Food ProcessingAG BM 102
Introduction
• Adds value to farm production
• Creates products consumers want
• Employs lots of people ~ 90,000 in PA
An Overview
• Products
• Location
• Competition
• Issues
Meat
• Large Animal slaughter – a few plants
• Processed meats – lots of plants
• Poultry – several big plants
• A lot of consolidation going on – mergers across species – Tyson bought IBP
Seltzer’s Lebanon Bologna
Dairy
• Milk
• Cheese
• Ice cream
• Butter powder
Ritchey’s Dairy Ice Cream
Land O’Lakes Butter/Powder Milk Plant
Fruits & Vegetables
• Canned (Furman’s)
• Dried
• Pickles, sauces etc. (Heinz)
• Frozen (Hanover)
Grain
• Flour
• Cereal
• Pet Food
• Animal feed
Brown’s Flour Mill
Flour Trailer on Scale
Bakery
• Bread
• Cookies & crackers
Candy
• Chocolate
• Other candy
• Gum
• PA largest candy producing state – Hershey and many more firms
Fats and Oils
• Animal
• Vegetable
• Very little in PA
Beverages
• Beer
• Wine
• Soft Drinks
• About half the jobs beer and half soft drinks – a little wine
• Produce near consumer
Other Food
• Coffee
• Ice
• Fish
• Pasta
• Pretzels & snack foods (PA biggest in this)
• Other stuff– Fastest growing category – new products
Primary Reason for Plant Location in Pennsylvania
Consumer34%
Other34%
Both6%
Farm26%
Traditional Issues
• Efficiency
• Competitiveness
• Demand
• New products
• New Technology
Newer Issues
• Farm inputs
• Labor
• Water
• Solid waste
• Waste water
• Food safety
How many Food Companies will we have?
• Market growing slowly
• Lots of mergers – a long-term trend
• Is Hershey too small to be independent?
• Heinz?
• Campbell’s?
• Food conglomerates common
Concluding Comments
• Key provider of consumer satisfaction
• Big recipient of food dollars
• Important to PA
• Big employer of PSU grads
• Works closely with suppliers & customers to do their job better