A global view
Consumer concerns over cost, health and environmental sustainability are driving innovation in the global food and beverage manufacturing sector.
Supply chains are being influenced by shortages of raw materials, and changes in the way people are shopping, specifically ecommerce. At scale, this requires automation along the supply chain, more efficient distribution centres and changes to the transport industry.
Large-scale producers are also changing their energy mix, with Mars Wrigley recently opening its first 100% renewable energy ice cream factory in France, which it says will save up to 600 tonnes of CO2 a year.
Executives from CRB, an American firm which provides engineering, architecture and construction solutions to the industry, say this is reflected in new processes and product development.
Vice President (Food and Beverage) at CRB, Jason Robertson, and Product Innovation Fellow, Tony Moses, say for example, production of alternative proteins (cell-based or plant-based products) is scaling up.
Low-temperature pasteurisation (high-pressure processing or HPP) “is gaining traction among food producers for more natural applications, such as naked juice [and] ice cream,” they write. HPP kills any bacterial contamination that may have been picked up during processing although it does come with challenges, “including the equipment expense, the need for packaging that can withstand intense pressure and…products may need to be refrigerated.”
Meanwhile, the proliferation of products such as kefir, kombucha and dairy free yoghurts that provide for improved digestive or ‘gut’ health, are a reaction to consumer demand for more health-conscious options. Pacific responses to this trend include the success of Juice Fiji’s range of prepackaged juices.
The demand for sustainability is also demonstrated in packaging, with companies like Nestle and KraftHeinz committed to using only recyclable, reusable or compostable packaging by 2025. Anchor has developed a two-litre milk bottle made from sustainably-sourced sugar cane; perhaps an opportunity for Fiji’s struggling sugar industry.
On the factory floor, global labour shortages are causing some concern.
FMF Foods, which is listed on the South Pacific Stock Exchange, noted the local implications of this in its recently-released annual report, with Chair, Jenny Seeto writing: “The already challenging labour environment was further exacerbated by the Seasonal Worker Programs and short-term work contracts offered by Australia and New Zealand which resulted in loss of skilled staff. The Group acted to further strengthen our team by focusing on improving retention and offshore recruitment. We are focusing on ongoing training and highlighting career path opportunities.”
Papua New Guinea’s Paradise Foods, which celebrates its 90th anniversary this year, says it is committed to enhancing local talent development.
“Paradise Foods will continue to participate in programs that bring in students to complete internships with the Company as part of building local talent, improving our employment brand and maintaining a healthy talent pipeline,” the company states.
Labour constraints are also seeing plants increasingly automate processes, to improve efficiency and flexibility of production and supply chain management.
In PNG, Paradise Foods has installed a new biscuit oven in its Lae plant, has invested in a new distribution centre in the same city, and plans significant upgrades to its Queen Emma Chocolate Factory in Port Moresby to improve and increase output to target international markets with cocoa mass, cocoa butter, cocoa powder, and finished chocolate. The Nambawan Super fund has increased its investment in Paradise Foods to 100%, providing capital for plant investment.
In Lae, PNG, Goodman Fielder is building what is expected to be the region’s largest flour mill. Wilmar International, which owns and operates Goodman Fielder, recently agreed to an MOU with the PNG government which will be signed this year.
Agriculture Minister Richard Maru said Wilmar was interested in partnering with the government as an equity partner to invest in rice, chicken, oil, palm, sugar and feed production and processing in PNG, and that this would “increase exports, reduce the cost of food in PNG, and drive the downstream processing agenda of government.”
