Food Processing

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Food Processing

• AG BM 102

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Introduction

• Adds value to farm production
• Creates products consumers want
• Employs lots of people 90,000 in PA

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An Overview

• Products
• Location
• Competition
• Issues

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Meat

• Large Animal slaughter a few plants
• Processed meats lots of plants
• Poultry several big plants
• A lot of consolidation going on mergers across
  species Tyson bought IBP

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Boxed Beef
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Seltzers Lebanon Bologna
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Chicken Plant
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Dairy

• Milk
• Cheese
• Ice cream
• Butter powder

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Ritcheys Dairy Ice Cream
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Land OLakes Butter/Powder Milk Plant
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Farmstead Cheese
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Fruits Vegetables

• Canned (Furmans)
• Dried
• Pickles, sauces etc. (Heinz)
• Frozen (Hanover)

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Grain

• Flour
• Cereal
• Pet Food
• Animal feed

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Browns Flour Mill
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Rollstands
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Sifter
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Flour Trailer on Scale
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Bakery

• Bread
• Cookies crackers

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Candy

• Chocolate
• Other candy
• Gum
• PA largest candy producing state Hershey and
  many more firms

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Fats and Oils

• Animal
• Vegetable
• Very little in PA

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Beverages

• Beer
• Wine
• Soft Drinks
• About half the jobs beer and half soft drinks a
  little wine
• Produce near consumer

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Other Food

• Coffee
• Ice
• Fish
• Pasta
• Pretzels snack foods (PA biggest in this)
• Other stuff
• Fastest growing category new products

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Primary Reason for Plant Location in Pennsylvania
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Traditional Issues

• Efficiency
• Competitiveness
• Demand
• New products
• New Technology

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Newer Issues

• Farm inputs
• Labor
• Water
• Solid waste
• Waste water
• Food safety

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How many Food Companies will we have?

• Market growing slowly
• Lots of mergers a long-term trend
• Is Hershey too small to be independent?
• Heinz?
• Campbells?
• Food conglomerates common

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Concluding Comments

• Key provider of consumer satisfaction
• Big recipient of food dollars
• Important to PA
• Big employer of PSU grads
• Works closely with suppliers customers to do
  their job better