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Foreign portfolio investments

MORE FLIGHTY foreign capital entered the country in June on the back of investor confidence with legislative approval of the first tax reform package and “accelerated” net foreign buying at the Philippine Stock Exchange (PSE), the Bangko Sentral ng Pilipinas (BSP) reported yesterday. Read the full story.

Asia-Pacific economic outlook

Terrible labels, great wine: Six superb bottles hurt by bad art

By Elin McCoy, Bloomberg

YOU’RE standing in a wine shop, facing long shelves displaying hundreds of wines and trying to decide what to buy. Do you grab the bottle whose hip, clever label grabs you? If you’re like just about everyone, the answer is yes.

Face it: You know that’s not necessarily the way to get the best wine.

A wild label may be way more entertaining than the actual wine inside — overcompensating for it, even. And the liquid lurking behind an ugly label may be a fabulous red or white.

Of course, my idea of a terrible label may not coincide with yours. I assume those featuring cute animals, colorful trucks, little black dresses, or cheesy photographs of women’s legs are fronting for unsophisticated, easy drinking, generic plonk. Mostly, they are.

High octane Zinfandels are especially prone to shudder-inducing labels. Take Zombie Zin, which sports an image of a dark skull topped with spikes of red hair that would be perfect to kick-start a Hell’s Angels party. Or consider cheapie Plungerhead Old Vine zin with a Monty Python-esque label that must seem weirdly humorous to some.

A surprising number of great wines have stodgy, traditional labels. No one would give a design award to pricey Ch‰teau Lafite Rothschild’s low-key packaging, which features a dull 19th century engraving of the ch‰teau.

Still, for decades, wine labels everywhere aped European models: Bordeaux’s stately drawings of ch‰teaux, Burgundy’s simple lines of text, Italy’s crests and shields, Germany’s overstuffed landscapes.

Now there’s an effort to get arty, as if a work by a well-known artist is a tip-off to a pricey, serious-quality wine. Ch‰teau Mouton Rothschild was the first to commission a different artist each year to dash off something for the label, but the artist’s fame doesn‘t necessarily match vintage quality. A Picasso graces 1973, a notoriously bad year.

The latest idea is the whole-bottle design approach of the VIK winery in Chile for its recently released plush red, La Piu Belle. The bottle is encased in a sleeve of art created to interpret the wine’s name.

The underlying aesthetic of label images is not just “notice me”; it also is supposed to be a cue to the style, quality level, and yes, the cost of the wine inside.

At the Vinexpo wine and spirits trade fair in Bordeaux last month, I encountered some surprising labels, from a bottle of Provence rosé designed by a tattoo artist to an expensive champagne in a shiny, black, carbon-fiber bottle that took six days to create and looks luxurious in an ice bucket. In both cases, the package is better than the wine.

Here are six delicious wines that come in bottles with awful labels. No problem: Just serve them in decanters.

¥ 2012 Melka Wines CJ ($75): Philippe Melka is one of Napa’s top wine making consultants (Dana Estates, Gandona, Seavey, and 20 additional wineries). This deep, sumptuous cab blend is one he makes at his own estate, and it’s bursting with generous, dark fruit. But the wine maker’s eyes creepily staring out from the label seem to say, “Who are you to judge my wine?”

¥ 2014 Prisoner Wine Company Blindfold ($32): Last year giant wine company Constellation Brands bought Prisoner’s five labels for a reported $285 million. This one is a satiny white blend, mostly chardonnay and viognier, with honeysuckle aromas and fruit salad flavors. The lush taste is the complete opposite of the pain-and-suffering label, with a Goya-esque image of a blindfolded prisoner tied to a stake. How one can think positive thoughts about the contents after looking at it, I have no idea.

¥ 2014 Component Cabernet Franc ($145): Former super-somm Michael Hill Kennedy II, who managed wine programs for the Ritz Carlton restaurants in the Cayman Islands, founded this company in Napa in 2016. Most top reds in Napa are blends; Kennedy is a boutique negociant sourcing individual components of posh, cult brands and bottling them as 100% varietals. This one is smooth, scented, and seamless. But you’d never know it from the single smudge-dot label, which looks like a color test pattern for a malfunctioning computer printer.

¥ 2014 Ken Wright Cellars Savoya Vineyard Pinot Noir ($62.50): Wright is an Oregon pinot master, and this single vineyard bottling is one of his best: floral, spicy, with notes of cranberry, pomegranate, and leather. The woeful, depressing scene on the label shows winter pruning on the dark days of winter, but it makes me think of starving farmers during the Irish potato famine. Sad.

