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April 1, 2008
Volume 8, Number 6

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Petfood Industry eNews.


AFB International, the maker of Optimizor®, BioFlavor®, and Enticer® brand palatants, sponsors your free copy of Petfood Industry Electronic Newsletter. AFB is the petfood industry's first choice for dog and cat food palatants. For more information, please visit our website at http://www.afbinternational.com.

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 » INDUSTRY NEWS
   Petfood Forum and Focus on Safety just two weeks away
You can still pre-register so you don't miss out on the best opportunities for expansion and how to lead them in your organization.  
 
Petfood Forum 2008 connects you with the people and information you need to continue to advance. This premier event for the petfood industry features plenty of networking opportunities, and exciting sessions such as:

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Petfood Forum 2008 connects you with the people and information you need to continue to advance. This premier event for the petfood industry features plenty of networking opportunities, and exciting sessions such as:

  • Complementary technologies - Professor Jean Bouvier
  • In-line nutrient analysis - Michael Myrick, PhD, University of South Carolina
  • Alternative petfoods: fallout from the recalls - David Lummis, Packaged Facts
  • Custodial care of ingredients - Ed Mareth, 3D Corporate Solutions
  • Global new product trends - Krista Faron, Mintel Custom Solutions
  • US regulatory report - Dave Syverson, chair of Pet Food Committee, AAFCO
  • The natural and organic markets - Brian Connolly, Castor & Pollux Pet Works
  • Nutrional management of canine hip dysplasia - Gail K. Smith, VMD, PhD, University of Pennsylvania
  • Covert marketing and detecting devices - Peter Gabriele, Armark Authentication Technologies
  • Treat palatability - Aurelie de Ratuld, PhD, SPF
  • Sustainability and carbon footprints - Colin Mair
  • Can raw petfoods prevent cancer? - Dr. Ian Billinghurst, BARF Australia
  • Private label petfoods: a global status report - Lee Linthincum, Euromonitor International
  • EU regulatory update - Thomas Meyer, FEDIAF
  • Petfood safety systems - Dr. David Rosenblatt, PDCA Training Solutions
  • Focus on petfood retailing - Lee Linthincum, Euromonitor International
  • Executive roundtable
  • Pet retailers speak
  • New product development ideas

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Every petfood company around the world is placing a renewed emphasis on safety and quality. The Petfood Focus on Safety symposium gives you an in-depth look at information you can't afford to miss:

  • Good purchasing practices - Dr. David Rosenblatt, PDCA Training Solutions
  • Introducing ISO 22000 - John Surak
  • Adverse event reporting and preferred vendors - Bill Bookout, president, National Animal Supplement Council
  • Crisis contingency planning - Fire Storm Solutions
  • Case study: Natural Balance - Frank Koch, Natural Balance Pet Foods
  • Finding the right insurance - Fire Storm Solutions
  • Consumer connections roundtable  

Register online at www.petfoodindustry.com/petfoodforum.aspx. For a full listing of this year's exhibitors, visit www.petfoodindustry.com/exhibitors.aspx.

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  As Chinese wealth rises, pets take on a higher place
Even though some Chinese still consume dog and cat meat, keeping pets has recently become very popular among the affluent in China. Spending on petfood and pet care products and services was worth an estimated US$870 million in 2008, according to Euromonitor International. That is up about 15% from the US$757 million spent in 2007. Spending on petfood and pet care is projected to reach US$995 million by 2009, up over 100% from US$463 million in 2004.
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In Beijing, Shanghai and Guangzhou, a growing class of the nouveau riche see pets - particularly dogs - as fashion items, dressing them in designer outfits, paying for spa treatments and dyeing their fur. In the days of Mao, pets were considered an unnecessary indulgence. Now cute dogs sold in pet shops are spared, while unlucky dogs continue to be sold at live animal markets as the main ingredient in dog meat stew, a traditional dish purported to have medicinal benefits.

