the agro industrial chain
TRANSCRIPT
7 BIILION
REASONS TO THINK ABOUT 7 TRILLION
Agro-Industrial Chain
of the USD 7 Trillion Food Industry
Concentration - The number of companies in food industry is decreasing,
meaning market power. To countervail power all the other links in the
chain are forced to cooperate and to concentrate as well.
Internationalization - National orientation is being replaced by
globalization. GATT, NAFTA, EEC and Mercosur have a great impact on
the agro-industrial sector and create opportunities for cooperation
between companies in different countries, strengthening of competitive
position, tax privileged imports of agricultural products, new products
and services, etc.
Product Differentiation - An increasing proportion of fresh food
reaches the consumer through retail and food services. Product
differentiation takes place and creates new markets.
Some Drivers ... Interdependent Links
Consumer Understanding - The end consumer of agro-industrial chain is supplied by retailers (60%) and food services
(40%). The rising stars are farmers, breeders and seed producers. In the middle we have food processors and their
ingredient, logistic and equipment suppliers. Being closer to end consumers has being a privilege progressively changed
through technology.
Farmers – They change their technology to reach higher productivity and ROIC using more integrated crop management
procedures with their processing and distributions partners.. Both Wholesalers and Processors require such qualities. The future
farmer, who has to deal with longer range planning, has to be an active partner in the constant developing agro-industrial
chains, understanding the trends to be addressed.
Agro-Industrial Chain
of the USD 7 Trillion Food Industry
... and More Drivers
CHILDREN HEALTH VIABLE INNOVATIVE
7 questions for companies operating in the FOOD INDUSTRY to discuss
1. In which part of the chain do
you invest most?
2. In which area you are
perceived as innovator?
3. What technology do you
master?
4. What are the trend setters
you listen to?
5. How deep do you understand
your added value?
6. How will you add more value
in the near future?
7. Are you leading or following?