Agroindustrial project analysi

118 AGROINDUSTRIAL PROJECT ANALYSIS* Programming and control. The analyst considers the design ofproduction and quality-control systems.* By-products. The analyst examines the economic possibilitiesof secondary outputs of production.Selection of Processing TechnologyTechnology selection is often the most important decision in thedesign of the project's processing operation. The major criteria forselecting the technology are qualitative requirements, process requirements,socioeconomic cost, capacity utilization, managementcapability, and nutritional consequences.Qualitative requirementsThe processing technology to be selected for the project shouldbe tailored to meet the market's requirements for product quality(as determined in chapter 2). Because consumers' preferences forquality vary, there is a range of technological options that willyield varying levels of desired quality in the agroindustrial endproducts. The firm can avoid unnecessary investments and maximizerevenue by modulating its processing technology to the requirementsof its selected market segments. 1 For example, in ricemilling the major qualitative factor governing price is wholeness ofthe grain. The export prices of Thai rice in 1975 reflect this factor:PriceQuality (U.S. dollars Quality discount(percent broken grains) per metric ton) (percent)0 345 05 303 -1215 287 -171. Choosing a technology that will produce a quality superior to that inthe market might be desirable as a competitive tool for increasing marketshare by meeting unmet preferences. Consumers' standards for quality aredynamic. The analyst should, therefore, assess the risk of the technology'sbecoming obsolete from changing qualitative preferences and ascertain meansof improving quality to meet altered needs.