World Bank Documentdocuments.worldbank.org/curated/en/... · attributable to physical damage...

THE WORLD BANK FAU 12

FAU-12

SWCTOAL URARYINUNAONAL I'NK

FORRgCOWSThUCTION AND 0EVELOPMEN1-t

-JUN2 0986

Agro-Industry ProfflesFRUITS AND VEGETABLES

698. A371985FAU12

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PROFILES IN THIS SERIES:

OILCROPS - OVERVIEW ........... FAU-01

OIL SEEDS ..................... FAU-02

OIL PALM.e. oeo..................... FAU-03

COCONUT ... ee........................ FAU-04

SUGAR. ..... ..........o .......o. FAU-05ETHANOL. ......... ........o..o.ooo. FAU-06WHEAT. ..... .........o.o ....... oo. FAU-07RICE o e o o .... o....e..ooo....o..ooFAU-08

CORN oooo......................... FAU-09CASSAVA. ......... ........o..o.oo. FAU-10ANIMAL FEEDS...ooo ...... o... oFAU-11

FRUITS AND VEGETABLES ........ FAU-12

RUBBER. .. ....... ........o.o.o.o .. FAU-13COFFEEeo.o...................o....e . FAU-14

TEA .o..o......o..eooo.o.o....ooFAU-15

COCOA ............................ FAU-16COTTONoo.o......................o.o. FAU-17

MEAT ND ES.......... .o..o.eo..o FAU-18

SPICES AND ESSENTIAL OILS .o.o.............FAU-19

FOREWORD

The nature of project and sector work in the World Bank is suchthat staff are often called upon to work outside their majorfields of specialization, if only to make an initial judgement onthe utility of further, often costly, investigation. Under thesecircumstances, up-to-date and authoritative reference material isessential.

The profiles in this series are designed for use by operationalstaff with experience in the agricultural sector but who do nothave a technical knowledge of the particular commodity underdiscussion. Their purpose is not to substitute for technicalexpertise but to provide a reliable inhouse reference which willhelp Bank staff to determine when and what expertise is needed inthe detailed evaluation of investment proposals in agro-processing.

The conditions for any particular proposal are bound to be uniquein a number of respects, and the use of norms and general data inproject analyses could give rise to significant errors. On theother hand, by providing responsible staff with a guide to theissues on which appropriate expertise should be sought, theseprofiles can contribute to the overall quality of agro processinginvestment. Used with care, they should also facilitate broadpre-screening such as may occur during sector work andreconnaissance.

Questions, comments and further inquiries should be addressed to:

Agro-Industries AdviserFinance and Agro Industry UnitAgriculture and Rural Development Department

The contribution of Kitson Consulting Ltd. in the review of thisprofile is gratefully acknowledged.

September 1985

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ABSTRACT

The objective of this Profile is to provide a review of the fruitand vegetable processing industry, from storage in the freshstate through processing to packaging and market aspects. Itcontains specifications of relationships between farm andprocessed weights, storage specifications, and recommendedstorage conditions. A glossary of key words is included as wellas a list of useful references. The Profile traces pre-storagetreatments, including pre-cooling and coatings and films, andcovers processing, canning, freezing, drying, aseptic packagingand juice processing. Alternative types of containers arediscussed. Market aspects, such as grades, standards, and demandpatterns are covered, as are location and scale of processingplants. Representative investment and operating costs areoutlined in an Annex. Conversion tables (Metric/US) are includedat the end of the Profile.

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Fruits and Vegetables

CONTENTS

DATA SHEET .................................................. i

INTRODUCTION ................................................ 1

GLOSSARY .................................................... 1

RAW MATERIALS ............................................... 2

STORAGE ..................................................... 3

PROCESSING ................................................ ll

FREEZING ................................................... 20

DRYING ..................................................... 22

I4MARKETING ASPECTS ........................................... 26

OTHER ...................................................... 27

BIBLIOGRAPHY ............................................... 29

ANNEX I EXAMPLES OF INVESTMENT AND OPERATING COSTS

ANNEX II CONVERSION TABLES (METRIC/US)

ANNEX III CONVERSION FACTORS FOR FRUITS AND VEGETABLES

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Fruits and Vegetables

DATA SHEET

Conversion factors for canned, dried, and frozen fruits andvegetables, as well as frozen juices and concentrates, are listedin Annex III, Tables 1-6.

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0INTRODUCTION

While most fruits and vegetables do not significantly contributeto protein, fat, or carbohydrate requirements in the diet, theydo constitute a major source of vitamins, flavor, and variety(Pyke, 1981).

The great majority of the world's fruit and vegetable productionis purchased for final consumption in its fresh state. Methodsof extending storage life include disinfestation, atmosphericcontrol, and application of films and coatings. Other foodpreservation processes, such as canning, aseptic packaging,freezing, and drying, are applied to produce which must be storedfor longer periods of time.

For more detailed information, the reader is referred to L.P.Hanson's Commercial Processing of Fruits and CommercialProcessing of Vegetables, M. Pyke's Food Science and Technology,and Commercial Fruit Processing, (1975) by J.G. Woodroof and B.S.Luh.

GLOSSARY

Blanching A mild heat treatment used to inacti-vate enzymes present in foods.

Clostridium Botulinum One of the most heat resistant foodpoisoning organisms. It causes aproblem in low-acid canned foods such asvegetables, fish and meat.

Cryogenic freezing A quick-freezing method usually involv-ing the use of liquid nitrogen or liquidcarbon dioxide.

Drying Ratio The ratio of prepared raw materialweight to dry product weight.

Ethylene A gas which, in very low concentrationsaccelerates the ripening of fruits.

Exhausting In canning, the removal of air from cancontents and headspace.

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Headspace The space between the top of a filledcontainer and the contents. Thisensures that a vacuum will form when thesealed, heat-processed can is cooled.

High-Acid Foods Products with pH 4.0 or lower. Thisincludes most canned fruits and juices,the common exceptions being somevarieties of tomatoes.

Hydrobarics A method of extending the period ofproduce freshness by up to six timesthrough control of pressure, tempera-ture, humidity, and ventilation.

Low-Acid Foods Products with pH 4.5 or higher. Thisincludes most canned vegetables, cannedpasta, soups, stews, canned meats andfish.

Pasteurization Partial sterilization involving theinactivation of yeasts; importantin the processing of fruit juices,purees, nectars, and fruit sauces.

Shrinkage Ratio The ratio of unprepared raw material(Drying Ratio) to dry finished product (usually basedon weight).

RAW MATERIALS

While there is no technically valid means of distinguishingbetween fruits and vegetables, Considine (1982) provides somegeneral guidelines which reflect the common usage of the terms.The product is a vegetable if: it is eaten cooked, or, when raw,in salads and relishes; it is the product of a herbaceous plant,rather than a shrub or tree; and the edible portion of the plantis a leaf, petiole, stem, or root. A fruit generally is consumedas a dessert and is characterized by a special aroma and flavordue to the presence of fruit acids, sugars and tannins. Somesucculent-vine 'fruits', such as tomatoes and squashes, arecommonly known as vegetables.

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Most fruits fall into one of three categories (Considine, 1982):

(1) Deciduous tree fruits, e.g., apples, apricots, cherries,peaches, pears, and plums;

(2) Citrus tree fruits, e.g., oranges, lemons, grapefruits, andtangerines;

(3) Bushberries, e.g., strawberries, blackberries, raspberries,and blueberries, red and black currants, kiwi fruit.

Most vegetables, according to Pyke (1981), can be classified as:

(1) Green and leafy vegetables, e.g., lettuce, cabbage,cauliflower, brussel sprouts, spinach, and turnip greens;

(2) Peas, beans, and lentils; and(3) Roots, which are further classified as:

(a) Yellow, vitamin-A active roots, e.g., carrots, yams andsweet potatoes;

(b) No-vitamin-A active roots, e.g., turnips, swedes, andonions; and

(c) Potatoes.

STORAGE

Fruits and vegetables may be preserved in their fresh state forperiods ranging from a few days (berries) to 10 months or more(apples, potatoes) by holding in cool storage with or withoutcontrol of other aspects of the storage atmosphere.

Cool Storage - The majority of fruit and vegetable losses areattributable to physical damage occuring during harvest, orduring post-harvest handling, and concurrent or subsequentmaturation and microbial spoilage. Losses are greater indeveloping countries with high year-round temperatures.

Post-harvest pest control is not typically a major concern interms of product deterioration. It is, however, an issue ofconcern to exporters as the product may be the host of insectspecies that can be transmitted to areas in which a complimentaryhost is cultivated. The most widely used fumigant, ethylenedibromide, has now been banned by major importers on the basis ofevidence of associated health hazards. Longer term solutionsprobably include irradiation, but the technical and regulatoryissues surrounding disinfestation are in a rapid state of changeat this time, and individual importer requirements varyconsiderably. General solutions cannot be offered with

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confidence, but the feasibility of investments for fruit produceexport must include investigation of this issue for the productsand markets in question.

According to Thorne (1981), deterioration in vegetables isrelated to the biological function of the edible tissue, which inturn is related to metabolic rates. Accordingly, the most rapidrate of deterioration occurs in fast-growing shoots, e.g.,asparagus and mushrooms; the lowest rate occurs in specializedstorage organs, e.g., potatoes, onions, and garlic. Respirationin biological materials produces heat and this respiration heatis related to the respiration rate in terms of mg of C02/Kg/hr.Typical rates of evolution of heat by fresh fruits and vegetablesare given in Table 1 (see following page).

The natural seed-release function of fruits requires thedeterioration of their commercially-valuable fleshy components.The principal means of retarding this deterioration, and thereby,extending fruit and vegetable storage life is through control oftemperature and humidity conditions during storage. Storagerequirements differ according to produce type. The recommendedstorage condition and expected storage life for a variety offresh fruits and vegetables is provided in Table 2.

More generally, storage life is influenced by production zones,seasonal atmospheric conditions, maturity at harvest, care inhandling, delay between picking and storing, and storagepractices (Abbott, 1970). Certain root vegetables, such aspotatoes, have a temperature-dependent mechanism for convertingstarch to sugar. Following cool storage with a concurrent sugarbuildup it may be necessary to hold the tubers at 20 degrees C orhigher temperature for up to several weeks in order to reconvertsugars to starch.

Storage of different fruit and vegetable types in the samechamber is generally considered safe, although problems may arisewith odor absorption. Particular combinations to avoid are(Abbott, 1970):

- apples and either celery, potatoes, cabbage, or onions;- celery and onions;- citrus fruits and any strong-smelling vegetables.

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Table 1: Approximate rates of evolution of heat by certainfresh fruits and vegetables when stored at thetemperature indicated.

