The Future of the World Food Supply Chain in India

Topics: Food, Food processing, Food industry Pages: 16 (5609 words) Published: October 12, 2008
Heritage Foods:
The Future of the World Food Supply Chain in India

India can become the food supplier of the world. It has the cultivable land, all the seasons for production of all varieties of fruits and vegetables, an agribusiness system that works although it needs to be vastly improved. The single most important problem facing the Indian agricultural industry is the highly inefficient supply chain. Because of lack of cold chain infrastructure and also a food processing industry about 20 percent of all foods produced in India are wasted. Investments in cold chain infrastructure, applied research in post harvest technologies, installation of food processing plants in various sectors and development of food retailing sector are mandatory for achieving gains in this sector. Heritage Foods in India that focuses on the Dairy market is challenged with achieving both national and global competitiveness of the food industry. The supply chain sector is very weak with no process owner and this can spell disaster without the properly enforced logistics of the supply chain.

In particular, I will identify the corporate citizenship (responsibility) with the various difficulties and complexities Heritage Foods faces as they seek to balance both company performance and good corporate citizenship. While explaining how Heritage Foods comes to symbolize both the benefits and risks inherent in globalization located in India. I will also discuss the current state of the agricultural industry in India and present the state of food processing industry along with the supply chain system and its various constituents. It’s important to identify emerging opportunities in the food and cold chain sector with the dairy market and present ways in which existing Heritage Foods challenges can be overcome using technology and experience. Which leads to, some opportunities for improvement in real estate and cold chain infrastructure, establishing food processing plants, wholesale, retail, third party logistics and technology. Current State of India Agricultural Industry

In India, 52% of total land is cultivable as against 11% in the world. India is one of the worlds major food producers but accounts for less than 1.5 per cent of international food trade. This indicates vast scope for both investors and exporters. Food exports in 1998 stood at US $5.8 billion whereas the world total was US $438 billion. The Indian food industries sales turnover is Rs 140,000 crore (1 crore = 10 million) annually as at the start of year 2000. The industry has the highest number of plants approved by the US Food and Drug Administration (FDA) outside the USA. All 15 major climates of the world, snow bound Himalayas to hot humid southern peninsula; Thar Desert to heavy rain areas all exist in India. There are 20 agro-climatic regions and nearly 46 out of 60 soil types in the country. Sunshine hours and day length are ideally suited for round the year cultivation of crops. India is the centre for biodiversity in plants, animals, insects, micro-organism and accounts for 17% animal, 12% plants and 10% fish genetic resources of the globe. In the live stock sector, India has 16% of cattle, 57% of buffalo, 17% of goats and 5 % of sheep population of the world. Agriculture contributes 24.2% to GDP, 15.2% of total exports and provides employment to 58.4% of country’s work force . As mentioned in the India Brand Equity Foundation India is the following: •India is the 2nd largest vegetable and 3rd largest fruit producer in the world •India will register the highest increase in rice production in the world over the next 10 years, as per the US Department of Agriculture. India's annual rice production would increase by 16.3 million tonnes (mt) by 2016, from 91 mt now. •India ranks second only to Japan in inland sector fish...

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