The size and scope of the Indian food ecosystem has been a catalyst for the food processing sector’s growth over the years. Today, India’s food processing sector stands as one of the largest in the world with an output estimated to reach US$ 535 billion by 2025-26. The sector has played an important role in taking local produce from Indian farmers to consumers across the globe.
Danfoss Industries is a major contributor to the growth and advancement of the food processing industry. Danfoss provides solutions that help in sustaining the farm-to-fork process, ensuring freshness all along the way with cold chain machinery installations and automation systems that are reliable, cost and energy efficient. From dairy and fishery products to farm produce such as vegetables and fruits, or processed foods such as bakery items, Danfoss’ technology for food processing provides a safe system for all food items.
Importance of Food Processing
Food processing is a crucial aspect of the food industry that helps preserve food, enhance its shelf life, and improve overall quality. By utilizing solutions such as processing, packaging, transport, cold storage, and refrigeration, raw products of industries such as agriculture, meat, dairy, etc. are given a value addition which enhances the commercial value as also enables the producers and other stakeholders increase the overall value they can derive out of their produce.
The food processing industry plays a key role in linking two pillars of our economy, agriculture and industry. By acting as a bridge between the two pillars, food processing generates substantial direct and indirect employment opportunities. As the nation marches towards its goal of doubling farmer’s income, food processing will further contribute towards this goal as well. Development of the industry will result in an improved quality of final produce which will reflect in an increased demand for agricultural products. This rise in demand will in-turn increase the price paid to the farmer, thereby increasing the income.
Across the globe, a major hurdle faced by the food industry is wastage, with the United Nations estimating that 40% of food produced goes to waste. In India, the situation is equally as dire with NITI Aayog estimating that annual post-harvest losses are approximately Rs. 90,000 crores. Food processing is the solution to this problem as a diversion of extra produce to the food processing industry can reduce food loss. This would further help in keeping the price down and curbing food inflation as processing improves the shelf life of food and ensures supplies match the demand. To address the growing concern caused by food loss, Danfoss’ cooling solutions offer highly efficient and reliable refrigeration systems optimized for ammonia and other natural as well as low GWP refrigerants. Danfoss components are designed to provide the lowest total cost of ownership, while at the same time ensure near-zero downtime in food-processing plants, warehouse & storage facilities.
Promoting the industry – FDI and Policy
The country is taking the right steps to boost investments and ensure growth of the food processing industry. Under the Mega Food Parks Scheme, the Government has authorized the creation of 41 food parks across the country. This effort has resulted in a massive rise in the number of existing food parks, from 2 in 2014 to 22 in 2021.
Further, the Pradhan Mantri Krishi Sinchai Yojana has approved the creation of 353 Cold Chain projects, 63 Agro-Processing Clusters, 292 Food Processing Units, 63 Backward & Forward Linkages Projects & 6 Operation Green projects across the country. Additionally, the Government has provided its approval to introduce the Production-Linked Incentive (PLI) Scheme in Food Products to improve India’s manufacturing capabilities and enhance exports,
By allowing Foreign Direct Investment (FDI) of up to 100% in food processing industries, the country has witnessed FDI equity inflows of over US$ 10.95 billion in food processing industries from 2000 – 2021.
Food processing in the Dairy Industry
India stands as the world’s largest milk producer, with 22 percent of global production. The dairy processing industry in India is expected grow at a CAGR of 14.8%, owing to consistent increase in demand. Owing to the fact that India is also one of the biggest dairy consumers, the increase in demand can be attributed to the increasing population.
Modern dairy industry is highly technological and the demands for temperature control throughout the value chain are rigid. In dairy production, end products such as milk, yoghurt and ice cream require precise temperature management to achieve a consistent quality in a safe and efficient way.
Danfoss has the experience and know-how to act as a competent and trustworthy partner for the national and global dairy industry. Danfoss’ industrial cooling solutions provide their customers with accurate temperature control and a consistent production flow.
Going beyond refrigeration, Danfoss understands the importance of maintaining hygiene. Danfoss brings the required competence from developing and producing stainless steel valves for industrial refrigeration for several years combined with specialized application knowledge. With the introduction of the SVL SS Flexline™ line components in stainless steel, the valve range covers all modern refrigeration systems, including CO₂.
Food processing in the Meat industry
The Meat and Fisheries industry is a crucial segment of the Indian agricultural setup. India is ranked 5th in the world in terms of meat production volume and is responsible for over 3% of the total meat production in the world. The country possesses the world’s largest population of livestock, totaling around 515 million.
Handling meat processing from live animal to frozen or cooled product requires fast, safe, and secure cooling. The components needed to make meat handling safe and healthy with modern refrigerants, such as CO₂ and ammonia, must be produced and fitted with the same care and attention to detail.
Danfoss offers a wide range of stainless-steel components for the meat processing industry, including its SVL SS Flexline™ series of modular line components. These stainless-steel components help maintain a high hygiene and deliver reliable, efficient and environmentally friendly refrigeration for meat processing applications, regardless of production scale and geographical location.
Food processing in Retail
Supermarkets, while playing an important role in taking food products to the end consumer, also surprisingly use over three per cent of global electricity. This alarming statistic demands for a change in how supermarkets operate and a reduction of their carbon footprint.
In addition to electricity consumption, refrigerant usage and more-specifically the type of refrigerant, has become a major concern. With refrigerant regulations being implemented across the globe, the quest for alternative solutions is accelerating even further and CO₂ is now recognized as the most viable and efficient solution among natural refrigerants in supermarket applications.
Danfoss has taken sustainable supermarket solutions to the next level through constant development of sustainable technologies and service concepts. The recently announced, Danfoss Supermarket solutions offer highly efficient refrigeration systems optimized for CO₂ refrigeration and other natural refrigerants. Danfoss components are designed to provide the lowest total cost of ownership, reduce the carbon footprint and ensure near-zero downtime on store applications in order to improve food safety and reduce food loss.
While food processing has come a long way and established itself as an important part of the food industry, technological developments in cooling and refrigeration will further propel the industry into greener pastures. Danfoss’ food processing solutions are on track to keep the world’s food fresh and help avoid waste.