Food processing:
- It is the set of methods and techniques used to transform raw ingredients into finished and semi-finished products. Food processing is a branch of manufacturing wherein raw materials are transformed into intermediate foodstuffs or edible products through the application of scientific knowledge and technology.
- Food processing requires good quality raw materials from either plant and/or animal source to be converted into attractive, marketable and often long shelf-life food products.
- Many food processing operations are designed to extend the shelf life of the food products. The concepts associated with food processing are reducing/eliminating microbial activity and other factors that influence food spoilage.
- Most of the time, processing of foods adds value to the resultant product by increasing storability, portability, palatability and convenience.
- Oldest methods are sun drying, controlled fermentation, salting/pickling, candying, roasting, smoking, baking and using spices as preservatives.
- These tried and tested techniques are still used although, with the advent of industrial revolution, new methods have been developed.
- The basic concepts in food processing methods to prevent food spoilage are:
- Application of heat,
- Removal of water moisture,
- Lowering of temperature during storage,
- Reduction of pH,
- Controlling the availability of oxygen.
- Note: Classes of Foods Based on Perishability:
- Perishable foods are foods that spoil quickly within one or two days e.g., milk, curds, fish and meat.
- Semi perishable foods can last for 1-2 weeks. Examples are fruits and vegetables. Root crops like onions and potatoes last for 2-4 weeks.
- Non-perishable are those foods that generally last for one year e.g., grains like rice, wheat, pulses and dals, oil-seeds.
- Processed foods can be classified on the basis of extent and type of processing as follows:
- Minimally processed foods: These are processed as little as possible in order to retain the quality of fresh foods. Generally the processes used are cleaning, trimming, shelling, cutting, slicing and storage at low i.e., refrigeration temperatures.
- Preserved foods: The methods of preservation used do not change the character of the product substantially e.g., frozen peas and frozen vegetables, dehydrated peas, dehydrated vegetables, canned fruits and vegetables.
- Manufactured foods: In such products, the original characteristics of the raw products are lost and some basic methods of preservation are used, often using various ingredients such as salt, sugar, oil or even chemical preservatives. Examples are pickles, jams, marmalades, squashes, papads, wadis.
- Formulated foods: These are products prepared by mixing and processing of individual ingredients to result in relatively shelf stable food products such as bread, biscuits, ice cream, cakes, kulfi.
- Food derivatives: In industry, components of foods may be obtained from the raw product through purification, e.g., sugar from sugarcane or oil from oil seeds. In some cases, the derivative or the component may be processed further, e.g., conversion of oil to vanaspati (the process is called hydrogenation).
- Functional foods: These are foods that can have a beneficial effect on human health, e.g., probiotics, lycopene.
- Medical foods: These are used in dietary management of diseases, for example, low sodium salt, lactose–free milk for persons with lactose intolerance.
- Major segments of food processing:
- Fruits and Vegetables.
- Milk and Milk Products.
- Meat and Poultry.
- Marine Products.
- Grain Processing.
- Consumer Food.
- Status of Food Processing In India
- In spite of a large production base, the level of processing is low (less than 10%).
- Approximately 2% of fruits and vegetables, 8% marine, 35% milk, 6% poultry are processed.
- Lack of adequate processable varieties continues to pose a significant challenge to this sector.
- India’s livestock population is largest in the world with approximately 50% of the world’s buffaloes and 20% of cattle, but only about 1% of total meat production is converted to value added products.
- More than 75% of the industry is in unorganized sector.
- Processing can be delineated into primary and secondary processing.
- Rice, sugar, edible oil and flour mills are examples of primary processing.
- Secondary processing includes the processing of fruits and vegetables, dairy, bakery, chocolates and other items.
- Most processing in India can be classified as primary processing, which has lower value-addition compared to secondary processing.
- There is a need to move up the value chain in processed food products to boost farmer incomes.
- For instance, horticulture products, such as fruits and vegetables, carry the potential for higher value-addition when compared to cereal crops.
- At present, India’s agricultural exports predominantly consist of raw materials, which are then processed in other countries, again indicating the space to move up the value chain.
- In spite of a large production base, the level of processing is low (less than 10%).
- Problems in Food Processing Industries:
- At present most of the industries are in unorganized sectors. So, number of problems are arising from different sections of the industries.
