Food Industry and Export
The food industry is one of the most strategic sectors in any country. Due to its broad connection with the agricultural industry, it plays a crucial role in transforming the output of this sector into food products. This connection not only helps prevent resource waste but also contributes to food security by creating added value. However, entering export markets and generating foreign currency is another significant aspect of the development of the food industry. It is important to note that two key factors—appropriate quality for the target market and the cost of production—play a fundamental role in expanding export markets.
Research and Development
Research and development (R&D) is a necessary and fundamental process in the food industry. R&D consists of four key stages: approving raw materials and suppliers, modifying existing formulations and processes, developing new formulations, and ultimately optimizing formulations in terms of cost. Even minor effects can have significant impacts on the economic efficiency of a production enterprise. Success in this area depends on the experience of the specialists, senior management perspective, and access to adequate information. However, the availability of equipment and investment plays a vital role in achieving success in this field.
Export Markets and Target Consumers
When dealing with export markets, three main issues need to be taken seriously: the quality expectations of the target consumer (in terms of taste and consumption habits), target market standards, and the product’s shelf life during transportation and in the target market distribution and sale. Additionally, the cost of production is a key factor that can influence all parameters, especially the attention of importers .
Omitting Research and Development
Some companies, in an attempt to enter export markets or expand their export market, eliminate the essential R&D phase to reduce costs, relying solely on the knowledge of current experts and trial-and-error methods, or at best, seeking consultations to produce the desired product. While this approach seemingly reduces costs, in reality, it increases costs in three ways:
- Producing experimental samples without knowledge of formulations and processes may lead to product loss and significant damage.
- Part of the R&D process involves understanding the target product, defining its characteristics with physical and chemical data, and predicting the behavior of raw materials in production processes to achieve the desired goals. A product developed through trial and error may appear to meet the target product’s characteristics, but it can cause challenges in terms of shelf life. Solving these issues without foundational knowledge and relying solely on trial and error will lead to high costs.
- Consultancy services, while providing appropriate solutions, come with high costs.
Stages of Research and Development
R&D is defined in four stages:
- The R&D process begins by reviewing the product and legal guideline. This understanding is recorded using technical terms and physical-chemical data.
- In the second stage, based on product data, expert knowledge, current products, available production line facilities, and accessible raw materials, formulations and processes are created at the laboratory and pilot scale. The initial sample is produced with the least possible cost. In this stage, accurate sensory evaluation and instrumental tests play a key role in guiding the research (Food Materials Engineering: The Need for Standardization).
- In the third stage, the product’s shelf life is evaluated under simulated and intensified conditions of the target market.
- In the fourth stage, the formulation is optimized in terms of cost, using statistical techniques.
Challenges in Research and Development
The primary challenge in R&D is investment, which includes human resources, equipment, raw materials, and external instrumental tests. However, a lack of access to specialized personnel is also a significant challenge. The best solution for companies that cannot address these challenges on their own is to consult with specialized research companies and sign R&D contracts.
