Essay On Food Processing Industry

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Impact of food processing industry on other sectors

Food processing industry is undoubtedly one of the most essential industries in development of a country especially for the developing country like Malaysia. Subsequently, food processing industry will bring direct impact toward agriculture sector. For example, agriculture sector will be affected if food processing industry faces any difficulties and lead to reduction in production. This occurs because when there is reduction in food processing industry, this illustrates that the raw material required for production is reduced and thus lead to lack of demand of raw material in agriculture sector.
Impact of other sectors on food processing industry
According to the data accumulated, the food
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Then those raw materials send to the food processing industry. The food processing industry will use those raw materials (input) to produce food (output) in their operation. When the bad whether such as raining season happened, this caused the production in agriculture sector will decrease in the grace period. Automatically, the price of raw material will increase the food processing industry need to pay the higher cost to buy those raw materials. As the result, the profit earned by food industry will decrease. The food industry will transfer the cost to the consumer by increase the price of food by increasing their profit. Then, this caused the demand from consumer will decrease. Indirectly, the food industry have to keep low production due to low demand from consumer. As low expenditure from consumer, the national income will decrease. This is because expenditure is the main component to measure national income. Y= AE + I + G +(X-M). So, this will slow down the economic growth.
Thus, food processing industry might have a positive impact for the other sectors. Therefore, our Minister should more concern about food industries development and the economic growth as it can cause the industrial
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