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

5. Dairy Milk Cheese Ice cream Butter powder

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

7. Grain Flour Cereal Pet Food Animal feed

8. Bakery Bread Cookies & crackers

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

10. Fats and Oils Animal Vegetable Very little in PA

11. Beverages Beer Wine Soft Drinks About half the jobs beer and half soft drinks – a little wine

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

13. Primary Reason for Plant Location in Pennsylvania

15. Traditional Issues Efficiency Competitiveness Demand New products New Technology

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

17. 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

18. 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