INTRODUCTION

Food processing plays an important role in economic development. Food

processing can provide new outlets for agricultural output, raising the income of farmers,

who tend to be poorer than the non-farmers. This sector is sometimes involved in

providing credit, seed, and technical assistance to producers in order to obtain a higher-

value crop. Furthermore, food processing generates employment, more so than many

other manufacturing sectors because it is relatively labor-intensive. Furthermore, since

food processing plants are often located in rural areas, they create jobs for rural

households, where poverty is often concentrated. Finally, the food processing sector can

play a role in improving nutrition through fortification and the supply of foods with

longer shelf-life (Austin, 1996).

On the other hand, food processing should not be seen as a panacea. Food

processors may prefer to purchase raw materials from larger, well-endowed farmers

rather than the poorest farmers. The employment created by the food processing sector is

usually relatively low-paying, at least compared to other manufacturing sectors. And

processed foods are usually more important in the consumption patterns of high income

than low-income households. Nonetheless, a healthy and dynamic food processing sector

is an important component in the process of economic development and industrialization

TABLE OF CONTENTS

ACKNOWLEDGMENTS

TABLE OF CONTENTS

LIST OF TABLES

1. FOOD PROCESSING SECTOR 1

1.1. INTERNATIONAL PATTERNS IN FOOD PROCESSING 1

1.2. FOOD PROCESSING IN VIET NAM 5

2. RICE MILLING 13

2.1. BACKGROUND 13

2.2. RICE PRODUCTION AND MARKETING 14

2.3. RICE MILLING INDUSTRY 18

2.4. RICE CONSUMPTION 22

2.5. PROSPECTS AND POLICY ISSUES 25

2.6. SUMMARY AND CONCLUSIONS 36

3. COFFEE PROCESSING 44

3.1. BACKGROUND 44

3.2. COFFEE PRODUCTION 44

3.3. COFFEE PROCESSING AND MARKETING 47

3.4. COFFEE CONSUMPTION 53

3.5. PROSPECTS AND POLICY ISSUES 57

3.6. CONCLUSIONS AND RECOMMENDATIONS 67

4. FRUIT AND VEGETABLE PROCESSING 73

4.1. BACKGROUND 73

4.2. FRUIT AND VEGETABLE PRODUCTION AND MARKETING 73

4.3. FRUIT AND VEGETABLE PROCESSING 76

4.4. FRUIT AND VEGETABLE DEMAND 79

4.5. PROSPECTS AND POLICY ISSUES 82

4.6. CONCLUSIONS AND RECOMMENDATIONS 91

5. SEAFOOD PROCESSING 98

5.1. BACKGROUND 98

5.2. SEAFOOD PRODUCTION AND MARKETING 100

5.3. SeAFOOD PROCESSING 103

5.4. SEAFOOD CONSUMPTION 104

5.5. PROSPECTS AND POLICY ISSUES 107

5.6. CONCLUSIONS AND RECOMMENDATIONS 117

6. CONCLUSIONS

6.1 CONCLUSIONS FOR THE FOOD PROCESSING SECTOR 123

6.2 RECOMMENDATIONS FOR THE FOOD PROCESSING SECTOR 126

6.3 CONCLUSIONS AND RECOMMENDATIONS FOR THE RICE SUBSECTOR 130

6.4 CONCLUSIONS AND RECOMMENDATIONS FOR THE COFFEE SUBSECTOR 131

6.5 CONCLUSIONS AND RECOMMENDATIONS FOR THE FRUIT AND VEGETABLE SUBSECTOR 133

6.6 CONCLUSIONS AND RECOMMENDATIONS FOR THE SEAFOOD SUBSECTOR 134

REFERENCES 140