¥ 2015 Gut Oggau Timotheus ($60): This winery in Austria’s Burgenland, near the Hungarian border, makes elegant, lively, natural wines from biodynamically grown grapes. Try not to be turned off by the portrait on this white blend of grŸner veltliner and chardonnay, which to me resembles an aging portly sales manager. The Oggau estate has invented a fictitious family to express the taste personalities of its wines, assigning each wine a face, name, and story. Doesn’t work for me.

¥ 2015 Some Young Punks “Monsters Monsters Attack!” Riesling ($25): The contrast between this round, fragrant, spicy Australian riesling from the renowned Clare Valley and the kitschy, “scary” label is a total disconnect for me. The wine is far-higher quality than I would have guessed from the image, even if it has a zany hipster appeal. Don’t serve it by candlelight on a first date.

Book helps keep Pinoy culinary traditions alive

Book
What Kids Should Know
About Filipino Food
By Felice Prudente Sta. Maria
Illustrated by Mika Bacani
Adarna House, 63 pages

FOR MANY A harassed parent, it is so much easier to just rely on fastfood and prepackaged imported snacks when confronted with a picky eater. This convenience makes it a lot easier for the layers and nuances of traditional Filipino cuisine to be forgotten in kitchens that are frequently left unused as more families turn to takeout.

Luckily, The Mama Sita Foundation, an arm of Mama Sita’s Holding Company, Inc., commissioned a book last year called What Kids Should Know About Filipino Food, released in a new edition earlier this year.

The book hits two birds with one stone: the easy language used by food historian Felice Prudente Sta. Maria, along with interesting and accessible illustrations by Mika Bacani makes the rich, sometimes complicated web of Philippine food culture more palatable to children (and adults who might be approaching Filipino food later in life), thus making for an entertaining and mentally nourishing reading experience, as well as whetting the appetite.

The book begins as most Filipino meals do: with rice, where the parts of the omnipresent grain and methods for its cooking and consumption are explained. (A child should know how rice grain is turned into kakanin dough.) As an adult, I was quite surprised to read about some legends surrounding the rice grain, such as the Mandaya people’s belief that each grain had a soul, which meant that the planter cared for and respected each plant.

The book then moves on to easier concepts like Filipino favorites such as coconuts, mangoes, and bananas, carefully explaining each variety and each term, from what buko really is, as opposed to niyog (buko is a younger fruit), to the different shapes and sizes of each banana. Another useful guide is the illustration of fish eaten around the country, with English names, just perfect for following recipes from foreign cookbooks: never be confused again when explaining galunggong to foreign friends (that’s scad for you).

While the book explores Filipino food, it also explains the parts and processes in a traditional Filipino kitchen: for example, a pambilo is a rolling pin, and llaneras are both molds and baking pans. Examples of methods such as frying, steaming, and boiling are included here, and tiny bits of trivia are squeezed in short sidebars (such as information on the carved toothpicks and flamboyant pastillas wrappers still brought out at fiestas).

The latter sections also contain recipes straight from Mama Sita’s diary, as well as a food map showing the various regional cuisines of the Philippines: an excellent guide to those who can barely fathom the variety of Philippine culture (sometimes, these aren’t just children).

“We thought that this centennial edition would be a fitting tribute to Mama Sita, who in her lifetime, also kept a cooking journal, and was very close to her grandchildren. She would often tell stories of how it was like when she was growing up. And she was always eager to learn from the people she would meet. Even in her old age, she was always open to new ideas, new experiences,” said Cecille Nepomuceno-Gamad, information officer over at Mama Sita’s in an e-mail to BusinessWorld.

Remember, Mama Sita was a real person. She was one of the daughters of Aristocrat founder Engracia Reyes, before herself starting her own food empire specializing in sauces and condiments.

“Our homegrown recipes for many years have allowed countless people, whether in the middle of a hectic week or thriving in the farthest places on earth, to prepare their Filipino comfort food and cure their homesickness,” said Ms. Gacad. “We’ve received random heartwarming feedback from people saying how they survived being away from home, or being a new mother/cook because of our products. Many of the second generation Filipinos, the children of the diaspora, children raised by Filipina caregivers, grew up with nurturing meals prepared with our sauces. Making way for this cooking and sharing of Filipino food anywhere in the world is Mama Sita’s contribution to the preservation of Filipino food culture.”

