- Indiana's food processing industry consists of 487 establishments employing more than 32,000 people. This represents 5.7% of Indiana's manufacturing employment.
- The sugar confectionary market has seen processing and manufacturing being outsourced to Mexico, as U.S. sugar prices remain high in addition to protectionist subsidies. However, many manufactures have turned away from sugar to high-fructose corn syrup.
- The majority of food processing takes place either at the point of agriculture production or at the place of food consumption.
- Indiana does rank among the top 10 producers of dairy products, processed grain, and soft drinks in terms of employment, payroll, and value of shipments.
- Industry leading companies located in Indiana include: Kraft Foods, Edy's Grand Ice Cream, Good Humor Breyers, Pretzels Inc., Red Gold, and Pepsi-Cola Bottlers.
Existing Industry & Employment
- Future economic development within the food processing industry of Indiana depends on 3 factors:
- Economies of agglomeration
- Population is increasing relative to Indiana's neighbors
- "Grow it, and they shall come" mantra.
3 Types of Food Industries
- Supply-Oriented
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Must locate production close to their major material inputs because the inputs are perishable or otherwise expensive to transport relative to the final product price.
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Characterized by slim margins, large plants located in rural areas and tied closely with agriculture.
- Demand-Oriented
- High costs of distribution and storage relative to the finished product price. Pulled by their retail customer locations.
- Labor-intensive with high gross margins, output stability is high.
- Footloose
- Neither assembly costs nor distribution costs dominate this industry.
- Exports are minimal and distribution zones are multi-state.
Industry Regulations
The objective of food regulation is to maintain a safe and wholesome food supply. The type of food, how it is prepared or produced, and where it is to be sold will determine which regulatory agency or agencies are involved. There are MANY regulations ...
Wholesale Foods:
- This is a food product that is produced and packaged at one location and sold at another location by another person or business.
- Regulator: Indiana State of Department of Health and Wholesale Food Protection Program. Such foods may be sold in intrastate or interstate commerce.
- All new wholesale establishments must: notify the state health department 30 days before beginning operations.
- The federal Food and Drug Administration also requires: All food maufactures be registered under the Bio-Terrorism Act.
- As of January 1, 2005, food establishments must have at least one certified food handler in their employment.
- Regulations for processed and packaged foods are found in: 410 IAC 7-21 Wholesale Food Establishment Sanitation Requirements.
- Regulations for certain products such as acidified or low-acid foods are found in: the Federal Regulations, Title 21 & Title 9
- For certain products, such as seafood, meat, and juice products, the FDA requires a Hazardous Analysis Critical Control Point (HACCP) system to be implemented.
Pollution Prevention & Control
- Environmental Management System - Assists business integrate environmental concerns into business decision making, improve compliance, and promote pollution prevention.
- An EMA approach build in periodic review by management and emphasizes continuous improvement instead of crisis management.
- An EMA includes five key elements:
- Environmental Policy
- Planning
- Implementation
- Checking/Corrective Action
- Management Review