Source: Porritt (1974)

Rate of evolution of heat (Btu per ton per 24 hours)Commodity 32°F(0.0°C) 400FI4.40 C) 60°F(15.6°C) 700 F121.10C)

Apples 800 1,500 6,000 8,000Asparagus 12,000 18,000 40,000 50,000Beans

Green or snap 6,000 10,000 40,000 50,000Lima 2,800 5,000 25,000 35,000

Beets, topped 2,700 4,100 7,200 9,000Blueberries 2,000 3,500 8,000 10,000Broccoli, sprouting 4,400 17,000 50,000 68,000Brussels sprouts 4,400 9,000 20,000 28,000Cabbage 1,000 2,100 6,000 10,000Carrots, topped 3,000 4,400 8,100 12,000Cauliflower 3,600 4,500 10,000 12,500Celery 1,600 2,400 8,200 10,200Cherries 1,000 2,500 6,500 8,500Corn, sweet 9,000 13,000 38,000 64,000Cranberries 700 1,000 2,200 3,200Cucumbers 1,700 2,500 6,000 8,000Grapes, American 600 1,200 3,500 7,200Lettuce, head 2,300 2,700 8,000 12,000Lettuce, leaf 4,500 6,400 14,000 18,000Melons, cantaloupes 1,300 2,000 8,500 12,000Mushrooms 7,000 15,000 46,000 63,000Onions 500 800 2,400 3.600Oranges 800 1,500 4,200 5,500Peaches 1,300 2,000 9,000 17,000Pears 900 1,700 10,000 12,000Peas, green 8,400 15,000 42,000 60,000Peppers, sweet 2,700 4,700 8,500 11,000Plums 700 1,500 2,800 3,800Potatoes, imnature 800 2,600 5,000 6,500Potatoes, mnature 700 1,200 2,400 3,000Raspberries 5,000 8.000 22,000 28,000Spinach 4,500 11,000 38,000 46,000Strawberries 3,800 6,000 20,000 26,000Sweet Potatoes 2,400 3,400 6,300 7,500Tomatoes, rnature green 600 1,100 6,200 8,000Tomatoes, ripe 1,000 1,300 5,600 8,000Turnips (rutabaga) 1,900 2,200 5,000 5,500

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Table 2: Recommended Storage Conditions and ExpectedStorage Life for Fresh Fruit. (Abbott 1970)

Product T&qmerat re Relative ExpectedF) ( C) humidity (%) storage life

Almonds in shell 32-45 0-7 60-75 10-12 monthsApples 30-39 -1-4 85-95 3-8 monthsApricots 30-32 -1-0 85-90 1-4 weeksAvocados 41-55 5-13 85-90 2-4 weeksBananasGreen 53-58 11.5-14.5 90-95 10-20 daysColored 56-61 13-16 85-90 5-10 daysBlackberries 30-32 -1-0 90 2-3 weeksBlack currants 30-32 -1-0 90 1-2 weeksCashew apples 32-35 0-1.5 85-90 4-5 weeksCherries 30-32 -1-0 85-90 1-4 weeksChestnuts 32 0 70 8-12 monthsCoconuts 32 0 80-85 1-2 monthsCranberries 36-40 2-4.5 90 1-3 monthsFigs 30-32 -1-0 90 7-14 daysGooseberries 32 0 90 2-3 weeksGrapes 30-32 -1-0 85-90 1-5 monthsGrapefruits 40-60 4.5-15.5 85-90 1-3 monthsGuavas 45-50 7-10 85-90 3-4 weeksLemonsGreen 52-58 11-14.5 85-90 1-4 monthsColored 39-50 4-10 85-90 3-8 weeksLimes 46-50 8-10 85-90 3-6 weeksLichee fruit 32-35 0-1.5 85-90 5-11 weeksMandarins 39-45 4-7 85-90 3-12 weeksMangoes 45-50 7-10 85-90 4-7 weeksMangosteens 39-42 4-5.5 85-90 7 weeksMelons 32-50 0-10 85-90 1-7 weeksHoneydew 59-70 15-21 70-80 2-6 monthsWatermelon 36-40 2-4 85-90 2-3 weeksNectarines 30-32 -1-0 85-90 3-7 weeksOranges 30-45 -1-7 85-90 1-6 monthsPassion fruit 42-45 5.5-7 80-85 4-5 weeksPapaya 39-50 4-10 85-90 2-5 weeksPeaches 30-34 -1-1 85-90 1-8 weeksPears 29-35 -1.5-1.5 85-90 1-7 monthsPersi.mons 30-32 -1-0 85-90 1-2 monthsPineapplesGreen 50 10 90 2-4 weeksRipe 40-50 4.5-10 85-90 2-6 weeksPlums 31-34 -0.5-1 85-90 2-8 weeksRaspberries 32 0 85-90 3-5 daysRed currants 32 0 90 2-3 weeksStrawberries 32 0 85-90 1-5 days

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Table 2 (continued)

Product T&qDerat re Relative ExpectedF) (_C) humidity (%) storacre life

VEGEIAtESAsparagus 32 0 95 3 weeksBeans

Green 45-50 7.2-10 85-90 8-10 daysLima 32 0 85-90 2 weeksBeetsBunched 32 0 90-95 10-14 daysTopped 32 0 90-95 1-3 months

Brocolli 32 0 90-95 1 weeksBrussels sprouts 32 0 90-95 3-4 weeksCabbageEarly 32 0 90-95 3-4 weeksLate 32 0 90-95 3-4 monthsCarrotsBunched 32-34 0-1 95 2 weeksTopped 32-34 0-1 95 4-5 monthsCauliflower 32 0 90-95 2 weeks

Celery 32 0 95+ 3 monthsCorn, sweet 32 0 90-95 8 daysCucumbers 45-50 7-10 95 10-14 days0 Eggplants 45-50 7-10 85-90 10 daysGarlic 32 0 70-75 6-8 monthsHorseradish 30-32 -1-0 90-95 2-3 weeksKohlrabi 32 0 90-95 2-4 weeksLettuce, head 32 0 95 2-3 weeksMushrocms, cultivated 32 0 85-90 5 daysOnion sets 32 0 70-75 5-7 monthsOnions, dry 32 0 50-70 5-9 monthsParsnips 32 0 95 2-4 monthsPeas, green 32 0 95 1-2 weeksPeppers, sweet 45-50 7-10 85-90 8-10 daysPotatoes

Early crop 50-70* 10-21* 85-90 1-3 weeksLate crop 45-50* 7-10* 85-90 4-9 months*Pumpkins 45-50 7-10 70-75 2-3 monthsRadishSpring, bunched 32 0 90-95 2 weeksWinter 32 0 90-95 2-4 monthsRhubarb 32 0 90-95 2-3 weeksRutabaga or turnip 32 0 90-95 6 monthsSpinach 32 0 90-95 10-14 daysSquashSummer 45-50 7-10 70-75 2 weeksWinter 45-50 7-10 70-75 6 monthsSweet potatoes 55-60 13-15.5 85-90 4-6 monthsTomatoesRipe 50 10 85-90 3-5 daysMature green 55-60 13-15.5 85-90 2-6 weeks* temperatures and storage for potatoes vary according to intended use

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Controlled Atmosphere Storage

In controlled atmosphere (CA) storage, the temperature, humidity,and atmospheric composition are regulated in such a way as tomaximize produce shelf life. The term usually refers torefrigerated storage with reduced oxygen and increased carbondioxide concentrations, and maintenance of a relatively highhumidity level. This method is frequently applied to apples,tomatoes, bananas, cherries, limes, avocados, and guavas, amongothers.

Three features of the environment are particularly important inthe extension of fresh produce shelf life:

(1) Temperature is the most important for two reasons.First, it influences the rate of respiration, which in turninfluences the rate of tissue degradation. Secondly, itinfluences the physiological activity of micro-organismswhich can lead to spoilage. For most fruits and vegetables,lower temperatures are recommended. For some which areparticularly sensitive to the cold, however, too lowtemperatures can be damaging. Bananas, mangos, avocados,pineapples, squash, tomatoes, and melons are included amongcold-sensitive produce. (Refer to Table 2 for recommendedtemperatures.)

(2) Humidity regulates the rate of water loss. Ifatmospheric humidity is below the optimum for any length oftime, drying and subsequent weight loss occur; if it isabove optimum, there is an increased tendency for fruits andvegetables to rot.

(3) Composition of the atmosphere influences the rate ofrespiration and with it, the rate of ripening. Fresh fruitsand vegetables are living entities which consume oxygen andrelease carbon dioxide into the atmosphere. As the oxygenlevel in the atmosphere falls below its normal 20%concentration, so, too, does the rate of producerespiration. In an operation of this sort, the fruit orvegetables are placed in closed containers which are thenplaced in a gas-tight room equipped with a circulation fan.The existing atmosphere is purged to the targetconcentration of oxygen, usually between 1-4%; if too littleoxygen is available, anaerobic respiration will take place,with serious degradation effects. The carbon dioxide levelin the chamber will eventually rise; if left uncontrolled,

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this can stifle the produce and cause 'brownheart' and'invasive' alcohol poisoning in apples and pears. It can becontrolled by conducting the atmosphere through a causticscrubber which absorbs the carbon dioxide. Inert gases suchas nitrogen, argon, helium, and neon are often used aspurging gases.

Hydrobaric storage combines controlled atmosphere techniques withthe maintenance of low pressure to extend the storage life ofperishible produce by up to six times (Considine, 1982). Thereduction of pressure permits the release and removal of ethyleneand other gases which are generated by the fruit or vegetable,which normally accelerate ripening and subsequent spoilage. Theresult is a slowing of metabolic processes.

Pre-Storage Treatments

Precooling

The greatest refrigeration load occurs when the storage is beingfilled with hot produce that must be cooled to the requiredholding temperature. Once field heat has been removed,refrigeration requirements are greatly reduced and arise mainlyfrom heat leakage into the storage and from respiration heat.Cold storages must be designed so that cooling can beaccomplished rapidly while uniform holding temperatures aremaintained in the remainder of the produce. Alternatively, someform of precooling must be used.

One precooling method makes use of high-velocity cold air inspecially designed rooms or tunnels where produce is stacked soas to provide maximum exposure to the air. This form ofprecooling is used for many products delivered to the marketdirectly after harvest.

Hydrocooling, in which cold water is used to transfer heat fromthe product, is one of the most effective methods of precooling.It is used extensively for commodities such as corn, asparagus,celery, carrots, radish, and peaches. In this process, theproduce is immersed or exposed to a spray or cascade of coldwater. Unsatisfactory results with hydrocooling are causedmainly by insufficient cooling time, exceeding the capacity ofthe refrigeration unit to keep water cold, or failing to provideadequate exposure of the product to the water.

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Contact icing is a cooling method in which shaved or crushed iceis added to the top of the product in the container or to the topof the load of produce. It is often used in rail shipments tocool the load in transit. Lettuce, spinach, radish, carrots, andother commodities that lose moisture readily are often cooled inthis way.

Vacuum cooling is one of the most effective precooling methodsfor leafy vegetables such as lettuce, spinach, and celery. Theprocedure depends on the principle that water boils at a lowertemperature as the pressure is reduced; for example, at a vacuumof 4.6 mm of mercury water boils at 32 degrees F (0 degrees C).Cooling is achieved by evaporation of some of the water in theproduce, usually resulting in about 1.5-4.5 percent weight loss.Prewetting of the produce reduces water loss to some extent. Theadvantage of the vacuum method is that a packed product such aslettuce can be cooled quickly and uniformly. (Barger, W.R.,1961,1963.)

Coatings and Films

A variety of films and coatings are used to delay overripeningand spoilage. These include:

Transparent Plastic Films. The produce is sealed with a layer orlayers of plastic wrap with certain gas permeable propertiesdesigned to maintain a reduced-oxygen atmosphere within the film.Lettuce is commonly packaged in this way.

Wax Coatings. A thin coating of molten wax is sprayed evenlyonto fruits and vegetables. This improves storage life bychecking shrinkage due to water loss; it also improvesappearance. Citrus fruits, cucumbers, tomatoes, cantalope,apples, potatoes, and sweet potatoes are among produce types towhich wax coatings are commonly applied.

Polymeric Coatings. These are used to reduce moisture loss andrate of transpiration through produce skin. The result is aslowdown in the rate of natural aging and prolonged storage life.The coating is applied to a thickness of 0.25-0.75 mm, bydipping or spraying. Among the fruits to which polymericcoatings are sometimes applied are citrus fruits, bananas,cherries, grapes, plums, pears, peaches, apricots, melons,avocados, pineapples, apples, and berries.

Organic Latex Coatings. These form a non-toxic, water-insoluble,flexible film with oxygen, carbon dioxide, and water vapor

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transmission properties which reduce post-harvest metabolicactivity. They are applied by dipping, spraying, or rolling,followed by drying. Cool air-drying is preferable foruniformity; with hot air drying, the outer surface often driesfirst, forming a seal which makes inner-surface drying morediffictilt.

