Mrunal (Food Processing) Supply Chain Management, Upstream Downstream Requirements For Fruit & Vegetables, Confectionery Industries Mrunal

3/5/2014
Mrunal [Food Processing] Supply Chain Management, Upstream Downstream requirements for Fruit & Vegetables, Confectionery industries Mrunal
[Food Processing] Supply Chain Management, Upstream Downstream requirements for Fruit & Vegetables, Confectionery industries
1. Prologue 2. What is supply chain management? 1. What is upstream-downstream? 2. What is Forward-Backward Integration? 3. Vertical integration 3. Food Industry: Supply Chain 1. FHELs Apple Business: Optimized Supply Chain 1. FHELs Apple Upstream 2. FHELs Apple Downstream 4. Fruit Veggies Processing (F&V) 1. Fruit-Veggies SCM: Upstream Requirements 1. #1: Need New Varieties 2. #2: Need more Cold Storages 3. #3: Transport 1. Horticulture trains 2. Kisan Vision Project 2. Fruit and Veggies SCM: Downstream Issues 1. Export Transport 2. Export: Regulatory issues 5. Chocolate /Confectionery Business 1. ChocoSCM@Upstream 1. #Sugar 2. #Cocoa 2. ChocoSCM@Downstream 6. Misc. useless Tables 1. Leading States: Fruits 2. Leading States: Vegetables 3. Big Companies: Fruit/Veggies Processing 4. Big Companies: Chocolate business
Prologue
In the previous articles we saw 1. Food processing industry: Awesomeness and Obstacles 2. Food processing industry: Truckload of Government Schemes and bodies 3. Marketing of agricultural produce: issues and constrains, Nuisance of APMC Acts and
Commission Agents 4. Agro/Food Processing: Export, Dumping, FDI, Finance, Taxation, Budget Provisions,
http://mrunal.org/2013/08/food-processing-supply-chain-management-upstream-downstream-requirements-for-fruit-vegetables-confectionery-industries.ht 1/19
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CODEX, NWR, BRGF, RKVY
Moving on, in this article we see topics UPSC General studies Mains Paper 3 Syllabus Topic Food processing upstream and downstream requirements, supply chain management. Topics touched in this article FruitVegetable Confectionary
1. Infrastructure: Energy, Ports, Roads, Airports, Railways etc. 2. transport of agricultural produce and issues and related constraints;
Horticulture trains
What is supply chain management?

Supply chain is a system that links a company with its suppliers and customers. Supply chain management (SCM) tries to optimize ^this system by 1. 2. 3. 4. getting the right things to right place at right time In a cost-effective manner.
What is upstream-downstream?
In any business, you get input (men/material)==>process it==>output (goods/service). In Supply chain, Upstream-downstream depends on the point of reference. For example, Point of reference Upstream Downstream 1. middlemen @Mandi 2. Food company (if he has contract farming agreement) 3. households (if he is directly selling to final customers)
farmer
Traders of seeds, fertilizer, pesticides and agro-machinery.
1. Farmers,
1. distributors
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food processing company
2. Mandi-agents 3. Suppliers of food-preservatives, edible-colors, plastic-aluminum packaging etc.
2. wholesalers 3. retailers 4. final-customers Aam-admi
Kirana shop Wholesaler Book publishers Mobile/electronics/computer companies Suppliers of packaging boxes, bubblewrap plastic etc.
Flipkart.com
Online buyers
In short, Upstream towards suppliers to your company (+ intermediaries if any) downstream towards consumers (+intermediaries if any)
What is Forward-Backward Integration?

