NEW FOOD TECHNOLOGY RESOURCE MODE

Entrepreneurship in food area is the driving force for the industry to grow and expand and every new entrepreneur knows how difficult it is to start a new venture in food processing. The biggest hurdle is hard to access information necessary to plan a new venture and once this is overcome the next biggest challenge to sustain them with diligence and devotion. Of course Internet is a precious source of varied information and to day's denizens depend on this source more and more for day to day activities. But for a venture what is needed is information that is reliable and derived from experienced professionals and unfortunately very often internet sources can be confusing and contradictory making them useless as a basis for investment. If a recent report appearing on this issue in some media is to be believed, here is an organization that is doing service to the entrepreneurs through valuable experience based information.

"She knew she was at the forefront of a movement. Four years ago, when Danielle Gould started talking to people about the growing demand for locally produced food and the ways technology could help organic farmers and small businesses thrive, people looked at her like she was crazy. Investors weren't interested in food startups, and it was difficult to fundraise. But she wouldn't take "no" for an answer. She knew she was ahead of the curve, and that everyone else would eventually catch up. Gould started a blog, Food+Tech Connect, to write about open data and agriculture, and bootstrapped it into a company from there. "When I started, I had 50 organizations that were really thinking about food, data, and tech, and then it just exploded. We've grown with the movement," said Gould, the CEO of Food+Tech Connect. Today the company is a site of record and a connector for the food technology sector, with well over 3,000 organizations using the website. What makes the business unique is that it covers the entirety of the supply chain -- from farm management software and restaurant management software to consumer-facing health apps and fitness wearables. The company has weekly infographics that explain aspects of the industry, lists of resources for start ups, and discussions of upcoming trends in agriculture. They also host meetups in New York and San Francisco. And as it turns out, Gould was absolutely right about the demand. Food is one of the fastest growing industries around the world, both in the start up and investment space. In fact, two of the biggest areas in tech investment right now are food delivery services and grocery delivery services, which hit a five-year high in investments during the first quarter of 2014, a 51% jump from 2013. Gould and her three full-time staff members at Food+Tech Connect produce editorial content daily, and the company also hosts hackathons several times a year to tackle big problems in the food industry. They recently held Hack Meat in Palo Alto, to work on projects geared toward the meat industry. Next up is Hack Dining, for the restaurant industry, which will be in New York."

The organization mentioned may be restricting its activities to the geographical boundary of the US but has scope to expand the same to other countries where millions of entrepreneurs are languishing with hunger for information for their plans to invest in the food sector. Each country has its own industry environment and it is understandable that one organization cannot comprehend all of them due to logistical and legal constraints. This is where indigenous organizations have to sprout in different countries to perform the above role. With governments pumping in money to encourage new entrepreneurs to take up agri-based ventures, there is no reasons why service oriented organizations cannot come up similar to the one illustrated above.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com 

INDIAN DOSA FOR NON-INDIANS!-A NEW INITIATIVE IN THE US

It is well known that traditional ethnic foods, evolved over centuries in different cultures are slowly fading into history because of gross negligence of this sector of foods by the scientists, modern nucleus families and the governments in many countries. As the so called modern foods (also being criticized as junk foods or low nutrient density foods) are more amenable to mechanization and automation with minimum manual labor, new industries are coming up only for manufacturing these products thereby leaving ethnic foods category to fend for itself. To day these foods are made mostly by road side vendors and small eateries while the main stream food industry produces a vast array of westernized foods like baked goods, extruded products, sugar confectioneries and chocolates, Pitza and pasta products, fried foods like potato chips etc. Take the case of India where it is estimated that there are more than 5000 varieties of traditional foods prepared and consumed at homes as well as small restaurants and hardly a dozen products can boast of technologies compared to those deployed by the organized industry. Against this background the reported attempt by some entrepreneurs of Indian origin to set up a dosa chain in the United States is daring and visionary in nature. There is no reason why they would not succeed looking at their past experience in other service areas and the high confidence they exude. Here is a take on this development in the Indian ethnic food area in the US for which all must wish for the best.

