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NAME: ANDELL RYAN RAMSINGH SCHOOL: ST STEPHENS COLLEGE SCHOOL CODE: 160076 CANDIDATE NUMBER: TITLE: INDUSTRIAL LOCATION

YEAR: 2012 TERRITORY: TRINIDAD

TABLE OF CONTENTS

PAGE NO.

Location of Study. Aim of study Data Collection. Presentation and Analysis of Data Conclusion Bibliography.. Appendix

LOCATION OF STUDY
Nestle Trinidad and Tobago Limited is located in Valsayn as shown in map 1.

Aim of Study
The aim of the study is to discover if Nestle, a food processing industry in Valsayn, Trinidad is ideally located and the factors which influenced its location.

Data Collection How the data was collected


A site visit to Nestle Trinidad and Tobago Valsayn, was conducted. An interview was executed with the Nestle representative using the questionnaire shown in Appendix ii. Secondary data on previous research done on the location of the industry were gathered from the internet and books.

Where the data was collected


The study area was Nestle Trinidad and Tobago Valsayn which is shown in the location map, Figure 1.

When the data was collected


The visit to Nestle Company was on the 21st November 2011 between 10.00 and ?

Presentation and Analysis of Data


Nestle Trinidad and Tobago Company is located in Valsayn, which is in close proximity to the Capital of Port of Spain. Nestle is the worlds largest food and beverage company with more than 6000 brands and products. The products manufactured by Nestle Trinidad and Tobago Company are shown in figure 1. Nestle business objective and that of management of employees at all levels, is to manufacture and market the companys products in such a way as to create value that can be sustained over long term for shareholders, employees, consumers, business partners and the large number of national economics in which Nestle operates. Figure 1

Juices Milk Cerals Boosters Drinks Infant Cereal Tea Drinks Swelty Skimmed Milk

Cats and Dogs Food


Maggi

Many factors influence the location and distribution of industries. These factors are: 1. The first factor is the availability and proximity of raw materials. Raw materials are the basic requirements of manufacturing industries. As shown in figure 2, Nestle uses a wide range of raw materials and the majority is imported. Raw materials have to be imported to promote industrial development. Means of transportation and communication plays a special role in bringing raw material to the factory. The factory needs to be close to the raw materials if they are heavy and bulky to transport. Figure 2

TABLE SHOWING THE ORIGIN OF THE RAW MATERIALS USED BY NESTLE FACTORY
RAW MATERIALS Cardboard Boxes Sugar Seaweed Skimmed Milk Apple Concentrate Orange and Grapefruit Concentrate Sorrel Concentrate ORIGINS Tetra pack Company in Germany (imported) Dominican Republic and Colombia (imported) Mrs. Bravo in Toco New Zealand (imported) Poland (imported) Belize (imported) Mediterranean (imported)

2. The second factor is transport. Industries are located where transportation is easily accessible. A good transport network helps reduce costs and make the movement of materials easier. Nestle is located in the town of Valsayn, which is along the East west corridor in Northern Trinidad between the Eastern Main Road, Urial Butler Highway, Churchill Roosevelt highway and Curepe. Refer to Map 1 Page_ Nestle is located near Piarco International Airport and is relatively close to the port area of Port-of-Spain for easier export and import activities. Refer to Map 2 on Page_ Nestle is located close to the port to reduce transportation cost of the imported raw materials and the exported manufactured goods. Nestle tankers transport milk from around the country to the factory. Milk is obtained from areas such as Woodland, Carlsen Field, U.W.I field station, Touray and Wallerfield. Therefore the Churchill Roosevelt highway, Eastern Main Road, airport and port all influenced Nestles location. 3. The third factor is labour supply. A large cheap labour force is required for labourintensive manufacturing industries. This is why Nestle located in Valsayn, so that there was a huge pool of potential workers close by. The food industry employs thousands of people with the bulk of labour living near the factory. At Nestle, locals make up the majority of the labour force. Refer to diagram below (Figure 3)

Figure 3

PIE CHART SHOWING THE DISTRIBUTION OF WHERE NESTLE EMPLOYEES LIVE


20% 30% Western Areas 20% South and Central Eastern Areas 30% East West Corridor

Valsayn is the site of Ciprianni College of Labour and Co-operative Studies and the University of Trinidad and Tobago. As a result the the highly skilled graduates provide Nestle with skilled labour. Thus the work force compries mostly of skilled labour. Refer to figure 4

Figure 4

GRAPH SHOWING THE LABOUR FORCE OF NESTLE FACTORY


90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Skilled Labour Unskilled Labour Labour

Therefore Nestle is ideally located since it is in close proximity of a labour force comprising of both skilled and unskilled labour. 4. The fourth factor is markets. Access to markets is vital, and this ties in with the section on transportation. Industries are also located close to the market because the product is expensive to transport. As Sheldon Bleasdel stated Trinidad has a well-developed system of transport infrastructure. These main roads provide accessibility throughout the country, thus providing rapid and efficient distribution of products from the factory, ensuring the freshness and quality of the products from being compromised. Nestle is

located near major roads and the port. Therefore the company is ideally located close to the markets. Refer to map page_ 5. The fifth factor is basic infrastructure. According to Vohn Rahil, industries are attracted to areas where there are basic facilities. Nestle is located where it possesses these necessities: A. Water-For any industry especially manufacturing, it is important to be near a reliable water supply. Nestles water supply is from two wells built on the compound. Very little water is obtained from WASA ( Water and Sewage Authority) B. Energy/ Power supply- Nearness to source of power or availability of power supply in an area will reduce the cost of production. In other words, this will fetch a higher income for a company as the money would be saved for the production of other goods or payment of employee salary. A constant supply of electricity is essential because the factory cannot afford a break in production. Nestle has a direct feed of electricity from Pt. Lisas, two stand by generators and is currently building a power station. C. Proper road network shown in map 1 page

6. The sixth factor is capital. Capital investment is a basic requirement for industrial development. The purchase of raw materials, equipment, upgrades and distribution of products requires a large available capital. Nestle company isnt funded by the

government; it is a Swiss based company that operates a franchise and is funded by shareholders. So although Nestle is not government funded it is still ideally located

CONCLUSION
It was proven that Nestle, a food processing industry in Valsayn, Trinidad is ideally located. The factors which influenced its location are the availability and proximity of raw materials, good transportation network, labour supply, its close access to markets, basic infrastructure and capital.

BIBLIOGRAPHY Wilson, M. The Caribbean Environment for CXC geography, Oxford University Press, UK, 2005 Rahil, V., New Caribbean Geography 4th edition, CEP Caribbean Education Publishers, Trinidad and Tobago, 2005 Niles, I., Modern Caribbean Geography, Macmillian Caribbean Publishers Limited, 2005