Integration Backward Company expands its What activities to upstream areas Company aims to get raw material @cheap rates, uniform Why? quality, steady supply and eliminate any middlemen. 1. Amul sets up dairy farmers cooperative in villages to collect milk. 2. In the late 60s, Dhirubhai started Reliance for textile manufacture. But since polyester is made from petrochemicals, so he entered in
Forward Company expands its activities to downstream areas
Company aims to get more control over sales, consumer-contact and eliminate any middlemen/kiranawalla/wholesellers/retailers.
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Examples
Petrochemical business. But petrochemical is derived from Petroleum refining, so he moved into Petroleum refining as well. 3. Andrew Carnegies main business was Steel. Later he bought coalmines, iron-ore mines, even the ships and railways that transported raw material to his steel factories. 4. Starbucks (chain of coffee bars) buys coffee plantations in Central America. 5. When a Car company acquires a tire company, heavy engineering company acquires a steel plant etc.
1. Amul has its own pizza outlets and ice cream parlors. 2. Raymond opened an outlet in Karachi this year. 3. Nike, Adidas, Apple have their own retail outlets in big cities. 4. Flipkart has its own courier Ekart logistics so they dont have to rely on Bluedart, DHL and other courier companies to deliver packages. 5. And of course, if some Desi-liquor mafia opens dance-bars and gambling dens, that is also an example of Forward integration.
Vertical integration
When companys backward and forward integration is so good that it practically runs everything from making raw material to selling final product to final customer. Example Oil giants such as Shell/BP have their own oil wells (supply), refineries (processing) and petrol pump (retail). In other words, Vertical integration is achieved when Single firm absorbs several firms involved in all aspects of a products manufacture from raw materials to distribution. For Indian food processing industry, Vertical integration is extremely
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difficult because like we saw earlier: Indian food entrepreneurs are small sized and loan starved, while Vertical integration requires deep pockets and truckload of cash. FDI permitted only in a few specific sectors of Agriculture. Many states have outdated APMC laws. = backward integration is difficult. FDI in Multibrand retail is permitted but with many conditions.= Forward integration also difficult. So, what we can have is linkage. For example Setup promotes ____ linkage from ____s point of view food industrys farmers
Backward Mega Food parks Rythu Bazar forward
Food Industry: Supply Chain

Indian Food processing supply chain has two type of Stakeholders stakeholder those included in Supply Chain Who? 1. Creators: Farmers, Food Entrepreneurs 2. Contributors: Middlemen, Retailers, Commodity Exchange 3. Consumers: Domestic And Foreign 4. Government: Laws, Taxation, Incentives 5. Infrastructure: Transport, Storage, Power
those influencing supply chain
Based on level of processing, we can classify food products into: Processed What? Products Products consumed in the original state. Dont have any no value Primary addition. (e.g. just chop apple from the tree, pack it in wooden-boxes and send to market) Basic level of processing: grading, sorting, cleaning, cutting, drying, Secondary grinding etc. before they are consumed. (e.g. dried fish, turmeric powder, chili powder, wheat flour.) Combining multiple primary, secondary products from above and Tertiary doing high value addition (e.g. ice creams, biscuit, jam, cakes, pastries etc.) As you can imagine: tertiary food products ought to have a longer supply chain than primary products because tertiary food products need variety of inputs. But in India, even primary processed food too has a lengthy supply chain thanks to dozens of intermediaries before farm produce reaches the fork.
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Observe the following diagram:
click to enlarge As you can see this supply chain is lengthy and fragmented= high cost and wastage. An ideal fruit supply chain should be similar to FHELs.
FHELs Apple Business: Optimized Supply Chain

Container Corporation of India (CONCUR)= a PSU under Railways ministry. Fresh and health Enterprises ltd (FHEL) = subsidiary company under CONCUR, started in 2006 to create world class cold chain infrastructure in the country
FHELs Apple Upstream

