1. Food Processing AG BM 102

2. Introduction Adds value to farm production Creates products consumers want Employs lots of people ~ 90,000 in PA

3. An Overview Products Location Competition Issues

4. 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

6. Boxed Beef

7. Seltzer’s Lebanon Bologna

8. Chicken Plant

9. Dairy Milk Cheese Ice cream Butter powder

10. Ritchey’s Dairy Ice Cream

11. Land O’Lakes Butter/Powder Milk Plant

12. Farmstead Cheese

13. Fruits & Vegetables Canned (Furman’s) Dried Pickles, sauces etc. (Heinz) Frozen (Hanover)

17. Grain Flour Cereal Pet Food Animal feed

18. Brown’s Flour Mill

19. Rollstands

20. Sifter

21. Flour Trailer on Scale

22. Bakery Bread Cookies & crackers

23. Candy Chocolate Other candy Gum PA largest candy producing state – Hershey and many more firms

24. Fats and Oils Animal Vegetable Very little in PA

25. Beverages Beer Wine Soft Drinks About half the jobs beer and half soft drinks – a little wine Produce near consumer

26. Other Food Coffee Ice Fish Pasta Pretzels & snack foods (PA biggest in this) Other stuff –Fastest growing category – new products

27. Primary Reason for Plant Location in Pennsylvania

29. Traditional Issues Efficiency Competitiveness Demand New products New Technology

30. Newer Issues Farm inputs Labor Water Solid waste Waste water Food safety

31. 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

32. Concluding Comments Key provider of consumer satisfaction Big recipient of food dollars Important to PA Big employer of PSU grads Works closely with suppliers & customers to do their job better