She also discusses the doubts and worries we had mentioned above. “Young people today are continuing to write our history and we wish to bridge any cultural gap, pass on to them our heritage. The book is a good way to connect with the young minds. Before, when Mama Sita traveled abroad, she worried that her grandchildren might grow up not knowing Filipino food. That inspired her advocacy to promote Filipino food and make it accessible anywhere in the world. Everywhere she went, she cooked Filipino food for friends and other people. Our mission is to continue her advocacy in order to keep culinary heritage alive and relevant to the young people.” — Joseph L. Garcia

All in the family: Jolly turns 20

STROLL through any supermarket’s canned goods section and the familiar logo of Jolly will be there to greet you. Jolly is a brand by the Fly Ace Corp., which includes under its umbrella Doña Elena (a line of Mediterranean products such as olive oil) and Good Life, a brand specializing in pan-Asian products especially Chinese-style noodles. The company also distributes various international brands in the country, such as Mott’s, Welch’s, and wine brand Concha y Toro. According to its Web site, Fly Ace has 36 brands under its belt. On July 11, Jolly, its first brand, and proudly homegrown, celebrated its 20th anniversary with a grand dinner in Solaire’s Grand Ballroom.

At the event, Fly Ace President Lucio Cochanco, Jr., told guests about the beginnings of the company, the roots of which were established by his parents, Lucio Sr. and Ederlina Cochanco. They sold products such as rice and oil in a store in Binondo called Jolly General Merchandise. The younger Cochanco and his siblings took over in the 1980s. The operation expanded into Fly Ace Corp. in 1993, and in 1997, the company launched its first brand — Jolly — into the market, specializing in canned vegetables and fruits, a boon to home cooks everywhere fretting about where to get canned corn and mushrooms at affordable prices.

The name Jolly was coined from the nicknames of the Cochanco siblings (Lucio Jr., was known as Jun, while his brothers, Larry and Louie, gave their initials as well). Mr. Cochanco also has two sisters, Ellen and Elliz, who are very active in the company as well.

“Our parents taught us the values of integrity, discipline, and to have the entrepreneurial spirit in doing our business. This is the backbone of how we manage our brands and Fly Ace Corp.,” said Mr. Cochanco in a speech. “We only had one goal,” he said about introducing Jolly back in 1997 — “To offer a quality brand, at a reasonable price, make it accessible, in all the retail and food service channels.”

The company took the opportunity as well to introduce its new brand ambassador, noontime TV star Maine Mendoza (herself a Hotel and Restaurant Management graduate) who appeared on stage concealing her face with a pot lid. Asked if she consumed Jolly products herself, she said, “Yes. Sobrang okay niya kasi. Favorite ko talaga mushrooms. I use mushrooms for merienda — I eat it — lalo na kapag wala na akong work, ’pag gutom (It really agrees with me. Mushrooms are my favorite. I use mushrooms in my snacks… especially when I’m no longer working, when I’m hungry).”

While Jolly’s top products include canned mushrooms and corn (not to mention its dairy arm, Jolly Cow), it also has other canned vegetables such as peas, black beans, asparagus, straw mushrooms, water chestnuts, red pimientos, chickpeas, and tomato paste. The company also has a range of cooking oils, spreads, and canned fruits (peaches, lychees, oranges, and fruit cocktail). “We get our products from different sources,” said Abigail Ng-Reyes, assistant vice-president for marketing for Fly Ace Corp. She mentioned Thailand and Europe as sources, and most of the goods arrive in the country already canned (the products are canned right after they’re harvested according to a video shown at the event).

While Jolly has certainly proven the diversity of its product range, there’s a multitude of food out there just waiting to be soaked in brine or syrup and then canned. “That’s all in the pipeline. We want to make sure that we continue to innovate, but at the same time, provide new options that have better value… our goal is really to make it accessible and affordable to a wider set of [consumers],” she said. By this she means that in the coming quarter, the company is releasing a line of vegetables preserved in pouches (pouches being a cheaper alternative to metal cans).

The products are distributed nationwide, and when asked if they plan to export their products with the loosening of trade in the region, Ms. Ng-Reyes said: “I think right now, the immediate plan is really to concentrate and focus on the Philippine business and continue to grow penetration of Jolly into more households.”

In a way, Jolly has changed the local cooking scene in the country by making products like imported mushrooms and asparagus affordable and more readily available through more channels. “We would like to think that because of the products that we have put in the market, we were able to make cooking easier,” said Ms. Ng-Reyes.