Dry Pre-gelatinized Starch. This provides a smooth, non-stickcoating for ease in handling and packaging of sticky foods. Italso protects against oxidative deterioration, providesreinforcement for fragile food pieces (e.g., dried beans orpeas), and enhances produce appearance with improved gloss andsheen.

Gum Coatings. These aid in the retention of natural flavor,shape, and textures.

PROCESSING

The principal objective of fruit and vegetable processing ispreservation, i.e., to halt natural deterioration caused bymaturation and spoilage by organisms. Other objectives includemaintenance of texture, flavor, appearance, and nutritive contentas close as possible to the fresh state.

Principal preservation methods are canning, aseptic packaging,freezing, and drying. Each of these methods is discussed below.Sterilizing with ionizing radiation (usually gamma rays) is notyet widely used for food preservation and is not discussed here.

Preliminary operations of sorting, grading, cleaning, peeling,pitting, dicing, and/or slicing are common to most processingmethods.

Canning

Canning is a thermal preservation method designed to checkmicro-organism utilization of food as a growth medium. Theobjective of canning is to render harmful micro-organismsineffective without impairing the product. This is accomplishedthrough0thermal sterilization at temperatures ranging from110-140 C. The commercial shelf life of canned products isusually at least one year and may be three years or more in thecase of all but highly acidic or highly pigmented (red) fruits.

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Fruits and vegetables commonly preserved by canning include greenbeans, carrots, corn, peas, pineapple, peaches, pears, apricots,apples, asparagus, cherries, potatoes, and plums.

Canning involves the following operations: cleaning andpreparation; blanching; filling and exhausting; sealing;sterilization; and cooling.

Cleaning is carried out mechanically in immersion or spraywashers some of which may be fitted with brushes or combinationsof brushes and abrasive rolls. Peeling is largely done bycaustic peelers, atmospheric or superatmospheric pressure steampeelers, or occasionally by abrasive peelers. Caustic peelersare among the most efficient but cause significant wastetreatment problems.

Blanching involves a brief exposure of the product to hot wateror steam. The purpose is fourfold (Pyke, 1981):

(1) To expel bubbles of gas which are otherwise retained in thetissue;(2) To wilt tissues, thereby facilitating packing;(3) To inactivate enzymes; and(4) To improve color and flavor of some products, e.g., peas.

Filling of washed, open cans follows blanching. This is usuallydone mechanically with high-speed filling machines. A measuredamount of prepared produce is deposited into each container alongwith salt brine, syrup, water, or water with artificialsweeteners. A small unfilled 'headspace' is left at the top. Ifthe headspace is too small, the can seams will strain duringprocessing. In addition, heat penetration, necessary forsterilization, may be affected, leading to unnecessary spoilageand waste. If the headspace is too large, there will be too muchair in the can. The filled can is transported to an 'exhaustbox', or in some plants, may pass through a vacuum or steam flowclosing machine.

The primary function of the container is to prevent the contentsfrom being infected by the re-entry of micro-organisms. Itsprotection remains for as long as the container remains unopened.Commonly used containers include cans, glass jars and bottles,aluminum pouches, and plastic containers.

Exhausting is the removal of air from the container contents andits headspace. This is generally done by exposing the filledcontainers to hot water or steam so that a vacuum will form at

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the top of the container when the lid is sealed and the can iscooled. Exhausting air from containers in this fashioncontributes to sustained product quality through: reduced strainon seams resulting from air expansion during processing; andreduced oxidation (a cause of deterioration in flavor and color)of contents; and reduced breakdown of vitamin C.

Sealing follows exhausting. The filled, exhausted cans aretransferred to a sealing machine, some of which operate at therate of more than 250 cans per minute. These machines hooktogether the edge of the cover and the rim on the can body sothat, when the loosely formed seam is rolled flat in a secondoperation, the can is hermetically sealed. This operation shouldtake place as soon as the appropriate temperature is reached atthe center of the container; delays may result in a loss ofvacuum and consequent bacteria spoilage. A capper, or cappingmachine, is used for sealing glass jars.

Sterilization is the application of heat to the filled containersto ensure the destruction of micro-organisms which can cause foodpoisoning or spoilage. Clostridium botulinum spores are amongthe most heat resistant of the food poisoning micro-organisms;therefore, as a minimum, sufficiently high temperatures must beapplied for a requisite period of time to ensure theirdestruction (Pyke, 1981). Heating requirements are alsodetermined by (1) can size, since larger cans are more difficultto penetrate; and (2) the acidity (pH) level of the contents.

Bacteria cannot grow in acid foods in which the pH level is lessthan 3.7. Therefore, in sterilizing acid foods, it is onlynecessary to ensure the destruction of yeasts and molds. Citrusfruits, plums, and most other fruits are classified as acid.Figs, pineapples, pears, and tomatoes are consideredborderline-acid, with pH levels around 4.5. Sterilization ofacid foods requires that small cans be heated to boiling for 8-16minutes or until the slowest heating point in the can reaches 850C. Any bacteria spores which survive will be unable to multiply.

Most vegetables have pH levels close to neutral and can beconsidered as non-acid; they are therefore subject to bacterialgrowth. During sterilization of non-acid foods, all parts mustbe heated to a minimum temperature of 1160 C (2410 F). Thisusually involves the application of steam under pressure of 10-15lb/sq in., to sealed cans placed in an autoclave (pressurecooker) or transported through a continuous sterilizer.

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Cooling follows sterilization. For small cans, the sterilizationchamber, or autoclave, is opened and cold water is introduced, orthe cans may be removed from the autoclave and passed through abath of cold water. Cooling takes place more gradually for largecans, since a sudden release may result in straining andbuckling. Pressure in the autoclave must be allowed to dissipateslowly, until inside can pressure falls to a safe level; agradual reduction in temperature follows. As cooling progresses,a vacuum develops within the cans.

Cans are cooled to an average or 'shakeout' temperature of about38 degrees C (100 degrees F). At this temperature they are stillwarm enough to ensure outside surface drying, thereby reducingthe danger of rusting. Wetting agents may be used in the coolingwater to speed drying.

For best results in storage, the following should be considered:

- Dry area storage will minimize the risk of rust, corrosion,and subsequent contamination;

- Cool atmospheric conditions will minimize the risk ofthermophilic spoilage, i.e., the multiplication of anyremaining thermophilic bacteria, which thrive in atemperature range of 50-80 degrees C (Hanson, 1975). Cooltemperatures will also minimize the loss of color andflavor.

- The use of labels and cardboard cases with a high chloridecontent and of unseasoned wood in the manufacture of storagecases can lead to corrosion and rust formation.

According to Pyke (1981), spoilage can usually be traced to oneof the following:

- Insufficient temperatures and/or insufficient time allotedfor the destruction of the most resistant types of bacteria;- Leakage in the can due to poor manufacturing quality orsealing;

- Corrosion caused by placing food with high acid content,high oxygen content, or red pigments in cans not designed towithstand these components.

14

- Poor storage conditions leading to rusting and corrosion;

- The entry of infected cooling water through minute holes inthe cans or through soft seam or gasket compounds on theends of warm cans.

Aseptic Packaging

One of the disadvantages of canning is that the high temperatureapplied over long periods, necessary to ensure thorough heatpenetration and sterilization (especially with large-sizecontainers), results in (1) a deterioration in flavor, color, andappearance of foods; and (2) a limited selection of containerswhich can withstand the rigors of processing (Pyke, 1981).Aseptic packaging minimizes these problems.

Disadvantages of aseptic packaging are: the relatively high costof the heat processing equipment; the cost and complexity of thecontrols; the relatively slow operating speeds; and the complextechnology involved in the process. Furthermore, if asepticallyprocessed food is not stored carefully at cool temperatures (i.e.at or below 20 degrees C) the advantages gained by the processmay be lost.

Aseptic packaging is a method of canning in which a cooled,sterilized, prepared food is placed in a sterile container, whichis subsequently sealed under sterile conditions. This processpermits the use of high temperatures, 130-150 degrees C (266-300degrees F), for short periods, ranging from a few seconds to sixminutes, in sterilizing the food.

Food sterilization involves rapid heating of food in liquid orpuree form by the use of a tubular or scraped-surface heatexchanger or by injection of process grade steam directly intothe product (Pyke, 1981). The hot product is passed through aholding tube at a controlled rate by means of a positivedisplacement pump. Sterilization takes place in the tube andthen the product is cooled to room temperature in a second heatexchanger before it is placed into presterilized containers andsealed under aseptic conditions. Containers may be sterilizedwith super-heated steam or possibly by gas flames.

Aseptic packaging eliminates restrictions on container size, andallows for increased variety and reduction in the cost ofpackaging materials. Foil and plastic sachets, waxed cartons,bag-in-box arrangements, thermo-formed aluminum pots, and

15

injection-molded plastics are examples of packaging materialsused (Pyke, 1981). These can be sterilized with hydrogenperoxide or ethylene oxide rather than heat.

Aseptic packaging methods are presently limited to the processingof liquid or mostly-liquid foods, due to the problems encounteredin rapid heat penetration of large particles (Pyke, 1981).

Juices

Juice processing consists of the following operations:extraction, filtration, de-aeration, pasteurization, andpackaging.

There are two principal methods of extracting juice from thefruit. For fruits such as pineapple, grapes, and apples, thewashed and prepared fruit must be milled or grated, then squeezedusing a hydraulic press or, in the case of pineapple, a screwpress. For citrus fruits, the individual pieces are cut in half,then squeezed mechanically as hemispherical knobs are pressedinto the opened halves. Rupturing of the outside skin should beavoided to eliminate contamination of the juice with bitter peeloils.

Filtration, the isolation of the pulp from the juice, followsextraction. For some juices, such as orange or grapefruit juice,some pulp is allowed to remain in the liquid so as to moreclosely approximate the freshly-squeezed equivalent. Forclarified juices such as apple or grape, a filter press orprecoat filter is generally used. In this equipment, juice isforced through a bed of filter aid such as diatomaceous earthwhich is supported on a fine wire or fabric mesh. A second stageof filtration through fine paper pads may be used to achieveoptimum clarity.

Cloudy juices are sometimes homogenized to increase stability ofthe suspended material.

Oxygen dissolved in the juice reacts with the vitamin C, therebydiminishing its nutritive content. It may also cause adeterioration of juice flavor as a result of other chemicalreactions. Hence, de-aeration is necessary to remove thedissolved oxygen. This is accomplished by spraying the juiceinto a vacuum chamber or allowing it to flow over a series ofbaffles while subject to a high vacuum (Pyke, 1981). Microscopic

16

air bubbles cling to any pulp present; hence, de-aeration is moredifficult for juices with a high pulp content.

Most bacteria growth is prevented by the acidity level of thejuice, and mold growth is inhibited with the removal of oxygen inde-aeration. Thus, yeasts are the major potential source ofmicrobial degradation. If allowed to multiply freely, theyferment juice sugars in the production of carbon dioxide andalcohol, causing a deterioration in juice flavor and possiblycausing the container to burst. Pasteurization, a partialsterilization process, effectively inactivates the yeast. Thisinvolves:

- heating the juice to 65 degrees C (150 F) for 30 minutes;- heating the juice to 77 degrees C (170 F) for 1 minute; or- heating the juice up to 88 degrees C (190 F) for shorterperiods (Pyke, 1981). This latter method is known as flashpasteurization; it is recognized as the least harmful tojuice flavor and is the most widely used in industry.

Tin-plated cans (especially those lacquered or enamelled forincreased resistance to the acid's corrosive effect), bottles,and plastic-lined cartons are commonly used in the packaging ofjuices. Washed containers are filled with hot juice comingdirectly from the pasteurizer. They are immediately sealed,inverted, and held briefly to sterilize the ends, then cooledrapidly to 37 degrees C or less before being cased and stored inthe warehouse.

