Design/methodology/approach The paper attempts to make business incubation a strategy not only for new and emerging technologydriven firms but also for large industrialized corporations. In addition, it argues that, in the new economy, creativity, innovation and entrepreneurship should not be the exclusive routine or practice of only small firms but should also be a part of large. PDF International Cases on Innovation, Knowledge and Technology Transfer is monograph edited by Dariusz M. Trzmielak and David V. Business Incubation Industry study since it is. Study notes
Levels: AS, A Level
Exam boards: AQA, Edexcel, OCR, IB Share: Share by email
The Five Forces Model was devised by Professor Michael Porter. The model is a framework for analysing the nature of competition within an industry.
The short video below provides an overview of Porter's Five Forces model and there are some additional study notes below the video.
Introduction Background - the Nature of Industry Competition
Every market or industry is different. Take any selection of industries and you should be able to find differences between them in terms of:
Size (e.g. sales revenue, volumes, numbers of customers)
Structure (e.g. the number of brands and competitors)
Distribution channels (how the product gets from producer to final consumer)
Customer needs and wants (the basis of marketing segmentation)
Growth (the rate of growth and which businesses are growing faster or slower than the market)
Product life cycle (the stage of the life cycle for the industry as a whole and for products and brands within it)
Alternatives for the consumer (e.g. substitute products)
The result of the above differences is that industries vary in terms of how much profit they make. To take two examples:
Why do airlines make so little profit (and such big losses)? There are several factors, including:
Very intensive competitor rivalry mainly on price
Low barriers to entry lots of new airlines who want to set up
Suppliers of aircraft equipment are powerful can charge high margins
Customers have lots of substitute options e.g. rail, car
High fixed costs airline losses rise significantly if revenues fall only slightly since it costs roughly the same to fly half-empty planes as full ones
By contrast, why are profits so high in the soft drinks market? The answer is mainly that:
Customers and suppliers have little power Pepsi has many millions of individual consumers, and thousands of retail distributors none of whom has much influence over the business
There is high brand awareness loyalty = less consumer desire for substitutes
High barriers to entry how do you enter a market dominated by Coca-Cola and Pepsi?
What we have illustrated above is some analysis that you would obtain by considering the Five Forces Model.
Porter identified five factors that act together to determine the nature of competition within an industry. These are the:
Threat of new entrants to a market
Bargaining power of suppliers
Bargaining power of customers ('buyers')
Threat of substitute products
Degree of competitive rivalry
He identified that high or low industry profits (e.g. soft drinks v airlines) are associated with the following characteristics:
Let's look at each one of the five forces in a little more detail to explain how they work.
Threat of New Entrants
If new entrants move into an industry they will gain market share rivalry will intensify
The position of existing firms is stronger if there are barriers to entering the market
If barriers to entry are low then the threat of new entrants will be high, and vice versa
Barriers to entry are, therefore, very important in determining the threat of new entrants. An industry can have one or more barriers. The following are common examples of successful barriers:
What makes an industry easy or difficult to enter? The following table helps summarise the issues you should consider:
Bargaining Power of Suppliers
If a firm's suppliers have bargaining power they will:
Exercise that power
Sell their products at a higher price
Squeeze industry profits
If the supplier forces up the price paid for inputs, profits will be reduced. It follows that the more powerful the customer (buyer), the lower the price that can be achieved by buying from them.
Suppliers find themselves in a powerful position when:
There are only a few large suppliers
The resource they supply is scarce
The cost of switching to an alternative supplier is high
The product is easy to distinguish and loyal customers are reluctant to switch
The supplier can threaten to integrate vertically
The customer is small and unimportant
There are no or few substitute resources available
Just how much power the supplier has is determined by factors such as:
Bargaining Power of Customers
Powerful customers are able to exert pressure to drive down prices, or increase the required quality for the same price, and therefore reduce profits in an industry.
A great example in the UK currently is the dominant grocery supermarkets which exert great power over supplier firms.
Several factors determine the bargaining power of customers, including:
Customers tend to enjoy strong bargaining power when:
There are only a few of them
The customer purchases a significant proportion of output of an industry
They possess a credible backward integration threat that is they threaten to buy the producing firm or its rivals
They can choose from a wide range of supply firms
They find it easy and inexpensive to switch to alternative suppliers
Threat of Substitute Products
A substitute product can be regarded as something that meets the same need
Substitute products are produced in a different industry but crucially satisfy the same customer need. If there are many credible substitutes to a firm's product, they will limit the price that can be charged and will reduce industry profits.
The extent of the threat depends upon
The extent to which the price and performance of the substitute can match the industry's product
The willingness of customers to switch
Customer loyalty and switching costs
If there is a threat from a rival product the firm will have to improve the performance of their products by reducing costs and therefore prices and by differentiation.
Overall Degree of Competitive Rivalry
If there is intense rivalry in an industry, it will encourage businesses to engage in
Price wars (competitive price reductions),
Investment in innovation new products
Intensive promotion (sales promotion and higher spending on advertising)
All these activities are likely to increase costs and lower profits.
Several factors determine the degree of competitive rivalry; the main ones are: Share: Share by email Jim Riley
Jim co-founded tutor2u alongside his twin brother Geoff! Jim is a well-known Business writer and presenter as well as being one of the UK's leading educational technology entrepreneurs.
Theories Models for AQA A Level Business
Collections
Theories and Models for Edexcel A Level Business
Collections
AQA A Level Business Study Notes: 3.7 - Analysing the Strategic Position of the Business
Collections Show more
Threats to Netflix - Porter's Five Forces in action
15th November 2019
Sainsbury's and Asda merger comes under scrutiny
24th August 2018
Ola Maps Out Route Into UK
7th August 2018
Revising all those business models!
22nd May 2018
EU proposals to protect suppliers from powerful buyers, in food supply chains
13th April 2018
Facebook v Unilever: Porter's Five Forces CSR in Action
12th February 2018
Was 2017 the year that independent bookshops turned the corner?
26th December 2017
Toys R Us is saved - but only for the moment
21st December 2017
IKEA lifts prices as lower currency hits costs
16th November 2017
Edexcel A Level Business - Key Resources for the New Academic Year
1st September 2017
AQA A Level Business - Key Resources for the New Academic Year
1st September 2017
Lidl overtakes Waitrose
22nd August 2017
Features of an ideal pub
10th August 2017
What lies behind Subway's success?
5th July 2017
Amazon and the Threats of New Entrants and Substitutes
18th June 2017
Road Haulage Association seeks compensation from truck makers after cartel is exposed
14th June 2017
Apple, Amazon and ASOS helping Business Studies students everywhere!
4th April 2017
Who are Britain's Favourite Supermarkets?
16th February 2017
Tracking Provenance using Blockchain Technology
13th February 2017
Business News Analysis
8th February 2017 Show more Online course Catch Up 2021 A-Level Business
35-50 hours learning time
92 videos, downloads and activities
All students preparing to sit A-Level Business exams in summer 2021. A-Level Business
Edexcel A-Level Business Knowledge Book
SKU: 01-4130-30161-03
Printed Edition
Student personal license
6.95 Edexcel A-Level Business Knowledge Book Edexcel A-Level Business Knowledge Book
SKU: 01-4130-30161-03
Printed Edition
6.95
BTEC National Business Unit 3 Revision Flashcards
SKU: 01-4130-30042-03
Printed Edition
Student personal license
6.95 (+VAT) BTEC National Business Unit 3 Revision Flashcards BTEC National Business Unit 3 Revision Flashcards
SKU: 01-4130-30042-03
Printed Edition
6.95 (+VAT) Advertise your vacancies with tutor2u
Much cheaper more effective than TES or the Guardian. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences. Advertise your teaching jobs with tutor2u
Packaging fresh fruits and vegetables is one of the more important steps in the long and complicated journey from grower to consumer. Bags, crates, hampers, baskets, cartons, bulk bins, and palletized containers are convenient containers for handling, transporting, and marketing fresh produce. More than 1,500 different types of packages are used for produce in the United States and the number continues to increase as the industry introduces new packaging materials and concepts. Although the industry generally agrees that container standardization is one way to reduce cost, the trend in recent years has moved toward a wider range of package sizes to accommodate the diverse needs of wholesalers, consumers, food service buyers, and processing operations.
Packing and packaging materials contribute a significant cost to the produce industry; therefore it is important that packers, shippers, buyers, and consumers have a clear understanding of the wide range of packaging options available. This factsheet describes some of the many types of packaging, including their functions, uses, and limitations. Also included is a listing, by commodity, of the common produce containers standard to the industry. The Function of Packaging or Why Package Produce? Skip to The Function of Packaging or Why Package Produce?
A significant percentage of produce buyer and consumer complaints may be traced to container failure because of poor design or inappropriate selection and use. A properly designed produce container should contain, protect, and identify the produce, satisfying everyone from grower to consumer.
PACKAGING POINTS
Recyclability/Biodegradability.
A growing number of US markets and many export markets have waste disposal restrictions for packaging materials. In the near future, almost all produce packaging will be recyclable or biodegradable, or both. Many of the largest buyers of fresh produce are also those most concerned about environmental issues.
Variety.
The trend is toward greater use of bulk packages for processors and wholesale buyers and smaller packages for consumers. There are now more than 1,500 different sizes and styles of produce packages.
Sales Appeal.
High quality graphics are increasingly being used to boost sales appeal. Multi-color printing, distinctive lettering, and logos are now common.
Shelf Life.
Modern produce packaging can be custom engineered for each commodity to extend shelf life and reduce waste.
Containment
The container must enclose the produce in convenient units for handling and distribution. The produce should fit well inside the container, with little wasted space. Small produce items that are spherical or oblong (such as potatoes, onions, and apples) may be packaged efficiently utilizing a variety of different package shapes and sizes. However, many produce items such as asparagus, berries, or soft fruit may require containers specially designed for that item. Packages of produce commonly handled by hand are usually limited to 50 pounds. Bulk packages moved by forklifts may weigh as much as 1,200 pounds.
Protection
The package must protect the produce from mechanical damage and poor environmental conditions during handling and distribution. To produce buyers, torn, dented, or collapsed produce packages usually indicate lack of care in handling the contents. Produce containers must be sturdy enough to resist damage during packaging, storage, and transportation to market.
Because almost all produce packages are palletized, produce containers should have sufficient stacking strength to resist crushing in a low temperature, high humidity environment. Although the cost of packaging materials has escalated sharply in recent years, poor quality, lightweight containers that are easily damaged by handling or moisture are no longer tolerated by packers or buyers.
Produce destined for export markets requires containers to be extra sturdy. Air-freighted produce may require special packing, package sizes, and insulation. Marketers who export fresh produce should consult with freight companies about any special packaging requirements. Additionally, the USDA and various state export agencies may be able to provide specific packaging information.
Damage resulting from poor environmental control during handling and transit is one of the leading causes of rejected produce and low buyer and consumer satisfaction. Each fresh fruit and vegetable commodity has its own requirements for temperature, humidity, and environmental gas composition. Produce containers should be produce friendly - helping to maintain an optimum environment for the longest shelf life. This may include special materials to slow the loss of water from the produce, insulation materials to keep out the heat, or engineered plastic liners that maintain a favorable mix of oxygen and carbon dioxide.
Identification
The package must identify and provide useful information about the produce. It is customary (and may be required in some cases) to provide information such as the produce name, brand, size, grade, variety, net weight, count, grower, shipper, and country of origin. It is also becoming more common to find included on the package nutritional information, recipes, and other useful information directed specifically at the consumer. In consumer marketing, package appearance has also become an important part of point of sale displays.
