Food Processing in Agricultural Regions.
Is it a path to prosperity?
Table of Contentss
Table of Contentss
Chapter 1 Introduction
Chapter 2 Background
UK Agricultural Industry
UK Food Processing Industry
Chapter 3 Literature Review
Chapter 4 Research Methodology
Choice of research attack
Selected countries instance survey
Chapter 5 Findingss, Analysis and Discussion
Decision and Recommendations
Chapter 1 Introduction
Agricultural parts in any state, including the United Kingdom, have historically been seen as poorer neighbors to the more industrialized countries of any peculiar state ( Pierpoint 1997 ) . This place has been brought approximately chiefly as a consequence of the fact that wage, employment chance and economic end product tends to be lower than other countries of industry. The logistical job in footings of conveyance and flexibleness of work force is besides a conducive factor. Consequently, many agricultural parts have seen a important diminution in lucks and employment during the class of the past three decennaries.
In an attempt to these jobs, authoritiess at local, national and regional degrees have been seeking to bring forth a scope of schemes that will back up and renew agricultural, the consequences of which have met with assorted degrees of success. Irrespective of the aid afforded to them, many agricultural countries still remain comparatively weak. Where betterments are achieved, frequently it is at the disbursal of the agricultural industry itself. For illustration, publicity of cultural touristry, whilst it may profit some agricultural communities, does non turn to the nucleus issues, viz. bettering the autochthonal industry and nutrient production concatenation.
However, recent surveies carried out have suggested that there may be another manner to near the issue. This research, as reported by Peter Pierpoint ( 1997 ) , suggests that if the development of nutrient processing is encouraged within an agricultural country, it can ensue in an increased degree of prosperity, bring forthing subsequent betterments in employment, economic end product and the GDP per caput ( Pierpoint 1997 ) .
Purposes and Aims
The purpose of this paper is to measure the hypothesis set by Peter Pierpoint ( 1997 ) and to determine if the development of nutrient processing in agricultural countries can supply a path to prosperity. To help with the analysis for this intent the UK agricultural parts of Cornwall and Wales will be used as instance surveies, with other agricultural parts within the UK and Europe being used for comparative intents.
Concentrating on the UK in peculiar, to enable the ends of this research to be achieved it is intended to concentrate the paper upon the undermentioned aims: –
- Supply an analysis of the historical development of the agricultural industry, paying peculiar attending to this sector within the United Kingdom.
- To supply a elaborate analysis of the two selected agricultural countries, which will include the past and present economic and employment places.
- Analyse and measure the impact that the development of nutrient processing has upon selected agricultural parts.
- Measure the synergism that is said to be between the agricultural and nutrient processing industries.
Overview of the research
Following this debut, chapter two provides a brief background of the development of both the agricultural and nutrient processing industries. This is followed by a critical literary reappraisal within chapter three. Chapter four provides inside informations of the methods used for the research required for this paper, with the findings from resulted from the research are analysed and discussed in full in chapter five. The decision of this survey, together with any recommendations that are considered appropriate, are outlined in chapter six.
Chapter 2 Background
Following the progresss in engineering over the class of the past three decennaries, there have been important alterations witnessed both within the agricultural and nutrient processing, as they exist in the UK.
UK Agricultural Industry
Following WWII, the concentration upon the economic value of British agribusiness came a hapless last topographic point to other industries as the UK sought to reconstruct its economic place. Thus agribusiness was fundamentally left to fend for itself as it sought to vie with an increasing degree of nutrient merchandises being imported from abroad markets ( Greer 2005, p.86 ) .
In line with the general industry tendencies, in both of the selected countries there has been a diminution in the agribusiness economic system during the class of the past three decennaries, despite the fact that the rural countries have historically relied upon this industry to keep their local communities. In the UK the rural agriculture diminution has been exacerbated by the concentration of farming methods undertaken by big corporations together with the increasing degrees of imported green goods, which can be purchased at monetary values that the UK husbandmans can non vie. Similarly, the force per unit area from retail merchants for lower pricing has reduced the fight of the local farms. Evidence of these events can be seen from the undermentioned ( figure 1 ) .
