Food Manufacturing

Food Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture and process a wide variety of foods, including meats, seafood, dairy products, fruits and vegetables, milled grains and oilseeds, baked goods, and candy. Major companies include ADM, Conagra Brands, Frito-Lay, General Mills, Kraft Heinz, Mondelez International, and Tyson Foods (all based in the US); along with COFCO (China), Danone (France), Fonterra (New Zealand), Grupo Bimbo (Mexico), JBS (Brazil), Maruha Nichiro (Japan), Nestlé (Switzerland), and Unilever (UK).

COMPETITIVE LANDSCAPE

Food consumption drives demand, and this depends on population growth. The profitability of individual companies depends on efficient operations because products are commodities subject to intense price competition. Companies compete largely based on cost and their ability to distribute the finished product. Large companies have economies of scale in purchasing and distribution. Small companies can compete effectively in local or regional markets and by developing popular products. The industry is concentrated: the 50 largest companies account for about 50% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include beef, which accounts for about 10% of the industry revenue, followed by young chickens and natural cheese at about 5% each. Other products include bread and processed poultry.