Professional Documents
Culture Documents
Agri-food chain The production and supply of food for the consumer
Levels of operation:
Level of Advantages Disadvantages
operation and
mechanisation
Household - Can specialise, often - Cannot take
producing gourmet advantage of state-of-
items the-art production
- May be able to satisfy equipment
niche markets leading - Low yield or output
to greater
opportunities if item is - May not be financially
successful in the viable
market - Hard to maintain
- Can allow person to consistency and
work from home and quality of produce
work more flexible - Production affected
hours by seasonal nature of
- Operating costs are supplies
reduced because no
rental of factory
premises is required
Small business - Greater flexibility to - Unable to store large
diversity and switch to quantities of
making different ingredients or goods
products - Limited opportunity to
- Access to small-scale source different
commercial equipment suppliers due to small
- Good local customer scale
base - Must be profitable to
remain competitive
with larger companies
- Need to be in an ideal
location
Large company - Large-scale production - Less likely to produce
possible boutique, specialised
- Provides employment items
to many - Higher likelihood of
- Large profit technical problems
- Enjoys the benefits of given large-scale
automation production methods
- Can run continually, used
often ‘24/7’ - High cost of
- Exerts greater machinery and
influence in food maintenance
sector, with larger - Open to extortion
voice when dealing attempts
with government - More removed from
- Leads the way in the customer
technology, quality - Possibility of
assurance, research industrial action and
and development and intervention of unions
career opportunities during disputes
- Expensive to buy into
company
Multinational - High volume of - Open to extortion
produce attempts
- Provides employment - Negative media felt
to many worldwide
- Potential for higher - Must adhere to
profit given standards set by
advantages of large- multinational
scale production company
- No opportunity to
diversify or to create
- Consistent quality of unique products due
product and standards to corporate nature of
worldwide company
- High degree for
computerisation and
technology
- Often run 24 hours a
day, 7 days a week
Consumer influences:
Social trends Changing demand Examples of
products
Single parent Low-cost nutritious foods Cheaper cuts of meat
Fruits and vegetables in
families increasing season
Dual income Value-added quickly prepared Home meal
meals replacements
families increasing
More mobile Increased interest in takeaway Takeaway meal (e.g. fish
foods and chips, Chinese food)
population
Busier lifestyles More ‘instant’ foods Prepared sauces
Frozen vegetables
Meats which can be
prepared quickly by
grilling or frying
More time spent Increased in consumption of Restaurant meals
foods prepared and eaten
away from home outside the home
Smaller family size Less use of cheaper, filling Less use of breads and
foods cereals
Improved Use of equipment which Microwaves
increases the efficiency of food Home freezers
technology storage and preparation in the Blenders
home
Higher standard of Better understanding of diet- Foods low in fat, salt and
related health issues sugar
education Fibre-rich foods
Fresh as opposed to
processed foods
Increased life Many elderly people live alone Single serves or small
portions are important in
expectancy packaging and sales
Greater concern for Methods of production which are Organic foods
environmentally friendly Packaging which is
environmental reduced, reusable and/or
issues recyclable
Research and development in the Australian food industry is
encouraged and supported by organisations such as the CSIRO
and FSANZ
Quality assurance is a priority in the Australian food industry and
manufacturers implement strict standards of quality control, often
using the HACCP system
Organic farming is gaining in popularity, mainly due to its positive
effect on the environment
The Australian food industry is a significant contributor to our
overall economy. It not only provides a large portion of the
population with employment but also brings billions of dollars into
the country each year
There is a wide range of career options, from unskilled to
specialised positions, available to those choosing to work in the
food industry.
Legislation:
Federal government State government Local government
Trade practices Act 1974: Occupational health and safety Appointment of environmental
1. Controls restrictive trade Act 2000: health office (EHOs):
which can in the form of This act protects the health, An environmental health officer can
- Misuse power safety and welfare of people at be appointed as food surveillance
- Resale price work. The main purpose of this officer aligned with the Food Act.
maintenance legislation is to reduce work- The officer is responsible for the
- Protection of competition related accidents and eliminate routine inspection of all food
- Exclusive dealings risks to health and safety at premises in the local area.
