Corn prices are stable, other cereals gather speed and move up; Will consumers pay more for food safety ?

Corn prices are stable, other cereals gather speed and move up

Corn prices on the average notched up a bit ending about $0.70 (Rs.30) per MT higher than last weeks $128.5 (Rs.5700) per MT. The local delivery prices are still higher and ruling at Rs.6700 ($152) per MT. The prices a similar to last years price of $128 (Rs.5700) per MT during this period. The prices would have been higher, had there been no episode of Avian Influenza in India, causing slowdown in the corn demand.

It is felt that the corn demand is likely to come back, as the prices of chicken are gradually improving and placements of chicks in all states except Maharashtra is happening. It will still take some time for the consumption to come back to normal. The gap in demand and supply will be seen by end of June 2006, and the prices are likely to rise further.

With a very harsh summer being forecast and a likely lower than normal monsoon, corn crop in the rain dependent area will be affected, thus fuelling speculation and causing spurt in prices in the lean season.

Pearl Millet prices also increased by $7 (Rs.315) per Mt over last week and are also higher by $7 per MT (4.79%) over last year’s prices.

Sorghum (Jowar) prices though are higher by $4 (Rs.175) per MT over last week, they are $15 (Rs.665) per MT (8.33%) lower than last years price of $180 (RS.8000) per MT during April last week.

Barley prices have also moved up by $5 (RS.225) per MT over last week and are higher by almost $25 (Rs.11000 per MT over last years prices, indicating a short crop.

The price of corn on CBOT was up by $0.77 per MT over last week. May 2006 delivery closed at $93.67 per MT.

As Government has not been able to fill its godowns with the required wheat for Public Distribution System (PDS), reports indicate that the procurement will be much lower than the last year’s procurement of 14.8 MMT. Government of India has cleared decks to import another 3 MMT of wheat. Prices of wheat in the future markets have already touched Rs.10,000 ($225) per MT and traders are anticipating a higher price.

Will consumers pay more for food safety ?

When this question was asked to the American public, 84% responded that they will be willing to pay $270 (Rs.12,000) or 5% more every year, if food borne illnesses could be reduced by 50%.

A survey carried out on behalf of the Food Safety Policy Centre by Institute for Public Policy and Social Research at Michigan State University (MSU), took the pulse of a pubic at a time when regulatory action is focused on increasing the safety of the food chain.

Recent trends in global food production, processing, distribution, preparation and need for convenience foods is creating an increasing demand for safe food. It is also vital to have a food safety research in order to ensure a safer food supply. As per World Health Report of 2006, food and waterborne diarrhoeal diseases are leading causes of illness and death in less developed countries, killing approximately 1.8 million people annually, most of whom are children.

Outbreaks of food borne disease attract media attention and raise consumer concern. However, cases of food borne illness occur daily in all countries, from the most to the least developed. As most of these cases are go unreported, the true dimension of the problem is unknown.

The latest data from Center of Disease Control and Prevention, indicates that food borne illnesses kills 5,000 people a year in US. About 325,000 people go to hospital each year for a food-borne illness. This is based in estimates from the surveys conducted earlier.

Reports also indicate that the new regulations and systems have reduced the incidence of E Coli, Listeria in the US.

Everyone in the food system, from producers to preparers, must be vigilant in controlling microbiological hazards. Accordingly, food safety experts are stepping up calls for education about safe food handling because of the following factors that make controlling foodborne pathogens particularly challenging:

Lessons in 4C’s + S & T are a must. Check, Clean, Cook, Chill, Separate and Throw.

Check if the meat or food is in proper condition when it is purchased
Clean all surfaces and utensils before and after the cooking. Clean fruits and vegetables before consumption.
Chill it if you wish to use it later
Cook it properly – at stipulated temperature
Chill all leftovers and reheat when you wish to consume
Separate cooked and raw food, specially raw meat and vegetables etc
Throw if in doubt

Educating consumers will help in establishing a rapport with the consumers and winning their trust, which is vital.

Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com

April 29, 2006