Commercial Food Commercial Food Processing OpportunitiesProcessing Opportunities

Dr. N.VaradharajuProfessor & Head

Post Harvest Technology CentreAgricultural Engineering College & Research Institute

Tamil Nadu Agricultural UniversityCoimbatore 641003

Need for Food processingNeed for Food processing

Food production in India to double in the next tenyears.

India will add more than 500 million people in the 40years.years.

Today the total food market is approximately US$69,444 million.

Consumption of value added processed food to treble

Food is one of the highest economic multipliersamong Indian industries

ContdContd..

Today value addition to food production is only 7 per cent

India has the potential to become the largest food India has the potential to become the largest food factory

Value added foods produced from the food industries would reach Rs. 2,75,000 crores by 2010

Investment OpportunitiesInvestment Opportunities

Diverse agro-climatic condition, it has a wide range and large raw material suitable for food processing sector

Biggest emerging sector to market over 1billion population50 per cent of population are under 30 years50 per cent of population are under 30 years250 to 300 million are in middle class

Per capita consumption levels of processes foods are low

Demand for convenience foodsIncreased female literacyIncreased number of working women

Contd.Contd.

Institutional & Tourism sectors Hotels, Airlines, Hospitals and Defence Services

Government accord high priorityInvestment reforms Investment reforms

Agriculture In IndiaAgriculture In India

Contributes 29.1% to GDP69% of work force depends on Agriculture 22 % of export from agricultural products

Major AchievementsMajor AchievementsMajor AchievementsMajor Achievements Self sufficient in food grain production (210 million tones)

Ranks second in fruits (48 million tones) and vegetable production (98 million tones)

Largest producer of milk (72 million tons )

Food Processing Sector

Green Revolution

White Revolution

Blue Revolutio

India- worlds largest food factory- over 27,500 units (both large and small)

Yellow Revolution(Post Harvest Processing)

Post Harvest LossesPost Harvest Losses

Food grain sector : 812%

Fruits and vegetable : 2030 %

Pre-harvest Factors 3-5%Harvest 2-5 %Packaging 3-6 %Transport 1-4 %Storage 4-8 %Processing 1-5 %Handling 1-5 %Urban Distribution 2-8 %Total Losses 18-48 %

Important Sub sectorsImportant Sub sectors

Cereals & pulse processing Fruit & Vegetable Processing Milk Processing Meat & Poultry Packaged & Convenience Food Alcoholic & Non Alcoholic Beverage

Progress of Fruits and Vegetable Progress of Fruits and Vegetable Industry in IndiaIndustry in India

Particulars 2000 2005

Production of processed Foods 9.9 12.5Production of processed Foods(Lakh tons)

9.9 12.5

Installed capacity (Lakh tons) 22.0 29.0

No. of Licenses issued under FPO 5293 5856

Reasons for Under Utilization of Processed Reasons for Under Utilization of Processed Foods in IndiaFoods in India

High cost of processed foods

Low quality raw material affecting the final qualityof processed foodsof processed foods

Prevailing rules and regulation and high tax for processed foods

Contd.Contd.

Lack of knowledge about process, equipment & technology

Lack of proper infrastructure like electricity,good quality water, communication facilities,good quality water, communication facilities,etc.

Inadequate cold storage and refrigerated facility

Domestic Market

Factors Triggering Potential for New Products

Increasing nuclearisation of families

Increasing number of working women

Convenience Foods, semi cooked

Ready to cook / eat foods

Market NeedsMarket NeedsMarket NeedsMarket NeedsMarket NeedsMarket NeedsMarket NeedsMarket Needs

women

Changing role of Women

Increased health consciousness

Changing Retailing System

Ready to cook / eat foods

Organic foods, Natural Colours, Flavours, Neutraceuticals,

Fortified foods, Energy Foods, Low Fat Foods, Sprouted Foods

Packed & Branded Commodities

Export Market

Competitiveness for Indian fresh and processed foods

Increasing number of Indian population Increasing number of Indian population in foreign countries

