Diversification and risk

The difficulty of exploiting food processing waste may be considered from a business management perspective. Because of the specificity of a given raw material and its processing in relation to a particular product, surplus and waste food processing co-products are not readily utilized by the parent processors. Exploitation of the waste would necessitate a degree of diversification which would probably include the formulation of new products for current or new markets. This would create a high degree of risk (Ansoff, 1957; Fig. 1.4), which is not attractive to food industry players, especially since the industry is in a mature state, and the products are mostly commodities. It is not surprising that processors generally prefer their waste streams to be removed from their premises by third parties. The difficulties of dealing with wastes are compounded by the rapid deterioration of biological materials due to autolytic, chemical and microbial spoilage, resulting in a loss of food-grade potential and

Sugar production from sugar beet Wheat starch production Potato starch production Corn starch production Vegetable oil production Fruit and vegetables processing Fruit and vegetables juice production Red wine production White wine production Fresh, soft and cooked cheese Yoghurt production Milk, butter and cream production Poultry slaughtering Pig slaughtering Beef slaughtering Molluscs processing Crustaceans processing Fish filleting, curing, salting, smoking Fish canning

Percentage non-utilized raw material

Fig. 1.3 Indication of the quantity of non-utilized raw material (light grey, minimum amount; dark grey, maximum amount)

(AWARENET, 2004).

Percentage non-utilized raw material y

Fig. 1.3 Indication of the quantity of non-utilized raw material (light grey, minimum amount; dark grey, maximum amount)

(AWARENET, 2004).

© 2007, Woodhead Publishing Limited

Products

Current

New

Current

Market penetration / consolidation

Product development

st

tekr

ra M

New

Market development

DIVERSIFICATION

Fig. 1.4 Ansoff's matrix (after Ansoff, 1957).

Fig. 1.4 Ansoff's matrix (after Ansoff, 1957).

associated value. Such materials would be fit only for non-food applications, or disposal.

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