“You don’t have easy access to these vegetables. Example: asparagus. It’s not very easy to access asparagus, but because we can it fresh from harvest, we make accessible for consumers to use.” — Joseph L. Garcia

Sunken Mediterranean treasure: a secret for better wine

SAINT-MANDRIER-SUR-MER, FRANCE — Divers scavenging in shipwrecks slumbering at the bottom of the North Sea since World War II were disappointed not to find dazzling troves of gold and jewels.

As consolation, not only did they turn up decades-old wine, but the wine came with a bonus: it was better than equivalent vintages selling for top dollar in luxury caves.

Among the latest to test the benefits of a deep soak are Bandol wine makers in southern France who teamed up with a dive school for a year-long experiment.

Choosing a tranquil section of a marine park off the Riviera, they submerged 120 bottles of Bandol wine to a depth of 40 meters (130 feet), leaving them there for a year.

Another 120 bottles were kept in a cellar for comparison purposes.

“It’s important not just to live long but to live well,” said Guillaume Tari, head of the regional wine association, Vins de Bandol.

Submersion in deep waters “preserves the acidity because there’s not much light, there’s absolutely no air, it’s relatively cool and the temperature is constant,” Tari said.

The underwater conditions — total darkness and constant temperature — are thought to initially accelerate the ageing process, adding complexity to the wine.

Over longer periods, the ageing process slows or stops altogether, making underwater storage excellent for conservation and explaining why shipwreck wine emerges so well.

Master sommelier Gisele Marguin took part in a blind tasting, comparing the underwater Bandols with the same wines stored in a traditional cave.

The underwater Bandol had “a nice texture in the mouth, a good structure, and notes of very ripe dark fruit… even chocolatey,” she said.

However its “secondary aromas are not sufficiently present” — suggesting that the wine would benefit from more time with Davy Jones.

“It’s a wine of the future,” she said.

“I think that this only can be done with great vintages. It wouldn’t be much use to submerge wines with a less promising future.”

‘THE MUST OF MUSTS’
The results of similar experimentation elsewhere in France — in western Brittany and in the southwest — remain largely confidential.

But Philippe Faure-Brac, who was named the world’s best sommelier in 1992, recalled: “Twenty years ago we had the privilege of tasting bottles of white — Sancerre and Pouilly — off the coast of Noirmoutier (western France) that were placed in oyster beds” for a few months.

They were “exceptional bottles in their complexity and conservation.”

The approach can be used with reds, whites, and roses, but Tari said red wines are especially enhanced by long submersion, calling the result “the must of musts.”

Faure-Brac noted that the technique costs more for the wine maker because of the extra time and logistics required.

“Lots of wine makers talk about it,” he said. “People in the spirits trade are also thinking about experimenting with cognacs and rums.”

So far underwater wines have not gone to market.

But Tari is optimistic: “Obviously if you can gain one or two decades (on the ageing process), it could be worth it.” — AFP

8-course Omakase at Nobu

NOBU MANILA at City of Dreams offers a special eight-course Omakase set dinner menu crafted by Nobu head chef Mike de Jesus for the month of July. The meal starts with an appetizer of Shrimp dashi jelly with Nobu’s signature cocktail sauce and caviar, followed by a platter of assorted sushi. The third dish is Norwegian salmon in Nobu salsa and salmon rose, while the fourth and fifth are Local tuna in shaved vegetable salad with spicy Ponzu dressing and seared Bay scallops with uni butter crust and grilled zucchini with roasted bell pepper sauce, respectively. The entrée is Umami marinated lamb chop with wasabi mashed potato and crispy shichimi onions in sweet ginger sauce followed by Shiitake mushroom soup with milk foam, negi and crispy enoku mushrooms. The meal ends with dessert, Iwai whiskey dark chocolate mousse with Kuromitsu brulee cream and ricotta cream. Priced at P5,400++ per person, July’s Omakase set menu is offered for dinner daily from 6 p.m. to 11 p.m. For inquiries and reservations, 800-8080, e-mail guestservices@cod-manila.com.