Acceptance of Indian Food in Foreign Markets

APEDAs SCHEDULED PRODUCTS

Fruits, Vegetables and their products Meat and Meat Products Poultry and Poultry Products Dairy Products Confectionery, Biscuits and Bakery Products Confectionery, Biscuits and Bakery Products Honey, Jaggery and Sugar Products Cocoa Products Alcoholic and Non-Alcoholic Beverages Cereal Products Groundnuts, Peanuts and Walnuts Pickles, Papads and Chutneys Horticulture and Floriculture Products Herbal and Medicinal Plants Rice (non-Basmati)

Methods Examples

Physical Method

Thermal processing, Concentration/drying/Dehydration, Sterilizing, Filtration, Radiation/Irradiation, etc.

Methods of Food Preservation with Methods of Food Preservation with ExamplesExamples

Chemical Method

Solidification (salting), Saccharification (sugar addition), Artificial acidification, Gaseous preservation, Ethyl alcohol addition, etc.

Biochemical Method

Lactic fermentation (natural acidification), Alcoholic fermentation

Combined Method

Combination of above methods

Fruit and Vegetables processing 18% of gross agricultural product

Indias share in world trade is @1%

Major exports: fruit pulps, pickles, chutneys, canned fruit & vegetables, conc. juices and dehydrated vegetables

a) Tomato Paste : 15,00,000 MTMajor Importers : Germany, UK, Japan

b) Banana Puree : 1,20,000 MTMajor Importers : USA, Japan, Russia, EU Countries

Market for Multipurpose Fruits & Vegetables PastesMarket for Multipurpose Fruits & Vegetables PastesMarket for Multipurpose Fruits & Vegetables PastesMarket for Multipurpose Fruits & Vegetables PastesMarket for Multipurpose Fruits & Vegetables PastesMarket for Multipurpose Fruits & Vegetables PastesMarket for Multipurpose Fruits & Vegetables PastesMarket for Multipurpose Fruits & Vegetables Pastes

Overseas

c) Mango Pulp : 95,000MTMajor Importers : USA, EU, Middle East Countries

d) Guava Puree : 15000 MTMajor Importers : USA, EU Countries

e) Papaya Puree : 1500 MTMajor Importers : EU, Middle East Countries

POST HARVEST HANDLING POST HARVEST HANDLING -- BANANABANANA

SELECT UNIFORM BUNCHES ( 75 80% MATURITY)

CAREFULLY HARVEST

DE-HAND FRUITS (WITHOUT INFLICTING DAMAGE)

DE-FLOWER DE-FLOWER

CLEAN CUT TO THE CROWN

WASH HANDS

ANTIFUNGAL TREATMENT

AIR-DRY

PACK IN CORRUGATED FIBRE BOARD BOXES

PRE-COOLING (13-14 oC)

TRANSPORT TO AIR PORT OR SEA PORT

LOAD INTO TEMPERATURE CONTROLLED REFER CONTAINERS LOAD INTO TEMPERATURE CONTROLLED REFER CONTAINERS

STORE IN COLD STORE

RIPENING

RETAIL MARKETING

Vacuum Packaging

Product is packed in a vacuum condition

Vacuum packaging offers an extensive barrier Vacuum packaging offers an extensive barrieragainst corrosion, oxidation, moisture, dirt, fungalgrowth, etc

Best suited for dried fruits & nuts

Vacuum packaging of banana

Increases the shelf life for 30 days

Ripening takes 7 to 10 days after

opening the bags.

No residual effect of fungicide

VACUUM PACKED CAULIFLOWER

Mango ProcessingMango Processing

Raw Mango pickle, chutney and beverages

Ripe Mango mango pulp , squash, juice, jam, leather

Machineries required Rotary washer, , blanching unit, mixing unit,, steam

generator, brine tank, can reformer, can flanger, can seamer, retort, sterilization unit, cooling unit, bottle capper, bottle washer , filling table bottling unit

Area required : 1000 sq.m Capacity : one tonne per day Cost : Rs. 50, 00, 000

FRESH MANGO PROCESS FLOW CHARTFRESH MANGO PROCESS FLOW CHART

HARVESTING(With Mango Harvestors at 7o 8o Brix)

