Papers

A Look at your Food and Beverage Supply Chain

How some of the world's biggest names in food production take control of their supply chains—and transform their business. By Quintiq

August 16, 2017

Food manufacturing and complexity go hand in hand. With a host of variables coming into play — supply uncertainty, volatile weather conditions, evolving standards of food safety around the world — there’s no telling where the next disruption will come from.

Despite the challenges, sales and demand are showing no signs of slowing down. In the United States, cattle inventory at the beginning of 2017 stood at approximately 93.6 million heads. According to the United Nations, food production would need to grow by as much as 70% from 2010 to 2050 to meet the needs of 9.7 billion people by the end of that timeframe.

The food and beverage (F&B) industry presents nearlimitless opportunities for forward-thinking players, and manufacturers must understand their business needs to prepare for industry growth.

For those willing to heed the challenge, the returns are worth the complexity. JBS reported 2016 pre-tax earnings of US$3.65 billion, a net revenue of US$54.99 billion and a net income of US$121.4 billion. The global organic F&B market is now projected to reach US$3.28 billion by 2022, bolstered by a compound annual growth rate of 16.4% between now and 2022.


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