- Farm level problems:
- Poor yield of farm produce and therefore low returns.
- Lack of material resources necessary for development.
- Primitive methods of farming.
- No control on the quality of inputs and lack of finance to manage.
- Vagaries of weather.
- Unavailability of reliable handling and transportation system.
- Lack of storage facilities at farm.
- Distributors’ problems:
- Lack of modern transportation facilities and high cost
- Inadequate cold storage faculties
- Irregular quality and quantity of farm produce
- Processing industries problem:
- Financing
- Higher import duties
- Higher cost of raw material and packaging
- Inadequate transport and cold storage facilities
- Infrequent availability of refrigerated containers
- Staggering advertising costs
- Limited domestic market
- Consumer discontent:
- Does not get value for money
- The price variation is a day to day affair
- Continued dependence on seasonal products
- Lack of variety of semi processed or prepared convenience food at affordable prices.
- Other challenges:
- Extensive use of fertilizers, pesticides and other chemicals has raised concerns about the quality of food.
- Care should be taken as processed foods may not be nutritionally balanced and may pose a health risk especially for children unless fortified.
- Low value-added in processing: There is major fragmentation of food processing capacity, with a large unorganized segment and widespread use of primitive processing. This results in lower value-addition at the processing stage, especially from a nutritional point of view.
- Limited ability to control quality and safety: The sheer number of players, especially in the large unorganized segment, involved in the food value-chain, makes implementation of quality and safety norms difficult.
- This has led to practices such as milk adulteration and use of carbide for fruit ripening becoming more widespread.
- Low consumer awareness: Consumer awareness is a critical aspect of an improved nutritional situation in the country. Consumers currently lack awareness of several nutritional and food safety and quality aspects.
- Suggestions:
- Storage capacities and infrastructure should be increased.
- Develop the agricultural facility with good agricultural practice which leads to the transition from staple food crops to diversification of crops.
- Backward linkages to farmers need to be made more robust. Contract farming can be promoted. According to the Model Contract Farming Act, 2018, the contract will specify the quantity, quality and price of produce being supplied. This would shield farmers from price volatility, subject to quality commitments.
- Skilling is required at two levels. First at the farm gate in promoting agricultural best practices and in processing activities.
- Public investment and connectivity should be increased.
- Slaughter animal rules should be framed in a comprehensive policy framework.
- Farm pattern diversification which leads to a production of variety of crops other than constant set of crops which creates lot of job opportunities.
- Second Green Revolution should be updated with the diversified technologies.
- We have to encourage the domestic startups and industry than the international companies.
- There should be a Centre of Excellence between centre and state.
- Should have more training institutes for upcoming entrepreneurs and it should be in all states.Scholarship should be given to the upcoming entrepreneurs.
- New technology should be updated in the training institutes and skill development should be given the top most priority.
- Government’s Initiative:
- The Ministry of Food Processing Industries (MoFPI) is implementing PMKSY (Pradhan Mantri Kisan SAMPADA Yojana)
- The objective of PMKSY is to supplement agriculture, modernize processing and decrease agri-waste.
- It is an umbrella scheme incorporating ongoing schemes.
- Under PMKSY the following schemes are to be implemented:
- Mega Food Parks.
- Integrated Cold Chain, Value Addition and Preservation Infrastructure.
- Creation/Expansion of Food Processing/Preservation Capacities.
- Infrastructure for Agro Processing Clusters.
- Scheme for Creation of Backward and Forward Linkages.
- Food Safety & Quality Assurance Infrastructure.
- Human Resources and Institutions.
- Foreign Direct Investment (FDI) policy: FDI up to 100%, under the automatic route is allowed in food processing industries.
- Agricultural and Processed Food Products Export Development Authority (APEDA)– an apex organization under the Ministry of Commerce and Industry – focusses on ‘export’ of scheduled products.
- The Ministry of Food Processing Industries (MoFPI) is implementing PMKSY (Pradhan Mantri Kisan SAMPADA Yojana)
Scope and significance:
- India’s position as a major food producer:
- India ranks 1st in the production of – milk, ginger, banana, guava, papaya, mango etc. It ranks 2nd in the production of rice, wheat, potato, sugarcane, cashew nut, tea etc.
- With such a huge raw material base, we can easily become the leading supplier of food items in the world.
