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Global Spice Trade- Indian Panorama

Global Spice Trade- Indian Panorama. Presented by Sibi K Thomas AVT McCormick Ingredients Pvt Ltd Cochin. AVT McCormick Factory. AVT McCormick. Certified Vendor of McCormick USA since 2000 Certified Vendor of 8 MNCs with minimum of 15 customer visits to our plant per year

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Global Spice Trade- Indian Panorama

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  1. Global Spice Trade-Indian Panorama Presented by Sibi K Thomas AVT McCormick Ingredients Pvt Ltd Cochin

  2. AVT McCormick Factory Quality is our Signature, Food Safety Our Guarantee

  3. AVT McCormick • Certified Vendor of McCormick USA since 2000 • Certified Vendor of 8 MNCs with minimum of 15 customer visits to our plant per year • A.I.B, USA audited food safety systems since 1999; “Superior “ rating 2003 -06 • AIBI, USA & Guelph Food Technology Center HACCP Certified • “Kosher” certification from Circle U, USA • “Halal” Certification from Islamic Services of America, USA • ISO9001:2000 new standards certification Quality is our Signature, Food Safety Our Guarantee

  4. Contents • Global Spice trade- • A Historic Overview • Ancient History • Arab/Chinese Spice routes • European Colonial Invasion • British /Dutch Corporate Companies • Cast/Creed/Community Trade • Post Colonial - • Communist blocks • Broker / MNC traders • 20th Century • Consumerism • Globalisation • Information/Communication Explosion • Focus on India • New Era • Future Quality is our Signature, Food Safety Our Guarantee

  5. Global Spice Trade- Historic Overview “He who controls the spice, controls the universe.” Frank Herbert in his science fiction "Dune". In the story, the spice was the lifeblood of a vast empire. For the leaders of this empire, it was essential that at all times ‘the spice must flow.’ Quality is our Signature, Food Safety Our Guarantee

  6. Global Spice Trade- Ancient • Known Historic reference dates back to Pharaohs (Egyptian hieroglyphic inscriptions during the New Kingdom period about 3,600 years ago) • Biblical story of Solomon and Hiram’s joint trade mission to the distant land of Ophir. • Antiquities of the Jews - according to the Old Testament account , 3 Year voyage from the Red Sea port of Ezion-geber ( Israel ) to island of Chryse , far to the east in the Indian Ocean - Suvarnadvipa. mean “Gold Island.” - The East Indies” . • First Historic reference of a Spice - Lignum aloe “Aloes wood.” or Ud from Suvarnadiva or Sumatra Island Quality is our Signature, Food Safety Our Guarantee

  7. Global Spice Trade- Spice routes Quality is our Signature, Food Safety Our Guarantee

  8. Global Spice Trade 1st Century- Medieval • Nomadic spice traders • The route from Gilead to Egypt -"golden road to Samarqand" - thousands of years old, bringing pepper, cloves from India, cinnamon, nutmeg from the Spice Islands , ginger from China • Roman Trade fleets • Discovered monsoon trade winds • Arabs, Chinese traders • Arabs introduced Spices to Europe • Caliphate trade dominance - • Destroyed the old trade route and Blocked the European trade routes • Invasion of Ghengis Khan opened up Europe trade Quality is our Signature, Food Safety Our Guarantee

  9. Global Spice TradeDiscovery of Continents 1450-1550 AD • Voyages of Portuguese( Vasco da gama) • Discovery of India • Voyages of Spanish ( Magellan, Columbus) • Discovery of South Americas, Australia • Discovery of North America • Voyages of Dutch, English and French Quality is our Signature, Food Safety Our Guarantee

  10. Global Spice Trade- Discovery of Continents 1450-1550 AD 15th century saying: “No man should die who can afford cinnamon" "Pope Alexander VI. had bestowed one-half of the undiscovered world upon the Spanish, and the other upon the Portuguese, charging each nation with the conversion of the heathen within its prospective domains. " Quality is our Signature, Food Safety Our Guarantee

  11. Global Spice Trade- Colonisation 1600-1800AD • Spice Wars- Between Spanish forces ,Dutch Forces • Dutch Monopoly in Spice trade • First Corporate in Spice Trade - Dutch East India Company • The Dutch ruled the market with a rod of iron , If the price of cinnamon fell too low in Amsterdam, they burned the spice. • English Invasion and Colonisation • English East India Company - Monopolised the entire trade in Spice • First Backward Integration project- Plantations in Malacca, India • Emergence of India as a major Spice force Quality is our Signature, Food Safety Our Guarantee

  12. Global Spice Trade20-21 st Century • Emergence of Cast and Creed or Community based traders , Brokers • US dominance , Communist block • European US trade behemoths- Man/Cargill • Emergence of US as a the biggest spice importer - 40 Spices- 200000 Mt Imports • Consumerism, Super markets , • Globalisation , • Information explosion, Communication revolution • Closed trade net works to Open trade networks Quality is our Signature, Food Safety Our Guarantee