- Price discrimination work. Employers must follow a
2. Restricts companies from code of practice which is a guide
‘unconscionable conduct’; to conduct for meeting
that is, unprincipled occupational health and safety
behaviour standards in the workplace
3. Provides consumer
protection from unfair
practices such as:
- Misleading conduct
- Bait advertising
- Offering gifts and prizes
It also provides:
- Product safety and Health Acts: Codes for inspection of food and
information The Health Act is enforced by food premises:
- Conditions and each state and territory. Local councils form their own codes
warranties The regulations of this Act for inspection of food and food
4. Controls liability for detective cover: premises. The code covers the
goods - Personal hygiene regularity of inspections by food
- General sanitary surveillance officers and the
conditions exemption of any food premises
- Pest control from inspection
- Management of
infectious diseases
- Storage, slaughter
and sale of meat.
Fisheries Management Act 1991: Fertilisers Act 1985: Codes for the construction and
This Act aims to prevent the This Act enforces the sale alteration of food premises:
exploitation of fisheries resources regulation of soil-improving These codes are formed by
and to assist in maintaining agents and trace elements individual councils and cover:
ecologically sustainable products. It is used to ensure - Building materials used
development. It also addresses unsafe levels of heavy metals in food premises
actions of the fishing industry and other soil contaminants do - Installation guidelines
not contaminate foods used for for fixtures and
human consumption. It also equipment such as
covers protection of exported ovens and refrigerators,
food products to comply with ventilation, toilet areas
contaminant levels and window displays
Dairy Produce Act 1986: Fisheries Management Act
The marketing and export of dairy 1994:
produce is covered by the Act, as This Act enforces protection and
well as collection of certain levels in development of fishery
the dairy industry resources in NSW for the benefit
of present and future
generations.
HACCP: Food Act 2003 (NSW):
‘Hazard Analysis Critical Control This Act enforces food
Points’ is the internationally accepted standards and hygiene
prevention and risk-based food regulations in the food industry.
safety system. All registered food It deals with areas such as
premises are required to prepare and adulteration, false description,
lodge with relevant government unlawful practices and false
authorities a Food Safety Program advertising.
that conforms to HACCP guidelines
Imported Food Control Act 1992: Protection of the Environment
This Act is to ensure all food Operations Act 1997:
imported to Australia meets This Act applies to the noise
Australian food standards and the produced during food
requirements of public health and processing and is enforced by
safety. It lists special requirements the environment protection
that imported food must meet such authority.
as labelling, packaging, additive and
preservative use.
Gene technology Act 2000: Fair Trading Act 1987:
This Act is to ensure public health This Act legislates fair and
and safety and to protect the honest business practices
environment by identifying and protecting both consumers and
managing potential risks associated traders. It enforces sanctions
with genetically modified foods. It against a wide range of unfair
covers all food sold for human trade practices. It also provides
consumption. safety and information
standards to be set between
suppliers and customers
Food Standards Australia New Trade Measurement Act 1989:
Zealand Act 1991: This Act ensures the accurate
This Act provides a focus for co- measurement of equipment
operation between governments, the used for weighing and how the
food industry and the community to equipment is used in front of the
establish and maintain uniform food consumer. Weigh is checked as
regulation in Australia and New a part of quality control under
Zealand this Act
Export Control Act 1982:
These are very specific Federal
regulations regarding export food
sales. All exported food must comply
with prescribed Goods Order
choices e.g. assessing the More automation both healthy (e.g. low
fat content for a low-fat for manufacturing fat, low salt, sugar
diet, assessing food, therefore free, high fibre) &
the sugar content for less jobs, can also less healthy e.g.
diabetes, lead to physical snack foods,
contamination processed, additives)
from machinery
FUNCTION IN SPECIFIC
ADDITIVES FOOD PRODUCTS
New food product development is affected by external factors (macro-environment) and internal factors
(micro-environment). A company should have strategies in place to respond to internal factors, which are
more within the company’s control, and external factors, which are more difficult to plan for.
The following external factors can affect product development:
- Economic environment: the state of the economy can affect product development. Changes in interest
rates and inflation rates, foreign exchange and tax rates as well as wage agreements, salary levels,
drought and natural disaster can influence new product development
- Political environment: federal, state and local laws affect food product development. Lobby groups and
consumer activism are also external factors the company needs to be aware of.
- Ecological environment: pollution, land degradation and inadequate waste disposal are problems that
need to be taken into consideration when producing food.