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"In Beijing, there's a huge market with pitiful dogs waiting in cages to be sold as meat, and literally a few yards away standard poodles dyed in all colors of the rainbow," says Jill Robinson, chief executive of Animals Asia Foundation, an animal welfare charity based in Hong Kong.  

There were almost 11 billion pets in China in 2007, according to Euromonitor International, up from 10.8 billion in 2006. The bulk of these animals, however, are birds, fish and reptiles. China estimates it has 150 million pet dogs in the country, although statistics are scant as many pets are unregistered. Euromonitor estimates that there are 10.7 million cats in China. According to experts, the industry's potential in China is enormous as incomes rise and more of the country's childless couples see pets as less needy substitutes for children.

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Effem Foods in Beijing, a subsidiary of Mars Inc., claimed 53.8% of dog and cat food sales in 2006, according to Euromonitor data. Nestlé was in second with 17.7%, followed by Procter & Gamble with 1.7%. Nestlé has also recently set up a production site in Tianjin to be more competitive locally, a move some experts say may not be wise given the spate of food safety scandals in China.

 Growing numbers of international exhibitors at Interzoo
The Interzoo trade show, which takes place from May 22-25, 2008 in Nuremberg, Germany, will feature many more exhibitors than two years ago. The trade show is expecting more than 1,400 companies to exhibit at the world's leading trade show for the pet sector. The exhibition area is also being increased this year. The majority of the growth at this year's Interzoo stems from abroad, with a significant increase in exhibition floor space for China, India, Great Britain, Taiwan, Canada, the Netherlands, Denmark, Poland, Spain, France, the Czech Republic and the US.

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 Some petfoods still missing from shelves
More than a year after the recalls, though market sources such as the Nielsen Co. show US sales of wet petfood have rebounded, large pet retailers have a different experience to share and say many products are still not on store shelves. According to PetSmart, about 20% of recalled products, mostly wet foods, have yet to return and 10% have been discontinued altogether. While sales of dry food grow, sales of wet are still off about 25% from pre-recall levels, said Dave Bolen, chief merchandising officer at Petco. Both pet store chains say sales of dry petfood have fared much better, especially premium and natural brands, and both chains are devoting more floor space to these more expensive foods.

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Petfood makers of all sizes are working hard to tighten safeguards and boost consumer confidence. Nestlé Purina Pet Care, for example, no longer imports Chinese wheat gluten and also tests their wheat gluten for melamine. Premium brand Natural Balance not only tests finished products for melamine and other contaminants, but also publishes the results on their website. Companies also say they've stepped up audits of suppliers or stationed quality-control workers in foreign plants.  

A recent USA Today/ Gallup Poll of 574 pet owners showed that 30% had less confidence in the safety of petfood than before the recall; 46% had more confidence; and 17% had the same level of confidence.

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 Kemin acquires Brazilian palatant company
Kemin Industries Inc. has acquired controlling interest in Nord Palatabilzantes do Brasil, which will allow the Des Moines, Iowa, USA-based business to expand its global petfood palatant business into Central and South America. The deal, which was finalized last month, will change the legal name of the acquired company to Kemin Nord Palatabilzantes do Brasil SA.

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"The acquisition of Nord further accelerates our vision to improve the quality of human and animal life throughout the world," said Chris Nelson, president and CEO of Kemin Industries.  
 
Nord started production in February 2003 and has grown rapidly in sales of palatants to petfood manufacturers. Kemin will be responsible for the management of Kemin Nord Palatabilzantes do Brasil SA and will market new petfood products under the Palasurance brand to major petfood companies.

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 WATT launches EcoAgri.Biz
WATT has launched EcoAgri.Biz, a comprehensive, global and completely digital news product providing companies and individuals in animal agribusiness markets with practical sustainability advice and solutions. Link to the digital magazine at http://www.ecoagribiz-digital.com/ecoagribiz/200803/
 » MARKET DATA
Each month the Petfood Industry eNewsletter will bring you the latest market data available from several different sources including Euromonitor International, Packaged Facts, Information Resources Inc. (IRI) and ACNielsen.