DESAPPING

WASHING

HOT WATER TREATMENT

(at 48o c / 1 hours)&

OTHER POST HARVEST TREATMENTS

FINAL GRADING(Refer standards)

WEIGHING

PACKING(IIP APPROVED PACKING)

PALLETISATIONPALLETISATION

PRE COOLING(12o C + 0.5o C)

COLD STORAGE(12o C + 0.5o C)

STUFFING INTO CONTAINER

EXPORT BY SEA

Mango Fruit bar Mango Fruit bar

Mango fruit

Washing

Cutting

Pulp extractionPulp extraction

Addition of sugar

Heating

Cooling

Drying

Packing

Gherkin processingGherkin processing

Gherkin

Washing & Grading

Soaking in 14% brine solution (Barrels)

Maintaining the salt concentration

( 30 days)

Packing ( Bottle /can / barrel )

Mushroom preservation

Poor shelf life Cold storage always not

possible Domestic consumption

Value Addition Drying Canning (2 % Nacl) Pickling

Preservation of sugarcane Preservation of sugarcane Preservation of sugarcane Preservation of sugarcane

juicejuicejuicejuice

In aluminum pouch In glass bottle

Sugarcane juice in PE bags

Sugarcane juice in PP bags

Sugarcane juice preservationPre heating ( 700C for 15 min)

Cooling

Addition of preservative ( sodium benzoate 125 ppm)Addition of preservative ( )

Filling and sealing

Pasteurization (800C for 15 min)

storing

Mr.R.RamalingamPondicherry

500Bottles/day

Edible films and coatings

Gives the food product a protective superficial layer

Made from proteins, starches, waxes, lipids, etc.,

Also made from food-grade anti-microbial and antioxidant compounds

e.g., Ethyloleate coating for grapes increases the drying rate and gives a better quality raisin

Paraffin wax, Carnuba wax and bee wax

Enhances the shelf life by - 10 days

Wax Application

Rate of application - 1 kg/ 1000kg

Guava, Mango, Banana - Waxol W/12

Lime, Apple, Tomato - Waxol O/12

Name of Crop

Products

Guava Jelly, cheese, Toffee, Nectar, Canned guava, Squash, VinegarAonla Pickle, squash,RTS, dried flakes&powder, candyPapaya Jam, candy, Nectar, Pickle, Sauce, Canned papaya, Papain

Products Prepared from Fruits and VegetablesProducts Prepared from Fruits and Vegetables

Banana Pickle, squash,RTS, dried flakes&powder, candy, chips

Grape Wine, Juice, RaisinTomato Pickle, puree, ketchup,sauce,concentrate, jam, juiceOnion Dried flakes, pickle, dried powderCassava Starch based materials

Moringa Dehydrated powder, moringa seed oilCoconut Coconut water, coconut milk powder, desiccated coconut

Chillies Red chilli powder, paste, sauceSugarcane Bottling of sugarcane juice

Machineries for fruits and vegetable processing

Fruit mill, Fruit pulpers, Juice extractors, Packing machines, Filling machines, Steam boilers, Steam boilers, Steam jacketed kettles, Sterilizers

Area required : 1000 sq.mCapacity : One tonne per dayCost of the machinery : Rs. 50,00,000

Global Market for Potato Products

a) Potato Flour : 65,000 MTMajor Importers : Netherlands, Poland, Germany

b) Potato Flakes : 130,000 MTMajor Importers : Japan, UK, Italy, Spain

Market for Potato ProductsMarket for Potato ProductsMarket for Potato ProductsMarket for Potato Products

Major Importers : Japan, UK, Italy, Spain

c) French Fries : 10,00,000 MT Price 1500 USD/MTMajor Importers : Japan, EU Countries

d) Other Products : Granules, Wafers, Fabricated Wafer(Pringle type)

Aseptic Packaging

Irradiation - Onions, Potatoes, Fruits, Marine, Meat, Spices

Technology Driven ProjectsTechnology Driven Projects

Cryogenic grinding Spices, Herbs.

Retort pouches prepared curries, pulses etc.

Modern Cold Storages C.A., M.A.

