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Hospital Accounting

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Hospitality Accounting

Hilton Hotels & Resorts pride themselves in being the second largest hotel chain in the world. The measure is based on the bed capacities of the hotels across the globe. Started in 1919 by Conrad Hilton, the business has expanded to major cities in the 93 years of existence. To offer services all over the world, Hilton Worldwide, which owns the brand name Hilton Hotels & Resorts, franchises some of its branches to independent operators. However most Hilton branded hotels are managed by Hilton Worldwide.

Hilton Hotel’s marketing strategy aims to attract clients on business and leisure travel. Most of its hotel chains are found in major city centers, near airports. The company has also established resorts and leisure hotels in popular destinations for holiday lovers around the world (Hilton.com). To boost customer loyalty, Hilton has established a loyalty program that seeks to reward customers to its various hotels. The program, which is one of the largest in the world, offer discounts to Gold and Diamond members. This study aims to analyze operation at one of the Hilton hotels; Washington Hilton.

The Washington Hilton started operations in 1965 and now boasts of 1,070 rooms with 47 suites. The arch designed hotel has 12 floors and offers restaurant services and bar services to customers. The hotel is privately owned; therefore explicit details about its revenues are scanty. Experts however estimate that annual revenues range from 20-50 million dollars (manta.com). The hotel’s staff is estimated to be 100-249. The competitive advantage of this hotel is the location. Washington is one of the most visited states in the US given that most central government offices are located there.

Hospitality accounting refers to the accounting practices undertaken by hotels and restaurants. Accounting communicates to both external and internal users about the entity’s operation. In managing daily operation at a hotel, management relies on management accounts. These are different from the annual accounts prepared for external users. Hotel managers use two types of internal financial and management reports; one of the report presents summarized operating results for the previous day or week. The second report forecasts operations and activities for the next day or week. Such measures are important in hotel business owing to its sensitivity.

Hotel operations are expensive and mistakes in operations need to be identified as early as possible so that corrective actions are implemented immediately. An internal management report contains detailed operating information covering a specific time for a specific product, customer, department, or for the entire hotel or restaurant. It can contain the operational results for activities of the previous day or week, or it can contain the information required to plan the next day or week.

Daily and weekly reports are used internally as management tools, whereas monthly reports are used both as a management tool and to report the monthly financial results for the three formal financial statements: the P&L, the Balance Sheet, and the Statement of Cash Flow. The reports provide the basis of management in a hotel; the more a manager comprehends the reports; the better his/her management quality. Reports generated contain daily, weekly monthly, quarterly and annual information. The reports also include operating and financial information from previous periods which provides a basis for comparison. Future information is also part of the reports so as to provide an avenue of growth.

Daily Reports

They provide information on revenues and labour costs. They focus on providing the actual operating results for the previous day and comparing those results with forecasts, budget, the previous month, and last year’s information.

Daily Weekly Monthly Quarterly Annually

Performance Reports—The Past Amounts in $

Daily revenue report 79,700 Daily labor report 23,000 Weekly financial report 396,900 Monthly P&L 1,587,600 Profitability measurement 1,587,600 4,762,800 19,051,200

Planning Reports—The Future The daily room count 600 The daily banquet schedule 400 Weekly revenue forecast 560,000 Weekly labor forecast 161,000 Monthly revenue forecast 1,596,000 Quarterly revenue forecast 4,788,000 End-of-year revenue forecast 19,152,000

Assumptions made in the report include;

Past daily revenue was $79,700.

Labour force costs are $23,000; the hotel has 3 managers for its three departments, each earns $70,000 per month. Daily costs are $7,000. Other employees earn $10 per hour. The hotel has 200 other employees each working 8 hours per day.

Future trends indicate that on average, only 600 rooms will be occupied every night. Room charges per night are $100. The hotel expects to sell 400 meals daily at an average cost of $50 per meal. Daily revenue is expected to be $80,000.

Daily Revenue Report.

It is more of an audit report prepared to communicate the previous day operating information. Depending on the organization it can be referred to as; Sales and Occupancy Report, Daily Revenue Report or Gross Revenue Report. For purposes of this study, it will be referred to as the Daily Revenue Report. The report is organized into sections; departmental revenue report, hotel daily room statistics and Restaurants & Banquets Summary and hotel market segment information. The report is organized in a similar format as the Profit and Loss statement.

Labor Productivity Reports.

The Report includes daily labor productivity and wage information. Labor costs account for a significant portion of hotel’s total costs. Owing to the fluctuating nature hotel visits by clients, it is important that management constantly review the demand for labor. In instances of low customer numbers, the management should reduce the number of casuals in the hotel. Information provided by labor productivity reports indicate whether established labor guidelines have been met. In measuring productivity, the units of labor are compared to the units of output. Prior analysis indicates the amount of labor hours required to support a certain business. In the case of Hilton Washington, 200 employees each working 10 hours a day can support operation that will take care of 600-900 clients visiting the hotel. To fully support operations during full capacity, the hotel will be required to hire an extra 100 employees. Ratios and percentages are used to enhance understanding of labor costs.

Labor hours per room sold. Total labor hours divided by total rooms sold. Hilton Washington ratio is 2000/600. The interpretation is that three clients require 10 hours, which are the hours every employee other than management works daily. The ratio is important as it indicates shortage or excess of labor hours. By following established guidelines, management uses the ratio to hire or dismiss casuals.

Rooms cleaned or credits cleaned per shift. The formula is total rooms cleaned divided by one eight-hour shift. This ratio is mostly used by housekeeping department to determine the efficiency of employees in that department. Washington Hilton guest rooms are cleaned daily in two shifts. The first shift is expected to clean 300 rooms.

Labor hours per customer. Calculated by dividing the total number of customers served in the restaurant by the total number of labor hours. Washington Hilton expects to serve 400 guests daily at the restaurant. Therefore, labor hours per customer equals 2000/400; 5hrs.

The formulas are based on forecasted rooms sold or expected customers. They are a true measure of labor productivities since they relate labor input in labor hours to products and services produced.

Wage Cost Percentage.

