1. Opportunities in Food Production “Success is 20% skill 80% concentrated power of will” – Mike Shinoda

2. Opportunities in Food Production 1.Agriculture 2.Manufacturing 3.Quality Food Safety & Food Law 4.New Product Innovation 5.Process Innovation 6.New market development & export 7.Engineering

3. Agriculture Food processing sector is directly affected by agric output and prices Agriculture is highly vulnerable to climatic conditions In-spite of variability, agric sector is thriving Many raw crops are exported, processed outside and finished good imported back to South Africa Opportunity to add value to agricultural products High focus on sustainable agriculture Secure unique species Maintain healthy ecosystems Reduce environmental impact of farming Agricultural productivity 4x lower than in manufacturing sector Opportunity in crop innovation and efficiency improvement

4. Manufacturing DTI has identified food processing as a priority area in SA economy Food is the largest manufacturing sector by employment Food processing employees 183 000 people (15% of total manufacturing employment), has t/o of R57billion, accounts for 2.4% of GDP. Meat processing is largest food subsector (25% total food processing) Most sectors are highly lucrative and is a critical source of sustainable employment In manufacture, highest need for highly skilled people – must know process Balance performance indicators vs. Quality. Cost, Throughput Maximise all equally, but biggest impact is line throughput/efficiency Theory of constraints big impact on throughput Raw material quality affects process and final product quality Manufacture team must manage performance daily

5. Constraints Management

6. Management for Daily Improvement: Management for Daily Improvement: -

8. Quality Control, Assurance and Food Regulation Quality of product is a definition of the consumer’s expectation Manufacturing must become more consumer facing Evolution from Quality “Control” to “Assurance” Process control gave rise to Quality Assurance Quality affected by plant reliability Quality has direct impact on cost Quality is somewhat negotiable Food Safety is a non-negotiable element Food Safety program integration into QA program Opportunities within QC, QA, FS are many, but the main aim of this is the protection of the consumer to: Deliver to the consumer’s expectations Ensure the consumer is not harmed by the product

9. Quality Control, Assurance and Food Regulation

10. Quality Control, Assurance and Food Regulation The Consumer Protection Act CPA regulates supplier activities for the consumer’s rights Suppliers of goods & services and their agreement/transaction is covered by CPA Amongst others, the CPA prohibits unwanted/misleading marketing or descriptions, unjust pricing, assumptions made on the part of the consumer, supply of unsafe or hazardous goods. CPA obligates plain descriptions, clear and full disclosure and product return/refund if unsatisfied Many other regulations including: R918 - Food premises and transport regulations Food Cosmetics & Disinfectants Act Trade & Metrology Act Opportunities within regulations is to align business with regulation or company policy (whichever is stricter)

11. Innovation Innovation is the creation of better or more effective products, processes, services, technologies, or ideas productsprocessesservicestechnologiesideas New product development keep markets interested Process innovation keep companies competitive Innovation must follow a process: Concept Investigation on feasibility Time plan Testing, implementation and commissioning Performance measure Hand-over and sign off Post implementation evaluation New products or process are disruptive and must be controlled and monitored closely Companies who innovate succeed!!

12. Market Development & Export All engineering disciplines “play” in the food industry Mechanical Electrical Civil Industrial Food engineering Engineering EU and US exports are very static In recent years Africa export is a huge focus for SA Challenges & opportunities in Africa export is distribution and logistics. Must understand importing country’s regulations

13. Thank you Food industry has many challenges but so many more opportunities!