Notes on Food Product Development

Resource Description

Food Product Development

• Factors which impact on food product development
• LT: analyse commercial practices in terms of a food company’s response to the macro and microenvironment
• LA: external factors (macro-environment) that impact on food product development, including the:
• economic environment
• political environment
• ecological environment
• technological environment
• Macro environment: factors that influence an organisation that are out of their control.

 

Acronym: Macro PETE

Political Factors: 

Advantages	Disadvantages
Free trade agreements increase demand for product exports. Advisory and research group assistance. Companies abiding to environmental/health laws & initiatives looks desirable to consumers. Democratic gov. supports food industry.	Copyright and patent laws restrict development of me-too products. Tariffs/taxes reduce uses imported ingredients. War & conflict influence food availability. Changes in gov. affects taxation and funding.

• Companies must abide to government-authorised policies and legislation: E.g. FSANZ, Food Standards Code, NSW Food Authority, Food Act 2003.
• These may cover: product safety and claims, employee safety and environment, taxes etc.
• Large companies may gain favour my donating money to political parties.

Economic Factors:

Types of Economy:

• • Recession: downturn in economy. Less disposable income purchases and profit. Decreased employment.

• Expansion: economy grows in production, employment. Consumers feel more financially secure, spend more. High-value products become available.

Boom: consumers spend significantly more on food products, eating out, travel, luxury items. Unemployment low.