“Processed Food Industry” monthly magazine covers
Meat & Poultry

Meat & Poultry

The growing number of fast food outlets in the country has had a significant impact on the meat and poultry processing industry in India. There is a large potential for setting up modern slaughter facilities and development of cold chains in the meat and poultry processing sector. Buffalo meat is ...

Consumer Foods

Consumer Foods

There are a large number of players in the organised as well as unorganized sector of food industry. The organised sector is small but growing - for example, it forms less than 15 per cent of the dairy sector and around 48 per cent of the fruits and vegetable processing. The sector offers potentia...

Dairy

Dairy

In the dairy sector, though the share of organized sector is less than 15 per cent, it is expected to rise rapidly, especially in the urban regions. Among the milk products manufactured by the organized sector, some of the prominent ones are ghee, butter, cheese, ice creams, milk powders, malted m...

Grain Processing

Grain Processing

India produces more than 200 million tonnes of different food grains every year. About 15 per cent of the annual production of wheat is converted into wheat products. Primary milling of rice, wheat and pulses is the most important activity in food grains processing. Indian Basmati rice commands a ...

Fruits & Veggies

Fruits & Veggies

Over the last few years, the industry has seen a positive growth in ready-to-serve beverages, fruit juices and pulps, dehydrated and frozen fruits and vegetable products, pickles, processed mushrooms and curried vegetables. This sector is expected to grow to 10 per cent in the next few years and 2...

 

Food Packaging

Food Packagingfood_packaging Food Packaging is the means and vehicle that preserves and delivers the food product to the consumer in good shape. Read More

Food Regulations

Food Regulationsmagz1 New Food Safety and Standards Act of India is now notified and work on formulation of regulations is on.Read More

Functional Foods

Functional Foodsprocessed food productsThe functional food is one of the several areas of the food processing industry that is experiencing fast growth...Read More

Editors Choice

Processed Food Industry Magazine -- Editor's Choice

Inflation will have impact on food processing industry as well

Inflation is now well above 7 percent. Basic food items are much costlier now. Government actions to tightening the money supply has not yet made any impact in the reduction of inflation rate. Although finance ministry and planning commission is still hopeful that the inflation rate will soon come down but market is yet to see any impact of the initiatives taken so far. There will be thus direct and indirect impact of the rising inflation rate on the performance of the processed food industry as well.

Let us examine the kind of impact inflation can have on our processed food industry.

Firstly, the rise in input cost will increase the cost of production and entire escalation in cost cannot be passed on to the consumers resulting in lower profitability of processors. The lower profit will force the food industry to cut down on other costs such as R&D, advertisement and promotion as well as the manpower cost. These are short-term measures to maintain the bottom line performance of the food processing company in tact to keep the shareholders confidence as well as market price of the stock at desired level otherwise the value of the company or the shareholders' wealth and return on investment will go down which would not be an acceptable proposition. These are however, counter productive in the long run in the sense that there will be consequential impact on the product performance for temporary withdrawal of promotional support.

Secondly, manufacturers of processed foods will not be able to absorb entire cost escalation and therefore will resort to price increase which will reduce the demand for the products. As processed food products do not fall under essential goods and therefore consumers will use discretion to spend in this product category. The result is sales number will be difficult to achieve which will force people (sales and marketing staff) to look for alternative employment to avoid working under constant pressure. This will force organizations to constantly restructure the sales system and even work with less experienced people. The exodus will have impact in the overall food business.

Thirdly, consumers in general, will have less cash surplus (disposable income) to indulge in buying products, which are sometimes impulse purchase. Middle class population that constitutes the large part of the market will resort to drastic reduction in budgetary allocation for purchase of processed food products. School children will get lesser amount as daily allowance to buy snacks and ready to eat foods from school canteens. The end result is that the demand will come down impacting the sales of the products.

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And in other news
essentialThe FSSAI has informed that the PFA Rules, 1955 provide restriction on use and sale of artificial sweeteners.  Read More...
clean_kiwi_fruitThe Vision 2015 foresees the level of processing of perishable to 20% from 6%, value addition enhancment to 35%.  Read More…

What's New

Livzon Pharmaceutical Group of China filed a patent application, India countered by stating Ayurveda & Unani text books. EPO decided to cancel China's claim.   Read More...

Profile

Processed Food Industry, a monthly trade magazine, has made in-roads in the field of food processing, food packaging and allied activities in national, as well as, international arena.

'PFI' Covers

PFI Online Covers New Technologies, Food and Packaing Trends, Development in New Ingredients, New Products Launches and much more in the sphere of processed food industry...

Managing IPR

Managing Intellectual Property

Managing Intellectual Property

“Managing Intellectual Property” is a series of articles on intellectual property rights in the trade related matters. The series covers various dimensions of IPR, pertainign to the food processing industry, in the form of simplified legal text with suitable cases studies. We hope the series will benefit the food processors, policy makers, executives, managers, researchers, traders and other stakeholders in the processed food industry.Read More

Current Topics

Current Topics

‘Current topics’ provides the rapid advances in the food processing sector that have taken place in the recent past. The series is being contributed by Dr. V.H Potty – our editorial consultant and Deputy Director (Rtd), CFTRI. He is the doyen of food processing industry in India. We feel that an intensive review of the major issues concerning food processing industry would be of great value to our readers.

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Recent Development

Recent Development

New developments in the sphere of processed food industry take place every now and then, which results in the overall development of the entire food sector. Dr. Rajat K. Baisya — our editorial consultant, and professor of marketing and strategic management at department of management studies, IIT Delhi — keeps a keen eye on these developments in food processing sector as and when they happen. The series has recently passed its 200 mark in its print version.
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Cold Chain

Cold Chain Management

Keeping in view the importance of freezing and cold chain in food business 'Processed Food Industry' has decided to introduce a new series of article ‘A to Z of Frozen Food Operation’. The series is contributed by O S Gautam — a known food consultant and Director, Delicacy International — is being presented here. We hope our readers will be benefited by his experience and give us their feedback.
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Supply Chain

Supply Chain

“Managing Supply Chain & Marketing of Food Products” The purpose of initiating this series of articles is to discus some important dimensions of food processing industry, which can be of some help for decision makers at various levels in food business. This series looks into macro-economic policy parameters, which affect food consumption and retailing patterns and consumer behaviours. We will also evaluate various micro-level developments in processed-food-industry world and their impact on food business, food retailing and consumer behaviour.
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Value Addition

Value Additionvalue addition in food industry The level of value addition in food industry has increased, driven by changing consumer preferences. Opportunity in the value-added food category is beginning to emerge for Indian food industry.Read More

Quality Management

Quality Managementfood qualityQuality management is focused not only on food product/service quality, but also the means to achieve it. Read article on quality issues by some eminent professionals in the food processing industry.Read More

Food Additives

Food Additivesfood additives and ingredientsConsumer expectations can only be achieved using modern food technologies which include the use of a variety of food additives and ingredients. Know more about them.Read More

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Livestock Economics

More than 75 percent of the rural households in India depend on livestock sector for supplementary income. This sector contributes 30 percent of the total income from agriculture in the country. Annual growth rate in livestock sector is more than four times in agriculture.Read More

Food colours -– why do we need them?

Colours are vital marketing tool to ensure the consumer appeal. Food colours are therefore used to restore the appearance of a food/drink after processing and also to help to maintain the particular shade of a product for the duration of its shelf life.Read More