4 Japanese chefs

NEWLY OPENED fine bistro, Epilogue at S Maison mall fuses the dedicated Japanese approach with the fresh and vibrant flavors of a European style bistro. At the heart of Epilogue are four seasoned chefs namely Tomohide Ono, Hayato Mitsuhashi, Minoru Sorimachi, and Kenji Ishihara. Mr. Ono specializes in soft breads. Having worked in Tokyo, Hong Kong, and Jakarta, he now introduces his creations in Manila. Mr. Mitsuhashi’s expertise is pasta and Italian food, and is also into combining Italian ingredients with Japanese flavors while Mr. Sorimachi has turned teppanyaki into a performance art. Mr. Ishihara’s focus is French pastries. Epilogue is at the G/F, S Maison, Conrad Manila, Ocean Drive, Mall of Asia, Pasay City.

Mooncakes at Marco Polo

AS THE Mid-Autumn Festival approaches, Marco Polo hotels in the Philippines showcases special mooncakes to mark the celebration. As part of the cluster project of the Marco Polo hotels in the Philippines — Marco Polo Ortigas Manila, Marco Polo Plaza Cebu, and Marco Polo Davao — special mooncakes are available in Hou Yi (box of four), and Chang ‘E (box of six) gift boxes, available for P2,288 and P3,388. A discount of 15% will be given for a minimum order of five gift boxes from July 15 to Aug. 31. To know more about the hotels, visit www.marcopolohotels.com.

The Perfect Trio at Diamond

DIAMOND HOTEL Philippines’ Bar 27 has crafted three special cocktails — dubbed as the Perfect Trio — to spice up the months of July, August and September. For the whole month of July, the drink is Mystic Chill, a yellow cocktail topped with blue curacao and mint leaves with a Captain’s Morgan Rum base with notes of peaches, melon, and a squeeze of calamansi. August features Scarlet Heaven, made from ripe mangoes and melon, with a bit of rum and a dash of grenadine. September is for the chocolate lovers with Choco Fantasy. It’s a decadent treat with premium vodka mixed in. For inquiries and reservations, call 528-3000.

Tasting Circle’s Thai special

THE Great Women Cafee’s The Tasting Circle focuses on Indonesia on July 15 and 22, Saturdays, with seating at 11 a.m., 1:30 p.m., and 6 p.m. Seatings are limited to 14 people at P550 per head. Reservations can be made through 772-2433. Dine-in and take-out is available on July 13, 14, 20, and 21. The Cafee is located a the ground floor of the Tesoros Bldg., 1606 Arnaiz Ave. (formerly Pasay Rd.), Makati City.

DA places garlic import permits under Secretary’s direct control

AGRICULTURE Secretary Emmanuel F. Piñol said he has placed the issue of sanitary and phytosanitary (SPS) permits for garlic importers under his control to prevent cartels from dominating trade in the commodity.

Mr. Piñol said on Wednesday that he is also considering similar measures against meat and onion importers, noting that cartel-like behavior in these products cannot be resolved overnight.

Importers brought in only 19,000 metric tons of garlic in the six months to June, much less than the 70,100 MT they were expected to ship in.

“We will do a second review. We will validate all the lists of importers, some of whom may be fictitious,” he added.

For the second review, Mr. Piñol said the Department of Agriculture (DA) will deploy representatives from the agency to go directly to importing companies’ office addresses.

“We tried to screen this. We reviewed all SPS applications. It’s possible some made it through screening,” he added.

The department in November revoked all SPS permits for the shipment of agricultural products to validate the legitimacy of all importers.

The second SPS freeze follows Tuesday’s Senate hearing in which the DA was asked to explain the spike in the price of garlic that to P200 per kilo during the two months to May; since then the price has fallen to P120 per kilo as of June 4.

The Philippines fills some 93% of its annual garlic demand from Chinese and Indian imports.

The DA is aiming to boost domestic production of garlic to meet 50% of the country’s demand by 2020.

It plans to expand the land area planted to garlic by an additional 20,000 hectares, invest more in cold storage, and identify qualified farmers who can avail of a loan from the agency to plant the crop.

Mr. Piñol assured the public that the DA will invite new importers to raise current inventory levels.

“We have invited new players, and have received some applications. I have told some of them that if they apply, we will make sure they are approved.” Mr. Piñol added. — Janina C. Lim

PHilMech’s seeder prototype may boost onion farm income

MUÑOZ, NUEVA ECIJA — The Philippine Center for Postharvest Development and Mechanization (PHilMech) is hoping its 10-row onion mechanical seeder (10-ROMS) prototype will make farm operations more efficient and cost-effective.

“Onion farmers are faced with high seed and labor cost and the 10-ROMS seeks to address these problems,” PHilMech Science Research Specialist Domingo R. Miranda said in an interview at PHilMech’s demonstration area in Science City of Muñoz.

