Methodological Centre for Vocational Education and Training
Study of Food Products and Beverages Industry Research report on skill needs
Vilnius, 2008
STUDY OF FOOD PRODUCTS AND BEVERAGES INDUSTRY
Eksperts: Gitana Alenčikien÷, Violeta Averjanovien÷, Saulius Baliukynas, Giedr÷ Beleckien÷, Gintautas Bužinskas, Vaidas Daujotas, Vincentas Dienys, Bronislava Kaminskien÷, Rūta Karvelyt÷, Vitalija Motiekait÷n÷, Candy Murphy, Raimondas Narkevičius, Almina Pačešiūnien÷, Vita Povilionyt÷, Loreta Račelien÷, Albertas Šlekys, Laima Teliukien÷, Lina Vaitkut÷
We are sincerely grateful to sector organisations and everyone who helped us in this activity. We hope that the information presented will be helpful while planning employees training and performing other tasks.
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SUMMARY
The sector of manufacture of food products and beverages (FB) is defined according to the activities of the
international NACE classification. It consists of the following nine sub-sectors: meat (further referred to as
ME), fish (further referred to as FI), fruit and vegetables (further referred to as FV), oils and fats (further
referred to as OF); diary products (further referred to as DP), grain (further referred to as GR), animal feeds
(further referred to as AF), other food products (further referred to as OFP) and beverages (further referred
to as BE).
International trends
The manufacture of food products and beverages is the biggest sector of manufacture in the European
Union. It employs 4 million employees, makes up 1.8 per cent of the EU gross domestic product, has a
relatively high number of economic entities and a huge demand for the labour force. The characteristics of
the sector, as compared to the other economic sectors, are the following: part-time employment, young
employees (aged up to 30) and a substantial share of workers with low qualifications. The growing
competition, poor working conditions and stricter legal requirements had an impact upon viability of the
sector and sharpened the problems related to the attraction and maintenance of staff.
Although short-term and medium-term future prospects of the sector are positive, the possible threats create
a need to invest into employee training and self-improvement and focus on product development,
innovations and business development in the entire sector, embracing both small and medium-size
enterprises. To have the manufacture of food and beverages effectively adapt to changes, managers,
qualified workers and professionals, research and development as well as technical staff should be provided
with adequate training and support. Training should be oriented towards filling in the current gaps of skills
and satisfaction of the emerging demand for them. Regional authorities and national training establishments
will play a key role in helping enterprises meet the emerging challenges and ensuring sector development in
Europe.
Trends of Food products and beverages sector development in Lithuania
Enterprises. According to the preliminary data of 2007, there were 1,094 enterprises operating in the sector.
Out of that number, 47 per cent of enterprises specialised in manufacture of food products; 23 per cent of
companies were involved in production, processing and preserving of meat and meat products and 11 per
cent of enterprises manufactured beverages. The remaining enterprises (comprising one fifth of the total)
carry out activities in the other six sub-sectors. The sector is predominated by very small (with up to 9
employees) and small (from 10 to 49 employees) enterprises, making up 80 per cent of the total number of
the sector enterprises. The biggest concentration of enterprises is in Vilnius and Kaunas counties.
Employees. According to the preliminary of 2007, the sector employed 51,700 people. They account for
more than 3 per cent of the total number of employees in the overall Lithuanian economy. Employees in the
sub-sectors of other food products, meat and diary products made up 70 per cent of the total number of the
sector employees. During the period of five years (in 2003 – 2007) the number of staff in very small and
small enterprises was dropping.
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Performance indicators. During the recent five years, the turnover in the FB sector has gone up. According to
the preliminary data of 2007, the biggest turnover was in the sub-sector of dairy products and other food
products, followed by the meat and beverages sub-sector. In 2003 - 2007, the level of productivity rose in all
the FB sub-sectors. The biggest growth was seen in the sub-sectors of fruit and vegetables, meat, oils and
fat, and beverages. In the five year period, the value-added created by the sector went up my slightly more
than 1.5 times. The earnings of employees were increasing in all the FB sub-sectors, yet they remained
lower than the national indicator. As compared to the other branches of manufacture, earnings offered to the
FB sector staff are among the lowest. With regard to the volume of export, the FB sector is one the leaders
among the branches of manufacturing. Generally speaking, the FB sector is sufficiently competitive on the
international scale.
Technologies. Modern technologies are used by almost 55 per cent of the FB enterprises and 64 per cent of
them are planning to use modern technologies in the future. The information technologies to be used by the
FB sector in the future include production planning and accounting software and e-trade technologies.
Development trends. The sector forecast for 2012 is rather optimistic: the turnover in the majority of sector
enterprises will continue to grow (with the exception of oils, fats and grain) but the rate of growth is likely to
slow down. One of the reasons for that is insufficient labour force resources. The volume of production
should be increased by resorting to some other sources, for example, increasing the labour productivity,
which is currently quite low, and applying new technologies. The biggest threat to a successful business
development is the shortage of ‘qualified workers’ or simply ‘workers’ and the ‘tax system’.
Demand for employees. The turnover of staff in the FB sector is rather high, accounting for 43 per cent per
year. Its rate is the highest in the group of manufacturers and other workers. The main reasons for that are
emigration, seasonality of work and new technologies. The groups of employees which are most difficult to
find are manufacturers and other workers, whereas professionals are less of an issue. The tension level (the
ratio between the number of vacancies and the number of the unemployed) in the sector is less than 1 and
therefore is smaller than the relevant national indicator. This means that the quantitative supply of
employees in the sector is lightly exceeding the demand for them. Noteworthy, the tension level among
different sub-sectors is not the same.
Changes in skills. The sector employees mostly lack foreign language and work organisation skills. In
addition, professionals require work planning and control as well as computer literacy skills. Qualified
employees lack responsibility, duty and willingness to learn, whereas professions need innovation and
management skills.
Supply of employees. In 2006, the entire manufacturing industry, which includes the FB sector, employed
almost three times more qualified workers than professionals (including technicians). According to the
preliminary data of 2006, the number of admitted students in the FB sector training programmes and the
number of graduates from them reveal different trends. First, the number of students admitted into higher
education establishments exceeds the number of students in primary vocational training programmes almost
2.5 times. Second, the number of graduates from higher education establishment is slightly exceeding the
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number of vocational training graduates. This means that the gap between the supply and demand for
workers will continue to increase in the future, causing serious problems for business development.
Recommendations:
• Although the level of employment in the FB sector enterprises among the group of workers is four times
bigger than in the group of professionals (including technicians), the number of admitted students to the
FB sector programmes of higher education exceeds the number of students to the relevant vocational
training programmes 2.5 times (data of 2006). As a result of such disproportion, the supply of
professionals in the labour market exceeds the demand for them, whereas qualified workers are lacking.
Therefore it is recommended to review the plans of admitting students into the state funded higher
education and vocational training programmes of the FB sector.
• The shortage of ‘manufacturers’ and ‘other workers’ in the sector is mostly linked to the lack of workers
trained by vocational training establishments. The latter is associated with the low level of prestige, in the
eyes of society, of vocational training. Therefore it is recommended to advertise and raise awareness
about food manufacturing occupations among the youth (organising advertising campaigns in general
education schools, in the press, television and showing examples of successful careers pursued by the
graduates, etc.). The attractiveness and prestige of the sector occupations should also be increased by
the food manufacturing enterprises. They could offer higher remuneration for work and social guarantees
to their employees, improve working conditions and motivate staff by offering refresher courses abroad.
• Certain sector enterprises (particularly those operating in the grain and animal feed sub-sectors) lack
food machine operators. Presently, no training is available to offer such occupational qualification.
Previously, workers of similar qualification were trained under the Food Industry Equipment Operator
and Laboratory Assistant Training Programme. Therefore it is recommended to modify the programme to
include training of food machine operators.
• The sector of the FB manufacture offers a huge variety of occupation posts and competences.
Therefore, the annual demand for employees in certain occupation posts is rather high. Therefore it is
recommended to organise training based on modules. In the beginning students would attend obligatory
training modules offering general competences required by the FB sector and later they could choose
additional competences necessary for the occupation of their choice from the range of optional modules.
The optional modules could be agreed with the interested sector enterprises which usually employ the
graduates.
• The analysis performed shows that enterprises willing to respond to market changes in a more flexible
and speedy manner will speed up the use of modern production technologies. That will also reduce the
need for workers with low qualification and increase the demand for higher skilled workers (for instance,
operators). Therefore, it is recommended to organise practical training for employees (for example, by
appointment of enterprise workers as manufacturing practice supervisors or tasking them to perform
other assignments). It the long-run this would ensure smaller discrepancy between the supply and
demand for employees of certain qualifications.
• The new form of organisation of apprenticeship vocational training has been established by law. It
means on-the-job training in an enterprise, institution, organisation, farm or with a free-lance trainer.
Theoretical training may be carried out in vocational training establishment or another type of school.
The experience of other countries shows, that the advantages of apprenticeship include smaller training
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costs and work with modern technologies. Enterprises are recommended to use the opportunity to train
the employees according to their own needs and, at the same time, increase the attractiveness of
vocational education and training.
• According to the survey findings, all the sector employees lack foreign language and work organisation
skills. n addition, professionals require work planning and control as well as computer literacy skills.
Qualified employees lack responsibility, duty and willingness to learn, whereas professions need
innovation and management skills. Therefore, to ensure appropriate qualification of employees,
training/study programmes should be updated with regard to the identified needs of skills.
Structure of the study. The study comprises 6 chapters. Chapter 1 makes a brief overview of the objectives
of the study, the concepts used by it and the methodology of the social survey. In addition, it describes the
structure of the sector of manufacture of food products and beverages sector. Chapter 2 explains the
international trends in the sports sector development. The purpose of Chapter 2 and Chapter 3 is to analyse
performance indicators of the sector and make an assessment of the employee demand. The indicators
used in Chapter 3 are based on the data developed specifically for the study and publicly available
information, whereas the indicators in Chapter 4 include findings of the survey. Chapter 5 analyses the
supply of employees and Chapter 6 provides recommendations developed on the basis of information
analysis. Their aim is to to reduce discrepancy between the supply and demand of employees in the sports
sector.
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TABLE OF CONTENTS
1. RESEARCH METHODOLOGY .......................................................................................................................................................... 7
1.1. Introduction................................................................................................................................................................................. 7 1.2. Authors of the Study................................................................................................................................................................... 7 1.3. Goal of the Study........................................................................................................................................................................ 7 1.4. Methodology............................................................................................................................................................................... 7 1.5. Definition of the Sector ............................................................................................................................................................... 7 1.6. Sociological Survey of Sector Enterprises ................................................................................................................................. 8
2. INTERNATIONAL TRENDS ............................................................................................................................................................. 10
2.1. Introduction............................................................................................................................................................................... 10 2.2. Overview of the sector.............................................................................................................................................................. 10 2.3. Relationship between food and beverages and other sectors ................................................................................................. 14 2.4. Employment in the Food and Beverage Sector........................................................................................................................ 15 2.5. Factors driving developments in the Food and Beverages Sector........................................................................................... 18 2.6. Impact of these developments on employment and skill needs............................................................................................... 25 2.7. Summary .................................................................................................................................................................................. 30
3. STATISTICAL CHARACTERISTICS OF THE SECTOR.................................................................................................................. 32
3.1. Introduction............................................................................................................................................................................... 32 3.2. Briefly about the Sector of Manufacture of Food Products and Beverages ............................................................................. 32 3.3. Enterprises ............................................................................................................................................................................... 33 3.4. Employment in the Sector ........................................................................................................................................................ 34 3.5. Performance Indicators ............................................................................................................................................................ 37 3.6. Development Trends ................................................................................................................................................................ 39 3.7. Summary .................................................................................................................................................................................. 40
4. CHARACTERISTICS OF SECTOR BASED ON SURVEY FINDINGS ............................................................................................ 42
4.1. Introduction............................................................................................................................................................................... 42 4.2. Performance indicators ............................................................................................................................................................ 42 4.3. Employees................................................................................................................................................................................ 45 4.4. Forecast of Demand for Employees in the Future.................................................................................................................... 47 4.5. Summary .................................................................................................................................................................................. 48
5. SUPPLY OF EMPLOYEES .............................................................................................................................................................. 49
5.1. Introduction............................................................................................................................................................................... 49 5.2. Education and Job Groups....................................................................................................................................................... 49 5.3. Supply of Employees by Areas and Level of Education........................................................................................................... 51 5.4. Supply of Employees in the FB Sector..................................................................................................................................... 52 5.4.1. Supply of Skilled Workers (Manufacturers) for the FB Sector............................................................................................... 53 5.4.2. Supply of Professionals, Including Associate Professionals and Technicians, for the FB Sector......................................... 54 5.5. Summary .................................................................................................................................................................................. 54
6. RECOMMENDATIONS .................................................................................................................................................................... 56
REFERENCES ..................................................................................................................................................................................... 58
ANNEX 1 .............................................................................................................................................................................................. 59
ANNEX 2 .............................................................................................................................................................................................. 60
ANNEX 3 .............................................................................................................................................................................................. 62
ANNEX 4 .............................................................................................................................................................................................. 65
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1. RESEARCH METHODOLOGY
1.1. Introduction
Since 2005, the Methodological Centre for Vocational Education and Training has been performing a project,
Development of the National System of Vocational Education and Training Standards. The purpose of the
project is to develop the national system of vocational education and training standards which would help
increase conformity between training and education on the one hand and global performance needs on the
other hand as well as provide better conditions for life-long learning. One of the main activities of the project
is to examine six economic sectors with a view to assessing the prospects of their development and the
impact on the number of employees and training needs. The project is of national importance and is funded
by the European Social Fund.
1.2. Authors of the Study
The study was developed by a group of experts representing a variety of Lithuanian bodies and
establishments (educational, scientific, statistics, business, etc.). Assistance was provided by experts from
Ireland having the relevant expertise in implementing similar type of activities and identification of necessary
skills.
1.3. Goal of the Study
The main goal of the study is to analyse the trends of development of the manufacture of food products
and beverages sector in Lithuania and other countries and, on the basis of that, determine the changes in
the number of employees and training needs for the upcoming five years as well as provide concrete
recommendations to improve conformity between the supply and demand of the labour force.
1.4. Methodology
The sectors are studied using a single methodology developed together with the Irish experts in 1999. The
study of the manufacture of food products and beverages sector encompasses the following phases:
1. An overview of publicly available information in Lithuania and other countries about the sector and
related areas as well as the analysis of official statistics about the sector;
2. A survey of sector enterprises by means of interviews and postal questionnaire surveys;
3. Analysis of all information and identification of change factors in the sector;
4. Projection of employment in the sector;
5. Assessment of the sector training needs in the upcoming five years.
1.5. Definition of the Sector
The sector of manufacture of food products and beverages has been defined according to the activities
included into the NACE classification. The definition has been modified by the Lithuanian and EU experts..
This made it possible to compare the findings of the study with the international results. By definition, the
sector of manufacture of foods products and beverages (further referred to as FB) consists of the following
nine sub-sectors (see Fig. 1.1): meat (further referred to as ME), fish (further referred to as FI), fruit and
8
vegetables (further referred to as FV), oils and fats (further referred to as OF); diary products (further
referred to as DP), grain (further referred to as GR), animal feeds (further referred to as AF), other food
products (further referred to as OFP) and beverages (further referred to as BE).
Fig. 1.1. Manufacture of Food Products and Beverages according to NACE Classification
1.6. Sociological Survey of Sector Enterprises
A postal questionnaire survey of enterprising operating in the sector of manufacture of food products and
beverages was performed in 2007. The sample for survey was compiled on the basis of the data from the
Registry of Economic Entities, as well as by looking at the type of the prevailing economic activity (according
to the Classification of Economic Activities in the European Communities, NACE) carried out by the
enterprise. The total number of enterprises selected was 1012. The participants of the postal questionnaire
survey were asked to return the filled out questionnaires after several weeks. When the questionnaires were
sent out to the respondents, telephone calls were made to remind them about the deadline for sending the
questionnaires back. In this way, a sufficient level of response was secured.
Manufacture of Foods Products and Beverages Sector (FB)
Meat (ME)
Grain (GR)
Fish (FI)
Animal Feeds (AF)
Fruit and Vegetables (FV)
Oils and Fats (OF)
Dairy products (DP)
Other Food Products (OFP)
Beverages (BE)
Production, processing and preserving of meat and meat products (15.1)
Production, processing and preserving of fish and fish products (15.2)
Production, processing and preserving of fruit and vegetables (15.3)
Manufacture of vegetable and animal oils and fats (15.4)
Manufacture of dairy products (15.5)
Manufacture of grain mill products, starches and starch products (15.6)
Manufacture of prepared animal feeds (15.7)
Manufacture of other food products (15.2)
Manufacture of beverages (15.2)
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Interviews were made with the respondents from the leading enterprises. The total number of enterprises
interviewed was 12. The information received was used to assess training needs in the sector of
manufacture of food products and beverages.
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2. INTERNATIONAL TRENDS
2.1. Introduction
The food and beverages industry is the largest manufacturing sector in the EU, employing almost 4 million
people. Its contribution to the EU gross domestic product amounts to around 1.8% (European Foundation for
the Improvement of Living and Working Conditions, 2004a). The industry is also characterised by a high
level of labour intensity and while traditionally it was a relatively stable sector, in recent times the overall
share of employment in the EU has dropped quite dramatically.
There was an overall decrease in jobs over the period 1999-2004 of 11.4%, from 4.4 million to 3.9 million.
