Agroindustrial project analysi

THE PROCESSING FACTOR 153primary industry. Where local manufacturers of ancillary suppliesexist, the quality of their inputs may not adequately meet the requirementsof export or even domestic markets. This is particularlytrue for packaging supplies because product preservation and appearancecan be important variables in the consumer's purchasingprocess. Maintenance supplies-for example, spare parts-may notbe produced locally because of low demand.The processor may be forced to rely on imported ancillary suppliesuntil these local industries are established or improved. Theprocessor can stimulate their industrial development through contracts,technical assistance, and supervision planned for their improvement.Alternatively, the processor can integrate and beginproducing these inputs. Integration is more feasible when the processor'sinput needs are great or the production technology for theinput is adaptable to small-scale production (for example, cratesproduced with a sawmill). The disadvantages of relying on importsare the foreign exchange requirements, delivery delays, high transportcosts, and import duties.NutritionalconsiderationsThe quality of ancillary supplies for packaging is especially importantbecause packaging can affect a product's nutritional value.Poor packaging, especially in tropical climates, can cause spoilage,a shorter shelf life, and nutritional deterioration in a product. Forexample, canning protects products from insects, microbes, andother agents of deterioration (such as sunlight), but if it is doneimproperly it can cause botulism, an acute food poisoning potentiallyfatal to humans. Yet materials that are needed to preserveproduct quality can significantly increase product costs (and cansometimes even remove a product from the reach of low-incomeconsumers), so that analysts must make the best possible compromisebetween adequate packaging and nutritional needs. The processorshould also be sensitive to the possibly adverse nutritionaleffects of certain preservatives and coloring or flavoring agents.Such added ingredients should be reviewed to see if they meetinternational safety standards.Salient points for project analysisTo examine supplies for processing, the analyst should considerthe following questions.