Universal Product Codes (UPC or bar codes) may be included as part of the labeling. The UPCs used in the food industry consist of a ten-digit machine readable code. The first five digits are a number assigned to the specific producer (packer or shipper) and the second five digits represent specific product information such as type of produce and size of package. Although no price information is included, UPCs are used more and more by packers, shippers, buyers, and retailers as a fast and convenient method of inventory control and cost accounting. Efficient use of UPCs requires coordination with everyone who handles the package. Types of Packaging Materials Skip to Types of Packaging Materials
Wood
Pallets literally form the base on which most fresh produce is delivered to the consumer. Pallets were first used during World War II as an efficient way to move goods. The produce industry uses approximately 190 of the 700 million pallets produced per year in the United States. About 40 percent of these are single-use pallets. Because many are of a non-standard size, the pallets are built as inexpensively as possible and discarded after a single use. Although standardization efforts have been slowly under way for many years, the efforts have been accelerated by pressure from environmental groups, in addition to the rising cost of pallets and landfill tipping fees.
Over the years, the 40-inch wide, by 48-inch long pallet has evolved as the unofficial standard size. Standardization encourages re-use, which has many benefits. Besides reducing cost because they may be used many times, most pallet racks and automated pallet handling equipment are designed for standard-size pallets. Standard size pallets make efficient use of truck and van space and can accommodate heavier loads and more stress than lighter single-use pallets. Additionally, the use of a single pallet size could substantially reduce pallet inventory and warehousing costs along with pallet repair and disposal costs. The adoption of a pallet standard throughout the produce industry would also aid efforts toward standardization of produce containers.
In the early 1950s, an alternative to the pallet was introduced. It is a pallet-size sheet (slipsheet) of corrugated fiberboard or plastic (or a combination of these materials) with a narrow lip along one or more sides. packages of produce are stacked directly on this sheet as if it were a pallet. Once the packages are in place, they are moved by a specially equipped forklift equipped with a thin metal sheet instead of forks.
Slipsheets are considerably less expensive than pallets to buy, store, and maintain; they may be re-used many times; and they reduce the tare weight of the load. However, they require the use of a special forklift attachment at each handling point from packer to retailer.
Depending on the size of produce package, a single pallet may carry from 20 to over 100 individual packages. Because these packages are often loosely stacked to allow for air circulation, or are bulging and difficult to stack evenly, they must be secured (unitized) to prevent shifting during handling and transit. Although widely used, plastic straps and tapes may not have completely satisfactory results. Plastic or paper corner tabs should always be used to prevent the straps from crushing the corners of packages.
Plastic stretch film is also widely used to secure produce packages. A good film must stretch, retain its elasticity, and cling to the packages. Plastic film may conform easily to various size loads. It helps protect the packages from loss of moisture, makes the pallet more secure against pilferage, and can be applied using partial automation. However, plastic film severely restricts proper ventilation. A common alternative to stretch film is plastic netting, which is much better for stabilizing some pallet loads, such as those that require forced-air cooling. Used stretch film and plastic netting may be difficult to properly handle and recycle.
A very low-cost and almost fully automated method of pallet stabilization is the application of a small amount of special glue to the top of each package. As the packages are stacked, the glue secures all cartons together. This glue has a low tensile strength so cartons may be easily separated or repositioned, but a high shear strength so they will not slide. The glue does not present disposal or recycling problems.
Pallet Bins. Substantial wooden pallet bins of milled lumber or plywood are primarily used to move produce from the field or orchard to the packing house. Depending on the application, capacities may range from 12 to more than 50 bushels. Although the height may vary, the length and width is generally the same as a standard pallet (48 inches by 40 inches). More efficient double-wide pallet bins (48 inches by 80 inches) are becoming more common in some produce operations.
Most pallet bins are locally made; therefore it is very important that they be consistent from lot to lot in materials, construction, and especially size. For example, small differences in overall dimensions can add up to big problems when several hundred are stacked together for cooling, ventilation, or storage. It is also important that stress points be adequately reinforced. The average life of a hardwood pallet bin that is stored outside is approximately five years. When properly protected from the weather, pallets bins may have a useful life of 10 years or more.
Uniform voluntary standards for wood pallets and other wood containers are administered by the National Wooden Pallet and Container Association, Washington, DC. Additionally, the American Society of Agricultural Engineers, St. Joseph, Michigan, publishes standards for agricultural pallet bins (ASAE S337.1).
Wire-Bound Crates. Although alternatives are available, wooden wire-bound crates are used extensively for snap beans, sweet corn and several other commodities that require hydrocooling. Wire-bound crates are sturdy, rigid and have very high stacking strength that is essentially unaffected by water. Wire-bound crates come in many different sizes from half-bushel to pallet-bin size and have a great deal of open space to facilitate cooling and ventilation. Although few are re-used, wire-bound crates may be dissembled after use and shipped back to the packer (flat). In some areas, used containers may pose a significant disposal problem. Wire-bound crates are not generally acceptable for consumer packaging because of the difficulty in affixing suitable labels.
Wooden Crates and Lugs. Wooden crates, once extensively used for apples, stone fruit, and potatoes have been almost totally replaced by other types of containers. The relative expense of the container, a greater concern for tare weight, and advances in material handling have reduced their use to a few specialty items, such as expensive tropical fruit. The 15-, 20-, and 25-pound wooden lugs still used for bunch grapes and some specialty crops are being gradually replaced with less costly alternatives.
Wooden Baskets and Hampers. Wire-reinforced wood veneer baskets and hampers of different sizes were once used for a wide variety of crops from strawberries to sweetpotatoes. They are durable and may be nested for efficient transport when empty. However, cost, disposal problems, and difficulty in efficient palletization have severely limited their use to mostly local grower markets where they may be re-used many times.
Corrugated Fiberboard
Corrugated fiberboard (often mistakenly called cardboard or pasteboard) is manufactured in many different styles and weights. Because of its relativity low cost and versatility, it is the dominant produce container material and will probably remain so in the near future. The strength and serviceability of corrugated fiberboard have been improving in recent years.
Most corrugated fiberboard is made from three or more layers of paperboard manufactured by the kraft process. To be considered paperboard, the paper must be thicker than 0.008 inches. The grades of paperboard are differentiated by their weight (in pounds per 1,000 square feet) and their thickness. Kraft paper made from unbleached pulp has a characteristic brown color and is exceptionally strong. In addition to virgin wood fibers, Kraft paper may have some portion of synthetic fibers for additional strength, sizing (starch), and other materials to give it wet strength and printability. Most fiberboard contains some recycled fibers. Minimum amounts of recycled materials may be specified by law and the percentage is expected to increase in the future. Tests have shown that cartons of fully recycled pulp have about 75 percent of the stacking strength of virgin fiber containers. The use of recycled fibers will inevitably lead to the use of thicker walled containers.
Double-faced corrugated fiberboard is the predominant form used for produce containers. It is produced by sandwiching a layer of corrugated paperboard between an inner and outer liner (facing) of paper-board. The inner and outer liner may be identical, or the outer layer may be preprinted or coated to better accept printing. The inner layer may be given a special coating to resist moisture. Heavy-duty shipping containers, such as corrugated bulk bins that are required to have high stacking strength, may have double- or even triple-wall construction. Corrugated fiberboard manufacturers print box certificates on the bottom of containers to certify certain strength characteristics and limitations. There are two types of certification. The first certifies the minimum combined weight of both the inner and outer facings and that the corrugated fiberboard material is of a minimum bursting strength. The second certifies minimum edge crush test (ETC) strength. Edge crush strength is a much better predictor of stacking strength than is bursting strength. For this reason, users of corrugated fiberboard containers should insist on ECT certification to compare the stackability of various containers. Both certificates give a maximum size limit for the container (sum of length, width, and height) and the maximum gross weight of the contents.
Both cold temperatures and high humidities reduce the strength of fiberboard containers. Unless the container is specially treated, moisture absorbed from the surrounding air and the contents can reduce the strength of the container by as much as 75 percent. New anti-moisture coatings (both wax and plastic) are now available to substantially reduce the effects of moisture.
Waxed fiberboard cartons (the wax is about 20 percent of fiber weight) are used for many produce items that must be either hydrocooled or iced. The main objection to wax cartons is disposal after use wax cartons cannot be recycled and are increasingly being refused at landfills. Several states and municipalities have recently taxed wax cartons or have instituted rigid back haul regulations. Industry sources suggest that wax cartons will eventually be replaced by plastic or, more likely, the use of ice and hydrocooling will be replaced by highly controlled forced-air cooling and rigid temperature and humidity maintenance on many commodities.
In many applications for corrugated fiberboard containers, the stacking strength of the container is a minor consideration. For example, canned goods carry the majority of their own weight when stacked. Fresh produce usually cannot carry much of the vertical load without some damage. Therefore, one of the primarily desired characteristics of corrugated fiberboard containers is stacking strength to protect the produce from crushing. Because of their geometry, most of the stacking strength of corrugated containers is carried by the corners. For this reason, hand holes and ventilation slots should never be positioned near the corners of produce containers and be limited to no more than 5 to 7 percent of the side area.
Interlocking the packages (cross stacking) is universally practiced to stabilize pallets. Cross stacking places the corner of one produce package at the middle of the one below it, thus reducing its stacking strength. To reduce the possibility of collapse, the first several layers of each pallet should be column stacked (one package directly above the other). The upper layers of packages may be cross stacked as usual with very little loss of pallet stability.
There are numerous styles of corrugated fiberboard containers. The two most used in the produce industry are the one piece, regular slotted container (RSC) and the two piece, full telescoping container (FTC). The RSC is the most popular because it is simple and economical. However, the RSC has relatively low stacking strength and therefore must be used with produce, such as potatoes, that can carry some of the stacking load. The FTC, actually one container inside another, is used when greater stacking strength and resistance to bulging is required. A third type of container is the Bliss box, which is constructed from three separate pieces of corrugated fiberboard. The Bliss box was developed to be used when maximum stacking strength is required. The bottoms and tops of all three types of containers may be closed by glue, staples, or interlocking slots.
Almost all corrugated fiberboard containers are shipped to the packer flat and assembled at the packing house. To conserve space, assembly is usually performed just before use. Assembly may be by hand, machine, or a combination of both. Ease of assembly should be carefully investigated when considering a particular style of package.
In recent years, large double-wall or even triple- wall corrugated fiberboard containers have increasingly been used as one-way pallet bins to ship bulk produce to processors and retailers. Cabbage, melons, potatoes, pumpkins, and citrus have all been shipped successfully in these containers. The container cost per pound of produce is as little as one fourth of traditional size containers. Some bulk containers may be collapsed and re-used.
For many years, labels were printed on heavy paper and glued or stapled to the produce package. The high cost of materials and labor has all but eliminated this practice. The ability to print the brand, size, and grade information directly on the container is one of the greatest benefits of corrugated fiberboard containers. There are basically two methods used to print corrugated fiberboard containers:
Post Printed. When the liner is printed after the corrugated fiberboard has been formed, the process is known as post printing. Post printing is the most widely used printing method for corrugated fiberboard containers because it is economical and may be used for small press runs. However, postprinting produces graphics with less detail and is usually limited to one or two colors.
Preprinted. High quality, full-color graphics may be obtained by preprinting the linerboard before it is attached to the corrugated paperboard. Whereas the cost is about 15 percent more than standard two color containers, the eye catching quality of the graphics makes it very useful for many situations. The visual quality of the package influences the perception of the product because the buyer's first impression is of the outside of the package. Produce managers especially like high quality graphics that they can use in supermarket floor displays.
Preprinted cartons are usually reserved for the introduction of new products or new brands. Market research has shown that exporters may benefit from sophisticated graphics. The increased cost usually does not justify use for mature products in a stable market, but this may change as the cost of these containers becomes more competitive.
Pulp Containers. Containers made from recycled paper pulp and a starch binder are mainly used for small consumer packages of fresh produce. Pulp containers are available in a large variety of shapes and sizes and are relatively inexpensive in standard sizes. Pulp containers can absorb surface moisture from the product, which is a benefit for small fruit and berries that are easily harmed by water. Pulp containers are also biodegradable, made from recycled materials, and recyclable.