This tabular array shows how, during the past decennary the agricultural industry part to the UK economic system has fallen to about half of its 1996 value and the GDP by two tierces. Furthermore, whilst our exports in this are have remained comparatively inactive, imports have increased by about 40 % , which has affected the country’s autonomy degrees. Similarly, although net farm incomes have steadily increased since 1999, the entire income from farming has halved, whichindicates the size of the agricultural resources that have been lost since the bend of the century.
The concentration of farming into bigger units has been more marked in the UK, with an mean farm size of 66.7 hectares, than most other countries of Europe, as is evidenced from the following tabular array ( figure 2 ) . Even in states such as France and Germany farm sizes are significantly smaller.
Figure 2 Farm Sizes
At the same clip as the above consequences were being witnessed, there was besides a important bead in employment within the industry. This was partly due to the economic place of Agriculture, but at the same clip the historical tradition of offspring following their parents onto the farms was besides being broken, with less enthusiasm being shown for taken over the function of husbandmans due to the long hours of work required for comparatively low degrees of return. Figure 2 shows how terrible this diminution was in the five old ages to 2000, with a loss of over 60 thousand employees in that period stand foring about 10 per centum of the old work force. The loss of skilled workers ensuing from individuals go forthing the industry served to worsen the economic jobs that it was sing.
Figure 3 Fall in work force
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In the instance of Cornwall, much of this diminution has besides been fuelled by the increasing concentration upon the touristry attractive force of the country. For illustration, due to the economic benefits, many traditional husbandmans have transferred the use of parts of their agricultural land from nutrient production to activities that will capture a portion of the tourer market, such as campgrounds and train Parkss.
The place in Wales has become even more utmost than Cornwall. Central Wales is a more distant location than its Cornish opposite number, with a low internal degree of substructure and a less developed transit systems, which makes it less accessible for concern and consumers likewise. As a consequence, local concerns and services such as wellness attention have closed or transferred their services to towns and metropoliss, and much of the rural population has followed. This state of affairs, together with the economic diminution in agribusiness as antecedently outlined, has led to many farms in the country going economically unviable.
UK Food Processing Industry
Food processing is defined as being any method or technique that is used to transform the natural merchandise, being meat, veggie, cereals and other nutrient merchandises, to an comestible dish for the mean human. Without this portion of the supply concatenation our diets would be more limited than they are today, with less assortment to take from and a more seasonal facet to the nutrient we purchase. Therefore any procedure, from the readying of meat at the Butchers to the readying of ready-made repasts for consumer ingestion on sale in supermarkets is a portion of this procedure. Food processing besides increases the lastingness of the merchandise, increasing the shelf and usage life, which has the consequence of cut downing waste whilst at the same clip increasing the measure of supply. Indeed, as the BNF [ 1 ] ( Factsheet 2000 ) justly observe, “without nutrient processing it would non be possible to prolong the demands of modern urban populations.
Prior to the coming of new industrialization methods, mass production and the new engineering country, the bulk of the nutrient processing system was conducted at a local degree. However, subsequent to these events, the nutrient processing systems and administrations became centralised into the more industrialized countries of the state. The major contributory factors behind this development of the nutrient processing industry off from local to a cardinal location was partly dictated by the increased entree to labor, which due to its propinquity to the workplace was in plentiful supply at a lower cost, together with the coming of the mass production procedure. In add-on, such countries of the state and part enjoyed easier entree to the national and international conveyance web. All of these advantages meant that the concerns involved could cut down costs and increase the velocity of the production procedure.
The centralization of the food-processing sector of the supply concatenation was besides driven by alterations in consumer demands and outlooks. As supplies became more plentiful and the retail supermarket phenomena expanded throughout the state the consumer demanded lower monetary values in the nutrient sector. To present this supermarkets needed to cut down their ain costs, which could merely be achieved by them holding entree to centralised buying mercantile establishments, instead than the antecedently diverse and expensive distribution web. One abnormalcy that has arisen from this development is that frequently merchandises harvested locally are frequently transported out of their local country to be processed and so returned to the stores within the same vicinity for sale through shops. For illustration, the natural milk merchandise could be collected from the dairy husbandman, transported to a processing works a distance off from that farm and so, one time it has been processed into the carton that we see on supermarket shelves, re-transported back to the local supermarket in the same country.