ASEPTIC PACKAGING

Sterilized food material is packed in a sterile container in sterile zone

Production of ambient shelf-stable foods UHT milk and pasteurized fruit juices UHT milk and pasteurized fruit juices Alternative for metal cans and glass jars

Sterilization of product Sterilization of equipment Sterilization of packaging material

Aseptic packaging involves 3 separate sterilization process

Food raw materials

preparation

Formulation Blending,

Mixing

SterilizationPasteurization

Heating

HoldingPackaging

materialCooling

Homogenization

FillingSealing

Product storage

Distribution&

Consumption

material

Sterilization

Aseptic zone

Products used for aseptic packaging

Mango & Guava pulpPine apple & apple juice Tomato & banana puree Tomato paste Tomato paste Papaya syrupFlavored milk and ice cream mix

Packages used for aseptic packaginPlastic PaperMetal foils

Advantages of aseptic packaging

Minimize degradation of heat sensitive products

Retains colour, flavour, texture and reduces the Retains colour, flavour, texture and reduces the loss of nutrients

Post processing cost is less (refrigerated storage not necessary )

Application of Radiation

Shelf life extension fruits and vegetables

Destruction & inactivation of insects & parasites Destruction & inactivation of insects & parasites

Kills pathogenic bacteria, molds and yeasts

Inhibition of sprouting of tubers

Food Irradiator

Irradiated and Non-irradiated Onion and Potato

Food products Purpose Dose (kGy) Date ofClearance

White potato Extend shelf life 0.05-.15 1965 Nov

Spices and dry seasoning Disinfect insect 30 1983 Jul

Fresh fruits Delay maturation 1 1996 Apr

Poultry (fresh or frozen) Control illness 3 1990 DecRed meat Decontamination 3 1997 Dec

FOODS APPROVED FOR IRRADIATION

Potato Inhibit sprouting 0.15 1960 Nov

Onions Sprouting inhibition 0.15 1965 Mar

Wheat, flour,wheat flour Disinfestations 0.75 1969 Mar

Poultry meat Decontamination 1.5-3 1992 Sep

Red meat(fresh) Decontamination 4.5 1997 FebCereals 1

Bulbs and tubers 0.2

Herbs Decontamination 10 1984 Oct

Condiments 10

Commercial Applications Insect disinfestations of stored products

Quarantine treatment for fruits and vegetables

Inhibition of sprouting in tuber and bulb crops Inhibition of sprouting in tuber and bulb crops

Delay in ripening of fruits

Extended shelf life of seafood, meat and meat products

Improving food safety and decontamination of spices and sterilization of foods

STATUS OF FOOD IRRADIATION

More than 40 countries approved the processing

of about 100 products.

About 28 countries in commercial scale About 28 countries in commercial scale

In India, Vashi and Lasalgaon(Maharastra)

(onion and potato sprout inhibition)

BARC, unit - 20 tons/day for treatment of spices

Dairy IndustyDairy Industy India ranks first 50 per cent Buffalo milk Variation in milk consumption Only 40 per cent used for products New dairy products

Milk & Milk ProductsMilk & Milk ProductsFluid milk, cream, butter, ghee, khoa, Cheese, buttermilk, yoghurt, ice cream, flavoured milk, casein, milk powder

Machineries required

Can washers, Plate chiller, pasteurizer, cream separator, Can washers, Plate chiller, pasteurizer, cream separator, homogeniser, butter churn, ice cream freezers, evaporators, spray driers, form fill & seal machine

Area required : 1000 sq.m Capacity : 10,000 litres per day Cost : Rs. 75,00,000

Snack FoodsSnack Foods Overall production 3,50,000 tonnes (Rs. 14 billions) Namkeans salty snacks, chips pappadums & bakery

snacks like biscuits Potato chips

NamkeansChick peas, pulses, edible oil, groundnut and spices

Market Trend of Snack FoodsMarket Trend of Snack Foods

Taste varies across regionsFlavour ingredientsPack size- affordablePack size- affordableAttractive packagingBaked snacks & roasted snacks are

to be potential areas

Extruded FoodsExtruded Foods

Ragi , Rice & Wheat

Machineries requiredKneader, blender , extruder, Kneader, blender , extruder, dryer, packing equipments etc.,