- Resource advantage of India: Different soil types and different climate types for cultivation of diverse food crops, long coastal line suitable for fishing, huge resource of domestic animals etc.
- Employment Generation: It provides direct and indirect employment opportunities, because it acts as a bridge between Agriculture and Manufacturing.
- Curbing Migration : Provides employment in rural areas, hence reduces migration from rural to urban. Resolves issues of urbanization.
- Doubling of farmers’ income: With the rise in demand for agri-products there will be commensurate rise in the price paid to the farmer, thereby increasing the income.
- Reduce malnutrition: Processed foods when fortified with vitamins and minerals can reduce the nutritional gap in the population.
- Reduce food wastage:
- UN estimates that 40% of production is wasted.
- Similarly, NITI Aayog estimated annual post-harvest losses of close to Rs 90,000 crore.
- With greater thrust on proper sorting and grading close to the farm gate, and diverting extra produce to FPI, this wastage could also be reduced, leading to better price realisation for farmers.
- Boosts Trade and Earns Foreign exchange: It is an important source of foreign exchange. For e.g. Indian Basmati rice is in great demand in Middle Eastern countries.
- Curbing food inflation : Removes issues of wastage or middle man. Curbs food inflation. Indirect relief on non-food inflation too. For e.g. Frozen Safal peas are available throughout the year.
- Crop Diversification : Because of long shelf life, farmers can diversify their products.
- Enhances the quality and taste of food thereby bringing more choices in food basket.
- The demand potential : Expected to reach 350b$ by 2020. Youth population, middle class, rising income, nuclear families, media penetration etc cited as positive factors.
- Government initiatives to boost food processing: Various government initiatives like attracting FDI, reduction in excise duties etc have boosted food processing.
- Future driver of Indian growth : Food processing corresponds to around 10% of GDP in agriculture-manufacturing sector. It has potential for more.
Location of food processing industries in India
- India has more than 35000 registered units. But majorities of the food processing factories are concentrated in the coastal states ( one reason being, accessibility to marine food processing)
- Major coastal states includes: Andhra, Maharashtra, Karnataka, Kerala, Gujarat, Punjab and WB. Non-coastal states include UP, Punjab etc.
Upstream and Downstream requirements of food processing industries:
- The upstream stage of the production process involves searching for and extracting raw materials.
- The upstream part of the production process does not do anything with the material itself, such as processing the material. This part of the process simply finds and extracts the raw material.
- Thus, any industry that relies on the extraction of raw materials commonly has an upstream stage in its production process.
- Upstream requirements:
- Accessibility to raw materials.
- Modern extraction techniques.
- Good linkages with farmers.
- Storage facilities for raw materials like Grains, Meat, Fish etc.
- Quality testing facilities.
- Transport facilities.
- Work force.
- The downstream stage in the production process involves processing the materials collected during the upstream stage into a finished product.
- The downstream stage further includes the actual sale of that product to other businesses, governments or private individuals.
- Downstream process has direct contact with customers through the finished product.
- Downstream requirements:
- Latest processing techniques.
- Latest processing machinery.
- Quality testing facilities.
- Organized retail stores for faster distribution.
- Work force.
Supply Chain Management
- Supply chain management (SCM) is the management of the flow of goods. It includes the movement and storage of raw materials, inventory and finished goods from point of origin to point of consumption.
- A case of Supply Chain Management for Food Processing Industry:
- Raw materials like grains, raw meat, fish etc are collected by different sources. These sources may do preliminary processing of these to make components of a food product before passing over them to the main manufacturer through many middle men.
- The manufacturer does the final processing of these components to make the food product. This completes only the first stage of supply management.
- Now the finished product has to be delivered to the consumer. Here also there will be a number of middle men and stages.
- The manufacturer normally hands over the food product to a whole sale dealer. The wholesaler pass the product to a retailer from where the consumer buys the processed food item for his personal use.
- Thus, Supply Chain Management is the management of upstream and downstream value added flow of materials from suppliers→ company→ retailer→ final consumers.
- Importance of Supply Chain Management in Food Processing Industry: If there are good Supply Chain Management practices in a country, then it will boost economy as a whole. Good supply chain links helps farmers, manufactures, wholesalers, retailers and consumers. Every one in the supply chain link will get inputs at a faster rate, at the right time and at a cheaper cost.
