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Opportunities & Challenges in Food Processing and Value Addition
1. Opportunities & Challenges in Food
Processing and Value Addition
Dr. S. K. Goyal
Assistant Professor (Stage-III)
Department of Agricultural Engineering
Institute of Agricultural Sciences,
BHU, Varanasi (U.P.)
email: skgoyal@bhu.ac.in
Theme 5 : Food processing, value addition and post harvest technology
2. India has at best achieved only 10% value addition (2% Processing)
when even developing countries have 70 to 80 % value addition.
A higher level of food processing and value addition in the economy can
create a much larger pull for quality agri-commodities, thereby reducing
farm wastages and raising farm incomes.
But we are using Low levels of agro-processing and value addition.
Alarming situation when the world is reeling under severe food crisis
India loses Rs.55,600 crores worth agril. produce every year (equivalent
to approx. 50% India’s Defense budget).
10% of the food grain & 15% of the pulse crop
30% per cent of all fruits & Vegetables
According to FAO (2003a), the reduction of PH losses can increase food
availability to the growing world population, decrease the area needed
for production, and conserve natural resources.
Facts about FPVA
3. Challenges of FPVA
Saturday, January 2, 2021 3
• Identify causes and sources of losses for key crops.
• Characterization of indigenous crops in terms of their unique PH physiology
(e.g. respiration rate, susceptibility to water loss, chilling sensitivity, ethylene
sensitivity).
• Ascertaining the differences between handling recommendations made for
well-known varieties and the needs of local varieties of crops and determining
cost effectiveness of scale-appropriate postharvest technologies for each crop.
• Key issues include building capacity at the local level in postharvest science,
university teaching and extension and continued adaptive research efforts to
match emerging postharvest technologies to local needs.
• Development of appropriate PHT relies upon many disciplines that are
relevant to the overall success of production, i.e. plant biology, engineering,
agricultural economics, food processing, nutrition, food safety, and
environmental conservation.
• The expanding pool of new information derived from PH research and
outreach efforts in these areas can lead in many directions which are likely to
have an impact on relieving poverty in developing countries.
5. Loss (%) at National Level in different operations/ channels
S.
No.
Crop Total loss
In farm operations
(%)
Total loss in
Storage (%)
Overall
Loss (%)
1 Cashew 0.9 0.2 1.1
2 Sugarcane 7.8 0.9 8.7
3 Turmeric 6.7 0.7 7.3
4 Egg 4.9 1.7 6.6
5 Marine fish 1.8 1.0 2.8
6 Meat 1.4 0.9 2.3
7 Milk 0.7 0.1 0.8
6. Opportunities
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• Expand processing level in the for all commodities sectors on
priority.
• Raise processing level from primary/ secondary to secondary/
tertiary for all commodities.
• Modernize the food processing sectors using the efficient
equipment and processes for cost competitiveness and better
quality products.
• Ensure adequate training of workers, supervisors and managers
in food processing industries for efficient operations and
product quality.
• Provide skills and knowledge to farmers for ensuring quality of
produce through adoption of GAP & GFP, and
• Promote seamless value chain including PHM and value addition
in production catchments to obviate the quantitative and
qualitative losses.
7. Value-Addition
Add value towheat
By processing it intoa
product (flour)
Adding Value – Process of changing or
transforming a product from its original state
to a more valuable state
Desired by
customers –
(bread bakers)
8. Formvalue
Location value
Timevalue
Information value
Key Strategies for Adding
Value
11. The Agribusiness System
Input Sector Production
Sector
Processing-
Manufactoring
Sector
Agribusiness System
Note: the success of each part depends upon the proper
functioning of the other two
12. Categories of Agro Industry by levels of Transformation
1/2/2021 12
I II III IV
Manual/Mechanical Mechanical Mechanical /chemical Chemical
Types of processing Activity
Cleaning
Grading
Ginning
Milling
Cutting
Mixing
Cooking
Pasteurization
Canning, Dehydration
Freezing
Weaving
Extraction
Assembly
Chemical Alteration
Texturization
Illustrative Products
Fresh fruits
Fresh vegetables
Eggs
Cereal grains
Meat
Spices
Animal feeds
Jute
Cotton
Lumber
Rubber
Dairy Products
Fruits & vegetables
Meat
Sauces
Textile & garments oils
Furniture
Sugar
Beverage s
Instant food , Textured,
vegetable products
Tires
13. FUTURE FOR FOOD PRODUCTION AND PROCESSING TRENDS
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14. Conclusions
• Physical and quality losses are mainly due to poor temperature management,
use of poor quality packages, rough handling, and a general lack of education
regarding the needs for maintaining quality and safety of perishables at the
producer, wholesaler, and retailer levels.
• Before the produce reached the market, there are multiple factors that can
cause them harm or damage.
• Farmers are losing about 30% and 40% of the value of their fruits and vegetables
before they reach to the final consumer.
• If we realize with honesty we will have to accept that Post harvest processing
and value addition is about 1.5% in India as against 30% post harvest processing
in some countries.
• These losses are observed at harvesting, during packing, transportation, in
wholesale and retail markets and during delays at different stages of handling.
• Strategies aimed at preventing these losses include the use of proper post-
harvest handling practices in order to maintain the quality and safety of fresh
produce.
• Harvested produce must be protected, processed or preserved to ensure food
for all.