Food industry research and development

Earle INTRODUCTION The basic aim of food industry research and development R&D is to create new products and launch them successfully m the market.. The processing and manufacturing se

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FOOD INDUSTRY RESEARCH AND

DEVELOPMENT Mary D Earle and Richard L Earle

INTRODUCTION

The basic aim of food industry research and development (R&D) is to create new products and launch them successfully m the market Some specific aims of strategic R&D are to: reduce costs which lowers product prices; enhance sensory properties that make food more attractive; improve nutritional value to provide for dietary needs; improve food safety; add convenience; and offer greater choices of food items to consumers These benefits come either from constant gradual product improvement or a significant product step change The latter usually comes from new technology-crop, ingredient, process, storage-but it can also come from a new understanding of consumer needs

R&D extends over the total food system and uses multidisciplinary research because of the great diversity in the biological sciences and technologies that are the scientific base of the food system The end is always consumer satisfaction, which includes not only the health and safety of the consumer but also the environment and those who produce the food

The processing and manufacturing sections of the food industry include

a few large multinationals and many small companies While the ultimate aim of all of their R&D is the same, their knowledge and resource bases are very different Small companies usually concentrate their R&D where they have strong specialist knowledge A large company needs research in many areas and is faced with the problems of integrating the research and coordinating it with the company's operating sections Both sized companies aim at effective product development and successful launching of new products Communication and complexity in

L T Wallace et al (ed ), Government and the Food Industry: Economic and Political Effects of

Conflict and Co-Operation, © Kluwer Academic Publishers 1997

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the food system itself pose problems for both large and small firms

Should government have a part in food industry R&D? The answer is yes because of three main interests: the protection of public health, the creation of wealth, and the enhancement of scientific knowledge All people are food consumers, and most are aware of the risks and benefits of food research and its technological applications Political pressure has been exerted for over 150 years to provide inexpensive and abundant food; for over 75 years to provide safe foods; and within the last 25 years, to produce food while sustaining the environment

The food industry is always a substantial component of any country's industrial base and export potential Recent concerns about food increasingly extend across governments and trade areas, activated by issues such as hunger, famine, contamination problems, and the complexities of modem food science and technology

RESEARCH IN THE FOOD SYSTEM

The food system, which is an involved network, moves materials and products along a chain It includes production input people, farmers and fishers, processors, manufacturers, wholesalers, retailers and distributors For example, wheat from the farm is sorted and cleaned by specialized technology; then ground into flours and brans which are separated into flour, starch and glutens; the starch is treated to change its properties; and the flour, starch and gluten are recombined to make bread, cookies, extruded snacks, gravy powders, cake mixes, soup mixes, canned meals, and sausages For some raw food materials, the process may involve even more steps, while for others, the material can go almost directly to restaurants

or retailers Hence, food research means many things, ,md often, the only common feature is that the final food product is eaten

Production Research Everything starts with gathering or

cultivating crops, raising or hunting fish, birds and animals Commercial farming produces most raw food materials and is also rapidly becoming important for fish cultivation Food production research includes design of the final foods, design of the raw materials to satisfy the next customer link in the food chain, and control of production to give consistent quality and food safety

With increasing consumer demands for "natural" and "fresh" foods, there is corresponding pressure to start food product design in the field Recent developments in molecular biology related to plant breeding promise real possibilities for multidisciplinary research by molecular biologists, plant breeders and food scientists to design and develop specific foods These will be a source of step-change innovation Already, the apple industry is developing and launching a continuous stream of different types of apples (Braebum, Fuji, Pacific Rosp) The kiwifruit

industry is pOised to do the same, and some chemical companies (Zeneca) are also active in using molecular biology research

Ingredient design for processing started over one hlU1dred years ago by plant breeders producing high-protein wheats for breadmaking, and weak-protein wheats for cookie-making Tailoring examples include canola oil for nutritional foods, special maize for fiber production, high-solids tomatoes for tomato paste, and sheep and hog breeds for low-fat meat products Future multidisciplinary research will combine molecular science and plant breeding with food chemistry, nutrition, food physics and food engineering

Ingredient Research In the last ninety years, process engineering

research was the basis for the ingredient industry This industry grew through three stages: purification of raw plant, animal and marine materials; separation of the total material into fractions; and finally, treatment of these materials to give specific ingredient properties For example, with vegetable oils, first the colors and odors were removed, then the clear oil was separated into fat and oil fractions, and ultimately hydrogenated to give firm fats Today, there is a wide span of separation and treatment processes which offer consumers many different cooking and salad oils and fats