Chapter 3 Literature Review
Much has been written about the UK agricultural industry over the old ages and sing the manner it has developed, and there are a assortment of positions sing the manner it should develop in the hereafter. Hechter ( 1969 ) believes that in kernel the industry has developed on the footing of an internal settlement, with each country being a portion of, but in kernel operating as a separate unit from the whole. Indeed, if one looks at the UK merely after the war, when “place gardens and allocations used to be critical beginnings of nutrient” ( Junior-grade 2002, p.185 ) , it is easy to see how this insular and separate attitude can develop. In the first half of the 20th century the British people had a really independent mode and were set in their ways. This contributes to the ground why, despite progresss that have been made in agribusiness over the old ages, in a earlier subdivision of his research Petty ( 2002, p.72 ) discovered that, in the chief, the procedures used to bring forth nutrient on modern farms is still really conventional.
Despite the fact that the agricultural industry as an component of the UK national economic system has become significantly less of import over the old ages, there are still certain countries where it is considered to hold an indispensable impact on the local community in footings of the gross it contributes ( Greer 2005, p.74 and p.77 ) . These include such parts as Wales, with its unique hill farming industry, East Anglia for the cereal end product and, to some extent, Cornwall for its wheat and grain. In Wales for illustration, over a broad country of the state agribusiness is still the industry that is cardinal to the parts community and economic system. However, despite this fact the country has still witness a decrease in the figure of people employed in agribusiness ( Jones 1999, p.185 and p.309 ) . As has been noted earlier, most other agricultural parts, including Cornwall have experienced a similar diminution in the employment base.
However, in footings of continuing the countryside and agricultural industry, there is still someplace in the part of 18 million hectares of land in the United Kingdom that is used for agricultural intent ( Junior-grade 2002, p.30 ) , for which an effectual direction scheme has needed to be developed over the old ages. Surely, if the UK wants to hold the diminution in the degrees of autonomy
However, as has been widely recorded, attempts to revitalize the industry have been thwarted by several events that have had an inauspicious consequence upon the industry. For illustration, in early 2001, as noted by UK Agriculture ( 2007 ) , the diminution was exacerbated by a serious eruption of pes and oral cavity within the carnal population and this, followed by wellness hazards from BSE and swine febrility, badly curtailed the agricultural industry’s ability to spread out within both the place and international market topographic points.
Following these events, and in an attempt to shift the importance of agribusiness within the economic system, the NFU [ 2 ] , one of the most active representative organic structures for the industry campaigned for the authorities and the EU to make an advanced program in an attempt “to reconstruct public assurance in place produced nutrient” ( Greer 2005, p.40 ) . Similarly, husbandmans in Wales in the late portion of the last century engaged in a series of active protests, which were aimed chiefly at cut downing the consequence that subsidised imports
In response to these concerns and besides as a consequence of the enterprises set in topographic point by the European Union, DEFRA [ 3 ] has produced and discussed a figure of schemes over recent old ages. With the cardinal focal point of these being action required nationally to seek a restructure of the agricultural industry into a more efficient sector ( Greer 2005, p.129 ) , the organisation’s intent is to reconstruct the former prosperity of the parts. Whilst keeping the incorporate attack, development programs have been set in topographic point for “England, Scotland, Wales and Northern Ireland” ( Greer 2005, p.41 ) . However, it has been recognised that to thrive, agribusiness has to seek new and advanced ways to add value to its industry, which entailed a certain degree of diverseness from traditional methods and attacks if the industry was to accomplish a recovery and go competitory nationally and internationally.
Initially some countries, such as Cornwall, have taken the “colonial” attack discussed within Hechter ( 1969 ) and sought other ways of increasing their single incomes and prosperity. As has already been mentioned, in this peculiar part, many turned to tourism for this consequence. However, with the coming of “cheap” flights and travel, even this chance is now in diminution. Thus the industry needs to look for more sustainable options. To this terminal Peter Pierpoint ( 1997 ) suggested research shows that uniting the development of nutrient processing within the agricultural parts may supply a positive option.
