EFFICIENCY AND COMPETITIVENESS IN THE FOOD SECTOR

The factors of efficiency and competitiveness of the sector require a dual operational and regulatory framework that addresses commercial relations to supplement the production schemes within the company.

 

For this reason, the Law 12/2013 of 2 August, Improvement of the Food Chain, aims to optimize the interactions between the various actors in the Spanish food chain, so as to increase the efficiency and competitiveness of the agri-food sector, reducing the imbalance of trade relations between the different operators involved. This implies a legal framework for the protection of SMEs and primary producers, often muzzled by the pressures and economic dependence on trading agents.

 

The legal text proposes actions to reduce these imbalances and establish a competency framework for the benefit of the sector, for example, regulating the procurement regime, in particular the purchase of live animals, feed and all raw materials and ingredients used for animal feed and the sale of produce by farmers and ranchers, and introducing the obligation to enter into written contracts for food, where the object and the contract price shall be fixed as well as payment terms, setting clear limits to commercial practices abusive harming producers against large retailers and supermarkets.

 

In conjunction with this regulation of business practices, the law imposes a code of good business practices for greater certainty in contractual relationships, which may join operators, and the creation of the state Registry of good practices in food procurement in the count the attached websites.

 

Moreover, the Observatory on the Food Chain will observe business practices employed by operators in the food chain, analysis of rates and the factors of its development and promotion of those hiring practices is created, typified violations in food procurement. Finally, the CIA and Food Control (AICA, under the Ministry of Agriculture, Food and Environment autonomous body) for control of olive, milk and other markets, is created for improving the functioning of the food chain.

 

This law is complemented perfectly with the Building Integration Cooperative agrifood character whose goal is to enhance the concentration of supply to acquire a greater dimension and structure and thereby have more bargaining power, so you can access the better market conditions.

 

However this new regulatory framework presented in an introductory way, which obviously will mean an operating improvement throughout the national food sector achieve efficiency and competitiveness in the business, is going through a deep analysis and possible reformulation of production processes internal implanted in our companies.

 

Thus, one of the primary factors would be to estimate the structure of business in order to achieve significant and measurable savings, for which organizations must move towards integration transverse processes, studying the daily operation of the processes and adopting cost commitments and objectives of improving inter-departmental linking all productive sections of the company.

 

Moreover, it is also important to analyze the sizing template and if it is tailored to the needs and processes of the company, taking possible formulas for efficient improvement and utility cost criteria.

Finally, the use of new technologies for innovation, both integrated in the production processes and management, break habits obsolete low added value, coupled with feedback to increase corporate illusions of progress and improvement in the company are clear factors that will improve the efficiency of our organization.

 

Regarding diagnosis methodologies to gauge the business efficiency of their production methods, a comprehensive audit or cost analysis in its various activities to be performed, plus any intangible valuing high added value that they bring to the process. Analyze why it is, how it is done, who does it and what use is it for the company, will help us assess the effectiveness of each department and redefine their career goals.

 

Organization and hierarchies, departmental staff structure, production processes and technologies employed, as are the axes to produce the Efficiency Plan that must be asked, as mentioned, and inclusive cross and objectives for improvement and implementation of solutions, practical, achievable, measurable and understandable by all levels of the organization.

 

A qualitative level , the objectives of the Plan will allow to achieve, for example, a reduction in structural costs, productivity growth without increased costs, increased labor efficiency of staff, increased profitability of logistics and commercial processes, etc. Not forgetting that the ultimate goal of our organization is steadily improving results in our relationships with audiences and stakeholders integrated into the corporate culture of the company, so the efficiency plan will also mean a dramatic improvement in customer service optimizing the quality of our products and services and developing a corporate culture change user-oriented and results ultimately increasing our professional competitiveness.

 

Regarding the competitiveness and internationalization of Spanish food businesses and as a document last minute can cite the Strategic Internationalization Plan promoted by the Ministry of Economy and Competitiveness and ICEX, filed May 25, 2014 and made ​​available to businesses Spanish, which includes 41 measures to boost in the medium and long term competitiveness and external contribution to economic growth and job creation in Spain.

 

 

+info:

  • Law of the Food Chain: http://www.boe.es/diario_boe/txt.php?id=BOE-A-2013-8554
  • Information Agency and Food Control (A.I.C.A.): http://aplicaciones.magrama.es/pwAgenciaAO/General.aao?idioma=ESP&avisosMostrados=NO&control_acceso=S
  • Internationalisation Strategic Plan 2014-2015 of the Spanish economy: http://www.icex.es/icex/es/navegacion-principal/que-es-icex/sala-de-prensa/sala-prensa/NEW2014285231.html

 

 

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