The sector is faced with an unprecedented number of challenges today, with widespread restructuring in
activity occurring across the EU (European Foundation for the Improvement of Living and Working
Conditions, 2004b). These developments are primarily driven by the need to enhance competitiveness and
address local and global changes affecting the industry. The voice of the consumer and the retailer has
increasingly shaped developments in the food sector in recent years, as a result of growing concerns over
food safety and a growing demand for higher quality and more diverse foods, driven by increasing incomes
across the EU.
The low skills base in the sector, coupled with high levels of part-time working and slowness to adapt to the
changing demands of consumers are impacting negatively on the sector’s performance. Such factors, along
with increased competition from developing countries, increasing consumer demands and stricter quality
controls threaten the future viability of the sector within Europe.
This section sets out the key developments in the European food and beverages sector and related
employment, skills and training needs. Firstly, the sector is defined and the overall position of the sector is
described. The paper then goes on to assess the relationship between food and beverages and other
sectors. It then outlines the current employment situation of food and beverages in Europe before assessing
both recent economic developments in the sector and likely future developments. The implications of these
developments for future employment, skills and training are then analysed.
2.2. Overview of the sector
The food and drink manufacturing industry is very broad but can be defined as the preparation of food and
drink products ready for sale and consumption. It involves the sourcing of ingredients, processing,
preservation and packaging. It also includes product research and design, taste testing and marketing
(European Foundation for the Improvement of Living and Working Conditions, 2004a).
The EU-25 traditionally has a positive trade balance with the rest of the world in food products, beverages
and tobacco. (Eurostat, 2006a). The sector accounts for 4.9 % of total industrial exports and 3.8% of total
imports. This trade surplus is due to strong export performance in a number of subsectors, mainly
beverages, bread, sugar, confectionary and other food products and dairy products. The United States is the
largest export market for European food products, beverages and tobacco as a whole (21 % share of
exports) and a particularly significant market for beverages (42 % of all EU exports) (Eurostat, 2006a).
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Structure of Food and Beverages in Europe
Together, food products, beverages and tobacco make up 11.3% of the total value-added of EU industry.
Within the sector, the manufacture of bread, sugar, confectionery and other goods is the largest sub-sector
in terms of value-added and number of persons employed (see Table 2.1). This sub-sector accounted for
over a third (34.9 %) of the total sectoral value added in 2003. The second and third largest subsectors were
beverages and meat processing which together accounted for a further third of both sectoral value added
(individually accounting for 17.7 % and 16.0% respectively) and sectoral employment (individually
accounting for 9.7 % and 22.4% respectively).
Table 2.1. Manufacture of Food products, beverages and tobacco
Value added
(EUR mn)
Share of Industrial value
added (%)
Number of persons
employed 000s
Share of industrial
employment Food products, beverages & tobacco 192.000 11.3 4,490 12.8 Meat 30.605 1.8 1,004 2.9 Fish 3.752 0.2 129 0.4 Dairy Products 18.000 1.1 390 1.1 Bread, sugar, confectionery & other goods
66.657 3.9 1,911 5.4
Miscellaneous food products 28.000 1.7 550 1.6 Processing and preserving of fruit and vegetables
10.900 0.6 265 0.8
Manufacture of vegetable and animal oils and fats
4.000 0.2 59 0.2
Manuf. of grain mill products, starches and starch products
6.026 0.4 108 0.3
Manufacture of prepared animal feeds 7.000 0.4 130 0.4 Beverages 33.814 2.0 437 1.2 Tobacco 10.000 0.6 60 0.2 Source: Eurostat, 2006a
The food and beverage industry accounts for 14% of total turnover in the EU industry ahead of both the
automobile and chemical industries. In 2005, turnover was €836 billion, an increase of 2.6% from 2004.1
Since 2001, turnover in the EU food industry has increased by €30 billion. However, the enlargement of the
EU in 2004 is partly responsible for the high level of growth during this period (CIAA, 2006) (see Figure 2.1).
1 Turnover: measured as sales from the food and beverage industry. The figure does not include artisan production and
farmgate sales.
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Fig. 2.1. Turnover in the EU Food and Drink Industry, billion €, current prices, 2001-2005.
750
760
770
780
790
800
810
820
830
840
2001 2002 2003 2004 2005
Source: CIAA, 2006
The sector is characterised by a relatively large number of companies. In 2005, there were 282,000
companies in the European food and beverage industry (CIAA, 2003). Microfirms, small and medium sized
ones are most common, accounting for more than 95% of the companies in the industry (see Figure 2.2).
However large companies, with more than 250 employees, account for more than 50% of total production in
the food and drink industry while only accounting for less than 5% of companies in the industry.
Fig. 2.2. Production, employment and share of companies by firm size, 2000
0
10
20
30
40
50
60
70
80
90
Micro-companies
(1-9)
Smallcompanies
(10-49)
Mediumcompanies
(50-149)
Largecompanies
(+250)
Production %
No. employees %
No. companies %
Source: CIAA, 2003
France, Germany, Italy, United Kingdom and Spain together account for more than 77% of turnover in the
EU-15 food and drink industry, and this pattern is also true for most sub sectors. The new member states
account for 7% of total EU food and drink industry turnover, with Poland accounting for almost half of the
food industry turnover in the new member states (CIAA, 2006). Many western European companies acquired
food and drink companies in the New Member States before their accession in 2004 (Hamann, 2007).
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In a majority of member states, the food and drink industry features in the top 3 manufacturing industries in
terms of turnover and ranks first in a total of 10 countries. The food and drink industry thus plays a key role in
both industrial activity and employment across the EU (CIAA, 2006).
Larger companies are found to a greater extent in the North and West of Europe. The number of food and
drink processing entities in the New Member States is thus proportionally much higher than in the EU-15
(Hamann, 2007) (see Table 2.2).
Table 2.2. ES EU Food and Drink Production, added value and industry structure, 2001
Production € bn¹ Value added € bn Employees 000s Number of companies
Austria 11² 2 79² 1264²
Belgium 24² 5 62 723
Denmark 17² 4 87² 450
Finland 8² 2 34 336
France 115³ 21 392³ 3604
Germany 110 27 597 6035
Greece 5 1 43 1036²
Ireland 15 4 47 687
Italy 93 24 268 6800
Luxembourg 1 0.3 4² 226
Netherlands 39² 6 147² 855
Portugal 10² 2 104² 1916
Spain 67 14 371² 3040
Sweden 13³ 3 53 244
UK 98² 30 506² 2319
EU-15 626 145 2796 29635
Source: European Foundation for the Improvement of Living and Working Conditions, 2004a Note: ¹: current prices; ²: more than one employee; ³: more than three employees; : more than nine employees.
Table 2.3 shows the Top 10 Food and Beverage companies within the EU and highlights the scale of
turnover accounted for by these companies.
Table 2.3. Top 20 Companies in the Food and Beverage Industry in Europe
Company HQ Subsector Turnover € mn Nestlé CH Multiproducts 52,680 Unilever NL Multiproducts 22,530 Danone FR Dairy, water, biscuits 13,700 Heineken NL Beer 10,005 Cadbury Schweppes UK Soft drinks and confectionery 9,941 Diageo UK Spirits 9,858
InBev BL Beer 8,568 Arla Foods DK Dairy 6,339 Ass. British Food UK Bakery, fats, ingredients 6,288 Danish Crown DK Meat 5,964 Sovion NL Meat and gelatine 5,915 Lactalis FR Dairy 5,670
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Scottish & Newcastle UK Beer 5,552
Carlsberg DK Beer 4,837 Barilla IT Pasta and baked goods 4,675 Südzucker DE Sugar, frozen foods, ingredients 4,575 Ferrero IT Chocolate and confectionery 4,475 Friesland Coberco NL Dairy 4,449 Tate & Lyle UK Sugar and sweeteners 4,240 Kerry Group IE Ingredients 4,129
Source: Hamann, 2007
2.3. Relationship between food and beverages and other sectors
Agriculture and food retailing are the sectors that impact to the greatest extent on the development of the
food and beverages sector within Europe.
Agriculture
The Food and Beverages sector is strongly influenced by factors affecting basic agricultural production and
in particular, the impact of growing concerns about food safety. Meat producers and processors in particular
have been affected by the spread of disease in recent years. Increased demands from consumers have also
put pressure on both food producers and processors to raise their standards and this trend has been
supported by both policy and technological changes.
The Agriculture sector is itself going through a period of significant changes. These changes include
reduction in subsidies for food producers and increasing exposure to international markets, changing
weather patterns, increasing demand for western style food from emerging the economies of China, India etc
and increasing demand for alternative land use to produce biofuels and new food products.
To best meet these developments food producers, manufacturers and retailers need to work together to
ensure that quality standards are met, that customer confidence in agricultural products is maintained and
that costs and profits are distributed in such a way that ensures the viability of the all of the sectors involved.
Food Retail
The retail sector in Central and Eastern Europe has developed strongly in recent years. However, Western
European countries continue to dominate the sector within Europe. For example, five Western European
countries, France, Germany, Italy, Spain and the UK account for two-thirds of all European retail sales
(Myers, 2005).
The EU-25’s non-specialised in-store retailing sector generated EUR 800 billion of turnover in 2003, EUR
120 billion of value added, while employing 5.6 million persons. It accounted for 32.9 % of the value added
created by the retail trade and repair sector and a slightly higher proportion (34.7%) of its workforce. Short-
term statistics show that over the period 1995 to 2005 there was a steady growth in the volume of sales
index for EU-25 non-specialised in-store retailing (Eurostat, 2006b).
In recent years the emergence of larger hypermarket chains, on an international, national and regional level
has substantially increase the power of retailers. A number of leading western European supermarket and
15
hypermarket chains, including leading players such as Metro, Carrefour and Tesco are continuously
increasing their footprint within the region (CEE, 2003). Retailers now largely determine the type of food
available to consumers. Retailers also determine the source of the food on sale in their retail outlets. This
trend is likely to continue, with retailers placing increasing pressure on food and beverage manufacturers to
meet their demands. Given the large scale of these retailers’ businesses only food producers that can
provide year round, large volumes products, and have relevant IT technologies are increasingly able to do
business with these customers. While this has increased profits for large retailers, the benefits for
manufacturers in the food and beverage sector may not be as widespread (European Foundation for the
Improvement of Living and Working Conditions, 2004c).
However counter to this trend is the growing concern on the part of customers about food products being
flown around the world rather than being sourced locally along with a renewed interest in locally sourced,
straight from the farm products. This is providing new opportunities for local food suppliers who can develop
strong relationships with their local retailers or can develop direct distribution routes to consumers.
2.4. Employment in the Food and Beverage Sector
This section outlines recent employment trends and working conditions in the sector.
Recent Employment Trends
In 2005, 3,8 million people were employed in the food and beverage industry in the EU. Over 500,000 people
are working in the food and beverage industry Germany and the UK alone (Hamann, 2007). East European
countries such as Poland, Hungary, Czech Republic, Slovenia and Slovakia employ over 800,000 in the food
and beverage industry.
However since 2001 the number of employees in the EU food industry has decreased by 500,000 people.
From 2003 to 2004, employment within the sector decreased by 4.9% and by a further 1.5% between 2004
and 2005 (Hamann, 2007).
There are large regional differences within the European food industry. Turnover per employee varies
considerably as can be seen in Table 2.4. The large Northern European economies have achieved much
higher levels of productivity and given growing market pressure other economies in the south and east of
Europe will be under increasing pressure to improve productivity through increasing consolidation and
rationalization.
16
Table 2.4. Turnover, employment and Turnover per Employee in Selected Member States, 2005
Country Turnover (mn EUR)
Number of employees (’000)
Turnover/employee ('000EUR)
France 139.700 420.0 332.0 Germany 133.600 517.0 258.0
UK 102.500 462.0 222.0 Sweden 15.200 58.7 259.0 Greece 10.500 67.8 155.0 Poland 28.400 464.3 61.2 Hungary 7.500 113.4 66.0 Estonia 1,100 16.7 65.8
Source: CIAA, 2006
Increasing international competition is likely to further drive down the number of employees in the food and
beverage industry in the coming years, particularly in Eastern Europe as Eastern European food and
beverage companies attempt to increase productivity through the introduction of new production
technologies. (Hamann, 2007). As a result many traditional SMEs are expected to go out of business unless
they can become viable niche food producers.
Women account for a higher proportion of total employment in the food, beverages (and tobacco)
manufacturing sector than the average in the EU-25 industry sector as a whole (41.0 % compared with 28.7
% in 2005) (Eurostat, 2006a). Indeed, women represented at least half the workforce in this sector in the
Baltic Member States, Germany, the Czech Republic and Slovakia in 2005.
There is also a relatively high proportion of part-time workers in the European food, beverages and tobacco
manufacturing sector - an average of 11.8 % for the EU-25 compared with the average for industry as a
whole of 7.6 % (Eurostat, 2006a). This is most acute in Germany, where almost one quarter (24.6 %) of
those employed in the sector worked part-time in 2005 compared with an 11.5 % share across German
industry as a whole (Eurostat, 2006a).
There is also a slightly higher proportion of young workers (under the age of 30 years) in the food, beverages
and tobacco sector in the EU-25 compared with industry as a whole (24.3 % compared to 21.4 % in 2005
(Eurostat, 2006a). This was most apparent in Luxembourg (28.9 % compared with 14.4 %) and Sweden
(27.1 % compared with 17.1%), with other notable differences in Lithuania, Poland and the Netherlands.
Compared with many other industrial sectors, the proportion of total operating expenditure accounted for by
personnel costs in the food, beverages and tobacco sector was relatively low (an EU average of 14.3 % in
2003). This reflects the relatively high level of automation now in the sector (Eurostat, 2006a).
Working conditions
Working conditions for many food and beverage operatives are difficult. The work can often be repetitive and
physically demanding, with long periods of standing required. The work can also be hazardous, with higher
than average injury rates – burns from ovens, cuts from knives or cleavers are common and repetitive strain
injury is also a problem (Bureau of Labor Statistics, 2005). The work can also be stressful, particularly if
17
deadlines have to be met and the working environment is noisy, limiting interaction between workers. The
working environment often depends on the type of food being manufactured or processed – bakeries can be
uncomfortably hot, while meat processing plants or dairies can be cold and damp. Meat and fish processing
plants require workers to wear protection hats, gloves aprons and shoes (Bureau of Labor Statistics, 2005).
Skills, education and training
Very little formal education or training prior to being hired is required for many workers in manual labour jobs.
However, automation is becoming more common for many activities, leading to the replacement of many
unskilled workers. Many skilled workers, such as butchers, bakers and fish and poultry cutters acquire their
skills on the job through both formal and informal training programmes. The length of training can vary
significantly, with many of the higher skilled workers having to go through an apprenticeship (Bureau of
Labor Statistics, 2005).
More highly qualified workers such as food technicians and technologists, quality control and product
development personnel and marketing staff generally have third and often fourth level qualifications.
Demand for these higher level skills is expected to grow fuelled by concerns about food safety, increasing
customer demand for prepared foods and increasing competitive pressures which are driving greater
innovation within the sector.
Few studies have been carried out on qualifications needs of the sector within the EU. However, a good deal
of research has been carried out in recent years in the UK on skills levels within the sector. As the food and
beverages sector in the UK faces many of the same problems as other countries, the issues identified in the
UK can be used as a reference point for the sector throughout Europe.
The UK's food and drink industry has been found to have one of the most poorly qualified workforces in the
UK (Improve, 2005). About 19 per cent of the sectors workforce has no qualifications, compared to the
average of 11 per cent for the total UK workforce. Two-thirds of the sector‘s workforce in England do not
have a qualification higher than Level 2. Just seventeen per cent of the sector’s workforce in England is
qualified at Level 4 or higher (see Figure 2.4). One third of staff in the processing sector has no qualifications
at all.
In addition, many UK employers in the sector complain of widespread skills shortages among the more
highly skilled occupations which are having the effect of increasing operating costs and slowing down the
introduction of new working practices and products within the sector.
18
Fig. 2.4. Highest qualifications in the Food and Beverages Sector, England, 2004
0
20000
40000
60000
80000
100000
120000
No qualifications Level 2 Level 3
Source: Improve, 2005
2.5. Factors driving developments in the Food and Beverages Sector
This section looks at the key factors that are driving change in the food and beverages sector in Europe,
namely:
• Economic growth
• Population growth
• Competition for Raw materials
• Power of retailers
• Globalisation/Regionalisation
• Research & Development
• Technological Developments
• Food safety and regulation
• Consumer Demands and trends
Economic growth
The general economic outlook for Europe in the medium-term is promising. This will have a positive effect on
the development of the food and beverages sector. GDP for the euro area is forecast to grow by 2.5% in
2007 and 2.15% in 2008 (European Forecasting Network, 2007). In addition, the OECD (Organisation for
Economic Co-operation and Development) and the United Nations Agricultural Outlook for 2006-2015
anticipates strong growth within the OECD and in emerging economies for the duration of the period under
review (OECD, FAO, 2006). However, a number of factors may dampen the overall positive outlook,
including increasing oil prices and growing concerns in financial markets about debt risk, as well as growth
competition from emerging markets. Latin America and Asia are likely to experience strong growth, with
agricultural exports in Argentina and Brazil expected to exceed that of OECD countries. Globally, the food
and beverage market will continue to grow, largely due to growth in demand for western style food from the
developing countries such as India and China.
19
Population Growth
Europe’s population is expected to peak in 2022 (European Commission, 2003), but the situation varies
greatly from country to country. Italy’s population for instance, is expected to start falling early in this decade,
while Ireland’s will continue to increase until the middle of this century (European Commission, 2003).
Overall, however, changes in population structures throughout Europe are likely to lead to increasing
demand for products from Europe’s food and beverage sector.
Demographic and social changes will also have an influence on the kinds of food demanded and produced.
These include increase in the number of women working, smaller families, growth in single person
households and increasing aging of the European population (European Commission, 2003).
