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Noodle summit to cook up agenda for the next century

Noodle summit to cook up agenda for the next century

The world's major instant noodle manufacturers are gearing up
to face the demands of a new millennium with the opening on
Thursday of the Second World Ramen Summit in Denpasar, Bali.

Grouped in the International Ramen Manufacturers Association
(IRMA), the companies will gather at the International Convention
Center at the Nusa Dua Resort to discuss improving the
marketability and quality of noodles, already a staple for many
of the world's peoples.

The event is organized by the Indonesian Food and Beverage
Association (GAPMMI) and the Indonesian Marketing Association
(IMA).

Nine companies -- among them Campbell Soup Company,
Indonesia's Indofood, industry pioneer Nissin and Nestle S.A. of
Switzerland -- founded IRMA two years ago in conjunction with the
Japan Convenience Food Industry Association. The first summit was
held in Tokyo, Japan.

About 135 participants, including founding members Indofood --
the world's largest noodlemaker -- Nissin and Nestle are
scheduled to participate in this year's summit.

A keynote address will be delivered by Momofuku Ando, the man
credited with inventing instant noodles. Mr. Ando, now in his
90th year, is the head of the board of directors of Nissin Food
Products Co. Ltd., the company he founded in 1948.

The choice of Bali is particularly appropriate because
Indonesia is second only to China in demand for, and production
of, instant noodles.

'Halal' Standard

On the summit's agenda will be submission of the halal
proposal to Codex Alimentarius Standard, the Rome-based body
which sets global food product standards. It operates under the
Food and Agricultural Organization and World Health Organization.

The latter is currently drafting international hygiene and
food standards for noodles.

It is of particular concern to Indonesia's more than 200
million population, roughly 90 percent of which is Muslim, which
must take pains to ensure the elements of their diet have been
prepared in accordance with lawful Islamic principles.

The ramen summit's halal proposal has been warmly welcomed by
the Muslim community, including Aisjah Girindra, director of the
Indonesian Ulemas Council's Food, Drug and Cosmetics Research
Institute (LP POM MUI).

She recounted that many Indonesian Muslims traveling abroad
were often at a loss on what to plump for on a menu. They fear
that ingredients may contain hidden pork products or other items
deemed unfit for their consumption.

"We often hear stories of our students in Japan or Europe who
are confused about what to eat because there are no halal labels,
even on noodles," Aisjah said at a news conference on the summit
held last week in Jakarta.

"Pork fat may be contained in some of the additional
ingredients, like in the seasoning packets," Aisjah added.

She said halal certification would give Muslims peace of mind
in making their food choices -- and not just when they are
traveling abroad.

"Except for noodles produced in, say, the Middle East, up to
now, we have never been secure about whether the noodles, even
ones produced locally, are halal, unless they have the label,"
she said.

"The Codex standard would allow us to know that the noodles we
consume are acceptable according to our religion. That would make
us all very happy."

Halal certification would allow inspectors from groups such as
the Indonesian Ulemas Association to make random inspections of
factories to ensure they conformed to the practices.

F.G. Winarno, technical adviser of Codex General Standard for
Instant Ramen, explained that setting a uniform International
Codex Standard was vital because the industry was striving to
carve out a greater nutritional role for noodles on the world's
dinner tables.

Standardization takes care of both consumer health concerns
and honesty in business practices to bar against the marketing of
substandard products.

It will ensure that all noodles -- whether produced by
Indofood in Indonesia or a small firm in Africa -- adhere to the
same regulations, he added.

And it will also eliminate any doubts about the export quality
of items from producers around the globe.

Important items up for discussion in setting the Codex, he
said, include:
* Raw materials, food additives (i.e. alkalines, antioxidants,
colors, preservatives).
* Hygiene standards.
* Packaging and labeling.

Winarno said the ultimate standards approved should be strong
enough to safeguard consumers, but not so strict to burden the
industry.

"The standards can't be too strong, but neither can they be
too light because we are positioning instant noodles as an export
commodity," he said.

100 billion meals

The summit will also be an ideal opportunity for the movers
and shakers of the industry to rub shoulders with other industry
lights and discuss the problems they encounter in their
respective markets.

