Food trade and export: What is food distribution? It is a method of distribution of goods , which includes the method of transferring and transporting food products and beverages from one region to another region , depending on what the product is .
Food trade and export | The best food exporter | Anusha
The main parts of food distribution include :
- The type and method of transportation = which can be referred to the movement of materials by ships , planes , land routes , etc .
- How to store food = taking care of food and preventing it from spoiling until it reaches the destination .
- Sufficient resources
The importance of food distribution ?
If a farmer does not have enough diversity in her products , she cannot communicate with all the sellers ,
so she needs to plant and harvest a variety of products and also be able to communicate with other farmers and distributors .
Distributors are the link between retailers and manufacturers .
Perishable goods spend about half of their consumption life in the transportation process . Every year ,
billions of dollars of food is wasted just because of poor transportation and spoilage during transit .
For the consumer , producer and all the intermediaries , distribution of food and its distribution is of undeniable importance .
All kinds of food distribution :
There are generally two types of broadcasts :
- Distribution in traditional ways , through registered contracts to wholesalers .
- Capillary distribution , which is more efficient , more practical and modern , and of course brings more profit to the business. In capillary distribution of food , all intermediaries are removed and products reach consumers directly .
Distribution of food in the old way :
- Cash handling and distribution : In this method , distributors provide warehouses for viewing , selecting and selling food . Buyers go to these warehouses and get their desired food products .
- Redistribution : In this method , food products are not sold directly , but are purchased from the manufacturer and sold between smaller distributors who do not have the ability to buy in bulk .
- Specialized distribution : Distributors who specialize in transporting a specific type of product and have suitable equipment for those products , only distribute the same food products .
- Public Distribution : This form of distribution deals with distribution of all products in high volumes , with significant benefits and discounts .
New ideas about food distribution :
- Working and signing a contract with a company that operates in the field of wholesale has three advantages , which are :
- The workload is less compared to sending products directly from the manufacturer to the retailers .
- The broadcasting companies in question have already found their customers and have a history of cooperation with them .
- Broadcast companies often have a team for marketing , consulting , shipping , and whatever job title is needed in the field . By cooperating with these companies , you will also enjoy these benefits .
- Distribution of products to consumers : For some manufacturers , it is important to be able to have more control over how their products are sold and distributed . If you belong to this category , direct distribution of products is more suitable for you . You can set up a store to distribute and sell your products .
- Cooperation with food service providers : Sell your products to hotels , restaurants and hospitals . The advantage of this method is the previous connections of food service providers with related businesses and consumers .
- Distribution of food products with a special label : The advantage of this form of food distribution is access to more customers and the possibility of customer loyalty . However , few retailers are willing to cooperate with this method .
- Professional distribution of products : Some food items require special distributors . If you produce such products , it is better to use specialized distribution . These products have special broadcasting conditions ; For example , they need special machinery for transportation or a certain environment for storage , or they are not found in all grocery stores and are unique . Cooperation with specialized distributors brings you to your specific customers ; Because these companies already have a history of cooperation with them and have built communication bridges . However , this idea also costs you more .
- Major and public broadcasters : The advantage of using public distribution is that your products can be found in all stores , restaurants and retailers . As a result , you will have access to a wide network of customers . Capillary sales and distribution is a subset of this distribution method .
Food distribution risks :
In food distribution , you may face various challenges , which include :
The first challenge : temperature and humidity = A small mistake in temperature and humidity can cost all
the products or reduce their useful life . Do not forget that for each product , the required temperature must
always be controlled. Fresh products are preferably placed in the refrigerator ; Because bacteria grow in warm
environments . Fruits and vegetables need a cold and humid environment to maintain their freshness .
The second challenge : technology= New technologies help to simplify transportation , reduce costs , and use more effective methods of delivering goods .
The third challenge : damage and destruction in the transfer process = We can easily consider the damage of
the product in transportation as equal to its exit from the sales cycle . Some distribution companies do not respect
the necessary proportion between the volume of products sent and the capacity of vehicles . This will result in lower cost of broadcasting and significant loss in business .
