KEY CHAL­LENGES

WITHIN THE FOOD PRO­CESS­ING SEC­TOR

Progressive Grocer (India) - - Category Watch Processed Foods -

Some of the key chal­lenges in the food pro­cess­ing sec­tor in­clude: Lack of pro­cess­ing in the per­ish­able seg­ment: This arises due to a va­ri­ety of rea­sons like lack of pro­cess­ing tech­nol­ogy and fa­cil­i­ties, un­or­gan­ised na­ture of pro­cess­ing, lack of ad­e­quate in­fra­struc­ture for stor­age, etc. All this re­sults in a lot of wastage and loss of per­ish­able agri­cul­tural com­modi­ties. Lack of ad­e­quate stor­age fa­cil­i­ties along the value chain: Lack of proper stor­age fa­cil­i­ties along the value chain re­sults in problems of pro­cess­ing. Lack of pro­cess­ing tech­nol­ogy: The lack of ad­e­quate pro­cess­ing tech­nol­ogy in­hibits value ad­di­tion within the sec­tor. Poor value chain link­ages: A frag­mented value chain re­sults in sub­op­ti­mal out­comes that in­hibit the growth of the sec­tor. Link­ing from farm to fork is crit­i­cal for the ben­e­fits to flow to farm­ers. Lack of skilled man­power: Though a large num­ber of peo­ple are em­ployed along the var­i­ous ac­tiv­i­ties of the value chain, the fact re­mains that a large frac­tion of them are un­skilled. There is scope for pro­vid­ing them with train­ing for bet­ter­ment within the sec­tor. SME com­pet­i­tive­ness: A cru­cial el­e­ment and a ma­jor chal­lenge is value cap­ture by the SME seg­ment, which re­mains largely un­or­gan­ised. Value cap­ture can hap­pen when these play­ers com­ply to in­ter­na­tional stan­dards and look for growth op­por­tu­ni­ties af­ter achiev­ing scale in the do­mes­tic mar­ket. Lack of brand­ing and pack­ag­ing: Brand­ing and pack­ag­ing are of crit­i­cal im­por­tance within the sec­tor. SMES try­ing to com­pete with multi­na­tion­als have to keep these two fac­tors in mind, apart from lo­cal dis­tri­bu­tion and qual­ity prod­uct of­fer­ing.

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