Paper and Mesh Bags. Consumer packs of potatoes and onions are about the only produce items now packed in paper bags. The more sturdy mesh bag has much wider use. In addition to potatoes and onions, cabbage, turnips, citrus, and some specialty items are packed in mesh bags. Sweet corn may still be packaged in mesh bags in some markets. In addition to its low cost, mesh has the advantage of uninhibited air flow. Good ventilation is particularly beneficial to onions. Supermarket produce managers like small mesh bags because they make attractive displays that stimulate purchases.
However, bags of any type have several serious disadvantages. Large bags do not palletize well and small bags do not efficiently fill the space inside corrugated fiberboard containers. Bags do not offer protection from rough handling. Mesh bags provide little protection from light or contaminants. In addition, produce packed in bags is correctly perceived by the consumer to be less than the best grade. Few consumers are willing to pay premium price for bagged produce.
Plastic Bags. Plastic bags (polyethylene film) are the predominant material for fruit and vegetable consumer packaging. Besides the very low material costs, automated bagging machines further reduce packing costs. Film bags are clear, allowing for easy inspection of the contents, and readily accept high quality graphics. Plastic films are available in a wide range of thicknesses and grades and may be engineered to control the environmental gases inside the bag. The film material 'breathes' at a rate necessary to maintain the correct mix of oxygen, carbon dioxide, and water vapor inside the bag. Since each produce item has its own unique requirement for environmental gases, modified atmosphere packaging material must be specially engineered for each item. Research has shown that the shelf life of fresh produce is extended considerably by this packaging. The explosive growth of precut produce is due in part to the availability of modified atmosphere packaging.
In addition to engineered plastic films, various patches and valves have been developed that affix to low-cost ordinary plastic film bags. These devices respond to temperature and control the mix of environmental gases.
Shrink Wrap. One of the newest trends in produce packaging is the shrink wrapping of individual produce items. Shrink wrapping has been used successfully to package potatoes, sweetpotatoes, apples, onions, sweet corn, cucumbers and a variety of tropical fruit. Shrink wrapping with an engineered plastic wrap can reduce shrinkage, protect the produce from disease, reduce mechanical damage and provide a good surface for stick-on labels.
Rigid Plastic Packages. Packages with a top and bottom that are heat formed from one or two pieces of plastic are known as clamshells. Clamshells are gaining in popularity because they are inexpensive, versatile, provide excellent protection to the produce, and present a very pleasing consumer package. Clamshells are most often used with consumer packs of high value produce items like small fruit, berries, mushrooms, etc., or items that are easily damaged by crushing. Clamshells are used extensively with precut produce and prepared salads. Molded polystyrene and corrugated polystyrene containers have been test marketed as a substitute for waxed corrugated fiberboard. At present they are not generally cost competitive, but as environmental pressures grow, they may be more common. Heavy-molded polystyrene pallet bins have been adopted by a number of growers as a substitute for wooden pallet bins. Although at present their cost is over double that of wooden bins, they have a longer service life, are easier to clean, are recyclable, do not decay when wet, do not harbor disease, and may be nested and made collapsible.
As environmental pressures continue to grow, the disposal and recyclability of packaging material of all kinds will become a very important issue. Common polyethylene may take from 200 to 400 years to breakdown in a landfill. The addition of 6 percent starch will reduce the time to 20 years or less. Packaging material companies are developing starch-based polyethylene substitutes that will break down in a landfill as fast as ordinary paper.
The move to biodegradable or recyclable plastic packaging materials may be driven by cost in the long term, but by legislation in the near term. Some authorities have proposed a total ban on plastics. In this case, the supermarket of the early 21st century may resemble the grocery markets of the early 20th century.
Produce package standardization is interpreted differently by different groups. The wide variety of package sizes and material combinations is a result of the market responding to demands from many different segments of the produce industry. For example, many of the large-volume buyers of fresh produce are those most concerned with the environment. They demand less packaging and the use of more recyclable and biodegradable materials, yet would also like to have many different sizes of packages for convenience. Packers want to limit the variety of packages they must carry in stock, yet they have driven the trend toward preprinted, individualized containers. Shippers and trucking companies want to standardize sizes so the packages may be better palletized and handled.
Produce buyers are not a homogeneous group. Buyers for grocery chains have different needs than buyers for food service. For grocery items normally sold in bulk, processors want largest size packages that they can handle efficiently - to minimize unpacking time and reduce the cost of handling or disposing of the used containers. Produce managers, on the other hand, want individualized, high quality graphics to entice retail buyers with in-store displays.
Selecting the right container for fresh produce is seldom a matter of personal choice for the packer. For each commodity, the market has unofficial, but nevertheless rigid standards for packaging; therefore it is very risky to use a nonstandard package. Packaging technology, market acceptability, and disposal regulations are constantly changing. When choosing a package for fresh fruits and vegetables, packers must consult the market, and in some markets, standard packages may be required by law. Table 1. Some common shipping containers by commodity. Apples
45 lb 1 1 8 bushel cartons, loose
40 to 45 lb cartons, tray-pack
40 lb bushel cartons, tray- or cell-pack
40 lb bushel cartons, loose
40 lb cartons, ten 4 lb bags
40 lb cartons, eight 5 lb bags
40 lb cartons, sixteen 8 count trays, over wrapped
38 to 42 lb cartons, loose
37 to 43 lb cartons, cell-pack
36 lb cartons, twelve 3 lb bags
20 lb half-bushel cartons, loose Blueberries
11 lb flats, twelve 1 pint cups
9 lb flats, twelve 250 gram cups
5 lb flats, twelve 8 oz baskets Asparagus
30 lb pyramid cartons/crates, bunched or loose
28 lb cartons/crates, bunched
25 lb lugs/cartons, loose
24 lb cartons, sixteen 1 1 2 lb packages
21 lb lugs/cartons, loose
20 lb pyramid cartons/crates
20 lb cartons, bunched
15 to 17 lb pyramid cartons/crates, bunched or loose
14 lb cartons, loose
12 lb cartons, loose
12 to 13 lb cartons/crates, bunched
11 lb cartons/crates, loose Broccoli
Bunched
21 lb cartons/crates, 14s and 18s
Crown-Cut
20 lb cartons, loose
Florets
10 lb film bags
5 lb film bags
Beans
All Types
26 to 31 lb bushel crates/hampers
25 to 30 lb cartons/crates, including semi-telescope types
Snap Beans
20 to 22 lb cartons
15 lb cartons
Yellow wax beans
30 lb bushel hampers/crates Brussels Sprouts
25 lb cartons, loose
10 lb flats/cartons Beets
50 lb mesh bags
45 lb wirebound crates/cartons, bunched in 12s
38 lb cartons/crates, bunched in 12s
35 lb half crates, loose
32 lb 4 5 bushel crate
25 lb bags, loose
20 lb cartons/crates, bunched in 12s
Cabbage
Green and Red
2,000 lb bulk bins
1,000 lb bulk bins
50 to 60 lb flat crates
50 lb 1 3 4 bushel crates/cartons/bags
45 lb cartons
40 lb cartons/bags
Savoy
40 lb 1 3 4 bushel crates
Chinese
80 to 85 lb crates
45 to 54 lb crates
50 to 53 lb carton
Carrots
Topped
50 lb cartons/bags, loose
50 lb cartons, ten 5 lb bags
48 lb master bags, containing forty eight 1 lb, twenty-four 2 lb or sixteen 3 lb bags
26 lb cartons, bunched
25 lb bags, loose
24 lb cartons, containing twenty four 1 lb bags
15 lb cartons, containing twenty 12 oz bags
Bunched
26 lb cartons/crates, 24s
Baby whole
24 lb cartons, containing twenty four 1 lb film bags 20 lb cartons, containing twenty 1 lb bags
15 lb cartons, containing twenty 12 oz bags Cantaloupe
1,000 lb pallet bins
800 lb pallet bins
80 lb jumbo crates
60 lb 1 3 4 bushel cartons
54 lb cartons
45 to 50 lb wirebound crates
40 lb cartons/crates
40 lb 1 1 9 bushel cartons/crates Cauliflower
60 lb wirebound crates
50 lb cartons/crates (Long Island Type)
25 to 30 lb cartons,12s and 16s film-wrapped and trimmed
Eggplant
33 lb bushels or 1 1 9 bushel cartons/crates/baskets
26 to 28 lb cartons/crates/lugs
25 lb cartons
22 lb lugs/cartons, 18s and 24s
17 lb 1 2 bushel lugs
Chinese
26 lb lugs
25 lb cartons
15 lb 1 2 bushel cartons/crates
Italian
26 lb lugs
15 lb 1 2 bushel cartons/crates
Japanese
15 lb 1 2 bushel cartons/crates Corn
50 lb cartons/crates/bags
42 lb cartons/crates/bags
37 lb mesh bags
Grapes
Bunch 24 lb crates, eight 2-quart baskets
22 to 23 lb cartons/lugs
21 lb lugs
20 lb 12-quart baskets
16 lb lugs,16 lb bagged/wrapped
Muscadines
12 lb flats, twelve 1 pint cups
Cucumbers
Pickling
55 lb 1 1 9 bushel cartons/crates
Slicers
50 lb bushel cartons/crates
30 lb cartons, 48s
28 lb 5 9 bushel cartons/crates
24 lb cartons, 36s and 42s
22 lb cartons, 24s
Greenhouse
16 lb cartons, loose, film-wrapped
12 lb flats/cartons, loose, film-wrapped Greens
30 to 35 lb 1 2 5 bushel and 1 3 5 bushel crates
20 to 25 lb bushel baskets/crates/cartons
20 to 25 lb 12-24 bunches per crates/cartons Melons
Casaba and Crenshaw
32 to 34 lb cartons, 4s, 5s 6s
48 to 51 lb flat crate, 5s 6s Honeydew
35 lb flat crates
30 lb cartons Okra
30 lb bushel baskets/crates/hampers
23 lb 3 4 bushel hampers
15 lb 1 2 and 5 9 bushel baskets/crates/lugs/clamshells
Lettuce
Iceberg
50 lb cartons, 30s, 24s, 18s
30 lb cartons
20 lb cartons
Boston
22 lb 1 1 9 bushel crates
20 lb cartons/crates, 24s
10 lb flat cartons/crates
5 lb 12-quart baskets/cartons
Bibb
10 lb flat cartons/crates
5 lb 12-quart baskets/cartons
5 lb baskets, greenhouse
Looseleaf
25 lb cartons/crates
20 lb 4 5 bushel crates
14 lb 1 1 9 bushel crates
10 lb baskets/cartons
Romaine
40 lb 2 3 cartons/crates
28 lb 1 1 3 bushel cartons
22 lb 1 1 9 bushel cartons/crates
22 lb carton, 24s Onions, bulb
50 lb cartons/bags/crates, loose
50 lb cartons, containing ten 5 lb bags
48 lb cartons, containing sixteen 3 lb bags or 24 2 lb bags
45 lb cartons, containing fifteen 3 lb bags
40 lb cartons, containing twenty 2 lb bags
40 lb cartons, loose 36 lb cartons, containing twelve 3 lb bags
32 lb cartons, sixteen 2 lb bags
25 lb bags/cartons, loose
24 lb cartons, containing twelve 2 lb bags
10 lb bags, loose
Peppers
Bells
35 lb 1 1 4 bushel cartons
30 lb cartons/crates
28 lb bushel and 1 1 9 bushel cartons/crates
25 lb cartons
14 to 15 lb half-bushel cartons
11 lb flat cartons
Jalapenos and Chilies
16 to 25 lb half- and 5 9 bushel cartons/crates, loose
20 lb cartons, loose 10 lb cartons, retail packs Onions, green
28 lb cartons, bunched 12s, bulb-type
20 lb cartons/crates, bunched 24s, bulb-type
13 lb cartons, bunched 48s
11 lb cartons, bunched 36s Potatoes
100 lb bags
50 lb cartons/bags
50 lb carton, containing five 10 lb or ten 5 lb bags Peaches
38 lb 3 4 bushel cartons/crates
35 lb cartons
26 lb cartons
25 lb 1 2 bushel cartons/crates
22 lb 2-layer carton
11 lb crates/flats,1-layer tray pack
10 lb cartons
9 lb cartons,1-layer Pumpkins
1,000 lb bins
50 lb cartons/crates/bags
25 lb 1 2 bushel cartons/crates
Peas
Green
30 lb bushel baskets/crates/hampers
30 lb 1 1 9 bushel crates/cartons
Snow, China, Sugar, Sugar Snap
10 lb cartons
Southern
25 lb bushel hampers
Radishes
Topped
40 lb bags, loose
25 lb bags, loose
14 lb cartons, containing fourteen 1 lb bags
12 lb baskets/cartons, containing thirty 6 oz bags
Bunched
35 lb cartons/crates, 48s, 24s
30 lb 4 5 bushel cartons/lugs
20 lb cartons/crates, containing 24 bunches
15 lb cartons/crates, 24s
Squash
Summer
42 lb bushel and 1 1 9 bushel carton
35 lb cartons/crates
30 lb 3 4 bushel cartons/crates
26 lb cartons/lugs
21 lb 1 2 or 5 9 bushel baskets/cartons/crates
10 lb 8-quart baskets/cartons
Winter
50 lb 1 1 9 bushel cartons/crates
40 lb cartons/crates
35 lb cartons/crates
12 lb flats, 6 quarts Spinach
32 lb 1 2 3 bushel cartons/crates
25 lb bushel carton/crates
20 lb cartons, 24s
12 lb bags
10 lb 24 quart baskets
8 lb cartons, twelve 10 oz bags Sweetpotatoes
800 lb bulk bins
40 lb cartons/crates
40 lb cartons, containing eight 5 lb bags
20 lb boxes
10 lb boxes
5 lb cartons/bags
Tomatoes
28 lb 1 2 or 4 7 bushel cartons
25 lb cartons, loose
20 lb cartons/flats, loose or layered
Cherry
15 lb flats, containing twelve 1-pint cups
5 lb cartons, containing nine 250-gram cups
Mature Green
25 lb cartons, loose
20 lb cartons, loose or layered
10 lb cartons, loose
Greenhouse
15 lb flats, 1-layer
Plum or Roma
25 lb cartons, loose Watermelon
1,000 lb pallet bins
100 lb cartons
85 lb cartons, various counts
40 lb cartons
35 lb cartons (Mickey Lee) Turnips
50 lb bushel basket/bags
40 lb cartons, bunched
25 lb half-bushel baskets/cartons/crates/bags
24 lb cartons, twenty-four 1 lb bags
20 lb cartons, bunched 12s 2006 State Of The Business Incubation Industry Pdf Printer Software
Back Haul. The return trip from delivering produce or any item to its destination. For efficiency, truckers try to limit empty unproductive (known as dead-heads) back hauls.