The same sequence of R&D has occurred with both basic and minor biological food components: proteins, carbohydrates and lipids; flavor compolU1ds, colors, minerals and vitamins Chemical industry research introduced colors, flavors, vitamins, emulsifiers and stabilizers to the food industry Recent research has led, under consumer pressure, to new materials replacing basic fats and sugars to create low-calorie foods which still have the texture of fat and the sweetness of sugar

Modem ingredient-industry companies anticipate consumer food notions Their goal is to continuously introduce new ingredients so tha t they, too, can keep ahead of competition As food manufacturers cut back

in their research efforts, more is necessarily being done by the specialized ingredient processors This research area has, in tum, broadened their research programs Their research not only reviews new raw materials and processing possibilities, it also probes the development of final consumer products This research has concentrated m food structures, flavors, appearance and nutrition in its product innovation Business expectations of food manufacturers have consequently changed so that most now rely m food processors for final consumer products as well as new ingredients, new formulations and innovative processing methods

Consumer Product Research Over time, consumers have moved

from simply requiring enough raw food items for their own kitchens, to mandating certain characteristics in the food items: attractive appearance, acceptable eating qualities, convenience, value for money, nutrition, safety, environmental and social acceptability Each product combines these basic features in different ways Research aims to identify consumer needs and concerns, and then design products that will satisfy

them It requires a multidisciplinary group of scientists and technologists from consumer science, sensory science, nutrition, product development and process engineering All companies marketing conswner products have developed their own methods and systems for this type of research called Product Development

Distribution Research Ever since the opening of the spice trade

routes, there has been a movement of raw food materials over long distances Apples are distributed from the southern hemisphere to markets in the U.S and Europe, chilled lamb is shipped from New Zealand to the UK, and chilled pork from Thailand to Singapore More stable raw materials such as wheat and rice move from the U.S to China, vegetable oils are shipped from Malaysia to the UK and U.s., and sugar moves worldwide Not only do food materials flow from one country to another, some materials may be grown in one country, processed in another, and manufactured in a third Some food products can contain 20 different ingredients, all from different countries

Consumer products have to be stored and displayed for final sale, a potentially harsh environment because of fluctuating temperatures and light Research about storage and physical distribution tries to reduce costs, increase storage life and improve product quality at the end of the distribution chain

There is an increase in research about "fresh" foods, intensified by consumers'desire for what they perceive as unprocessed foods However, even "fresh" food products are processed by controlling their packaging and certain environmental conditions so as to increase storage life while retaining original appearance and structure Con.<;wners even want processed foods such as soups to be presented looking "fresh," as if they just came from the kitchen stove

Final foods must be safe as well as attractive, so distribution research combines the work of food technologists, microbiologists, engineers and sensory scientists Distribution research is often conducted by equipment suppliers in combination with producers and/ or food manufacturers It can also be done in research institutes or government laboratories which have the combination of needed specialist skills Although food processors and manufacturers carry out research m storage and transport, their focus is seldom on the complete distribution system

PRODUCT DEVELOPMENT

The food industry has developed many methods of product development because of the endless demand for new products These processes are used by both large and small food companies

Aim of Product Development The aim of product development

is to develop and launch products onto the market which will further the

company's business strategy and fulfill its needs for the future Product development and R&D activities are essential components of the company's business strategy This contrasts with the former dominant view of food industry R&D as an expendable "tag-on" to main company activities The lesson learned is that if product development is recognized

as a method of ensuring a company's future, then R&D becomes an essential main-line company activity

Product Development Process The product development process has two distinguishing features: it has clearly defined stages with critical analysis of the project between stages, and secondly, it integrates market, consumer, product and processing research The broad stages are: business analysis, product idea generation and screening, product concept development, product design, product testing, production and marketing development, commercialization organization, market introduction, and post-launch analysis

Consumer Role in Product Development Active consumer

participation is integral to total product development Consumer surveys and focus groups study and analyze consumer needs and new product ideas They also help in developing acceptable product concepts in "consumer language." Product designers take the acceptable product concepts, and then develop technical product design specifications

Testing of prototype products by consumers is done when product prototypes satisfy design specifications This begins a constant cycle of developing and testing until an acceptable prototype is created Products from the development section should be evaluated by a large-scale consumer test Once a marketing plan has been developed, it should also be tested After the launch, it is necessary to monitor markets to identify who is buying the product, whether there are repeat buying patterns, and how consumers actually like the product

Management of Product Development The product development process should be designed so that management can control the research quality, outcome, time and costs Projects need to be based m the company's business strategy of aims, objectives and constraints If the overall project does not have a well-defined aim, and each stage is not given an objective with predicted costs and timelines from the beginning of the project, there is no way to critically analyze the project after each stage is completed New information and consequent changes need to be part of the management decisions at each stage

