Knowledge building on productivity management in food processing sector and sustainable integration in global supply chain

Andhra Pradesh and Odisha are uniquely positioned in developing the food processing sector and reap the benefits due to their comparative advantages in terms of natural resource endowment, long coastal line, and presence of ports. as well as investment in infrastructure development including food parks. They are also leading producers of horticulture, vegetables, and fishery. While these factors are important enablers for the states to progress upward in the value chain, equally important is to pay attention to improving the firm productivity. Low firm productivity is a major stumbling block in India and sound management practices can raise productivity.

It necessitates a minimum level of capacity for the food processing Small Medium Enterprise (SME) firms to establish linkage with and consistently meet lead buyers’ requirements for scale, quality, cost, and labor and environmental standards. Managerial capacity is particularly important for capacity utilization, market responsiveness and adaptability, and economies of scale. It entails knowledge of production processes, quality oversight, responsible and competitive business practices, and sound financial and personnel management. Technological capacity and workforce skills, besides working conditions and cooperative relations, are critical determinants of internal SME capacity, which directly affect product quality and ability to deliver on time.

This workshop organized by the ILO initiative on ‘Promoting Sustainable Enterprises in India (PSEI) will facilitate buyer-seller interaction, understanding of MSME food processing units on expectations of lead buyers and their sourcing practices, guide them to upgrade their management practices, and provide them an overview of the future global trend in the food industry.

Objectives

• Understand the expectations of lead buyers / brands.
• Examine the management tools to improve productivity within the current market situation, and learn from the best practices from other countries and the ILO.

The KOICA funded PSEI initiative supports and guides MSMEs to adopt sound management practices for tapping into potential business prospects and sustainably integrating into the global supply chains. It assists in the value chain development in two labour intensive sectors – textiles and garments, and food processing, in particular, fisheries – in Andhra Pradesh and Odisha. This initiative also contributes toward sustainable, inclusive, and resilient economic rebuilding and recovery, in the two COVID-19 impacted states.