Bulk Container. A container designed to contain a relatively large quantity of produce. Bulk containers are used in conjunction with a shipping pallet but are normally separate from the pallet. Bulk containers may carry up to 2,000 lb of produce. Compare to pallet bin.
Bulk Produce. Produce handled in generally truckload lots but not in small containers such as cartons, bags, etc. Bulk produce may be transported in gondolas, dump trucks, or refrigerated vans. Bulk produce is mostly used for processing.
Container. Any type of box, carton, bag, or bin used to form a package of produce. See package.
Corrugated Fiberboard. Common packaging material made from a layer of corrugated fiberboard sandwiched between two additional layers of fiberboard. Sometimes mistakenly called pasteboard or cardboard.
Carton . A container of various construction, but usually made from corrugated fiberboard or possibly plastic, that generally contains fifty pounds or less of fresh produce.
Cold Chain. Most types of produce require continuous postharvest refrigeration for maximum quality maintenance. On-farm refrigeration, refrigerated transport, the buyer's refrigerated receiving warehouse, and refrigerated retail displays all form the cold chain.
Controlled Atmosphere Package. An engineered package where the interaction between the produce and the packing material actively regulates a beneficial mix of environmental gases. See Modified Atmosphere package.
Count Packing. Packing method in which a certain specified number of sized and graded items are placed in the carton.
Fiberboard. A paper material usually made by the kraft process having a thickness greater than .008 inches. Fiberboard may contain additional materials for strength and resistance to water.
Field Packing. A packing method in which all harvesting, grading, and packing functions are performed at the same time in the field or orchard.
Food Service. An enterprise whose function is to supply food items, including fresh produce, to institutions, restaurants, and increasingly, grocery outlets.
Forced-Air Cooling. Forced-air cooling is a commonly used cooling method that utilizes specially constructed portable fans or rooms to draw chilled air horizontally through pallets or stacks of packaged produce. A properly designed forced-air cooling system is fast, energy efficient and relatively inexpensive. It may be utilized on most types of produce.
Fresh-Cut. A value adding process where fresh produce is shredded, trimmed, sliced, or otherwise prepared for consumer use. Fresh-cut produce is generally prepared by a processor or retailer and requires increased attention to sanitation, packaging, handling, the storage environment and labeling. Also called pre-cut or ready-cut.
Hundredweight. A unit of one hundred pounds. Abbreviated Cwt.
Hydrocooling. Cooling freshly harvested produce by flooding, immersing, or spraying with large quantities of cold water. Compared to other cooling methods, hydrocooling is fast and generally thorough. Hydrocooling is limited to those produce items that will tolerate liquid water.
Icing. Cooling fresh produce by the addition of crushed ice or a slurry of crushed ice and water over the top of a load or to each individual package. This method is limited to those produce items that are not harmed by contact with ice.
Layer Packing. Packing method where the entire package of produce is packed in orderly layers.
Lug. A sturdy container, often wholly or partially of wood, designed to have high stacking strength. Lugs are often used for soft fruit such as grapes, berries or tomatoes that are easily damaged by crushing.
Face Packing. A packing method where most of the container is loose or volume filled except for top layer. Items in the top layer are arranged in an orderly pattern for appearance.
Master (flat). A type of carton designed to contain smaller, usually consumer size, units of produce. Masters designed to contain 8 quarts or 12 pints or half pints are commonly used with strawberries and other small fruit.
Mixed Load. A single truck load of fresh produce consisting of two or more products shipped together. The use of mixed loads reduce transportation costs but care must be exercised to prevent ethylene or odor contamination.
Modified Atmosphere Packaging. A method of packaging in which the produce is packed in a sealed container into which a specific mix of gases are introduced. The container only prevents the gases from escaping and does not regulate the mix.
Pallet Bin . A bulk bin made integral to a pallet for the transport of bulk produce. Pallet bins may be made of wood, plastic or some other sturdy material and are primarily intended to be used between the field/orchard and packing house.
Packout Rate. The portion, often expressed as a percentage, of harvested produce actually packed for shipment. That portion not packed is referred to as culls.
Package. Any type of filled box, carton, bag, or bin of product. See container.
Packing House. A facility designed to wash, grade, or trim harvested produce but primarily to place the produce into containers suitable for sale.
Postharvest Handling. Any operation performed after harvest constitutes postharvest handling. Among these operations are washing, grading, packing, storing, cooling, transporting, and marketing.
Precooling. Precooling is the practice of cooling bulk produce prior to grading and packaging although the term has been used to describe cooling at any time before transport. The practice of true precooling is gradually fading since precooled product has an opportunity to warm during subsequent operations. The broader term 'cooling' has now almost replaced 'precooling.'
Room Cooling. Room cooling is the practice of storing bulk or packaged produce in a refrigerated room for an indefinite period. By the processes of conduction and convection, the heat is gradually removed from the produce. Because the outside of the containers cool more rapidly than the inside, the cooling is uneven and slow. The cooling rate of room cooling may be sufficient for many not very perishable produce items such as potatoes, cabbage, or root crops, however, it has proven unsatisfactory for many very perishable items such as strawberries, blueberries, and snap beans.
Shipper. An individual or company that transports produce from the grower to the buyer. Growers, packers, or buyers often assume their own shipping function.
Slip Sheet. A sheet of material, roughly the size of a pallet, of corrugated fiberboard, plastic, or a combination of these materials designed as a replacement for a shipping pallet.
Stacking Strength. The ability of a container to resist a specified vertical load without significant deformation.
Weight Packing. Packing method where a specified minimum weight, but not necessarily number of produce items, are packed in a container.
Vacuum Cooling. When warm produce is placed inside a closed container and reduced to a partial vacuum, a small portion of the water in the produce evaporates, causing a cooling effect. Vacuum cooling is fast and may be utilized very effectively on packaged produce. It is generally more effective on those items with a large surface area to weight ratio such as lettuce and various greens.
Vibration Fill Packing. A packing method designed to reduce bruising and scuffing of the produce. After filling, the package is gently vibrated to maximize product density and stability. 2006 State Of The Business Incubation Industry Pdf Printer Scanner
Volume Fill Packing. Packing method where a specified volume of produce is packed in the container. Both the number of individual produce items and the weight may vary in volume fill packing.
Ashby, B.H., et al. 1987. Protecting perishable foods during transport by truck, Handbook no. 669. USDA, Office of Transportation. Washington, DC.
Erdei, William H. 1993. Bar codes: design, printing and quality control. McGraw-Hill, New York.
Hardenberg, R.E., A.E. Watada and C.Y. Wang. 1986. The commercial storage of fruits, vegetables and florist and nursery stocks. USDA Handbook 66 (revised). Washington, D.C. GPO.
McGregor, B.M. 1987. Tropical Products Transport Handbook, Handbook no. 668. USDA, Office of Transportation. Washington, DC.
Mitchell, F.G., R. Guillou and R.A. Parsons. 1972. Commercial cooling of fruits and vegetables, Manual 43. California Agricultural Experiment Station. Davis, CA.
Moline, H.E., ed. 1984. Postharvest pathology of fruits and vegetables: postharvest losses in perishable crops, publication NE-87. California Agricultural Experiment Station, Davis, CA.
Nicholas, C.J. 1985. Export handbook for U.S. Agricultural Products, Handbook no. 593. USDA, Office of Transportation. Washington, DC.
Nonneck, l .L. 1989. Vegetable Production. Van Nostrand Reinhold Company. New York.
O'Brien, M., L.L. Claypool, S.J. Leonard, G.K. York and J.H. McGillivray. 1963. Causes of fruit bruising on transport trucks. Hilgardia, vol. 35, no. 6. University of California. Davis, CA.
Paine, F.A., ed. 1987. Modern Processing, Packaging and Distribution Systems for Food. Van Nostrand Reinhold Company, New York.
Patchen, G.O. 1969. Effects of vent holes on strength of fiberboard boxes and fruit cooling rate, ARS 52-34. USDA-ARS. Washington, DC.
Parsons, R.A., F.G. Mitchell and G. Mayer. 1972. Forced-air cooling of palletized fresh fruit. Transactions of the ASAE. 15(4):729-731.
Pierce, L.C. 1987. Vegetables: Characteristics, Production and Marketing. John Wiley and Sons. New york.
Stephens, J.M. 1988. Manual of Minor Vegetables, Bulletin SP-40. University of Florida. Gainesville, FL.
Stokes, D.R. 1974. Standardization of shipping containers for fresh fruits and vegetables, Handbook no. 991. USDA-ARS. Washington, DC.
1993. Uniform voluntary standard for wooden pallets. National Wooden Pallet and Container Association. Washington, DC.
1982. Wirebound boxes and crates, Bulletin 419. Package Research Laboratory. Rockaway, NJ.
1992. Fibre Box Handbook, 20th ed. Fibre Box Association. Rolling Meadows, lL.
This publication was sponsored by the Energy Division, North Carolina Department of Commerce, with State Energy Conservation Program funds, in cooperation with North Carolina State University. The opinions, findings, conclusions, or recommendations expressed herein are those of the authors and do not reflect the views of the Energy Division, North Carolina Department of Commerce.