This measure compares wage cost in dollars to revenue produced in dollars. It measures the dollar cost in wages incurred with respect to revenue level resulting from rooms sold or meals served. Wage cost percentages include;

Front office wage cost. Total front office wage cost in dollars divided by total room revenue in dollars. Washington Hilton has 20 employees working at the front office. Expected room revenue per day is $60,000. Total front office wages are 20*8*10=1600. Percentage equals; (1600/60,000) %= 26.67%. This is within the acceptable level as the hotel’s guidelines stipulate that this percentage should not exceed 30%

Wage cost per occupied room. The formula entails two steps. First, labor hours used is multiplied by hourly wage rate to give the wage cost in dollars. Second, the amount calculated is divided by the rooms occupied. In the case of Washington Hilton, labor hours used are 1,600 (200*8), the hourly wage rate is $10. The rooms occupied are 600. The wage cost per occupied room will therefore be $26.67.

Housekeeping wage cost. Calculated by dividing total housekeeping wages cost by total rooms revenue. Washington Hilton wages are $6,400 while the revenue is $60,000. (6400/60,000)=10.67%

Restaurant wage cost. Calculated by dividing total restaurant wage cost in dollars by total restaurant revenue in dollars. Washington Hilton has 100 employees working at the restaurant. Their total wage cost is $8,000(100*8*10), while the restaurant revenue is $20,000(400*50).

The percentage equals (8,000/20,000) is 40%. Thought the percentage appears high, it is within acceptable limits as most of the meals are sold to customers, who are staying in the hotel. The cost of food for such customers is subsidized to ensure they utilize the hotel’s restaurant.

Labor productivities are best measured with the above probabilities as they just measure labor input with labor output. They indicate how well labor wages are managed.

Weekly Internal Management Reports.

Information from these reports reviews and criticizes previous week’s performance. They are also used to forecast for the following week. Operations in hotels are planned for on weekly basis and therefore these reports are the primary documents of control by managers in the various departments.

Weekly Revenue Forecast-It is a detailed day by day forecast for the upcoming week expected revenue.

Weekly Wage and Cost Scheduling- Expected revenue determines the labor force required. Washington Hilton determines the labor requirement for the coming week on all Wednesdays. By correctly using the ratios above, management is able to accurately plan for the labor requirements in future.

Profitability forecasting- Profit are calculated by subtracting total expenditure from total revenue. Forecasted profits are calculated by subtracting forecasted expenses from forecasted income.

Monthly Internal Management Reports.

Having collected daily and weekly reports, the information content is enough to prepare monthly profit and loss statements.

Monthly P&L Statement-It’s a useful management tool since it shows the financial results of the operational performance for the month. The P&L attracts the greatest scrutiny among all financial statements. Management must therefore take great care to ensure that they report acceptable, fair and accurate P&Ls. The monthly consolidated P&L provides a detailed summary of every department’s revenues and expenses. The P&L presents the big picture of the hotel’s performance. P&Ls are required to enable the user to compare the present period with the past. As accountants prepare the statement, they have to include past period performance. The P&L also identifies departments that are performing and those underperforming. This is an important indicator to top level management as it identifies managers who are effective and efficient.

Sample Departmental P&L for Washington Hilton.

Washington Hilton,

Monthly Profit and Loss Statement,

For the Month of December 2013.

Forecast Actual Difference/Variation

Dollars Percentage Dollars Percentage Dollars Percentage

Room Revenue 1,860,000 1,900,000 40,000 2.1505

Management Wages (fixed expense) 140,000 7.5269 140,000 7.3684 – –

Hourly Wages (variable expense) 192,000 10.3226 200,000 10.5263 8,000 4.1667

Contract Cleaning (fixed expense) 250,000 13.4409 245,000 12.8947 (5,000) (2.0000)

Guest Supplies (variable expense) 80,000 4.3011 85,000 4.4737 5,000 6.2500

Reservation Cost (variable expense) 220,000 11.8280 210,000 11.0526 (10,000) (4.5455)

Total Fixed Expense 390,000 20.9677 385,000 20.2632 (5,000) (1.2821)

Total Variable Expense 492,000 26.4516 495,000 26.0526 3,000 0.6098

Total Expenses 882,000 47.4194 880,000 46.3158 (2,000) (0.2268)

Total Profit 978,000 52.5806 1,020,000 53.6842 42,000 4.2945

Retention or Flow Thru 42,000

The forecasted revenue for the Rooms Department was $1,860,000.Expected departmental profits were at $978,000. The forecasted profit percentage is 52.58%, which means that 0.526 cents out of every revenue dollar will be profit. Actual Room Revenue was $1,900,000 which is $40,000 more than the forecasted revenue. The percentage increase of the $40,000 incremental revenue is 2.15% ($40,000/$1,860,000). In other words, revenues were 2.15% higher than forecast.

P&L Statement; up to November 30th 2013.

Washington Hilton Consolidated Profit & Loss Statement for the period Jan-Nov 30th 201 Jan-Nov 30th 2013 2012 Annual Report Actual Budget Last Year Actual Budget Last Year

Room Revenues 20,795,500 20,357,700 18,377,172 20,088,000 20,000,000 18,000,000

Restaurant Revenues 7,114,250 6,785,900 6,125,724 6,696,000 6,600,000 5,940,000

Total Hotel Revenues 27,909,750 27,143,600 24,502,896 26,784,000 26,600,000 23,940,000

Rooms Profit 11,163,900 10,704,210 9,662,836 10,562,400 10,500,000 9,450,000

Restaurant Profit 437,800 354,618 320,118 349,920 325,000 292,500

Total Hotel Department Profit 11,601,700 11,058,828 9,982,954 10,912,320 10,825,000 9,742,500

General and Administrative 1,641,750 1,641,750 1,482,030 1,620,000 1,620,000 1,458,000

Heat, Light, and Power 87,560 65,670 59,281 64,800 60,000 54,000

Repairs and Maintenance 54,725 49,253 44,461 48,600 48,000 43,200

Accident Expense 27,363 27,363 24,701 27,000 25,000 22,500

Training Expense 32,835 30,646 27,665 30,240 30,000 27,000

Sales and Marketing 32,835 32,835 29,641 32,400 32,000 28,800

National Sales and Marketing 16,418 16,418 14,820 16,200 16,000 14,400

Total Expense Centers 1,893,485 1,863,934 1,682,598 1,839,240 1,831,000 1,647,900

