Evaluation of JTI's R&D Activities 2005–2008 - Formas

• Internationalisation
- (Bulk) production of food is an international commodity,
i.e. a development that is driven by price competition.
- The processing and distribution chains are international,
while the production side (primary production) is national.
- There is increasing specialisation where one manufacturer
often supplies many distributors. There is much more outsourcing.
- Price competition, with lower margins, which results in
companies minimising their risks and concentrating on
concepts that have been fully developed.
• Production
- Quality assurance of both handling and production.
- Added value and functionality, which also encompasses
quality aspects. In order to counter the pressure on prices,
companies endeavour to create added value that must be
protected. Companies are less willing to take risks, and
want to protect/keep strategic partners in order to secure
unique values.
- Increased interest from the political sphere (Kyoto Protocol
and the issue of climate) and from industry for zero
emissions in energy conversion, e.g. for engines.
- There is development potential in further refining agricultural
raw materials and utilising everything – such as in
the case of crude oil where everything is made use of and
processed at very large scale. This results in a relatively low
price for refined products.
- The functional food segment is getting larger, and development
of both techniques and raw materials will occur in
association with e.g. biotechnology.
• Holistic approach – man, animal, technology, society.
The perspective is quality and not quantity.
- The “Green Sector” is in a unique situation as regards a
holistic approach. The entire chain from production to
town/community and recycling to agriculture is part of
this sector.
- Sustainable production – a strong political goal where the
question is no longer if but when. This, in turn, increases
the importance of a holistic approach – the chain land/
table/land – which is unique to the Green Sector.
- Price is the driving force. Niche production is not free from
competition.
Evaluation of JTI’s R&D Activities 2005–2008
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