RDPPTArranged.pptx dvsdvsv jfgj yjeyjy ty

1. The Sixth Saudi Conference on Food and Nutrition,
Helton Hotel- Jeddah, Saudi Arabia
17-19 November, 2015
Professor Hassan A. Al-Kahtani
Food Science and Nutrition Department,
College of Food and Agriculture Sciences, King Saud
University
hkahtani@ksu.edu.sa
Prepared
for
By

2. Structure of Presentation
 What is R&D and its importance?
 R&D in food and agriculture sectors
 R&D expenditure
 Research and development issues
 R&D in food industry
 R&D in food system
 Government involvement in food industry R&D
 Consumer product research
 Product development process stages
 Consumer role in product development
 Management of product development
 Perspectives on R&D in food industry
 Summary and recap

3. What is R&D?
 “R&D is the purposeful and systematic use of scientific
knowledge to improve man’s lot even though some of
its manifestations do not meet with universal
approval.” (Twiss, 1992)
 “To develop new knowledge and apply scientific or
engineering knowledge to connect the knowledge in
one field to that in others.” (Roussel et al., 1991)

4. Why is R&D important?
 Crucial to survival
 Fast changing environment
 Continuous technology change
 Competition
 Changing consumer preferences
 Fundamental to “marketing”
 Advantage is markets come from:
 - Understanding what markets need (MR)
 - In case of technology –selling what is possible to make
 - Efficient production processes

5. Food Industry Research & Development
(R&D) Aims
Basic Aim
 To create new products and launch them successfully on
the market
Specific Aims
 Reduce costs (lower prices)
 Enhance sensory properties (more attractive)
 Improve Nutritional value (dietary needs)
 Improve food safety
 Add convenience
 Offer greater choices of food items to consumer
The end is always consumer satisfaction

6. Q. Is the ultimate aim (effective product development and
successful launching of new products) of all food companies
R&D the same?
A. Yes, but their knowledge and resource bases are very
different
Small Companies
 Usually concentrate their R&D where they have strong
specialist knowledge
Large Companies
 Need research in many areas and face with problems of
integrating the research and coordinating it with the
company’s operating sections

7. Research and Product Development Issues
1. Balancing new product failure with product obsolescence
2. Balancing cots with overall financial setbacks
3. Consumer concerns (media & advertising)
 Pesticides
 Food chemical additives
4. Regulations
 Food industry is one of the more heavily regulated industries.
General regulations (health, safety, labor, factory control, and
waste treatment), specific regulations (food hygiene,
standards, materials, packaging, labelling). This makes
innovation and introduction of new products difficult, long
time for government acceptance

8. 5. Minimal level of high technology
 Food industry grew differently from other industries –
(Electrical Engineering started by applying basic
knowledge of physics to create electric light and motors
– but food industry accumulated a vast resource of
empirical knowledge, craft knowledge gained in actual
life experiences of food preservation, preparation and
cooking (only outstanding innovations, canning,
refrigeration, and irradiation)

9. 6. Lack of funding of R&D in food industry
 Food industry has always been among the low spender
on R&D related to sale
 Recessions and takeovers (common phenomenon) cause
R&D cutbacks and combinations of R&D dept.
 Difficulty of controlling intellectual property in the food
industry (difficult to secure patent and profit from many
foods because small adaptations outside the patent can
give similar products)
 This has provided a basis to produce large quantities of a
product as cheaply and quickly s possible (profits are
made from handling large sales volumes)

10. R&D in Food and Agriculture Sectors
 Crop protection chemicals (herbicides, insecticides,
fungicides)
 Crop seed and biotechnology (conventional and GM seeds)
 Farm machinery (tractors, harvesting, planting, fertilizing
machinery)
 Fertilizers (N, P2O5, K2O)
 Food and animal health (pharmaceuticals, vaccines,
medicated food additives)
 Animal breeding and genetics (poultry, pigs, cattle,
aquaculture)
 Animal nutrition (nutrition feed additives, medicated feed
additives)
 Food manufacturing

11. R&D in basic & minor biological food components
 Proteins
 Carbohydrates
 Lipids
 Flavor compounds
 Colors
 Minerals
 Vitamins
R&D in chemical industry research
 Colors
 Flavors
 Vitamins
 Emulsifiers
 stabilizers

12. Who are the Key Players?
 Companies
 Governments e.g., CSIRO
 Universities
 Future oriented
 Long-term activities

13. Research in Food System
The food system includes
 Production input people
 Farmers and fishers
 Processors
 Manufacturers
 Wholesalers
 distributors

