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Globalization Of Food Industry Essay

1100 Words5 Pages

Globalization has subjected the food industry sector to an intense competition in the domestic and international markets (Ruteri & Xu, 2009, p. 70). Extensive capital resources have been used by multinational companies in order to procure skillful talents and modern technologies to meet the needs of the business. They have also invested in research and development (R&D) to produce products and brands in order to match consumer demand and stiff competition. In regard to small and medium food traders, financial resource is one main challenge in meeting the needs of the supply chain. Without capital investment to match the market competition, most small and medium businesses are hindered in growth and profitability (Ruteri & Xu, 2009, p. 73). Among the challenges that come along with the fast growing phase of competitive markets in the food industry lie on the usage of technology, professional personnel, capital resources, managerial abilities and associated infrastructures. Without successful collaboration of food businesses (operational strategies) and support of governments (fair regulations and global policies), economic growth is hindered and food markets can stagnate. Moreover, the growing interests of consumers in regard to customer service must caution food processors in strengthening customer relationships, other …show more content…

The agents procure large quantities of good rated apples from farmers as representative of the retail companies. Oftentimes, farmers can only produce smaller quantities of apples. Thus, the agents collaborate with different growers. The standardization of packaging and assessing the quality of apples is inconsistent, such that immense time and effort is spent while negotiating with farmers. Semi-direct company buyers comprises 30% of the total market of apples in India (Pandey et al., 2013, p.

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