The fourth challenge : changes in demand = The prepared products must be sufficient and of course in size.
Excess inventory that is not sold at the right time and spends too much time in the warehouse is doomed to
destruction . Another noteworthy point is seasonal changes and its effects on customers’ choices . These changes
are somewhat predictable , but in any case , it is not easy to recognize changes in customer taste and demand .
The fifth challenge : Vehicle costs and repairs = For the food distribution company , this issue is the biggest challenge in distribution .
The cost of transportation is generally high , and in it , the cost of fuel , insurance , driver’s salary , and costs related to
repairs and maintenance of equipment should also be considered .
Carrying food over long distances :
A wide variety of foods are produced all over the world , and some of them can be grown and produced in certain regions .
For this reason , goods and food are exported to different places . The most important reason for carrying food is :
- Providing areas with high population density .
- Creating food diversity in different seasons .
- Allowing regions to focus on producing important products .
The importance of food distribution :
Food distribution is a very vital communication link between producers and sellers . Manufacturers must somehow
communicate with chain stores to get their products to customers before they spoil .
Income of food distribution companies :
Food distribution has high revenues and good return on investment .
How to establish a food distribution company :
It is necessary to apply for a license from the relevant authorities and obtain a license from the Food Organization . Material distribution
companies need at least 5 people to be established , of which 3 people are elected as board of directors and 2 people are elected as inspectors .
None of the auditors of the company should have a family relationship with the members of the board of directors . Also , at the beginning ,
a minimum capital is required , 35% of which must be deposited into the company’s bank account at the time of registration .
The registration period for private equity companies is usually 15 days , and the fact that the company is a private equity company will be mentioned before the name of the company .
Food distribution
is a critical process that ensures people have access to food . Here are some key programs and methods related to food distribution :
USDA Food Distribution Programs :
The Commodity Supplemental Food Program ( CSFP ) provides nutritious USDA Foods to low-income pregnant women , new mothers , infants , children , and the elderly .
The Department of Defense ( DoD ) Fresh Fruit & Vegetable Program partners with schools to distribute fresh fruits and vegetables using federal commodity entitlement dollars .
The Food Aid Program supplies agricultural commodities to feed hungry
people in needy countries through donations and concessional programs .
The Food Distribution Disaster Assistance Program provides USDA Foods
to disaster relief organizations for mass feeding or household distribution .
The Food Distribution Program Reservations ( FDPIR ) serves low-income
families and elderly individuals residing on or reservations .
The National Processing Pilot Program allows processors to convert raw bulk USDA Foods into convenient end products for eligible recipient agencies .
The Emergency Food Assistance Program ( TEFAP ) supplements the diets of low-income individuals by providing emergency food and nutrition assistance .
Drive-Thru Pantries :
A drive-thru pantry is a convenient way to receive free food and groceries without leaving your car . These pantries allow you to pick up a mix of nutritious items , making it easier for individuals and families to access food .
Global Food Distribution :
Food distribution varies by location and is a subset of the broader food system . The Food and Agriculture Organization
( FAO ) plays a key role in understanding and improving food distribution worldwide .
How to obtain a license for food distribution companies :
Food distribution companies need to obtain a license before starting their activity in the field of food distribution .
This group of companies must first file a case in the goods and services market development office and receive a license .
Then they can start their activity and work in the field of distributing materials . In order to get a license , an expert must check your file and fix possible defects .
After that , the association of food distribution companies must conduct the necessary checks on your application and confirm
the company’s qualification . As a result , the association introduced the company to the headquarters unit of Basij Economy
to obtain the certificate of the goods distribution system , so that this unit can inquire about the results of the investigations .
Finally , this body decides whether a license can be issued to the company in question or not .
In general , how to issue a license to start the activity of food distribution companies takes time , but it is not particularly difficult .
You just need to spend enough time to get the company license .
