Much of the value added in the food chain happens at this stage and margins are commonly in the range of 10-20 percent. Within the food processing sector there are several distinct subsectors each with its own characteristics, for example meat, dairy, beverages, sugar, snacks and food service. As crop and livestock prices represent the major element of COGS, profit is very susceptible to changes in price. Various forces - with increasing concern over costs, security of supply and traceability - are pushing companies towards ever closer links with suppliers.
The rapid growth of retailers in emerging markets will lead to more efficient supply chains, including less waste, lower prices for the consumer and safer food. Depending on the food type, retailers may source products from any of the previous steps in the value chain: food companies, traders and farmers. As the primary interface with the consumer, in addition to responding to consumer preferences, retailers can play a significant role in influencing them, especially in matters concerning healthy eating and sustainability.
Crop Science
Food and Agricultural Commodities
Consulting
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