The food and beverage sector needs to respond positively to population trends, particularly the overall
ageing of the population and the increasing diversification in family structures. For example, an aging
population will create a growing demand for easier to open packaging and a preference for ‘soft’ foods
among those with dentition problems. In addition, the population of Europe’s biggest export market, the US,
is also set to age, with an overall decline expected.
Competition for Raw Materials
Increasing competition for raw materials from other sectors will having a growing impact on the food and
beverages sector in the future. Such competition will push up the price of the food industry’s raw materials
and place new pressures on food companies to remain competitive and profitable.
In the US up to 30 per cent of the land mass that was being used to produce food is now being diverted into
the production of corn and maize for biofuels. Such trends are pushing up feed prices for farmers. Increasing
demand for meat and dairy products from China and India is further driving up raw material prices for food
manufacturing companies in Europe. Wheat prices this year in Europe have increased by 70% as supplies
available for food manufacturing decline.
A key issue for the future will be the extent to which food producers can pass on such cost increases to
retailers and ultimately to the consumer. If such costs can not be pushed on, many food and beverage
producers will be under increasing pressure to remain competitive despite significant opportunities in new
markets. This is likely to lead to increasing consolidation within the sector and subsequent job losses.
Power of Retailers
Despite the presence of food manufacturing giants, it is food retailers who will increasingly control the food
chain with their ability to exert enormous influence over both consumers and suppliers. In 2003, the world’s
top 30 grocery retailers accounted for about one-third of retail sales worldwide and for about two-thirds in
Europe, with the leading 10 European retailers representing 40% of total retail sales (European Foundation
for the Improvement of Living and Working Conditions, 2004a). Table 2.5 shows the top 10 grocery retailers
worldwide, with Wal Mart the biggest player by far. But Europe’s own retail giants, such as Carrefour, Ahold
and Tesco, are also prominent. This trend suggests that food retailing in Europe will be characterised by
fewer, bigger players, more international in their structure, with US retailers seeking to increase their
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presence significantly. Some analysts predict that global food retailing will be dominated by as few as four to
five players in the near future (Cap Gemini Ernst and Young, 2002 in European Foundation for the
Improvement of Living and Working Conditions, 2004a).
Table 2.5. Top 10 Grocery Retailers worldwide, 2003
Company Country of Origin Net sales € bn Grocery sales € bn
Wal Mart US 227 99.2
Carrefour France 70.5 54.6
Ahold Netherlands 56.1 47.1
Kroger USA 47.6 33.5
Tesco UK 44.6 33.2
Aldi Germany 36.3 30.4
Rewe Germany 39.2 29.6
Metro Germany 53.6 27.1
ITM France 33.1 26.8
Schwarz Group Germany 29.5 24.5
Source: M+M Planet Retail, 2003, European Foundation, 2004a
Given the dominant position of these organisations they have an enormous influence over consumers and
can also dictate to farmers and food and beverage manufacturers.
Globalisation/Regionalisation
Increasing international integration of markets in recent years has meant that agricultural and food products
are increasingly traded across national borders. Within Europe, the accession of new Member States in
Eastern Europe is bringing both easier access to agricultural supplies as well as new consumers (European
Foundation for the Improvement of Living and Working Conditions, 2004a).
While oil prices have been rapidly rising over the last two to three years, over the past 30 years, energy has
been relatively cheap and has fuelled the creation of an increasingly global food chain. Relatively low oil
costs made it possible to provide all-year round foods, allows vegetables and fruits to be flown in from Africa,
and shoppers to drive to out of town supermarkets (European Foundation for the Improvement of Living and
Working Conditions, 2004a). However, the organisation of the food system appears to be reverting to the
older system of prioritisation of local produce as a result of rising energy costs.
The global food chain has also resulted in increased competition within the sector, driven primarily by food
retailers, who have enormous influence over both consumers and suppliers (European Foundation for the
Improvement of Living and Working Conditions, 2004a). Concentration in retailing has also been growing. As
outlined above, In 2003, the world’s top 30 grocery retailers accounted for about one-third of retail sales
worldwide and for about two-thirds in Europe, with the leading 10 European retailers representing 40% of
total retail sales.
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Research and Development
Investments in innovations will be crucial to maintaining the EU food and drink industry’s international
competitiveness, although, until recently, spending on R&D in the food and beverage sector was minimal. In
the EU, total industry spending on R&D reached €165 billion in 2004. The food industry only accounted for
€10 billion compared to the energy industry €21 billion and the manufacture of transport equipment at €38
billion (Hamann, 2007).
R&D spending varies between countries, with the Netherlands and Finland among the highest spenders in
the EU, with a R&D intensity of 0.50% on average. Generally, countries in the South of Europe spend less
on R&D, when compared with their Northern counterparts, due to the more fragmented nature of the sector
in Southern states, along with a stronger preference for fresh and low-processed food in the latter countries.
The R&D spending in the New Member States is very low compared to the EU-15 (Hamann, 2007).
Only around 1% to 1.5% of the food industry’s total investments are on R&D. A survey carried out in 2006
among European, American, Australian and Japanese food companies showed that European food
companies spent proportionally less on R&D than their competitors in the other countries (Hamann, 2007).
Food companies’ expenditure on R&D as a percentage of turnover is:
• Japan 1.21
• Australia 0.40
• USA 0.35
• EU-15 0.24
Expenditure on R&D also varies within the food and beverage sector. Food companies with above average
R&D spending are those producing ingredients or healthy (functional) food (see Table 2.6).
Table 2.6. R&D spending in selected Top-20 EU food and drink companies
Company R&D spending €mn
R&D in % of turnover
Sub-sector
Vilmorin Clause, FR 36 7.1 Vegetable seeds and biotech Danisco, DK 126 4.5 Ingredients and sugar Kerry, IE 125 2.8 Ingredients and dairy Numico, NL 45 2.3 Nutritional food Raisio, FI 10 2.4 Functional food and other goods CSM, NL 35 1.3 Ingredients and other foods Barilla, IT 30 1.2 Pasta and baked goods Source: CIAA, 2006
Looking to the future, survey data from 2005 shows that 48% of EU food and drink companies are not
planning to expand their R&D expenditures, and 4% are considering to close down R&D activities (Hamann,
2007). These developments will further push R&D activities into the large companies, who on the other hand,
are planning to increase R&D expenditures. From 2003 to 2005 large companies’ expenditures on R&D
increased by €10 billion and in 2005 the aggregated R&D spending of top-20 EU food and drink companies
reached €1.8 billion.
22
A range of incentives for food and beverage companies and other stakeholders to invest in R&D are
available at EU and national level. For example, EU Structural Funds, research programmes such as the Co-
operation Programme, as well as national governments’ funding streams have been made available to small,
medium and large companies to fund new and innovative technologies, sustainable production methods and
new approaches to logistics within the food and beverages sector.
Technological Developments
The key technological developments driving the sector are:
• Biotechnology
Biotechnology, including diagnostics, genetics and breeding technologies, environmental impact assessment
and risk analysis, has grown rapidly in recent years and has had a great impact on the food and beverage
sector. While this technology obviously has great potential to produce more and better food products at lower
costs, including genetically modified crops and animals, there are real fears about the effects of the
technology on animal and human health and on the environment. The food industry needs to develop the
competence to both harness and regulate this new technology. It also needs to ensure better communication
between the scientific community and consumers.
• Developments in Information and communications technology (ICT)
Developments in new technology are having enormous effects on the food industry. They have completely
changed the way farmers, food processors and retailers and customers interact. Increasingly it is only food
producers that have an ICT capability that retailers will work with. IT also allows firms in the sector to capture
a growing range of market information and intelligence. Niche and specialist suppliers are increasingly
selling their products direct to customers on the internet. Information technology has also changed the way
quality control is ensured within the sector. Increasingly modelling of changing consumer attitudes and
purchasing behaviour will be used to help firms to responsive rapidly to changing demand.
• Production and processing technologies and systems
Improved production and processing technologies (including ingredient technology; food microstructure,
flavour and quality; minimal processing technologies; pathogen control systems, including risk analysis
methodologies; food irradiation; high pressure technology and robotics) are increasing the ability of the
sector to meet customer demands for guaranteed food safety, assured freshness and quality.
The rate at which these technologies are introduced and the extent to which they are diffused throughout the
sector will play a key role in determining the future competitiveness of the European food and beverages
sector.
Food safety and Regulation
Safety and environmental concerns have increasingly shaped the farming and food system in Europe and
have led to EU Directives on food safety. Crises over BSE, foot and mouth disease, dioxin-contaminated
animal feed, as well as the GM food debate, have put the spotlight on food safety and the impact of food and
farming on the environment as never before. The Belgian dioxin scandal, in particular, prompted the
23
European Commission to adopt a White Paper on food safety covering all aspects of food products from
‘farm to table’. The White Paper led to a landmark General Food Law Regulation in 2002, which set out the
general principles of food law, and provided the legal basis for the creation of the European Food Safety
Authority (EFSA). From the food and drink manufacturing industry’s perspective, food safety is crucial in
building consumer confidence in its products. Above all, ‘the industry needs transparent, predictable, efficient
and responsive decision-making procedures to encourage innovation’ (CIAA, 2001, in European Foundation
for the Improvement of Living and Working Conditions, 2004a).
Consumer Demands and Trends
Arguably the most important driver of change is trends in consumer demand. The factors that influence
consumer demand for food and drink products are complex:
• demographic and socio-economic change;
• busier lifestyles;
• health, nutrition and safety concerns;
• environmental and ethical concerns;
• migration and demand for ‘ethnic foods’.
The growing recognition of the value of a well-balanced diet in order to stay healthy has perhaps been
central to calls for healthy foods, with many food producers cashing in, producing and promoting health or
functional foods intended to give specific medical or physiological benefits, e.g. spreads that reduce
cholesterol or pro-biotic yoghurt drinks.
A 2002 status report on nutrition in Europe recognised that good nutrition can help to reduce the prevalence
of many common diseases, such as cardiovascular disease, cancer, diabetes and obesity (European
Commission, 2002). Dietary habits and intakes depend on individual choices (cultural influences, food
preferences) as well as socio-economic and environmental factors (affordability and availability of food
products, quality and safety of products, etc). The EC Treaty, the White Paper on food safety, Community
action programmes in public health, all illustrate the European Union’s responsibility for, and commitment to,
improving nutrition and health. However, there is growing frustration among health professionals when it
comes to what people are eating. For instance, the UK’s Food and health action plan (Department of Health,
2003, in European Foundation for the Improvement of Living and Working Conditions, 2004a) found that:
• advice on healthy eating is consistent and well established based on sound evidence;
• few people currently follow Government advice for a healthy diet;
• most people eat more saturated fat, salt and sugar and less fruit and vegetables than experts
recommend;
• the diet of people on low incomes is an area of particular concern.
If diet-related diseases continue to grow, health professionals may be successful in persuading policymakers
that the traditional health education approach is insufficient. Among the ideas that are gaining currency are
linking social insurance contributions to body mass index in Austria and a tax on fatty foods in the UK
(European Foundation for the Improvement of Living and Working Conditions, 2004a).
24
On the other side of the equation is the reduction in the available of time available to Europeans to prepare a
healthy meal, resulting in a greater demand for ‘convenience foods’. The Kerry Group estimates that as
much as 15% of all food consumed daily in the US is now eaten in the car, a phenomenon known as
dashboard dining (Feeney, 2002, in European Foundation for the Improvement of Living and Working
Conditions, 2004a). The increase in the consumption of convenience foods has also resulted from food
producers targeting snack foods at teens and ‘tweens’. While some European countries may be slower to
follow these trends, nevertheless, greater time pressure on many people’s lives is increasing the demand for
convenience foods and ready meals, snacking and snatched meals, and eating out (European Foundation
for the Improvement of Living and Working Conditions, 2004a).
As a result of growing concerns about rising obesity levels and genetically modified foods, the ‘diet’ food
industry and the organics sub-sector are expected to show particularly strong growth. The diet-related food
and drink market is expected to grow by 3.1% in Europe and 3.6% in the US between 2006 and 2012 (just-
food, 2006). In global terms, the United States of America, United Kingdom and Germany are going to be the
key geographical areas of growth for the organic food market. Germany’s organic food market will accelerate
with the highest annual growth rate of 12% for the five-year period 2007-2011 (China CCM, 2007).
In addition, the beverages subsector is also expected to show strong growth in Europe, particularly for soft
drinks and bottled water, although demand for both beer and coffee within Western Europe is likely to
decrease (Canadean, 2007).
While the food and beverage sector is likely to continue to grow in the medium term, due to increased
demand driven by higher levels of disposable incomes of consumers, the industry needs to take into account
a number of challenges that lie ahead, namely, rising oil prices, greater uncertainty in global markets, the
diversifying needs of consumers and the relinquishing influence manufacturers have over the goods they
produce. A better understanding of these issues by company-owners and managers is required for the
sector to continue to be successful. For the European food and beverages industry to thrive in the future it
needs to become increasingly innovative, market-led and consumer-orientated. It also needs to ensure that
the image of the sector is positive and that Europeans companies are seen as dynamic, attractive to existing
and potential employees and valued by the wider public. In particular the sector needs high achieving and
innovative senior management and technical staff to drive the kind of positive change required to ensure
international competitiveness and a positive customer outlook. Table 2.7 outlines the strengths and
weaknesses of the sector, as well as the opportunities and threats it faces.
Table 2.7. SWOT Analysis of the Food and Beverages Sector
Strengths
• Food and beverages is a traditionally strong sector in the EU
• New developments in technology • Growth in niche markets such as natural foods
and convenience foods to meet consumer demands
• Positive working relationship with agricultural sector
• Developed quality/assurance systems
Weaknesses
• Weak investment in R&D compared to competitors • Increasing food scares (BSE, Avian flu) • Difficulties in recruitment and retention of high calibre
staff • Low level of investment in staff development • Lack of strategic management and development
skills
25
Opportunities
• New technological innovations • Expected growth in productivity • Consumer demands and quality controls likely
to encourage higher standards • Opportunities for growth as incomes rise in
Central and Eastern European countries • Further development of specialised, niche
markets • Increasing globalisation
Threats
• Strength of retail sector • WTO Agreements likely to lead to increased
exposure to international competition • Potential decline in demand for some products within
the domestic market • Rising oil prices likely to reduce profit margins • Increasing competition for land to grow bio fuels and
other food products resulting in increasing grain-based food prices
The European Monitoring Centre on Change (2006) indicates the role that the various stakeholders involved
in the sector need to play (see Table 2.8) if the European food and beverages sector is to develop and
compete effectively with manufacturers from newly emerging markets, including Brazil and China. It
highlights how European manufacturers need to work in partnership, with clearly defined roles and
responsibilities if they are to be successful.
Table 2.8. Roles and Responsibilities of Relevant Stakeholders for the Development of the Food and Beverage Sector
Player Action Multinational companies
• take the lead in the innovation process
• self-regulate on the issue of labelling through the creation of ‘platforms’, bringing together different actors
SMEs • exploit expert potential of niche products
• address succession crises
• self regulate on the issue of labelling through the creation of ‘platforms’, bringing together different actors
Trade unions • support and encourage innovation culture in companies
Regional authorities • support SMEs in realising export potential
• encourage networking among SMEs and between big players and SMEs
• facilitate access to ERDF and ESF
• organise information events addressing the succession issue in SMEs
Governments • encourage innovative culture and entrepreneurial spirit through the educational system
• explore further present eating habits taking into account lifestyle changes
• improve teaching about nutrition, food preparation and a healthy lifestyle in schools
Source: European Monitoring Centre on Change, 2006
2.6. Impact of these developments on employment and skill needs
In this section of the report we highlight how the developments outlined above will impact on employment
and related skill and training needs in the future.
Employment
Employment in the food and beverage sector in Europe is likely to continue to fall largely as a result of
increasing productivity. This will result in particular in a drop in employment opportunities for unskilled and
semi-skilled workers. (c.f. Simpson and Stalker, 2004).
26
As was shown earlier, many of those working in the food and beverages sector are unskilled or semi-skilled,
traditionally requiring little training to carry out their work effectively and efficiently. However in the future
additional training will be needed to ensure that such employees have the skills to comply with new
regulations, work with new technology and produce the type of goods that meet the increasingly diverse
needs of consumers.
Given the wide range of complex factors impacting on the competitiveness of the European food and
beverages sector it is particularly important that European companies have the technical, professional and
management skills to allow such companies to anticipate and adapt to changing demand and market
pressures, and to drive innovation.
Skill Needs
A recent study on the food processing sector in Ireland by Price Waterhouse Cooper (PWC) indicates what
the key skills needed in the sector in the future will be. (Table 2.9)
Table 2.9. Future skill needs in the European food manufacturing sector
Skill Sets Key Skills Trends in quantity and quality
of skill needs
R&D/ New product development (NPD) and Quality control skills
Food technology/science skills NPD commercialisation skills Product research skills Lab Technician skills New packaging design skills Quality control/auditing skills HACCP skills Sensory analysis/product tasting skills
Increasing numbers will be required due to growing demand for new product innovation with a growing demand for advanced technical competencies and a strong commercial focus
Processing skills Product management skills Production supervisory skills People management skills Operative skills (Existing technology, new processing and craft workers) Quality control skills Food safety skills Food hygiene skills World class manufacturing skills Total quality management skills Basic numeracy/literacy skills Production management skills
Reduced numbers but need for increasing efficiency and for greater competency in food quality and safety and in supervisory and production and people management skills.
