The food industry is one of the most important industries both in our country and around the world. It aims at making food products from certain raw materials. It also forms the grocery market.
Focus on raw materials:
The food industry covers many areas. Its main industries are dairy, meat, bakery, alcoholic, oil and fat, fish and others.
The profitability of an enterprise is largely determined by two main indicators: the proximity of the raw material base and consumer demand.
In the first case, it is understood that the closer the raw materials are, the more profitable this production becomes. All food products are made from raw materials: grain, meat, fish, milk. Transport costs, delivery time and, accordingly, the pace of the enterprise depend on their location.
Depending on the raw material base, there are several branches of the food industry. The first category includes those that are required to be located at the source of raw materials. First of all, these are material-intensive enterprises, when the mass of finished products is several times less than raw materials.
The second group includes industries that gravitate towards the place of direct sale, that is, to the consumer. First of all, these are enterprises producing perishable foodstuffs.
The third category is characterized by the fact that at the first stage of production, enterprises are close to raw materials, and at the second - to the consumer.
The location factor such as energy resources is also of great importance. They should always be nearby, otherwise such a business will not be profitable.
Customer focus:
In those cases when products with short sales periods are produced (meat, confectionery, dairy), then the proximity of the consumer market is of great importance. It is impractical to transport such food products to other regions, it is economically unprofitable, therefore they must be sold locally through the nearest retail outlets. For example, centers for the production of fresh meat and sausages are very often located at points of sale.
Despite all this, any enterprise is located within a radius of human accessibility. This greatly facilitates the transportation of the finished product to the consumer.
Food products are in constant demand, so their sale and supply in most cases is not difficult. And food trade is a very profitable business that does not require large financial investments.