Find more information at the following NC State Extension websites:
Publication date: Sept. 1, 1996
AG-414-08 2006 State Of The Business Incubation Industry Pdf Printer Copier
N.C. Cooperative Extension prohibits discrimination and harassment regardless of age, color, disability, family and marital status, gender identity, national origin, political beliefs, race, religion, sex (including pregnancy), sexual orientation and veteran status. 2006 State Of The Business Incubation Industry Pdf Printer Paper This publication printed on: Dec. 12, 2020
Levels: AS, A Level
Exam boards: AQA, Edexcel, OCR, IB Share: Share by email
The Five Forces Model was devised by Professor Michael Porter. The model is a framework for analysing the nature of competition within an industry.
The short video below provides an overview of Porter's Five Forces model and there are some additional study notes below the video.
Introduction Background - the Nature of Industry Competition
Every market or industry is different. Take any selection of industries and you should be able to find differences between them in terms of:
Size (e.g. sales revenue, volumes, numbers of customers)
Structure (e.g. the number of brands and competitors)
Distribution channels (how the product gets from producer to final consumer)
Customer needs and wants (the basis of marketing segmentation)
Growth (the rate of growth and which businesses are growing faster or slower than the market)
Product life cycle (the stage of the life cycle for the industry as a whole and for products and brands within it)
Alternatives for the consumer (e.g. substitute products)
The result of the above differences is that industries vary in terms of how much profit they make. To take two examples:
Why do airlines make so little profit (and such big losses)? There are several factors, including:
Very intensive competitor rivalry mainly on price
Low barriers to entry lots of new airlines who want to set up
Suppliers of aircraft equipment are powerful can charge high margins
Customers have lots of substitute options e.g. rail, car
High fixed costs airline losses rise significantly if revenues fall only slightly since it costs roughly the same to fly half-empty planes as full ones
By contrast, why are profits so high in the soft drinks market? The answer is mainly that:
Customers and suppliers have little power Pepsi has many millions of individual consumers, and thousands of retail distributors none of whom has much influence over the business
There is high brand awareness loyalty = less consumer desire for substitutes
High barriers to entry how do you enter a market dominated by Coca-Cola and Pepsi?
What we have illustrated above is some analysis that you would obtain by considering the Five Forces Model.
Porter identified five factors that act together to determine the nature of competition within an industry. These are the:
Threat of new entrants to a market
Bargaining power of suppliers
Bargaining power of customers ('buyers')
Threat of substitute products
Degree of competitive rivalry
He identified that high or low industry profits (e.g. soft drinks v airlines) are associated with the following characteristics:
Let's look at each one of the five forces in a little more detail to explain how they work.
Threat of New Entrants
If new entrants move into an industry they will gain market share rivalry will intensify
The position of existing firms is stronger if there are barriers to entering the market
If barriers to entry are low then the threat of new entrants will be high, and vice versa
Barriers to entry are, therefore, very important in determining the threat of new entrants. An industry can have one or more barriers. The following are common examples of successful barriers:
What makes an industry easy or difficult to enter? The following table helps summarise the issues you should consider:
Bargaining Power of Suppliers
If a firm's suppliers have bargaining power they will:
Exercise that power
Sell their products at a higher price
Squeeze industry profits
If the supplier forces up the price paid for inputs, profits will be reduced. It follows that the more powerful the customer (buyer), the lower the price that can be achieved by buying from them.
Suppliers find themselves in a powerful position when:
There are only a few large suppliers
The resource they supply is scarce
The cost of switching to an alternative supplier is high
The product is easy to distinguish and loyal customers are reluctant to switch
The supplier can threaten to integrate vertically
The customer is small and unimportant
There are no or few substitute resources available
Just how much power the supplier has is determined by factors such as:
Bargaining Power of Customers
Powerful customers are able to exert pressure to drive down prices, or increase the required quality for the same price, and therefore reduce profits in an industry.
A great example in the UK currently is the dominant grocery supermarkets which exert great power over supplier firms.
Several factors determine the bargaining power of customers, including:
Customers tend to enjoy strong bargaining power when:
There are only a few of them
The customer purchases a significant proportion of output of an industry
They possess a credible backward integration threat that is they threaten to buy the producing firm or its rivals
They can choose from a wide range of supply firms
They find it easy and inexpensive to switch to alternative suppliers
Threat of Substitute Products
A substitute product can be regarded as something that meets the same need
Substitute products are produced in a different industry but crucially satisfy the same customer need. If there are many credible substitutes to a firm's product, they will limit the price that can be charged and will reduce industry profits.
The extent of the threat depends upon
The extent to which the price and performance of the substitute can match the industry's product
The willingness of customers to switch
Customer loyalty and switching costs
If there is a threat from a rival product the firm will have to improve the performance of their products by reducing costs and therefore prices and by differentiation.
Overall Degree of Competitive Rivalry
If there is intense rivalry in an industry, it will encourage businesses to engage in
Price wars (competitive price reductions),
Investment in innovation new products
Intensive promotion (sales promotion and higher spending on advertising)
All these activities are likely to increase costs and lower profits.
Several factors determine the degree of competitive rivalry; the main ones are: Share: Share by email Jim Riley
Jim co-founded tutor2u alongside his twin brother Geoff! Jim is a well-known Business writer and presenter as well as being one of the UK's leading educational technology entrepreneurs.
Theories Models for AQA A Level Business
Collections
Theories and Models for Edexcel A Level Business
Collections
AQA A Level Business Study Notes: 3.7 - Analysing the Strategic Position of the Business
Collections Show more
Threats to Netflix - Porter's Five Forces in action
15th November 2019
Sainsbury's and Asda merger comes under scrutiny
24th August 2018
Ola Maps Out Route Into UK
7th August 2018
Revising all those business models!
22nd May 2018
EU proposals to protect suppliers from powerful buyers, in food supply chains
13th April 2018
Facebook v Unilever: Porter's Five Forces CSR in Action
12th February 2018
Was 2017 the year that independent bookshops turned the corner?
26th December 2017
Toys R Us is saved - but only for the moment
21st December 2017
IKEA lifts prices as lower currency hits costs
16th November 2017
Edexcel A Level Business - Key Resources for the New Academic Year
1st September 2017
AQA A Level Business - Key Resources for the New Academic Year
1st September 2017
Lidl overtakes Waitrose
22nd August 2017
Features of an ideal pub
10th August 2017
What lies behind Subway's success?
5th July 2017
Amazon and the Threats of New Entrants and Substitutes
18th June 2017
Road Haulage Association seeks compensation from truck makers after cartel is exposed
14th June 2017
Apple, Amazon and ASOS helping Business Studies students everywhere!
4th April 2017
Who are Britain's Favourite Supermarkets?
16th February 2017
Tracking Provenance using Blockchain Technology
13th February 2017
Business News Analysis
8th February 2017 Show more Online course Catch Up 2021 A-Level Business
35-50 hours learning time
92 videos, downloads and activities
All students preparing to sit A-Level Business exams in summer 2021. A-Level Business
Edexcel A-Level Business Knowledge Book
SKU: 01-4130-30161-03
Printed Edition
Student personal license
6.95 Edexcel A-Level Business Knowledge Book Edexcel A-Level Business Knowledge Book
SKU: 01-4130-30161-03
Printed Edition
6.95
BTEC National Business Unit 3 Revision Flashcards
SKU: 01-4130-30042-03
Printed Edition
Student personal license
6.95 (+VAT) BTEC National Business Unit 3 Revision Flashcards BTEC National Business Unit 3 Revision Flashcards
SKU: 01-4130-30042-03
Printed Edition
6.95 (+VAT) Advertise your vacancies with tutor2u
Much cheaper more effective than TES or the Guardian. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences. Advertise your teaching jobs with tutor2u
Packaging fresh fruits and vegetables is one of the more important steps in the long and complicated journey from grower to consumer. Bags, crates, hampers, baskets, cartons, bulk bins, and palletized containers are convenient containers for handling, transporting, and marketing fresh produce. More than 1,500 different types of packages are used for produce in the United States and the number continues to increase as the industry introduces new packaging materials and concepts. Although the industry generally agrees that container standardization is one way to reduce cost, the trend in recent years has moved toward a wider range of package sizes to accommodate the diverse needs of wholesalers, consumers, food service buyers, and processing operations.
Packing and packaging materials contribute a significant cost to the produce industry; therefore it is important that packers, shippers, buyers, and consumers have a clear understanding of the wide range of packaging options available. This factsheet describes some of the many types of packaging, including their functions, uses, and limitations. Also included is a listing, by commodity, of the common produce containers standard to the industry. The Function of Packaging or Why Package Produce? Skip to The Function of Packaging or Why Package Produce?
A significant percentage of produce buyer and consumer complaints may be traced to container failure because of poor design or inappropriate selection and use. A properly designed produce container should contain, protect, and identify the produce, satisfying everyone from grower to consumer.
PACKAGING POINTS
Recyclability/Biodegradability.
A growing number of US markets and many export markets have waste disposal restrictions for packaging materials. In the near future, almost all produce packaging will be recyclable or biodegradable, or both. Many of the largest buyers of fresh produce are also those most concerned about environmental issues.
Variety.
The trend is toward greater use of bulk packages for processors and wholesale buyers and smaller packages for consumers. There are now more than 1,500 different sizes and styles of produce packages.
Sales Appeal.
High quality graphics are increasingly being used to boost sales appeal. Multi-color printing, distinctive lettering, and logos are now common.
Shelf Life.
Modern produce packaging can be custom engineered for each commodity to extend shelf life and reduce waste.
Containment
The container must enclose the produce in convenient units for handling and distribution. The produce should fit well inside the container, with little wasted space. Small produce items that are spherical or oblong (such as potatoes, onions, and apples) may be packaged efficiently utilizing a variety of different package shapes and sizes. However, many produce items such as asparagus, berries, or soft fruit may require containers specially designed for that item. Packages of produce commonly handled by hand are usually limited to 50 pounds. Bulk packages moved by forklifts may weigh as much as 1,200 pounds.
Protection
The package must protect the produce from mechanical damage and poor environmental conditions during handling and distribution. To produce buyers, torn, dented, or collapsed produce packages usually indicate lack of care in handling the contents. Produce containers must be sturdy enough to resist damage during packaging, storage, and transportation to market.
Because almost all produce packages are palletized, produce containers should have sufficient stacking strength to resist crushing in a low temperature, high humidity environment. Although the cost of packaging materials has escalated sharply in recent years, poor quality, lightweight containers that are easily damaged by handling or moisture are no longer tolerated by packers or buyers.
Produce destined for export markets requires containers to be extra sturdy. Air-freighted produce may require special packing, package sizes, and insulation. Marketers who export fresh produce should consult with freight companies about any special packaging requirements. Additionally, the USDA and various state export agencies may be able to provide specific packaging information.
Damage resulting from poor environmental control during handling and transit is one of the leading causes of rejected produce and low buyer and consumer satisfaction. Each fresh fruit and vegetable commodity has its own requirements for temperature, humidity, and environmental gas composition. Produce containers should be produce friendly - helping to maintain an optimum environment for the longest shelf life. This may include special materials to slow the loss of water from the produce, insulation materials to keep out the heat, or engineered plastic liners that maintain a favorable mix of oxygen and carbon dioxide.
Identification
The package must identify and provide useful information about the produce. It is customary (and may be required in some cases) to provide information such as the produce name, brand, size, grade, variety, net weight, count, grower, shipper, and country of origin. It is also becoming more common to find included on the package nutritional information, recipes, and other useful information directed specifically at the consumer. In consumer marketing, package appearance has also become an important part of point of sale displays.
Universal Product Codes (UPC or bar codes) may be included as part of the labeling. The UPCs used in the food industry consist of a ten-digit machine readable code. The first five digits are a number assigned to the specific producer (packer or shipper) and the second five digits represent specific product information such as type of produce and size of package. Although no price information is included, UPCs are used more and more by packers, shippers, buyers, and retailers as a fast and convenient method of inventory control and cost accounting. Efficient use of UPCs requires coordination with everyone who handles the package. Types of Packaging Materials Skip to Types of Packaging Materials
Wood
Pallets literally form the base on which most fresh produce is delivered to the consumer. Pallets were first used during World War II as an efficient way to move goods. The produce industry uses approximately 190 of the 700 million pallets produced per year in the United States. About 40 percent of these are single-use pallets. Because many are of a non-standard size, the pallets are built as inexpensively as possible and discarded after a single use. Although standardization efforts have been slowly under way for many years, the efforts have been accelerated by pressure from environmental groups, in addition to the rising cost of pallets and landfill tipping fees.
