Food processing

Food Processing - org

Food processing – Best business plan

Food processing is the transformation of raw ingredients by physical or chemical means into food products of various forms. Indian food processing industry is widely recognized as a ‘sunrise industry’, having great potential for uplifting agricultural economy and thus more employment and export revenue. Two agencies MPEDA (for fish and fishery products), and APEDA (for other processed food products) oversees the export of processed food from India.




The first step obviously should be to decide on what you want to produce. This decision should be based on the availability of raw material, market and budget of your business. You must also keep in mind the benefits your product offers customers.

Market Research


After a preliminary research of the market, one must go into an in depth analysis of demand and supply of the product. Market research will help you determine if there is a market for your product. This would be beneficial in generating ideas fine tuning your product, and will also enable you to build a proper distribution network, to decide on a price etc.


A good business plan


Now, is the correct time to put together a business plan ! Whatever you have researched till now should be synthesized and the information about your business; i.e, what it will do, how it will be operated and what your goals are, should be incorporated in a professional business plan. A business plan is required by most lenders and is valuable guideline to follow to improve your company’s chance of success.


Registering your business


Registering your business is a legal requirement for most forms of businesses. There are various options under which you can register your business; Sole proprietorship; Partnership; Co-operative etc. Care must be taken also for naming the business as this name would be your brand name as well.


Food Safety


Food Processing - subAs a food processor, making sure your food is safe is your number one priority. To prevent food safety problems you need to have a well-designed food processing facility, procedures to prevent product contamination, proper food handler hygiene and food handling practices, a sanitation program and a pest management system. 

Product Development


You can always start with small and easy recipes such as Jams or Pickles. But they would have to be modified to suit larger batch sizes. Here, the Food product development comes into play. It involves building on your product idea and fine tuning it so that it is acceptable for commercial sale. Product development also involves all aspects of a product including processing, packaging and labeling. Packaging protects your product and provides a place to present important information and advertising to your customer. A product’s demand is also affected by how it is packaged. A label must be educational, user-friendly, markets the product and meets regulatory requirements.

Marketing, Pricing and Promotion


Marketing is the promotion and distribution of the product to satisfy the customer’s and your needs. In order to properly market your product you must know what is happening in the marketplace. Without good marketing, even the best product can fail. Another important factor is to set correct prices.The setup of a good pricing should take into consideration costs of production,competition, the amount of quality, service and convenience provided and the buyers targeted. The goal is to cover costs, maximize profits and remain competitive. While promotion involves all activities designed to inform, persuade and influence people to make the decision to buy your product.




Distribution channels are the paths that products flow from producer to the consumer. Distributors, or wholesalers, purchase products from food processors and sell them to retail stores. A wholesaler usually represents a number of different products and has greater access to retail stores than an individual processor. Through this channel you will have regular and considerable profit every month.

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