Embracing Potential of Technology to Shape Future of Food Processing
Published on : Monday 10-07-2023
Exploring the transformative power of technology in the food processing industry to improve efficiency, quality, and safety.
The field of food processing plays a pivotal role in any country’s economic growth. It refers to the conversion of raw agricultural products into various different forms for consumption. Food processing encompasses activities ranging from cleaning, sorting, and packaging to preserving and altering raw materials into value-added products. If you are the one who deals in this industry and looking to revolutionise your business and organisation, this article is for you. Here, we will let you discover the potential of technology in shaping the food processing industry and manufacturing of tomorrow. So, let’s get started.
In India, the food processing industry is one of the largest sectors in terms of production, consumption, export, and growth. It deals with a range of sub-sectors such as fruits and vegetables, meat and poultry, fish and seafood, dairy products, grains and cereals, bakery products, beverages, and more.
In the global context, the food processing industry is very vast, involving a wide range of products, key players, and markets. According to Invest India, the food processing sector in India is forecast to become a US$535 billion market by 2025-26. The industry contributes a lot to the country’s economic growth and has a share of 12.38% in the employment generation in all Registered Factory sectors, engaging around 1.93 million people.
When it comes to the global food processing industry, Fortune Business Insights predicts that the market can reach US$140.17 billion by 2029 from US$105.13 billion in 2022. This shows a CAGR of 4.2% growth during the forecast period. The growth in the global market of food processing is largely influenced by investments in food processing and surging demand for hygienic convenience products.
What are the challenges in the food processing industry?
The food processing industry faces various challenges in terms of meeting the demand for food from the population. It is no surprise that India has now become the world’s most populous country in the world surpassing China. In India like country, weather conditions, crop diseases, and disruptions in transportation are crucial challenges that create supply and demand imbalance. Other challenges like seasonal variations of fruits and vegetables, transportation and logistics costs, government policies, and fluctuation in currency also play major roles in creating an imbalance in supply and demand.
The recent surge in tomato prices in 2023 depicts these challenges. Taking note of an article published in the Times of India, the main reason behind the current hike in tomato prices can be traced back to the sudden rise in temperature in March and April that saw pest attacks on the production, leading many growers to abandon their crops.
The role of technology in food processing
Advancements in technology can contribute significantly to the food processing industry in terms of increased productivity, enhanced food safety, and improved quality control. These technology-driven advancements can also help with better resource management and innovation in the industry. We have mentioned below some of the technologies that have a crucial impact on bringing sustainability to the food industry.
Automation: The use of advanced machinery and robotics can be beneficial in automating various tasks in food processing. Automated systems can minimise manual labor and human errors. These systems can handle tasks ranging from sorting, grading and cutting to packaging, and labeling, resulting in improved productivity and consistency.
Precision Agriculture: Advanced technologies such as drones, remote sensing, and satellite imagery can help in the precision agriculture or farming of tomatoes and other vegetables and fruits. These technologies can provide growers with real-time data on crop health, nutrient requirements, and soil moisture levels. By optimising these data, farmers can improve yield and lower production costs.
IoT and Sensor Technology: Using IoT devices and sensors can help monitor various parameters, including humidity, temperature, and soil conditions in real time. With these technologies, farmers can make data-driven decisions, and perceive early signs of diseases or pests, thereby lessening crop loss.
Predictive Analytics: AI-driven algorithms and advanced analytics tools can help in assessing historical data, weather conditions, and market trends, along with other factors to predict fruits and vegetables yield and prices such as tomatoes. By utilising this information, farmers can make informed decisions regarding their production planning, pricing, and market timing.
Cold Chain and Logistics Management: For preserving the quality of food, efficient cold chain management is crucial during transportation and storage. Advanced sensor technologies can be used for temperature monitoring, energy-efficient refrigeration systems for maintaining temperature during food transportation, RFID tracking, and data analytics are a few advanced technologies that can ensure an efficient food supply, reducing spoilage and quality degradation.