Over the years, the 40-inch wide, by 48-inch long pallet has evolved as the unofficial standard size. Standardization encourages re-use, which has many benefits. Besides reducing cost because they may be used many times, most pallet racks and automated pallet handling equipment are designed for standard-size pallets. Standard size pallets make efficient use of truck and van space and can accommodate heavier loads and more stress than lighter single-use pallets. Additionally, the use of a single pallet size could substantially reduce pallet inventory and warehousing costs along with pallet repair and disposal costs. The adoption of a pallet standard throughout the produce industry would also aid efforts toward standardization of produce containers.
In the early 1950s, an alternative to the pallet was introduced. It is a pallet-size sheet (slipsheet) of corrugated fiberboard or plastic (or a combination of these materials) with a narrow lip along one or more sides. packages of produce are stacked directly on this sheet as if it were a pallet. Once the packages are in place, they are moved by a specially equipped forklift equipped with a thin metal sheet instead of forks.
Slipsheets are considerably less expensive than pallets to buy, store, and maintain; they may be re-used many times; and they reduce the tare weight of the load. However, they require the use of a special forklift attachment at each handling point from packer to retailer.
Depending on the size of produce package, a single pallet may carry from 20 to over 100 individual packages. Because these packages are often loosely stacked to allow for air circulation, or are bulging and difficult to stack evenly, they must be secured (unitized) to prevent shifting during handling and transit. Although widely used, plastic straps and tapes may not have completely satisfactory results. Plastic or paper corner tabs should always be used to prevent the straps from crushing the corners of packages.
Plastic stretch film is also widely used to secure produce packages. A good film must stretch, retain its elasticity, and cling to the packages. Plastic film may conform easily to various size loads. It helps protect the packages from loss of moisture, makes the pallet more secure against pilferage, and can be applied using partial automation. However, plastic film severely restricts proper ventilation. A common alternative to stretch film is plastic netting, which is much better for stabilizing some pallet loads, such as those that require forced-air cooling. Used stretch film and plastic netting may be difficult to properly handle and recycle.
A very low-cost and almost fully automated method of pallet stabilization is the application of a small amount of special glue to the top of each package. As the packages are stacked, the glue secures all cartons together. This glue has a low tensile strength so cartons may be easily separated or repositioned, but a high shear strength so they will not slide. The glue does not present disposal or recycling problems.
Pallet Bins. Substantial wooden pallet bins of milled lumber or plywood are primarily used to move produce from the field or orchard to the packing house. Depending on the application, capacities may range from 12 to more than 50 bushels. Although the height may vary, the length and width is generally the same as a standard pallet (48 inches by 40 inches). More efficient double-wide pallet bins (48 inches by 80 inches) are becoming more common in some produce operations.
Most pallet bins are locally made; therefore it is very important that they be consistent from lot to lot in materials, construction, and especially size. For example, small differences in overall dimensions can add up to big problems when several hundred are stacked together for cooling, ventilation, or storage. It is also important that stress points be adequately reinforced. The average life of a hardwood pallet bin that is stored outside is approximately five years. When properly protected from the weather, pallets bins may have a useful life of 10 years or more.
Uniform voluntary standards for wood pallets and other wood containers are administered by the National Wooden Pallet and Container Association, Washington, DC. Additionally, the American Society of Agricultural Engineers, St. Joseph, Michigan, publishes standards for agricultural pallet bins (ASAE S337.1).
Wire-Bound Crates. Although alternatives are available, wooden wire-bound crates are used extensively for snap beans, sweet corn and several other commodities that require hydrocooling. Wire-bound crates are sturdy, rigid and have very high stacking strength that is essentially unaffected by water. Wire-bound crates come in many different sizes from half-bushel to pallet-bin size and have a great deal of open space to facilitate cooling and ventilation. Although few are re-used, wire-bound crates may be dissembled after use and shipped back to the packer (flat). In some areas, used containers may pose a significant disposal problem. Wire-bound crates are not generally acceptable for consumer packaging because of the difficulty in affixing suitable labels.
Wooden Crates and Lugs. Wooden crates, once extensively used for apples, stone fruit, and potatoes have been almost totally replaced by other types of containers. The relative expense of the container, a greater concern for tare weight, and advances in material handling have reduced their use to a few specialty items, such as expensive tropical fruit. The 15-, 20-, and 25-pound wooden lugs still used for bunch grapes and some specialty crops are being gradually replaced with less costly alternatives.
Wooden Baskets and Hampers. Wire-reinforced wood veneer baskets and hampers of different sizes were once used for a wide variety of crops from strawberries to sweetpotatoes. They are durable and may be nested for efficient transport when empty. However, cost, disposal problems, and difficulty in efficient palletization have severely limited their use to mostly local grower markets where they may be re-used many times.
Corrugated Fiberboard
Corrugated fiberboard (often mistakenly called cardboard or pasteboard) is manufactured in many different styles and weights. Because of its relativity low cost and versatility, it is the dominant produce container material and will probably remain so in the near future. The strength and serviceability of corrugated fiberboard have been improving in recent years.
Most corrugated fiberboard is made from three or more layers of paperboard manufactured by the kraft process. To be considered paperboard, the paper must be thicker than 0.008 inches. The grades of paperboard are differentiated by their weight (in pounds per 1,000 square feet) and their thickness. Kraft paper made from unbleached pulp has a characteristic brown color and is exceptionally strong. In addition to virgin wood fibers, Kraft paper may have some portion of synthetic fibers for additional strength, sizing (starch), and other materials to give it wet strength and printability. Most fiberboard contains some recycled fibers. Minimum amounts of recycled materials may be specified by law and the percentage is expected to increase in the future. Tests have shown that cartons of fully recycled pulp have about 75 percent of the stacking strength of virgin fiber containers. The use of recycled fibers will inevitably lead to the use of thicker walled containers.
Double-faced corrugated fiberboard is the predominant form used for produce containers. It is produced by sandwiching a layer of corrugated paperboard between an inner and outer liner (facing) of paper-board. The inner and outer liner may be identical, or the outer layer may be preprinted or coated to better accept printing. The inner layer may be given a special coating to resist moisture. Heavy-duty shipping containers, such as corrugated bulk bins that are required to have high stacking strength, may have double- or even triple-wall construction. Corrugated fiberboard manufacturers print box certificates on the bottom of containers to certify certain strength characteristics and limitations. There are two types of certification. The first certifies the minimum combined weight of both the inner and outer facings and that the corrugated fiberboard material is of a minimum bursting strength. The second certifies minimum edge crush test (ETC) strength. Edge crush strength is a much better predictor of stacking strength than is bursting strength. For this reason, users of corrugated fiberboard containers should insist on ECT certification to compare the stackability of various containers. Both certificates give a maximum size limit for the container (sum of length, width, and height) and the maximum gross weight of the contents.
Both cold temperatures and high humidities reduce the strength of fiberboard containers. Unless the container is specially treated, moisture absorbed from the surrounding air and the contents can reduce the strength of the container by as much as 75 percent. New anti-moisture coatings (both wax and plastic) are now available to substantially reduce the effects of moisture.
Waxed fiberboard cartons (the wax is about 20 percent of fiber weight) are used for many produce items that must be either hydrocooled or iced. The main objection to wax cartons is disposal after use wax cartons cannot be recycled and are increasingly being refused at landfills. Several states and municipalities have recently taxed wax cartons or have instituted rigid back haul regulations. Industry sources suggest that wax cartons will eventually be replaced by plastic or, more likely, the use of ice and hydrocooling will be replaced by highly controlled forced-air cooling and rigid temperature and humidity maintenance on many commodities.
In many applications for corrugated fiberboard containers, the stacking strength of the container is a minor consideration. For example, canned goods carry the majority of their own weight when stacked. Fresh produce usually cannot carry much of the vertical load without some damage. Therefore, one of the primarily desired characteristics of corrugated fiberboard containers is stacking strength to protect the produce from crushing. Because of their geometry, most of the stacking strength of corrugated containers is carried by the corners. For this reason, hand holes and ventilation slots should never be positioned near the corners of produce containers and be limited to no more than 5 to 7 percent of the side area.
Interlocking the packages (cross stacking) is universally practiced to stabilize pallets. Cross stacking places the corner of one produce package at the middle of the one below it, thus reducing its stacking strength. To reduce the possibility of collapse, the first several layers of each pallet should be column stacked (one package directly above the other). The upper layers of packages may be cross stacked as usual with very little loss of pallet stability.
There are numerous styles of corrugated fiberboard containers. The two most used in the produce industry are the one piece, regular slotted container (RSC) and the two piece, full telescoping container (FTC). The RSC is the most popular because it is simple and economical. However, the RSC has relatively low stacking strength and therefore must be used with produce, such as potatoes, that can carry some of the stacking load. The FTC, actually one container inside another, is used when greater stacking strength and resistance to bulging is required. A third type of container is the Bliss box, which is constructed from three separate pieces of corrugated fiberboard. The Bliss box was developed to be used when maximum stacking strength is required. The bottoms and tops of all three types of containers may be closed by glue, staples, or interlocking slots.
Almost all corrugated fiberboard containers are shipped to the packer flat and assembled at the packing house. To conserve space, assembly is usually performed just before use. Assembly may be by hand, machine, or a combination of both. Ease of assembly should be carefully investigated when considering a particular style of package.
In recent years, large double-wall or even triple- wall corrugated fiberboard containers have increasingly been used as one-way pallet bins to ship bulk produce to processors and retailers. Cabbage, melons, potatoes, pumpkins, and citrus have all been shipped successfully in these containers. The container cost per pound of produce is as little as one fourth of traditional size containers. Some bulk containers may be collapsed and re-used.
For many years, labels were printed on heavy paper and glued or stapled to the produce package. The high cost of materials and labor has all but eliminated this practice. The ability to print the brand, size, and grade information directly on the container is one of the greatest benefits of corrugated fiberboard containers. There are basically two methods used to print corrugated fiberboard containers:
Post Printed. When the liner is printed after the corrugated fiberboard has been formed, the process is known as post printing. Post printing is the most widely used printing method for corrugated fiberboard containers because it is economical and may be used for small press runs. However, postprinting produces graphics with less detail and is usually limited to one or two colors.
Preprinted. High quality, full-color graphics may be obtained by preprinting the linerboard before it is attached to the corrugated paperboard. Whereas the cost is about 15 percent more than standard two color containers, the eye catching quality of the graphics makes it very useful for many situations. The visual quality of the package influences the perception of the product because the buyer's first impression is of the outside of the package. Produce managers especially like high quality graphics that they can use in supermarket floor displays.
Preprinted cartons are usually reserved for the introduction of new products or new brands. Market research has shown that exporters may benefit from sophisticated graphics. The increased cost usually does not justify use for mature products in a stable market, but this may change as the cost of these containers becomes more competitive.
Pulp Containers. Containers made from recycled paper pulp and a starch binder are mainly used for small consumer packages of fresh produce. Pulp containers are available in a large variety of shapes and sizes and are relatively inexpensive in standard sizes. Pulp containers can absorb surface moisture from the product, which is a benefit for small fruit and berries that are easily harmed by water. Pulp containers are also biodegradable, made from recycled materials, and recyclable.
Paper and Mesh Bags. Consumer packs of potatoes and onions are about the only produce items now packed in paper bags. The more sturdy mesh bag has much wider use. In addition to potatoes and onions, cabbage, turnips, citrus, and some specialty items are packed in mesh bags. Sweet corn may still be packaged in mesh bags in some markets. In addition to its low cost, mesh has the advantage of uninhibited air flow. Good ventilation is particularly beneficial to onions. Supermarket produce managers like small mesh bags because they make attractive displays that stimulate purchases.
