Food Processing

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FOOD PROCESSING

Food Processing – any of a variety of operations by which raw or already altered


foodstuffs are made suitable for consumption, cooking or
storage for consumption.

- the process of converting raw materials into food.

Factors influencing development of the food processing industry in the


Caribbean

(1) Raw Materials – these originate in plants and animals and may be obtained
through agriculture, fishing and hunting. Small scale
operations may be provided for locally while some larger
operations import raw materials from larger producers
abroad.
(2) Availability of labour – the abundance of available labour has been a key
contributor towards the development of the food
processing industry.
The industry does not require high levels of skill,
training or education. Workers can therefore be trained
at low costs.
In most societies there are large pools with low
levels of education who are willing to be trained and willing
to work for small wages.
(3) Capital – start-up costs are relatively low, allowing many small scale
operations to emerge.
Work done is labour intensive with little machinery
(juicers, food processors/blenders) and simple tools (knives,
bowls)
However, some larger operations may require the
use of automation and therefore capital outlay is greater.
(4) Markets - large markets are available on a domestic and regional level.
Food items are commonly sold in retail outlets, roadside
vending roving vendors who visit crowded places.
Larger producers export to other CARICOM countries
(made possible by the absence of duties/tariffs).
(5) Energy – food processing often requires a reliable supply of electrical
energy for the operation of small machinery. Electricity,
recently, is usually available throughout most places within
countries and therefore has little influence in the setting up
of production centres.
(6) Government influence – governments have provided assistance to
developing industries locally by:
(a) Providing industrial estates with basic facilities such as
warehouses and factory sites, electricity, telephone services,
water and waste disposal facilities.
(b) Tax concessions have been given on importation of raw
materials so as to reduce cost to the industry.
(c) Governments through negotiation and making deals as well
as participation in regional groups (CARICOM) can serve to
reduce or remove tariffs and duties thereby making export
profitable, and encouraging development and growth.
(7) Transport network – many Caribbean countries at least have major roads
linking the capital and main port with other settlements
allowing transport of raw materials and finished products
to and from importing and exporting point. Products are
easily distributed throughout local retail centres at low costs.
BENEFITS /ADVANTAGES OF FOOD PROCESSING TO CARIBBEAN
COUNTRIES

(1) Provides employment/reduces unemployment – the food processing


industry provides jobs directly and indirectly for many
workers. Approximately 13,000 people are employed in
around 500 companies ranging in size from large
multinationals (like Nestle) to small family run businesses.
Workers in agriculture, fishing and transport are also
supported by the food processing industry.
(2) Provides food locally – food processing is directly involved in providing
food, thus improving food security. Locally produced food
products tend to be cheaper than imported products due to
absence of duties/tariffs.
(3) Increases foreign exchange – foreign exchange is earned through
exports while reducing money lost through imports (we
import less as food is produced locally)
(4) Supports other local industries – a large amount of raw materials are
bought locally – agriculture and fishing – thus helping to
make these industries profitable.
PROBLEMS OF THE FOOD PROCESSING INDUSTRY IN CARIBBEAN
COUNTRIES
(1) Competition from other countries – competition exists from not only
Caribbean/CARICOM members but from other (extra-
regional) countries. In some cases products are mass
produced and therefore sold cheaper. Some people
purchase foreign products due to the perception of better
quality or due to market trends (influenced by aggressive
advertising).
(2) Labour issues – many workers find that wages are too low and
sometimes attracting labour can be a problem. In some
cases workers do not like the rigid working conditions.
(3) Inaccessibility to foreign markets – as trading blocs become larger,
markets such as the USA are being lost to other mass
producing countries which are part of NAFTA (North
American Free Trade Agreement).
(4) Shortages of raw material – unfavourable weather conditions (drought,
heavy rains causing flood, storms/hurricanes) can cause
shortages of raw materials especially for small producers.
This reduces production as small producers often do not
have sources of imported raw material nor do they
produce on such a large scale to import. Pests and
diseases also reduce agricultural production thereby
reducing raw materials for food processing.
FOOD PROCESSING IN TRINIDAD

Location – Small scale producers are distributed across the island. Larger
producers (eg Nestle, ) are usually located close to highways
(Nestle along Solomon Hochoy Highway, Valsayn and Chief
Products along Uriah Butler Highway, Charlieville) and main
roads (Carib Brewery along Eastern Main Road, St Joseph)
or close to the major exporting/importing port in Port of
Spain (National Flour Mills and Angostura Ltd).

Types – SMALL SCALE (although some producers have grown to supply


islandwide)
Preserves – chow, salted prunes
Local sweets - sugar cake, icecream, fudge, kurma, tamarind ball
Breads, cakes and pastries
Condiments – Pepper sauce and kuchela
Small kitchens/food huts/food vendors – doubles vendors, burger
carts, bake and shark huts

LARGE SCALE
Large scale manufacturers which usually produce, package, can and
bottle their products for wholesale distribution
- Nestle – juices, dairy products, chocolates
- National Flour Mills (NFM) – flour (milling operations), animal
feed
- National canners – ketchup, fish products
- S M Jaleel – soft drinks
- KC Confectionary – Sweets
Raw Materials – Small scale producers are supplied by local farms
Large scale producers are supplied by local farms and
fishermen while some raw materials are imported.
This is a result of inadequate supply locally and in the case
of NFM wheat is not grown locally (to make flour) and
so has to be imported (this is also the main reason for its
location near the port in POS).

Energy – energy is required in the form of electricity which is easily


obtained throughout most of the country.

Transport – a vast road network allows raw materials and manufactured


products to be transported throughout most of the
country. (It should also be noted that some remote
locations are affected by poor road conditions which
often results in higher costs of hired transport and higher
cost of maintenance of vehicles).

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