ANNEX A.

Suppliers

The escalating complexity of food processing operations coupled with stricter regulatory control make the choice of raw materials, equipment, ingredients and service suppliers more critical than ever. Suppliers must understand client needs and the total business environment. The relationship between supplier and processor is now more a partnership than a one-time transaction. For example, a processor might demand third party verification of the grower's ability to meet GAPs during crop production, GMPs in shipping, and proscribed quality standards upon delivery. The processor, in turn may need to demonstrate a workable HACCP plan to the buyer, certify the quality in addition to the safety of the final product. Retailers may demand traceback assurance back to the farm. Equipment manufacturers equally have extended obligations relating to the safety, sanitary construction and durability of their wares.

These interrelationships complicate juice production logistics, but they are the unavoidable price of doing business. There are some positive features of this system. Product uniformity, safety and quality are apt to be higher. Unpleasant, well-publicized recalls are minimized. When recalls do occur, implementation is more efficient and liability assessment is less ambiguous.

In addition, suppliers have a much better grasp of industry needs and have developed improved products to meet the demand, albeit at a higher cost. Communications and information transfer between suppliers and processors are much easier. There are few suppliers that are not listed in trade journal guides, together with toll-free phone listings plus, increasingly, Internet addresses. Competition demands it. Therefore processors can readily obtain preliminary information on all possible supplier services. Upon review, they can target explicit inquiries to the appropriate supplier sources.

This is the situation in the developed world. It's more difficult to perform this process in the developing world for the following reasons:

• The operating scale is apt to be much smaller, entailing higher costs or specialized manufacture. For example a one head citrus juicer might cost 1/3^rd that of a larger six-head extractor,
• Used equipment is less available and more costly for the same reason. When key items do exist they may well have been depreciated to zero by the previous owner and require exceptional mechanical services to operate and maintain,
• Parts, services, and trained labour are less available and more costly. In Europe or the United States of America, it is a simple matter to order a critical part and have it shipped and delivered the same day. Not so with international airfreight, import, and customs restrictions,
• Equipment may not exist or suppliers may not have experience with a needed operation. Can a Ginaca machine be adapted to conical pineapples? Is there an automatic mango or papaya peeler suitable for the many different cultivars?
• Even if the answers to the above questions are positive, will a firm be willing to manufacture units for a limited market at a reasonable price? Suppose proprietary designs are blatantly copied and sold overseas in competition with the original developer?
• Trustworthy company representatives and reliable services are scarce in many regions. Those that exist are overworked and less experienced.

Fortunately, the situation is changing for the better. The international network of suppliers is growing along with reliable representation. (`Reliable' is the operative word here. Shady wheelers and dealers continue to represent unaware suppliers to the detriment of clients and businesses). Therefore, juice processors must network carefully, become aware of their technical needs and economic limitations and explore supplier alternatives thoroughly. The technical and trade literature, industrial exhibits, Internet links and personal contacts via networking are all essential tools in building and maintaining supplier relationships.