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How to Keep Food Processing Costs Low In the Agri-Food Business

Posted by OAFVC on Mar 1, 2019 9:00:00 AM

There are five factors that affect your food processing costs during a growing season, including:

  1. Weather: Weather affects each growing season differently. There are many factors that can contribute to poor crops: a season can be too wet, too dry, too cold or too hot. These various unpredictable conditions can result in a shortage of a given crop. And when the weather is optimal during a season, a bumper crop can result forcing prices down.
  2. Pests and disease: These can destroy a crop causing a shortage and prices to increase.
  3. Transportation costs: When the price of oil and gas are higher, this causes transporting food costs to rise. The steps from farm-to-plate, including from the processing facility to the store, have an impact on food prices as well.
  4. Labour: The agri-food system requires a lot of people to make it work, including farmers, packers, processors, retailers and so on. If the cost of labour goes up, such as minimum wage increasing, food prices may increase as well.
  5. Political and economic situations: These can influence the price of food either forcing them up or down. (All About Food)

All these unpredictable factors create a real challenge for local food entrepreneurs in the Canadian agri-food business. Keeping up with the demand for your product while adhering to Canadian food safety standards is a key responsibility for the success of your small batch food production business. Ontario Agri-food Venture Centre (OAFVC) is local and ready to help you meet product demands to your consumers and suppliers, while making sure you meet Canadian food safety standards every step of the way.

How OAFVC Can Help Keep Your Food Processing Costs Low 

nullIn Northumberland County, close to the 401, OAFVC provides a commercial kitchen and food processing centre for local agricultural and food entrepreneurs. OAFVC’s facilities and know-how include:

Learn the Top 3 Agri-food Business Roadblocks

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References:

http://allaboutfood.aitc.ca/article/5-factors-that-affect-food-prices.php 

Topics: Food Processing