Food Industry

Food Industry is one of the complexes which involve a vast global collection of many businesses that come together to avail food energy consumed throughout the world population. Those farmers who merely depend on food that they plant are not considered to be part of food industry in these modern days. The food industry includes the following: – Regulations- These regulations range from local to international rules and regulations which govern food production and sales, food quality and safety, and general industry lobbying activities (David, Grotton, 1979, pg417).

– Education- This can be academic which results to professional in food production, vocational which involves basic training or consultancy which deals on consultation regarding different food products. – Research and development- This involves food technology in order to invest various ways of food production which does not exist in the market. – Financial services which include insurance and credit services. – Manufacturing- Food industry involved in manufacturing of Agro-chemicals, seeds, farm machinery and supplies of agricultural construction.

– Agriculture- This is a basic area in food industry since it deals with raising of crops, livestock and also sea foods which are the main raw material used in food industries.

Summer restaurants and other food services centers. Therefore, food industry basically covers all aspects of food production and sales. All transactions between productions of food up to the time food is taken to the market are taken care of. The industry size of food production is quite wide since it covers worldwide population and it’s approximately US $3. 2 trillion in 2004. For example, in United State they spend about US $ 1 trillion annually for food or almost ten percent of their gross domestic product (Harratio, 2007, pg 370).

This industry due to its diversity and great need to expand it has around 16. 5 million people who are employed in the industry. Food industry regulations are very vital in every stage from production to consumption. These stages include production, processing, distribution, retail, packaging and labeling of all food products. All these are governed by a mass of laws, regulations, code of practice and guidance. There are general food laws which must be followed by everyone whether one is working in a food business or he or she is involved in consumption of the food productions.

This deals mainly with registration of foods which are either imported or exported, the safety of food, labeling, product withdrawals and recall (Brown, 2001, pg 439). For example, the main food laws which are used in United Kingdom are:- – Food safety act of 1990 which involved registration of general food registration in Great Britain. – General food law regulation 178/2002. – General food regulations 2004. This incorporated imposition of penalties to those who breaks food regulation. Some of the food safety and consumer protection offenses include

– Rendering foods which can injure one’s health by either: I ) Adding something harmful to food. ii) Using harmful ingredients in production of food. iii) Removing any food constituent which can benefit the consumer iv) Passing food through processes which are no recommended. – Selling product to purchaser which is not of the nature, substance or quality demanded by the buyer. – Using false descriptions or presentation of foods in order to entice customers. – Commission of defense is due to the act of default of another person, the other person is guilt of the offense.

– In European countries, Food imported to these countries must comply with all their Food safety regulations or else they should enter into an agreement with the exporting countries for those requirements. – Exportation by European countries demands that food should meet the required food law, not unless the importing country demands otherwise as per their laws. – The safety standards of food should be followed strictly this is passed by the law that states: Food shall not be placed in market if it’s unsafe. Food can be regarded as unsafe if its-injurious to one’s health. – Unfit for human consumption.

– The labeling, advertising, presentation and setting of food product for consumer should be done in such a way that it would no mislead the consumer. – For traceability purposes, operators of business need to keep accurate records of food, food substances and producing animals supplied to their businesses and also records of suppliers where they buy their commodities which should ensure that this information shall be made available to authorities on demand. – Food business operator can withdraw food which is not complying with safety standards incase it has left their control and recall food incase it has reached the consumer.

In case any company breakdown any of these offenses, the company is liable to penalties laid down by general food regulation (Windsor, 1959, pg 37). Food law guide is a process which needs to be updated each and every time in order to comply with food standard every time. In food industry, there should be regulatory impact assessment team which its main duty is assessment of costs, benefits and risks of regulations laid down which could adversely affect the business in one way or another. These teams are either produced by government or agencies which have statutory powers for making laws.

The government is trying to put up better regulatory initiatives which will work with food standard agency which is a statutory body which protects public health and consumer’s other interest related to food and drinks. Deregulation can lead to food safety coming to a critical condition since it opposes most of the regulation acts imposed in food production till marketing time. These deregulations may include:- – Free trade agreement. Due to free trade agreement the safety standards of food during export and import times are looked down upon and this can lead to harmful consumption of food.

For any successful company to grow well, merging with other companies is quite essential since it enables diversity and acquisition of new methods and formulas which the merging company has. Merging stimulate growth and expression of ideas to give a wide range of products to be produced. The main aim of encouraging merging and acquisition of businesses is to reduce the number of firms operating on one same thing and consequently they increase concentration since the number of firms have lessen and therefore management can focus on something substantial since they are concentrating on a smaller area than before.

Also through merging and acquisition companies promote anticompetitive pricing behavior since operations will be taking place on one company which can set standard prices for each items (Manley, 1940, pg 83). In food industry, they have focused merging as something that can bring great impact in economy since it basically changes employment structures. Therefore merges and acquisition results to workers dislocation since the companies will be fewer than before which lead to retrenchment of some workers.

The food industry had two distinct mergers and acquisition involved in eight different food industries. These occurred from 1977 to 1982 and from 1982 to 1987. This mergers and acquisitions did not necessary portray the processes causing workers dislocation and lost wages. During the acquisition and mergers, small plants in food industries were added workers during the first merge wave but not during the second one. Mergers and acquisition had small but positive effect on wage during the first merger of 1977-1982 while little effect was felt during the second merger period.

Mergers and acquisition also enables many plants to exit their industries during the 1977-82 period and facilitated closure of some firms during the period during 1982-1987. Therefore productivity can be increased and profitability of industry enhanced by actively participating in acquisition and merging of industries. Joint venture by different companies helps the businesses to grow increasingly and therefore increases business interest. Joint ventures also help the business to diversify its products and it basically operates like mergers and acquisition (Zhouying, 2005, pg317).

Food technology has greatly advanced in many food companies through invention of new ways of production and marketing of food produce. Food supply chains in any food industry must give way to dynamic supply network and elaborate food technology that drive them. Technology enables high volumes of distributed transactions which take place between different members of supply chain in a rapid and low cost manner. Food technology should be used even during marketing to fit to a variety of transactions.