FHEL directly procures Apples from Shimla & Kinnaur districts of Himachal Pradesh and transports them to Sonepat for sorting, grading, packing & storage. Company has its own trucks, as a result apples reach to from HP to Sonepat within a day. FHEL sends Agro-scientists to the Apple farmers on its own cost. These scientists interact with the farmers, help improving apple quality and productivity, post-harvest management. FHEL also arranges all inputs required by the farmers like
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Raw Material
Uniform Quality
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nutrient packages, pesticides/ fungicides, packing materials, farm implements, etc. FHEL was among the first companies to procure apples directly Middlemen from the farmers and has now refined the procurement system. This has eliminated middlemen in the chain. FHEL works in an open and transparent manner (unlike UPSC), therefore, when FHEL procures apples, all the farmers in Himachal Pradesh know the rates offered by it. This acts as a benchmark and all the farmers are able to bargain well with other apple traders. The company has state-of-the-art storage technology to ensure that the apples last upto 8 months in the storage + sorting, grading, packaging facilities.
Price
Storage
FHELs Apple Downstream

FHEL sells its apples 1. via Marketing Associates in Delhi, Mumbai, Chennai, Ahmedabad and other big cities 2. Via Cash and Carry wholesale or Retail Chains such as Bharti Wal-Mart, Big Bazaar, Aditya Birla retail, etc. With the above upstream and downstream arrangements, FHEL has shortened and optimized its supply chain and as a result 1. less spoilage / wastage of apples 2. More profits to both company and farmers, since middlemen are eliminated. 3. Apple available at cheaper price to consumers Ok well and good for FHELs apples but most of the Indian food processing industries dont have such supply chains. From the last three articles on [Food Processing], we can derive a few common points What are the upstream requirements for efficient supply chain management? (From Food entrepreneurs point of view) Upstream requirement 1. Need backward linkage with farmer: via contract farming 2. Need to eliminate middle-men. solution
1. Amend State APMC laws.
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3. need uniform high quality raw material
2. 3. 4. 5. 6. 7.
R&D and exertion services in agro introduce new fruit/veggie hybrid varieties farm mechanization land reforms farmers should easily get loans FDI only permitted in a few specific agrosectors. Relax this policy.
4. Need steady supply of inputs @reasonable prices
8. cold storage infrastructure for seasonal raw material e.g.potatoes 9. Reduce indirect taxes on agro-produce, packaging material, preservatives, food colors and other chemicals. 10. railroad connectivity
5. quick transport
Next, What are the Downstream requirements for efficient supply chain management? (From Food entrepreneurs point of view) Downstream-Requirement Organized retail stores, for efficient distribution of products solution FDI in Multibrand retail
Reaching the costumers in foreign countries
compliance with CODEX, HACCCP standards R&D, product development, packaging keeping those foreigners in mind Promotion of Indian products abroad less taxes on air-cargo more efficient cargo handling at ports better railroad connectivity with ports
Fruit Veggies Processing (F&V)

In the first article we had seen the scope-significance of entire food processing industry. Now lets get more additional points specific to Fruit-veggies industry:
Top 5 States
VEGGIES FRUITS
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UP WB Bihar Odisha TN
Andhra MH Guj TN Karnataka
Big list of individual fruit/veggie grower states= given at bottom under the title Misc.
Export potential
Processed Food Mango Pulp Pickles, Chutney Tomato Paste, Jams, Jellies And Juices demand and export potential in Saudi Arabia, Kuwait, UAE, Netherlands and Hong Kong Saudi Arabia and UAE, USA, UK and Germany USA, Russia, UK, UAE and Netherlands.
Fruit Juice demand

More youth + Higher disposable incomes + heath consciousness=> Urban junta preferring fruit juices over carbonated drinks (e.g. Thumbs up, Coke) In 2012, Fruit Juice segment was more than 50 billion rupees. This shift is creating newer opportunities: Exotic flavors: cranberry, lychee and pomegranate, Vitamin, nutrient or fiber-enriched fruit juices. Big players have responded to this trend by focusing on their non-carbonated soft drinks (+More ads using Bollywood celebrities like SRK, Kat, Bips) Fruit juice product Slice, Tropicana Real Maaza Frooti Boss Pepsico Dabur Coca Cola Parle Ago
Fruit-Veggies SCM: Upstream Requirements