Euromonitor  

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Cat food in Chile
As Chilean consumers become more concerned about what they are feeding their cats, they are more willing to pay a bit more for products that promise benefits like a more attractive coat or nutrition specially designed for the needs of older cats or kittens. There was a shift from basic economy brands to mid-priced brands and as a result, an increase in the average price paid.

Consumers are expected to become more aware of differences between brands and focus more on the benefits the products offer, especially in the mid-priced and premium segments. As a result, companies producing specialized formulas for different age groups (kittens, adult and mature cats) and health concerns (weight loss/maintenance, hairballs and urinary tract health) should reap benefits from investments in research and development.

Cats are expected to grow in popularity as pets, which should lead to retail sales for cat food to grow 4% CAGR in constant value terms to reach CH$40.3 billion (US$23.2 billion) in 2012.

http://www.euromonitor.com/Pet_Food_And_Pet_Care_Products?DCMP=AFC-petfoodemail

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 » PRODUCT NEWS
  Online bulk density measuring system
Source Technology has introduced its Bulk Density System to measure the bulk density of dry and wet petfood typically after the extruder. With the patented slim line system, the company guarantees weighing repeatability of ±4 gram/l (±0.5 oz/gal) on large size petfood. According to Source Technology, the accurate weighing repeatability of the system is, despite consistent information about actual bulk weight, also capable of controlling essential extruder parameters, moisture sampling, drying retention time as well as bag size volume control. The system is supplied with a control system, which provides a wide spread of information such as alarms for bulk weights non complying with specifications, trend curves, multi language selection and many more features. www.sourcetechnology.dk
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 Infeed technology palletizer
The VersaPal L2000, an automatic case palletizer from FleetwoodGoldcoWyard, has been updated. The VersaPal is engineered for versatility rates up to 40 cases per minute, and contains low infeed multiple layout configurations to make monitoring palletizing systems easier, according to the company. The VersaPal infeed and layer forming system also employs a cyclic infeed technology which is able to run a variety of columnar and interlocked patterns. www.FGWA.com

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 Detect Listeria with new system assay
DuPont Qualicon has released a BAX system assay that is used for Listeria detection. By using technology called reverse-transcriptase polymerase chain reaction to jump-start the reaction, results for testing are available within eight hours, claims the company. The BAX system also incorporates tableted reagents and optimized media in the detection of Listeria. www.qualicon.com

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 Horizontal bagging machine
The Bingo Bagger is an automatic horizontal bagging machine offered by Weighpack Systems Inc. The Bingo Bagger is equipped with PLC controls and is designed for pre-made wicket baskets of laminate or polyethylene materials. Working with a variety of bags like stand-up, re-sealable and handle, the Bingo Bagger runs at speeds of 30 cycles per minute and can fill a bag either manually or automatically. www.weighpack.com

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 » RESEARCH NEWS
 Balancing antioxidants
Further research should be conducted in order to fully explore the role of oxidative stress in health and disease. Yet, we can say that although oxidative stress is involved in the pathogenesis of many diseases, its complete annihilation may lead to even worse clinical effects. We have evolved and adapted to "symbiotically" leave with mitochondria and mitochondria-related persistent, yet low-grade, oxidative stress, which in turn may contribute to the physiological functioning of the cell. Thus, reducing oxidative stress to levels below the physiological threshold may trigger intracellular signaling pathways further damaging cellular machinery.  
 
This could represent a critical area for future scientific investigations, with tremendous social implications. Indeed, vitamin supplements are regularly taken all over the world because their prescription is just based on the media-driven assumption that oxidative stress is harmful for health and supplements are beneficial. However, when considering antioxidant therapy, it should be remembered that "more" not necessarily means "better".
 