"We met in 2004 in Manhattan," says Sam, adding with a laugh, "We were swimming in the same waters… We are serial entrepreneurs." They dabbled in real estate for a while, before coming up with the idea of a mass-market dosa chain. "Personally this has been a long quest," says Jawahar. "As an Indian living in the U.S., he says it's frustrating to see that Indian food has never really gone mainstream. You see Mexican restaurant chains like Chipotle. But Indian food is always targeted at the Diaspora. And even they can't eat it everyday because it's so rich, creamy and spicy." They suddenly realised there was a market nobody had noticed before. "Saravana Bhavan is successful abroad, but 90 per cent of its clientele are Indian. However, something like Manhattan's 'Hampton Chutney' (which offers dosas filled with everything from arugula to butternut squash) has a 90 per cent non-Indian clientele." Jawahar adds, "The market is ready. The timing is right. Ethnic food isn't necessarily niche anymore. America is at a stage when people want to experiment… You just have to design it right." The product, they decided, had to be fresh, healthy and tasty. But also portable, quick and convenient. Jawahar says, "And all this at the right price. Around seven and a half dollars." So they created a dosa for Americans. The new company 'Soho Tiffin,' which will launch in New York by October with its first restaurant, has been designed so it can expand into a chain of smart quick-service restaurants offering fresh customisable food. "Each restaurant should be able to do 12 to 15,000 of these dosas with a team of 6-8 people. Although we will have a central kitchen, the food will be fresh. Cooked to serve, not pre-cooked. Meats will be grilled and dosas made on site," says Sam.

Indian dosa means different things to different people and since these entrepreneurs are targeting American consumers mainly lot of standardization work will be required before the launch. Taking inspiration from chain restaurants like Chipotle, Tacobell and others which promote ethnic foods of other countries and which have become vastly popular among American consumers, these entrepreneurs want to create a similar chain with trans American foot print. Since they are zeroing on dosa like products with a western "flavor" which can be called fusion foods it may be relatively easier to build the clientele within a short time. One of the major problems would be the manual dosa making process which may not go well with sanitation obsessed American consumer. Probably the mechanized dosa making equipment of CFTRI design might be an ideal one that can make continuous dosas with reasonably good eating quality and high productivity. Those visiting New York area during the end of this year must look up for the new branded dosa in joints proposed to be run under the Soho Tiffin banner! 

V.H.POTTYhttp://vhpotty.blogspot.com/http://foodtechupdates.blogspot.com

THE "FOOD HUBS"-A CONCEPTUAL MECHANISM FOR LOCAL PRODUCE MARKETING

Increasing farmer suicide cases in India is a disturbing trend that ought to be addressed by the government and there is some how a feeling persisting with successive governments that giving subsidies can take care of farmer problems. No wonder India cannot raise the level of value addition to the agricultural commodities and to a large extent this can be traced to very low entrepreneurial aspirations among the farming community. While saluting hundreds and thousands of villages in the country where millions of farmer families toil hard to produce adequate food for self consumption as well as earning a livelihood through sale of surplus production to non-farming population, the subsistence level of living in grossly under developed village environment with sub-human conditions and daily miseries make them permanently disabled to do any thing constructive. Why the country is not attempting to create village based processing facilities by providing necessary inputs for value addition to the basic commodities is despicable. Even if these unfortunate "second class" citizens of the country are provided the needed financial inputs through government agencies, from where do they get other inputs like technology, infra support and marketing muscle? Here is an example coming from a developed country like the US which has understood the critical importance of food in the local economy and facilitate the processing and marketing of locally produced food materials through creation of "Food Hubs" which link the farmer, local technical resources and the consumer in a sustainable way.  

"By developing a local "food hub," organizers hope they can provide a centralized facility that can buy and aggregate locally produced food and make it available to larger, institutional buyers in the area on a regular basis. "A food hub is that linkage between the local farmers and the institutions, like schools, hospitals, the jail, the grocery stores and the restaurants that want to have access to local foods," said Eileen Horn, who directs the work of the Food Policy Council. "The customers are asking for it, and there's public interest in it, but they can't access enough consistent supply." Horn and other members of the Food Policy Council told Douglas County Commissioners last week that efforts to develop a local food hub in Douglas County will be one of their top priorities in the coming year. "What the Food Policy Council has been talking about in terms of a food hub is really what could be that central site that could aggregate, warehouse, maybe have some cold storage and some light processing for food so it would make it simpler for our community members to access that food from a single point," Horn said in a recent interview. The Food Policy Council was established by the County Commission in 2009. "Basically the Food Policy Council works to identify the benefits, the challenges and the opportunities for a local food system in Douglas County," she said. "So we're looking at what could be the health benefits for the community; what could be the local economic development benefits for our community; and then what are some of the barriers we could look at from a policy perspective to help build a vibrant food system that would support our local farmers and our community members." Traditionally, Kansas agriculture is known for producing a limited number of commodities in vast amounts – wheat, corn and soybeans, as well as beef and pork. But Horn says smaller-scale producers in Douglas County and the surrounding area are now producing large volumes, and a surprisingly wide variety of fruits and vegetables on nearly a year-round basis. She said much of that is the result of local growers investing in "high tunnels" — semicircular hoop structures that are relatively inexpensive and function as modified greenhouses to extend the growing season. "That has really changed the game in terms of season extension, because now you can get greens – there are local greens available in grocery stores right now, in January, and that's because of the season extension and high tunnels and greenhouses that people are utilizing," she said. Local and regional food hubs have grown in popularity in recent years, in part because of support from state and federal departments of agriculture.