#1: Need New Varieties
Almost 1500 mango varieties are grown in India but only 3-4 of them are worthy of export but they too face problems: Alphonso Famous and highly valued. But due to its thin skin, it can only remain Mango fresh for 20 days (even in cold storage) = low shelf life. Totapuri Cheaper than Alphonso mangoes and have higher pulp content. But Totapuri mangoes banned in some foreign countries due to stone
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mangoes weevil pest Similar problem for other fruits/veggies: Raw quality problem material Potato Most Indian potato varieties = dont have uniform size and length=> cant make good chips/French fries. Very old variety grown in India= high bitterness level and pip content. Pepsi and Dabur import orange juice concentrate for their juices India grows red delicious variety = very cheap and hence preferred by Desi costumers But this apple varieties has cardboard-like texture and peculiar taste that foreigners hate. Hence US/EU consumers prefer New Zealand / Australian Apples over Indian.
Orange
Apple
Nuisance of Middlemen
For most fruits, the cultivation/gestation period at least 3-4 years. But banks dont easily give loans to farmer for such long period. Hence difficult to encourage farmers to experiment with new varieties of fruits/veggies, even if the new variety has more profit/export potential. Given this lack of timely financing from banks / financial institutions, the fruit-farmer goes to middlemen, who advance money to the take the farm on lease. Then middlemen manipulates selling prices, to enhance their margins. e.g. Indian Mangoes=wide price fluctuations in Middle-east. South American countries offer more consistent prices and are a threat to India. Indias dominance in the pulp sector is gradually eroding due to this factor What is the solution/requirement? 1. Research-development (R&D) to make new varieties of fruits n veggies with longer shelf life, disease resistance and export quality-uniform size-lengthcolor-texture. 2. Government should promote cultivation specific fruits and vegetables in a specific states. It would lead to ease in monitoring of new verities + uniform quality=> easier to process + export worthy. For example Raw What to do? Material Where to focus?
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http://mrunal.org/2013/08/food-processing-supply-chain-management-upstream-downstream-requirements-for-fruit-vegetables-confectionery-industries.
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Orange Potato
Develop varieties with low-bitterness, suitable for juice-processing Develop varieties suitable for processing into French fries, Chips (low sugar content, uniform length) Encourage cultivation of foreign Varieties from NZ, S.Africa etc.
Maharashtra, Andhra Pradesh UP , West Bengal, Gujarat
Apple Mango Sapota Litchi Onions
Jammu & Kashmir, Himachal Pradesh Identify other varieties for processing, and reduce UP , AP , TN, dependence on Totapuri, Alphonso Maharashtra Focus on cultivation of uniform size, firm fruits Karnataka, with longer shelf-life Maharashtra, Cultivate varieties with higher shelf life, and Bihar, West smaller seed size Bengal Cultivate sweet and white onions- they have export Maharahstra demand
Partnership/Collaboration
As we saw above, Indian orange=bitterness=not good for juice making. Pepsi imports FCOJ (Frozen Concentrate of Orange Juice) as raw material for its Tropicana juice brand Recently Pepsi and Government of Punjab have partnered to promote cultivation of new orange variety in Punjab, to reduce dependence on the imported FCOJ. More such partnerships are necessary in the Fruit-veggie sector R&D.
#2: Need more Cold Storages

Why is Cold storage important? 1. 2. 3. 4. 5. Reduces losses due to spoilage Reduces gluts and distress sale by growers, Reduces transport bottlenecks at the peak period of production, Maintains quality of the produce Ensures that a crop harvested over a period of one or two months is capable of serving the round the year market demand.
#investment in cold storage