House Profit 9,270,415 8,840,277 7,980,238 8,723,160 8,994,000 8,094,600

Fixed Expenses 2,189,000 2,189,000 1,976,040 2,160,000 2,200,000 1,980,000

Net House Profit 7,081,415 6,651,277 6,004,198 6,563,160 6,794,000 6,114,600

In the month of December 2013, Washington Hilton recorded an average of 600clients daily who spent the night at their rooms. The charge per night is $100. The restaurant registered a daily average sale of 400 meals. Each meal was sold at $50. During the month, the number of employee/casuals was 200, each working 8 hours a day at a rate of $10 per hour. The consolidated monthly profit and loss statement was as follows;

Washington Hilton

Consolidated Profit & Loss Statement for the Month of Dec 2013

Current Period 2012 Annual Report

Actual Budget Last Year Actual Budget Last Year

Room Revenues 1,900,000 1,860,000 1,674,000 20,088,000 20,000,000 18,000,000

Restaurant Revenues 650,000 620,000 558,000 6,696,000 6,600,000 5,940,000

Total Hotel Revenues 2,550,000 2,480,000 2,232,000 26,784,000 26,600,000 23,940,000

Rooms Profit 1,020,000 978,000 880,200 10,562,400 10,500,000 9,450,000

Restaurant Profit 40,000 32,400 29,160 349,920 325,000 292,500

Total Hotel Department Profit 1,060,000 1,010,400 909,360 10,912,320 10,825,000 9,742,500

General and Administrative 150,000 150,000 135,000 1,620,000 1,620,000 1,458,000

Heat, Light, and Power 8,000 6,000 5,400 64,800 60,000 54,000

Repairs and Maintenance 5,000 4,500 4,050 48,600 48,000 43,200

Accident Expense 2,500 2,500 2,250 27,000 25,000 22,500

Training Expense 3,000 2,800 2,520 30,240 30,000 27,000

Sales and Marketing 3,000 3,000 2,700 32,400 32,000 28,800

National Sales and Marketing 1,500 1,500 1,350 16,200 16,000 14,400

Total Expense Centers 173,000 170,300 153,270 1,839,240 1,831,000 1,647,900

House Profit 847,000 807,700 726,930 8,723,160 8,994,000 8,094,600

Fixed Expenses 200,000 200,000 180,000 2,160,000 2,200,000 1,980,000

Net House Profit 647,000 607,700 546,930 6,563,160 6,794,000 6,114,600

General and administrative expenses include system maintenance costs, commissions and travel allowances of top level managers. They actual cost and the budgeted cost are the same as Washington Hilton has adopted a policy to check on the variance of these costs.

Heat, Light &Power- The actual cost was higher than the budgeted cost owing to increased room and restaurant revenue. This cost is determined by the government as it provides electricity which powers Washington Hilton. The December bill was determined by the power supplier.

Repairs and maintenance. The cost is determined by past trends. In the month of December the cost was slightly higher than the budget. As from June 2013, Washington Hilton adopted outsourcing of repair and maintenance services to enhance efficiency. The company has seen great improvements since Smart Repairs undertook the responsibility of repairs and maintenance in the hotel. The actual amount indicated is the bill received from Smart Repairs.

Accident Expense. Minor accidents are common in hotels; however, the hotel loses money if the accidents are rampant. In the month of December, accidents reported, treated and billed to Hilton cost the hotel $2,500. Individuals who are involved in accidents in the hotel are treated at Washington Hospital, which is a five minute drive from the hotel. The hospital sends a monthly bill for payment by 15th of the following month.

Training Expense. Hotel business depends highly on economic conditions. Washington Hilton therefore hires and dismisses casuals depending on the number of clients visiting the hotel. This attracts training costs which must be incurred every time the hotel hires new employees. The hotel employed an additional 50 employees in anticipation of the Christmas period. The cost of training these new personnel was $3,000. This was $200 more than management expected.

Sales and Marketing. To ensure that the hotel remains competitive, management sets aside some amount for promotion. In the month of December, the hotel paid $2,000 for a TV advert on CNN. The $1,000 was spent on online marketing.

General Ledger Transactions for the above Revenues and Expenses.

To record Room Revenue Earned in Dec;

DRBank A/c1,900,000

CR Room revenue Income A/c1,900,000

To record Restaurant Revenue Earned in Dec;

DRBank A/c650,000

CR Restaurant Revenue Income A/c650,000

To record General and Admin Expenses in Dec.

DRGeneral&Admin Expenses A/c150,000

CR Bank A/c150,000

To record Heat Light & Power Expense incurred in Dec.

DRHeat, Light & Power8,000

CR Bank A/c8,000.

To record Repairs & Maintenance Expense incurred in Dec

DRRepairs & Maintenance A/c5,000

CR Bank A/c5,000

To record Accident Expense incurred in Dec

DRAccident A/c2,500

CR Bank A/c2,500

To record Training Expense incurred in Dec

DRTraining A/c3,000

CR Bank A/c3,000

To record sales & marketing Expense incurred in Dec

DR Sales & Marketing A/c3,000

CR Bank3,000

To record National sales &marketing Expense in Dec

DRNational Sales & Marketing A/c1,500

CR Bank1,500

Cash Ledger; Dual Format.

Date Particulars V.N L.F Amount Date Particulars V.N L.F Amount

Bank 20,795,500 General and Administrative 1,641,750

Bank 7,114,250 Heat, Light, and Power 87,560

Repairs and Maintenance 54,725

Accident Expense 27,363

Training Expense 32,835

Sales and Marketing 32,835

National Sales and Marketing 16,418

1,893,485

Bal c/d 26,016,265

Closing Profit and Loss statement.