The 10-ROMS, which rides on a two-wheel tractor and requires one person to operate, is capable of discharging seeds at a predetermined rate, opening the furrow to the required depth into which the seed is placed, and dragging loose soil into the furrow to cover the seed after placement.

Farmers usually plant onion through direct seeding or transplanting, which are labor-intensive and more costly.

Mr. Miranda also explained that transplanted onions take four months to harvest, which increases the risk of exposure to pest and diseases. He said this was the experience of farmers who tried to plant onion in Bukidnon and General Santos City.

“The 10-ROMS does not only plant onions more efficiently but compared to the transplant method, it allows the onions to mature at a rate of 10-14 days, faster so the exposure to rain, pest and diseases is reduced,” he said.

Manual direct seeding, on the other hand, is capital-intensive as it utilizes more onion seed at 20-25 cans per hectare, and this method has been observed to be less productive compared to the methods practiced in other countries.

“PHilMech’s onion mechanical seeder expedites farm operations and effectively increases farm productivity through efficient seed distribution (at 11 cans per hectare) and maximize plant density per unit area,” Mr. Miranda said.

Farmers in Bongabon, Nueva Ecija, one of the country’s major producers of onion, have complained of high labor costs using the transplant method. They have also tried the direct seeding method using two-row equipment, which requires three operators, one to guide the machine and two to pull it across the field.

Mr. Miranda said onion farmers usually contend with labor shortages during the peak season for planting.

“Compared to the broadcasting (manual) method of direct seeding, the use of 10-ROMS can generate additional income of P60,839 per hectare due to the increased yield and reduction in cost of seed,” he added.

The cost of putting together the 10-ROMS prototype was P70,000, Mr. Miranda said, but they are counting on mass production to bring the price down. — Carmencita A. Carillo

Germans ditch pork as consumers go vegetarian

THE NATION that gave the world Bratwurst and hot dogs is cutting back on its favorite pork sausages and larding up plates with more veggie concoctions instead.

Germans last year consumed the smallest amount of pig meat since at least 2005, and the drop will continue in 2017, according to Agriculture Market Information Co. in Bonn. In Europe’s largest hog-producing and pork-eating nation, ham and sausage demand has dropped for at least three straight years.

Pork still accounts for more than half the meat eaten in the continent’s top economy, but it’s losing market share to poultry and beef and competing more with vegetarian options at shops and restaurants. The shift reflects changing German attitudes about healthier diets and climate-friendly, sustainable food production. There’s also been an influx of refugees who don’t eat pork.

“While there continues to be a lot of appetite for pork dishes, we adapt our menu,” said Christoph Wagemann, the head of procurement and controlling at the 167-year-old Zum Schluessel beer hall in Dusseldorf’s old town, which now serves a vegan “chili con soja” along with traditional meat sausages. “Bigger groups will always have vegetarians or vegans.”

Pork has a long history in Germany, which even boasts an entire museum dedicated to Currywurst — a cheap Cold War-era sausage that mixes meat with spiced ketchup. Domestic sausages come in more than 1,500 regional varieties, a vast majority of which are made with pork, according to the German Butchers’ Association.

EATING LESS
Total pork consumption in Germany has plunged 10% since 2011, to about 2 million tons last year, according to data compiled by researcher Euromonitor International. Over the same period, demand has increased in neighboring Poland, France and Austria.

On average, Germans ate about 36.2 kilograms of pork each last year, down from 40.1 kilos in 2011 and the lowest since AMI began tracking the data. The decline was so steep that it exceeds the increases for poultry and beef, which means overall meat consumption in the country dropped to 60 kilos, the lowest since 2006.

With consumers less enamored with pork, even traditional sausage makers are offering veggie options. The 183-year-old Ruegenwalder Muehle Carl Mueller GmbH & Co. KG now produces veggie schnitzels, hams and sausages such as a pea-protein Leberwurst, which is normally made of pig liver.

The family-owned company in Bad Zwischenahn, Lower Saxony, the heart of the German pig industry, says its meat sales fell 5% last year. But vegetarian and vegan products jumped by a third, accounting for 26% of total revenue. By the end of the decade, non-meat offerings should reach 40%, a company spokeswoman said.

Food companies also are making more ready-to-cook meals such as curry that use more chicken or beef, which is crowding out pig meat, according to Justin Sherrard, animal-protein strategist at Rabobank in Utrecht.

