Agri-food

Operation profile

The agri-food industry encompasses the production of food, beverage, and tobacco products. The industry is highly fragmented, with thousands of small independent food processors competing for market share with some of the world’s largest conglomerates.

The representative operation modeled is a small independent food processor, producing medium-value, non-perishable products, such as packed, dried, or canned foods; or confectionery products. As detailed in the following table, this operation is characterized by:

  • Moderate facility and equipment requirements
  • A workforce with a relatively high proportion of lesser-skilled employees
  • Moderate energy requirements.

The business is assumed to operate as a stand-alone profit center.
 

Summary of operating parameters

Industry: Agri-food

Operation: Food processing

Facilities requirements
   Leased industrial site - acres (12,141 m2)
3
   Size of factory - ft2 (4,645 m2)
50,000

Other initial investment requirements
   Machinery and equipment - US $'000
$18,000
   Office equipment - US $'000
$300
   R&D equipment - US $'000
-- 
   Inventory - US $'000
$2,000
   Equity financing - % of project costs
50%

Workforce
   Management
6
   Sales and administration
12
   Production/non-dedicated product development
      - Professional, technical
14
      - Operators
43
      - Unskilled laborers
32
   Other
3
 
Total employees
110

Energy requirements
   Electricity: monthly consumption demand - kWh
370,000
   Gas: monthly consumption - CCF (84,986 m3)
30,000

Other annual operating characteristics
   Sales at full production - US $'000
$40,000
   Materials and other direct costs - % of sales
44%
   Other operating costs - % of sales
6%
   Investment in tax-eligible R&D - % of sales
-- 

International results

International results are illustrated in the following chart. These results reflect the combined impact of 26 location-sensitive cost components applied to the modeled operation. Detailed results for these countries, by individual cost component, are available as a separate table.

City results

The following table profiles results for selected cities, by country, from among the 111 cities featured in this report. Results for all other cities included in the study can be found in the Results lookup section of this website.

Results for selected cities
Industry: Agri-food
Operation: Food processing
North America – lowest cost cities
Country and CityIndex & Rank1
CABarrie, ON90.43
 Montreal, QC90.54
 Toronto, ON90.65
 Quebec City, QC90.76
 Vancouver, BC91.38
MXMonterrey, NL87.51
 Mexico City, DF90.32
USNashville, TN95.030
 Montgomery, AL95.233
 Lexington, KY95.334
 Shreveport, LA95.739
 Youngstown, OH95.840
 Cincinnati, OH95.841
 Gulfport-Biloxi, MS95.842
 Memphis, TN95.943
 Savannah, GA95.944
 Mobile, AL96.045
1  Rank among 111 featured cities.
 
 
 
International locations – all cities
Country and CityIndex & Rank1
AUAdelaide94.124
 Brisbane95.635
 Melbourne93.121
 Sydney93.823
FRMarseille94.427
 Paris94.325
GEBerlin95.638
 Frankfurt95.636
ITMilan94.325
 Rome95.132
JPOsaka94.929
 Tokyo94.628
NLAmsterdam92.115
 Rotterdam92.013
UKLondon95.131
 Manchester90.87
1  Rank among 111 featured cities.

 
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