Broadly, fruits & vegetables can be classified into three segments, based on their shelf-life in cold storage Shelf lifein Cold Storage A Long (6-8 Example Does it attract investment? Most investment comes here. Especially for potato- for hoarding
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Potato, Apple, Chilies
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moths) Moderate(8- Grapes, Pomegranates, 10 weeks) Banana, Tomatoes Papaya, Melons, Gourds, small (few C Cabbage, Cauliflower, days) Leafy Vegetables. B
during lean season. not much investment coming here, Except few export oriented chains. hardly
Needless to say, for category B and C, government needs to provide innovative taxreliefs/incentives to attract more investment. There has been a relative neglect of the non-horticulture cold chains especially those relating to meat, poultry and fishing. State Governments need to actively work on these cold chains via their Animal Husbandry & Fisheries Departments. In cold storages, following technologies need to be adopted 1. 2. 3. 4. Use of Global positioning system (GPS), better electronic weighing systems, local language billing machines General Packet Radio Services (GPRS) for updating the details on the central server for storage and movement of produce in and out of cold storages
Non Horti
New tech
#Electricity
Desi cold storages have high operation cost than their foreign counterparts, mainly because of high consumption of electricity. Reason: Food entrepreneur doesnt buy efficient (and expensive) equipment on Engineers advice. Instead, they buy cheap quality equipment on CAs advice. Why? Because we saw earlier, government schemes have lowceilings + if project cost increases too much food-entrepreneur wont get loans under Priority sector lending of Bank and wont be eligible for various tax benefits available to MSME industry.
#3: Transport
Government: enhance road-connectivity to rural areas. Entrepreneur: needs to get easy loans for reefer vans and refrigerated trucks. Railways: Introduce dedicated horticulture trains. More frequency of freight trains in agro-regions.
Horticulture trains
Who? 1. National Horticulture Board (NHB) 2. Container Corporation Limited (Concor), under Rail Ministry
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Because conventional goods trains have following problems Why? 1. have no ventilation => fruit/veggie gets rotten 2. Since there is no ventilation, they keep the doors open =>theft during transport. 3. slow speed 2009: idea mooted under Kisan Vision Project of Indian Railways in 2009. 2012: Horti train between Maharashtra and Delhi, with banana and potato as core cargo. 12th FYP: 100 crores to be spent on this project
When?
Benefits/Features of Horticulture trains: 1. Specially designed containers with good ventilation=>increases the shelf life of the produce 2. Container train has been designed to run at a top speed of 100 kilometre per hour (kmph) as against the maximum speed of 75 kmph of conventional railway wagons and trucks= faster delivery less rotting. 3. Accepts small quantities, to the unit of one container without agents or middleman. Even small farmers who wish to transport goods to various destinations now have the chance to do so without coughing up huge sums to middle-men or clearing agents. Lets see an example, Banana Train= connects Maharahstra to Delhi. Lauched in Sept.2012 core cargo Banana direction
Jalgaon (MH) to the rail yard of the Azadpur mandi in Delhi.by the way, Azadpur Mandi @Delhi= Asias biggest market for fruits and vegetables. Potatos in the return journey (i.e. from Delhi to MH). If train returns empty with no cargo=uneconomic. In Delhi-Maharashtra route, we connected them with Banana and potatoes. Similarly following projects should be considered: 1. Delhi to W.Bengal (Apples) and return WB to Delhi (potatoes) 2. JK to Delhi (Apples) and return Delhi to JK (potatoes: originally from WB)
Kisan Vision Project

