, the Population Reference Bureau important determinant of its own demand. FBN August 30, 2011 FOODBUSINESS NEWS ® 9

Table of Contents for the Digital Edition of Food Business News - August 30, 2011

Food Business News - August 30, 2011
Web Contents
Editorial - Food itself plays major role in demand for food
Private equity group acquires Minnesota-based candy company
F.D.A. seeks more comments on phytosterols
MegaMex acquires Fresherized Foods
Nestle updates nutrition labeling system
OpenGate Capital to acquire Dean Foods facility
Walgreens launches Nice! store brand
Hormel Foods earnings up 15% in quarter
With charges, Heinz income down 6% in quarter
Consumers dissatisfi ed with frozen meal portions
Kraft cutting coffee prices 6%
California Pizza hires G.J. Hart as president, c.e.o.
Accountability at the heart of new food safety law
General Mills, Batter Blaster win G.M.A. innovation awards
Rowland acquisition boosts Smucker earnings
Coca-Cola, partners to invest $4 billion in China
July milk production up 0.8%
Washington - ' Fit for Life' bill targets childhood obesity
Soaring egg prices, egg products still rising
Health and Wellness - From digestive health to weight management
Ingredient Innovations - Tropical assistance
New Product Trends - Natural, low-calorie refreshment
New Food Products
INGREDIENT MARKET TRENDS - Statistics Canada forecasts record canola crop
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News
Feature - Hormel Foods earnings up 15% in quarter
Feature - Natural, low-calorie refreshment
Feature - Soaring egg prices peaking, egg products still rising

Food Business News - August 30, 2011