Area required : 1000 sq.m Capacity : one tonne per

day Cost : Rs. 60,00,000

Bakery ProductsBakery ProductsBread, bun, cakes, puffs, biscuits, pastries

Machineries requiredKneader, mixer, sheeter, proofer, rotary oven,moulder, slicer, packing machines, moulds, trays etcmoulder, slicer, packing machines, moulds, trays etc

Area required : 1000 sq.m Capacity : 50,000 bread per day Cost : Rs. 40,00,000

Retort pouch processing

Advantages of Retort pouch processing

Replacement for can

Cheaper

Simple operation

Low initial investment

Frozen FoodsFrozen Foods Frozen vegetable peas, cauliflower

Frozen chicken

Frozen dairy dessert paneer kulfi ice cream

Frozen meat and sea foods

Cold chain

Cold ChainCold Chain Industrial cold stores in the Production zones

Refrigerated vehicles for long distance transport

Refrigerated room in wholesale markets

Refrigerated distribution vehicles

Refrigerated rooms and display cabinet in retail stores

Cold Storage IndustryCold Storage Industry

First cold storage plant was setup at Calcutta in 1892

Growth of the industry was negligible till 1995

Normally growth of the industry has been pronounced in north India (MP,UP,WB,Bihar ,Harayana)

90% of the cold storage unit used for potato

Remaining 10% used for other fruit and vegetables

63.01.1

Potato Fruit & Vegetables

No. of cold storage units

(%)Commodity

Commodity wise distribution of cold storage units in India

100.0Total

1.16.90.811.32.19.75.1

Fruit & VegetablesMilk & Milk ProductsMeat Fish Meat and FishMulti-purposeOthers

Recommended Storage conditionsFruit / vegetable

BananaPine appleAppleGrapes

Temp.(0C)

14 158 100 - 20 - 2

R.H.

80-8585-9085-9085-90

Storage period

2 months2 months8 months2 monthsGrapes

MangoPotatoOnionCarrotBhendiCabbagetomato

0 - 210 - 123 - 41- 22- 38 -101 - 28 -10

85-9085-908570-75959090-9590-95

2 months1-2 months8 months6 months6 months1 month3 months2 months

National Horticultural Board providing capital subsidy to entrepreneurship for construction,expansion and modernization of cold storage for horticultural produce

Funds for Cold Storage UnitsFunds for Cold Storage Units

ObjectivesObjectivesTo promote cold storage in the country for reducing post harvest losses

Eligible OrganizationsEligible Organizations

NGOS Association of growers Corporations Agricultural produce marketing committees Agricultural produce marketing committees Marketing boards/committees Agro industries corporations

1) Market Needs Domestic as well as Overseas

2) Availability of Competitive Resources

3) New Technologies

Major Considerations for a New ProjectMajor Considerations for a New ProjectMajor Considerations for a New ProjectMajor Considerations for a New ProjectMajor Considerations for a New ProjectMajor Considerations for a New ProjectMajor Considerations for a New ProjectMajor Considerations for a New Project

4) Other Factors Socio-Economic Environment, Government Fiscal Policies,Incentives, etc.

Food Industry LawsFood Industry Laws

PFA 1954 Prevents customers against adulterated food Domestic & imported food products Food colour, preservative, pesticide residues, packaging

labeling & saleslabeling & sales Not upto date with advances in food processing sector

Labeling requirement Language, name, address, description of product,

Constituents, date of manufacture, expiry date

ContdContd

The Standards of Weights & Measures Act 1976 Essential Commodity Act 1955 Fruit Product Order 1955 Milk & Milk Product Order 1992 Pulses, Edible oil seeds and Edible oils Order 1977 Pulses, Edible oil seeds and Edible oils Order 1977 MRTP Act 1969 BIS 1952 Agricultural Produce Grading & Markets Act 1987 Environment Protection Act 1986 HACCP

Food Safety & Standards Authority of India (FSSAI)

Thank You