These days, one in 10 Germans shuns meat, up from less than one in a 100 more than a decade ago, the German Vegetarian Union estimates. More than 200 vegan cookbooks were published in Germany last year, almost double a year earlier, the Berlin-based vegetarian association estimates. The domestic meat-substitute market has grown on average almost 25% in the past five years, according to Euromonitor.

ANIMAL WELFARE
The appeal of pork has been hurt by recent animal-welfare scandals and disclosures that farmers raise pigs in confined spaces of less than a square meter. Almost 60 million pigs are slaughtered annually in Germany, mainly in Lower Saxony and North Rhine-Westphalia, according to the government statistical office. There also are increased concerns about processed meat after the World Health Organization categorized ham, sausages and hot dogs as carcinogenic.

“Pork has a bad reputation in Germany,” Matthias Kohlmueller, a livestock-unit manager at AMI, said by phone from Berlin. “Consumption is not growing.”

Environmental issues also play a role. Livestock generates about 14% of human-made greenhouse-gas emissions, the United Nations’ Food & Agriculture Organization estimates. Germany’s Environment Ministry no longer serves meat and fish at its functions “to set a good example as vegetarian food is more climate-friendly,” said spokeswoman Nina Wettern.

Another big influence on demand is the change in German demographics and eating habits after the arrival of about 1 million refugees. Most of the people who sought asylum came from Muslim countries where they don’t eat pork for religious reasons, including Syria and Afghanistan. That boosted sales of lamb, mutton and goat to an eight-year high in 2016, according to Euromonitor. More public canteens and schools have also been removing pork from menus.

There are attempts to address public concerns. German Agriculture Minister Christian Schmidt is seeking to establish a state animal-welfare label, including a premium degree. He has called for reinstating pork on school menus and has commissioned experts to make general proposals for “balanced daycare and school food.”

Meanwhile, in Dusseldorf, Peter Zodrow runs a vegan eatery that has seen its business boom. When he opened a decade ago, Zodrow was serving 50 guests a day and could hardly break even serving vegetable stews and curries. Today, the 48-year-old animal-welfare activist serves 1,000 customers daily at four branches in North Rhine-Westphalia.

One customer, Daniel Klager, 32, said he eats at the restaurant for ecological and animal-husbandry reasons. “I want to ease the climate situation a bit by my consumer choices,” he said at Zodrow’s eatery, called Sattgruen, which means “saturated green” in German. — Bloomberg

Australia enters medical marijuana market

AT a secret location in Australia’s southeast, Peter Crook delicately tends to a two-month-old cannabis cutting.

Barely knee high, it is one of about 50 government-sanctioned “mother plants” to be cloned for future generations of crops for the country’s fledgling medicinal marijuana industry.

“I think we’ll see Australia punch above its weight, both in agriculture research as well as medical technology,” says Crook, the chief executive of Cann Group Limited, the firm granted Australia’s first commercial grower’s license.

“As different conditions come online we are going to see the market grow rapidly.”

Following Canada, Israel, and more than half the US states, who through varying approaches have legalized medicinal marijuana, Australia has signaled its intention for a homegrown industry.

But a patchwork of regulations that guard access for many desperate patients, and a lack of confidence among doctors in prescribing the drug, are acting as impediments.

While recreational marijuana use remains illegal in Australia laws passed last year permit medical use, with a dozen licenses since issued, ranging from cultivation and research to manufacturing.

At least 10 sector-related firms have listed on Australia’s stock exchange, while tens of millions of dollars has been pledged for clinical trials investigating treatment for conditions including epilepsy and relief for the terminally ill.

Driven by a growing recognition of treatment for chronic pain, arthritis and migraines, the global market is estimated to reach $55.8 billion by 2025 with the US, Canada and Israel leading the way, US-based analyst Grand View Research says.

But unlike those markets, which have liberal patient-access, Australia has a “very conservative government” that wants a regulatory framework in place up front, says Adam Miller, founder of medical cannabis start-up BuddingTech.

“They’re doing things by the book so that when they have the evidence required to satisfy not only Australia’s but other countries’ governments, and medical bodies, they will be able to export those products to those countries,” he added.

Last year, researchers at the University of Sydney estimated a legal domestic medical market would initially be worth more than Aus$100 million ($75 million) a year.

Miller, who was drawn to the industry after researching alternatives for his seriously-ill mother, says unlocking the local market requires easing patient access and educating doctors.

But not at the expense of the pharmaceutical industry’s integrity.

“Any new products that are going to be distributed to a large number of patients need to go through the same mechanism that any other drug would go through, and cannabis is no different,” he says.