India is a country dominated by middle men and pre-harvest contractors who exploit the helplessness of the farmer in cornering the harvested produce at ridiculously low prices and selling the same at exorbitant prices to the easily vulnerable consumer! Elimination of such intermediaries from the system can substantially increase the farmer income while making the same available to the consumer at very reasonable cost. Milk industry under the cooperative sector has demonstrated that producers can get as much as 70-80% of the consumer price by eliminating most of the private players from the scene. The much hyped APMC yards, supposed to be helping the farmer are becoming joke of the country and any how they are going to be dismantled soon under the pretext of economic liberalization and much hyped foreign investment regime. The Agro-industries Corporations in different States which could have been powerful interlocutors with the farmers have been made to wither away through lack of government support. Local foods have great relevance because they are fresh, easily accessible, cost-wise cheaper and have minimum carbon foot print. Sooner such hubs are created better it will be for the farmers and consumers of this country!

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

BUSINESS INCUBATORS-NEED OF THE HOUR FOR FOOD ENTREPRENEURS

A major advantage for big food processing companies is their deep pocket and their ability to innovate using in-house R&D facilities and experienced food professionals. In sharp contrast a small entrepreneur with limited cash in hand faces a huge risk in setting up a venture even under best of the conditions. In a country like India bank financing may be some what easy provided banks are convinced that one has a viable project with low risk. But most entrepreneurs find it difficult to get either the appropriate technology or some minimum hands-on experience for ensuring success after establishing the venture. Here is where the concept of an Incubation Center becomes relevant for the growth of food processing industry. In many countries of the West there are specialized incubation centers catering to diverse interests and food processing incubation centers are also working successfully escorting the entrepreneur till the venture starts production in its own facilities. For an incubation center to be successful there are several pre-requisites which include state of the art equipment and supporting facilities, a good knowledge about food processing, experienced food experts with networking background, closeness to a major food industry cluster and above all a commitment to stand by the entrepreneur till success is achieved. Here is a critique on the importance of incubators in the development of industry.

At many specialty incubators, the goal is more about economic bootstrapping than building the next technology blockbuster. Encouraging entrepreneurship among the poor is a common theme. For instance, La Cocina, a culinary incubator in San Francisco, helps immigrant women with low incomes get food businesses off the ground. First-time entrepreneurs need plenty of guidance with the intricacies of opening restaurants and packaged food businesses. Azalea Perez Olivares, events coordinator and spokeswoman for the food nonprofit, said that the reality check comes during regular informational orientations held before anyone can submit their applications. The message is deliberately sobering. "We try to be realistic—that the majority of food businesses fail," she says. Staff and food industry volunteers mentor those who are selected for the program. Participants almost invariably have to rewrite business plans after better researching the competition and learning about the financing needed to turn their idea into a business. After getting the basics in order, the would-be food entrepreneurs can use the incubator's shared kitchen, which has eight work stations over 4,400 square feet. Food-safety regulations require all food businesses to use a professional kitchen, rather than cook at home. The women who go through the program come out with contacts in the food industry that they would probably never otherwise have been able to get. Additionally, buyers from Whole Foods (WFM), the specialty grocery chain, visit to take a look at the food coming out of the program. So far, 13 businesses have graduated, including a pickle maker and a baker of Irish shortbread that's covered in chocolate. A handful have opened restaurants, such as a graduate who originally sold his Japanese rice balls from a cart.