As with any are of industry, a scope of auxiliary operations has grown around agribusiness. These indirectly include such administrations as fiscal establishments, equipment makers and providers and the chemical and biotechnology administrations. However, the most straight linked accessory industry to agribusiness is nutrient processing ( Greer 2005, p.49 ) . It is wholly evident that the two industries and inter-dependent. From the nutrient manufacturers to the processing and packaging operations and so on to the retail merchants, all of these countries are an built-in portion of the nutrient supply concatenation.
As has been antecedently noted, in the past the agricultural industry and parts have tended to stay separate from the remainder of the nutrient supply concatenation. The sensed advantage of this attack was seen to be that husbandmans felt comfy and confident within their ain concern environment and, every bit long as they were bring forthing the needed degrees of merchandises, saw this as their chief income generator. However, the disadvantage was that, as the retail industry became more organized and, with the development of supermarkets and other monetary value witting mercantile establishments, so they began to hold more influence upon the agricultural industry, coercing down monetary values and demanding higher outputs and quality, all of which added to the economic troubles being experience within the agricultural parts.
However, European Union regional informations strongly suggests that agricultural parts that have taken it upon themselves to develop the nutrient processing industry at a local degree have seen increased value added to the industry itself ( Pierpoint 1997 ) although, in his survey he suggests that the construction of the Gallic agriculture industry has given it an advantage in this country over their Cornish opposite numbers, despite the geographical and socio-economic similarities. Nevertheless, in Cornwall and other agricultural countries of the UK, those within the agricultural industry are get downing to take notice of the agri-food attack.
For illustration, a group of agriculturists and husbandmans from the southwest parts of Cornwall across to Hampshire hold formed their ain “organic selling cooperative, ” ( Petty 2002, p.112 ) which provides a better value footing for the sale of merchandises to the retail market. Similarly, in Wales certain parts have created action programs for their agricultural industries which includes incorporating more of the nutrient processing and supply facet of the nutrient concatenation within their part, therefore enabling them to profit from the added-value of a resource that had antecedently non been available to them ( Greer 2005, p.194 ) .
It is argued by researches that making a more localized nutrient processing sector within the agricultural parts, where husbandmans and manufacturers can be more straight involved with other countries of the nutrient concatenation, including readying, distribution and selling, will bring forth positive consequences in footings of the fiscal stableness and growing within the agriculture and rural communities.
It is clear from the research that has been carried out into agribusiness, that there is a demand to turn to the diminution within the industry, which as can be seen from figure 1 ( page 7 of this study ) has fallen by 10 per centum in the last decennary. The bulk of this research shows that the last three decennaries have seen a consistent diminution in the lucks of the industry, both in footings of its economic value to the UK economic system as a whole, and in relation to employment statistics. Some research workers see developing the nutrient processing industry within the agricultural parts as the manner frontward and the path to prosperity. The inquiry is whether this theory is supported by the facts within the countries being used as a instance survey in this paper.
Chapter 4 Research Methodology
Within the debut subdivision of this survey, the four key aims for the research were outlined. The research into how the agricultural industry has developed, peculiarly in relation to United Kingdom provides indispensable background information, which will help in understanding why these countries have become of such concern to authorities and non-governmental administrations over recent decennaries. The pick of Cornwall and Wales for the instance survey is appropriate because in the instance of the former, much attending over recent decennaries has been concentrated upon developing the touristry attractive force, instead than agricultural demands of the country. Wales provides a much larger agricultural environment, which has to vie with little pockets of to a great extent industrialised parts, specifically on coastal countries.
Food processing, up until the last decennary, has been seen chiefly as an industrial activity and therefore it is of import to understand how the transportation of this activity to agricultural parts has both evolved and to what extent the instance survey countries have benefited from this latest development. Similarly, as an built-in portion of this country of research, the relevant synergisms will supply a better apprehension of the footing for truth of the hypothesis.
Choice of research attack
Due to the nature of the country being research, it is felt that the qualitative method or research, which uses primary informations as its footing ( Collis and Hussey 2003, p.53 ) , would non hold been appropriate. The questionnaire and research based attack, whilst utile, would non hold provided the necessary elaborate research information that is required for the intent of adding to the apprehension of the issue of nutrient processing development in agricultural parts, apart from giving some indicant as to how the assorted stakeholders, specifically those who operate within the several industries, have reacted to this development.
