Food Processing - May 2008 - (Page 23)

By David Feder, Contributing Editor Faced with seemingly opposing demands of increased emphasis on health and market demand for lower prices, processors appear to be changing the way they approach research and development. at least this year. of all the things R&d departments could be told to prioritize for this year, “manufacturing cost reduction” was in a virtual tie with the obligatory food safety for first place. that’s among the findings of our 37th annual R&d survey. actually, after the year we’ve had, food safety shouldn’t be dismissed so easily. it got 40 percent of the first-place votes (see Figure 1) with cost reduction pulling 24 percent of the ballots (those were the only two of the eight answers to garner more than 10 percent of first-place votes). But when a weighted multiplier was assigned to each vote, the score was even closer. with the low score winning, as in golf, food safety got a 2.69 to cost reduction’s 2.71. the next closest response was formulating products for preventive health, way back at 4.18. according to the write-in comment from nathan morris, director of R&d in snacks at minneapolisbased general mills inc., the dictum will be “margin management – supporting cost reductions in all areas of the business, not just manufacturing.” effect felt throughout the industry. and now consumers in haiti, senegal and pakistan are rioting over high food prices. (and any relief in fuel prices expected by the diversion of corn to ethanol ain’t happening yet, folks.) “the rapid escalation in labor, energy, transportation and raw materials costs – compounded by increased demand for the same resources from the proliferation of biofuels manufacturing – are issues important to the health of the food processing industry in the near future,” says mark miller, plant manager of l.F. lambert spawn co., a coatesville,pa., supplier of products to the mushroom industry. “if these trends continue, it’s inevitable we’ll see much more of our food production going outside the borders, especially for commodities such as fresh fruits, vegetables and grains.” miller then adds, “while this might be good for some big, global businesses, it’s bad for small domestic food and supply-related industries.” Team approach the last two years saw a mad rush to appeal to consumers seeking the “good-for-you” added value of healthier formulations across the board. whether research … “economic issues will hit us all very soon,” adds michael garza, director of product development for tulocay & co., a napa, calif.-based gourmet sauce and condiment manufacturer. “the ability to stay relevant in an economic downturn will make or break many companies.” ingredient prices are through the roof. Rising costs for commodities is having a ripple www.foodprocessing.com into saving money it was retooling recipes and processes to get out trans fats or adding nutraceuticals such as antioxidants, food and beverage makers had their hands full, and everyone was involved on some level. two-thirds of our respondents report they have a formal product development team and another 21 percent say it’s less than formal. only 13 percent said they don’t have a team. may 2008 food processing • 23 Our annual survey finds R&D adapting to tighter economic times. http://www.foodprocessing.com

Table of Contents Feed for the Digital Edition of Food Processing - May 2008

Food Processing - May 2008 Editor’s Plate NewsBites The Trends Rollout Food Biz Kids Product Developer turned Bean Counter The top-selling new products of 2007 The open road Back to the Big Easy Managing the global plant A new column with answers to your plant-fl oor questions New Supplier Products Toops Scoops

Food Processing - May 2008

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