Cooperation and understanding forged during such exchanges set
the path for better future relationships among noodle firms,
large and small, worldwide.

The swapping of experiences and the discovery of solutions
needed to overcome the problems stand noodle producers in good
stead as they prepare for future growth.

A major noodle producer such as Nissin or Indofood may be able
to provide valuable advice to a company finding its feet in its
market.

Standardization of quality and hygiene is also part of the
effort to meet an expected demand of 100 billion servings by
2010.

The popularity of noodles as both a instant ramen snack and as
main meal is growing, spreading from the food's origins in Asian.

Although the top-20 list of noodle-consuming countries
includes both traditional Asian centers of the food's
consumption, such as China, Indonesia, Japan and South Korea,
also prominent among them are countries such as the United
States, Brazil, Australia and Canada; a fact which is perhaps
surprising to some.

The pull for consumers' palates and pocketbooks is easy to
understand.

High in carbohydrates, convenient to prepare and reasonably
priced, noodles are fitting into the dietary needs of many busy
consumers. They provide a satisfying, filling meal without taking
a bite from one's budget.

Noodles, in addition to the staple of rice, are a big seller
in Indonesia. Indonesian Food and Beverage Association chairman
Thomas Darmawan revealed the country's instant noodle makers
produced about eight billion packets of noodles in 1998, slightly
lower than the 8.6 billion produced the previous year.

Eva Riyanti Hutapea, Indofood's president and part of the
steering committee for the summit, acknowledged that the
company's noodle sales dipped in the past year.

It sold 7.5 billion packets of noodles in 1998, a 3.8 percent
drop from the 7.8 billion packet sales recorded in 1997.

Eva attributed the decline in sales to rising prices of
ingredients, particularly wheat, on the world market. This was
combined with weakened consumer purchasing power of Indonesians
due to an economic crisis.

One of the four main items on the summit agenda is the
provision of noodles for social assistance and in overcoming
national disasters.

Part of this outreach will be evident at the summit itself.

IRMA members have agreed to pool their resources through the
IRMA Care Noodle (Mi Peduli IRMA) for needy Indonesians battling
to survive in the crisis.

A donation of Rp 1.1 billion -- translating into the provision
of 2.5 million packs of instant noodles -- will be made during
the Bali summit.

Even with the decline in sales in the wake of the economic
crisis, the Bali summit, and the next gathering in 2001 in Seoul,
will assure the place of noodles in meeting nutritional needs of
people across the world.

Table: National trend in instant ramen demands; 20 major
countries, 1992 to 1997 (in million packs)

No Country 1992 1993 1994 1995 1996 1997

--------------------------------------------------------------------

01 China * 1,300* 3,000* 4,020 13,270 15,000 16,000

02 Indonesia 4,760 5,600 7,000 7,650 7,970 8,600

03 Japan 4,870 5,200 5,040 5,200 5,300 5,320

04 South Korea 3,610 3,560 3,710 3,520 3,730 3,890

05 USA 1,400 1,530 1,800 2,000 2,000 2,480

06 Thailand 550 950 1,200 1,340 1,340 1,370

07 Philippines 250 780 920 1,000 1,040 1,130

08 Vietnam 640 570 800 900 900 900

09 Taiwan 670 730 780 810 840 800

10 Brazil 150 220 320 470 580 670

11 Malaysia 200 300 300 330 360 360

12 Former USSR 30 50 - - 300 300

13 Hong Kong 270 260 250 270 270 280

14 India 70 60 80 100 100 170

15 United Kingdom 110 130 120 120 150 150

16 Australia 50 80 80 90 130 130

17 Germany 60 70 70 70 130 130

18 Singapore 50 60 60 70 100 100

19 Mexico 20 40 40 40 40 90

20 Canada 60 70 70 80 80 80

--------------------------------------------------------------------

Total 20 Countries 19,120 23,260 26,660 37,330 40,360 42,950

Percent of Total (World) 99% 99% 99% 99% 99% 99%

Total (World) 19,260 23,270 26,870 37,580 40,790 43,420

* Estimates

Sources: Japan Convenience Food Industry Association (JCFIA),
International Ramen Manufacturers Association (IRMA)

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