The food industry is a complex, global collective of diverse businesses that supplies most of the food consumed by the world population. Only subsistence farmers, those who survive on what they grow, and hunter-gatherers can be considered outside the scope of the modern food industry.
The food Industry includes:
Agriculture: raising of crops and livestock, and seafood
Manufacturing: agrichemicals, agricultural construction, farm machinery and supplies, seed, etc.
Food processing: preparation of fresh products for market, and manufacture of prepared food products
Marketing: promotion of generic products (e.g., milk board), new products, advertising, marketing campaigns, packaging, public relations, etc.
Wholesale and food distribution: logistics, transportation, warehousing
Foodservice (which includes catering)
Grocery, farmers' markets, public markets and other retailing
Regulation: local, regional, national, and international rules and regulations for food production and sale, including food quality, food security, food safety, marketing/advertising, and industry lobbying activities
Education: academic, consultancy, vocational
Research and development: food technology
Financial services: credit, insurance
Definitions
It is challenging to find an inclusive way to cover all aspects of food production and sale. The UK Food Standards Agency describes it thus:
"...the whole food industry – from farming and food production, packaging and distribution, to retail and catering."
The Economic Research Service of the USDA uses the term food system to describe the same thing:
"The U.S. food system is a complex network of farmers and the industries that link to them. Those links include makers of farm equipment and chemicals as well as firms that provide services to agribusinesses, such as providers of transportation and financial services. The system also includes the food marketing industries that link farms to consumers, and which include food and fiber processors, wholesalers, retailers, and foodservice establishments."
The term food industries covers a series of industrial activities directed at the processing, conversion, preparation, preservation and packaging of foodstuffs. The food industry today has become highly diversified, with manufacturing ranging from small, traditional, family-run activities that are highly labor intensive, to large, capital-intensive and highly mechanized industrial processes. Many food industries depend almost entirely on local agriculture or fishing.
Agriculture and agronomy
Agriculture is the process of producing food, feeding products, fiber and other desired products by the cultivation of certain plants and the raising of domesticated animals (livestock). The practice of agriculture is also known as "farming". Scientists, inventors, and others devoted to improving farming methods and implements are also said to be engaged in agriculture. 1 in 3 people worldwide are employed in agriculture, yet it only contributes 3% to global GDP.
Agronomy is the science and technology of producing and using plants for food, fuel, fibre, and land reclamation. Agronomy encompasses work in the areas of plant genetics, plant physiology, meteorology, and soil science. Agronomy is the application of a combination of sciences. Agronomists today are involved with many issues including producing food, creating healthier food, managing environmental impact of agriculture, and extracting energy from plants.
Food processing
Food processing includes the methods and techniques used to transform raw ingredients into food for human consumption. Food processing takes clean, harvested or slaughtered and butchered components and uses them to produce marketable food products. There are several different ways in which food can be produced.
One-off production: This method is used when customers make an order for something to be made to their own specifications, for example a wedding cake. The making of one-off products could take days depending on how intricate the design is.
Batch production: This method is used when the size of the market for a product is not clear, and where there is a range within a product line. A certain number of the same goods will be produced to make up a batch or run, for example a bakery may bake a limited number of cupcakes. This method involves estimating consumer demand.
Mass production: This method is used when there is a mass market for a large number of identical products, for example chocolate bars, ready meals and canned food. The product passes from one stage of production to another along a production line.
Just-in-time (JIT) (production): This method of production is mainly used in restaurants. All components of the product are available in-house and the customer chooses what they want in the product. It is then prepared in a kitchen, or in front of the buyer as in sandwich delicatessens, pizzerias, and sushi bars.
Industry influence
The food industry has a large influence on consumerism. Organizations, such as The American Academy of Family Physicians (AAFP), have been criticized for accepting monetary donations from companies within the food industry, such as Coca-Cola.[7] These donations have been criticized for creating a conflict of interest and favoring an interest such as financial gains.[7]
Regulation
Since World War II, agriculture in the United States and the entire national food system in its entirety has been characterized by models that focus on monetary profitability at the expense of social and environmental integrity.[8] Regulations exist to protect consumers and somewhat balance this economic orientation with public interests for food quality, food security, food safety, animal well-being, environmental protection and health.[9]
Wholesale and distribution
A vast global cargo network connects the numerous parts of the industry. These include suppliers, manufacturers, warehousers, retailers and the end consumers. Wholesale markets for fresh food products have tended to decline in importance in urbanizing countries, including Latin America and some Asian countries as a result of the growth of supermarkets, which procure directly from farmers or through preferred suppliers, rather than going through markets.
The constant and uninterrupted flow of product from distribution centers to store locations is a critical link in food industry operations. Distribution centers run more efficiently, throughput can be increased, costs can be lowered, and manpower better utilized if the proper steps are taken when setting up a material handling system in a warehouse.
Marketing
Main articles: Food marketing and Agricultural marketing
As consumers grow increasingly removed from food production, the role of product creation, advertising, and publicity become the primary vehicles for information about food. With processed food as the dominant category, marketers have almost infinite possibilities in product creation. Of the food advertised to children on television 73% is fast or convenience foods.
By country
Food industry in Bangladesh
Ministry of Agriculture and Food Industry (Moldova)
Department of Agriculture, Food and the Marine (Ireland)