Washington Hilton Consolidated Profit & Loss Statement for the year ended 31st Dec 2013 2013 2012 Annual Report Actual Budget Last Year Actual Budget Last Year

Room Revenues 22,695,500 22,217,700 18,377,172 20,088,000 20,000,000 18,000,000

Restaurant Revenues 7,764,250 7,405,900 6,125,724 6,696,000 6,600,000 5,940,000

Total Hotel Revenues 30,459,750 29,623,600 24,502,896 26,784,000 26,600,000 23,940,000

Rooms Profit 12,183,900 11,682,210 9,662,836 10,562,400 10,500,000 9,450,000

Restaurant Profit 477,800 387,018 320,118 349,920 325,000 292,500

Total Hotel Department Profit 12,661,700 12,069,228 9,982,954 10,912,320 10,825,000 9,742,500

General and Administrative 1,791,750 1,791,750 1,482,030 1,620,000 1,620,000 1,458,000

Heat, Light, and Power 95,560 71,670 59,281 64,800 60,000 54,000

Repairs and Maintenance 59,725 53,753 44,461 48,600 48,000 43,200

Accident Expense 29,863 29,863 24,701 27,000 25,000 22,500

Training Expense 35,835 33,446 27,665 30,240 30,000 27,000

Sales and Marketing 35,835 35,835 29,641 32,400 32,000 28,800

National Sales and Marketing 17,918 17,918 14,820 16,200 16,000 14,400

Total Expense Centers 2,066,485 2,034,234 1,682,598 1,839,240 1,831,000 1,647,900

House Profit 10,117,415 9,647,977 7,980,238 8,723,160 8,994,000 8,094,600

Fixed Expenses 2,389,000 2,389,000 1,976,040 2,160,000 2,200,000 1,980,000

Net House Profit 7,728,415 7,258,977 6,004,198 6,563,160 6,794,000 6,114,600

Works Cited

Hilton.com, Washington Hilton. 2013. Web. December 5 2013. http://www3.hilton.com/en/hotels/district-of-columbia/washington-hilton-DCAWHHH/index.html

Manta.com, Hilton-Washington. 2013. Web. December 5 2013. http://www.manta.com/c/mmjc3tl/hilton-washington

Horticulture in Taiwan

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Institution

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Date

Horticulture in Taiwan

Taiwan, over the past few years has achieved world recognition in terms of horticultural production. The country has vastly specialized in fruit, vegetable, and floriculture crop production in the horticultural sector. In turn, it has earned recognition in the world market that directly deals with horticultural crops. As far as fruit crop is of concern, pineapple is a leading horticultural commodity that Taiwan keenly specializes in producing. The Taiwan Pineapple Corporation is a significant part in making the pineapple production a worthwhile venture that has been causing worldwide competitors to raise eyebrows.

The production area of pineapple in Taiwan is 12068 hectares. The island has a geographic advantage over other regions, which highly encourages the successful growth and harvest of fruits. The eastern coast of the island forms an extensively suitable area for the growth of pineapples where temperatures and rainfall are quite favorable.

Over the years, the production volume of pineapples in Taiwan has exceedingly increased surpassing even major exporters such as Japan. The production volume of pineapples in Taiwan has been on an increasing trend. The major reason behind the increased volume within the many years of production is the introduction and exploitation of the canning industry. Since pineapples are easily perishable, their exportation was highly limited by this fact. However, introduction of canning increased the longevity of the fruit crops after harvesting. The production volume number stands at 145,881 metric tons within a year. The amount of pineapple volume produced can be categorized into three leading pineapples. They include the Cayenne, Golden, and the Spain pineapples. Each pineapple has its unique features, which makes them unique and quite desirable by countries such as China.

Pineapples in Taiwan have value in terms of exports from the country. In terms of monetary value, pineapples from Taiwan grown for exportation are highly valued by China and Japan. Recent records indicate that the pineapples exported from Taiwan are valued at approximately $1000 for every ton. This value has highly increased since Taiwan recognized its potential of producing quality pineapples that are worth exporting. In turn, this has made pineapples the third highest earners in Taiwan; this is after rice and sugar.

Rice is the leading vegetable crop in Taiwan, and serves a major export in the country atop its significant use domestically. The south and western plains of the island form the key areas of planting the crop. In 2004, rice ranked as the most crucial crop within Taiwan and covered several hectares of land. Additionally, in 2005, the crop still stood as quite vital to the country with the increased hectares of land used to plant it. Paddy and brown rice make up the types of the crop planted within the island in large-scale proportions. Since early 2000s, rice production areas have ranged between 200000 hectares to 300000 hectares. However, the demand for rice from Taiwan has reached a level where it has passed the supply level. Nonetheless, various strategies are being implemented to increase the production, such as increased fertilizer supply.

Volume production of rice has sharply changed since it became a major export in Taiwan. Volume production by 1951 was around 1.5 million tons, but by 1976, it had increased by almost half. However, over the years, its production has fluctuated and does not have a constant increase or decrease in volume. The following table is a self-explanatory display of the rice production in Taiwan since 1960.