14. Food Research Disciplines and
Organizations
 Food industry R&D need knowledge and expertise
 Always need for contract research from outside
organization (university depts., government research
institutes, private consultants, market research
companies, and biological testing laboratories)

15. University vs Industry Research
 Universities provide the fundamental and basic
research, which tends to be more general
 Universities concentrate on pursuit of knowledge
 Industry research focuses more on:
 Product development
 New technologies
 Understanding of technologies in existing products
 Technologies in manufacturing
 Application of knowledge for commercial purpose

16.  Private sector has become a major player in developing
new innovations for food and agriculture
 Key factors driving private companies to invest in R&D
are;
 Emergence of biotechnology & nanotechnology
 Emergence of new scientific development
 Strengthening of intellectual property rights (IPR) over
innovations (patents, trade mark protection)
 Global market expansion for improved agricultural and
food products
 Consumer demands for more diverse kinds of food
products

17. Integrating R&D to Overall Business Strategy
 R&D should not be independent of business strategy
 R&D is part of the business support infrastructure
 AIMS:
 Provide support of existing businesses by keeping them
competitive and supporting efficiencies
 Drive new businesses and opportunities e.g., 3M’s
discovery of temporary adhesive led to creation of Post-
it notes.
 Broaden and deepen technological capability for long-
term benefits

18.  Private sector spent $ 19.7 billion (56% in food
manufacturing and 44% in agricultural input sector)
on food and agricultural R&D in 2007 (50% of total
R&D spending in high income countries)
 Large firms (multinational operations with global R&D
and market networks ) – 4-8 firms accounted for 75%
of the R&D in each sector
 Globalization of food & agricultural R&D may
accelerate the international technology transfer,
reducing productivity difference across nations and
regions

19. Sales and R&D for Leading Food Manufacturing
Companies in 2008
n.a. = not available; Source: USDA, Economic Research Service using company annual reports and fortune, 2008

20. R&D Expenditure (mean) across Industries
Industry Percent (%)
Pharmaceuticals 15
Aerospace 5
Automotive 5
Chemicals 8
Electrical & Electronics 7
Food 1.5
General Manufacturing 6
Computers 12
Source: UK R&D scoreboard 2001, DTI (2002)

21. Q. Should government have a part in food industry
R&D?
A. Yes, because of three main interests
 Government is responsible for the protection of public
health
 The creation of wealth ,food industry is an important
part of gross domestic product (GDP)
 The enhancement of scientific knowledge
All people are food consumers, and most should be
aware of the risks and benefits of food research and its
technological applications

22. The food industry is always a substantial component of
any country’s industrial base and export potential
 So government and trade concerns
 Concerns activated by hunger, famine, contamination
problems, and the complexities of modern food
science & technology

23. Role of Government in Food Industry R&D
 Varies from country to country and from economy to economy
 From time to time with the urgency of problem
 Create the climate (develop a national strategy and framework for food
research by discussions with industry, science providers, and
consumers (direction for national companies but may not compatible
for multinational companies)
 Governments can facilitate entry of new foods into the food system by
creating a regulatory protocol for new foods
 Government encouragement by reducing the financial costs of
developing new foods by providing or ensuring finance at low interest
rate, tax incentives (giving $ 1 rebate for every dollar spent on R&D)
 Government can help small companies in developing patents
 Establishing linkage program between industrial companies and
universities (funded 50/50 by government and industry)
 Internationally, governments could form joint research centers on food
safety, nutrition, and other consumer concerns

24. Consumer Product Research
Past Now
Consumer requiring
enough raw food items
for their kitchen
Mandating certain
characteristics in food items
 Attractive
 Appearance
 Acceptable eating quality
 Convenience
 Value for money
 Nutrition
 Safety
 Environmental and social
acceptability
overtime

25. Political pressure has been exerted:
 For over 150 years to provide inexpensive and abundant
food
 For over 75 years to provide safe foods
 Within the last 25 years to produce food while
sustaining the environment

26.  Each product combines the above features require a
multidisciplinary group of scientists and technologists
from consumer science, sensory science, nutrition,
product development and process engineering
 Companies develop their methods and system for this
type of research called “Product Development”

27. Convenience Foods
Canned foods
Fully prepared Foods
Partially prepared Foods
Snack Foods
Fast Foods
Health foods
Organic Foods
Natural Foods
Ethnic Foods

28. Recent or modern research under consumer pressure
 Replacing basic fats and sugars to create low-calorie foods
(texture of fat and the sweetness of sugar)
 Food manufacturers cut-back in their research and rely on
specialized food ingredient processors who have
broadened their research programs (product innovation)
Product innovation
 Concentration of food structures, flavors, appearances, and
nutrition even development of final consumer products
(new ingredients, new formulations, and innovative
processing method)

