INGENIEUR
CHANGES IN FOOD BUSINESSES
By AC Lam ERA Food Industry Committee
FEATURE
The food business has undergone a lot of disruptions along the value chain , where every step or activity is a business by itself . Some disruptive changes which are good in various segments of the food industry are :
Crops , Livestock and Marine Products
Other than the traditional farming methods , there are new approaches to accommodate sustainability and limited land resources , thus new ideas are needed from agro-entrepreneurs , techno-preneurs , eco-preneurs , etc . Some of these new approaches , such as urban farming , vertical farming , circular farming , farm to fork and fork to farms , research stations for durian and other cash crops , are areas of focus by these foodpreneurs . What about bird ’ s nest , aquaculture , and livestock ?
Primary food produce , minimally processed and ready-to-use food ingredients for further processing
Many businesses have been developed by traditional methods , but changes are ongoing to accommodate productivity improvements through new machines , sanitary equipment and automation due to shortage of labour . There are not many big players in this area , which offers big potential for newcomers if they are prepared for some hard work .
Manufacturing , Storage and Distribution
This is where the bulk of the food SMEs and cottage industries are . Many are located in smaller towns , and sub-urban areas where factory overheads are cheaper and some are closer to the sources of raw materials . This is where new ideas are being constantly developed , including Smart Manufacturing , IR 4.0 for Industrial Performance , Central Kitchens for economies of scale and quality consistency , Central Warehouses and logistics , including Cold Chain . Instead of each business having individual manufacturing centres , OEMs are the smart approach to improving costeffectiveness . Already one can get bean sprouts from Ipoh delivered daily to KL , or even Singapore , with better distribution channels .
Retail
Perhaps this is where the battles are fought and won ( or lost ). The multinational retail chains , the rise of mini-markets and convenience stores , kedai runcit in smaller towns , and many groceries stores , not forgetting the 24-hour stores including Petrol Marts along the highways and byways , serve ready-to-consume food products with short shelf-life .
Food Service
This is where Malaysians are very good at . It is the start of many an entrepreneur especially when times are hard . The first skill that can be put to good use and put food on the table for the family when the main bread-winner has lost his or her job , is to rely on the culinary skills which one developed from mothers or grandmothers when he or she was young . Thus , the start of nasi lemak stalls by the roadside , “ KFCs ” ( which stands for Kong-Fu Chow ) and other fried dishes in many eateries , teh-tarik and roti canai , the curry cuisines , pasar malams , meals-on-wheels , wet markets , and a host of other foods . It is food round the clock , anywhere , everywhere ! Many
34 VOL 90 APRIL-JUNE 2022