The important degree of research and statistical informations required for this survey led the writer to believe that the quantitative research attack would be a more productive attack. In an enterprise to guarantee the dependability of the informations researched, a broad and diverse scope of beginnings has been used for this survey ( Collis and Hussey 2003. p.71 ) . This state of affairs provided the writer with the ability to cross-refer and look into the truth, nonpartisanship and cogency of the information gathered, which enables the highest possible degree of objectiveness to be attached to the decisions and recommendations reached.
With respects to the informations relating to the agricultural and nutrient processing industries, this has been acquired from a assortment of beginnings, which includes UK and EU authorities sections and other industry associations and perceivers. Included within this information is the relevant statistical information from UK and EU studies. Additional information was obtained from Internet beginnings, books, diaries and other industry and economic beginnings. Wherever possible premier beginnings have been used for informations assemblage, peculiarly in relation to the schemes and policies that have been suggested and implemented by the UK and EU authoritiess. This information includes current and suggested policy paperss.
In maintaining with the advices given by research workers such as Collis and Hussey ( 2003 ) , a significant sum of clip has been expended in digesting all of the stuff available in relation to the agribusiness industry in Cornwall and Wales, to do certain that the chosen stuff was apposite to the aims and inquiries being sought. Furthermore, informations from organisations active within the two selected countries was besides used. These beginnings, together with others, were used to obtain past and future strategic information every bit good as for sketching the current place of the agricultural and nutrient processing industries in both of these parts of the state. To supply objectiveness in respects to this information, industry studies and independent research carried out by other experts in the several industries were besides reviewed. The ground for the pick of these two countries is that, whilst there are similarities in footings of their agricultural heritage, they differ in footings of economic and political development and development. Politically Cornwall is still an built-in portion of the UK political construction, whereas Wales has a grade of devolved power. Economically Cornwall has attracted a wider diverseness of activities and services, peculiarly within the touristry sector, whereas this has impacted upon Wales to a lesser extent.
In order to accomplish a comparative benchmark for the instance survey, the countries selected have been assessed against similar parts within other member provinces of the European Union. In this case, information from the EU itself and assorted beginnings within the selected state provinces, have been used.
Chapter 5 Findingss, Analysis and Discussion
To enable an analysis of the hypothesis that was set at the beginning of this paper, it was decided to utilize two distinguishable UK agricultural parts, these being Cornwall and Wales for the grounds that have been outlined antecedently.
Agricultural parts – Cornwall
Cornwall is set in the South West of the UK. Although it is traditionally an agricultural part, it has possibly become better known since the Second World War as a tourer country. However, it still has a important agricultural base within its economic system, which is still seen as one of the primary industries for the county ( Cornwall County Council 2007 ) , with a growing in the figure of retentions during the period from 1997 to 2001 ( see figure 4 ) , which compares favorably with the motion in England as a whole. However, the industry has seen a important decrease in the countries committed to the elevation of cowss and sheep farm animal, which reflects the overall troubles that have been by and large experienced in this country as a consequence of disease epidemics such as BSE and besides the inroads being made by foreign imports.
Despite recent diminutions, it is seen as one of the foundations for strong rural communities, but the industry can merely retain this place by increasing employment, which through current agricultural methods and schemes is non go oning.
Figure 4 Farming in Cornwall
However, despite the evident betterment seen supra, this has non translated itself into betterments on the employment issue. As can be seen from the following tabular array ( figure 5 ) , the Numberss of people employed within the agricultural industry are go oning to fall. Despite the fact that in comparing to England, Cornwall has suffered less, the Cornwall County Council ( 2007 ) do non see this downward tendency in their part being reversed in the immediate hereafter, with the bulk of the staying work force consisting of proprietors and renters ( Cornwall County Council 2007, 3.38 ) .
Figure 5 Agricultural employment Cornwall
Agricultural parts – Cymrus
Agribusiness in Wales, because of the internal terrain, is most known for its Hill Farming component. It has a well higher degree of retentions than Cornwall, spread over a greater land mass ( see figure 6 ) .