These are just a few popular technologies that can be harnessed in the food processing industry to fulfill the demand for food. There are also various tools and technologies like vertical farming, supply chain optimisation, artificial intelligence horticulture technology, route optimisation algorithms, GPS systems, and modified atmosphere packaging (MAP) that can play an indispensable role in food processing to improve efficiency, quality, and safety.
Case studies – advanced technologies in food processing
Several companies have implemented advanced technologies in food processing to mitigate the challenges related to food production and its supply. We have discussed below some of the real-business case studies in the food processing industry.
Olam Food Ingredients
A leading food and agri-business company, Olam Food Ingredients (OFI) has more than 100 factories around the world, supplying high-quality ingredients to over 8,000 customers.
OFI had challenges in stabilising and fine-tuning one of its product lines to improve overall yield. The company also wanted to provide its employees with valuable analytics tools that could help them in solving current and future challenges effectively. Olam Food Ingredients implemented an IIoT platform, Braincube, which resulted in a yield of 6.5% on a key product line.
“We have a tool that can help our teams make sense of the data that’s coming into our systems. We don’t need to figure out the details we’re looking for; we can start working towards solutions quickly,” said GK Lee, process and data analytics manager at OFI.
Manzana
A California-based apple cannery, Manzana specialises in producing high-quality organic products made with Fresh USDA Organic Apples. The company faced challenges in streamlining its supply chain management processes. To streamline and stabilise processes, Manzana implemented Columbus’ Automated Data Capture which helped the company in inventory management and provided actionable insights to streamline production and warehouse workers.
Evans Foods
The Chicago-based producer of branded and private-label finished pork rinds and pork rind pellets, Evans Foods faced challenges in operating cost-effectively when it came to production, food safety, compliance, product development, and more. To tackle these challenges, the company collaborated with Ultra Consultants and deployed its ERP solution. With this solution, Evans Foods was able to improve production planning and gain a repeatable blueprint for standard business solutions from the Ultra Project Team.
These real-business case studies show how the use of advanced technologies in the food processing industry has addressed challenges and helped in delivering significant benefits in terms of quality improvement, enhanced efficiency, and market competitiveness.
Apart from these companies, many startups in India in this field are taking exceptional steps and approaches to bring innovation. Raw Pressure is one such company that deals in cold-pressurised juices, utilising high-pressure processing (HPP) technology. With HPP technology, the company maintains the taste, quality, and nutrients of the juices with their extended shelf life without any additives or pasteurisation.
“I learned a lot about what it means to maintain a healthy lifestyle. It’s something we take for granted when we’re young. I learned how beneficial juices are when I started making myself,” said Raw Pressery founder Anuj Rakyan.
FreshToHome: This is another Indian startup that delivers vegetables, meat, and fish directly to consumers from farmers and fishermen. For the efficient delivery of food, FreshToHome utilises a farm-to-fork model, a D2C business model. It harnesses the potential of technology for real-time order tracking, ensuring transparency, and maintaining quality throughout the supply chain.
NutriParadise: A Bengaluru-based food and beverages startup that leverages food technology and nutrition science to develop healthy, personalised, and convenient food products. As a B2B company, NutriParadise develops food products with extensive R&D to consolidate diverse natural ingredients, outlining them as integral to medicines.
Other Indian startups like YCook, Akshaya Patra, Agro2o, Stellapps, and Ecozen Solution, among others are bringing innovation to the food processing industry by adopting disruptive approaches and technologies.
Major players in the food processing industry offering advanced technology
To cope with the challenges of food processing and operations, several top companies are leading the way by offering advanced technologies. These companies provide their expertise in developing and deploying advanced technologies, which makes them major players in the food processing industry. They are also catering to the evolving needs of food manufacturers across the world. We have listed below some of the key players who bring innovation to food processing.
Tetra Pak – Recognised as a global leader in food processing and packaging solutions, Tetra Pak provides a wide range of advanced technologies for processing, packaging, and distribution. They include sterilisation systems, aseptic packaging solutions, and filling machines. Tetra Pak’s technologies are known for maintaining food quality, safety, and sustainability throughout the supply chain.
Bühler Group – A leading provider of food processing equipment and technologies, Bühler Group specialises in technologies for chocolate production, grain milling, pasta processing, and feed manufacturing. The company's innovations emphasise food safety, energy efficiency, and sustainable production.