17

Containers

Tinplate and glass containers have been used for heat-processedfoods for more than 150 years. More recently, two-piece aluminumcans, mostly in single serving sizes, have been used for fruit.

Multilayer pouches with one layer of aluminum foil have been usedfor a wide range of foods. The thin profile of pouches allowsvery rapid heat processing which may be an advantage for somefruits and vegetables; this is dependent on consumers accepting aprocessed product that is less well-cooked. Although pouchesthemselves require much less energy to manufacture, the need foroverpacking in cardboard cartons, for protection from abrasion inshipping and for convenient stacking and display, addssignificantly to the cost. For this reason, the total cost ofpouches is frequently equal to or higher than that of equivalentsize cans. Pouches have had their greatest commercial success inJapan where they are used for various meat sauces. Ifhigher-speed, lower-cost filling and sealing systems can bedeveloped at reasonable cost, retortable pouches may prove moreattractive worldwide.

Other, possibly more important, developments in the containerfield include recent innovataions in-can manufacture: side-seamwelding, nickle-plated cans, and two-piece cans. With the manyquestions about lead and even tin contamination from seam solder,it seems likely that most can manufacturers wordwide will beforced by regulations and market demand to replace seam solderingwith seam welding equipment by the end of this decade.Nickle-plated steel is now being produced and used for can-makingin Japan. It has the advantages of lower cost and better weldingcharacteristics than tinplate. One disadvantage may be the lackof the mild reducing (deoxidizing) effect of metallic tin on somecanned fruits and vegetables. Tin, for example, has a desiredbleaching effect on some light colored canned fruits and preventsprecipitation of soft yellowish flakes of rutin in cannedasparagus.

Glass containers usually used for fruit and vegetable productsinclude jars, tumblers, jugs and bottles. Glass has theadvantages of maximum corrosion resistance and chemicalinertness. Some consumers prefer the product visibility but thetransmission of light by glass presents a problem for manyproducts. Improvements will come in lighter-weight, strongerglass containers with more resistance to abrasion and heat shock.Glass plants are expensive to establish and are high energyconsumers, but the basic raw material -- silica -- is more widely

18

available than the steel, aluminum, or petrochemicals (plastics)required for other types of containers.

Both rigid and flexible plastic packaging is used for fruit andvegetable products. In addition to the problems of lighttransmission, similar to those of glass, some plastics arepermeable to oxygen and other gases. These problems maygenerally be overcome by laminating several layers of plastictogether to obtain the best properties of each. (A gooddescription of plastic containers and their applications may befound in Luh and Woodroof (1975) Commercial Vegetable Processing.This textbook also has excellent sections on tinplate, cans, andglass containers which are recommended reading on packaging ofprocessed fruit and vegetables.

19

FREEZING

The main component of fruits and vegetables is water. Freezingrenders this water inaccessible to micro-organisms by convertingit to solid form.

A major concern in freezing is water loss, since surface waterevaporates during the initial stages of cooling. This isimportant in processing, because frozen foods are sold by weight.With faster cooling methods, less moisture is lost. In addition,produce quality is better maintained, due to a reduction in theamount of cell wall breakage and in the size of ice-crystalsformed in the food. However, the cost of rapid freezing is muchhigher.

Freezing begins with (1) washing; (2) removal of the inedibleparts of the fruit or vegetable; (3) cutting into the appropriatesize for packaging or final product use; and (4) blanching. Thepurpose and operational details of blanching were explained inthe section on canning. In freezing, blanching is necessary forvegetables which are unstable in storage or which will beconsumed with minimal heating, e.g., boil-in-the-bag vegetables.Tomatoes, green peppers, onions, celery, carrots and berries(strawberries, raspberries, blueberries) can be frozen withoutblanching; however, thorough washing is recommended to minimizeundesirable reactions of compounds present in the damaged cells(Wolff, 1983). Fruits such as apples and peaches are frequentlytreated with antioxidants such as sulfur dioxide (SO2) orascorbic acid.

The freezing methods to be discussed are: still air freezing; airblast systems; plate freezers; liquid immersion freezing; andcryogenic freezing. Frozen orange juice is also brieflydiscussed.

Still Air Freezing

Still air freezing involves the placement of prepared, packagedproduce in a refrigerated chamber, generally cooled to -15degrees C. The result is slow, uneven freezing withdeterioration in texture. It is possible for degradation to setin before the item is thoroughly frozen, especially forlarge-size containers such as 200-liter barrels, sometimes usedto pack frozen fruit jam stock.

20

Air Blast Systems

An air-blast system makes use of fans or blowers to circulate theair within a cooling chamber (temperature range from -29 degreesC to -40 C or -20 degrees F to -40 F) (Considine, 1982). Thevelocity of the air (up to 1500 feet or 457 m. per minute) aidsin the transfer of heat. While this method is an improvementover still air systems, the freezing process is still relativelyslow, and as a result a high quality product cannot be assured.

Air blasting also takes place in a tunnel, on a fluidized bed orbelt. In this operation a blast of cold air is directed upwards,through a bed of produce. As the air hits the produce, portionsof it are caught up in its flow, causing it to behave similarlyto a liquid. When the bed is sloped, the flowing mass of foodneed not be conveyed mechanically.

Liquid immersion Freezing

This method is based on the principle that the most effectiveheat transfer is to a liquid, because of the large heat capacityof liquids compared with that of air (Wolff, 1983). The produceis immersed in a bath of very cold liquid, either directly,wrapped, or in metal containers. The liquids must be non-toxic,with a low freezing point, low viscosity, and high thermalconductivity. Salt solutions (brines) and invert sugar solutionsare often used for vegetables and fruits, respectively.

The advantages of this system over the air blast system aretwofold: (1) energy requirements are lower, since rapid movementof the immersion liquid past the product is not required; and (2)surface evaporation is reduced.

Cryogenic Freezing

This is a rapid freezing method in which the product is frozenthrough exposure to a cooling medium at very low temperatures.Liquid nitrogen, at a temperature of -195.8 degrees C, iscommonly used, as is liquid carbon dioxide. The cooling mediumis applied as a spray of liquid droplets; as a bath of coolingliquid; or in cold gas form (Considine, 1982).

Water losses and tissue damage due to cell damage are relativelylow. Furthermore, foods frozen in this manner are characterizedas having particularly good flavor. The per-pound cost of the

21

frozen product is, however, the highest of any of the methodsdiscussed herein.

Storage

Frozen foods should be stored at a maximum temperature of 0degrees F (-18 C). At this temperature they can be maintainedvirtually unchanged for more than a year, provided they arepacked in air-tight containers.

Major storage problems with frozen products do not generallyoccur in the storage chamber, but rather during loading,unloading, and delivery, at which time they are exposed topotentially harmful higher temperatures. It is very important instoring frozen foods to avoid storage temperature fluctuations asthese cause changes in ice crystal structure and thus more rapidloss of desirable texture. Flavor and color of frozen foods arealso adversely affected by storage temperature fluctuations.

DRYING

Drying involves the removal of moisture from foods, to the pointwhere the water content is lower than that needed for the growthof micro-organisms. The desired water content varies accordingto fruit or vegetable type, composition (of special relevance issugar content), and usage of micro-organism growth preventatives(Hanson, 1976). Normally, however, at least 95% of a product'swater content is removed, with the dual objective of extendingshelf life and reducing product volume (Considine, 1982). Thereis no clearly defined technical distinction between dried anddehydrated foods.

Fruits and vegetables to be dried should:

- have a high solid content in order to minimize drying costs(this can be influenced by variety chosen and agronomicpractices); and

- be of relatively high quality so as to minimize the costsincurred due to excessive trimming (King, 1980).Individual fruits and vegetables may have additional specialrequirements. Onions to be used in dehydration, for example,

22

should be highly pungent; if they are to be marketed in the OECDcountries, they should be white in color (King, 1980).

Commonly dried or dehydrated fruits and vegetables includeonions, potatoes, tomatoes, carrots, garlic, turnips, greenbeans, leeks, beets, okra, tomatoes, sweet peppers, sweetpotatoes, cabbage, bananas, peaches, pears, apricots, and apples.

The drying process consists of the following operations: (1)peeling; (2) preparation; (3) blanching; (4) preservation; and(5) drying.

Peeling of fruits and vegetables can be done mechanically, usingwater, steam, and chemicals (Hanson, 1976). Mechanical andatmospheric pressure steam peelers give relatively low yields andparticularly in the case of mechanical peelers, are expensive anddifficult to maintian. Chemical peelers, while giving minimumpeel losses, may cause problems in waste disposal and generallyprevent the use of peels in by-products. New developments inpressure steam peelers and "dry" caustic peelers for fruits andvegetables are helping to eliminate some of these problems.

* Chemical peeling involves spraying or dipping the product inorder to coat it with a hot (90-100 degrees C) solution of sodiumor potassium hydroxide. Concentration and immersion time dependon the fruit or vegetable to be peeled. After repeated use thesolution becomes loaded with skin particles and pulp, and must bereplaced.

Fruit or vegetable preparation follows peeling. This includespitting, removal of inedible portions, and slicing or dicing. Aneven thickness is desirable in slicing to facilitate uniformityin drying. The prepared product is usually kept under waterprior to blanching, to prevent discoloration. Depending on theproduct, it may help to add salt or sulfite to the water. (Thisis particularly true for potatoes and bananas.)

Some kinds of preparatory equipment can be used interchangeablywith a variety of produce types. That which is used for carrots,for example, can be used for other root crops; and that which isused for onions can be used for leeks and garlic (King, 1980).This is of particular importance when produce availability is ona seasonal basis.

Blanching, which is detailed in the section on canning, preventsenzyme action which would otherwise reduce the vitamin C contentand adversely affect color and flavor during drying. It is

23

required for vegetables such as okra, green beans, carrots,turnips, and cabbage, prior to drying. For others, such aspotatoes and sweet potatoes, it is optional. Some vegetables,such as onions, leeks, garlic, tomatoes, sweet pepers, andchillies, are never blanched. After blanching, produce must becooled, generally in a current of cold air, to prevent it frombecoming soft and mushy.

Preservatives are often applied after blanching or, whenblanching is not necessary, after slicing, to improve color andto prevent the growth of micro-organisms which causedeterioration. Salt, sugar, gaseous sulphur dioxide, andsolutions of sulfite salts are commonly used preservatives. Thelatter, which is the most widely-used preservative for driedfruits, can be produced on-site by the combustion of sulphur.The preserving agent must be allowed to deeply penetrate theproduct for best results.

Preservatives are not used in drying onions, leeks, chillies, andgarlic (ILO - JASPA, 1981).

Drying consists of two stages. In the first, the constant-ratestage, the product surface is saturated; hence, the rate ofevaporation/unit of surface is constant. In the second, thefalling-off stage, the transfer of moisture to the surface andits subsequent removal become increasingly difficult; hence, therate of drying falls. High temperatures (90-95 degrees C or 194-203 degrees F) can be used safely during the constant-ratestage; lower temperatures (55 degrees C or 130 F) should be usedduring the falling-off stage to avoid scorching (Pyke, 1981).

Sun- and shade-drying are the oldest and simplest methods, andcan be done on almost any scale. In both methods, the preparedfruit or vegetables are evenly spread on drying trays. They mustbe turned regularly to ensure drying uniformity. To avoidproblems of fading and to prevent the development of brown color,some produce (e.g., peppers, chillies, and okra) is dried in theshade. In shade-drying, good air circulation is of particularimportance. Contamination by dust and losses to insectsconstitute major problems for both of these methods.

Common types of mechanical driers include:

- Kilns, the simplest type, in which warm air passes up, frombelow, to heat the oven.

24

- Air chambers, the most common type, in which the preparedproduct is evenly spread on perforated trays. Heat is thenapplied in currents, driven by a system of fans.