However, bags of any type have several serious disadvantages. Large bags do not palletize well and small bags do not efficiently fill the space inside corrugated fiberboard containers. Bags do not offer protection from rough handling. Mesh bags provide little protection from light or contaminants. In addition, produce packed in bags is correctly perceived by the consumer to be less than the best grade. Few consumers are willing to pay premium price for bagged produce.
Plastic Bags. Plastic bags (polyethylene film) are the predominant material for fruit and vegetable consumer packaging. Besides the very low material costs, automated bagging machines further reduce packing costs. Film bags are clear, allowing for easy inspection of the contents, and readily accept high quality graphics. Plastic films are available in a wide range of thicknesses and grades and may be engineered to control the environmental gases inside the bag. The film material 'breathes' at a rate necessary to maintain the correct mix of oxygen, carbon dioxide, and water vapor inside the bag. Since each produce item has its own unique requirement for environmental gases, modified atmosphere packaging material must be specially engineered for each item. Research has shown that the shelf life of fresh produce is extended considerably by this packaging. The explosive growth of precut produce is due in part to the availability of modified atmosphere packaging.
In addition to engineered plastic films, various patches and valves have been developed that affix to low-cost ordinary plastic film bags. These devices respond to temperature and control the mix of environmental gases.
Shrink Wrap. One of the newest trends in produce packaging is the shrink wrapping of individual produce items. Shrink wrapping has been used successfully to package potatoes, sweetpotatoes, apples, onions, sweet corn, cucumbers and a variety of tropical fruit. Shrink wrapping with an engineered plastic wrap can reduce shrinkage, protect the produce from disease, reduce mechanical damage and provide a good surface for stick-on labels.
Rigid Plastic Packages. Packages with a top and bottom that are heat formed from one or two pieces of plastic are known as clamshells. Clamshells are gaining in popularity because they are inexpensive, versatile, provide excellent protection to the produce, and present a very pleasing consumer package. Clamshells are most often used with consumer packs of high value produce items like small fruit, berries, mushrooms, etc., or items that are easily damaged by crushing. Clamshells are used extensively with precut produce and prepared salads. Molded polystyrene and corrugated polystyrene containers have been test marketed as a substitute for waxed corrugated fiberboard. At present they are not generally cost competitive, but as environmental pressures grow, they may be more common. Heavy-molded polystyrene pallet bins have been adopted by a number of growers as a substitute for wooden pallet bins. Although at present their cost is over double that of wooden bins, they have a longer service life, are easier to clean, are recyclable, do not decay when wet, do not harbor disease, and may be nested and made collapsible.
As environmental pressures continue to grow, the disposal and recyclability of packaging material of all kinds will become a very important issue. Common polyethylene may take from 200 to 400 years to breakdown in a landfill. The addition of 6 percent starch will reduce the time to 20 years or less. Packaging material companies are developing starch-based polyethylene substitutes that will break down in a landfill as fast as ordinary paper.
The move to biodegradable or recyclable plastic packaging materials may be driven by cost in the long term, but by legislation in the near term. Some authorities have proposed a total ban on plastics. In this case, the supermarket of the early 21st century may resemble the grocery markets of the early 20th century.
Produce package standardization is interpreted differently by different groups. The wide variety of package sizes and material combinations is a result of the market responding to demands from many different segments of the produce industry. For example, many of the large-volume buyers of fresh produce are those most concerned with the environment. They demand less packaging and the use of more recyclable and biodegradable materials, yet would also like to have many different sizes of packages for convenience. Packers want to limit the variety of packages they must carry in stock, yet they have driven the trend toward preprinted, individualized containers. Shippers and trucking companies want to standardize sizes so the packages may be better palletized and handled.
Produce buyers are not a homogeneous group. Buyers for grocery chains have different needs than buyers for food service. For grocery items normally sold in bulk, processors want largest size packages that they can handle efficiently - to minimize unpacking time and reduce the cost of handling or disposing of the used containers. Produce managers, on the other hand, want individualized, high quality graphics to entice retail buyers with in-store displays.
Selecting the right container for fresh produce is seldom a matter of personal choice for the packer. For each commodity, the market has unofficial, but nevertheless rigid standards for packaging; therefore it is very risky to use a nonstandard package. Packaging technology, market acceptability, and disposal regulations are constantly changing. When choosing a package for fresh fruits and vegetables, packers must consult the market, and in some markets, standard packages may be required by law. Table 1. Some common shipping containers by commodity. Apples
45 lb 1 1 8 bushel cartons, loose
40 to 45 lb cartons, tray-pack
40 lb bushel cartons, tray- or cell-pack
40 lb bushel cartons, loose
40 lb cartons, ten 4 lb bags
40 lb cartons, eight 5 lb bags
40 lb cartons, sixteen 8 count trays, over wrapped
38 to 42 lb cartons, loose
37 to 43 lb cartons, cell-pack
36 lb cartons, twelve 3 lb bags
20 lb half-bushel cartons, loose Blueberries
11 lb flats, twelve 1 pint cups
9 lb flats, twelve 250 gram cups
5 lb flats, twelve 8 oz baskets Asparagus
30 lb pyramid cartons/crates, bunched or loose
28 lb cartons/crates, bunched
25 lb lugs/cartons, loose
24 lb cartons, sixteen 1 1 2 lb packages
21 lb lugs/cartons, loose
20 lb pyramid cartons/crates
20 lb cartons, bunched
15 to 17 lb pyramid cartons/crates, bunched or loose
14 lb cartons, loose
12 lb cartons, loose
12 to 13 lb cartons/crates, bunched
11 lb cartons/crates, loose Broccoli
Bunched
21 lb cartons/crates, 14s and 18s
Crown-Cut
20 lb cartons, loose
Florets
10 lb film bags
5 lb film bags
Beans
All Types
26 to 31 lb bushel crates/hampers
25 to 30 lb cartons/crates, including semi-telescope types
Snap Beans
20 to 22 lb cartons
15 lb cartons
Yellow wax beans
30 lb bushel hampers/crates Brussels Sprouts
25 lb cartons, loose
10 lb flats/cartons Beets
50 lb mesh bags
45 lb wirebound crates/cartons, bunched in 12s
38 lb cartons/crates, bunched in 12s
35 lb half crates, loose
32 lb 4 5 bushel crate
25 lb bags, loose
20 lb cartons/crates, bunched in 12s
Cabbage
Green and Red
2,000 lb bulk bins
1,000 lb bulk bins
50 to 60 lb flat crates
50 lb 1 3 4 bushel crates/cartons/bags
45 lb cartons
40 lb cartons/bags
Savoy
40 lb 1 3 4 bushel crates
Chinese
80 to 85 lb crates
45 to 54 lb crates
50 to 53 lb carton
Carrots
Topped
50 lb cartons/bags, loose
50 lb cartons, ten 5 lb bags
48 lb master bags, containing forty eight 1 lb, twenty-four 2 lb or sixteen 3 lb bags
26 lb cartons, bunched
25 lb bags, loose
24 lb cartons, containing twenty four 1 lb bags
15 lb cartons, containing twenty 12 oz bags
Bunched
26 lb cartons/crates, 24s
Baby whole
24 lb cartons, containing twenty four 1 lb film bags 20 lb cartons, containing twenty 1 lb bags
15 lb cartons, containing twenty 12 oz bags Cantaloupe
1,000 lb pallet bins
800 lb pallet bins
80 lb jumbo crates
60 lb 1 3 4 bushel cartons
54 lb cartons
45 to 50 lb wirebound crates
40 lb cartons/crates
40 lb 1 1 9 bushel cartons/crates Cauliflower
60 lb wirebound crates
50 lb cartons/crates (Long Island Type)
25 to 30 lb cartons,12s and 16s film-wrapped and trimmed
Eggplant
33 lb bushels or 1 1 9 bushel cartons/crates/baskets
26 to 28 lb cartons/crates/lugs
25 lb cartons
22 lb lugs/cartons, 18s and 24s
17 lb 1 2 bushel lugs
Chinese
26 lb lugs
25 lb cartons
15 lb 1 2 bushel cartons/crates
Italian
26 lb lugs
15 lb 1 2 bushel cartons/crates
Japanese
15 lb 1 2 bushel cartons/crates Corn
50 lb cartons/crates/bags
42 lb cartons/crates/bags
37 lb mesh bags
Grapes
Bunch 24 lb crates, eight 2-quart baskets
22 to 23 lb cartons/lugs
21 lb lugs
20 lb 12-quart baskets
16 lb lugs,16 lb bagged/wrapped
Muscadines
12 lb flats, twelve 1 pint cups
Cucumbers
Pickling
55 lb 1 1 9 bushel cartons/crates
Slicers
50 lb bushel cartons/crates
30 lb cartons, 48s
28 lb 5 9 bushel cartons/crates
24 lb cartons, 36s and 42s
22 lb cartons, 24s
Greenhouse
16 lb cartons, loose, film-wrapped
12 lb flats/cartons, loose, film-wrapped Greens
30 to 35 lb 1 2 5 bushel and 1 3 5 bushel crates
20 to 25 lb bushel baskets/crates/cartons
20 to 25 lb 12-24 bunches per crates/cartons Melons
Casaba and Crenshaw
32 to 34 lb cartons, 4s, 5s 6s
48 to 51 lb flat crate, 5s 6s Honeydew
35 lb flat crates
30 lb cartons Okra
30 lb bushel baskets/crates/hampers
23 lb 3 4 bushel hampers
15 lb 1 2 and 5 9 bushel baskets/crates/lugs/clamshells
Lettuce
Iceberg
50 lb cartons, 30s, 24s, 18s
30 lb cartons
20 lb cartons
Boston
22 lb 1 1 9 bushel crates
20 lb cartons/crates, 24s
10 lb flat cartons/crates
5 lb 12-quart baskets/cartons
Bibb
10 lb flat cartons/crates
5 lb 12-quart baskets/cartons
5 lb baskets, greenhouse
Looseleaf
25 lb cartons/crates
20 lb 4 5 bushel crates
14 lb 1 1 9 bushel crates
10 lb baskets/cartons
Romaine
40 lb 2 3 cartons/crates
28 lb 1 1 3 bushel cartons
22 lb 1 1 9 bushel cartons/crates
22 lb carton, 24s Onions, bulb
50 lb cartons/bags/crates, loose
50 lb cartons, containing ten 5 lb bags
48 lb cartons, containing sixteen 3 lb bags or 24 2 lb bags
45 lb cartons, containing fifteen 3 lb bags
40 lb cartons, containing twenty 2 lb bags
40 lb cartons, loose 36 lb cartons, containing twelve 3 lb bags
32 lb cartons, sixteen 2 lb bags
25 lb bags/cartons, loose
24 lb cartons, containing twelve 2 lb bags
10 lb bags, loose
Peppers
Bells
35 lb 1 1 4 bushel cartons
30 lb cartons/crates
28 lb bushel and 1 1 9 bushel cartons/crates
25 lb cartons
14 to 15 lb half-bushel cartons
11 lb flat cartons
Jalapenos and Chilies
16 to 25 lb half- and 5 9 bushel cartons/crates, loose
20 lb cartons, loose 10 lb cartons, retail packs Onions, green
28 lb cartons, bunched 12s, bulb-type
20 lb cartons/crates, bunched 24s, bulb-type
13 lb cartons, bunched 48s
11 lb cartons, bunched 36s Potatoes
100 lb bags
50 lb cartons/bags
50 lb carton, containing five 10 lb or ten 5 lb bags Peaches
38 lb 3 4 bushel cartons/crates
35 lb cartons
26 lb cartons
25 lb 1 2 bushel cartons/crates
22 lb 2-layer carton
11 lb crates/flats,1-layer tray pack
10 lb cartons
9 lb cartons,1-layer Pumpkins
1,000 lb bins
50 lb cartons/crates/bags
25 lb 1 2 bushel cartons/crates
Peas
Green
30 lb bushel baskets/crates/hampers
30 lb 1 1 9 bushel crates/cartons
Snow, China, Sugar, Sugar Snap
10 lb cartons
Southern
25 lb bushel hampers
Radishes
Topped
40 lb bags, loose
25 lb bags, loose
14 lb cartons, containing fourteen 1 lb bags
12 lb baskets/cartons, containing thirty 6 oz bags
Bunched
35 lb cartons/crates, 48s, 24s
30 lb 4 5 bushel cartons/lugs
20 lb cartons/crates, containing 24 bunches
15 lb cartons/crates, 24s
Squash
Summer
42 lb bushel and 1 1 9 bushel carton
35 lb cartons/crates
30 lb 3 4 bushel cartons/crates
26 lb cartons/lugs
21 lb 1 2 or 5 9 bushel baskets/cartons/crates
10 lb 8-quart baskets/cartons
Winter
50 lb 1 1 9 bushel cartons/crates
40 lb cartons/crates
35 lb cartons/crates
12 lb flats, 6 quarts Spinach
32 lb 1 2 3 bushel cartons/crates
25 lb bushel carton/crates
20 lb cartons, 24s
12 lb bags
10 lb 24 quart baskets
8 lb cartons, twelve 10 oz bags Sweetpotatoes
800 lb bulk bins
40 lb cartons/crates
40 lb cartons, containing eight 5 lb bags
20 lb boxes
10 lb boxes
5 lb cartons/bags
Tomatoes
28 lb 1 2 or 4 7 bushel cartons
25 lb cartons, loose
20 lb cartons/flats, loose or layered
Cherry
15 lb flats, containing twelve 1-pint cups
5 lb cartons, containing nine 250-gram cups
Mature Green
25 lb cartons, loose
20 lb cartons, loose or layered
10 lb cartons, loose
Greenhouse
15 lb flats, 1-layer
Plum or Roma
25 lb cartons, loose Watermelon
1,000 lb pallet bins
100 lb cartons
85 lb cartons, various counts
40 lb cartons
35 lb cartons (Mickey Lee) Turnips
50 lb bushel basket/bags
40 lb cartons, bunched
25 lb half-bushel baskets/cartons/crates/bags
24 lb cartons, twenty-four 1 lb bags
20 lb cartons, bunched 12s 2006 State Of The Business Incubation Industry Pdf Printer Software
Back Haul. The return trip from delivering produce or any item to its destination. For efficiency, truckers try to limit empty unproductive (known as dead-heads) back hauls.