Sales and marketing skills
Marketing skills Sales skills Branding skills Market research skills Market development skills Customer interface skills Language skills Negotiation skills Category management skills Strategic account management skills
Reducing numbers as retailers consolidate but need for stronger customer focus and technical appreciation of foodstuffs among sales and marketing staff
Support skills General management skills Finance skills Human resourcel skills Business planning skills IT skills Engineering skills
Reducing numbers due to rationalisation with a growing demand for people and change management skills
27
Training skills Change management skills Procurement skills Regulatory skills
Source: PWC, 2002
The PWC study also summarised the key skills gaps in that exist the food and beverages industry. (Table
2.10.)
Table 2.10. Key skills gaps in the food and beverages sector
Skill Sets Key Skill Needs
R&D/NPD/Quality Control Skills
Skills needed to commercialise NPDs Product Research/NPD Skills Operative Skills (existing technology) Operative Skills (new tech/process) Operative Skills (craft workers) Production Supervisory Skills
Processing Skills Operative Skills (existing technology) Operative Skills (new tech/process) Production Supervisory Skills Operative Skills (craft workers)
Sales and Marketing Skills Marketing Skills Language Skills Negotiation Skills Category Management Skills Product Research/NPD Skills
Support Skills Training Skills IT Skills (particularly those underpinning supply chain management and logistics processes)
Source: PWC, 2002
An Australian study also highlights the extent to which the key drivers of change will impact on skills within
each of the key sub-sectors. (Table 2.11)
Table 2.11. Impact of drivers of Change on skills in Key subsectors in the Food
Drivers Food Meat Seafood
Worker attraction and retention HIGH HIGH HIGH
Consumer and Customer demands MEDIUM MEDIUM HIGH
Competitiveness and productivity
demands
HIGH HIGH FAIR
Business compliance HIGH HIGH HIGH
Innovation HIGH MEDIUM MEDIUM
Globalisation HIGH HIGH HIGH
Source: Australian Agrifood Industry Skills Council, 2005
The Australian Report also highlights the relationship between the different drivers of change and how a
virtuous circle of positive development can be achieved.
28
Fig. 2.5. Relationship between drivers of change within the food and beverage sector-creating a virtuous circle
Source: Australian Agrifood Industry Skills Council, 2005
A key way of addressing these interrelated issues is through the development of a strong partnership
approach between the industry and the educational sector to support the development of advanced process
and product development R&D and management skills and to ensure that innovations are widely known and
disseminated across the sector.
Skill Shortages
Research carried out on the food and beverage sector in the UK in recent years indicates the extent of skills
gaps in the sector. As can be seen from Table 2.12 below, the skills that are seen to be deficient also tend to
be those that are central to performance of the job. For example, 52 per cent of establishments with skill
Skills Quality training & recognition; E-learning; Attraction & retention strategies; Flexible training strategies; Reviewed training funding model; Recognition of skills; Aging workforce.
Industry Image Pathways; Attraction & retention; Industry promotion Skills passports (Portability & multiskilling); Working conditions; Sharing ‘best practice’.
Business Compliance Environmental Management; OHS; Insurance Licensing; Food safety.
Business Management Consumer expectations; HR; Small business management; Investment in R&D; Leadership; Production costs; Globalisation; Product marketing; Supply chain; Networking; Innovation.
People
29
gaps amongst skilled trade occupations cite technical and practical skills as lacking and 54 per cent of
establishments with skill gaps amongst managers cite management skills as lacking (Improve, 2004).
Table 2.12. Extent of Skills Gaps reported by Food and Beverage Manufacturers (%)
Source: Improve, 2004
These findings indicate that sector-wide training for unskilled, semi-skilled workers, technical and
professional staff as well as managers, is needed to ensure that the sector remains viable. In addition, the
sector as a whole needs to become more ‘employee-friendly’, with efforts made to improve working
conditions, training opportunities and career paths, in order to increase the attractiveness of the sector to
potential employees.
A recent survey carried out among employers in the food and beverage sector in the UK indicated that skills
shortages among skilled operatives and professionals (Improve, 2005), are largely a result of unfavourable
working conditions. Further research carried out in Northern Ireland identified such conditions as:
• Unsociable hours;
• Need to work holidays;
• Can’t be a clock-watcher- you can’t leave work to complete the next day;
• Doesn’t suit people with young children or older dependents;
• Boredom in some routine work;
• Seen as a ‘white coat’ industry; and
• Often a cold and wet place to work with a bad smell, also heavy handling issues.
(Market Research Northern Ireland, 2006)
Training Needs
The dominance of SMEs in the food and beverage sector in Europe has resulted in reluctance on the part of
many firms to invest in training and skills development. Such firms view investment in training as more likely
Managers Admin Staff Skilled trades
Sales Machine operatives
Elementary operatives
Customer Handling Skills 42 40 49 66 32 29
Communication Skills 64 51 59 59 60 47
Problem Solving Skills 33 42 39 47 54 42
Team Working Skills 55 42 51 52 61 45
Technical and Practical Skills 28 33 52 43 45 35
Management Skills 54 37 39 28 11 40
General IT user skills 39 48 13 23 4 4
Numeracy Skills 15 23 26 31 23 19
Literacy Skills 20 21 31 20 14 25
IT professional skills 20 32 12 11 4 1
Foreign Language skills 4 4 6 4 9 4
Personal attributes 1 1 * * - 3
No particular skills difficulties 9 24 12 8 1 3
30
to reap benefits in the long term rather than the short term and as likely to result in demands for higher
wages. Given the demand to keep prices and thus costs low, maintaining the ‘status quo’ is often seen
therefore as the easier option.
The National Employer Survey in England identified some of the reasons manufacturers failed to put in place
adequate training for their staff. As can be seen in Table 2.13 factors related to the expense of training,
including lack of cover and funding for training. However, the primary reason cited, ‘lack of time for training’
indicates a lack of awareness about the need for, and the benefits of, training staff, in terms of future
business development, quality improvement and efficiency.
Table 2.13. Barriers to developing/maintaining a proficient team of staff
Multiple response %
Lack of time for training 58 Lack of cover for training 50 Lack of funding for training 49 Lack of suitable courses in the area 26 Unwillingness of staff to undertake training 25 Lack of suitable courses generally 22
High staff turnover 17 Other 2 Source: Improve, 2004
Nevertheless, improved working conditions, better pay and more structured career paths are required in the
future if the industry is to remain competitive and innovative. Training is therefore required both to react to
changing demands (e.g. new regulations) and to support a proactive and strategic response to changing
market and technological requirements and potential business opportunities.
The European Monitoring Centre on Change (2006) suggests that “support should be organised close to
manufacturers, i.e. at regional level. Regional authorities are best aware of the strengths and competitive
advantages of companies in their region. They can help bringing players together. Cooperation and
networking among business, for example through the establishment of consortia among SMEs in need of
financial support and advice for exporting, would help share the burden. Economic development agencies
have a role to play here as well. Regional authorities should also facilitate access to European Structural
Funds (ERDF and ESF) and other funding opportunities”.
2.7. Summary
The food and beverage sector is the largest manufacturing sector in Europe and remains highly important as
a source of employment and output as well as being a source of well being for its citizens. However,
increased competition, poor working conditions and more stringent regulations have had an impact on the
viability of the sector and have led to difficulties in the recruitment and retention of staff. While prospects for
the sector in the short to medium term are good, a number of threats highlight the need for investment in the
training and development of staff as well as for increased support for product development and innovation,
and for business development, across the sector from large multinationals to SMEs.
31
To effectively meet these challenges the European food and beverages sector needs to recognise that the
environment within which it will increasingly operate will be characterised by:
• A greater degree of market liberalisation
• Higher levels of food regulation
• Greater intensity of competition
• More consolidation across all sectors
• Market-led rather than production-driven
• Increasing sophistication of both trade buyers and consumers
• High levels of technology
• More demanding and greater fragmentation among consumers
(PWC, 2002)
To respond effectively to these changes managerial staff, skilled operatives and professionals, R&D and
technical staff are all in need of adequate training and support. The role played by regional authorities and
national training bodies in helping companies to respond to these pressures will be vital for the development
of the sector as a whole throughout Europe.
32
3. STATISTICAL CHARACTERISTICS OF THE SECTOR
3.1. Introduction
This chapter provides a short overview of the sector of manufacture of food products and beverages. It
covers the main aspects related to the FB sector enterprises, employment and performance indicators. The
analysis was performed on the basis of statistical data specially developed for the study. In addition, the
analysis used some secondary data, including studies, surveys and other publicly available information
about the FB sector and the Lithuanian economic development. Admittedly, in certain cases (due to little
statistics) conclusions and summaries are provided only on sector level.
3.2. Briefly about the Sector of Manufacture of Food Products and Beverages
The sector of manufacture of food products and beverages is different from the other sectors of
manufacturing because of the huge direct impact of consumers upon its production. Moreover, food products
are difficult (if ever possible) to patent; new products stay in the market for a short period of time (until
analogous products are offered) and therefore their value added is small as compared to the other products
of manufacturing. The sector is subject to regulation by the Lithuanian Agricultural and Food Products
Market Regulation Agency. The sector is closely linked to the sector of agriculture, hunting, forestry and
fishing, which is the supplier of raw material, and the retail trade sector.
On the basis of the information available, internal and external factors affecting the future development of the
FB sector include the following:
Internal factors:
• renewal and investment;
• experience in searching for new markets, niches and partners;
• increasing competition among exporters and decreasing dependency on one market;
• labour force structural and qualitative changes;
• old technologies and poor work organisation;
• insufficient pace of creation and implementation of innovations;
• insufficiently effective activities of small and medium-sized businesses;
• change in household consumption patterns;
External factors:
• presence of a favourable market;
• market globalisation;
• foreign direct investment promoting knowledge and developing export channels;
• transfer of production to the countries with smaller labour costs;
• unfavourable market trends in energy resources.
The SWOT analysis of the Lithuanian sector of manufacture of food products and beverages is provided in
Annex 1.
33
3.3. Enterprises
Distribution of enterprises by sub-sectors and size. According to preliminary data of 2007, the Lithuanian
sector of manufacture of food products and beverages had 1,094 enterprises. Out of that number, 47 per
cent of enterprises specialised in the production of food products, 23 per cent focused on production,
processing and preservation of meat and meat products, whereas 11 per cent were involved in the
production of beverages. The remaining enterprises (constituting one fifth of the total number) carried out
activities in the other six sub-sectors. The sector was predominated by very small (having up to 9
employees) and small (from 10 to 49 employees) enterprises, making up 80 per cent of the total number of
the sector enterprises. The same trend was observed on the European scale. The Lithuanian structure of the
FB sector and the number of enterprises operating in it is presented in Table 3.1.
Table 3.1. Structure of the Sector of Manufacture of Food Products and Beverages, 2007
Enterprises by Number of Employees Total Activities under NACE
Up to 9 From 10 to 49
From 50 to 249
From 250
Production, processing and preserving of meat and meat products (15.1) 119 80 36 11 246
Production, processing and preserving of fish and fish products (15.2) 37 14 11 5 67
Production, processing and preserving of fruit, berries and vegetables (15.3) 20 10 5 - 35
Manufacture of vegetable and animal oils and fats (15.4) 4 4 - - 8
Manufacture of dairy products (15.5) 11 8 7 6 32
Manufacture of grain mill products, starches and starch products (15.6) 31 21 6 1 59
Manufacture of prepared animal feeds (15.7) 6 6 6 0 18
Manufacture of other food products (15.8) 243 179 81 11 514
Manufacture of beverages (15.9) 59 35 15 6 115
Total 530 357 167 40 1094
Change in the number of enterprises in the sector of manufacture of food products and beverages. From
2003 to 2007, the number of enterprises in the sector of manufacture of food products and beverages
decreased by almost one third. Such reduction is observed in almost all the sub-sectors (see Table 3.2).
Table 3.2. Change in Number of Enterprises in the Sector of Manufacture of Food Products and Beverages
Number of Enterprises Sub-sector
2003 2004 2005 2006 Forecast for 2007
Meat (15.1) 356 345 270 265 246
Fish (15.2) 89 77 71 70 67
Fruit and vegetables (15.3) 36 45 42 35 35
Oils and fats (15.4) 13 12 9 8 8
Diary products (15.5) 54 38 34 32 32
Grain (15.6) 93 86 71 66 59
Feeds (15.7) 26 22 20 19 18
Other products (15.8) 707 644 598 554 514
Beverages (15.9) 139 131 127 121 115
Total 1513 1395 1242 1170 1094
34
During the period under review, the sub-sectors of meat, other products and diary products experienced the
fastest reduction in the number of very small (up to 9 employees) and small (from 10 to 49 employees)
enterprises. The number of big enterprises (250 and more employees) decreased in the sub-sectors of dairy
products and animal feeds. In contrast, the number of these enterprises went up in the sub-sectors of meat,
fish and other products.
Geographical distribution of enterprises in Lithuania. Approximately 40 per cent of the overall number of
sector enterprises operate Kaunas and Vilnius counties. The same share of enterprises is in Klaipeda,
Panevezys and Siauliai counties. The distribution of the sector companies in other counties range from 3 to 6
per cent (Fig. 3.1).
Fig. 3.1. Geographical Distribution of Enterprises operating in the Sector of Manufacture of Food Products and Beverages by
Counties in 2007
3%
6%
13%
4% 4%5%
12%
24%
12%
17%
0%
5%
10%
15%
20%
25%
Alytus
Kauna
s
Klaiped
a
Marijampo
le
Panev
ezys
Siaulia
i
Taurag
eTels
iai
Utena
Vilnius
3.4. Employment in the Sector
Distribution of employees by sub-sectors. According to the preliminary of 2007, the sector employed 51,700
people. They account for more than 3 per cent of the total number of employees in the overall Lithuanian
economy. With regard to the number of employees, the FB sector is one of the richest among the branches
of manufacturing (constituting more than 19 per cent of all the employed in manufacturing). While looking at
the number of staff in sub-sectors, the lion’s share is among manufacturers of other food products
(constituting about 35 per cent of all the sector employees). Admittedly, the manufacture of other food
products has the highest number of employees in the other EU member states. During the period of five
years (2003 – 2007), the number of workers in the FB sector was fluctuating. From 2003 to 2005, their
number dropped and from 2005 to 2007 it was increasing yet did not reached the level of 2003 (see Table
3.3). The situation in the EU is as follows: in 2003 and 2004 the number of staff decreased by 4.9 per cent
and in 2005, by 1.5 per cent. During the reporting period, the number of employees in very small and small
enterprises dropped in Lithuania. The number of the employed was going up in large enterprises operating in
the sub-sectors of meat, fish, grain and other food products, whereas large companies working in the sub-
sectors of dairy products, animal feeds and beverages experienced a loss of staff. Noteworthy, the number
of employees in large meat sub-sector enterprises doubled during the period under review (Fig. 3.2).
35
Table 3.3. Change in the Number of Employees in the Sector of Manufacture of Food Products and Beverages
Number of Employees Sub-sector
2003 2004 2005 2006 2007 Forecast
Meat (15.1) 9596 9069 9134 9186 9983
Fish (15.2) 4114 4104 4071 4829 4742
Fruit and vegetables (15.3) 694 704 832 752 854
Oils and fats (15.4) 161 99 84 92 89
Diary products (15.5) 11844 10207 9708 9806 9486
Grain (15.6) 1720 1549 1564 1132 1265
Feeds (15.7) 1923 1840 1914 1851 1636
Other products (15.8) 18522 18401 16682 17851 18342
Beverages (15.9) 5758 6327 5837 5609 5258
Total 54332 52300 49826 51108 51655
Fig. 3.2. Change in the Number of Employees by Size of Enterprise in the Most Numerous FB Sub-Sectors
ME DP
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
2003 2004 2005 2006 2007 2003 2004 2005 2006 2007
up to 9 employees 10-49 employees 50-249 employees 250 employees and more
OFP BE
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
2003 2004 2005 2006 2007 2003 2004 2005 2006 2007
up to 9 employees 10-49 employees 50-249 employees 250 employees and more
36
Supply and demand for employees2 (unemployed and vacant posts). From 2003 to 2006, the number of the
registered employed in Lithuania went down. The supply of labour was decreasing in all the sub-sectors of
manufacture of food products and beverages. The preliminary data of 2007 show the same trend.
Registered vacancies in the FB sectors account for 4 per cent of the total demand of labour in Lithuania. The
biggest share of demand is for vacant posts created by the ME and OFP sub-sectors. In 2003 – 2006, the
demand for labour decreased. The biggest reduction was seen in the FI and FV sub-sectors and the biggest
growth was registered in the GR and AF sub-sectors.
Fig. 3.3. Number of Unemployed and Vacant Posts in the Sub-sectors of Meat and Other Food Products
ME OFP
0
500
1000
1500
2000
2500
3000
3500
4000
2003 2004 2005 2006 2007forecast
2003 2004 2005 2006 2007forecast
Number of unemployed Number of vacancies
According to the preliminary data of 2007, the tension level (the ratio between the number of vacancies and
the number of the unemployed) in the sector of manufacture of food products and beverages was less than 1
and therefore smaller than the relevant national indicator (standing at accordingly 0.8 and 0.9). This means
that the quantitative supply of employees in the sector is lightly exceeding the demand for them. Noteworthy,
the tension level among different sub-sectors is not the same. For example, supply is in conformity with
demand in the beverages sub-sector, whereas in the sub-sector of animal feeds, the level of supply is
smaller than demand and in the sub-sectors of meat, diary products, fish and others the level of supply
surpasses demand. (See Fig. 3.4).
