Top 5 Processes You Should Not Go With CMU

“Organizations need to focus on the strategical as well as loss oriented areas to be independent.”

The term food industries covers a series of industrial activities directed at the processing, conversion, preparation, preservation and packaging of foodstuffs . The raw materials used are generally of vegetable or animal origin and produced by agriculture, farming, breeding and fishing.

Processes you should be independent

  • Pre processing + processing-sensitive GAP
  • Innovation driven
  • Strong- Backward linkage
  • R&D
  • Above 60% process gap

1. Pre processing + processing-sensitive GAP

  • The pre processing and processing units should be on independent note.
  • Due to policies of discrepancy and own quality assurance every organization should believe in their own driven system in case of processing units.
  • Sensitive GAP needed to be diagnosed and to be close with the help of proper GAP analysis report which will help to bring a strong frame.

2. Innovation driven

  • The innovation driven works are generally cost oriented and need professionals to deal with, hence its always advisable to work within your own personal range.
  • The innovations oriented work should be copy written and claimed for the security of process and financial support.

“The process needs to put in control to work on the status of food processing units.”

3. Strong- Backward linkage

  • Backward Linkage: The feedback effects generated by a base industry on the development of the base sector is called backward linkage. … For example: many food processing industries using agriculture raw materials produce waste that can be used further in production of fuel, bio-fuels, paper pulp and fertilizer.
  • The feedback effects generated by a base industry on the development of the base sector are called backward linkage. The development of the food processing industry has many feed back effects on the agriculture sector itself.
  • For Example, once a food processing industry is established, it results in increasing the demand of raw materials provided by the agriculture sector. The establishment of processing facilities is itself an essential first step towards stimulating both consumer demand for the processed product and an adequate supply of the raw material.

Good Manufacturing Practice (GMP) is a system for ensuring that products are consistently produced and controlled according to quality standards. It is designed to minimize the risks involved in any pharmaceutical production that cannot be eliminated through testing the final product.


4. R&D

A new food or beverage product is one of the most obvious projects in which R&D will be involved. Market research is a notable exception to what may qualify as R&D for tax purposes, but many other parts of the new product development process may be eligible in an R&D tax credit claim

These include:

  • Time spent refining recipe formulation,
  • Experimentation with equipment,
  • Managing environmental factors such as temperature and humidity,
  • The cost of consumables like the ingredients that are tested, heat, water and power,
  • Applicable staffing costs, including plant labour for R&D trials.
  • So whatever the original driver of the project is, all the costs associated with the above should be considered for an R&D tax credit claim.

5. Above 60% process GAP

  • Good agricultural practice (GAP) are specific methods which, when applied to agriculture, create food for consumers or further processing that is safe and wholesome.
  • Good Agricultural Practices (GAP) & Good Handling Practices (GHP) Good Agricultural Practices (GAP) and Good Handling Practices (GHP) are voluntary audits that verify that fruits and vegetables are produced, packed, handled, and stored as safely as possible to minimize risks of microbial food safety hazard
  • Above 60% of GAP analysis report need to be diagnosed properly and personally.

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