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Food Processing

Food Processing. AG BM 102. Introduction. Adds value to farm production Creates products consumers want Employs lots of people ~ 90,000 in PA. An Overview. Products Location Competition Issues. Meat. Large Animal slaughter – a few plants Processed meats – lots of plants

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Food Processing

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  1. Food Processing AG BM 102

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

  3. An Overview • Products • Location • Competition • Issues

  4. 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

  5. Boxed Beef

  6. Seltzer’s Lebanon Bologna

  7. Chicken Plant

  8. Dairy • Milk • Cheese • Ice cream • Butter powder

  9. Ritchey’s Dairy Ice Cream

  10. Land O’Lakes Butter/Powder Milk Plant

  11. Farmstead Cheese

  12. Fruits & Vegetables • Canned (Furman’s) • Dried • Pickles, sauces etc. (Heinz) • Frozen (Hanover)

  13. Grain • Flour • Cereal • Pet Food • Animal feed

  14. Brown’s Flour Mill

  15. Rollstands

  16. Sifter

  17. Flour Trailer on Scale

  18. Bakery • Bread • Cookies & crackers

  19. Candy • Chocolate • Other candy • Gum • PA largest candy producing state – Hershey and many more firms

  20. Fats and Oils • Animal • Vegetable • Very little in PA

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

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

  23. Primary Reason for Plant Location in Pennsylvania

  24. Traditional Issues • Efficiency • Competitiveness • Demand • New products • New Technology

  25. Newer Issues • Farm inputs • Labor • Water • Solid waste • Waste water • Food safety

  26. 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? • Campbell’s? • Food conglomerates common

  27. 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

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