Food Safety and Growing Core Brands a Top Priority For Processors

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Food safety issues, food security, and bioterrorism are becoming and have been top topics of concern with a war immanent. Plants continue to service and set up HACCP programs and systems to fight, control and detect pathogens and irradiation system installations at the plant level are at an all time high. Not only is the industry on the lookout for harmful pathogens like e-coli and salmonella, but also the enemy is taking other forms.

Agriculture and food processing plants do not spring to mind as a prime terrorist target, yet it is a critical part of our national infrastructure. A deliberate introduction of a virus, bacteria, or fungus that attacks our crops or food processing plants could severely impact our nation's food production and international trade. Plant and product security is evolving to ensure no product tampering is taking place and it is everyone's responsibility to enforce.

After a 2002 recovery year, the food and beverage industry should have a more robust 2003. The industry used the soft economy of 2002 to digest pervious acquisitions and realign operations for growth when the recovery begins. The continued development and marketing of major top brand names will drive food & beverage companies' growth in the coming years. Consolidation will continue to propel the industry and it is likely that this sector will show early merger activity in 2003 over the rest of the economy due to relative strength and stability.

Jay Brunson, Industrialinfo.com's Food & Beverage Manager adds, "Looking at this industries past, merger activity dropped off considerably last year with only 219 mergers and acquisitions taking place during the first six months of 2002. That represents a 26% decline from the same period in 2001. With the exception of a few major deals, the merger activity for 2003 should remain at levels seen last year."

For more information regarding capital spending in the food & beverage industry, join Jay Brunson, Food & Beverage Manager for Industrialinfo.com as he is interviewed by Crazy Al on Industrialinfo.com Radio's Industry Today Program airing live Monday Morning at 7:30 cst.

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