Market Year Production Unit of Measure Growth Rate

1960 1778 (1000 MT) NA

1961 1875 (1000 MT) 5.46 %

1962 1965 (1000 MT) 4.80 %

1963 1961 (1000 MT) -0.20 %

1964 2089 (1000 MT) 6.53 %

1965 2184 (1000 MT) 4.55 %

1966 2213 (1000 MT) 1.33 %

1967 2245 (1000 MT) 1.45 %

1968 2342 (1000 MT) 4.32 %

1969 2159 (1000 MT) -7.81 %

1970 2291 (1000 MT) 6.11 %

1971 2152 (1000 MT) -6.07 %

1972 2270 (1000 MT) 5.48 %

1973 2097 (1000 MT) -7.62 %

1974 2280 (1000 MT) 8.73 %

1975 2319 (1000 MT) 1.71 %

1976 2253 (1000 MT) -2.85 %

1977 2384 (1000 MT) 5.81 %

1978 2249 (1000 MT) -5.66 %

1979 2254 (1000 MT) 0.22 %

1980 2166 (1000 MT) -3.90 %

1981 2185 (1000 MT) 0.88 %

1982 2284 (1000 MT) 4.53 %

1983 2286 (1000 MT) 0.09 %

1984 2065 (1000 MT) -9.67 %

1985 2000 (1000 MT) -3.15 %

1986 1815 (1000 MT) -9.25 %

1987 1748 (1000 MT) -3.69 %

1988 1697 (1000 MT) -2.92 %

1989 1716 (1000 MT) 1.12 %

1990 1662 (1000 MT) -3.15 %

1991 1673 (1000 MT) 0.66 %

1992 1498 (1000 MT) -10.46 %

1993 1636 (1000 MT) 9.21 %

1994 1511 (1000 MT) -7.64 %

1995 1517 (1000 MT) 0.40 %

1996 1420 (1000 MT) -6.39 %

1997 1463 (1000 MT) 3.03 %

1998 1311 (1000 MT) -10.39 %

1999 1349 (1000 MT) 2.90 %

2000 1342 (1000 MT) -0.52 %

2001 1245 (1000 MT) -7.23 %

2002 1271 (1000 MT) 2.09 %

2003 1164 (1000 MT) -8.42 %

2004 1011 (1000 MT) -13.14 %

2005 1033 (1000 MT) 2.18 %

2006 1100 (1000 MT) 6.49 %

2007 955 (1000 MT) -13.18 %

2008 1025 (1000 MT) 7.33 %

2009 1111 (1000 MT) 8.39 %

2010 1186 (1000 MT) 6.75 %

2011 1175 (1000 MT) -0.93 %

2012 1161 (1000 MT) -1.19 %

Drawing from the table above, it is clear that the rice production volume has been on an unsteady trend. Nonetheless, rice production still remains an important sector within Taiwan and is still the leading food crop product for both domestic and international use.

Research shows that agriculture is not a lucrative venture in Taiwan for people seeking business opportunities. However, floriculture crop industry is a sector that speaks volumes of the means businesspersons in Taiwan can make huge profits from agriculture. Floriculture, which involves the propagation of ornamental plants such as orchids, is paving ways for businesses oriented persons to make money. The leading flowers that constitute Taiwan’s major products are orchids, foliage plants, and anthurium. This is atop other key flowers that the country specializes in their growth and exportation. The major target countries for Taiwan include Europe, Japan, Hong Kong, and the United States. Taiwan, having such a vast market target for their floriculture crops, is a vivid indication that they are successful in maintaining this business venture. In addition, increasing the area of the floriculture crops is also an indicator of success in the industry. In 1978, for example, the area dedicated to planting floriculture crops was about 1200 hectares. Surprisingly, by 2006 this land area had widely increased with an area covering over 13000 hectares.

The value of floriculture crops in Taiwan has also been on a rising trend. Growing the products within high tech greenhouses other than open fields is a factor that has contributed extensively to the increase of the crop’s value. Moreover, entrepreneurs have aggressively involved themselves with the floriculture business with many exploiting the highly productive areas of Taiwan. During the development of the floriculture business, research has made immense contributions towards improving the aspects of the venture. Taiwan has been ranked as the number one exporter of phalaenopsis. The reason behind this is its capability to deliver these flowers whilst they are still in their growth medium. This is a major contribution research has provided to the floriculture business in Taiwan, making it a lead exporter in such products to major countries such as the United States. Such impressive techniques have earned the country high value products, for instance, having phalaenopsis sell as high as $151000 in a hectare within one year.

Taiwan discovered the potential behind the floriculture business, and put up measures to ensure their success in the venture remains intact. The Floriculture Research Center, for example, is an establishment that the country put up to support its floriculture crops’ production. In addition, the center deals with problems farmers may face during planting, growth and harvesting of floriculture crops. The center is also keen at developing new cultivars of floral products such as orchids to increase their value and volumes. The center also explores the potential of developing new hybrids that have the capability of doing well within other countries such as in Japan. The center, for example, has developed flowers that have attractive values that help in increasing the prices of such products. In turn, all these add value to the exports from Taiwan’s floriculture business.

Import volume, and value of fruits

The key fruit imports that Taiwan specializes in are apples that they get from United States and other countries such as Chile. Taiwan’s fruit importation has been fueled by various factors. One of the leading reasons behind Taiwan’s huge importation of apples in the country is unfavorable environmental conditions to support their growth. The import volume of apples in Taiwan is over 140000 MT per year valued at over US$163 million. Taiwan’s geographical position is also a key factor that contributes to its massive importation of apples. Its location on the globe exposes the country to natural disasters such as tropical storms, which are unsuitable conditions for growth and sustainability of apples. The country also possess an extremely high level of apple consumption; thus, making the demand overwhelming for the supply to meet. Subsequently, the country ends up making huge importations to satisfy the high consumption of apples. Taiwan has posed as a ready market for fresh apples and countries such as Chile have become their regular suppliers. Other than apples, oranges form another fruit crop that is of high value within Taiwan. In Taiwan, these two fruits, apples and oranges, are highly consumed among the citizens. However, the country does not import humongous amounts of oranges since 95% of the total products are homegrown.

Import volume, and value of vegetable crops

Taiwan has a greater amount of agricultural imports than its exports. One of the major contributors of increased imports in vegetables is the low production within the country. China is a major exporter to Taiwan in vegetable supplies. China supplies Taiwan abundantly with peas, tomatoes and, cauliflower. Over the last ten years, the supply of these products in Taiwan has heightened, but at the same time, their production within Taiwan’s nation has decreased. The consumption rate of these products is quite high within Taiwan, and there is a dire need to meet the demand. String beans are also highly valued in Taiwan and China has been on the forefront to ensure their supply remains intact. Taiwan imports over 5000 tons of string beans per year from China. Other than cereals, Taiwan is an active importer of tea, which is also from China. Although Taiwan is an active grower of tea, it also imports the same product from China crossing over the 5000 tons mark per annum.

Export volume, and value of floriculture crops

Taiwan’s climate is the major reason behind its great success in establishing a great market in floriculture crops. The climate allows a vast spectrum of flowers to grow in the country. In turn, this has allowed the government to use this to their advantage by exploring this opportunity. Over the years, research has tremendously increased the volume of flowers exported out of Taiwan with special concentration on orchids. The orchids, as mentioned earlier, are the major export products that Taiwan delivers to various countries such as Japan. Taiwan takes over 81% of the total world’s floral exports with orchids taking the lead. Projected value of the floral supply within the end of 2014 is about US$ 237million. This depicts that the floral venture is something that Taiwan highly upholds and depends upon for the sustainability of the country’s economy.