- Vacuum trays, in which a chamber under a relatively highvacuum is filled with trays which are uniformly spread withthe product. Heat is provided by conduction from supportingshelves.

- Drum dryers, used in drying slurries and liquids (e.g.,mashed potatoes, applesauce and tomato puree). These are fedonto a revolving, heated, horizontal drum. The driedproduct which results is scraped off the drum and fresh feedis applied as part of a continuous process.

Dehydrated foods can be stored for more than a year withoutdeterioration. Prolonged exposure to temperatures above 28degrees C (82 F) may result in browning (Pyke, 1981). Formaximum storage life, dehydrated foods may be packed in sealedcontainers filled with inert gas.

25

MARKETING ASPECTS

Grade

Factors for which grade standards are normally developed forfresh and processed fruits and vegetables are listed in Tables 3and 4, respectively.

Table 3: Grade Standards for Fresh Crops.Source: Wolff, (1983).

Uniform grade nomenclature Standards for gradesColor requirements Tolerances for grade defectsPacking requirements Special definitionsDamage (degrees of) (e.g., texture, color, etc.)Styles Maturity requirementsStandard sizing Count per unit weightStandard weights Juice content (citrus)Standard pack Standards for exportSpecial standards for crops Sample plansfor processing Samples for grade andSolidity classification (lettuce) size determination

Table 4: Grade Standards for Processed Crops.Source: Wolff (1983).

Product description Liquid media requirementsFill of container Brix or soluble solidsQuality factors Drained weightColor SizeDefects Definition of termsFlavor TolerancesTexture Score sheetsSample plans Methods of analysisSample size Identity standardsSample unit size Grade definitionStyle (diced, creamed, etc.) Moisture contentLot inspection Sulfur dioxide contentLot compliance criteria Proportion of ingredientsNot all of the above standards need be specified for anysingle commodity

26

Market Demand

In both developed and developing countries, the demand forprocessed fruits and vegetables is increasing. This is theresult of three major factors (Abbott, 1970):

(1) Durability, which means the product is made available duringthe off-season and the risk of wastage during transport iseliminated.

(2) Convenience for the consumer, since cleaning and preparationtime are reduced.

(3) Taste, texture, and appearance which are appealing toconsumers.

Since 1965, the demand for canned products has leveled off, owingin part to (1) expansion of frozen foods into thehome-consumption market and of dried vegetables into theindustrial-consumption market; and (2) to a lesser extent, thegrowing awareness of the nutritional superiority of fresh foods.

Meanwhile, the demand for canned exotic fruit, such as papayas,mangos, guavas, and passion fruit, is increasing.

OTHER

Location

Because perishibility and bulk of raw fruits and vegetables aregreater than their canned, dried, or frozen equivalents,processing plants should be located as near as possible to theirsupplies of raw materials to minimize the risk of wastage and thecost involved in their transportation. Other raw materialconsiderations include amount, stability/seasonality of supply;and varietal availability. With reference to the latter, forexample, onion, potato, and tomato varieties with a highdry-matter content should be used for dehydration; andhigh-acidity tropical tomatoes should be avoided in canningbecause of the resultant unpleasant, bitter taste and usuallypoor color.

27

Other important considerations in the choice of location includethe availability of:

- ample supplies of potable water, since up to 8 tons of waterare required for each ton of product processed;

- facilities for liquid and solid waste disposal;

- fuel for boilers, driers, etc., electricity to operate plantmachinery and lights;

- labor with appropriate level of training/education;

- transport for inputs and outputs.

Scale of Operations

According to Thorne (1981), scale of operation should bedetermined by (1) the availability of raw material supplies; and(2) the relative simplicity/complexity of the processingoperation. With respect to the latter, more complex processingshould be maintained on a relatively small scale to avoidproblems resulting from the limited availability of skilledworkers. Other points are made in support of small-scaleoperations: (1) It is easier to make use of unconventionalsources of energy, such as solar, water power, and biogas; and(2) problems of water supply, waste disposal, and sewage are moreeasily resolved on a small scale.

For very small scale operations (less than 1 ton/hr.) it isdifficult and in many cases impossible to find appropriate sizeprocessing equipment as off-the-shelf items. Relative cost ofitems such as continuous blanchers, caustic peelers, etc., tendsto increase as size is reduced. Thus the cost/ton for blanchingwith a 10 ton/hr. blancher may be only five times that for a 1ton/hr. blancher.

28

BIBLIOGRAPHY

01. Abbott, J.C. (1970) Marketing Fruits and Vegetables.Rome: FAO.

02. Bartsch, J.A. and Blanpied, G.D. (1983). RefrigeratedStorage For Horticultural Crops. Ithaca, New York. 4853,Agricultural Extension Bulletin No. 448, New York StateCollege of Agriculture and Life Sciences, CornellUniversity.

03. Berk, Z. (1969) Industrial Processing of Citrus Fruit.New York: United Nations.

04. Cleland, A.C. and Earle, M.D. (1980) Energy Use in theFruit and Vegetable Processing Industry.Auckland: New Zealand Energy Research and Development

Committee.

05. Considine, D.M. (1982) Foods and Food Product Encyclo-pedia.New York: Van Nostrand Reinhold Co.

06. Das, R. (1981) Appropriate Technologies in Cereal Millingand Fruit Processing Industries.New York: Vantage Press.

07. Duncan, R.C. and E. Lutz (1982) Agricultural Protectionismand Import Penetration by Developing Countries in Indus-trial Country Markets.Washington: World Bank.

08. Economist Intelligence Unit, Ltd. (1972) Prospectus forCanning Fruits and Vegetables: East Caribbean and BritishHonduras Industrial Survey.London: Economic Intelligence Unit, Ltd.

09. Farrall, A.W. (1976). Food Engineering Systems, Volume I,Operations.Westport, Connecticut: The Avi Publishing Company, Inc.

10. Greig, W.Smith (1971). The Economics of Food Processing.Westport, Connecticut: The Avi Publishing Company, Inc.

11. Hanson, L.P. (1976) Commercial Processing of Fruits.Park Ridge, NJ: Noyes Data Corp.

29

12. Hanson, L.P. (1975) Commercial Processing of Vegetables.Park Ridge, NJ: Noyes Data Corp.

13. Hardenmark, J. (1974) Processing Fruit Juice - The QualityHay.Casablanca: UNIDO.

14. ILO - JASPA (1981) Appropriate Technologies in CerealMilling and Fruit Processing Industries.Addis Ababa: ILO.

15. International Trade Center UNCTAD/GATT (1982) World Marketfor Fruit Juices with Special Reference to Citrus andTropical Fruit Juices.Geneva: ITC - UNCTAD/GATT.

16. Jaikumar, R. (1982) Fruit and Vegetable Processing Indus-tries in India - Challenges and OPportunities. IN ForeignTrade Review (India), Vol. 16, No. 4, Jan-Mar 1982.

17. Javellana, C. (1981) Banana Processing and Marketing, INThe Planter, Kuala Lumpur, Vol. 57, No. 665, Aug 1981.

18. Joslyn, M.A. and Heid, J.L. (1963). Food ProcessingOperations (2 Volumes).Westport, Connecticut: The Avi Publishing Company, Inc.

19. King, P. (1980) A Guide to the Economics of Dehydrationof Vegetables in DeveloPing Countries.London: TPI.

20. Luh, Bor.S. and Woodroof, J.G. (1975). CommercialVegetable Processing.Westport, Connecticut: The Avi Publishing Company, Inc.

21. Ministry of Trade and Industry, Philippines (1984) Freshand Processed Fruits and Vegetables: Business and Invest-ment Opportunities with Emphasis on Exports, 1984.Manila: Ministry of Trade and Industry and the Board of

Investments.

22. Porritt, S.W. (1974). Commercial Storage of Fruits andVegetables. Publication No. 1532Ottawa: Agriculture Canada

30

23. Porter International Company (1963) A Survey of the Fruitand Vegetable Processing Industry in Morocco.Rabat: USAID.

24. Proceedings of the Conference on Tropical and SubtropicalFruits (1970) Held at the London School of Pharmacy,London, 15-19 September 1979.

25. Pyke, M. (1981) Food Science and Technology.London: John Murray.

26. Ryall, A.L. and Pentzer, W.T. (1982). Handlinq, Transpor-tation and Storage of Fruits and Vegetables (2 Volumes).Westport, Connecticut: The Avi Publishing Company, Inc.

27. Spilman, J. (1974) Citrus Juice Processing for the WorldMarket.Casablanca: UNIDO.

28. Sun, Marjorie (1984) EDB Contamination Kindles FederalAction. IN Science, Vol. 223 : 464-466.

0 29. Thorne, S., Editor (1981) Developments in Food Preserva-tion - 1.London: Applied Science Publishers.

30. USDA (1979) Conversion Factors and Weights and Measuresfor Agricultural Commodities and their Products.Washington: USDA.

31. Vandendriessche, H. (1976) Tropical Fruit Processing In-dustry: Case Studies of the Industry in Developing Coun-tries.Paris: OECD - DC.

32. Wolff, I.A., Editor (1983) CRC Handbook of Processing andUtilization in Agriculture, Vol. II: Plant Products.Boca Raton: CRC Press, Inc.

33. Woodroof, J.G. and Luh, Bor.S. (1975). Commercial FruitProcessinq.Westport, Connecticut: The Avi Publishing Company, Inc.

031

34. World Bank, EMENA Project Department (1977) Yugoslavia:Appraisal of Agriculture and Agro-Industries Prolect(Montenegro) and Agriculture and Agro-Industries II Pro-lect (Macedonia).Washington: World Bank.

35. World Bank, EMENA Projects Department (1980) Yugoslavia:Third Agricultural Credit Prolect, Prolect ImplementationFile.Washington: World Bank.

32

.

ANNEX I:

EXAMPLES OF INVESTMENT AND OPERATING COSTS

.

OF 3CANADA

Representative Investment and Operating CostsVEGETABLE PROCESSING - COST MODELS

Canning, drying and freezing costs based on an unpublishedfeasibility study for a plant designed to pack 1.9 million casesof 24/398 ml of product annually in a western Canadian prairieprovince.

COUNTRY: Canada

NOTE: The following costs for canning vegetables are 1980figures in 1980 Canadian dollars.

1980 CDN$ Costs/case of 24/398 ml. cans.

Product Cans Labels Cases Labor Utilities Overhead Raw TotalProduct

Asparagus 3.00 0.16 0.14 1.30 1.00 1.00 16.80 23.40

Peas 3.00 0.16 0.14 0.70 1.00 1.00 2.20 8.20

Green 3.00 0.16 0.14 0.70 1.00 1.00 1.60 7.60Beans

Corn 3.00 0.16 0.14 0.70 1.00 1.00 0.80 7.00

Carrots 3.00 0.16 0.14 0.70 1.00 1.00 0.60 6.60

PRICING

Retail prices would usually be 40% higher than the wholesale.The canner's selling price would include the production costgiven above plus capital write-off, cost of carrying inventory,and profit. This plant was estimated to cost CDN$7 million in1980; if the cost of buildings and equipment were to be writtenoff over five years, the wrt/case would be 0.74. Similarly,interest at a nominal 12% of an average debt of 3.5 million wouldadd a further $0.22/case.

OF 3CANADA

Inventory is estimated to be carried for an average of sevenmonths. This allows for a year round supply of product tomarket.

Using a simplified calculation of dividing the total value of thepack, $20.3 million, by the total pack of 1.9 million cases andmultiplying by 7/12 x 12%, gives an additional cost of$0.75/case.

(*Not shown in the table are some other vegetable packs,including a large pack of canned beans. Furthermore, productssuch as reconstituted dry beans or canned pasta are frequentlycanned to allow year round operation and more product to carrythe overhead and debt charges.)