Sidel – Sidel is a leading packaging solutions provider for the beverage and liquid food industries. The company offers advanced technologies for bottle manufacturing, filling, and labeling. Its solutions are designed for sustainability enhancement, production efficiency, and consumer satisfaction.
Rockwell Automation – A leading industrial automation company that offers automation solutions for diverse industries, including food processing. Its technologies are focused on advancing efficiency, safety, and productivity in food manufacturing processes. Some of its solutions include programmable logic controllers (PLCs), plant-wide control systems, and human-machine interface (HMI) systems.
Honeywell Automation: A leading provider of integrated automation and software solutions for the food and beverage industry. Its technologies optimise production processes and improve operational efficiency while ensuring food quality.
Alongside, companies such as Ishida Co., Ltd, JBT Corporation, ABB, Siemens, Omron Automation, and GEA Group offer advanced technologies to drive innovation in the food processing industry. These companies bring automation technologies such as robotics, intelligent control systems, and data analytics solutions into food processing operations, leading to enhanced performance and a competitive edge in the market.
Upcoming trends in food processing
The food processing industry is evolving at a rapid pace with the rising global demand for food and related solutions for its safety. This growth has been driven by changing consumer preferences, global market dynamics, and technology advancements. Keeping up with these advancements and the latest trends in food processing, businesses and professionals can drive innovation in the industry to meet consumer demands. Some of the latest and upcoming trends in the food processing industry are as follows:
• Clean label and natural ingredients
• Smart packaging and active intelligent materials
• Personalisation and customisation
• Connected devices and IoT
• Clean and sustainable processing technologies
• Robotics and automation, and
• E-commerce and direct-to-consumer models.
Key takeaways for leaders and professionals in the food processing industry
To bring sustainability and innovation to the food processing industry, business leaders, executives, and entrepreneurs can play a vital role. They can embrace proactive strategies and approaches to bring positive changes within their organisations and influence the industry at large. They can foster a culture of innovation, invest in research and development (R&D), leverage cutting-edge technologies, and prioritise sustainability and environmental stewardship throughout the value chain.
Leaders should also engage with stakeholders, including regulators, consumers, and NGOs, and understand their concerns and expectations regarding innovation and sustainability. They should encourage transparency and traceability in their operations. They can even establish collaborations with industry associations and public entities, conduct training programs and invest in knowledge-sharing platforms, and share best practices and success stories within their business to drive innovation.
Entrepreneurs in the food processing industry should consider leveraging the power of automated technologies. With automation, they can control and reduce operational costs, streamline processes, minimise manual labor, and improve overall efficiency, while making significant cost-savings. Entrepreneurs should also consider the following factors when it comes to profit and loss (PnL) in the food processing industry:
• Cost analysis
• Pricing strategy
• Market demand and customer preferences
• Overhead expenses
• Continuous monitoring and analysis of financial performance
• Regulatory compliance, and
• Risk Management.
By embracing and implementing these actions, leaders and entrepreneurs can significantly contribute to a sustainable and innovative food ecosystem, shaping the food processing industry of tomorrow.
Conclusion
Technology has a crucial role to play in the food processing industry. It helps drive innovation, efficiency, and quality improvement. Technologies like automation, advanced machinery, smart packaging, and data analytics can allow companies to produce high-quality food products by optimising their processes and meeting the rising demands of consumers while ensuring quality.
As technology continues to advance and emerge, we at Industrial Automation believe that it will cater to significant growth in the food processing industry and revolutionise production, supply chain management, and consumer engagement.
References:
https://avrdc.org/new-technologies-lead-to-bumper-tomato-yields-in-assam/
https://www.moleaer.com/blog/new-greenhouse-technology-for-tomato-cultivation
https://www.ishs.org/ishs-article/100_45
https://timesofindia.indiatimes.com/life-style/food-news/high-tomato-prices-the-reason-that-caused-this-spike/articleshow/101482484.cms
https://www.processingmagazine.com/process-control-automation/article/21277277/braincube-case-study-food-and-beverage-increases-throughput-yield-by-implementing-smart-iot-platform