Source: Laviano, A, 2007. Never underestimate the power of ROS. Current Nutr Food Sci, Vol 4, 2, p. 183.

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 Dog model remains essential
As a whole, biological research has recently shifted its focus from reductionism to holistic approaches to study complex systems, a strategy often termed "systems biology." Nutritional research has progressed similarly, incorporating phenotype, genotype, genomics and bioinformatics into an integrative molecular nutrition research model to study the impact of nutritional status on health and disease.  
 
Given the importance of livestock and companion animals as large animal models for humans, many of these genomes including that of the dog, cow, cat and chicken have been sequenced or are being sequenced by the National Institutes of Health (NIH). Ongoing projects to sequence the canine genome and create a SNP map, in addition to the phenotypic and genotypic similarities and unique breed structure of domestic dogs, continue to increase the experimental power of the dog model.  
 
While anatomical and physiological similarities have deemed the dog a useful model for gastrointestinal research for decades, economical and ethical concerns have recently decreased their use in this research field. This paper aims to reiterate the importance of the dog model in gastrointestinal research, including the study of prebiotics and aging on intestinal health, analyzing gene expression profiles to better understand intestinal diseases such as inflammatory bowel disease and performing whole genome association studies to identify genetic loci contributing to complex intestinal diseases.
 
Source: Swanson, K.S., et al., 2006. Canine nutritional model: influence of age, diet and genetics on health and well-being. Current Nutr Food Sci, Vol 2, 2, pp. 115-126.

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 » POSITIONS AVAILABLE

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--Animal Nutritionist

Trouw Nutrition USA is a leading manufacturer of unique feed ingredients, base mixes and premixes for the agricultural and companion animal nutrition industry. The company is part of the Trouw Nutrition International Business Group of Nutreco. Trouw Nutrition International is the leading European premix and specialty feeds supplier with extending global positions. Nutreco is based in the Netherlands and has operations in more than 25 countries. 

Due to our growth and commitment to meet our objectives in the United States, we are in constant search for talented people who aim to work in a challenging but supportive organization and be part of a global network of experts - experts with an entrepreneurial drive who put the customer first and take responsibility for the further development of our business.

Because of our growth scenario we are currently searching for an Animal Nutritionist. Main job responsibilities are to ensure all products are properly formulated, labeled and in compliance with applicable regulations, to ensure integrity and accuracy of customer formulas and to review formulas to ensure production efficiency with optimized formulation cost within customer and TNUSA guidelines.  Additional responsibilities include providing technical nutritional support for company personnel and customers.

 A minimum of a Master of Science degree is required with a PhD preferred along with experience working in a customer service environment.  Knowledge of AAFCO regulations is desired.  Preferred candidates will be goal oriented and possess excellent interpersonal skills and sound judgment.  Well developed written and oral communication skills are essential.  Appropriate computer skills in formulation software, word processing, spreadsheet applications and email programs are also essential.  Previous experience in the pet food industry would be helpful.

For consideration, please fax, mail or e-mail your resume with salary history to the attention of:

Animal Nutritionist Position

Trouw Nutrition USA P.O. Box 219

Highland, IL 62249 Fax: 618-654-3157

openpositions@nutreco.com


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» CONTACT INFO

To submit any information you would like us to consider for publication on our website, in the printed magazine, or in this newsletter, E-mail your information to Jessica Taylor Bond, jbond@wattnet.net.

Have questions or comments about what you've just read? E-mail the editor at editor@petfoodindustry.com or post your thoughts on the Petfood Industry discussion forums online at www.petfoodindustry.com.

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 » CALENDAR

For our Full Calendar of Events, please click on the provided link:


AFB International, the maker of Optimizor®, BioFlavor®, and Enticer® brand palatants, sponsors your free copy of Petfood Industry Electronic Newsletter. AFB is the petfood industry's first choice for dog and cat food palatants. For more information, please visit our website at http://www.afbinternational.com.

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