Figure 6 Farms in Wales
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In footings of employment the part, like Cornwall, has seen a consistent diminution in the Numberss during the past decennary, although as the following tabular array shows, there was a little betterment in the figures during 2004 ( see figure 7 ) .
Figure 7 Agricultural employment in Wales
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Causes of Agricultural diminution
Some of the duty for the current place and tendencies has been levelled at the “cost-price squeeze” consequence that is presently taking topographic point within the nutrient concatenation, with consumers systematically demanding lower retail monetary values. Whilst it is true that this has had a important impact on the industry, it is non the exclusive cause of the current place. Three other important factors have besides had an inauspicious consequence.
- Disease. The sensed deficiency of safety in British nutrients following the incidences of pes and oral cavity, BSE, swine febrility and, more late, eruptions of avian grippe ( Haynes 2007 ) has besides had a important impact upon consumer’s and buyer’s both assurance in the UK and abroad. The fact that these have occurred within a comparatively short period of each other has done small to better the recovery place of the industry as a whole, the timescale of which has been extended as a consequence of these events.
- Technology use. Apart from the larger corporate farm retentions the usage of modern technological progresss within agribusiness within the smaller retentions has non been taken advantage of to the extent that other industries have respond to this country of concern to the same extent. This is presumptively due to the older age demographics of the older proprietors and renters, together with the clip restraints that they experience as a consequence of low degrees of employment. Based upon the deficiency of profitableness of many little farms, another contributory factor to the deficiency of new engineering resources in usage consequences from the limited fiscal resources available to buy the equipment and preparation necessary for such inventions.
- Finally, the local “colony” attitude as indicated by Hechter ( 1969 ) is still in grounds in many rural and agrarian countries. The psychological place of a big component of the agricultural community is immune to alter, a state of affairs that makes betterments for greater efficiency hard to implement.
National and Regional Schemes
There have been a figure of enterprises instigated with respect to the agricultural industry, peculiarly from the European Union, although these and those that have come from the UK governments, have non been met with consentaneous blessing. In the instance of the EU schemes there is a organic structure of sentiment that this limits national action. As Alan Greer ( 2005 ) provinces in the debut to his survey on the agricultural industry, “there is a widespread premise that the being of a CAP[ 4 ]across the European Union undermines the capacity of provinces to build their ain national policies.” To a certain extent the remark made by Greer is true. As will be seen within this subdivision of the paper, a big proportion of the schemes and policies associating to the UK agricultural industry have in fact come into being as a consequence of EU treatments and directives.
Irrespective of these remarks, it is of import to retrieve that the European Union as a whole commits in surplus of 45 billion dollars each twelvemonth in support of husbandmans throughout the member provinces. Therefore it is just to province, as Cardwell ( 2004, p.8 ) does that “Agriculture enjoys legion advantages in the operation of the EU legislative procedure and bureaucracy.”Whilst it may be true that the major portion of these financess are utilised in the buying and storage of excess merchandises such as beef, wheat, milk and butter, before selling it to other states, normally within the development and 3rd universe ( Gardner 1996, p.3 ) , this still represents a important degree of province assistance.
The Common Agricultural Policy seeks to accomplish equity of competition within the EU, whilst at the same clip supplying assistance. The possible drawbacks of this policy is that it still leaves husbandmans vulnerable to policy alterations and additions in costs that are non to the full reflected within the subsidies. For illustration in Wales, which benefits from CAP, the additions in prosperity that it has brought to the hill husbandmans in the country could vanish if policies change and the EU or local governments felt that this was supplying the country with an unjust advantage, or changed the conditions in relation to eligibility ( Jones 1999, p.320 and Cardwell 2004, p.227 ) . In footings of cost additions, during the reform of the CAP system it has already been noted that these additions had an inauspicious consequence upon the UK cultivable industry as a whole ( Gardner 1996, p.148 ) . Thus it would be true to state that such policies merely remain appropriate should all other factors remain the same.
