Marketplace Need

The food and kindred products industry accounts for approximately 13% of all manufacturing output in the U.S. — The food industry is an ideal market for the introduction of new gas technologies since natural gas holds a majority of the market share in most food segments and is considered the "fuel of choice" for most end-users. Load growth and load retention opportunities exist in the cross-cutting applications of refrigeration, power generation and steam generation. Targeted process-related opportunities exist by improving the food drying, quality, and waste reduction in specific food processes.

Technology

Numerous new and existing technologies exist to address market opportunities in the meat-packing, dairy, fruits and vegetables, grain, and bakery segments of the food industry. In the area of improving food quality, nitrate contamination during the baking process can be minimized with two commercially available gas-based technologies: Maxon's low NOx air heat burner and indirect fired radiant tubes.

The Infrared (IR) Drum Dryer presents an excellent new technology opportunity for increasing gas load in the dairy and grain market segments. The technology utilizes state-of-the-art infrared heating technology to dry food circulating on rotating drums. This drying method decreases the overall footprint while providing high efficiency.

Niche markets present growing opportunities, such as the anticipated need to expand drying capacity for neutriceuticals and herbs. The JREN Spray Dryer technology utilizes pulse combustion to rapidly dry the food product while maximizing energy use and minimizing post drying process (i.e., grinding).

Other new technology opportunities include a food blanching system developed by Key Technologies, the Recyclotron waste reducing system developed by Hudnut Industries, and a variety of infrared heating technologies currently being supplied by a host of equipment vendors.

Customer Benefits

Customers in the food industry are very competitive. An increase in food consumption and competitive pressures offer opportunities for the use of new technologies that improve process efficiencies and increase productivity while maintaining food quality.

Market Segmentation

The market segment (SIC 20 Food and Kindred Products Industry) includes the following major types of food processing plants: Meat Processing, Dairy Products, Preserved Fruits and Vegetables, Grain Mill Products, Bakery Products, Sugar and Confectionery Products, Edible Fats and Oils, Beverages, and Miscellaneous Foods. Each member of the Industrial Center most likely has load growth and retention opportunities in at least one of these plants.

The food industry in general is responding to two key trends: consumers becoming more health-and-nutrition-conscious, and consumers having less and less time to prepare meals. Technology development trends are focused on increasing productivity, improving product quality, and increasing product shelf life.

Market Potential

There is a trend in the food industry to combine fuel technologies. In baking, for example, the initial baking will be done in a natural gas oven and the final baking, which requires precise control, will be done in an electric zone of the oven. Self-generated electricity is growing at a rate of 15% in the food industry.

One strategic channel for introducing new technologies to the food processing industry is the engineering consulting firms that serve this market. The Industrial Center has identified at least eight engineering firms across the U.S. that can be used to support the efforts of technology commercialization. In addition, at least six equipment vendors have been identified that are developing new gas-based technologies for the food industry.

Program Plan

Market Application Analysis: Identify optimum market applications for food process technologies in key market niches. A list of national and local food processing companies will be prioritized and delivered to the members. This list will be segmented by SIC and will allow the members to target high priority prospects that can use existing and new gas-based food processing technology.

Sales Channel Management: Establish formal partnerships with equipment distributors and strategic allies such as A&E firms within each member service area to share demonstration project leads and consortium with the most up-to-date information. Maintain a website to link members with national organizations and local trade allies and their commercialization activities and provide a platform for monitoring food industry activities.

Technical Specialists: A list of technical specialists in the food industry will be developed for consortia members. These specialists may include specific process and equipment type. This resource will be available to assist members in sales cycles where certain expertise is not available "in house", and would be difficult and time-consuming to locate.