Food safety, environmental friendliness and sustainability are the current mega trends of the international food and beverage industry. International incidents Recent international incidents involving food contamination in developed countries have provoked governments and consumers to demand increasingly higher standards of food safety. The outbreak of E. coli in Japan prompted a searching appraisal of not only food itself but the food distribution system as well. The outbreak of "mad cow disease" in the UK in 1996 provoked an even bigger international reaction. Beef consumption dropped in the major markets of the world, including Asian markets not supplied from Europe. A recent survey conducted by Project 98 in five of New Zealand's major food markets revealed food safety as being the prime concern of purchasers for retail organisations, government agencies and lobby-groups, those people who had a significant decision making capacity into what products found their way to retail shelves. People in affluent countries, in particular, are becoming increasingly concerned that the food they eat and drink will not detrimentally affect their health. Environment Environmental "friendliness", while seemingly well below food safety in consumer preference, is nevertheless becoming a mainline issue and indications are that it will become more important. This is especially true in countries where environmental degradation has impacted strongly on the social conscience. Germany and Japan appear to be particularly sensitive. The commercial response to environmental issues has been varied. Some companies continue to make claims which either cannot be substantiated or are simply misleading. The term "greenwash" has entered into the lexicon. Other companies are making genuine efforts to ensure their products do not impact adversely on the environment. Governmental responses have been equally varied. Those with active consumer lobbies have moved quickly to clamp down on misleading claims through legislation. Others, with strong producer lobbies are equally active in exploring the possibilities of using this issue for a fresh wave of trade protectionism. Food safety International markets are demanding higher standards of food safety and some are currently paying a premium for "clean and green" differentiation. Considerable anecdotal comment has been made on market opportunities offering substantially increased returns for "environmentally sensitive" products. There is some evidence of higher returns for certified organic products in Germany and Japan. The counter balancing point is that there is evidence of organic products losing their initial premiums in the United States and the United Kingdom. Most informed commentators believe that the importance of "clean and green" is more a case of developing customer recognition of New Zealand as a producer of "safe" food, than seeking a price premium. In this respect organically certified product is very useful in helping establish a superior image. Debate continues on whether consumer dem...
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