Food Processing Sector - ILO
Transcript of Food Processing Sector - ILO
Food Processing Sector
Sector DefinitionManufacture of food products and beverages (food processing):
the transformation of raw ingredients, by physical or chemical means into food, or of food into other forms.
Food processing combines raw food ingredients to produce marketable food products that can be easily prepared and served by the consumer
(International Food Information Council Foundation).
Over half the world’s urban population will be in emerging economies.
Demand for food in emerging markets expected to rise because of population and income growth [and urbanization] and are likely to adopt a rich country diet—more calories, protein, and processed foods (Goedde et al., 2015)
Consumers are increasingly health conscious: governments are tightening standards for food production/more stringent quality and safety requirements.
Exports of processed food are expected to make up 12 per cent of total exports by 2025 (Fareastern Agriculture, 2015).
Asian food demand expected to outpace local food production, leading to higher imports of meat and processed foods rather than traditional staple grains. (A review of market data concerning Asian Food and beverage markets)
FP Sector Outlook
3
Patterns and Trends in Trade
Destination of Processed Food exports: 58 countries Malaysia, Thailand China, EU_France, Poland, Africa)
Very few rice millers exporters (14 firms);4 food processing firms in SEZ
Small % of total exports : rice export volume(2015): 0.46 M tons , $210 Million; Informal Sector: $512 Million (2.3 Million MT) Thailand and Vietnam
Strict SPS requirements
Estimates of Animal, Food and For. Product Imports by Cambodia, US$ thousand, 2001-201
2001 2009 2011Fo
od
& L
ive
An
imal
s
Sugar/sugar prep/honey 49,352 194,810 292,634
Miscellaneous food products 19,924 100,838 183,984
Animal feed ex un-milled cereals 1,501 59,287 121,400
Cereals/cereal preparation 22,403 61,714 106,353
Dairy products & eggs 16,726 48,943 73,128
Vegetables and fruit 12,620 51,560 55,154
Live animals except fish 214 46,526 52,109
Coffee/tea/cocoa/spices 1,358 11,488 32,757
Fish/shellfish/etc. 7,716 23,555 29,071
Meat & preparations 387 2,346 26,750
No
n-F
oo
d
Pro
du
cts
Natural rubber 1,898 968 3,572
Oil seeds 311 658 2,010
Wood and wood products 48 601 137
Nat. gum/ resin/ pharm. plants etc 143 26 20
Source: Cambodia Trade Integration Strategy 2013-2018 and Trade SWAp Road Map 2013-2018
Agro-Industrial Products are among the Priority Sector of Cambodia (IDP 2015-2025)
• New industries markets with high value-added products: machinery/mechanic/electronic/electric equipment/ transport assembly and natural resource processing
• Drugs and medical equipment production, construction materials, packaging equipment for export, furniture manufacturing and industrial equipment, etc.
• Agro-industrial products
• Supporting industries serving regional production chains linked with either global markets
Industry share in employment (ADB Country Diagnostic Study 2014) : 50% garments25% construction10% food processing; 13% other manufacturing
FP Total Persons Engaged
0 10,000 20,000 30,000 40,000
Manufacturing of fish and molluscks
Processing of meat
Manufacture of starches and starch…
Manufacture of malt liquors and malt
Manufacture of soft drinks
Manufacture of bakery products
Manufacture of macaroni, noodles,…
Distilling, rectifying and blending of…
Manufacture of sugar
Manufacture of grain mill products
Regular Employee
Food Processing (FP) Number of Establishment
0 5000 10000 15000 20000
Manufacturing of fish and molluscks
Manufacture of soft drinks
Manufacture of starches and starch…
Manufacture of wines
Processing of meat
Manufacture of bakery products
Manufacture of macaroni, noodles,…
Distilling, rectifying and blending of…
Manufacture of sugar
Manufacture of grain mill products
Establishment
FP Annual Sale (million US$)Group Sale
Manufacture of soft drinks 52,922
Manufacture of grain mill products 13,442
Manufacture of macaroni, noodles and similar
farinaceous products10,302
Processing of food and vegetables 3,955
Manufacture of malt liquors and malt 3,765
Distilling, rectifying and blending of spirits 764
Manufacture of wines 764
Manufacture of vegetable oils and fats (except
palm oil, coconut oil and corn oil)696
Processing of dairy products 370
Processing of meat 357
FP Export Value
$0 $50 $100 $150 $200 $250 $300
Manufacture of bakery products
Manufacture of macaroni, noodles,…
Manufacture of malt liquors and malt
Manufacture of vegetable oils and fats…
Processing of fish and molluscks
Processing of food and vegetables
Manufacture of wines
Manufacture of sugar
Manufacture of starches and starch…
Manufacture of grain mill products
Export Value (Million)
FP Registration
0% 20% 40% 60% 80% 100%
Manufacture of macaroni, noodles,…
Manufacture of grain mill products
Manufacture of wines
Manufacture of starches and starch…
Manufacturing of fish and molluscks
Processing of meat
Manufacture of bakery products
Processing and preserving of fruit and…
Manufacture of soft drinks
Manufacture of cocoa, chocolate and…
Registered Enterprise
Registered Not registered
Top Ten FP Products(Based on the 6 Criteria)
Product Rank
Manufacture of grain mill products 1
Distilling, rectifying and blending of spirits 2
Manufacture of soft drinks 3
Manufacture of sugar4
Manufacture of malt liquors and malt5
Manufacture of macaroni, noodles, couscous and similar farinaceous
products 6
Manufacturing of fish and molluscks 7
Manufacture of starches and starch products 8
Manufacture of vegetable oils and fats 9
Manufacture of wines 10
Ranked based on: (1) No. of Establishments; (2) Registration; (3) Person Engage; (4) Annual Sale; (5) Export Value; (6) Emerging Industry
Strengths of the Manufacturing SectorEnjoys some benefit from the market access to
the US, EU, Canada and Japan through trade agreements
Food, beverage and tobacco industries slightly increased (GDP) due to the government policy of promoting export particularly rice products (CDC, Economic Overview of Cambodia).
Cambodia is centrally situated for easy access to major Asian economies
Quick and easy business & investment licensing registrations (RADIUS)
Issues Specific to FP (KII and Literature Review) Most industries are family-based with lack of
entrepreneurship and limited use of technology limiting its competitiveness in the international markets.
High logistics cost (RADIUS); Expensive cost of transportation; the waterways and railways transport (which is cheaper than land transportation) are not well-developed
Myanmar emerging as low cost rice exporter and competitor with duty-free status
High energy cost (CAMFEBA, 2013). The technology for alternative energy such as gasifier is still not viable
Lack of skilled technicians on rice milling technology. Rice millers has to import Technicians from Thailand and Vietnam
Expensive cost of certification (AMRU KII)Outmoded machines (e.g. chippers for cassava) (Value Chain
Info Unit, 2016)No warehouses to store rice to be exported to other countries
Thank you!!!