Who? Railway Ministry When? Mamtas rail budget 2009* To encourage creation of facilities of setting up cold storage and Why? temperature controlled perishable cargo centres through Public Private
http://mrunal.org/2013/08/food-processing-supply-chain-management-upstream-downstream-requirements-for-fruit-vegetables-confectionery-industries. 13/19
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Partnership (PPP) PPP via public sector logistics viz. How? 1. Container Corporation of India Ltd. (CONCOR) 2. Central Warehousing Corporation (CWC) 3. Central Railside Warehouse Company Ltd. (CRWC)
*Although topic is from 2009 but been in news in August 2013 for: 1. Rail Ministers reply in Parliament (available @pib.nic.in) 2. News reports on how it is #epicfail And for us, it becomes important for GS Paper 3 because UPSC syllabus contains 1. Infrastructure: Energy, Ports, Roads, Airports, Railways etc. 2. transport of agricultural produce and issues and related constraints; Anyways, under this Kisan Vision project, 6 Perishable Cargo centers were to be developed at: 1. 2. 3. 4. 5. 6. Nasik (Maharashtra) New Azadpur (Delhi) New Jalpaiguri (West Bengal) Singur (West Bengal) Dankuni (West Bengal) Murshidabad (West Bengal)
A Pilot project was started @Singur, WB in 2009 itself but yet to take off because Although facility has the capacity to store more than 1,000 tonnes of potatoes, but lack of proper roads for trucks to enter the area. Recall the criticism of government schemes from earlier article. Most schemes seek to get investors to pump money in (Cold storage) infrastructure without providing the necessary (road) support for the utilization of the infrastructure. Cold storage projects have to be near the market, especially the multi-purpose ones. This project was located far away from the market and could not find many takers.
Fruit and Veggies SCM: Downstream Issues

Export Transport
It takes about 3 weeks to send Mango from India to EU via sea=> sea transport is unsuitable for Alphonso Mango export. Youve to transport it via air Indian air-cargo-transport=> fuel surcharge and variety of taxes. Combine that with exchange rate difference =Pakistani mangos are cheaper in EU compared to Indian mangos. Similarly Terminal handling charges at several ports are also high (compared
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to Hong Kong etc). poor frequency of ships / flights leaving from various ports / airports need customs clearance=>inefficiency, delays, bribes All ^these results into 1. wastage of perishable food/veggies 2. Higher cost of transport => product price increased in destination country = pricewise, it becomes uncompetitive.
Export: Regulatory issues

Japan Indian mangoes without Vapour heat treatment (VHT)=banned. Australia Indian mangoes import facing problem due to fruit fly USA Indian mangoes import facing problem due to Stone weevil. EU and in the Middle East follow CODEX standards when importing fruit based products. Indias problem: Lack of post-harvest treatment facilities such as for vapor treatment Lack of packhouses from farm to port. Even after complying with these requirements, Indian exporters need to invite and sponsor visits of the quarantine departments of the relevant importing country for lifting of the ban. Such visit / inspection costs about ~ USD 100,000/visit/person Similarly for grape exporters: the cost of EurepGap certificate Rs.75000 / farmer. APEDA (under Commerce Ministry) provides financial help for Eurepgap certification, more fruits and veggies need to be given similar help to meet with the certification/ requirements in foreign markets.
Retail
As we saw in the first article, The Kirana-wallas in USA (known as mom and pops stores) have cold storage / refrigeration hence they can sell fresh fruits/veggies but our cart-pullers, small-veggies sellers dont have such facilities=wastage. Hence FDI multi-brand=necessary for the growth of fruit-veggie industry and to contain food inflation. lets move to next sector:
Chocolate /Confectionery Business