DRYING

Relative costs of various drying methods have been given byKermit Bird in "An Appraisal of Some Food Processing Methods ofthe Future", U.S.D.A. Economic Research Service, MarketingEcononmics Division. Washington, D.C., 20250; paper presented tothe VI International Congress of Nutrition Symposium XII,Hamburg, Germany, August 9, 1966.

Freeze drying costs ranged from $0.20 to $0.50 per pound of wetproduct for apples. For example, at 12% solids dried toapproximately 4% moisture, this would amount to $0.23 to $0.57/lbof water removed ($0.51 - $1.25/kg). By comparison, continuousvacuum drying would cost $0.04/lb of water removed and leastexpensive drum drying of fruit and vegetable purees, less than$0.02/lb of water removed.

FREEZING

Bird cites freezing costs using liquid nitrogen at $0.05 to$0.10/lb of food to be frozen. Conventional freezing costs inblast freezers at the time of his report, were $0.0075 to$0.0015/lb of food frozen. Naturally these costs increase withinflation but, since frozen food packages are less expensive thancans or glass bottles, the relative cost of frozen foods may bedeclining.

OF 3CANADA

Clyde L. Rasmussen of the Product and Process Evaluation Staff,U.S.D.A. Western Regional Laboratory, Albany, California,reported in an unpublished paper presented February 1, 1967 tothe American Society of Heating, Refrigerating and AirConditioning Engineers Inc., Detroit, Michigan, the followingcosts for freezing vs. canning peas.

Canning and Freezing Costs -- Green Peas

Costs per 100 Pounds of Peas

Canning Freezing Difference

Raw Material $6.39 $6.64 $(0.25)

Processing Costs 3.37 3.06 0.31Labor, direct 1.10 0.86Variable overhead 0.42 0.32S Freezing & 1 month

storage -- 0.66Supt. & indirect

labor 0.32 0.15Factory burden 1.53 1.07

Materials 5.87 2.51 3.36Containers 5.57 2.51 3.06Direct supplies 0.03 -- 0.30

Cold Storage -- 0.71 (0.71)

Selling, Financial, etc. 2.62 1.96 0.66

TOTAL 18.25 14.78 3.47

Rasmussen gives many other process comparisons and a mimeographcopy of his paper is recommended reading to obtain more processcost comparisons.

.

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FRUIT/VEGETABLEPROCESSINGEXAMPLE 1Page 1 of 3

Representative Investment and Operating Costs

FRUIT PROCESSING

Establishment of a factory to manufacture fruit juice, jamsand marmalades; fruit segments/slices, fruit juice concentrate;and, tomato catsup.

COUNTRY: Kenya (Coastal Canners and Packers Ltd.)

NOTE: The data shown are intended as representative only and areunique to the time, circumstance, and country of theidentified investment. Their applicability to othersituations may vary considerably.

Annual Production at Full Development:

0 fruit juice 13.4 million 200 mi pouchesjams/marmalades 0.32 million 500 gram unitsfruit segments/slices 0.25 million unitsfruit concentrate 0.38 million 350 gram unitstomato ketchup 1.4 million 350 gram units

fruits to be used: mango, pineapple, lime, lemon, tangerine,tomato, grape, orange

Capacity Utilization at Full Development: not available

--------US$ '000 …(mid-1982 prices)

Local Foreign TotalI. Investment Costs:____________________Land (2 acres) 36.26 36.26Buildings 200.36 35.36 235.72

0


Representative Investment and Operating Costs---------------------------------------------


--------US$ 000-------(mid-1982 prices)

Local Foreign Total

Machineryfruit washing 120.45 120.45fruit extraction 99.37 99.37sugar preparation 102.18 102.18& juice treatmenttomato paste extraction 68.25 68.25packaging 363.28 363.28miscellaneous 137.97 137.97Sub-Total Machinery 891.51 891.51Installation Fees 176.25 176.25Pre-Operational Expenses 130.55 130.55Customs Duties, Insurance, Import Fe 359.02 359.02

Total Investment Costs 726.20 1103.12 1829.32_________________________

o_ .~~~--

- - - - - - - - - - - -




US$ '000(mid-1982 prices)

Total

II. Full Development Annual Operating Costs:--------------------------------------------

Variable Costsraw materials 1094.65packing materials 1119.49wages/salaries 135.99general 68.00utilities 21.76fuel 21.76

Sub-Total Variable Costs 2461.65

Fixed Costsinsurance 41.70management & overhead 68.00depreciation 144.15

Sub-Total Fixed Costs 253.85

Total Operating Costs 2715.50

DATA SOURCE: Adapted from Sub-Project A-7 project file, World

Notes:Exchange rate - Kenya Shillings 11.03 = US $ 1.00Foreign exchange component of operating costs not presented inappraisal report. Other foreign exchange costs are based onappraisal estimates.Management and overhead fixed costs include allowance formaintenance.Depreciation is calculated at 2.5% of civil works and 12.5% ofequipment.Data are net of contingencies.

* Full development is achieved in year 3 after project start-up.

f~~~~~~~~~~~~~~~~~~~~~~~ i I


Representative Investment and Operating Costs…--------------------------------------------

FRUIT, VEGETABLE AND FOREST PRODUCT PROCESSING FACILITY…------------------------------------------------------

Provision of a turn-key plant for processing fruits,vegetables, and forest (mushroom) products, and constructionof a cold storage facility.

COUNTRY: Yugoslavia

NOTE: These data are intended as indicative only and areunique to the time, circumstance, and country of theidentified investment. There applicability to othersituations may vary considerably.

Annual Production at Full Development:--------------------------------------

mushrooms 45 tons cold storage 1500 tonsdog rose berry 70 tons (apples,plums,blackberry 450 tons pears, etc.)black currant 350 tonssour cherry 550 tonsraspberry 300 tonsstrawberry 250 tons

Capacity Utililzatiion at Full Development: 100.00%

--------US$ '000-------(mid 1980 prices)

Local Foreign TotalI. Investment Costs:____________________Civil Works

roads/yards 96.16 38.79 134.95fence 17.11 6.90 24.01processing workshop 228.80 92.26 321.07cold storage 91.72 37.00 128.71fuel storage, doorkeeper house 17.82 7.19 25.01

Sub-Total Civil Works 451.62 182.14 633.75



NOTE: These data are intended as indicative only and areunique to tie time, circumstance, and country of theidentified investment. There applicability to othersituations may vary considerably.

--------US$ '000-------(mid 1980 prices)

Local Foreign Total

Utility Upgrade 143.76 104.50 248.26Machinery & Equipmentcooling equipment 71.33 51.85 123.18cutting machine 3.92 2.85 6.77dryer 18.46 13.42 31.87other 74.79 54.37 129.16Sub-Total Machinery & Equipment 168.50 122.49 290.99Import Duties 11.35 11.35Engineering, Design, Installation 97.06 8.36 105.43

Total Investment Costs 728.54 312.99 1041.52________________________

- - - - -- - - - - - - - - -- - - -



NOTE: These data are intended as indicative only and areunique to tie time, circumstance, and country of theidentified investment. There applicability to othersituations may vary considerably.

…---- US$ 000-------(mid 1980 prices)

Local Foreign Total

II. Annual Full Development Operating Costs:--------------------------------------------

Variable Costsraw materials 1300.50 195.08 1495.58packing materials 111.13 16.67 127.80utilities 25.57 3.84 29.40seasonal labor 14.30 2.15 16.45

Sub-Total Variable Costs 1451.50 217.73 1669.23

Fixed Costsoverheads 40.97 6.15 47.11permanent staff 56.82 8.52 65.34maintenance 20.17 3.03 23.19

Sub-Total Fixed Costs 117.95 17.69 135.64

Total Operating Costs 1569.45 235.42 1804.87

Data Source: All production and cost information shown adaptedfrom The World Bank, Appraisal of the MoravaRegional Development II Project, Project File,Vol. IV, Working Paper 9.4: Factory for Processingof Fruit,Vegetables, and Forest Products.

Notes:Project operating costs do not include charges such as socialcontribution to local defense fund, taxes, etc.Overhead and permanent staff costs have been adjusted to be net ofmarketing and advertising charges.Original appraisal costs were calculated using an exchange rate ofDinar 20 = US$ 1.00. Following appraisal the dinar was devaluedto Dinar 27 = US$ 1.00. All costs were adjusted in the appraisalto account for the effects of the devaluation. This analysis usesthese adjusted costs, and the new exchange rate.Full development is approximately year 5 after project start-up.Data are net of contingencies.

* FRUIT/VEGETABLEPROCESSINGEXAMPLE 3Page 1 of 2


BANANA PROCESSING

Establishment of a factory for manufacturing dehydrated chipsand granules from bananas.

COUNTRY: Philippines (Fruchtchips GMBH Philippine, Inc.)

NOTE: These data are intended as indicative only, and areunique to the time, circumstance, and country of theidentified investment. Their applicability to othersituations may vary considerably.

Annual Production at Full Development:

fruit flakes/granules 237,000 tons

Capacity Utilization at Full Development: 95.00%

…-----…US$ '00-0 …(October, 1983 Prices)Local Foreign Total

I. Investment Costs___________________Land 1,500 m2 40.91 40.91Building 1,224 m2 90.00 73.64 163.64

Machinerydryer, chipper, generator, etc. 153.05 153.05laboratory equipment 4.59 4.59steam/water pipes, machinery 43.64 47.27 90.91

foundations, etc.deep well 1.00 1.00 2.00booster pump 0.11 0.25 0.36water tanks 0.32 0.32 0.64exhaust fans 0.45 0.45 0.91

Sub-Total Machinery 45.52 206.94 252.46Freight and Insurance 2.84 14.50 17.34Installation Fees 2.55 7.64 10.18Pre-Operating Expenses 6.48 23.75 30.23

Total Investment Costs 188.29 326.46 514.75.

I~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ------------



NOTE: These data are intended as indicative only, and areunique to the time, circumstance, and country of theidentified investment. Their applicability to othersituations may vary considerably.

US$ '000(October, 1983 Prices)

Total

II. Annual Operating Costs at Full Development:-----------------------------------------------

Variable Costsraw materials 103.64electricity 2.64steam 7.91water 1.73packing 9.27other 1.09production labor 12.73Sub-Total Variable Costs 139.01

Fixed Costsdepreciation 45.27overheads & staff 10.91repair/maintenance 9.91insurance 7.91other 3.64Sub-Total Fixed Costs 77.64

Total Operating Costs 216.65

Notes:Exchange rates used - US$ 1.00 = Peso 11.00Overhead and staff costs have been adjusted to be net ofmarketing and advertising costs.Foreign exchange cost for locally procured imported equipmenthas been derived from Central Bank equipment procurement financingguidelines, costs of similar equipment directly imported,estimates of customs and other import duties.Operational costs do not include such items as municipal taxesand royalties.Data are net of contingencies.Foreign/Local cost breakdowns for operating costsare not presented in the appraisal report.Full development is approximately year 3 after project start-up.



PINEAPPLE PROCESSING____________________Establishment of a pineapple processing/canning factory, and acan manufacturing facility. Both components will be operatedjointly; all costs shown are therefore for both the processingand can production operations.

COUNTRY: Indonesia (P.T. Great Giant Pineapple)

NOTE: These data are intended as indicative, and are unique tothe time, circumstance, and country of the identifiedinvestment. There applicability to other situations mayvary considerably.