Who can set up incubation centers and are they viable as a stand alone activity bringing reasonable returns on investment are questions for which there are no clear answers under Indian conditions. Will the large industry cooperate with such incubators for providing hands-on experience for new entrepreneurs wanting to take advantage of the facilities? Are the research institutions in public funded universities and under CSIR, ICAR and others are "fit enough" to undertake the challenges? It may be recalled that way back in early 1990s Ministry of Food Processing Industry (MFPI) provided a grant of Rs 5 crore to Central Food Technological Research Institute at Mysore for setting up a Food Engineering Center which could be eventually converted into an incubator but till to date no one knows the fate of this "Center"! If GOI is serious about development of food industry in the country, it has to create a SPV for setting up such incubators in all the states, preferably in areas where knowledge about food and food processing corridors exist side by side. Institutions like CFTRI, DFRL, NIFTEM, Universities where training facilities exist and others involved in food related developmental work, must join hands and pool their resources to set up a number of food business incubators for creating a new generation of small time entrepreneurs that will boost the role of food industry in the national economy..  

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

TECHNOLOGY PARKS-NEED OF THE ENTREPRENEURS

What prevents countries with predominant agricultural base to establish industries that can add value to the raw materials and provide high employment opportunities? The simple answer is the hopelessness of their infrastructure! A successful industry to be set up must have a vibrant entrepreneur, adequate feed stock of required quality, proper support facilities like power and water in plenty and access to reliable and efficient technology. Why is that in a country like India entrepreneurs are reluctant to set up shop in the rural areas where plenty of land is available? It is nightmare for any small or medium scale industry to operate in rural areas because of gross infrastructure inadequacy even if adequate resources like money and technology are available. The people living in rural areas are increasingly gravitating towards towns and cities, also because of this reason. Rural development seems to be synonymous with "allocation" of funds by the government with hardly any follow up efforts to ensure the money is well used for the purpose it is budgeted! Most Universities where knowledge is generated are located near urban centers and development of healthy industry is closely linked to knowledge development and access. It is here Technology Park concept can remedy the situation some what. An expose on the issue has recently come, of all the places in the world, from Pakistan which provides some sense.

"One of the essential ingredients to establish technology parks is to get tax incentives by the government as in general research process is slow, time consuming and expensive besides the fact that it cannot necessarily come up with 100% result every time. Middle East Technical University (METU) alumni and expatriate Arshad Jameel shared this view during an exclusive interview with The News . He, along with the Turkish delegates, was on a visit to Pakistan to find out possibilities for establishing technology parks in Pakistan. According to Arshad Jameel, the concept and desire to establish technology parks are there in Pakistan but there are certain things that are required to be there which include sufficient academia and senior PhD students. Actually the purpose of technology parks is to convert pure academic research into pure development research for which there will be need of entrepreneurs who are ready to invest besides availability of physical facilities, he said. He said that in the context of Pakistan, the model of technology parks would be different from the traditional model of other countries which is purely high-tech to tackle with some of the serious problems are faced in Pakistan. The establishment of technology parks in Pakistan can help in solving some of the serious problems including water, energy, industry and food as well as building materials, he said".

it was in early seventies of last Millennium some efforts were made in India to establish a Food Industrial Estate in Mysore in India under the aegis of CFTRI, the fountain head of knowledge on food processing at that time and predictability that effort collapsed in absence of support from the local government which thought allotting land is all it required for the industry to flourish. After setting up the SPV in the form of MoFPI by the GOI in nineteen nineties Food Parks both in the private and public sectors were promoted in a big way with financial incentives and the purpose was same viz providing facilities to the entrepreneurs without any hassle. If results of this program is evaluated, one cannot say that the project was a run away success and logically it could not be as the mindset of the Babus that run such programs always cause delay and prevarication, the very antitheses of efficiency and success! If really the rulers of this country had any imagination or vision thousands of villages that suffer indignities and misery would have become India's modern temples of agro-industries wiping out the poverty from the land long ago! The urbanization frenzy created by successive rulers at Delhi has made land near urban areas ultra expensive while rural land does not fetch a fraction of that price! The suggestions made by the Pakistani scholar are eminently applicable to India also and hundreds of Technology Parks funded by the government in many village areas with strong agriculture base and linked to Universities can transform the face of this country beyond recognition, provided they are thoughtfully designed and efficiently implemented.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com