Scope/significance:
The per capita chocolate consumption in India is much lower than most European countries. But there is lot of potential in upcoming years, because: 1. Increased disposable incomes, newly rising middleclass = higher propensity to spend on impulse categories such as chocolate. 2. Chocolates-sale no longer confined to children only. Companies trying the
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power of advertisement to attract: Youth= Those ads involving romance/valentine day angle. Middle-aged= Chocolate gift boxes for Diwali and Raksha-bandhan etc. This advertisement model has been successful in China, chocolate box gift has become a routine-gift for wedding receptions. Year Chocolate business in billion Rs. 2012 60 2017 (Projected) 140 (^doesnt include the income of Dentists.)
ChocoSCM@Upstream
#Sugar
(same can be used for soft-drink industry) woolly aphid (an insect pest) causing high damage to sugar crops in Maharashtra and Karnataka UPs yields are much lower than TamilNadu. successive increase in sugarcane prices in past years, mainly politically driven= abnormally high cost of production of sugar This Increase in raw material (sugar) prices has hurt profit margins of confectionary units because companies are unable to pass on the higher costs to consumers. ^To put this in other words- the dairy owners can form a cartel and raise milk prices every month, but youll still purchase it, because milk is an essential item. But If toffee makers form a cartel and raise price of 1 toffee from one rupee to two rupees, then most people will stop buying or giving additional pocket money to their kids! Meaning toffee-maker cannot pass the increased raw material cost to the final consumers. Hence Desi confectionary industry wants rationalization of the sugarcane pricing policy. For more read Ranagarajan Sugar committee article click me.
#Cocoa
Kerala is the leading cocoa producing state in the country but industrial demand is significantly higher, estimated at nearly three times the cocoa cultivation. But cocoa cultivation= Inadequate marketing network + fluctuations in prices =farmers feel insecure. Indian varieties of cocoa=low chocolate yield. Need R&D, Need to introduce superior varieties using clonal technology to improve yields. Cocoa buying attracts >10% purchase tax in Kerala= input cost increased for confectionary unit.
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Base Gum
Weve to import most of the basegum (for chewing gum) from Europe and South East Asia=>manufacturing cost increased. Need to promote R&D and production for base gum within India.
@Processing
To create new demand and to attract health conscious adult consumers, industry needs to develop sugar-free, fruit based gum, vitamin-enriched products, breath strips etc. like the Americans are doing to attract the diabetes patients. In developed markets, consumers buy chocolate/toffees in large pack. But Indian consumer=price conscious, hence toffees usually sold in single unit (e.g. 1 clairs for 1 rupee) smaller/Individual package=need more plastic=Operation cost increased
Innovation
Packaging
ChocoSCM@Downstream
Unorganized/non-branded toffee makers= evade taxes. This puts organized confectionery (branded players) at a disadvantage, especially in rural areas. local kirana stores and large retailers, paan and cigarette outlets are covered extensively But cost of distribution is high particularly to rural outlets In Toffee business youve to lure kids by offering free tattoos, stickers, toys etc. In the aspect, Indian toffee makers are far behind their American/European counterparts. Currently, African countries= dominated by Brazilian confectionary import. Much potential for Indian toffee makers. In China, the recent trend of gifting chocolate at wedding banquets has led rise demand for premium-chocolate gift packs, we can make an entry Chinese market too. Indian confectionery products dont find demand in US/EU due to lack of innovative products/flavors compared to their local producers. But The Indian industry can engage in contract production for foreign brands, given the lower manufacturing costs in India. (chocolate outsourcing)
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Taxation
Reach
freebies
Export Potential
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Misc.Useless tables
Just some stupid Tables for informative purpose only, otherwise hardly relevant from exam point of view.
Leading States: Fruits

Fruit Banana Mango Citrus Papaya Guava Grapes Pineapple Apple Litchi Sapota Total fruits (incl others) leading producer Maharashtra, Tamil Nadu, Karnataka Andhra Pradesh, Uttar Pradesh, Bihar Maharashtra, Andhra Pradesh, Karnataka Andhra Pradesh, Karnataka, West Bengal Bihar, Maharashtra, Karnataka Maharashtra, Karnataka, Tamil Nadu West Bengal, Assam, Bihar Jammu and Kashmir, Himachal Pradesh, Uttaranchal Bihar, West Bengal, Assam Karnataka, Maharashtra, Tamil Nadu, Andhra Pradesh Maharashtra, Andhra Pradesh, Tamil Nadu, Karnataka
Leading States: Vegetables

Potato Brinjal Tomato Tapioca Cabbage Onion Cauliflower Okra Peas Sweet Potato Total veg. (incl others) Uttar Pradesh, West Bengal, Bihar Punjab West Bengal, Orissa, Bihar Maharashtra, Karnataka, Bihar, Andhra Pradesh Tamil Nadu, Kerala, Andhra Pradesh West Bengal, Orissa, Bihar Maharashtra, Karnataka, Gujarat West Bengal, Bihar, Orissa Bihar, Orissa, West Bengal, Uttar Pradesh, Jharkhand, West Bengal Orissa, Uttar Pradesh , West Bengal West Bengal, Uttar Pradesh, Bihar Orissa
Big Companies: Fruit/Veggies Processing