  13. Global Spice Trade- Focus on India Quality is our Signature, Food Safety Our Guarantee

  14. Global Spice Trade- Focus on India • Trade of Queen and King of Spice - Cardamom and Black pepper since the pre historic times • Introduction of new Exotic Spices by various invading Forces - Chilly from Mexico by Portuguese • Plantations build by British - First Back ward Integration Projects • Organised trade through brokers , Corporate companies • Raw Material trade • Trading Communities and trading skill. • 50-60 years of Futures Trading in Spices IPSTA Kochi • Raw Material trade Quality is our Signature, Food Safety Our Guarantee

  15. Global Spice Trade- Focus on India - New Era • India Emerged as the Spice Hub with 2 Mio Mt production! 1.8 Mio Mt consumption! and 200000 Mt Exports • Future • Raw Material to Value added Products • Food Safety • Back ward integration projects ,Post harvest control • BPO Operation in Food Segment Quality is our Signature, Food Safety Our Guarantee

  16. What is Value Addition? • Value addition is any step taken to increase the value of raw product any time between harvesting and sale of the final product. • Adding value means that the consumers are willing to pay more than they would for a raw product Quality is our Signature, Food Safety Our Guarantee

  17. Keys to success • Quality Products • Consider whether your product is unique enough to survive in market • Market research & test marketing at a small level • Get assistance with product development from local resources • Be consistent in quality, supply, delivery and service Quality is our Signature, Food Safety Our Guarantee

  18. Qualities for Success of BPO In Food Segment • Unique product • Strong agricultural knowledge • Ability to cater to customers • The right kind of labeling & packaging • An enthusiastic promoter of product • Aggressive marketing Quality is our Signature, Food Safety Our Guarantee

  19. AVT McCormick Farms Quality is our Signature, Food Safety Our Guarantee

  20. Quality is our Signature, Food Safety Our Guarantee

  21. Quality is our Signature, Food Safety Our Guarantee

  22. Quality is our Signature, Food Safety Our Guarantee

  23. Quality is our Signature, Food Safety Our Guarantee

  24. Causes of Failure of BPO/Value Addition projects Undercapitalization Inadequate homework Lack of a project champion Mediocre management Short Term Focus These factors account for 90%+ of business failures. Quality is our Signature, Food Safety Our Guarantee

  25. The Planning Process: Implementing a Value-Added Venture A series of plans, with increasing detail and complexity, documents the beginnings of a new value-added business Feasibility Study Business Plan Strategic Plan Quality is our Signature, Food Safety Our Guarantee

  26. Creating a Sustainable Competitive Advantage • DO NOT • Pursue too many opportunities • With little prioritization • Too little resources • Poor execution • Low profitability Quality is our Signature, Food Safety Our Guarantee

  27. Creating a Sustainable Competitive Advantage Successful Value-Added Initiatives Low Processing Costs Low Production Costs Marketing Strategy Differentiated Products Quality is our Signature, Food Safety Our Guarantee

  28. Creating a Sustainable Competitive advantage • Quality control at source to offer Quality from Source • Global Quality requirements differ • How can we achieve quality needs? • Thru processing using state of the art equipment to clean test & certify • Thru control of quality of raw material • Lot selection • Backward integration • Quality Mind Set Quality is our Signature, Food Safety Our Guarantee

  29. Creating a Sustainable Competitive advantage • Understand the customer quality requirements • Study the current agricultural practices • Identify agri practices that lead to quality issues • Develop a agricultural practices to balance quality issues and farmers’ concerns Quality is our Signature, Food Safety Our Guarantee

  30. Basis of Competition The Past The Present Product Vs. Product Supply Chain Vs. Supply Chain Quality is our Signature, Food Safety Our Guarantee

  31. Activities Delivery at port Receiving & Palletizing QC Check + Rejections Warehousing Processing Cleaning & Process loss Treating & Process Loss In Process Storing QC Checks + Rejections Rework Further processing Final Release Distribution Associated costs Included in Price $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ A Traditional cost chain comparison Quality is our Signature, Food Safety Our Guarantee

  32. Activities Delivery at port, ready to use, Palletized With QC Analysis & counter sample Warehousing Processing Packing into small jars Blending into final product Associated costs Included in Price $$$ $$$ $$$ A cost chain comparison: Value added Product The product is ready to use and the cost of rejections, rework and wastages and the wait for product releases at each stage is reduced Quality is our Signature, Food Safety Our Guarantee

  33. Facts we need to Internalize:Category A • Do What You Promised You Would Do • Planning & Detail Orientation is a must • Every body is in business to make a profit. • All people we deal with are equally or more intelligent than us Quality is our Signature, Food Safety Our Guarantee

  34. Facts we need to Internalize:Category B • Speed of response is a must. • the very survival of the company depends on moving fast • Bad news travels fast • All individuals in the supply chain should work with the same information. • Ability to Confront Reality: • of changes in the external world of markets, customers & competitors Quality is our Signature, Food Safety Our Guarantee

  35. 3 keys to success • Quality Products • Good Marketing • Food safety & Total Liability • Sufficient capital Have Vision, take Risks and Believe in Yourself Quality is our Signature, Food Safety Our Guarantee

  36. Thank You!! Sibi K Thomas AVT McCormick Ingredients Pvt Ltd Kochi Quality is our Signature, Food Safety Our Guarantee

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