By Scott Allen Posted March 11, 2018 06:05:31Food processing is one of the most profitable industries in the world.
In 2016, it generated $6.9 billion in gross revenues, or nearly one-fifth of all U.S. gross domestic product, according to the Food and Drug Administration.
But it’s not easy to make money in a food processing industry that employs more than 500,000 people.
You need to know a lot about the industry to make an informed decision.
Here’s what you need to keep in mind.1.
How much are you willing to pay?
You want to make sure that the price you’re willing to spend is reasonable, according the Food Marketing Institute.
For example, if you’re interested in making a meal with beef or lamb, you may want to pay $10 per pound of beef or $8 per pound for lamb, and you should also consider the cost of preparing the product.2.
Where can you find the cheapest food processing equipment?
If you want to cook food, you’ll need the most efficient equipment to do so, according Food Marketing Intelligence.
This is where you can look for the lowest-priced equipment.
A kitchen or large-scale oven can run $1,000 to $1.50 per square foot, whereas an oven that uses smaller pots and pans can run closer to $100 to $200.3.
How do you determine the right equipment?
You can use the following criteria:1.
What kind of food will you be making?
You should look for a product that is high in protein and low in fat.
You should also look for products that are inexpensive and low-fat.
For a dish of chicken, for example, you should pay $3 per pound, while for a roast chicken, you might pay $2.50 for the same amount of meat.2-3.
What’s the average price of the equipment?
To find the lowest cost equipment, look at what it costs to buy equipment and determine what you can pay.
The cheapest equipment you can buy is usually less expensive than the one that’s sold to you.
For instance, a 1,000-gallon can of boiling water can cost $40 to $50, while a 1-liter can of cold water can run you $60.4.
What should you expect the cost to be?
Food processors typically expect to pay about $100 per pound to the manufacturer of the machinery, or $200 to $300 per pound when you buy the equipment from them.5.
How long do you need the equipment to be in use?
You want to buy the best equipment that’s right for the job you want done.
But don’t expect the food processor to pay you in full every time you’re out of the shop for the day.
You may need to pay the manufacturer for some time for any equipment that needs to be used, according this guide to the best food processing machines.6.
Do you have any financial restrictions?
Food processors have no minimum wage or hours.
If you’re paying them a fixed amount, you need a plan to ensure that you won’t run out of food.7.
Can you charge higher prices?
Food processing equipment may cost more than $1 million per year.
That means if you buy a 1.5-pound can of hot dogs and you can get it to $3.50, you’re likely to spend about $200 on the equipment.8.
Can food processors accept payment through PayPal?
Some processors accept payments through credit cards and PayPal, but there are no guidelines about payment.9.
What are the requirements for insurance?
Insurance companies will not cover equipment that is under warranty, according The National Federation of Independent Business.10.
Do I need to get a license to operate a food processor?
The food processing industries is regulated by the Food Processing Industries Association of America (FIAA), which is an industry association.
To become a food processors member, you must be licensed.
You’ll need a license if you want:1-5 years of experience and training to operate and maintain a food product processing facility; and2-5 people with a minimum of 15 years of industry experience.FIAAs rules and regulations vary widely, there are some general guidelines that food processors should follow.
For starters, food processors must:1, be certified by the food processing organizations; and3, be in good standing.
Food processors are also required to pay their employees a minimum wage of $9 per hour, and to allow them to negotiate overtime, as well as to be fully insured.
You should also pay your workers at least $12 per hour and pay them a living wage of at least the national minimum wage, which is $15.00 per hour.