Food Processing Industry: Types and Functions

India produces more fruits & vegetables in comparison to food grains.  With 268.9 Million Tonnes of horticultural production in 2012-13, India is second largest horticultural producer after China. At the same time, India is disappointingly ahead in loss of vegetables and fruits. As per APEDA (Agricultural and Processed Food Products Export Development Authority), India loses Rs. 13,000 to 15,000 Crore every year on waste of fruits and vegetables. The key reason for higher wastage of fruits and vegetables is non-availability facilities of temperature controlled storages. Only 2% of the perishable produce has that facility.

Drivers of Increasing Demand for Packaged Food

• In recent years, there is a surge in demand for fruits & vegetables as a result of a shift in consumption pattern; mainly due to rising incomes; hectic urban lifestyle and changing preferences.
• The health and value seeking urban consumers look for wholesome, nutritious and convenient solutions in packaged food. Due to this, the health and wellness has emerged as a new ingredient in processed food industry. This is partially because health conscious consumers prefer food products with lower carbohydrate content and with low cholesterol edible oils. This leads to rising demand of zero-percent trans-fat snacks and biscuits, slim milk, whole wheat products, etc.
• The enhanced packaging is also able to change consumers purchasing behaviour because of two reasons. Firstly, the packaging has increased shelf life of the processed food. Secondly, the consumers are able to compare the value offerings and choose best option before buying.

The farmers also shifting production towards horticultural crops to cash in on growing demand of packaged food. This leads to change on cropping pattern in some parts of the country whereby staple crops are grown with vegetables.

Types of Food Processing

Food processing encompasses all the steps that food goes through from the time it is harvested to the time it arrives on consumer’s plate. According to FAO (Food and Agriculture Organization), processed foods can be classified into three types viz. Primary, Secondary and Tertiary.

• The primary processing includes basic cleaning, grading and packaging as in case of fruits and vegetables.
• Secondary processing includes alteration of the basic product to a stage just before the final preparation as in case of milling of paddy to rice.
• Tertiary processing leads to a high value-added ready-to eat food like bakery products, instant foods, health drinks, etc.

Functions of Food Processing

Traditional food processing had two functions: to make food more digestible and to preserve food during times of scarcity as most crops are seasonal. By processing food, it can be customized to suit the nutritional requirements of groups such as the elderly, pregnant women, infants, young children and athletes. Modern food processing has three major aims:

• To make food safe (microbiologically, chemically).
• To provide products of the highest quality (flavor, color, texture)
• To make food into forms that are convenient (ease of use)

Global Food Processing Industry

The global processed food industry is estimated to be valued around USD 3.4 trillion and accounts for three-fourth of the global food sales. The global food industry is ever changing and evolving. However, health, convenience and value continue to be the key value propositions in this industry.

However, only 6 percent of processed foods are traded across borders compared to 16 percent of major bulk agricultural commodities. The United States and European Union together account for over 60 percent of total retail processed food sales in the world.

Trade liberalization policies through multi-lateral and regional trade agreements have led to a rapid growth in food processing. In the Asian region, Japan is the largest food processing market, but India and China are likely to grow at a faster rate in the next decade.