Bulk Container. A container designed to contain a relatively large quantity of produce. Bulk containers are used in conjunction with a shipping pallet but are normally separate from the pallet. Bulk containers may carry up to 2,000 lb of produce. Compare to pallet bin.
Bulk Produce. Produce handled in generally truckload lots but not in small containers such as cartons, bags, etc. Bulk produce may be transported in gondolas, dump trucks, or refrigerated vans. Bulk produce is mostly used for processing.
Container. Any type of box, carton, bag, or bin used to form a package of produce. See package.
Corrugated Fiberboard. Common packaging material made from a layer of corrugated fiberboard sandwiched between two additional layers of fiberboard. Sometimes mistakenly called pasteboard or cardboard.
Carton . A container of various construction, but usually made from corrugated fiberboard or possibly plastic, that generally contains fifty pounds or less of fresh produce.
Cold Chain. Most types of produce require continuous postharvest refrigeration for maximum quality maintenance. On-farm refrigeration, refrigerated transport, the buyer's refrigerated receiving warehouse, and refrigerated retail displays all form the cold chain.
Controlled Atmosphere Package. An engineered package where the interaction between the produce and the packing material actively regulates a beneficial mix of environmental gases. See Modified Atmosphere package.
Count Packing. Packing method in which a certain specified number of sized and graded items are placed in the carton.
Fiberboard. A paper material usually made by the kraft process having a thickness greater than .008 inches. Fiberboard may contain additional materials for strength and resistance to water.
Field Packing. A packing method in which all harvesting, grading, and packing functions are performed at the same time in the field or orchard.
Food Service. An enterprise whose function is to supply food items, including fresh produce, to institutions, restaurants, and increasingly, grocery outlets.
Forced-Air Cooling. Forced-air cooling is a commonly used cooling method that utilizes specially constructed portable fans or rooms to draw chilled air horizontally through pallets or stacks of packaged produce. A properly designed forced-air cooling system is fast, energy efficient and relatively inexpensive. It may be utilized on most types of produce.
Fresh-Cut. A value adding process where fresh produce is shredded, trimmed, sliced, or otherwise prepared for consumer use. Fresh-cut produce is generally prepared by a processor or retailer and requires increased attention to sanitation, packaging, handling, the storage environment and labeling. Also called pre-cut or ready-cut.
Hundredweight. A unit of one hundred pounds. Abbreviated Cwt.
Hydrocooling. Cooling freshly harvested produce by flooding, immersing, or spraying with large quantities of cold water. Compared to other cooling methods, hydrocooling is fast and generally thorough. Hydrocooling is limited to those produce items that will tolerate liquid water.
Icing. Cooling fresh produce by the addition of crushed ice or a slurry of crushed ice and water over the top of a load or to each individual package. This method is limited to those produce items that are not harmed by contact with ice.
Layer Packing. Packing method where the entire package of produce is packed in orderly layers.
Lug. A sturdy container, often wholly or partially of wood, designed to have high stacking strength. Lugs are often used for soft fruit such as grapes, berries or tomatoes that are easily damaged by crushing.
Face Packing. A packing method where most of the container is loose or volume filled except for top layer. Items in the top layer are arranged in an orderly pattern for appearance.
Master (flat). A type of carton designed to contain smaller, usually consumer size, units of produce. Masters designed to contain 8 quarts or 12 pints or half pints are commonly used with strawberries and other small fruit.
Mixed Load. A single truck load of fresh produce consisting of two or more products shipped together. The use of mixed loads reduce transportation costs but care must be exercised to prevent ethylene or odor contamination.
Modified Atmosphere Packaging. A method of packaging in which the produce is packed in a sealed container into which a specific mix of gases are introduced. The container only prevents the gases from escaping and does not regulate the mix.
Pallet Bin . A bulk bin made integral to a pallet for the transport of bulk produce. Pallet bins may be made of wood, plastic or some other sturdy material and are primarily intended to be used between the field/orchard and packing house.
Packout Rate. The portion, often expressed as a percentage, of harvested produce actually packed for shipment. That portion not packed is referred to as culls.
Package. Any type of filled box, carton, bag, or bin of product. See container.
Packing House. A facility designed to wash, grade, or trim harvested produce but primarily to place the produce into containers suitable for sale.
Postharvest Handling. Any operation performed after harvest constitutes postharvest handling. Among these operations are washing, grading, packing, storing, cooling, transporting, and marketing.
Precooling. Precooling is the practice of cooling bulk produce prior to grading and packaging although the term has been used to describe cooling at any time before transport. The practice of true precooling is gradually fading since precooled product has an opportunity to warm during subsequent operations. The broader term 'cooling' has now almost replaced 'precooling.'
Room Cooling. Room cooling is the practice of storing bulk or packaged produce in a refrigerated room for an indefinite period. By the processes of conduction and convection, the heat is gradually removed from the produce. Because the outside of the containers cool more rapidly than the inside, the cooling is uneven and slow. The cooling rate of room cooling may be sufficient for many not very perishable produce items such as potatoes, cabbage, or root crops, however, it has proven unsatisfactory for many very perishable items such as strawberries, blueberries, and snap beans.
Shipper. An individual or company that transports produce from the grower to the buyer. Growers, packers, or buyers often assume their own shipping function.
Slip Sheet. A sheet of material, roughly the size of a pallet, of corrugated fiberboard, plastic, or a combination of these materials designed as a replacement for a shipping pallet.
Stacking Strength. The ability of a container to resist a specified vertical load without significant deformation.
Weight Packing. Packing method where a specified minimum weight, but not necessarily number of produce items, are packed in a container.
Vacuum Cooling. When warm produce is placed inside a closed container and reduced to a partial vacuum, a small portion of the water in the produce evaporates, causing a cooling effect. Vacuum cooling is fast and may be utilized very effectively on packaged produce. It is generally more effective on those items with a large surface area to weight ratio such as lettuce and various greens.
Vibration Fill Packing. A packing method designed to reduce bruising and scuffing of the produce. After filling, the package is gently vibrated to maximize product density and stability. 2006 State Of The Business Incubation Industry Pdf Printer Scanner
Volume Fill Packing. Packing method where a specified volume of produce is packed in the container. Both the number of individual produce items and the weight may vary in volume fill packing.
Ashby, B.H., et al. 1987. Protecting perishable foods during transport by truck, Handbook no. 669. USDA, Office of Transportation. Washington, DC.
Erdei, William H. 1993. Bar codes: design, printing and quality control. McGraw-Hill, New York.
Hardenberg, R.E., A.E. Watada and C.Y. Wang. 1986. The commercial storage of fruits, vegetables and florist and nursery stocks. USDA Handbook 66 (revised). Washington, D.C. GPO.
McGregor, B.M. 1987. Tropical Products Transport Handbook, Handbook no. 668. USDA, Office of Transportation. Washington, DC.
Mitchell, F.G., R. Guillou and R.A. Parsons. 1972. Commercial cooling of fruits and vegetables, Manual 43. California Agricultural Experiment Station. Davis, CA.
Moline, H.E., ed. 1984. Postharvest pathology of fruits and vegetables: postharvest losses in perishable crops, publication NE-87. California Agricultural Experiment Station, Davis, CA.
Nicholas, C.J. 1985. Export handbook for U.S. Agricultural Products, Handbook no. 593. USDA, Office of Transportation. Washington, DC.
Nonneck, l .L. 1989. Vegetable Production. Van Nostrand Reinhold Company. New York.
O'Brien, M., L.L. Claypool, S.J. Leonard, G.K. York and J.H. McGillivray. 1963. Causes of fruit bruising on transport trucks. Hilgardia, vol. 35, no. 6. University of California. Davis, CA.
Paine, F.A., ed. 1987. Modern Processing, Packaging and Distribution Systems for Food. Van Nostrand Reinhold Company, New York.
Patchen, G.O. 1969. Effects of vent holes on strength of fiberboard boxes and fruit cooling rate, ARS 52-34. USDA-ARS. Washington, DC.
Parsons, R.A., F.G. Mitchell and G. Mayer. 1972. Forced-air cooling of palletized fresh fruit. Transactions of the ASAE. 15(4):729-731.
Pierce, L.C. 1987. Vegetables: Characteristics, Production and Marketing. John Wiley and Sons. New york.
Stephens, J.M. 1988. Manual of Minor Vegetables, Bulletin SP-40. University of Florida. Gainesville, FL.
Stokes, D.R. 1974. Standardization of shipping containers for fresh fruits and vegetables, Handbook no. 991. USDA-ARS. Washington, DC.
1993. Uniform voluntary standard for wooden pallets. National Wooden Pallet and Container Association. Washington, DC.
1982. Wirebound boxes and crates, Bulletin 419. Package Research Laboratory. Rockaway, NJ.
1992. Fibre Box Handbook, 20th ed. Fibre Box Association. Rolling Meadows, lL.
This publication was sponsored by the Energy Division, North Carolina Department of Commerce, with State Energy Conservation Program funds, in cooperation with North Carolina State University. The opinions, findings, conclusions, or recommendations expressed herein are those of the authors and do not reflect the views of the Energy Division, North Carolina Department of Commerce.
Find more information at the following NC State Extension websites:
Publication date: Sept. 1, 1996
AG-414-08 2006 State Of The Business Incubation Industry Pdf Printer Copier
N.C. Cooperative Extension prohibits discrimination and harassment regardless of age, color, disability, family and marital status, gender identity, national origin, political beliefs, race, religion, sex (including pregnancy), sexual orientation and veteran status. 2006 State Of The Business Incubation Industry Pdf Printer Paper This publication printed on: Dec. 12, 2020