Food Processing, and Food Packaging & Marketing
v Food Processing Industry (FPI) in India is a sunrise sector that has gained prominence in the recent years. Easy availability of raw materials, changing lifestyles and favourable fiscal policies has given a considerable push to the industry’s growth.
v FPI serves as a vital link between the agriculture and manufacturing sectors of the economy.
v Strengthening this link is critical to reduce wastage of agricultural raw materials, improve the value of agricultural produce by increasing shelf-life as well as by fortifying the nutritive value of the food products and ensure remunerative prices to farmers as well as affordable prices to consumers.
v India has a population of one hundred crore plus and feeding this large a population calls for a strong FPI.
v The industry also assumes importance in the national economy due to the immense employment generation opportunities it offers and the export revenue it earns. India is one of the leading exporters of the processed food products.
v It has a competitive edge over other countries due to the wide variety of crops cultivated as a result of geographical and climatic diversity.
v Government too is trying to support the industry by formulating favourable policies. With adequate government focus on the infrastructural support, research and development and technological innovation in this sector, India could alleviate its domestic concerns on food security, malnutrition and food inflation.
Introduction
v As per Ministry of Food Processing of India (MOFPI), the term ‘food processing’ is mainly defined as a process of value addition to the agricultural or horticultural produce by various methods like grading, sorting and packaging.
v In other words, it is a technique of manufacturing and preserving food substances in an effective manner with a view to enhance their shelf life; improve quality as well as make them functionally more useful.
v It covers a wide spectrum of products from sub- sectors comprising agriculture, horticulture, plantation, animal husbandry and fisheries. It also includes other industries that use agricultural inputs for manufacturing of edible products.
SEGMENTS IN THE FPI
v The food processing sector comprises of three segments based on the levels of processing
Primary processing of food
v Primary processing of food comprises of sorting, grading and packaging of fruits and vegetables, milk, rice, spices, etc.
Secondary Processing of Food
v Secondary processing of food comprises of re-shaping of food for ease of consumption. It includes flour, oil cakes, tea leaf and beverages powder etc.
v Together with primary processing, the two segments constitute around 62% of the processed foods in value terms.
Tertiary Processing of Food (or) Value Added Food Segment
v Value added food segment includes processed fruits and vegetables, juices, jam & jelly etc and holds around 38 % share in the total processed food market.
v MOFPI indicates the following segments within the food processing industry on the basis of the raw material used:
1. Fruits& Vegetables –Beverages, Juices, Concentrates, Pulps, Slices, Frozen & Dehydrated products, Wine, Potato wafers/Chips etc.
2. Fisheries -Frozen & Canned products mainly in fresh form
3. Meat & Poultry -Frozen and packed food mainly in fresh form, Egg powder
4. Milk & Dairy -Whole milk powder, Skimmed milk powder, Condensed milk, Ice cream, Butter and Ghee
5. Grain and Cereals-Flour, Bakeries, Biscuits, Starch, Glucose, Cornflakes, Malted foods, Vermicelli, Pasta foods, Beer and Malt extracts, Grain based alcohol
6. Consumer Foods– Chocolates, Confectionery, Soft/Aerated beverages
Advantage India in Food Processing
1. India is one of the largest food producers in the world.
2. India has diverse agro-climatic conditions and has a large and diverse raw material base suitable for food processing companies.
3. India is looking for investment in infrastructure, packaging and marketing.
4. India has huge scientific and research talent pool.
5. Well developed infrastructure and distribution network.
6. Rapid urbanization, increased literacy, changing life style, increased number of women in workforce, rising per capita income leading to rapid growth and new opportunities in food and beverages sector.
7. 50 per cent of household expenditure by Indians is on food items.
8. Strategic geographic location (proximity of India to markets in Europe and Far East, South East and West Asia).
Key growth drivers of Food Processing Sector in India
1. Increasing spending on health and nutritional foods.
2. Increasing number of nuclear families and working women
3. Changing lifestyle
4. Functional foods, fresh or processed foods
5. Organized retail and private label penetration
6. Changing demographics and rising disposable incomes
Key opportunities in Food Processing Sector
1. Processable varieties of crop
2. Contract farming
3. Investments in infrastructure through Public Private partnership (PPP)
4. Mega Food parks
5. Logistics and cold chain infrastructure
6. Food safety Management Systems
7. Machinery and packaging
7.