'000 standard cases million ounces

canned pineapples 1198.80 858.34natural juice 129.60 92.79juice concentrate 11.28 8.07


US $ '000(mid-1983 prices)

TotalI. Investment Costs:____________________Land Acquisition and Titling 0.10Land Development

fencing 7.70roads 10.00

Sub-Total Land Development 17.70





Total

Buildingscan factory 18,000 m2 117.00canning factory 2,430 m2 158.00raw material godown 270 m2 14.90finished goods godown 4,680 m2 304.20boiler room 180 m2 11.70generator room 180 m2 12.80water pool 200 m2 13.00workshop 180 m2 9.90fuel house 120 m2 7.80laboratory 180 m2 11.70machinery foundations 181.50

Sub-Total Buildings 842.50Imported Machinery & Equipmentcannery equipment 3127.70can making equipment 854.50juice pasteurization 40.50juice concentrate 875.60boiler 235.00deep water pump 18.00generator 328.70spare parts 200.00other 548.00

Sub-Total Imported Machinery 6228.00Shipping & Installation Fees 1003.10Pre-Operational/Start-Up Expenses 545.80

Total Investment Costs 8637.20





Total

II. Full Development Annual Operating Costs-------------------------------------------

Can Manufacturing (1.34 million units)Variable Costs

raw materials 3329.00fuel & lubricating oil 31.10production labor 26.80

* Sub-Total 3386.90

Fixed Costsmaintenance/spare parts 62.40insurance 41.10depreciation 128.51overhead staff 35.60administration 5.50

Sub-Total 273.11

Total Can Manufacturing 3660.01





TotalII. Full Development Annual Operating Costs(excluding raw materials)

-------------------------------------------

Pineapple Processing & CanningVariable Costs

sugar 647.40packing materials 876.00fuel + oil 273.10production labor 72.60Sub-Total Variable Costs 1869.10

Fixed Costsmaintenance/spare parts 361.40depreciation 861.71insurance 175.40overhead staff 182.80administration 43.30Sub-Total Fixed Costs 1624.61

Total Pineapple 3493.71Processing & Canning -------

Notes:a. Exchange rate Rupiah to US $: Rp 1,000 = US$ 1.00b. Foreign exchange components of project costs not available.c. Annual fixed cost charges calculated as follows:

Depreciation rates at 6.5% for buildings and 10% for machineryMaintenance/spare parts at 2.5% for buildings and 5% formachinery.Insurance at 6.2% for buildings and 3.5% for machineryd. Full development is approximately year 6 after project start-up.e. Overhead staff and administration costs are net of marketingcosts.

f. Data are net of contingencies.



FRUIT/VEGETABLE PROCESSING__________________________

Establishment of a plant for processing dehydrated fruitsand vegetables.

COUNTRY: Yugoslavia (AIK Leskovac)

NOTE: These data are intended as indicative only, and areunique to the time, country, and circumstance of theidentified investment. Their applicability to othersituations may vary considerably.

Annual Production at Full Development (in tons):------------------------------------------------

paprika chips/cubes 300.00potato products 200.00onion products 300.00celery products 90.00parsley products 80.00carrot cubes 230.00dried fruits 890.00 -


--------US$ '000-------(mid 1980 prices)

Local Foreign TotalI. Investment Costs:

Civil Worksroads and yards 3,907 m2 101.74 48.26 149.99plant buildings 2,340 m2 448.93 212.94 661.87auxillary buildings 266 m2 83.84 39.77 123.61boiler room 400 m2 153.48 72.80 226.28coal storage 450 m2 61.67 29.25 90.92weigh bridge 15.07 7.15 22.22

Sub-Total Civil Works 864.73 410.16 1274.89




--------US$ 000-------(mid 1980 prices)

Local Foreign Total

Utilities Upgradewater/sewage 103.05 48.88 151.93electricity 119.96 56.90 176.86steam 569.64 270.19 839.83Sub-Total Utilities Upgrade 792.65 375.97 1168.62Machinery & Equipmentvegetable preparation line 75.15 158.69 233.85onion preparation line 53.85 113.70 167.55paprika preparation line 44.52 94.00 138.52fruit preparation line 43.75 92.38 136.14dryers/conveyors 124.09 262.03 386.12packaging lines 48.78 103.00 151.78blancher 22.69 47.92 70.61fork lifts 26.95 56.91 83.87other 12.28 25.93 38.20shipping, insurance, installation 31.94 67.44 99.37Sub-Total Machinery & Equipment 484.00 1021.99 1506.00Import Duties 160.85 160.85Other Customs Duties 178.78 178.78Engineering and Overheads 97.12 23.14 120.26

Total Investment Costs 2578.14 1831.27 4409.40_________________________

_ . - - - - - - - - - - - -




…U------US$ '000 …(mid 1980 prices)

Local Foreign Total

II. Annual Operating Costs at Full Development:-----------------------------------------------

Variable Costsraw materials 1879.22 1879.22packaging materials 91.01 21.68 112.70utilities 176.20 41.98 218.18production labor 233.89 233.89

Sub-Total Variable Costs 2380.33 63.66 2443.99

Fixed Costsadministration & management 51.81 51.81maintenance

buildings 15.84 7.51 23.36equipment 21.32 45.02 66.34

insurance 8.59 8.59common consumption 74.56 74.56

Sub-Total Fixed Costs 172.12 52.53 224.66

Total Operating Costs 2552.45 116.19 2668.64

NOTES:

Administration and Management costs are net of marketing expenses.

Full development is year 4 after project start-up.

Foreign exchange costs are calculated at appraisal estimates.

original appraisal costs were calculated using an exchangerate of Dinar 20 = US$ 1.00. Following appraisal the dinar wasdeveluated to Dinar 27 = US$ 1.00. All costs were adjusted in theappraisal report to account for the effect of the devaluation.These revised costs have been used for this analysis, and all* costs have been converted to US $ using the new exchange rate.

Data are net of contingencies.

* FRUIT/VEGETABLEPROCESSINGEXAMPLE 6PAGE 1 OF 3


TOMATO PROCESSING_________________

Establishment of a processing facility to make tomato paste of26-28% concentration for use in production of ketchup andcanned fish.

COUNTRY: Thailand (Thai Agriculture Promote Industries Co., Ltd.)



tomato paste (26-28% concentration) 1,600 tons

Capacity Utilization at Full Development: not available

US$ '000(mid-1982 Prices)

TotalI. Investment Costs:____________________Land 34.71Buildings

factory 2,400 m2 187.42storage 150 m2 8.20water tower/ponds 12.75guard house 1.78road and gate 4.08deep well and piping 7.55

Sub-Total Buildings 221.78

0

FRUIT/VEGETABLEPROCESSINGEXAMPLE 6PAGE 2 OF 3




Total

Machinery & EquipmentReconditioned 139.41New Import

can seamer 0.00pasteurizer 0.00closing machine 0.00piston filler 0.00import duty, insurance, freight 0.00Sub-Total Imported 0.00Local Procurement - New Equipmentwashing tub & conveyor 9.33crusher & extractor 5.51vacuum evaporator & tomato paste 61.26heating tank

wiring & piping 50.98other 60.43transport and installation 10.85Sub-Total Local Procurement -New Equipment 198.36Sub-Total Machinery & Equipment 337.77Start-Up Costs 34.71

Total Investment Costs 628.97

FRUIT/VEGETABLEPROCESSING

a EXAMPLE 6PAGE 3 OF 3




Total

II. Annual Operating Costs at Full Development:

Variable Costsraw material 641.13production labor 55.62electricity & fuel 58.61packaging & material costs 143.73other 23.25

Sub-Total Variable Costs 922.34

Fixed Costsoverheads & staff 16.70repairs/maintenancebuildings 3.21machines & equipment 15.05

insurance 1.87depreciationbuildings 13.45machinery & equipment 44.64

other 1.69Sub-Total Fixed Costs 96.61

Total Operating Costs 1018.95.

Notes:Exchange rate used - Baht 23.05 = US$ 1.00Costs of reconditioned equipment are calculated in theappraisalreport at purchase price less accumulated depreciation.For the analysis depreciation charges have been added back intothe cost of reconditioned equipment bringing the cost of thisequuipment in line with equivalent market prices.Buildings do not include such items as offices, dormitories, andcafeterias.Detailed foreign/local cost breakdowns are not available.Full development is approximately year 3 after project start-up.

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ANNEX II:

CONVERSION TABLES

0

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0

WEIGHTS AND MEASURES

avoirdupoisTon: short ton 20 short hundredweight, 2000 pounds;

0.907 metric tons;

long ton 20 long hundredweight, 2240 pounds;1.016 metric tons.

Hundredweight cwt;short hundredweight 100 pounds, 0.05 short tons; 45.359

kilograms;long hundred weight 112 pounds, 0.05 long tons; 50.802

kilograms.

Pound lb or lb av; also #;16 ounces, 7000 grains; 0.453 kilograms.

Ounce oz or oz av;16 drams, 437.5 grains; 28.349 grams.

Dram dr or dr av;27.343 grains, 0.0625 ounces; 1.771 grams.

* Grain gr;0.036 drams, 0.002285 ounces; 0.0648 grams.

Trov

Pound lb t;12 ounces, 240 pennyweight, 5760 grains; 0.373kilograms.

Ounce oz t;20 pennyweight, 480 grains; 31.103 grams.

Pennyweight dwt also pwt;24 grains, 0.05 ounces; 1.555 grams.

Grain gr;0.042 pennyweight, 0.002083 ounces; 0.0648 grams.

*

METRIC SYSTEM

Square kilometer sq km or km1,000,000 square meters;0.3861 square mile.

Hectare ha;10,000 square meters;2.47 acres.

Hectoliter hl;100 liters; 3.53 cubic feet; 2.84 bushels;

Liter 1;1 liter; 61.02 cubic inches; 0.908 quart(dry); 1.057 quarts (liquid).

Deciliter dl;0.10 liters; 6.1 cubic inchs; 0.18 pint(dry); 0.21 pint (liquid).

Centiliter cl;0.01 liters; 0.6 cubic inch; 0.338fluidounce.

Metric ton MT or t;1,000,000 grams; 1.1 US tons.

Quintal q;100,000 grams; 220.46 US pounds.

Kilogram kg;1,000 grams; 2.2046 US pounds.

Gram g or gm;1 gram; 0.035 ounce.

0'- .

I .

ANNEX III:

CONVERSION FACTORS FOR FRUITS AND VEGETABLES

.

0

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Annex III

Table 1: Fruit Juices and Concentrates: Factors Relatingto Farm and Processed Weights.

Source: USDA (1979).

Approximate Equivalent : Gallons per Net weightItem and specification Approximate farm weight unit of per gallht

brix _ per gallon : farm weight per gallon

Degrees Pounds Box 2/ Ton Pounds

Apple:Single strength 13 12 -- 170 8.8

Frozen 3 to 1 concentrate 45 47 -- 43 10.0

Cirtus fruits: 3/Orange

Single strength juice 12 16 5.5 122 8.7Frozen concentrate 45 69 1.3 29 10.0

GrapefruitSingle strength juice 10 18 4.7 110 8.7

Frozen concentrate 40 83 1.0 24 9.8Lemon

Single strength juice 4/ 26 2.9 76 --

Nonfrozen concentrate 4/ 112 .7 17.9 --

Concentrate for lemon-ade * 4/ 18 4.2 110 --

Grape:Single strength 16 11 -- 175 8.9Frozen concentrate 50 40 -- 50 10.3

Pineapple:Single strength 14 15 -- 133 8.84 to 1 concentrate 61 75 -- 27 10.83 to 1 concentrate 50 60 -- 33 10.3

Prune (from fresh prunes):Single strength 31 13 -- 155 9.41 1/2 to 1 concentrate 73 32 -- 62 11.4

-- = Nbt available.1/ For additional information on concentration of fruit juices, see Calculations of

Volume and Weight Reduction in the Concentration of Fruit Juices, ARS 74-7,

Agr. Res. Serv., U.S. Dept. Agr., June 1956.2/ Oranges, 90 pounds; grapefruit, 85 pounds; lemons, 76 pounds.3/ Orange and grapefruit products based on Florida yields; lemons on California.

4/ Lemon product yields are based on a standard ton containing 36.5 pounds of

anhydrous citric acid.

Annex III

Table 2: Canned Fruits: Factors Relating to Farm andProcessed Weights. Source: USDA (1979).

