Food Processing AG BM 102
Introduction Adds value to farm production Creates products consumers want Employs lots of people ~ 90,000 in PA
An Overview Products Location Competition Issues
Meat Large Animal slaughter – a few plants Processed meats – lots of plants Poultry – several big plants A lot of consolidation going on – mergers across species – Tyson bought IBP
Dairy Milk Cheese Ice cream Butter powder
Fruits & Vegetables Canned (Furman’s) Dried Pickles, sauces etc. (Heinz) Frozen (Hanover)
Grain Flour Cereal Pet Food Animal feed
Bakery Bread Cookies & crackers
Candy Chocolate Other candy Gum PA largest candy producing state – Hershey and many more firms
Fats and Oils Animal Vegetable Very little in PA
Beverages Beer Wine Soft Drinks About half the jobs beer and half soft drinks – a little wine
Other Food Coffee Ice Fish Pasta Pretzels & snack foods (PA biggest in this) Other stuff Fastest growing category – new products
Primary Reason for Plant Location in Pennsylvania
Traditional Issues Efficiency Competitiveness Demand New products New Technology
Newer Issues Farm inputs Labor Water Solid waste Waste water Food safety
How many Food Companies will we have? Market growing slowly Lots of mergers – a long term trend Is Hershey too small to be independent? Heinz? Campbell’s? Food conglomerates common
Concluding Comments Key provider of consumer satisfaction Big recipient of food dollars Important to PA Big employer of students from PSU Works closely with suppliers & customers to do their job better