2 Source: data of the Lithuanian Labour Exchange specially developed for the study
37
Fig. 3.4. Tension Level (Ratio between Occupation Posts and Number of Unemployed) in Sub-Sectors of Meat, Animal Feed, Other
Food Products and Beverages
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2004 2005 2006 2007 forecast
Nationally
ME
AF
OFP
BE
Analysis of the tension level trends by groups of occupation posts shows supply exceeding demand in the
groups of professionals, associate professionals, technicians, manufacturers and other workers, yet with
regard to separate occupation posts, the trend is quite the reverse. For example, in the group of
manufacturers, the demand for ‘plant and machine operators’ and ‘supervisors of equipment’ surpasses
supply three times, whereas in the group of professionals, the number of vacancies among ‘IT specialists’
and ‘quality assurance specialists’ exceeds the number of the registered unemployed 6 and 4 times
accordingly. The demand for administrative staff exceeds the supply for them. The biggest shortage is of ‘the
employees of personnel division’.
Work permits issued to foreigners in Lithuania3. According to the data we have, the number of work permits
issued to foreigners in Lithuania is constantly increasing. From 2005 to 2007, the number grew 3.5 times.
This trend is characteristic of all the national economic sectors, including the sector of manufacture of food
products and beverages. According to the preliminary data of 2007, work permits issued to foreigners for
employment in the FB sector was 316, i.e. two times more than in the year 2005. Out of that number,
qualified workers accounted for as much as 90 per cent, which is 10 per cent more than in 2005.
3.5. Performance Indicators
Turnover. According to official data, the turnover in the FB sector has gone up in the recent five years (see
Table 3.4). According to the preliminary data of 2007, the biggest turnover was in the sub-sector of dairy
products and other food products, followed by the meat and beverages sub-sector. Admittedly, from 2003 to
2004 the sector turnover was shrinking to go up again since 2005. During the period under review, the
biggest growth in turnover was experienced in the sub-sectors of fruit and vegetables, meat, fish and
beverages. The FB sub-sectors differ in terms of growth/reduction in turnover experienced by them. In 2003-
2007, the turnover of enterprises operating in the sub-sectors of meat, fruit and vegetables was constantly
3 Source: data of the Lithuanian Labour Exchange specially developed for the study
38
increasing. The annual growth of turnover in the sub-sectors of grain and fats and oils is replaced by the
reduction of it. Since 2005, the majority of the sector enterprises have been enjoying the turnover growth.
Table 3.4. Change of Turnover in the Sector of Manufacture of Food Products and Beverages (thous. LTL)
Turnover Sub-sector
2003 2004 2005 2006 2007 forecast
Meat (15.1) 793425 833727 887272 1125110 1432547
Fish (15.2) 458478 455517 454329 588751 686462
Fruit and vegetables (15.3)
47433 87238 101924 102804 103445
Oils and fats (15.4) 30825 44363 30247 33916 29546
Diary products (15.5) 1619401 1338123 1329619 1513506 1758630
Grain (15.6) 205118 156621 173836 168990 216998
Feeds (15.7) 569182 613531 645101 643398 602069
Other products (15.8) 1550674 1290067 1262495 1508418 1679167
Beverages (15.9) 788646 1013732 1003327 1051177 1159319
Total 6063183 5832919 5888150 6736070 7668183
Productivity (Turnover/Number of Employees). Table 3.5 shows that during the period of 2003-2007, the
level of productivity grew in all the FB sub-sectors. The biggest growth was observed in the sub-sectors of
fruit and vegetables, meat, oils and fats, and beverages.
Table 3.5. Productivity (Turnover/Number of Employees) Change in the Sector of Manufacture of Food Products and Beverage
(thous. LTL)
Productivity (Turnover/Number of Employees) Change (thous. LTL) Sub-sector
2003 2004 2005 2006 2007 forecast
Meat (15.1) 83 92 97 122 143
Fish (15.2) 111 111 112 122 145
Fruit and vegetables (15.3)
68 124 123 137 121
Oils and fats (15.4) 191 448 360 369 332
Diary products (15.5) 137 131 137 154 185
Grain (15.6) 119 101 111 149 172
Feeds (15.7) 296 333 337 348 368
Other products (15.8) 84 70 76 85 92
Beverages (15.9) 137 160 172 187 220
Earnings. The biggest average monthly gross 4 earnings were offered in the sub-sectors of diary products,
animal feeds, beverages, and fruit and vegetables (Fig. 3.5). Although earnings were going up in all the sub-
sectors, they still remained lower than the national average. As compared to the other branches of
manufacture, earnings offered to the FB sector staff are among the lowest. According to preliminary data,
4 pre-tax earnings.
39
smaller earnings are only in the groups of ‘manufacture of textile and textile products’, ‘manufacture of
leather and leather products’ and ‘manufacture of wood and wood products’.
Fig. 3.5. Change in Average Gross Monthly Earnings in Sub-Sectors of Beverages, Animal Feeds, Dairy Products and Fruit and
Vegetables
0
500
1000
1500
2000
2500
2003 2004 2005 2006 2007 forecast
FV
DP
AF
BE
Country
Created gross value added (further referred to as the GVA). According to the data we have, the value-added
created by the sector went up my slightly more than 1.5 times during the five year period. According to the
preliminary data of 2007, it accounted for 3.7 per cent of the national GVA. Although with regard to the GVA,
the sector of manufacture of food products and beverages is the leading branch of manufacturing, yet its
production rate (value-added per hour of actual work), albeit exceeding the national average, is lagging
behind many other branches.
Export and import. On the national level, the foreign trade balance was negative and from 2003 to 2006 it
increased 1.8 times. Although the volume of import in the FB sector was increasing faster than that of export,
the foreign trade balance remained positive for several years in succession. With regard to the volume of
export, the FB sector is one the leaders among the branches of manufacturing. Generally speaking, the FB
sector is sufficiently competitive on the international scale.
3.6. Development Trends
Changes in the number of employees operating in the FB sector, the number of staff employed by them, the
rate of productivity, turnover, earnings, the share of GVA and future forecasts are provided in Annex 2.
The forecasts were made by using regressive and autoregressive models, examining the overall trends of
development of the Lithuanian economy and historical statistics. The findings obtained give ground for
optimistic forecasts, i.e. that he turnover in the majority of sector enterprises will continue to grow (with the
exception of oils, fats and grain) but the rate of growth is likely to slow down. One of the reasons for that is
insufficient labour force resources. The volume of production should be increased by resorting to some other
sources, for example, increasing the labour productivity, which is currently quite low, and applying new
technologies. The average monthly gross earnings should be growing, offering more attractive employment
conditions in the sector enterprises.
40
3.7. Summary
• The sector of manufacture of food products and beverages is different from the other sectors of
manufacturing because of the huge direct impact of consumers upon its production. New products
stay in the market for a short period of time (until analogous products are offered) and therefore their
value added is small as compared to the other products of manufacturing.
• In the future, the sector of manufacture of food products and beverages will be subject to the
following internal factors: renewal and investment; experience in searching for new markets, niches
and partners; increasing competition among exporters and decreasing dependency on one market;
labour force structural and qualitative changes; old technologies and poor work organisation;
insufficient pace of creation and implementation of innovations; insufficiently effective activities of
small and medium-sized businesses; and change in household consumption patterns.
• The sector development will depend on the following external factors: presence of a favourable
market; market globalisation; foreign direct investment promoting knowledge and developing export
channels; transfer of production to the countries with smaller labour costs; unfavourable market
trends in energy resources.
• According to preliminary data of 2007, the Lithuanian sector of manufacture of food products and
beverages had 1,094 enterprises. Out of that number, 47 per cent of enterprises specialised in the
production of food products, 23 per cent focused on production, processing and preservation of meat
and meat products, whereas 11 per cent were involved in the production of beverages. The
remaining enterprises (constituting one fifth of the total number) carried out activities in the other six
sub-sectors. The sector was predominated by very small (having up to 9 employees) and small (from
10 to 49 employees) enterprises, making up 80 per cent of the total number of the sector
enterprises.
• From 2003 to 2007, the number of enterprises in the sector of manufacture of food products and
beverages decreased by almost one third.
• Approximately 40 per cent of the overall number of sector enterprises operate Kaunas and Vilnius
counties. The same share of enterprises is in Klaipeda, Panevezys and Siauliai counties.
• According to the preliminary of 2007, the sector employed 51,700 people. They account for more
than 3 per cent of the total number of employees in the overall Lithuanian economy. Employees in
the sub-sectors of other food products, meat and diary products made up 70 per cent of the total
number of the sector employees. During the period of five years (in 2003 – 2007) the number of staff
in very small and small enterprises was dropping. The number of the employed was going up in
large enterprises operating in the sub-sectors of meat, fish, grain and other food products, whereas
large companies working in the sub-sectors of dairy products, animal feeds and beverages
experienced a loss of staff.
• In 2003 – 2006, the supply of labour was decreasing in all the sub-sectors of the sector of
manufacture of food products and beverages.
• According to the preliminary data of 2007, work permits issued to foreigners for employment in the
FB sector was 316, i.e. two times more than in the year 2005. Out of that number, qualified workers
accounted for as much as 90 per cent, which is 10 per cent more than in 2005.
41
• According to official data, the turnover in the FB sector has gone up in the recent five years.
According to the preliminary data of 2007, the biggest turnover was in the sub-sector of dairy
products and other food products, followed by the meat and beverages sub-sector.
• During the period of 2003-2007, the level of productivity grew in all the FB sub-sectors. The biggest
growth was observed in the sub-sectors of fruit and vegetables, meat, oils and fats, and beverages.
• During the recent five years earnings have been going up in all the sub-sectors, yet they still
remained lower than the national average. As compared to the other branches of manufacture,
earnings offered to the FB sector staff are among the lowest.
• The value-added created by the sector went up my slightly more than 1.5 times during the five year
period.
• With regard to the volume of export, the FB sector is one the leaders among the branches of
manufacturing. Generally speaking, the FB sector is sufficiently competitive on the international
scale.
42
4. CHARACTERISTICS OF SECTOR BASED ON SURVEY FINDINGS
4.1. Introduction
This chapter will describe the sector of manufacture of food products and beverages on the basis of the
social survey findings. In addition, it will analyse the trends of the FB enterprise activities and demand for
staff in the sector.
The sample for the postal questionnaire survey was selected on the basis of the data taken from the Registry
of Economic Entities, as well as by looking at the type of the prevailing economic activity (according to the
statistical classification NACE) and the enterprise size. A postal questionnaire survey was performed. All the
participants of the postal questionnaire survey were asked to return the filled out questionnaires after several
weeks. When the questionnaires were sent out to the respondents, telephone calls were made to remind
them about the deadline for sending the questionnaires back. In this way, a sufficient level of response was
secured. The level of response was 25 per cent. The presumption was made that the biggest impact on the
sector is made by medium-sized and large companies. The data about the distribution of the response level
by sub-sectors and the enterprise size are presented in Table 4.1..
Table 4.1. Distribution of Response Level by Sub-sectors and Size of Enterprise
FB sector
Enterprises by Number of Employees Number of enterprises which were sent a questionnaire
Response level %
Up to 9 457 10%
From 10 to 49 349 30%
From 50 to 249 164 51%
250 and more 42 56%
Total 1012 25%
Interviews were conducted with the leading enterprises. The total number of the FB sector enterprises
interviewed was 12.
4.2. Performance indicators
Characteristics of enterprises. According to the social survey findings, the sector is predominated by
‘independent enterprises’ (accounting for 95 per cent of the total). The majority of the sector enterprises are
those of Lithuanian capital (making up 94 per cent). The share of foreign capital companies is bigger in the
beverages sub-sector, where they, along with join venture companies, account for 20 per cent of the sub-
sector enterprises.
The lion’s share of the sector enterprises started their operation before 2001, including more than one third
of enterprises which began their activities between 1991 and 1995 and another third of companies which
became operative between 1996 and 2000. One fifth of enterprises have started their operations since 2001
(Fig. 4.1).
43
Fig. 4.1. Start of Enterprise Operation in the Sector of Manufacture of Food Products and Beverages According to Respondents (per
cent)
1036
3420
before 1990 from 1991 to 1995 from 1996 to 2000 since 2001
Turnover change. According to two thirds of the respondents, turnover was increasing in 2005, 2006 and
2007. The majority of them (65 per cent) predict that a similar trend will remain in 2008. Less optimistic about
the future growth in turnover are enterprises operating in the sub-sectors of diary products and animal feeds.
Provision of new products/services. According to the respondents, new products/services were offered by 80
per cent of the sector enterprises in the last two years. Admittedly, fewer new products and services were
provided by the sub-sectors of diary products and grain (accounting for 40 and 30 per cent respectively) .
Competition. The majority of the respondents mentioned high competition in the market. Only one
respondent said that competition in local market was medium. All of them agreed that the international
competition was huge.
Export. During the interview, the respondents were asked to specify the approximate amount of share
constituting by the export of products/services per year. The findings reveal that enterprises export about 15-
30 per cent of their production.
Business impediments. According to the respondents, the biggest business impediments in the FB sector is
‘high competition’, the shortage of ‘qualified workers’ or simply ‘workers’ and the ‘tax system’. Smaller
business obstacles are ‘legal regulation’, ‘lack of staff competences’, ‘ecological requirements’.
Use of information technologies (further referred to as the IT). The data about the information technologies
currently used or planned to be used in the future are provided in Fig. 4.2. The majority of companies in all
the sub-sectors are using e-banking and accounting software and an electronic system of manufacturing
planning. Fewer enterprises also take electronic orders by internet. The prevailing information technologies
to be used in the FB sector in the future include the electronic system of manufacturing planning and
accounting system as well as technologies of taking orders by internet. Less demand is for the customer
relationship management.
44
Fig. 4.2. Distribution of Responses by the Respondents about IT in Use and to be Used
0% 10% 20% 30% 40% 50% 60% 70%
Electronic manufacturing planning and accounting system
CRM
E-banking
E-trade
E-sales
OtherUsing
Planning to use
Use of modern technologies. Modern technologies are used by almost 55 per cent of the FB enterprises, and
64 per cent of them are planning to use modern technologies in the future. On the basis of this information it
could be inferred that modern technologies will be used in the future. The most widespread technologies
used in the FB sector include modern dispensing and packing machines and automation of technological
processes. The modern technologies which are planned to be used in the future include modern dispensing
and packaging machines, modern technological equipment and automation technologies of technological
processes. The data about the modern technologies which are currently used and planned to be applied in
the future are presented in Fig. 4.3. The respondents were asked to assess the impact of modern
technologies on the number of employees (managers, professionals/technicians, manufacturers and other
staff) in their enterprises. The majority of the respondents (from 57 to 88 per cent) said that the number of
managers, specialists/technicians and other workers will remain the same. There was a difference in the
opinion about the number of manufacturers. 45 per cent of the respondents said their number will not change
and 41 per cent believed that their number will decrease. Several respondents thought that the number of
manufacturers may increase.
Fig. 4.3. Distribution of Answers given by Respondents about Modern Technologies used or planned to be used
0% 10% 20% 30% 40%
Modern technological equipment
Modern laboratory equipment
Automation of technological process
Modern dispensing and packaging machines
Advanced technologies (e.g. membrane filters)
Environmental technologies
Effective waste management technologies
Modern waste disposal technologies
Other
Using
Planning to use
45
4.3. Employees
Employees. According to statistical data specially developed for the study, the sector of manufacture of food
products and beverages employed around 51,700 employees. The social survey reveals, that the share of
part-time workers in the overall structure of employees in the FB sector makes up approximately 3 per cent
and the share of women is 58 per cent. The age structure in the sector is as follows: 15 per cent of
employees are up to 30 years of age, 33 per cent are 30 - 40 years old, 34 per cent are 41 – 50 years old
and 18 per cent are aged 50 and above. There is no record showing the difference in the age structure of
employees by the size of enterprise and sectors. As compared to the trends in Europe (for more details see
Chapter 2.4), the Lithuanian sector enterprises have fewer young (aged up to 30) and part-time employees.
According to the findings of the social survey, the highest number of employees in the Lithuanian FB sector
is among the groups of manufacturers and other workers. The distribution of employees by groups of
occupation posts is shown in Fig. 4.4.
Fig. 4.4. Distribution of Employees by Groups of Occupation Posts
5% 6% 2% 49%9% 29%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
management
administration
professionals
associate professionals and technicians
manufacturers
other workers
Skills of employees. The participants of the postal questionnaire survey were asked to assess the conformity
of competence which their staff had to the requirements set for the occupation post as well as mention the
skills which their employees lacked most of all. The majority of the respondents said that the competence of
their staff meet the requirements set for the occupation post. Admittedly, the competence of top managers,
administration and professionals are more in line with the requirements set for their job than that of
technicians, manufacturers and other workers. According to the respondents, all the sector employees lack
foreign language and work organisation skills. In addition, professionals require work planning and control as
well as computer literacy skills. They also often mentioned the lack of quality management and
manufacturing management skills. The respondents said that qualified employees lack responsibility, duty
and willingness to learn, whereas professions need innovation and management skills.
Training of employees. 20 per cent of the respondents from the sector of manufacture of food products and
beverages said they had a written employee training plan. In 2005-2006, about 40 per cent of the sector
enterprises allocated a share of their working capital to employee training. Three thirds of them spend 1 per
cent of their turnover on training and one fourth of companies allocated more than 1 per cent of their working
capital on employee training. Two thirds of the respondents said that they mostly provide on-the-job training
46
and slightly less than one third (29 per cent) send their staff for training in public and private training
establishments.
Turnover of staff. The turnover of staff in the FB sector is rather high, accounting for 43 per cent per year.
The interviews showed that the main reasons for it are emigration, new technologies, working conditions
(seasonality of work) and personal features (non-compliance with work discipline). Table 4.4 shows that in
2007, the biggest turnover of staff was in the groups of manufacturers and other workers and two times
smaller associate professionals and technicians. The smallest turnover was observed among managers.