Clearly defined stages, costs and timelines allow researchers to work creatively and positively within each stage without need of bureaucratic controls while ensuring the responsibility of producing effective results at the right time At various points between stages, management and researchers can study the outcomes of each stage so that decisions m stopping or putting more money and time into the project can be made cooperatively, constructively and quantitatively It is highly preferable that such decisions are made systematically, not just by "gut feelings,"

despite the risk and uncertainty of success Management needs to be involved in the early stage of the project, as well as in the later stages when large investment decisions are made It is management's responsibility to provide an atmosphere that encourages innovation and reduces potential staff frustration while still providing guiding controls-not an easy problem to solve

RESEARCH AND PRODUCT DEVELOPMENT

ISSUES

In addition to the problems common to all industries-balancing new product failure risks with product obsolescence, and R&D costs with overall financial setbacks-the food industry has some unique issues which include consumer concerns about science and technology, extensive regulation, minimal levels of high technology knowledge, and lack of research funding

Consumer Concerns Consumers are concerned about the relationship of science to food, particularly pesticides sprayed on crops, chemicals added to foods during processing, and preservatives used to increase product storage life This has been a concern of people for centuries, intensified in recent years because of three factors: industry-driven changes in ingredients and processes without much research on their effects on the consumer; intense media interest in additi yes and nutrition; and the use of advertising by food companies to degrade competing products and companies To satisfy consumers, new developments in food industry R&D have to include research on how the products affect the consumer, coupled with a relevant communication/information program

Regulations The food industry is one of the more heavily

regulated industries In addition to the general regulations about health and safety, labor and factory control, and waste treatml'nt, its regulations cover food hygiene, standards, materials to be used in foods, packaging and labeling This makes invention and introduction of new foods difficult For example, if there are strict standards for bread, minutely detailing the ingredients and even the method of processing, what happens when someone invents a new bread-type product using different technology and different types of ingredients? Can the product be called bread according

to the regulations or must it be given another name, although to consumers

it looks and eats like bread? If it needs a new category not specified in existing regulations, it takes extensive time-consuming investigations to become accepted by government regulators Difficulties like these can discourage companies in follOWing innovative paths needing R&D

Minimal Level of High Technology The food industry has

grown from age-old groups of crafts into an economic sector increasingly based on science and technology However, it grew differently from other

industries such as electrical engineering Electrical engineering started only a short hundred years ago by applying basic knowledge of physics to create electric light and motors In contrast, the food industry, over many thousands of years, accumulated a vast resource of empirical knowledge gained in actual life experiences of food preservation, preparation and cooking

There are only a few outstanding recent innovations in the food industry, e.g., canning, refrigeration and irradiation Mostly, it has been a case of taking craft knowledge, mechanizing and refining it, and developing variations For example, the early mechanical mixers in breadmaking duplicated the actions of the breadmaker, the continuous cheesemaking equipment the actions of the cheesemaker Formulations came from craft recipes or even housewives' cookbooks Equipment and processes were developed from the historic processes already occurring, and not from basic scientific knowledge At first then, there did not seem

to be a need for R&D in food manufacturing companies, especially those with advanced process engineering Because of this lack of high technology, it became difficult for management to have control of intellectual property rights over new ingredients, processes and especially products

Developments in ingredient processing came also from chemical engineering research applied to biological systems It was those companies producing oils, starches, sugars, and proteins which began to base their industries on sophisticated R&D University teaching of food science did not initially recognize the need for teaching process engineering

at a high level; graduates tended to be non-quantitative and simply followed old craft philosophies, although in a more knowledgeable way

It was only in recent years that universities saw the need to regard food technology in the same way as other branches of engineering, with a base

of relevant sciences accompanied by high level teaching of specialist engineering/ technology This change will raise the level of technological knowledge in the food industry and the need for additional R&D

Lack of Funding of R&D in the Food Industry Compared

with other industries based on process engineering, the food industry has always been among the low spenders on R&D related to sales Recessions and takeovers, a common phenomenon in the food industry, cause R&D cutbacks and combinations of R&D departments which can lead to a general reduction in R&D funding Other reasons for low funding of R&D include its only recent emergence as a science-based industry, the marketing domination in many food companies, the difficulty of controlling intellectual property in the food industry, and the small margins on which the food industry works In the original craft industry, management believed problems could be solved by observation, and tha t new products came from invention; in the technology-based industry, developments come from either technological or market research Many of the food companies are so market-oriented on satisfying present market

needs, they miss the importance of long-term development

Except for a new raw material or piece of processing equipment, it is difficult to securely patent and profit from many foods because small adaptations outside the patent can give similar products This rationale has provided a basis for much of the food industry to produce large quantities of a product as cheaply and quickly as possible Profits are made from handling large sales volumes Concentration on low prices with low margins has intensified recently with the increasing price control by supermarkets Food industry firms only too easily see R&D eroding their slender margins In contrast, in the pharmaceutical industry, where there

is highly specific control by patents, high margins can be held long-term so that extensive R&D can be funded from them