Doctors acknowledge the plant’s potential in palliative care, epilepsy and spasticity but remain guarded in its broader use, citing limited scientific proof.

“It’s been around since pre-history and if it was the panacea for a whole range of medical conditions it was claimed to be by some advocates, then we would have been using it for a long period of time,” says Australian Medical Association president Michael Gannon.

But for many, change is too slow.

Arielle Harding had her first epileptic seizure at 15-months-old. Suffering from about 100 a day, treatment with traditional drugs made things worse.

Her desperate parents recently tried small doses of Cannabidiol, or CBD, a non-psychoactive marijuana derivative in liquid form and Arielle, now five, shows few signs of her condition.

“At first we were just overjoyed that had happened but you also find that you get pretty angry pretty quickly, when you realize that we could have had this three years ago and what a difference that would that have made,” her father Tim recalls.

The legal CBD oil he purchases is not an elixir, but like thousands seeking cannabis treatment in Australia, Harding says he is unable to explore the drug further for fear of breaking complicated laws.

A 2015 Roy Morgan poll found more than 90% of Australians support legalizing marijuana for the seriously ill, but advocates say it struggles for recognition because of its “demonized” past.

“It is really important to realize that you can get the medicinal benefits from cannabinoids without necessarily being intoxicated,” says Iain McGregor, academic director at the University of Sydney’s cannabis research hub.

“We can actually pull apart the intoxicating recreational effects from the therapeutic effects, and again that allows doctors to prescribe with more confidence if it is a non-intoxicating cannabinoid.”

As attitudes change, encouraging more research, McGregor is optimistic about the plant’s potential “to produce incredible therapeutics for a whole range of diseases that are currently very difficult to treat.” — AFP

SMC eyes venture into electronics manufacturing

DIVERSIFIED conglomerate San Miguel Corp. (SMC) is now looking at expanding into electronics manufacturing, as it sees continued growth in demand for smartphones and other electronic devices.

“Nine years after our diversification, (it has been) very successful. So the next phase has to go into that third phase of our business which is to go into the next generation of electronics microchips,” SMC President and Chief Operating Officer Ramon S. Ang told reporters after the stockholders’ meeting of Top Frontier Investment Holdings, Inc. on Wednesday in Pasig City.

Top Frontier is the largest stakeholder in SMC with a total share of 66.14%.

Originally a food and beverage company, SMC started diversifying its portfolio in 2008, with forays into infrastructure, energy, and fuel and oil.

Ang diversification ng SMC magandang-maganda na. Tingnan mo ’yung Petron, oil refinery, petrochemical. Maganda na takbo, pati power business, infrastructure, tollway… gumaganda na. So next business ano ba maganda na malaki ang margin, malaki ang demand sa mundo?… Microchips, electronics,” Mr. Ang said.

The tycoon cited the electronics business of South Korean giant Samsung Group as an example.

“The third wave of expansion, if we can convert San Miguel into the next generation of electronics, similar to that of Samsung — microchips, tablets, smartphones, smart televisions. That’s our aspiration, how to go into the next one,” Mr. Ang said.

However, Mr. Ang declined to give a timetable for the electronics manufacturing venture, but noted this will be another leg of growth for the company.

By 2020, SMC targets to triple its net income to P150 billion, as it sees the completion of major tollway projects and finalizes payment for the purchase of three power plants.

Earnings of the conglomerate soared to P52 billion in 2016, 80% higher than the P28.99 billion it delivered a year ago.

For the first quarter of 2017, SMC netted P13.82 bilion, 2.13% higher than its earnings of P13.54 billion in the same period in 2016.

NICKEL PROCESSING
Mr. Ang also said that Top Frontier will be finishing the feasibility study for its $1.5-billion nickel processing plant by the end of this year. The plant, located in its Nonoc nickel mind in Surigao del Norte, will be able to produce 200,000 tons per year.

’Pag natapos dun, then ’yung technical and financial study, ’pag okay ’yung feasibility. Then we will go for financing,” he said.

While the company is banking on the feasibility of the project, Mr. Ang said they are concerned about the sensitivity of global nickel prices.

Titingnan ’yung sensitivity, at low price kung kumikita ’yun then tuloy,” he added.

On Wednesday, shares in Top Frontier closed 20 centavos or 0.07% lower from the previous trading day to P303 apiece, while San Miguel shares fell 30 centavos or 0.29% to close at P103 apiece. — Arra B. Francia