Export volume, and value of vegetable crops

Vegetable exports within Taiwan are an integral part of the income earners within the country. In 2009, it was recorded that 149000 hectares of farmland were used for the plantation, growth, and harvest of vegetable crops within the island. In addition, the country could produce a total of 2.9 million tons worth of vegetable exports from the vast pieces of farmland. Taiwan participates actively in the export business of various vegetable crops such as green soybeans. Green soybeans prove to contain more nutrients than peas. Lujing and Luxiang are two of the major categories of soybeans involved in the exportation venture. Head lettuces are also part of the vegetable crop export from Taiwan. The lettuces are exported under strict regulations to preserve their hygiene and nutrients. Such rules include correct application of pesticides to avoid spoilage of the head lettuces. Carrots also form a major part of Taiwan’s vegetable crop exports, and is performed under strict government supervision to ensure that the procedures aimed at observing hygiene are followed. Though a seasonal crop, from December to April, carrots still constitute a paramount section of Taiwan’s vegetable exports. Mushrooms are also important plant products exported from Taiwan to several destinations in the world. Taiwan’s button mushroom is a leading export product that the country vigorously supplies both at the local and international levels. However, it is in addition to other mushroom varieties. Just like in the floral business venture, Taiwan also involves itself in heightened research methods to improve on the quality of the mushroom produces. In addition, the country has involved itself in automated production of mushrooms. In turn, this has turned mushrooms into a popular vegetable both locally and in the international markets. Mushroom production has risen to over 85% of the total fresh produce worth more than 250 million Taiwan dollars per annum.

Production Practices of Pineapples in Taiwan

Pineapple is the leading fruit produced in Taiwan, and various production practices have seen its rise to be a major export product. The Taiwan government has taken a special interest to see to it that the lucrative business venture of pineapple production is sustained well in the world market. One of the key practices that the government introduced in the pineapple fruit production is reducing the use of pesticides. The international sanitary and safety standards are used to measure the amount of pesticides applied on planted pineapples. The other practice that the government is keen on implementing in the growth of pineapples is the use of stalk cracking formulation. A problem that persists while growing pineapples is the stalk cracking disorder where the fruits grow almost horizontally without bulging. In turn, such fruits are disregarded as far as fresh market is of concern. Crossbreeding pineapples is also a common production practice highly exploited in Taiwan. Extensive pineapple production is tasking, but Taiwan has engaged itself in the production of a variety of the fruits via processes such as crossbreeding.

Harvesting Methods of Pineapple in Taiwan

Pineapple growing in Taiwan is a leading industry in the country, and it requires a huge taskforce especially during harvesting periods. Records show that during the harvesting period, more than 10000 people are included in the process. The taskforce includes skilled and unskilled laborers that help see to it that harvesting is complete and within the expected period. Sickle-harvest and hand-harvest methods are highly applicable in Taiwan’s pineapple farmlands. However, the hand-harvest method is highly utilized than the sickle-harvest methodology. Though it may be a more popular means of harvesting the pineapple fruits, it is not a recommended one since it produces uneven breaks on the stems. Additionally, the hand-harvested fruits proved, via experiments, that they develop browning tissues due to contamination. The chemical balance is also adversely affected upon harvesting the pineapples by hand. Thus, it is crucial for farmers to harvest the fruits via sickle-harvest method as a means of increasing the longevity of the fruits.

Postharvest Care Given to Pineapples in Taiwan

Upon harvesting the pineapple fruits, it is a crucial requirement to have transport ready and proper roads to make the transition smooth. Thus, the fruits are transported to the packing location via trucks that have thermal insulation, sliding curtains and special double roofing that helps keep them fresh. Disinfection and high levels of hygiene are mandatory requirements that help maintain the fruits in proper conditions and void of any infections. During transportation of the fruits, it is advisable to lay the vegetable parts of the plant on the floor. This helps regulate temperatures within the vehicle used to transport the fruits, and act as a shock absorber to help preserve the physical state of the fruits. On reaching the packing plants, the pineapples undergo pre-gradation process followed by washing them, waxing, and application of fungicides. Next, the fruits are dried and packed in accordance to grade and size. The next step is placing the pineapples in cooling systems and in controlled atmospheres. This is done until the produce is released into the market.

Processing of Pineapples in Taiwan

The two traditional means of consumption of pineapples in Taiwan is via direct eating the fruit or eating it from a can. The processing of the pineapples in cans is carried out by leading industries in the country where it is sliced and placed mechanically in clean cans. The fruits are then supplied in cans for people’s consumption. Other than such products, Taiwan has also diversified in terms of the products that they can produce from pineapples. Concentrated pineapple juice is an example of a product that Taiwan produces from these fruits. The process of juice production is a successful one considering the amount of juice it is able to produce of the harvested fruits. Dried pineapple chips, isotonic mixtures, wines, and cubes are also some of the products that Taiwan processes from pineapples. All these products have diversified the Taiwan pineapple market vastly and increased their sales, both domestically and on international platforms.

Marketing of pineapples in Taiwan

The Council of Agriculture (COA) is an active body involved in marketing of pineapple products in Taiwan. COA, for quite a while, has been campaigning that Taiwan is a reliable source of nutritious and healthy pineapple products. Since 2011, COA has helped in rolling out export production areas within Taiwan. These areas have helped in exporting pineapples and marketing their products since they are able to yield huge amounts of fruits that qualify for exportation. In addition, COA has established systems that help track the products and promote marketing of the pineapples worldwide. Pineapple marketing is a crucial undertaking that the Taiwan government is really exploiting. Marketing of pineapples ranges from virtual to physical means. Virtual means of marketing pineapple products is mainly via the internet, which is a worldwide access. This gives Taiwan a better mode of communicating with the rest of the world and increasing their sales.

Production Practices of Rice in Taiwan

Rice is a leading product in Taiwan, and it is a high earner in the country. Production of rice in Taiwan is on a large-scale basis with vast farmlands ranging over 250 thousand hectares. Rice production in Taiwan relies on heavy mechanization and irrigation. The government subsidies and inceptives are also a big part of the rice production in Taiwan. They assist in covering the expenses incurred in the production process of rice. Growing rice in Taiwan is based on paddy fields where reservoir ponds create suitable grounds for planting the rice. The planting process is automated to make it an easy endeavor and cover extensive land. Cultivation is mandatory during the growing season and by October, harvesting commences.

