World Cashew Convention Dubai 18 th20 th Feb

World Cashew Convention Dubai 18 th-20 th Feb 2016 Quality & Food Safety Challenges Encountered by Value Added Manufacturers while buying Cashews Kernels In India 2/19/2106 Copyright VKC NUTS 1

Presentation Roadmap 1. About VKC Nuts 2. Present Cashew Scenario in India 3. Changing Consumer Expectation 4. Challenges Faced 5. Suggestion/Improvements 2/19/2106 Copyright VKC NUTS 2

FULLY INTEGRATED PROCESSING PLANTS State of the Art Processing Plants 1. Multi Location & Multi Product Processing Facilities. 2. Equipped with Laser Sorter, Graders 3. In House Cold Storage at all Location. 5. Special Equipment for Flavoring, Roasting, Dicing & Slivering. 6. Modified Atmosphere Packing House. 7. Fully Equipped Quality Control & Product Development Lab. 2/19/2106 Copyright VKC NUTS 3

Cashew, The Much Loved Nut…. COMMANDING OUR STRATEGIC FOCUS • A Major Buyer Of Cashews Today • Have Built Sizeable Scale In Ø Retail Segment Ø Institutional Segment • Introduced Multiple Flavors Ø A Big Hit With End Consumers • Customisation For Large Institutions ØDeveloping Variants Suiting Their Needs 2/19/2106 Copyright VKC NUTS 4

Present Cashew Scenario - India • • • 2/19/2106 Huge Increase In Capacity Multi Location Processing Centers Newer Technology In Processing Lower Percentage Of By Products Like Brokens Production Efficiency Copyright VKC NUTS Copyright 2016 Nutraj 5

Changing Consumer Expectations Then 2/19/2106 Now Copyright VKC NUTS 6

Changing Customer Expectation Then 2/19/2106 Now Copyright VKC NUTS 7

Changing Customer Expectation Then 2/19/2106 Now Copyright VKC NUTS 8

New customer needs 2/19/2106 Copyright VKC NUTS Copyright 2016 Nutraj 9

Food Safety Concerns • • 1. FSSAI is becoming very strict 2. Legal metrology 3. Health Claims 4. Customer Claims 2/19/2106 Copyright VKC NUTS 10

CASHEWS - CURRENT CHALLENGES AS SEEN(EXPERIENCED) • LACK OF STANDARDISATIONEvery Processing Unit has a different definition e. g. • WW 240 • W 240 i • SW 240 • P 240 • D 240 Even Different factories of same supplier has quality variations 2/19/2106 Copyright VKC NUTS 11

Current Challenges. . Contd • Irregular Pricing Structure • Offered prices are always in per 22. 68 KG(50 Lb) format • Sale price in per KG format • Packing/Invoicing in per 20 KG packs 2/19/2106 Copyright VKC NUTS Copyright 2016 Nutraj 12

2/19/2106 Copyright VKC NUTS 13

Cashew - Packaging An Area Of Concern • Tin Packing Although Nitrogen flushed we do get an infestation issue in 2 out of 100 TINS in almost all lots We still get some solder contamination i • Moving from TINS to Vacuum Packs is a Welcome Step • However 22. 68 KG or 20 KG Vacuum Pack is not the ideal size to handle • Issues in Transit o Rough handling by Typical Indian transit Labour force o Breakage of Cartons and Contents inside o Leakage of Vacuum 2/19/2106 Copyright VKC NUTS 14

Packing Concerns Contd Palletised in Container 2/19/2106 Handled by Labour Copyright VKC NUTS 15

Packing Concerns Contd 2/19/2106 Copyright VKC NUTS 16

Suggestions • Switched to 5 KG X 2 Vacuum Packing in Walnuts for Institutional & Exports Replicating in our packs of Cashews for Institutional Packs Advantage o Easy to handle o Less Breakage o Replicated 2/19/2106 Copyright VKC NUTS 17

Thank You 2/19/2106 Copyright VKC NUTS 18