Table 4.4. Turnover of Staff in the Sector of Manufacture of Food Products and Beverages by Groups of Occupation Posts
Groups of Occupation Posts Change
Top management 9%
Administration 14%
Professionals 15%
Associate professionals and technicians
25%
Manufacturers 51%
Other workers 51%
Shortage of employees. The findings of the postal questionnaire survey and interviews showed that different
sub-sectors had difficulties in finding different groups of employees. For example, ME, FI, GR, AF and OFP
sub-sectors struggled to find manufacturers, the FV sub-sector had problems of finding professionals and the
DP sub-sector mostly lacked associate professionals and technicians (see table 4.5). On the overall sector
level, the groups of employees which are most difficult to find are manufacturers and other workers, whereas
professionals are less of an issue. Asked to mention the main difficulties in searching for the right
employees, the respondents mentioned the shortage of labour force and lack of qualification. They also
mentioned personal character features of employees (for example, unwillingness to work, alcoholism or
dishonesty).
Table 4.5. The Most Difficult to Find Employees by Occupation, 2007
ME FP FV
Manufacturers (1) Meat cutters Butchers
Manufacturers (1) Producers and food products Plant and machine operators
Professionals (1) Food technologists Quality assurance specialists
Professionals (2) Food technologists
Professionals (2) Food technologists
Manufacturers (2) Fruit and vegetable processors
Other workers (3) Drivers
Other workers (3) Drivers
Other workers (3) Welders
DP GR AF
Associate professionals and technicians (1) Mechanics
Manufacturers (1) Production foremen Plant and machine operators
Manufacturers (1) Plant and machine operators
Other workers (2) Drivers
Other workers (2) Metal workers
Professionals (1) Food technologists
47
Manufacturers (3) Production foremen Plant and machine operators
Professionals (3) Food technologists
Other workers (1) Drivers
BE OFP
Other workers (1) Drivers Construction workers
Manufacturers (1) Confectioners Bakers Cooks
Manufacturers (2) Plant and machine operators Beverage producers
Professionals (2) Food technologists Marketing, supply and sales professionals
Professionals (3) Beverage technologists
Other workers (3) Drivers Metal workers
4.4. Forecast of Demand for Employees in the Future
The forecast of the future demand for employees in the FB sector has been made by looking at the sector
development and the turnover of staff. While examining the change of employees in the sector, the following
two reasons were considered:
• a number of employees who leave their occupation posts also leave the labour market (e.g. due to
retirement). The presumption was made that the average annual number of such employees is one
tenth of the employees aged 55 or above. According to the Population Employment Survey, the
manufacturing, which includes the sector of manufacture of food products and beverages, ad 10.1
per cent of such employees in 20065. Therefore, it could be inferred that 1 per cent of employees in
each of the occupation groups irreversibly leave the labour market;
• other employees stay in the labour market. Therefore, they have only two options: either get
employed in another company and remain in the sector or move to another economic sector. The
latter number of employees is estimated on the basis of two presumptions: (1) the share of
employees leaving the sector is directly proportionate to the intensity of staff turnover; (2) if workers
from a certain group of occupation change their employment on average every year, the probability
that they will leave the sector when moving to another job stands at 50 per cent.
The forecast of future demand for employees, developed on the basis of the analysis of social survey
findings, is provided in Table 4.6.
Table 4.6. Demand for Employees in FB Sector Groups of Occupations Number of
Employees in 2006
Development in 5 Years’ Time
Annual Change
Leaving Sector in 5 Years’ Time
Need for New Employees in 5 Years’ Time
Need for New Employees in 1 Year Time
Top management 2213 -65 9% 149 84 20
Administration 2973 -51 14% 283 232 50
Professionals 4277 142 15% 437 579 120
Associate professionals and 1182 74 25% 236 310 60
5 Source: data of the Statistics Department specially prepared for the study.
48
technicians
Manufacturers 23520 348 51% 16170 16518 3300
Other workers 13672 46 51% 9398 9444 1900
Total 47837 494
4.5. Summary
• The sector of manufacture of food products and beverages is predominated by ‘independent
enterprises’ (accounting for 95 per cent of the total). The majority of the sector enterprises are those
of Lithuanian capital (making up 94 per cent). The share of foreign capital companies is bigger in the
beverages sub-sector, where they, along with join venture companies, account for 20 per cent of the
sub-sector enterprises.
• new products/services were offered by 80 per cent of the sector enterprises in the last two years.
Admittedly, fewer new products and services were provided by the sub-sectors of diary products and
grain.
• The local and international competition is huge.
• The biggest business impediments in the FB sector is ‘high competition’, the shortage of ‘qualified
workers’ or simply ‘workers’ and the ‘tax system’.
• The majority of companies in all the sub-sectors are using e-banking and accounting software and
an electronic system of manufacturing planning. Fewer enterprises also take electronic orders by
internet. The prevailing information technologies to be used in the FB sector in the future include the
electronic system of manufacturing planning and accounting system as well as technologies of
taking orders by internet.
• Modern technologies are used by almost 55 per cent of the FB enterprises, and 64 per cent of them
are planning to use modern technologies in the future. Modern technologies will also be used in the
future. The majority of the respondents believe that the use of modern technologies will not affect the
number of managers, specialists/technicians and other workers.
• The sector employs around 51,700 employees. The share of part-time workers in the overall
structure of employees in the FB sector makes up approximately 3 per cent and the share of women
is 58 per cent.
• The sector employees lack foreign language and work organisation skills. In addition, professionals
require work planning and control as well as computer literacy skills.
• The turnover of staff in the FB sector is rather high, accounting for 43 per cent per year. The biggest
turnover of staff is in the groups of manufacturers and other workers.
49
5. SUPPLY OF EMPLOYEES
5.1. Introduction
This chapter will provide a short overview of education, groups of occupation posts as well as the trends of
employee supply in the sector of manufacture of food products and beverages. The supply of employees is
understood as the outcome of education, i.e. the type of qualifications and the number of employees trained.
The main data include information about the entrance level, number of graduates, the level of education
obtained and the type of qualification acquired. The analysis was performed on the basis of statistical data
specially developed for the study, publicly available information about study/training programmes and
surveys of vocational schools about the number of graduates employed.
5.2. Education and Job Groups
The best way to describe training achievements is to look at qualification6 acquired. Seeking to obtain a
certain qualification, it is essential to have obtained a basic level of education7. The levels of education in
Lithuania are determined by the structure of the system of education. It consists of primary, basic,
secondary, post-secondary (the latter is practically no longer applied) and higher education. Pursuant to the
Law Vocational Education and Training (new version)8, qualification is based on competence9, which include
knowledge, skills and values. Qualification and separate competences are laid down in certain documents
provided for in the Law on Vocational Education and Training and the Law on Higher Education of the
Republic of Lithuania10. Qualification is the outcome of formal education11 or other educational attainment.
According to their content, training/study programmes are grouped into different areas of education
(‘Classification of the Lithuanian Education’). Vocational education and training may be primary and
continuing. The purpose of primary vocational education and training is to obtain qualification and the
purpose of continuing training is to upgrade the existing qualification or obtain a new one. The study
examines one part of the continuous vocational education and training: training of the unemployed.
Presently, primary vocational training and education is carried out pursuant to the following four-stage
programmes:
Stage I. The training programmes of this stage only admit persons without basic education.
The training duration is two to three years if basic education is pursued. After completing the
training programmes, the graduates are given a qualification certificate.
Stage II: The training programmes of this stage admit persons with basic education, seeking
to acquire vocational qualification. The training duration is two years. After completing the
training programmes, the graduates are given a diploma of vocational training and education.
6 Qualification: ability and right to engage in a certain professional activity, as recognised according to a procedure
prescribed in law or in legislative acts of the Government or its authorised institution. Republic of Lithuania Law on
Education. 7 Education level: competence, knowledge, skills, abilities and values, demonstrating a particular level of personal
development, attainment thereof is recognised according to a procedure prescribed by the Government or its authorised
institution. Republic of Lithuania Law on Education. 8 A new version of the law was adopted in 2007 and is effective of 1 January 2008. 9 Competence: ability to perform a certain activity on the basis of the entirety of acquired knowledge, skills, abilities
and values. Republic of Lithuania Law on Education. 10 Republic of Lithuania Law on Education (new version effective as of 28 June 2003), Article 39, Paragraph 3.
11 Formal education: education implemented according to the programmes approved and registered in accordance with
a procedure prescribed by legal acts, the completion of which results in the attainment of a primary, basic, secondary,
post-secondary or higher education level and/or a qualification. Republic of Lithuania Law on Education.
50
Stage III: The training programmes of this stage admit persons with basic education, seeking
to acquire vocational qualification and general secondary education. The training duration is
three years. After completing the training programmes, the graduates are given a diploma of
vocational education and training.
Stage IV: The training programmes of this stage admit person with secondary education. The
training duration is from one to two years. After completing the training programmes, the
graduates are given a diploma of vocational education and training.
University studies of higher education are more oriented towards academic activities, whereas non-university
studies focus on applied activities.
With regard to employment activity, the main variable is an occupation post, i.e. the collection of functions for
the performance of which remuneration is paid. The performance of such functions requires a certain level of
education and a number of relevant skills. In that way, the occupation post may be expressed in terms of
education and skills. Occupation posts are usually grouped using the ISCO12 or SOC13 classifications. Both
of them are compatible. The ISCO served as the basis for the Classification of Lithuanian Professions (a
profession is linked to the hour of actual work). The latter is used for collecting a variety of statistical data.
The study analyses the supply of employees by comparing the data on education and occupation posts
according to the diagram presented below (Fig. 5.1).
Fig. 5.1. Employee supply assessment scheme
12 International standard classification of occupations
13 Standard occupational classification
Initial vocational education and training
Higher education (university and non-university)
Education and training of the unemployeed
1 2 3 4 stages
Plant and machine operators and assemblers
job groups
Education
Service workers and shop and market sales workers
Skilled agricultural and fishery workers
Craft and related trades workers
Professionals Technicians and asociate professionals
Clerks
51
5.3. Supply of Employees by Areas and Level of Education
Analysis of employment changes by the groups of occupation posts shows that in 2004-2006, the biggest
reduction was in the group of qualified workers of marketable agriculture and fishery and the biggest growth
was in the group of legislators, senior public officials, managers of enterprises and organisations. The share
of professionals (including servants) in the employment structure of 2006 constituted less than 30 per cent
and the share of workers made up approximately 60 per cent (See Table 5.1).
Table 5.1. Employment Distribution by Job Groups
Change from 2004 to 2006
Job groups 2006 m.
19% ���� Legislators, senior officials and managers 9%
7% ���� Professionals 17%
5% ���� Technicians and associate professionals 9%
4% ���� Clerks 4%
29,5%
13% ���� Service workers and shop and market sales workers 13%
-27% ���� Skilled agricultural and fishery workers 9%
12% ���� Craft and related trades workers 19%
9% ���� Plant and machine operators and assemblers 10%
50,8%
4% ���� Elementary occupations 11% 10.7%
-8% ���� Armed forces (hired workers) 0%
���� - increase; ���� - decrease
According to the data we have, in 2006, vocational training schools admitted 19,913 students, which is 3 per
cent less than in 2005. The same year saw a slight increase in the demand for BA studies: 47,240 students
entered higher education establishments, i.e. 2 per cent more than in 2005. Among those who chose
vocational education and training, the most popular disciplines were business and administration as well as
engineering and engineering professions. Among those who preferred university education, the most popular
choice was of Business and administration. In fact, the same trends were prevailing during the previous year.
Detailed data about the distribution of admitted students by areas of education are presented in Fig. 5.2.
The distribution of graduates by areas of education coincides with the admission structure, i.e. the
predominant number of graduates is from the area of business and administration, and the number of
vocational training graduates is more than two times smaller than the volume of graduates from higher
educational establishments. Admittedly, in 2006, as compared to 2005, the number of graduates was 11 per
cent smaller. During that period, the number of university graduates increased by 12 per cent.
The data show that although the level of employment in the group of workers is two times bigger than in the
group of professionals (including servants), yet number of admitted students to programmes of higher
education exceeds the number of students to the relevant vocational training programmes two times. This
has an impact upon the proportioned maintained among the graduates of vocational training and higher
52
education. Hence the discrepancy between the supply and demand of employees may grow in the future,
causing serious problems for business development.
Fig. 5.2. Distribution of Admitted Students by Areas of Education in 2006
0 5000 10000 15000 20000 25000
Personal abilitiesTeacher training
ArtHumanities
Social and behavioural scienceJournalism and information
Business and administrationLaw
Natural sciencePhysics
Maths and statisticsComputer science
EngineeringProduction and manufacturingArchitecture and construction
Agriculture and forestryVeterinary
HealthSocial services
Personal servicesTransport services
Environmental protectionSecurity services
Vocational
Higher education
5.4. Supply of Employees in the FB Sector
While implementing a training/study programme, the future employees are usually trained for a certain group
of activities, rather than one concrete occupation posts. The activities of different economic sectors often
overlap. Certain competences necessary for the FB sector can be obtained in, for instance, the area of, for
instance, agriculture, catering, and trade in food products. As a result, it is quite difficult to name the
programmes aimed at training the employees for a particular sector, because graduates of different study
programmes may find employment in a variety of economic sectors. Therefore, while looking at the supply of
employees, all the programmes were taking into consideration, the graduates from which could be employed
in the FB sector. On the basis of the information provided about study programmes (programmes) in the
Open Information, Counselling and Guidance System (AIKOS), they are divided into the following two
groups:
• Group 1. It comprises the programmes that focus of competences required by the FB sector. The
study presumes that the majority of the graduates from this group of programmes find employment
in the FB sector enterprises.
• Group 2. The majority of its programmes are aimed at developing competences required by the
other sectors. The majority of the graduates should find employment in other sectors and only a
small share of them gets employed in the FB sector. For example, food preparation employees are
trained in public catering enterprises and gastronomy workshops of retail trade networks. However,
they can also apply their competences in food manufacturing enterprises.
53
5.4.1. Supply of Skilled Workers (Manufacturers) for the FB Sector
Upon the selection of primary vocation training programmes for the FB sector in the aforementioned way,
information was collected from all the vocational schools offering such programmes about the number of
graduates from them in 2007 and their level of employment. Findings of the survey are presented in Table
5.2. The data about employment are aggregate. Schools had no information about the type of economic
sectors which employed the graduates.
Table 5.2. Primary Vocational Education Programmes in Manufacture of Food Products and Beverages Sector and the Number of Graduates from them (According to the Survey of Schools)*
Graduates in 2007 Primary vocational training programme
Total Got
Employed
Supply of workers in the FB sector
Food industry worker 48 29
Food products production worker 14 8
Dairy operator 19 15
Meat processor 49 47
Butcher 16 13
Baker and confectioner 19 10
Group I
Confectioner 4 3
125
Food preparation worker 523 316 Group II
Cook and confectioner 38 22 338
*Short descriptions of the programmes are provided in Annex 3.
The registry of study and training programmes also includes the following: ‘baker of bread and pastry
training’, ‘beekeeping business employee training’ and ‘pisciculture business employee training’. They are
not mentioned in Table 5.2, because they were not conducted in 2005 – 2007.
The employees for the sector of manufacture of food products and beverages are also trained by the labour
market training programmes, included in the Registry of Study and Training Programmes. Data about
these programmes are listed in Table 5.3. Moreover, a number of non-formal training programmes offer
competences required by the FB sector. For instance, the list of the labour market non-training programmes
(http://www.ldrmt.lt/mod/nf_reg/) includes several programmes of the kind. Unfortunately, data about the
number of graduates from continuing vocational training programmes are not systemically collected and
therefore the quantitative assessment of the supply was not performed.
Table 5.3. Formal Labour Market Vocational Training Programmes in the Sector of Manufacture of Food Products and Beverages
Formal Labour Market Training Programme for
Programme Duration in Weeks Number of Licensed Bodies
Brewers 13 2 Bakers 20 11 Grain mill processing managers 1 1 Confectioners 40 ir 32 26 Meat cutters 16 8 Meat processing enterprise workers 14 4 Milk laboratory assistants 12 2 Fish and sea products primary processors 11 ir 7 6
54
5.4.2. Supply of Professionals, Including Associate Professionals and Technicians, for the FB Sector
There are relatively few higher education non-university and university studies training specialists for the FB
sector. All of them are listed in Table 5.4. The majority of programmes are clearly oriented towards the FB
sector, although their qualification descriptions sometimes mention some other economic sectors, including,
for example, trade and agriculture.
Table 5.4. Higher Education Study Programmes for Training MG Sector Employees
Study programme Graduates in 2006 Supply of Professionals in FBS**
Foodstuffs technology and equipment
35
Foodstuffs technology 43 Non-university
studies Food industry business management
43
85
Food technology and engineering
52 University BA
studies Engineering of food storage and processing of agricultural products
27 55
140
Food science 13 MA studies Foodstuffs technology 23
36
* Short descriptions of the qualifications listed is provided in Annex 4 **The supply was calculated assuming that 70 per cent of graduates get employed In 2006, the total number of graduates of the programmes mentioned in table 5.4 was 236, including 200
persons who finished the first stage of studies. Since very few higher education schools keep record of a
follow-up career of their graduates, the presumption is that the average number of students who get
employed is approximately 70 per cent Graduates of master studies are not included into the supply
because: (1) the majority of master students are employed and (2) prior to getting into master studies
students have to complete their stage 1 study programmes and the latter are already included into the
supply. With that in mind, the supply of professionals for the FB sector in 2006 was approximately 140
people.
5.5. Summary
The forecast of the future demand for employees in the FB sector has been made by looking at the sector
development and the turnover of staff (for more details see Chapter 4.4). The survey presumes that the need
for employees, occurring as a result of sector development and employees leaving the labour market due
their age or other reasons, should be compensated by the system of primary vocational training. The supply
and demand for employees in the FB sector is shown in Table 5.5. The supply and demand has been
calculated on the basis of the data provided in tables 5.4 and 4.6.