Introduction to food Packaging:
v In today’s society, packaging is pervasive and essential. It surrounds, enhances and protects the goods we buy, from processing and manufacturing, through handling and storage, to the final consumer.
v Without packaging, materials handling would be a messy, inefficient and costly exercise and modem consumer marketing would be virtually impossible.
v The packaging sector represents about 2% of Gross National Product (GNP) in developed countries and about half of all packaging is used to package food
Developments in Indian packaging:
1. Metal cans and glass bottles have lost large markets to rigid and flexible plastics and printed monocartons.
2. Flexible packaging has replaced all forms of rigid packaging. The flexible packaging segment has seen many new innovations. The concept of the single use unit pack is now globally acknowledged as a marketing first.
3. Laminate tube has almost entirely replaced the aluminium collapsible tube for toothpaste packaging, now making inroads into the pharmaceutical sector.
4. PET bottles & Jars have made a spectacular entry into the Indian market, recording annual growth rates in excess of 20% per annum; in its wake, the demand for a whole new range of plastic closures has also emerged replacing metal closures.
PET bottles are used for mineral water, edible oil, carbonated soft drinks and a host of other products.
Definition of packaging
v Packaging has been defined as a socioscientific discipline which operates in society to ensure delivery of goods to the ultimate consumer of those goods in the best condition intended for their use.
v The Packaging Institute International (PII) defines packaging as the enclosure of products, items or packages in a wrapped pouch, bag, box, cup, tray, can, tube, bottle or other container form to perform one or more of the following functions: containment, protection, preservation, communication, utility and performance.
v If the device or container performs one or more of these functions, it is considered a package.
v Other definitions of packaging include a co-ordinated system of preparing goods for transport, distribution, storage, retailing and end-use, a means of ensuring safe delivery to the ultimate consumer in sound condition at optimum cost, and a techno-commercial function aimed at optimizing the costs of delivery while maximizing sales.
Levels of Packaging:
v A primary package is the one which is in direct contact with the contained product. It provides the initial, and usually the major protective barrier. Example: Metal cans, paperboard cartons, glass bottles and plastic pouches, aerosal spray can, Beverage can, cushioning envelopes, plastic bottles, skin pack.
v A secondary package contains a number of primary packages. It is outside the primary packaging perhaps used to group primary packages together. It is the physical distribution carrier and is sometimes designed so that it can be used in retail outlets for the display of primary packages. Ex. Corrugated case, Boxes
v A tertiary package is made up of a number of secondary packages. It is used for bulk handling. Example being a stretch-wrapped pallet of corrugated cases.
v A quaternary package is frequently used to facilitate the handling of tertiary packages. This is generally a metal container up to 40 m in length which can be transferred to or from ships, trains, and flatbed trucks by giant cranes. Certain containers are also able to have their temperature, humidity and gas atmosphere controlled. This is necessary in particular situations such as the transportation of frozen foods, chilled meats and fresh fruits and vegetables.
Shelf life of processed foods
v Shelf life is the length of time that foods, beverages, and many other perishable items are given before they are considered unsuitable for sale, use, or consumption.
v It is the time between the production and packaging of a product and the point at which the product first becomes unacceptable under defined environmental conditions.
v It is a function of the product, package and the environment through which the product is transported, stored and sold.
v Factors influencing shelf life: These include product, package and the environment.
v Product: Products differ greatly in their susceptibility to various agents.
v These agents cause different charges which affect the shelf life. Examples include:
1. Aroma loss as in freshly ground pepper or roasted coffee which results in loss of palatability
2. Pick up of a foreign odour. Ex. Absorption of onion odour by butter when these two items are placed together.
3. Loss of carbonation as in the case of soft drinks or beer
4. Crystallization. Ex. Honey when kept in cold for a long time.
5. Moisture gain as in dry or dehydrated foods such as ready-to-eat breakfast cereals, snack foods which destroys their crisp texture