In the UK in 2002, the authorities commissioned a study on the hereafter of agriculture and nutrient ( Curry 2002 ) in an effort to specify a scheme, which would take to a more sustainable for the hereafter of agribusiness and those who work within the industry. One of the chief decisions of this study ( Curry 2002, p.109 ) was that farming had “go detached from the remainder of the economic system and the environment.” The study besides suggests that this place has been reached partially as a consequence of the significant subsidies, which its writers believed should be ended ( Curry 2002, p.110 ) . To turn to this place the study suggests that new research organic structures, consisting of representatives from all the industry stakeholders, including the consumer, should be set, which will include within its remit, the puting up of “demonstration farms” to be used as theoretical accounts of economic success in farming. One remark within this country of the study that is peculiarly pertinent to the research of this paper is the remark that “at the minute some [ nutrient ] ironss are excessively long” ( Curry 2002, p.113 ) , proposing that a nutrient concatenation Centre be set up to guarantee the communicating activities within the nutrient concatenation are improved. Together with this Curry ( 2002, p.118 ) suggests the creative activity of marketing grants to assist husbandmans to be able to more actively promote their green goods in the local country. This is seen as an of import country for husbandmans to take advantage of, peculiarly in position of the addition in consumer concerns within respect to the safety of nutrient production and other environmental issues. Similarly, it recommends a higher degree of preparation and engagement by husbandmans within countries of new engineering as it relates to equipment and procedures.
Not all of the recommendations of the study have been accepted as appropriate or even feasible. Adam Quinney ( 2002 ) , whilst praising many of its recommendations, takes issue with the cost component, bespeaking that, with the monetary value of new engineering and the low monetary values that husbandmans receive for their merchandises would do it hard for the husbandmans to implement many of the recommendations made, for illustration the increased degrees of preparation. Furthermore Mr Quinney ( 2002 ) contends that there are inefficiencies in the nutrient concatenation, but that the retailing terminal of this sector are the 1s who are responsible, and are utilizing higher monetary values to consumers and lower cost from providers to turn to these issues instead than take stairss to do the system more efficient.
However, it does look from all of the schemes that are being put frontward by authoritiess and other governments, that there is a consensus towards variegation an built-in portion of the manner frontward, although the Curry ( 2002 ) study stops abruptly of to the full back uping integrating a more localized nutrient programme as portion of this variegation programme. Whether this was knowing, or simply non portion of its remit at the clip, or even a deliberate skip to avoid making issues that would be likely to impact upon other stakeholders within the nutrient concatenation, is problematic. This is in malice of the fact that the UK authorities, in their study “Facing the Future” ( 2002 ) recognised that all parts of the nutrient concatenation were “mutually dependent.”
Food Processing in the agricultural parts
In add-on to the findings of Peter Pierpoint ( 1997 ) , many other research workers have indicated that, by going more involved with the nutrient treating facet of the nutrient concatenation, the agribusiness industry can accomplish benefits. For illustration Cadwell ( 2004, p.312 ) , whose research confirms that the agribusiness industry is at a low point of that concatenation, and the economic consequences confirm this, besides states earlier ( p.13 ) that the inclusion of parts of the food-processing component can increase that communities “GDP” by around two per centum.
Furthermore there are benefits from EU subsidies that would attach to those who become involved with the food-processing component. For illustration, agricultural exporting receives a greater proportion of the EU farm financess than the payout “levies on imports of nutrient” ( Gardner 1996, p.44 ) . Similarly, surely within the country of organic nutrient processing, the UK authorities, whilst puting high criterions ( Cardwell 2004, p.282 ) does supply considerable aid to the industry, most of which would be directed towards to the smaller agrarian unit. This is one peculiar country of the industry where the smaller size of the concern, and its lower trust on mass production, is a distinguishable advantage.
Some within the industry may see that the inclusion of nutrient processing within the local agricultural industry may hold certain disadvantages. These include the undermentioned countries: –
- Lack of continuity of sale. The fright in this case is that altering from a place where there is a changeless watercourse of majority orders that ensures sale of all production, to one where the degree of sale is more locally dependent could go forth the husbandmans with unwanted and unserviceable stocks. However, this state of affairs can be addressed by efficiency of direction and utilizing a progressive transportation of merchandise sale.