Harvesting of Rice in Taiwan

Rice is a crop grown almost everywhere in Taiwan and this calls for automated harvesting. Combined harvesters are the main equipment utilized in the harvesting processes. The harvesting processes commence in October following the drying of the crops in the fields. The rice harvesters mainly chop the relatively long crops into rows. The harvester chops the rice, at the same time collects the grains, and dispenses the stalks behind it. The harvester collects rice up to a certain level and offloads its contents into a waiting truck. The harvester then goes back to the field and circles again for more grain. The awaiting truck then transports the grains to the processing plant.

Postharvest Care Given to Rice in Taiwan

It is crucial for the drying and milling processes of rice to be effective to avoid spoilage. Poor and old methods of removing moisture from rice mostly lead to the destruction of the rice grains. Timely harvest is also an important measure to look out for when harvesting rice. This is to ensure that the rice moisture content is at the right level. Additionally, it is important for the drying process to be regulated to avoid overdoing it. This may be damaging to the rice grains since they may lose excessive water. It is also vital for postharvest process to ensure that the drying process is uniform. This helps to avoid brown spots on the rice grains, which may result from ununiformed drying process. Cleaning and application of proper amounts of insecticides is a crucial postharvest process aimed at protecting the grains from infestation by pests. Moreover, this aids in getting rid of diseases already that have already infected the grains.

Processing of Rice in Taiwan

Grading is the initial step taken during the processing of rice. The sorting process when it comes to rice grading involves classification of grains according to various factors. The grains can be sorted in terms of their thickness, for example. Rotating graders are best suited for differentiating and classifying the grains by their thickness. Trieurs are the most appropriate graders used in separating grains that have the same thickness size but varying heights. The preceding steps after the rice is graded include aromatic improvement of the rice by use of biotechnological process. Parboiling and milling of the grains include the preceding steps to follow during the processing stage of the rice. Packaging is reserved as the final step to follow in the processing stage of rice as a product on sale in Taiwan.

Marketing of Rice in Taiwan

One of the key marketing strategies that Taiwan has introduced in the country is packaging the products in exquisite packs. The packaging has been improved to capture the customer’s attention, which has in turn increased the sales. Additionally, the quality of the rice produced has been highly increased to ensure that inferior grains have been removed from the market. Packaging rice in attractive packs has led to a common culture that helps in marketing it. The culture involves handing out rice as a gift, given that the rice packages are attractive enough to stand out as presents. In turn, this is increasing making rice a popular crop in Taiwan. On the other hand, Taiwan is actively involved in virtual marketing of rice over the internet. This marketing results to global identification of the country’s high quality rice. Consequently, this increases the international orders directed to Taiwan.

Production practices of Orchids in Taiwan

Taiwan, over time, has developed unique means of producing orchids since they are a vital part of the floriculture business venture. The practice starts with aseptic seed culture, which takes a span of between ten to fifteen months. The next step involves placing the germinating plants in flasks then in a pot after three to five months. The plants mature for about seventeen months then they are cultured. The forced culture takes place between two and three months where the plant starts flowering afterwards, which at this point, it is ready for harvesting.

Postharvest Care of Orchids in Taiwan

Orchids are delicate and extremely valuable in Taiwan. Therefore, their growth and successful exportation from the country whilst they are still intact is very crucial. This makes postharvest care of floral plants a necessary step to undertake in preparation of the orchids for sale. The common steps followed under the postharvest care of orchids include cutting stems whilst still under water and transferring them into a new solution of flower food. This is done under high humidity. Care is also taken to prevent damaging of the pollen cap through the addition of calcium chloride into the flower food. Indeed this is a necessary step since pollinated flowers cannot last for over 48 hours without their pollen cap being damaged.

Processing and Marketing of Orchids in Taiwan

Taiwan is a key player when it comes to exporting floricultural crops. Thus, the country takes extensive measures to ensure that the flowers reach their destination intact and have a prolonged life. Taiwan processes its flowers by application of standardized chemical additives to the flowers to ensure that they stay fresh. In addition, the cut flowers are subjected to high humidity that keeps them from becoming flaccid. The flowers are also kept in a refrigerated environment to reduce water loss through the petals. In turn, this ensures that the flowers are intact upon reaching their destination, and remain in that state for a while.

Constraints Facing the Horticulture Sector in Taiwan

Horticulture is a major industry in Taiwan, but faces various challenges that affect it adversely. One key problem that Taiwan is currently facing in the horticulture industry is heightened competition from fellow exporters. Other than floriculture crops, Taiwan is also an aggressive participant in producing and exporting other horticultural crop products. These products include tea, fruits, and sugar. Within all these sectors, it faces high competition from countries such as Japan and United States. In this case, their products demand worldwide drops making the horticulture industry strain to keep up with the economic changes. Though competition is inevitable, Taiwan tries to make changes that make it stand out in areas that it is leading. The floral sector is a successful venture that provides the country with huge profit margins. Thus, Taiwan is always making advances aimed at heightening the quality level of the floral products. Nonetheless, it is always making improvements within other sectors that constitute various areas of production. This is aimed at keeping up with the high competition from other countries in the world.

Natural constraints also affect the horticulture industry in Taiwan. Global warming, for instance, is an effect that has become inevitable all over the world and its effects are experienced in Taiwan. Droughts, which are a product of global warming, occur occasionally in Taiwan. They are notorious for destroying crops such as rice, which require a lot of water. However, during such times, Taiwan government takes measures to reduce the negative effects. For instance, Taiwan has introduced water reservoirs as an initiative to help reduce the adverse effects brought forth by nature.

Opportunities in the Horticulture Sector in Taiwan

Taiwan is an island that has favorable environmental conditions despite the global warming effect. These conditions contribute to the high yield production of several horticulture crops in the country. The whole area in the island, for example, is suitable for plantation and growth of rice. Rice is a leading earner in Taiwan, and the country exploits this to the maximum with high exports in the same. On the other hand, the floral business venture is doing extremely well because of favorable environmental conditions. Having noted this, Taiwan has grabbed this opportunity and exploited it to the maximum. The Taiwan government, via several bodies, vigorously exploits the various possible flower types that they can produce. In turn, this leads to production of floral products bearing different traits, and having higher quality value in the world market.