55
Table 5.5. Demand for Employees and Supply of Primary Vocational Training and Higher Education in the Sports Sector by Groups of Occupation Posts with the Shortage of Staff Identified*
Groups of Occupation Posts
Demand for New Staff during the 1st year
Need for Initial Training ** Annual Supply (2006 data) Assessment of the Balance between Supply and Demand
Professionals 120 71
Associate professionals and
technicians 60 27
Appr. 140
Positive
Manufacturers 3300 305 Appr. 125 negative
* The supply and demand for ‘other workers’ is not separately examined because workers belonging to this group (e.g. drivers) work in a variety of economic sectors and do not characterise the FB sector ** Newly employed staff to replace those who leave the labour market and compensate the need for employees created by the sector development
According to the data of the social survey (see Table 4.6), in 2007, the number of qualified workers
(manufacturers) in the food and beverages manufacturing sector surpassed the number of professionals
(including technicians) four times. However, data from the year 2006 show the reverse trends with regard to
the number of admitted students to the FB sector programmes and the number of graduates from them.
First, the number of admitted students to the programmes of higher education exceeds the number of
students to the relevant vocational training programmes 2.5 times. Second, the number of graduates from
higher education schools exceeds, albeit insignificantly, the number of graduates from vocational training
schools (see tables 5.2., 5.4.) Hence the discrepancy between the supply and demand of employees may
grow in the future, causing serious problems for business development.
The survey shows that primary vocational training will be able to provide only a small share (300 people) of
qualified workers (manufacturers) required by the sector. Continuing vocational training is required to train as
many as 3,000 manufacturers. Partly this demand is met by training the unemployed. However, the social
survey reveals that (see chapter 4.2) enterprises take efforts to satisfy the demand themselves by offering
on-the-job training for the people employed.
56
6. RECOMMENDATIONS
To improve conformity between demand and supply of employees in manufacture of food products
and beverages sector
• Although the level of employment in the FB sector enterprises among the group of workers is four times
bigger than in the group of professionals (including technicians), the number of admitted students to the
FB sector programmes of higher education exceeds the number of students to the relevant vocational
training programmes 2.5 times (data of 2006). As a result of such disproportion, the supply of
professionals in the labour market exceeds the demand for them, whereas qualified workers are lacking.
Therefore it is recommended to review the plans of admitting students into the state funded higher
education and vocational training programmes of the FB sector.
• The shortage of ‘manufacturers’ and ‘other workers’ in the sector is mostly linked to the lack of workers
trained by vocational training establishments. The latter is associated with the low level of prestige, in the
eyes of society, of vocational training. Therefore it is recommended to advertise and raise awareness
about food manufacturing occupations among the youth (organising advertising campaigns in general
education schools, in the press, television and showing examples of successful careers pursued by the
graduates, etc.). The attractiveness and prestige of the sector occupations should also be increased by
the food manufacturing enterprises. They could offer higher remuneration for work and social guarantees
to their employees, improve working conditions and motivate staff by offering refresher courses abroad.
• Certain sector enterprises (particularly those operating in the grain and animal feed sub-sectors) lack
food machine operators. Presently, no training is available to offer such occupational qualification.
Previously, workers of similar qualification were trained under the Food Industry Equipment Operator
and Laboratory Assistant Training Programme. Therefore it is recommended to modify the programme to
include training of food machine operators.
• The sector of the FB manufacture offers a huge variety of occupation posts and competences.
Therefore, the annual demand for employees in certain occupation posts is rather high. Therefore it is
recommended to organise training based on modules. In the beginning students would attend obligatory
training modules offering general competences required by the FB sector and later they could choose
additional competences necessary for the occupation of their choice from the range of optional modules.
The optional modules could be agreed with the interested sector enterprises which usually employ the
graduates.
• The analysis performed shows that enterprises willing to respond to market changes in a more flexible
and speedy manner will speed up the use of modern production technologies. That will also reduce the
need for workers with low qualification and increase the demand for higher skilled workers (for instance,
operators). Therefore, it is recommended to organise practical training for employees (for example, by
appointment of enterprise workers as manufacturing practice supervisors or tasking them to perform
other assignments). It the long-run this would ensure smaller discrepancy between the supply and
demand for employees of certain qualifications.
• The new form of organisation of apprenticeship vocational training has been established by law. It
means on-the-job training in an enterprise, institution, organisation, farm or with a free-lance trainer.
Theoretical training may be carried out in vocational training establishment or another type of school.
57
The experience of other countries shows, that the advantages of apprenticeship include smaller training
costs and work with modern technologies. Enterprises are recommended to use the opportunity to train
the employees according to their own needs and, at the same time, increase the attractiveness of
vocational education and training.
• According to the survey findings, all the sector employees lack foreign language and work organisation
skills. n addition, professionals require work planning and control as well as computer literacy skills.
Qualified employees lack responsibility, duty and willingness to learn, whereas professions need
innovation and management skills. Therefore, to ensure appropriate qualification of employees,
training/study programmes should be updated with regard to the identified needs of skills.
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Improve, 2004. Key Findings from the National Employers Survey, 2003. Sector Skills Development Agency: South Yorkshire.
just-food, 2006. Global market review of diet trends and weight management - forecasts to 2012. Available at: http://www.the-infoshop.com/study/jusf45074-weight-mngment.html.
Market Research Northern Ireland, 2006. Skills Needs in the Northern Irish Food and Drink Manufacturing Industry. Improve: York.
Myers, H. 2005. European Food Retailers: Paths for Growth. European Retail Digest, no.38, pp. 1-5.
OECD, FAO, 2006. OECD-FAO Agricultural Outlook 2006-2015. Available at http://www.agri-outlook.org/dataoecd/41/21/37038911.pdf.
Price Waterhouse Cooper, 2002. The Demand and supply of Skills in the Food Processing Sector. Dublin: Enterprise Ireland/FAS.
Simpson, J. and M. Stalker, 2004. Shetland’s food & drink sector: Workforce Development Plan and PESTLE Analysis. DEVA Personal Development Associates: Kilmarnock.
ANNEX 1
Lietuvos maisto produktų ir g÷rimų gamybos sektoriaus SSGG analiz÷
Stipryb÷s Silpnyb÷s
• Senos maisto produktų (ypač pieno, m÷sos , duonos) gamybos tradicijos.
• Palankios sąlygos pl÷toti maisto produktų ir g÷rimų gamybą.
• Daug šios srities specialistų. • Pakankamas gamybinis potencialas. • Skiriama vis daugiau l÷šų kofinansuoti inovacinę
veiklą ir mokslinius tyrimus. • Kai kurios maisto ūkio šakos pakankamai
integruotos į ES struktūras. • Spartus naujų produktų kūrimas ir diegimas. • Įmon÷s atitinka griežtus reikalavimus gamybos
procesui ir produkcijos saugai ir kokybei.
• Sektorius per daug orientuotas į vietinę rinką. • Žemas darbo produktyvumas. • Daug įmonių orientuotų į žemos prid÷tin÷s vert÷s
produktų gamybą. • Maž÷ja technologinį išsilavinimą turinčių
specialistų.
Galimyb÷s Gr÷sm÷s
• ES dotacijos žem÷s ūkiui. • Geros užsienio prekybos galimyb÷s NVS ir ES
šalyse. • Palanki mokesčių sistema maisto produktų
eksportui į trečiąsias šalis. • Augančios gyventojų pajamos. • Europos socialinių fondų parama.
• Vietinių žaliavų stygius ir jų brangimas. • Prekybos liberalizacija. • Darbo j÷gos emigracija. • Lietuvos nepasirengimas įsisavinti ES paramą. • Nepakankamas investicinis aktyvumas. • Dažni pokyčiai teisin÷je aplinkoje, įstatymin÷je
baz÷je. • Augantys vartotojų reikalavimai. • Didelis konkurencinis spaudimas. • Aukštos kvalifikacijos darbo j÷gos stoka. .
ANNEX 2
Lentel÷. MG sektoria
us kaita praeityje ir prognoz÷s ateičiai
ME
ZU
VD
2003 m
. 2007 m.
Pokytis
(kartais)
Prognoz÷
2012 m.
Pokytis
(kartais)
2003
m.
2007 m.
Pokytis
Prognoz÷
2012 m
. Pokytis
(kartais)
2003 m
. 2007 m
. Pokytis
Prognoz÷
2012 m
. Pokytis
(kartais)
Įmon
ių s
kaič
ius
356
246
� ���(0
.69)
24
6 =
89
67
� ���(0
.75)
55
� ���
(0.8
2)
36
35
� ���
(0.9
7)
35
=
Dar
buot
ojų
skai
čius
95
96
9983
� ���
(1.0
4)
9945
� ���
(0.9
96)
41
14
4742
� ���
(1.1
5)
7,01
4 � ���
(1.4
8)
69
4 85
4 � ���
(1.2
3)
943
� ���(1
.10)
Apyv
arta
(tūk
st. l
itų)
7934
25
1432
547
� ���(1
.81)
19
2729
4 � ���
(1.3
5)
45
8478
68
6462
.3
� ���(1
.50)
11
4985
5.2
� ���(1
.68)
4743
3 10
3445
� ���
(2.1
8)
1890
16
� ���(1
.83)
Prod
ukty
vum
as
(apy
varta
/dar
buot
ojų
sk.)
82.7
14
3.5
� ���(1
.74)
19
4 � ���
(1.3
5)
11
1.4
144.
8 � ���
(1.3
0)
163.
9 � ���
(1.1
3)
68
12
1 � ���
(1.7
7)
200
� ���(1
.65)
Vidu
tinis
m÷n
esin
is
brut
o da
rbo
užm
okes
tis
1014
15
85
� ���(1
.56)
26
21.0
0 � ���
(1.6
5)
98
4 15
37
� ���(1
.56)
25
42
� ���(1
.65)
1029
16
09
� ���(1
.56)
26
60.3
� ���
(1.6
5)
Dal
is n
uo B
PV (%
) 0.
52%
0.
72%
� ���
(1.3
7)
0.76
%
� ���(1
.06)
0.30
%
0.34
%
� ���(1
.14)
0.
45%
� ���
(1.3
2)
0.
04%
0.
06%
� ���
(1.6
5)
0.08
%
� ���(1
.30)
� ��� -
padi
d÷jim
as; � ��� -
sum
až÷j
imas
; = - to
ks p
ats
RA
PI
GR
2003 m
. 2007 m.
Pokytis
(kartais)
Prognoz÷
2012 m.
Pokytis
(kartais)
2003 m
. 2007 m
. Pokytis
Prognoz÷
2012 m
. Pokytis
(kartais)
2003 m
. 2007 m
. Pokytis
Prognoz÷
2012 m
. Pokytis
(kartais)
Įmon
ių s
kaič
ius
13
8 � ���
(0.6
2)
8 � ���
(0.6
2)
54
32
� ���
(0.5
9)
32
=
93
48
� ���
(0.5
) 48
=
Dar
buot
ojų
skai
čius
16
1 89
� ���
(0.5
5)
89
� ���(0
.55)
1184
4 94
86
� ���(0
.8)
9486
=
1720
12
65
� ���(0
.74)
12
69
=)
Apyv
arta
(tūk
st. l
itų)
3082
5 29
546
� ���(0
.96)
18
593
� ���(0
.60)
1619
401
1758
630
� ���(1
.09)
20
4924
3 � ���
(1.1
7)
20
5118
21
6998
� ���
(1.0
6)
9959
8 � ���
(0.4
6)
Prod
ukty
vum
as
(apy
varta
/dar
buot
ojų
sk.)
191
332
� ���(1
.73)
20
9 � ���
(1.0
9)
13
7 18
5 � ���
(1.3
6)
216
� ���(1
.17)
119
172
� ���(1
.44)
78
� ���
(0.4
6)
Vidu
tinis
m÷n
esin
is
brut
o da
rbo
užm
okes
tis
973
1522
� ���
(1.5
6)
2516
� ���
(2.5
8)
10
62
1659
� ���
(1.5
6)
2744
� ���
(1.6
5)
10
29
1609
� ���
(1.5
6)
2660
� ���
(1.6
5)
Dal
is n
uo B
PV (%
) 0.
03%
0.
02%
� ���
(0.7
1)
0.01
%
� ���(0
.34)
1.41
%
1.14
%
� ���(0
.8)
1.02
%
� ���(0
.9)
0.
17%
0.
14%
� ���
(0.8
) 0.
04%
� ���
(0.3
3)
� ��� -
padi
d÷jim
as; � ��� -
sum
až÷j
imas
; = - to
ks p
ats
61
PA
KP
GE
2003 m
. 2007 m.
Pokytis
(kartais)
Prognoz÷
2012 m.
Pokytis
(kartais)
2003 m
. 2007 m
. Pokytis
Prognoz÷
2012 m
. Pokytis
(kartais)
2003 m
. 2007 m
. Pokytis
Prognoz÷
2012 m
. Pokytis
(kartais)
Įmon
ių s
kaič
ius
26
18
� ���(0
.69)
19
� ���
(1.0
6)
70
7 51
4 � ���
(0.7
3)
508
� ���(0
.99)
139
115
� ���(0
.83)
11
4 � ���
(0.9
9)
Dar
buot
ojų
skai
čius
19
23
1636
� ���
(0.8
5)
1661
� ���
(1.0
2)
18
522
1834
2 � ���
(0.9
9)
1879
6 � ���
(1.0
2)
5,
758
5,25
8 � ���
(0.9
) 2,
959
� ���(0
.56)
Apyv
arta
(tūk
st. l
itų)
5691
82
6020
69
� ���(1
.06)
79
7819
� ���
(1.3
3)
15
5067
4 16
7916
7 � ���
(1.0
8)
2444
193
� ���(1
.46)
7886
46
1159
319
� ���(1
.47)
21
7155
1 � ���
(1.8
7)
Prod
ukty
vum
as
(apy
varta
/dar
buot
ojų
sk.)
296
368
� ���(1
.24)
48
0 � ���
(1.3
1)
84
92
� ���
(1.0
9)
130
� ���(1
.42)
137
220
� ���(1
.61)
73
4 � ���
(3.3
3)
Vidu
tinis
m÷n
esin
is
brut
o da
rbo
užm
okes
tis
1034
16
17
� ���(1
.56)
26
73
� ���(1
.65)
1014
15
85
� ���(1
.56)
26
21
� ���(1
.65)
1044
16
33
� ���(1
.56)
26
99.6
� ���
(1.6
5)
Dal
is n
uo B
PV (%
) 0.
37%
0.
30%
� ���
(0.8
1)
0.31
%
� ���(1
.04)
0.55
%
0.44
%
� ���(0
.79)
0.
53%
� ���
(1.2
1)
0.
52%
0.
58%
� ���
(1.1
2)
0.86
%
� ���(1
.47)
� ��� -
padi
d÷jim
as; � ��� -
sum
až÷j
imas
; = - to
ks p
ats
ANNEX 3
Lentel÷ MG sektoria
us darbininkų (operatorių) įgyjam
ų kompetencijų ir geb÷jim
ų ap
rašai pag
al profesinio mokym
o prog
ramas
Vir÷jo ir konditerio
Kep÷jo ir konditerio
Konditerio
Maisto ruošimo darbuotojo
Kom
petencijos ir
geb÷jim
ai
Pasi
rinkt
i dar
bui t
inka
mus
įran
kius
, in
vent
orių
ir te
chno
logi
nius
įren
gini
us.
Saug
iai d
irbti
su įv
airia
is m
aist
o ru
ošim
o įre
ngim
ais.
Įv
ertin
ti ve
rslo
apl
inką
. Ti
nkam
ai o
rgan
izuo
ti da
rbo
viet
ą.
Atlik
ti da
rbus
pag
al s
anita
rijos
ir h
igie
nos
reik
alav
imus
. Pa
rinkt
i žal
iava
s ir
med
žiag
as m
aist
o pr
oduk
to g
amyb
ai.
Nus
taty
ti ža
liavų
kok
ybę.
N
audo
tis in
form
acin
÷mis
tech
nolo
gijo
mis
. G
amin
ti ku
linar
ijos
ir ko
ndite
rijos
pu
sgam
iniu
s.
Parin
kti i
r tai
kyti
šilu
min
io p
aruo
šim
o bū
dus.
G
amin
ti ka
rštu
s pa
tieka
lus
ir ku
linar
ijos
gam
iniu
s.
Gam
inti
ir p
atie
kti
šaltu
osiu
s,
sald
žiuo
sius
pat
ieka
lus,
užk
andž
ius
ir g÷
rimus
. Įv
ertin
ti pa
ruoš
tų p
atie
kalų
ir k
ulin
arijo
s ga
min
ių k
okyb
ę.
Gam
inti
mie
linių
ir n
emie
linių
tešl
ų ga
min
ius.
Įv
ertin
ti ko
ndite
rijos
gam
inių
kok
ybę.
O
rgan
izuo
ti m
aist
o ru
ošim
o įm
on÷s
vei
klą.
Pa
rinkt
i, pr
iimti
ir la
ikyt
i mai
sto
prod
uktu
s.
Atlik
ti ne
sud÷
tingą
pirm
inį m
aist
o pr
oduk
tų
paru
ošim
ą.
Nus
taty
ti m
aist
o pr
oduk
tų k
okyb
ę ju
slin
iu
būdu
. N
usta
tyti
mai
sto
prod
uktų
reik
mes
. R
uošt
i duo
nos
pusg
amin
ius.
R
uošt
i nes
ud÷t
ingu
s ko
ndite
rijos
gam
inių
pu
sgam
iniu
s.
Ruo
šti p
likin
ius,
raug
us, į
mai
šus.