Jam Pickles Sauce / Ketchup Juices / Fruit based drinks Squashes Ready to Eat Vegetables Hindustan Unilever, Mapro, Marico , Malas Priya foods, Praveen, Desai Brothers, Cavin Kare, GD Foods Hindustan Unilever, Nestle, Heinz Pepsi, Dabur , Parle, Godrej, Mother Dairy Hindustan Unilever, Haldiram, Mapro Tasty Bite, ITC, MTR
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Potato chips Cooking pastes
Pepsi Dabur, Hindustan Unilever
Big Companies: Chocolate business

Company Perfetti Parrys/ Lotte Parles GDC/ Joyco brands of chocolate/chewing gum etc. Brooklyn, Big Babool, Alpenliebe, Center Fresh, Chlor Mint, Golia, Cofitos Coffy Bite, Lacto king, Coconut punch, Caramilk, Madras Cafe, SoftSpot, Flavoured Candy, Mango, Sunshine, Shakti, Pineapple Melody, Mango bite, Kismi, Poppins, Rola cola, LuxDairy, Peppermint, Rosemint Boomer, Bonkers, Donalds,PimPom, Mickey,Bonkers
Minto, After smoke, Candy king, Americano, Orange-tutti frutti, Candico Drum Beat, Vanilla Roll, Elaichi roll, Big Freedom, Jumbo-Gumbo, LocoPoco, Minto-Fresh Ravalgaon Pan pasand, Mango mood, Coffee breakSupreme, Nestle Polo, Allens Splash, Soothers, Toffo Butter, Fruit Rings, Foxs Cadburys Googly, Mocka, English toffee, Frutus, Gollum, Eclairs, Pops. Next time we see upstream downstream issues related to milk-meat-marine, teacoffee-liquor-oil etc.
URL to article: http://mrunal.org/2013/08/food-processing-supply-chainmanagement-upstream-downstream-requirements-for-fruit-vegetablesconfectionery-industries.html Posted By Mrunal On 29/08/2013 @ 18:42 In the category Economy
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Mrunal (Food Processing) Supply Chain Management, Upstream Downstream Requirements For Fruit & Vegetables, Confectionery Industries Mrunal

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CODEX, NWR, BRGF, RKVY

What is supply chain management?

Traders of seeds, fertilizer, pesticides and agro-machinery.

food processing company

2. Mandi-agents 3. Suppliers of food-preservatives, edible-colors, plastic-aluminum packaging etc.

2. wholesalers 3. retailers 4. final-customers Aam-admi

What is Forward-Backward Integration?

Forward Company expands its activities to downstream areas

Backward Mega Food parks Rythu Bazar forward

Food Industry: Supply Chain

those influencing supply chain

Observe the following diagram:

FHELs Apple Business: Optimized Supply Chain

FHELs Apple Upstream

FHELs Apple Downstream

1. Amend State APMC laws.

3. need uniform high quality raw material

4. Need steady supply of inputs @reasonable prices

Reaching the costumers in foreign countries

Fruit Veggies Processing (F&V)

Andhra MH Guj TN Karnataka

Fruit Juice demand

Fruit-Veggies SCM: Upstream Requirements

Maharashtra, Andhra Pradesh UP , West Bengal, Gujarat

Apple Mango Sapota Litchi Onions

#2: Need more Cold Storages

#investment in cold storage

Potato, Apple, Chilies

Kisan Vision Project

Fruit and Veggies SCM: Downstream Issues

Export: Regulatory issues

Chocolate /Confectionery Business

Leading States: Fruits

Leading States: Vegetables

Big Companies: Fruit/Veggies Processing

Potato chips Cooking pastes

Pepsi Dabur, Hindustan Unilever

Big Companies: Chocolate business

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