You are a fresh graduate who want to have own business, or a job professional who wants an additional income. Decided to enter in a food processing business. You already prepared the processing area, all the equipment and work staff.
The next part is procurement of raw materials. The first instinct that will flow out your mind is to buy good quality fruits / vegetables / meat or whatever the raw materials maybe. But from the advice of food technologist, the raw materials should be composed of rejects (goods of inferior quality) that are still suited for human consumption and will not pose any danger in health.
Consider the following scenarios:
Rejects are cheap and you gonna make a big income from this kind of raw materials. Like small and bruised fruits. Good quality fruits and vegetables will steepen the cost of finish product thus making it less competitive in market.
A farmer will sell their big and good quality mangoes directly to market. The same is true with pineapple and banana. Good quality produce cost higher and it is more profitable to sell it directly to consumers or via wholesaler.
Many meat retailers are selling ready ground meat. This retailers would not grind good quality meat unless you buy some and tell them to do so. Those meat are trimmings. Who want to buy these trimmings? Retailers could easily sell it at higher cost if they grind it on purpose.
Marvin is the lead chocolate maker of Ben and Lyn Chocolate Inc. Has strong background in food research and development. Occasionally conducts training and lectures. Lecturer of Cocoa Foundation of the Philippines. Do coaching and consultancy services on his free time.