- Cost prohibitive. The perceptual experience is that raising the capital to set about such a venture would be cost prohibitory both in footings of the capital spending and the publicity. The latter portion of this concern is addressed within the Curry study ( 2002 ) where it recommends a selling grant and the former is a inquiry of developing an appropriate concern program.
- Lack of expertness and cognition. Training is available to cover most of these countries and, to a certain extent it is merely an extension of the selling procedure of selling in majority to the larger administrations. Furthermore, by the formation of co-operatives there is the possible to pool accomplishments and resources to antagonize any lacks in these countries.
Conversely, there are besides advantages to be gained from the procedure: –
- Added value. With more control over the processing and finish of its merchandises, the husbandman is likely to have an addition in the gross per unit of merchandise sold. This will supply extra net incomes, which will enable the concern to put in more efficient steps and procedures within their concern.
- Local economic system. With more financess staying in the local country, this will better installations within the local rural community and lead to this place being able to be more positively sustained.
- Employment. With the increased efficiency degrees employment within the industry will lift, enabling a continuity of sequence to more easy be developed.
A well known illustration of a successful passage to the inclusion of the nutrient processing component at a local degree can be found in the instance of the Prince of Wales “Duchy of Cornwall” concern, which has even extended it’s gross revenues internationally in the US ( Melford Mail Tribune 2004 ) , where the concern is successfully offering “Duchy Originals” to consumers. As is apparent from the extremely publicized degrees of revenue enhancement that the Prince is holding to pay on the grosss from this concern, amongst his other involvements, this proves that the venture has resulted in the concern going more efficient and increased the prosperity of the concern and the local community who work or benefit from the concern.
Other international surveies have besides suggested that nutrient processing can convey advantages to the agricultural industry. For illustration, Ann Brentmar ( 1996 ) , in her survey into the inclusion of the food-processing sector within the farming community in Oregon, US, commented upon two separate but of import issues. The first, and the one most relevant to this research, was the benefits that it delivered to the husbandmans and manufacturers. As Ms Brentmar’s ( 1996, p.4 ) research justly indicates, in general footings husbandman and agriculture is the most labour and hazard intensive portion of the nutrient concatenation and, at the same clip the one sector of that concatenation that attracts the least wages. However, by integrating the nutrient processing concatenation, which includes selling, within the agriculture activity, it can hold the consequence of increasing gross and profitableness, which provides an chance for these concerns to go more efficient and self reliant. Second, by going more self-sufficing in this mode, such a move has the added benefit of continuing farming area, for case from development, and as a direct consequence of this will assist in the care of rural communities, increasing employment chances.
Decision and Recommendations
The hypothesis set at the beginning of this paper was to determine if the development of nutrient processing in agricultural countries can supply a path to prosperity. From the research that has been carried out for this paper it is concluded that this instance has been proven. All concerns, irrespective of their industry, has to turn and develop, which means accommodating to the current environment, and accommodating to the altering demands and outlooks of the market topographic point, and the agribusiness industry can non be exempted from this procedure.
To turn to the jobs of the industry sole of variegation has been proven to be non a feasible option. Despite all of the enterprises that have been introduced over the old ages, the UK agribusiness industry has non responded positively to these AIDSs, as the continual diminutions in its lucks have shown. Therefore, in add-on to steps to making more efficient methods of agriculture, it is evident that variegation does supply an chance for added prosperity. Whilst, as shown in Cornwall with touristry, some benefit can be gained from variegation outside of the industry itself, this has non been able to be sustained, chiefly as a consequence of influences outside of the control of the agricultural industry itself.
In the position of the writer variegation within an country that the industry has some cognition about, such as nutrient processing, would be far more sustainable. Whilst there is small uncertainty that certain operator’s within the bing food-processing operations would hold reserve sing it going a more localized event, it is proven that, peculiarly in footings of current concerns from consumers in relation to nutrient safety and environmental issues, advancing placing nutrient processing as turn toing these concerns can convey increase in gross and hence add value to the concern and industry.
However, during the transitional period, whilst the industry is in the procedure of alteration, there will stay a demand for aid from authoritiess and other non-governmental administrations. Similarly, it is of import for the industry itself to understand the demand, and takes the necessary stairss, to accommodate to alter from whatever beginnings this emanates.
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