29. Food Production Research Includes
 Design of the final foods
 Design of the raw materials to satisfy the next
consumer link in the food chain
 Control of the production to give consistent quality
and food safety

30. Design in the field
 Consumer demands for natural and fresh foods
 Multidisciplinary research by molecular biologist, plant
breeders, food scientists (food chemistry, nutrition, food
physics, and food engineering) to develop specific foods
 High-protein wheat for bread making
 Weak-protein wheat for cookie-making
 Canola oil for nutritional foods
 Special maize for fiber production
 High solid tomatoes for tomato paste
 Sheep breeds for low-fat meat products

31. Ingredient Research Industry
 Process engineering research base
 Grow through three stages:
1. Extraction and purification of raw plant, animal, and marine
materials
2. Separation of the total material into fractions
3. Treatment of fractions to give specific ingredient properties
 Example
Hydrogenation
(firm fat)
Vegetable
oils
Refining to
remove gums,
colors, odors
Separation into
fat & oil fractions
Cooking and
salad oils & fats

32. Product Development
Aim
 Develop and launch products onto the market
according to the company’s business strategy (R&D
activities)

33. Product Development Process Stages
1. Business analysis
2. Product idea generation
3. Screening
4. Product concept development
5. Product design
6. Product testing
7. Production and marketing development
8. Commercialization
9. Market introduction
10. Post-launch analysis

34. Evaluating R&D Projects

35. Factors Determining Success in New Food
Product Development

36. Consumer Role in Product Development
 Active consumer participation is integral to total product
development
 Consumer surveys and focus groups study
 Analysis of consumer needs and new product ideas
 Developing acceptable product concepts in “consumer
language” and then develop technical design specifications
 Product prototype is tested by consumer (a large-scale
consumer test)
 After the launch – who is buying the product, repeat
buying patterns, how consumers actually like the product

37. R&D Team
 Multidisplanary
 Qualification
 Skills
 Harmonization
 Joint effort
 Groups:
 1- Maketing group 2-Analytical group
 3-Formulation and processing group
 4-Sensory evaluation group 5- packaging group
 6-Microbiology and Quality control group( proper
methodology , HACCP,….)

38. R&D Team Operations
Selected Ideas Benchtop Pilot plant
Commercial
operations
Identification( Identical samples at each stage) is a must

40. Management of Product Development
 Management can control the research quality, outcome, time, and costs
 Management needs to be involved in early stage and in later stages when large
investment decisions are made.
 Overall project must have an objective with predicted costs and timelines from
the beginning of the project
 Allow researchers to work creatively and positively within each stage without
need for bureaucratic controls
 Management must provide an atmosphere for innovation, reduce potential
staff frustration, while still providing guiding controls
 Management and researchers study the outcomes of each stage so that
decisions on stopping or putting more money and time can be made
cooperatively, constructively, and quantitatively (systematically decisions not
just by “gut feelings”)

41. Perspectives on R&D in the Food Industry
1. The food industry needs to cut costs but remain innovative (innovation in
bioscience)
2. R&D will continue to grow in disciplines of chemistry, biotechnology, and
process engineering and more research in molecular biology, microbiology
and biological engineering
3. Food ingredient processors and food equipment engineers are the major
investors in R&D
4. Food manufacturers (companies producing final consumer products) will
continue product development driven by continuing consumer market
demand (increased research on food safety and nutrition)
5. Supermarkets (a domination part of the food industry today) have been weak
in funding research but this may change (research related to food poisoning)
6. Future of food research and development in the next decade – multinational
food companies will continue in domination food industry – they have
sufficient finance for basic R&D – they will not allow the knowledge to become
public (results tightly held and controlled)

42. Summary and Recap
 Food industry abounds with imitators, and products
change quickly (formal intellectual property
protection rights play a small role in motivation
research)
 Failure rate of food products development is high
(>70%) but original concept products are more likely
to be successful than “copy-cat” or “me too” products
 Managing R&D in food industry is not valued as highly
as it should be (managers outside R&D unit rarely
appreciate the value of R&D)

43. con. Summary and Recap
 Firm-level data on food manufacturing R&D are
limited and incomplete
 Expenditures on food manufacturing R&D is
increasing but research intensity in food
manufacturing is low compared in other agricultural
input industries
 Consumer demands product characteristics
(convenience then quality then value) and expect
many new products
 Most of the R&D in the industry appears to be directed
to product, as opposed to process innovations

44. Thanks for Your Attention