: Pounds farm weight *a Pounds Case conned ocr Cases of Net weightComodity : c' canned : ton far- veiht .,/ : 24/2-1/2'5: per caseFrom pounds : c : from pounds 24/2-1/2's 4/303's 6/10's om pounds: 24/: canned : No. 24 3-1/2: farm eight : : canned : 2-1/2's: …---------------- Pound - ---------- C-ase ---------- …- oundsCitrus fruit: :Citrus .alad 2.096 91.32 0.477 21.9 38.8 23.8 0.02299 43.5Grapefruit sections : 2.020 87.72 .495 22.8 40.3 24.8 .02299 43.5Orange sections 2.222 96.62 .450 20.7 36.6 22.5 .02299 43.5

Other fruit:Apples 1.859 72.46 .538 27.6 49.6 30.0 .02564 39.0Applesauce : 1.250 53.90 .800 37.1 65.6 40.5 .02299 43.5Apricots .694 31.25 1.440 64.0 113.3 69.9 .02222 45.0Berries:

Blackberries : .646 28.09 1.549 71.2 125.0 77.5 .02299 43.5Blueberries .836 36.36 1.196 55.0 97.4 60.1 .02299 43.5Boysenberries : .694 29.24 1.440 68.4 120.0 74.4 .02299 43.5Gooseberries : .595 25.06 1.680 79.8 140.0 86.8 .02299 43.5Loganberries : .654 29.24 1.530 68.4 120.0 74.4 .02299 43.5Raspberries .641 26.99 1.560 74.1 130.0 80.6 .02299 43.5Strawberries : .725 30.49 1.380 65.6 115.0 71.3 .02299 43.5Cherries:Red tart-pitted 1.055 45.87 .948 43.6 76.8 47.4 .02299 43.5S.eet-pitted 1.022 44.44 .979 45.0 79.6 49.0 .02299 43.5Sweee-.npitted : .707 30.77 1.414 65.0 115.0 70.8 .02299 43.5Cranberries : .388 16.31 2.580 122.6 2/ 215.0 133.3 .02083 48.0Figs .654 29.41 1.530 68.3) 120.4 74.1 .02222 45.0Fruit cocktail : .889 40.00 1.125 50.0 88.5 54.5 .02222 45.0Fruits for salad : .889 40.00 1.125 50.00 88.5 54.5 .02222 45.0Olives 3/ : .945 25.51 1.058 78.4 138.6 85.4 .03704 27.0Peaches:

Clingstone : .836 36.36 1.196 55.0 97.4 60.1 .02299 43.5Freescose : 1.022 44.44 .979 45.0 79.6 49.0 .02299 43.5Pears : 1.000 43.48 1. 00') 46.0 81.4 50.1 .02299 43.5Pineapple : 1.709 76.92 .585 26.0 46.0 28.3 .02222 45.0Plms. fresh .663 29.85 1.508 67.0 118.6 73.0 .02222 45.0

Table 3: Canned Vegetables: Factors Relating to Farm andProcessed Weights. Source: USDA (1979).Pounds farm weight * Pounds Cases canned perComand4ty ______________: canoed : ton farm weight 1/ Canes 24/303's Met weightFrom pounds :Fro. case No.: from pound: 24/303's :24 2-1/2's 6/10' f pd 24/er 'scanned :24/303's : farmn ,eight: : : : canned 24/303's---------------- Pounds ------------ ---------------------- Cases ---------------- Pounds

Asparagus : 1.220 28.57 0.819 70 39.5 43.2 0.0427 23.4Lisa beans 2/ : .625 15.38 1.599 130 73.4 80.2 .0407 24.6Snap beans : .712 16.67 1.404 120 67.8 74.1 .0427 23.4Bees : 1.290 31.75 .755 63 35.6 38.9 .0407 24.6Carrots : 1.333 32.79 .750 61 34.5 37.7 .0407 24.6Corn:Cream style : 2.033 50.00 .492 40 22.6 24.7 .0407 24.6Whole grain : 2.538 62.50 .394 32 18.1 19.8 .0407 24.6Mushrooms : 1.403 34.48 .713 58 32.8 35.3 .0407 24.6Okra : 1.030 24.10 .971 83 46.9 51.2 .0427 23.4Peas 2/ : .739 18.18 1.353 110 62.1 67.9 .0407 24.6Pimentos : 2.410 57.14 .415 35 19.8 21.6 .0422 23.7Potatoes, white : 1.572 37.74 .636 53 29.9 28.7 .0417 24.0Pumpkin and squash : 2.710 66.67 .369 30 16.9 18.5 .0407 24.6Sauerkraut : 1.859 43.48 .538 46 26.0 28.4 .0427 23.4Spinach : .901 20.00 1.110 100 56.5 61.7 .0450 22.2S-eetpoatoes : 1.292 30.77 .784 65 36.7 40.1 .0420 23.8Tomatoes : 1.553 36.36 .644 55 31.1 34.0 .0427 23.4Tomato catsup 3/ : 2.457 66.67 .407 30 17.1 18.6 .0369 27.1Tomato juice : 1.527 36.36 .655 55 31.1 34.0 .0420 23.8Tomato paste 3/ : 5.432 142.86 .184 14 8.0 8.7 .0380 26.3

Tomto purse 4/ : 3.247 80.00 .308 25 14.2 15.5 .0407 24.6Pickles : .744 17.86 1.344 112 63.8 69.4 .0416 30.01/ BaSic figure is yield of 24/'03's per con. One case 24/303's is equivalent to 0.57 cases 24/2 1/2's and 0.62 canes 6/il's.2/ Shelled bais.3/ 33 percent solids.4/ 11 percent solids.

Note: Relationships between farm and processed weights for mst comnodtties varv widelv from season to season .nd bht-oenlocalities. Factors shown in this table represent average relationships for a11 producing areas.

0Annex III

Table 4: Dehydrated and Dried Fruits: Relationship BetweenFarm and Processed Weights. Source: USDA (1979).

Factors for converting to--Farm weight from Farm weight from Packed processed weight

d natural condition packed processed from natural conditionweight : weight weight

Apples 8.00 8.00 1.00Apricots : 6.00 5.56 1.08Dates: 1/

Whole : 1.00 1.00 1.00Pitted : NA 1.14 .875

Figs : 3.00 2.94 1.02Peaches:

Cling : 7.50 6.94 1.08Freestone:

Elberta 7.00 6.48 1.08Other 6.00 5.55 1.08

Pears : 6.50 6.31 1.03Prunes: 2/

California : 2.90 2.60 1.04Pacific Northwest : 3.14 3.05 1.03

Raisins:Thompson, sultana 3/: 4.30 4.62 .93Golden seedless : 4.30 4.53 .95Muscat, seeded 4.00 5.00 .80

NA - Not available.1/ Includes only farm sales of dates for human consumption after farm cullage.

Average farm sales of cull dates directly into nonfood channels estimated at 14percent of U.S. production.

2/ To convert canned dried prunes to dried prunes, multiply by 0.691085.3/ Includes unseeded muscats.

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Annex III

Table 5: Vegetables, Dehydrated: Relationship Between Farmand Processed Weights and Weight of Product per5-Gallon Container. Source: USDA (1979).

Moisture content Average losses : Factors for converting : Weight of:____________________ :from sizing, trimming, to-- 2/ productCommodity Average : Dehydr- : peeling, blanching, Processed : Equivalent : perfor raw : ated sorting, and other : weight from farm weight : 5-gallonmaterial product 1/ farm weight : from processed : container-------------------- Percent ---------------- Product Pounds

Asparagus : 92 4 55 0.0037 27 Dice 8Powder 17Beans, green 89 4 30 .080 12.5 1/2 inchcut 7Beets without tops 87 4 10 .122 8.2 Powder 30Cabbage : 92 4 30 .048 21 Dice 9

Powder 30Carrots . 86 4 35 .095 10.5 Dice 10-20Powder 35Celery:

Stalk and leafflakes : 93 35 10 .065 15.4 Flakes 3-6Stalk slice : 94 3.5 25 .047 21.2 Slice 6Garlic . 71 5 15 .260 4 Sliced 15

Powder 30

Greens : 92 4 20-50 .040-.067 15-25 Flakes 8Powder 18

Onion : 88 4 11 .110 9 Flakes 10-15Powder 25

Parsley 89 4 15 .097 10.3 Flakes 4Powder 20Peas, green : 78 4 10 .200 5 Powder 18Peppers:

Green bell : 93 3.5 40 .049 20.4 Dice 8Powder 20Red bell : 90 5.5 38 .064 15.6 Dice 10Powder 25

Potatoes:Dice : 80 6 40 0.125 8.0 -- 17Granules : 78 6 33 .14-.17 5.9-7.1 -- 36Flakes : 80 4.5 33 .14-.17 5.9-7.1 __ 10Turnips 91 5 33 .063 16 Dice 14

Powder 25

Sweet potato flakes : 69 3 23.5 .143 7

Onions, green tops 90 4 20 .083 12.0 Flakes 6Minced 8

Tomato flakes : 93 4 20 .058 17.0 Flakes 12Horseradish : 70 5 20 .025 4.0 Powder 20Leek : 88 4 27 .091 11.0 Powder 22Okra : 90 5 13 .091 11.0 Powder 22Pimento : 89 4 65 .040 25.0 Powder 25Pumpkin : 91 5 13 .083 12.0 Powder 25Spinach : 90 4 10 .094 10.6 Powder 18

-- - Not applicable.1/ Includes fines and defects removed during final inspection of dried product and other process losses.2/ Successful dehydration of many of these vegetables depends upon the ability to divert undesirable sizes and/orgrades to other kinds of processing. If such outlets are not available, shrinkage ratios will be greater than

shown.

0Annex III

Table 6: Frozen Fruits and Vegetables: Estimated AverageRelationship Between Farm and Processed Weights.Source: USDA (1979).

'U

Factors for converting to-- Approximate*Percentage fruit-to-

Commodity recovery * Farm weight Frozen weight sugar ratiofrom from farm 2 ugrrai

frozen weight 1! : weight 1/ : c/

: Percent

Frozen fruits:Apples : 60 1.67 0.60 0 or 7 to 1Apricots : 78 1.10 .91 6 or 8 to 1Berries:Blackberries : 95 1.05 .95 0Blueberries : 97 1.03 .97 0Boysenberries : 88 1.14 .88 0Gooseberries : 97 1.03 .97 0Loganberries : 88 1.14 .88 0Raspberries : 95 1.05 .95 00 Strawberries : 93 .89 1.12 5 or 4 to 1

Cherries, sour : 75 1.11 .90 5 to 1Cherries, sweet : 85 1.18 .85 0Grapes : 85 1.18 .85 0Peaches : 67 I.-25 .80 5 to 1Pineapples : 50 1.60 .625 4 to 1Prunes . 85 1.18 .85 0

Frozen vegetables:Asparagus : 52 1.92 .52 2/Lima beans 3/ : 95 1.05 .95 2/Snap beans : 85 1.18 .85 2/Broccoli : 75 1.33 .75 2/Brussels sprouts : 75 1.33 .75 _/Cauliflower : 70 1.43 .70 2/Corn, cut 27 3.70 .27 2/Carrots 55 1.82 .55 _/Okra . 85 1.18 .85 2/Peas, green 3/ : 92 1.09 .92 2/Peas, southern : 50 2.00 .50 2/Potatoes, white : 40 2.50 .40 2/Peppers, sweet : 70 1.43 .70 _/Spinach : 70 1.43 .70 2/Other greens : 75 1.33 .75 2/Squash : 55 1.82 .55 2/Sweetpotatoes : 50 2.00 .50 2/

1/ Frozen weight is weight of frozen fruit plus sugar content. Where more than onefruit-to-sugar ratio is shown, the first is used in this computation.

2/ Fruit-to-sugar ratio does not apply to vegetables.3/ Shelled.

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