Food industry placement factors

The food industry is one of the most important industries both in our country and around the world. It aims to make food products from certain raw materials. It also forms the food market.

Focus on raw materials:

The food industry covers many areas. Its main industries are dairy, meat, bakery, alcohol, oil-fat, fish and others.

The profitability of an enterprise is largely determined by two main indicators: the proximity of the raw material base and consumer demand.

In the first case, it is understood that the closer the raw materials are located, the more profitable this production becomes. All food products are made from raw materials: grain, meat, fish, milk. Their location depends on transportation costs, delivery time and, accordingly, the pace of the enterprise.

Depending on the raw material base, several branches of the food industry are distinguished. The first category includes those that need to be located at the source of raw materials. First of all, these are material-intensive enterprises, when the mass of finished products is several times less than raw materials.

The second group includes industries that gravitate to the place of direct sale, that is, to the consumer. First of all, these are enterprises producing perishable products.

The third category is characterized by the fact that at the first stage of production, enterprises are close to raw materials, and at the second - to the consumer.

Of great importance is such a distribution factor as energy resources. They should always be nearby, otherwise such a business would not be profitable.

Customer focus:

In those cases when products with short sales periods are produced (meat, confectionery, dairy), then in this case the proximity of the consumer market is of great importance. Such food products are inappropriate to transport to other regions, it is economically disadvantageous, so they must be sold locally through the nearest outlets. For example, in points of sale centers for the manufacture of fresh meat and sausages are very often located.

Despite all this, any enterprise is located within the radius of human availability. This greatly facilitates the transportation of the finished product to the consumer.

Food products are in constant demand, therefore, in most cases their sale and delivery is not difficult. And trade in food is a very profitable business, which does not require large financial investments.