Comparative Position Of Switzerland Agriculture Industry

Published Date: 02 Nov 2017

Introduction:

Comparatively with Switzerland, The Indian Agri products market has witnessed strong growth over the past few years. Liberalization of the economy and growing income of middle class population have had a positive impact on consumer spending and consumption in both rural and urban areas. Indian consumers now spend a significant proportion of their income on Agri products and other essential commodities. Numerous other factors like demographic and macro-economic conditions have also given boost to expenditure on food and beverages in the country.

In Switzerland

The main Agri products safety and quality problems encountered by the country’s exports include; product quality (problem of HACCP), Poor packaging and absence of compliance and health certificates. The mechanism for collection and dissemination of information about the export is not available and is hindered by the Inspection evasion and porous borders. The main Agri products safety and quality problems encountered with the country’s imports include spoilage & nearness to expiry dates; poor handling of dehydration; substandard/fake products; non-indication of production dates; deceitful labeling; over pricing; and instruction manuals in foreign languages.

However, mechanism for monitoring Agri products imports is available, but hindered by the some shortcomings such as instruction manuals in foreign languages; inadequate laboratory equipments & materials; inadequate manpower development. The food laws have been pointed out and they are implemented at Central level by NAFDAC; NIG. Institute of Oceanography and marine research and Federal Ministry of Agriculture; P provincial level by the NAFDAC and state Government Agencies and at the Local Level by the Task forces/LG Authorities, NAFDAC; Primary Health Care Development Agency. Implementation of these laws are faced with various constraints, among which include; issues on food and nutrition and related activities are largely sartorial uncoordinated and limited scope; inadequate powers under some of the legislation; financial, logistics, infrastructural facilities; Time-lag in disposition of sanctions and cases in law court; ineffective monitoring of implementing agencies. The National food standards do not differ from Codex Standards.

The total Agri production in India is expected to double in the next ten years and there is example opportunity for huge investments in Ari products and food processing technologies, skills and equipments.

The food processing industry in India stands at US$ 135 billion and is projected to grow with a compound annual growth rate (CAGR) of 10 per cent to reach US$ 200 billion by 2015.

The food industry is partially divided into various segments namely, milk and allied products (dairy), meat and poultry, seafood, bakery and confectionery, fruit and vegetables, grain, pulses and oilseeds (staple) products, alcoholic and non-alcoholic products (beverages), and packaged food.

The food processing industry in India is witnessing quick growth. In addition to the demand side, there are changes happening on the supply side as well with the growth in organized retail, increasing foreign direct Investment (FDI) in food processing and introduction of new products.

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The fast food industry should not only focus on quality alone, but equally important is how to control and reduce cost. This is because customer cherish high quality product with an acceptable price.

Food Processing Industry

Food processing industry is one of the major sectors in India in terms of production, growth, consumption, and export. The turnover of the total food market is approximately US$ 69.4 billion out of which value-added food products comprise US$ 22.2 billion. India's food processing sector covers fruit and vegetables; spices; meat and poultry; milk and milk products, alcoholic beverages, fisheries, plantation, grain processing and other consumer product groups like confectionery, chocolates and cocoa products, soya-based products, mineral water, high protein foods etc.

India is the world's largest producer of milk, second largest producer of fruits and vegetables and the third largest fish producer and it ranks second in inland fish production. With a huge agriculture sector, abundant livestock, and cost competitiveness; India is fast emerging as a sourcing hub of processed food. India produces 200 million tones (MT) of food grains each year.

India's comparative advantage lies in its favourable climate, geographic location - it is geographically close to key export destinations (Middle East, South East Asia), large agriculture sector and livestock base, long coastline, and inland water resources.

Government of India anticipates US$ 21.9 billion of investments in food processing infrastructure by 2015. Investments, including foreign direct investment (FDI), will rise with strengthening demand and supply fundamentals. The FDI inflow into agriculture and food processing during April 2000-April 2011 was US$ 4 billion.

Beverages

According to a report titled "Indian Non-Alcoholic Drinks Forecast to 2012" by research firm RNCOS, the Indian non-alcoholic drinks market was estimated at around Rs 216 billion (US$ 4 billion approximately) in 2008 and is forecasted to grow at a CAGR of around 15 per cent during 2009-2012. The report covers numerous factors driving the growth of non-alcoholic drinks market in India.

According to findings of the report the highest growth will be seen in the fruit/ vegetable juice market, which is forecasted to grow at a CAGR of around 30 per cent in value terms during 2009-2012, followed by the energy drinks segment at a CAGR of around 29 per cent during the same period.

Investments

Quick service restaurant company Dunkin' Brands will localise its menu in India to have savory products, according to John Costello, Chief Global Marketing and Innovation Officer, Dunkin Brands. Costello said that India's economy and a growing middle class presented a significant opportunity for the US$ 8.4 billion company to

partner Jubilant Food works and the Indian firm's success with Dominos Pizza added to it. It plans to have 500 Dunkin' Donuts outlets in India over the next 15 years.

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The world's largest fast-food chain - McDonalds, is shedding its familiar red and yellow color for more muted tones as it goes for its biggest and costliest revamp in India, in line with its global strategy of attracting more adults. The red and yellow company logo will be replaced with white across 240 restaurants.

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Packaged foods maker Nestle India announced the launch of one of its global programs, Nestle India, to assist coffee farmers and help it optimize its coffee supply chain. It launched the first Nescafe coffee demo farm and training centre in Karnataka under the initiative

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Australia's fastest-growing and most-awarded coffee company, Di Bella Coffee, plans to enter the Indian market with at least six cafés in Mumbai in January 2012. "Our target is the youth. We would offer free internet usage per cup of coffee," as per Sachin Sabharwal, Managing Director, Di Bella Coffee India Pvt Ltd

Government Initiatives

According to the recently announced Union Budget 2012-13 following initiatives will be taken by the Government.

National Mission on Food Processing

A new centrally sponsored scheme titled "National Mission on Food Processing" to be started in 2012-13 in co-operation with State Governments

Steps taken to create additional food grain storage capacity in the country

Subsidies fully provided for effective administration of the proposed Food Security Legislation

To promote private sector activity and invite foreign investments in the sector the Government allows 100 per cent FDI in the food processing & cold chain infrastructure

Road ahead75

India is one of the fastest growing branded restaurants markets in the world, where the organized eating-out market is estimated at US$ 2 billion and growing at a CAGR of 25 per cent.

With massive scope for value addition, growing trend in the consumption pattern of processed food products in India and many fiscal incentives being planned by the Government, this sector is capable of maintaining the growth momentum in the future.

Exchange rate used: 1 INR = US$ 0.01952 as on March 23, 2012.

India’s position in world’s production

Largest producer of milk in the world (105 million tones per annum)

Largest livestock population (485 million per annum)

Second largest producer of fruits & vegetables (150 million per annum)

Third largest producer of food grain (230 million tones per annum)

52% cultivable land compared to 11% world average.

All 15 major climates in the world exist in India.

46 out of 60 soil types exist in India.

20 agri-climatic regions.

Key growth drivers of food processing sector in India:

Increasing spending on health and nutritional foods.

Increasing number of nuclear families and working women.

Changing lifestyle

Functional foods, fresh or processed foods.

Key opportunities in food processing sector:

Processable verities of crop.

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Contract farming.

Investment in infrastructure through public private partnership(ppt)

Mega food parks

Integrated cold chain