Internal factors that affect food product development include personnel expertise, production facilities,
financial position and company image
Both external and internal factors affecting food product development depend on the size of the company,
the company structure (private or public company) and the resource base of the company
It is crucial that a food manufacture can assess the likely consumer acceptability, technological and
economic feasibility and market success of a new food product
Glossary:
Term Meaning
Decline Gradual loss (of market share)
Design brief Description of a solution to an
identical need
Ecological Biological link between organisms
and their environment
Feasibility Investigating the probability of
success
Line extensions Products that resemble another
item except for a change to a
characteristic, (e.g. flavour, size)
Macro environment The broad surroundings
Market research Gathering of information which
provides a description (data)
about the marketplace
Market share Section or percentage of sales
that a product commands
Maturity Maximum growth or development
Me-toos Copies of other products
Micro environment Small aspect(s) of the surrounding
New to the world A product which has never been
seen before
Packaging The container which holds an
item(s)
Primary The original or first-hand
Profitable Able to make a financial gain
Promotion Activities which aim to further the
growth of an item
Prototype A sample or model
Qualitative Relates to qualities or
characteristics
Quantitative Relates to amounts or
measurements
Screening To check the ability or capability
Secondary Not the original
Sensory evaluation To make judgements about
sound, smell, taste, sight, feel
Specifications Statement of requirements
SWOT To identify the strengths,
weaknesses, opportunities and
threats related to an investigation
Target market Anticipated or identified
consumers
External Internal
Economic environment: Personnel expertise:
Exchange rates Skills levels
Inflation/recession Transferable skills
Unemployment Changing employment
Taxation Importance of education
Salary and training
Importance of the food Flexibility
industry to the Australian Part-time, casual work
economy
The economic cycle
Political environment: Production facilities:
Government Importance of level of
influences/controls (policy production facilities:
and legislation): Small volume/one-off
Price Batch production
The environment Mass production
Education Storage
Working conditions Distribution
Community influences
Lobby groups
Ecological environment: Financial position:
Natural resource use stability of the company
Environmentally friendly balance between
decisions expenditure and profit
Arming procedures investment
Waste management resource management
Packaging product quality
‘clean green’ image market share/competition
consequences of disregard
for environmental issues
Technological environment: Company image:
improved productivity influenced by:
increased choice reputation
relationship between level quality
of production and marketing strategies
technology used packaging
cost of technology/cost price
effective for large-scale
production
Term Meaning
Allergies A physical insensitivity to a
substance
Cardiovascular Physical system incorporating
the heart and circulatory
system
Food intolerance No immune response, is a
reaction from the body after
build-up of an allergic factor
Functional foods Foods that provide additional
positive body factors in addition
to nutrients present
Heredity Process by which
characteristics are passed on
through genes
Malnutrition A physical condition that is a
result of one or more nutrients
lacking in the diet
Nutrients Chemical substances that are
food structures
Nutrition Scientific study of food
consumption patterns and
nutrient use
Over-nutrition Express of one or more
nutrients in the diet
Phytochemicals Antioxidants that come from
non-nutrient plant chemicals
Probiotics Micro-organisms of human
intestinal origin used to improve
gut flora in individuals
Under-nutrition Inadequate intake of one or
more nutrients in the diet
Good health is a state of physical, mental and social wellbeing, which means that it is affected by a
wide range of lifestyle factors
Malnutrition occurs when an inappropriate diet causes health problems and is usually classified as
either over nutrition or undernutrition
Being overweight or obese are examples of over nutrition, usually caused by energy intake exceeding
energy expenditure. Genetic and hormonal factors can also contribute to obesity. Obesity is
increasingly common in Australia in both children and adults.
Obesity can be assessed using subjective methods, body composition measurements, waist-to-hip
ratio and body mass index
Hypertension, or high blood pressure, may be caused by excess sodium intake. Obesity also
contributes to hypertension
Dental caries occurs when mouth bacteria decay the teeth using substances they make from
carbohydrate foods. Excess intake of sugary or starchy foods that stick to the teeth can contribute
to dental caries
Anorexia nervosa and bulimia nervosa are eating disorders: psychological conditions that are
associated with life-threatening abnormal eating behaviours
Inadequate fibre intake can cause constipation and contribute to long-term health problems such as
hiatus hernia, varicose veins, haemorrhoids and diverticulitis
Inadequate iron intake causes anaemia, which is associated with fatigue, headaches and palpitations
Inadequate calcium intake causes osteoporosis, which leads to a high risk of bone fractures and
changes in bone shape
Diabetes and cardiovascular disease are both conditions that are associated with overnutrition. Both
can lead to serious long-term health problems
Indigenous people have a shorter life expectancy than the rest of the population, and have a higher
risk of many diseases. Different factors contribute to this risk but many are being addressed by a
variety of health programs