Agroindustrial project analysi

128 AGROINDUSTRIAL PROJECT ANALYSISduction and that this land not displace acreage needed for staplefood crops.RAW MATERIAL. For some agroindustries the scarcest resource maynot be capital or energy but raw material. Consequently, prioritymust be given to that technology which makes most efficient useof the raw material. That raw material costs are the greatest expensefor most agroindustries was indicated in the previous chapter.Because of this constraint, any technology that can producecost savings here can yield a significant economic benefit.Use of capacityOne of the common problems facing agroindustries is the underuseof capacity because of the seasonality of raw material availabilityand market demand for the product (for example, ice cream,chocolates, or certain beverages). To some extent, the kind of technologyselected can reduce idle time caused by seasonal factors.Many processing steps are the same for different products requiringthe same kind of transformation (see chapter 3, the subsections"Competing uses of raw material" and "For availability"). Consequently,a plant constructed to process beans, for example, canreadily process certain other vegetables or fruits with modest additionalequipment and changes in labor procedures. Similarly,dairies equipped for heat processing or canning could process tomatoesand pineapples.' 3 By adjusting the technology to handle abroader range of products, agroindustries can procure raw materialsover a longer period that encompasses the cycles of different crops.Other means than technological exist for reducing the effectsof seasonality; these include the planting of multiple crops throughuse of irrigation or new seeds; the achievement of shorter breedingcycles through animal genetics; the substitution of stored, semiprocessedraw material (for example, powdered milk; see the subsection"Storage capacity," below) in the production process; andthe introduction of special advertising to consumers during the off13. International Labour Organisation, "Labour and Social Problems Arisingout of Seasonal Fluctuations of the Food Products and Drink Industries,"Second Tripartite Technical Meeting for the Food Products and Drink Industries,Report no. 2 (Geneva, 1978).