It is often said that new developments in industry come from small companies, but in the food industry, small companies have difficulty finding venture capital They do not appear to have the exciting returns

of, for example, biotechnology companies As a result, lack of cash flow causes small food companies to fail regularly If innovative companies are

to survive and grow, they must be able to find finance to help them develop and market new products

FOOD RESEARCH DISCIPLINES AND

ORGANIZATIONS

In food industry R&D, there is an inescapable need for knowledge and expertise in a range of scientific and engineering disciplines It is not usually possible to have all these different types of research within a single firm, so there is also a need to contract research from outside organizations

Organizations outside the food industry doing research include: university departments of food science and technology, food engineering, agricultural engineering, microbiology, veterinary science; government research institutes of food, nutrition, health, agriculture and commodities; industry research institutes; and private consultants, market research companies and biological testing laboratories

Food manufacturers seldom do nutritional research, unless involved in determining food compositions for nutritional labeling or marketing health and new functional foods Much food chemistry research is done by suppliers of food ingredients and large multinational companies looking for significant innovations Emphasized again by the ingredient companies, research into food structures has grown in importance

Food safety research is usually conducted by government organizations since it is a public health concern and often controlled by regulations However, large food manufacturers do a great deal of food safety research and all food companies are involved when one of their

products is found to be a health problem Microbiology is a research area for food safety and hygiene but it is also important in the development of new fermented foods

Types of Food Research Disciplines

TYE.e Areas of Research Research Ors.anizations

Nutrition Compositional analysis, Government research/

data banks, physiology, health institutes, biochemistry, nutritional needs, universities,

Food Chemistry Compositions, processing and Universities, government

storage reactions, research institutes ingredient synthesis

Food Structures Physical properties-appearance, Universities, government

texture, form, structure research institutes Food Safety Chemical and microbiological Health institutes,

toxins, food poisoning, university veterinary animal-transmitted diseases departments,

biological testing labs Food Microbiology Food safety, preservation, Universities, government

Sensory Science Flavor, appearance, Universities, consultants,

texture, food acceptance market research

companies

Food Process Processing operations- Equipment suppliers, Engineering drying, freezing; university agricultural and

reaction kinetics food engineers

Molecular biology is being used by microbiologists to produce new enzymes and microorganisms intended to improve present processes and help develop new products

Sensory science developed from food manufacturing companies testing laboratories "Taste" was always important in food products and has always been tested by food companies However, since such empirical testing of food products was shown to be fallible, new techniques and knowledge have led to the development of sensory science in the larger food companies and also in universities Market research companies were slow to develop in sensory science but they, too, along with consultants, are now active

Food process engineering is the quantitative study of food processing Surrounded by so many craft-derived food processes, it is only in the last 30 years that research methods of engineering have been applied to their quantitative study This expensive research is centered in food equipment supplier laboratories, and in those of large food processors and manufacturers

Research Focusing and Integration There is a dichotomy in

food research There is a need to focus in specific areas so that the depth

of knowledge is increased, and at the same time, there is a need to have broadly defined multidisciplinary research so that several aspects of the process and product can be studied together These needs cause problems

On one hand, scientists looking at the narrow area feel satisfied that they are doing "pure" or "basic" research, while they complain of great difficulty in achieving technology transfer into the industry On the other hand, the multidisciplinary group of scientists, engineers and technologists is expected to produce a different kind of basic knowledge while being pushed to develop specific product or processing technology Neither feels properly appreciated The two approaches must be integrated before advances needed in food research for the next century can

be achieved

PERSPECTIVES ON R&D IN THE FOOD INDUSTRY

The food industry feels it needs to cut costs but remain innovative A major recent trend is the quickening pace of innovation in the biosciences of which the food industry needs to take advantage Even so, slipping margins and changing market shares have pushed food manufacturers to cut costs, and research is often the identified target Increasingly, to fi 11 the gap, food ingredient processors and food equipment engineers have become the major investors in R&D

Ingredient Food Processors It is expected that R&D will continue to grow in the disciplines of chemistry, biochemistry and process engineering, with increased research activity in molecular biology, microbiology and biological engineering

Food Manufacturers Those companies producing final consumer

products will continue product development driven by the continuing consumer market demand Increased research CI1 food sa fety and nutrition will be needed A challenging task for food manufacturers is to study consumer concerns and then design appropriate research programs so their products can be perceived as healthy, safe and honest If they are to profitably market so-called designer foods with specific nutritional effects, then as much research will be needed for them as is needed in proving the safety and efficacy of pharmaceuticals This will require a level of research not yet seen in food manufacturing companies Additional