R
uošt
i nes
ud÷t
ingų
duo
nos
ir py
rago
ga
min
ių te
šlas
, for
muo
ti ir
kept
i gam
iniu
s.
įver
tinti
duon
os ir
pyr
ago
gam
inių
kok
ybę
jusl
iniu
būd
u.
Gam
inti
mie
lin÷s
tešl
os g
amin
ius.
G
amin
ti ne
sud÷
tingu
s te
šlų
su p
urik
liais
ir
be p
urik
lių g
amin
ius.
Įv
ertin
ti ko
ndite
rijos
gam
inių
kok
ybę
jusl
iniu
būd
u.
Gam
inti
nesu
d÷tin
gus
krem
inių
gam
inių
pu
ošim
o pu
sgam
iniu
s.
Gam
inti
nesu
d÷tin
gus
krem
iniu
s ga
min
ius.
Su
pras
ti ko
mpo
zici
jos
pagr
indu
s.
Pa
rinkt
i, pr
iimti
ir la
ikyt
i mai
sto
prod
uktu
s.
Atlik
ti pi
rmin
į mai
sto
prod
uktų
par
ošim
ą.
Nus
taty
ti m
aist
o pr
oduk
tų k
okyb
ę.
Pask
aiči
uoti
mai
sto
prod
uktų
reik
mes
. R
uošt
i kon
dite
rijos
pus
gam
iniu
s.
Parin
kti i
r tai
kyti
šilu
min
io p
aruo
šim
o bū
dus.
Įv
ertin
ti pa
ruoš
tų k
ondi
terij
os g
amin
ių
koky
bę.
Gam
inti
mie
linių
tešl
ų ga
min
ius.
ga
min
ti ne
mie
lin÷s
tešl
os g
amin
ius.
Įv
ertin
ti ko
ndite
rijos
gam
inių
kok
ybę.
Ap
ipav
idal
inti
kond
iterij
os g
amin
ius.
Su
pras
ti ko
ndite
rijos
gam
ybos
įmon
÷s
veik
lą.
Tvar
kyti
kond
iterij
os įm
onių
gam
ybos
pr
oces
o ap
skai
tą.
Įver
tinti
darb
o rin
ką.
Paru
ošti
plik
iniu
s, ra
ugus
, įm
aiša
lus.
Pa
ruoš
ti įv
airia
s du
onos
ir p
yrag
o ga
min
ių
tešl
as, f
orm
uoti
ir ke
pti,
apip
avid
alin
ti ir
paku
oti.
Pa
sirin
kti d
arbu
i tin
kam
us įr
anki
us,
inve
ntor
ių ir
tech
nolo
gini
us įr
engi
nius
. Sa
ugia
i dirb
ti su
įvai
riais
mai
sto
ruoš
imo
įreng
imai
s.
Įver
tinti
vers
lo a
plin
ką.
Tink
amai
org
aniz
uoti
darb
o vi
etą.
At
likti
darb
us p
agal
san
itarij
os ir
hig
ieno
s re
ikal
avim
us.
Parin
kti ž
alia
vas
ir m
edži
agas
mai
sto
prod
ukto
gam
ybai
. N
usta
tyti
žalia
vų k
okyb
ę.
Nau
dotis
info
rmac
in÷m
is te
chno
logi
jom
is.
Gam
inti
kulin
arijo
s ir
kond
iterij
os
pusg
amin
ius.
Pa
rinkt
i ir t
aiky
ti ši
lum
inio
par
uoši
mo
būdu
s.
Gam
inti
karš
tus
patie
kalu
s ir
kulin
arijo
s ga
min
ius.
G
amin
ti ir
patie
kti š
altu
osiu
s, s
aldž
iuos
ius
patie
kalu
s, u
žkan
džiu
s ir
g÷rim
us.
Įver
tinti
paru
oštų
pat
ieka
lų ir
kul
inar
ijos
gam
inių
kok
ybę.
G
amin
ti m
ielin
ių ir
nem
ielin
ių te
šlų
gam
iniu
s.
Įver
tinti
kond
iterij
os g
amin
ių k
okyb
ę.
Org
aniz
uoti
mai
sto
ruoš
imo
įmon
÷s v
eikl
ą
Profesin÷ veikla, kuria
gali verstis
pažym÷jimo
savininkas
Dar
bo v
ieto
s m
aitin
imo
įmon
÷je
orga
niza
vim
as; m
aist
o pr
oduk
tų ir
žal
iavų
pa
rinki
mas
ir p
irmin
is p
aruo
šim
as; m
aist
o ga
min
ių ru
ošim
as; m
aist
o ru
ošim
o įra
ngos
ir
inve
ntor
iaus
nau
dojim
as ir
prie
žiūr
a
M
aist
o pr
oduk
tų p
arin
kim
as ir
pirm
inis
pa
ruoš
imas
; pus
gam
inių
par
uoši
mas
; ru
gini
ų ir
kvie
tinių
tešl
ų ru
ošim
as,
paru
ošim
as fo
rmav
imui
, for
mav
imas
ir
kepi
mas
; nes
ud÷t
ingų
kon
dite
rijos
ga
min
ių ru
ošim
as iš
mie
linių
ir k
itų
kond
iterij
os te
šlų;
mas
in÷s
gam
ybos
kr
emin
ių k
ondi
terij
os g
amin
ių fo
rmav
imas
ir
puoš
yba.
M
aist
o pr
oduk
tų p
arin
kim
as; k
ondi
terij
os
gam
inių
ir p
usga
min
ių ru
ošim
as; d
arbo
or
gani
zavi
mas
kon
dite
rijos
gam
ybos
įm
on÷s
e; d
uono
s ga
min
ių ru
ošim
as.
M
aist
o pr
oduk
tų g
amyb
os m
ašin
ų,
įreng
inių
bei
įren
gim
ų va
ldym
as ir
prie
žiūr
a;
mai
sto
prod
uktų
gam
ybos
pro
ceso
or
gani
zavi
mas
; mai
sto
prod
uktų
gam
ybos
vald
ymas.
63
Maisto produktų gam
ybos darbuotojo
Maisto pram
on÷s darbuotojo
M÷sininko
M÷sos perdirb÷jo
Kom
petencijos ir
geb÷jim
ai
. Įve
rtint
i ver
slo
aplin
ką.
Išm
anyt
i mai
sto
pram
on÷s
įmon
÷s v
eikl
ą.
Saug
iai d
irbti.
O
rgan
izuo
ti ne
nutrū
ksta
mą
darb
o pr
oces
ą įm
on÷j
e ir
jos
pada
liniu
ose.
Be
ndra
uti i
r ben
drad
arbi
auti.
Vy
kdyt
i mat
eria
linių
ver
tybi
ų ap
skai
tą ir
įv
ertin
ti ūk
in÷s
vei
klos
rezu
ltatu
s.
Tvar
kyti
pirk
imo,
par
davi
mo
ir ki
tą
doku
men
taci
ją.
Parin
kti i
r par
uošt
i žal
iavą
mai
sto
prod
uktų
ga
myb
ai.
Pask
aiči
uoti
mai
sto
prod
uktų
reik
mes
. At
likti
mai
sto
prod
uktų
gam
ybos
te
chno
logi
nes
oper
acija
s.
Įver
tinti
mai
sto
prod
uktų
kok
ybę.
N
audo
tis in
form
acin
÷mis
tech
nolo
gijo
mis
.
Pa
rinkt
i tin
kam
as ž
alia
vas
ir m
edži
agas
m
aist
o pr
oduk
tų g
amyb
ai.
Atlik
ti ža
liavo
s pa
ruoš
imo
tech
nolo
gine
s op
erac
ijas,
nau
doja
ntis
įren
gim
ais
bei
inve
ntor
ium
i. N
usta
tyti
žalia
vos
koky
bę.
Mok
÷ti s
augi
ai d
irbti
Apsk
aiči
uoti
reik
iam
ą ža
liavo
s ki
ekį.
Ruo
šti p
usga
min
ius.
N
usta
tyti
pusg
amin
io k
okyb
ę.
Saug
iai d
irbti
tech
nolo
gini
ais
įreng
imai
s ir
įrank
iais
. Ko
kybi
škai
atli
kti m
aist
o pr
oduk
tų
gam
ybos
tech
nolo
gini
us p
roce
sus.
Įv
ertin
ti m
aist
o pr
oduk
tų k
okyb
ę ga
uto
tech
nolo
gini
o pr
oces
o ta
rpin
iu ir
gal
utin
iu
etap
u.
Supr
asti
mai
sto
pram
on÷s
įmon
÷s v
eikl
ą.
Supr
asti
darb
o rin
kos
kelia
mus
re
ikal
avim
us.
Tink
amai
pas
iruoš
ti da
rbo
viet
ą.
Pa
sirin
kti d
arbu
i tin
kam
us įr
anki
us,
inve
ntor
ių ir
tech
nolo
gini
us įr
engi
nius
. Ti
nkam
ai p
aruo
šti d
arbo
vie
tą.
Saug
iai d
irbti
tech
nolo
gini
ais
įreng
imai
s ir
įrank
iais
. Pa
rinkt
i tin
kam
as ž
alia
vas
ir m
edži
agas
m
÷sos
pro
dukt
ų ga
myb
ai.
Įver
tinti
vers
lo a
plin
ką.
Atlik
ti ža
liavų
par
uoši
mo
tech
nolo
gine
s op
erac
ijas.
įv
ertin
ti ža
liavų
kok
ybę.
Su
dalin
ti sk
erdi
ena
ir ru
ošti
m÷s
os
pusg
amin
ius.
Įv
ertin
ti pu
sgam
inių
kok
ybę.
Ko
kybi
škai
atli
kti m
÷sos
pro
dukt
ų ga
myb
os te
chno
logi
nius
pro
cesu
s.
Įver
tinti
m÷s
os p
rodu
ktų
koky
bę,
tech
nolo
gini
o pr
oces
o ta
rpin
iam
e ir
galu
tinia
me
etap
uose
. M
ok÷t
i ves
ti ap
skai
tą.
Nau
dotis
info
rmac
in÷m
is te
chno
logi
jom
is.
P
arin
kti t
inka
mas
žal
iava
s m
÷sos
gam
inių
ga
myb
ai.
Atlik
ti ža
liavo
s pa
ruoš
imo
tech
nolo
gine
s op
erac
ijas
naud
ojan
tis įr
engi
mai
s be
i įra
nkia
is.
Nus
taty
ti ža
liavo
s ko
kybę
. M
ok÷t
i sau
giai
dirb
ti.
Paru
ošti
stam
biag
abal
ius
ir sm
ulki
agab
aliu
s m
÷sos
pus
gam
iniu
s.
Nus
taty
ti pu
sgam
inio
kok
ybę.
Ko
kybi
škai
atli
kti m
÷sos
gam
inių
gam
ybos
te
chno
logi
nius
pro
cesu
s.
Saug
iai d
irbti
tech
nolo
gini
ais
įreng
imai
s ir
įrank
iais
. Įv
ertin
ti m
÷sos
gam
inių
kok
ybę.
Iš
man
yti m
÷sos
per
dirb
imo
įmon
÷s v
eikl
ą ir
gam
ybos
api
mtis
. Ži
noti
darb
o rin
kos
kelia
mus
reik
alav
imus
. Ti
nkam
ai p
aruo
šti d
arbo
vie
tą
Profesin÷ veikla, kuria
gali verstis
pažym÷jimo
savininkas
Mai
sto
prod
uktų
gam
ybos
maš
inų,
įre
ngin
ių b
ei įr
engi
mų
vald
ymas
ir p
rieži
ūra;
m
aist
o pr
oduk
tų g
amyb
os p
roce
so
orga
niza
vim
as; m
aist
o pr
oduk
tų g
amyb
os
vald
ymas.
M
aist
o pr
oduk
tų p
irmin
is p
aruo
šim
as;
šaltų
ir k
aršt
ų pa
tieka
lų, d
eser
tų,
g÷rim
ų, n
esud
÷tin
gų k
ondi
terin
ių
gam
inių
gam
inim
as; d
arbo
vie
tos
orga
niza
vim
as
Ža
liavo
s pa
ruoš
imas
m÷s
os p
rodu
ktų
gam
ybai
; m÷s
os p
usga
min
ių ru
ošim
as;
m÷s
os p
rodu
ktų
gam
inim
as; d
arbo
vie
tos
orga
niza
vim
as m
÷sos
pra
mon
÷s įm
on÷j
e.
Ža
liavo
s pa
ruoš
imas
m÷s
os g
amin
ių
gam
ybai
; m÷s
os p
usga
min
ių ru
ošim
as;
m÷s
os g
amin
ių g
amin
imas
; dar
bo
orga
niza
vim
as m
÷sos
per
dirb
imo
įmon
÷je
64
Pienininko
Kom
petencijos ir
geb÷jim
ai
Saug
iai d
irbti.
Iš
man
yti a
pie
karv
ių š
÷rim
ą, la
ikym
ą ir
priž
iūr÷
jimą
koky
bišk
o pi
eno
gavy
boje
. At
likti
pirm
inį p
ieno
apd
oroj
imą.
N
usta
tyti
supe
rkam
o pi
eno
kiek
į ir p
aim
ti pi
eno
band
inį.
Tvar
kyti
supe
rkam
o pi
eno
apsk
aitą
. Ap
doro
ti ko
mpi
uter
iu p
ieno
aps
kaito
s do
kum
entu
s.
Eksp
loat
uoti
pagr
indi
nius
pie
no p
ram
on÷s
įre
ngin
ius.
Iš
man
yti p
ieno
pro
dukt
ų ga
myb
os
tech
nolo
gine
s op
erac
ijas.
N
usta
tyti
pien
o pr
oduk
tų k
okyb
ę.
Įver
tinti
vers
lo a
plin
ką.
Bend
raut
i ir b
endr
adar
biau
ti.
Profesin÷ veikla, kuria
gali verstis
pažym÷jimo
savininkas
Pien
o ga
vyba
; pie
no s
upirk
imas
; pie
no
prod
uktų
gam
ybos
tech
nolo
gija
.
ANNEX 4
Lentel÷. Maisto produktų ir g÷rimų gamybos specialistų rengimo programos
Programa Suteikiama kvalifikacija
Kvalifikacijos aprašas
Maisto pramon÷s technologija ir įrenginiai
Technologas ir chemijos inžinerijos profesinis bakalauras
Baigusieji programą dirba technologu maisto pramon÷s įmon÷se, perdirbančiose žem÷s ūkio produkciją. Technologas vertina maisto pramon÷s žaliavų, medžiagų ir produkcijos kokybę, įvertina žaliavų ir maisto priedų funkcines technologines savybes ir naudojimo efektyvumą, parenka kokybiškas žaliavas ir maisto priedus maisto produktų gamybai, analizuoja ir planuoja technologinį procesą, valdo ir kontroliuoja turimus materialinius išteklius, projektuoja technologin÷s įrangos parinkimą ir išd÷stymą pagal technologinių operacijų srautą, diegia prevencinę maisto saugos sistemą.
Maisto produktų technologija
Technologas ir chemijos inžinerijos profesinis bakalauras
Baigusieji programą dirba maisto produktų gamybos ir prekybos įmon÷se, maitinimo įmon÷se, žvejybiniuose ir gamybiniuose laivuose. Jis organizuoja ir vadovauja maisto produktų gamybos technologiniams procesams, vertina produkcijos kokybę, sudaro gamybinių procesų apskaitos pirminę ir suvestinę dokumentaciją, analizuoja ir vertina ekonominius rodiklius, įformina gatavos produkcijos kokybę patvirtinančius ir produkcijos išsiuntimo dokumentus lietuvių ir užsienio kalbomis, bendrauja su užsienio partneriais būsimos veiklos srityje
Neuniversitetinių studijų programos (trukm÷ 3-4 metai)
Maisto pramon÷s verslo vadyba
Vadybos ir verslo administravimo profesinis bakalauras
Baigusieji programą gali dirbti vadybininku ar padalinio vadovu maisto pramon÷s gamybos arba prekybos įmon÷se bei kurti savo įmonę, susijusią su maisto produktų gamyba/prekyba.
Maisto technologijos ir inžinerijos
Chemijos inžinerijos bakalauras
Baigusieji programą dirba įvairiose maisto pramon÷s ir viešojo maitinimo įmon÷se įvairaus lygio gamybos vadovais, inžinieriais, laboratorijų ir kitų skyrių vadovais, gali dirbti maisto įmonių vadybininkais, valstybinių institucijų, susijusių su maisto gamyba ir kontrole, tarnautojais.
Universitetinių studijų programos (trukm÷: bakalauras - 4-5 metai; magistras – 2 metai)
Žem÷s ūkio produktų laikymo ir perdirbimo inžinerija
Mechanikos inžinerijos bakalauras
Baigusieji programą dirba žem÷s ūkio ir maisto produktų perdirbimo įmonių inžinerin÷se technologin÷se tarnybose, įmonių kokyb÷s valdymo sistemose.
Maisto mokslas Chemijos inžinerijos magistras
Baigusieji dirba maisto pramon÷s ir viešojo maitinimo, maisto kontrol÷s ir maisto tyrimų įmon÷se, valstybinių institucijų, susijusių su maisto gamyba ir kontrole tarnautojais.
Maisto produktų technologija
Chemijos inžinerijos magistras
Baigusieji programą dirbą maisto pramon÷s ir viešojo maitinimo, maisto kontrol÷s ir maisto tyrimų bei projektavimo įmon÷se, valstybinių institucijų, susijusių su maisto gamyba ir kontrole, tarnautojais.
Absolventai dirba mokymo ir mokslo įstaigose, projektavimo biuruose, konsultacin÷se tarnybose, kokyb÷s inspekcijoje
Maisto produktų technologija
Mechanikos inžinerijos magistras