Taiwan also actively contributes to the required resources that serve as means of making things better and more lucrative. Entrepreneurs have also indulged into active investment upon discovering the potential Taiwan is displaying as far as horticulture industry is of concern. Subsequently, this has improved this industry since the entrepreneurs are in a position to provide sumptuous amounts of funds to help catapult the projects to greater heights of success. Additionally, such entrepreneurs are able to give ideas that are ready to help the horticulture sector grow. These ideas may be highly linked to the business venture that caters for the development of horticulture industry in Taiwan. They may range from means of reducing costs experienced in the industry. Taiwan is a land of opportunities, and as much as it is perceived by fellow countries as a weak nation, it has potential to produce excellent products. In addition, the country has proved to exploit this potential to its maximum, which is evidenced by the high production of horticulture products. Taiwan’s agriculture production potential has also caught the attention of leading countries in the world. Countries such as United States and Japan have made Taiwan their major suppliers in various products. United States, for example, highly depends on Taiwan for their high demand of floriculture crop products such as orchids.

Horsemeat Consumption in Europe

Logistics and Operations Management

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Horsemeat Consumption in Europe

Over the recent years, horse meat has been a major problem in the United Kingdom. One major source originates from Northern America in places like Canada as well as Southern America in Mexico, Argentina and Brazil. The European horsemeat problem began when meat testing within Ireland proved that some beef products contained the equine DNA. This menace has spread across the European continent and in the process, entangling many distinguished brands, which result to timely product abandonment and therefore poor customer concerns by the relevant authorities as well as poor government investigations into the continent’s complex food dispensation chains.

Findings

Due to the ongoing European horsemeat contamination scandal, a good number of the beef supplies company executives are considering looking at their risks and uncertainties and on a regular basis. The horsemeat contamination in the beef lasagne is one example of the unexpected interference that occurs when the company executives ought to prepare themselves to handle. Economic pressures contribute to a larger percentage of the risks, which contribute to contaminations in the supply chains (Doeg, 2005 166). According to Humane Society International (2012), every year about one hundred thousand tonnes of horsemeat become imported to the European Union states and the origin of this meat is from the above countries. In addition to the large amounts of meat supplied to the European Union nations, about tens of thousands of this meat is slaughtered for human consumptions within the European Union itself. The Humane Society International (2012) has carried out studies over the issue of horsemeat in the European meat consumption market especially in three member states, which include France, Netherlands and Belgium where meat consumption is a normal phenomenon.

Sampling studies carried on beef lasagne in France, Belgium and Netherlands.

Beef Lasagne is an Italian flat dish, which is made by incorporating several ingredients and sauces into several layers and then baking the dish in an oven. This dish is an olden Italian meal, which is very delicious. The ingredients are made from pork and beef mixed with fresh pasta, creamy béchamel and Italian mozzarella. According to a sampling food survey conducted by the European Food Standards Agency over the wide spread of horsemeat in beef products, one of the products found to contain traces of more than one percent pig meat include Apetito Beef Lasagne (FSA, 2013). The Apetito Company in their defence state that they produce majority of beef lasagne just like any other company however, their beef products in most cases, are imported in large chunks or as whole muscles from their approved suppliers. They inspect their meat but do not carry out comprehensive analysis of the Bute found in the imported meat so as to detect traces of harmful substances (FSA, 2013). The sampling done of the beef lasagne was carried out in two phases and the results obtained proved that out of the 224 Apetito Beef Lasagne sampled in phase one, 214 contained more than one percent pig DNA or contain both pig and horse DNA (FSA, 2013). As for the second phase, the Apetito Beef Lasagne tested contained a threshold of more than one percent pig DNA but did not contain any horse DNA above the one percent threshold.

Also, a report by the Department for Environment, Food and Rural Affairs (2013) proved that there were undeclared traces of horse as well as pork DNA were found in meat products especially lasagne, beef burgers and Bolognaise, which are already readymade meat products that have been contaminated by horse meat as well as pork DNA. The European government and the related meat industries are conducting a large scale and nationwide meat testing to determine the problem. Each and every year, beef lasagne, which contains traces of horsemeat, is being delivered to France, Netherlands and Belgium in large numbers, which are more than ten thousand tones. In most cases, most of the livestock slaughtered are not bred in France, Netherlands and Belgium. According to Humane Society International (2012 1), not all the livestock slaughtered for beef lasagne are raised in these countries however, they are transported across the European Union borders and then slaughtered in the states for meat consumption. Live animals in the past years have been transported across the three nations partly due to the close proximity of slaughterhouse in either country (Humane Society International, 2012). In France, exportation of beef for making lasagne has extended to the neighbouring states of France like Spain as well as Poland (Humane Society International, 2012).

The governments within the European Union and especially in the United Kingdom have begun efforts to ensure the coordinated response towards the establishment and investigations of the menace across Europe. The European Union on its part agreed that the tests for the imported beef products in foreign countries should be tested for the presence of horsemeat and more so throughout the entire meat food chain. The report also indicated that the major people responsible for the distribution and sale of horsemeat are the food retailers and manufacturers as well as the food suppliers who are legally responsible for making sure that the beef products are labelled correctly. The British Food Standards Agency, who are responsible for ensuring food safety, and the Food Authenticity Programme, which develops the required testing methods that check whether the beef lasagne products have been properly labelled or have contaminations, are responsible for the illegal distribution of horsemeat (Humane Society International, 2012).

Processed beef lasagne in Ireland and Spain

Taco Bell, which is an American Based food retail company was involved in the horsemeat scandal and in recent times, has withdrawn the sale of its taco beef product in the European nations and the reason was the fact that some of the sols beef lasagne were found to contain more than ten percent horse DNA (Humane Society International, 2012). These products include beef skewers, made by Brakes catering company, beef lasagne and spaghetti Bolognese, which are ready Birds Eye meals. In Europe, Taco Bell has various outlets in Europe, one in Essex, the other in Manchester and about three in Spain. The companies in recent times said that after testing their beef lasagne, the presence of horsemeat became evident in the products. The Taco Bell Company revealed that some of the beef products, which they bought from their suppliers in Europe contained traces of horsemeat. Immediately the company realized this mistake, they withdrew their sale of beef and also discontinued their purchase of meat products, and later contacted the Food Standards Agency (Humane Society International, 2012).

The presence of low level horse DNA in beef products prompted the Birds Eye to go ahead and remove their readymade beef meals from supermarket shelves based on the fact that they were made from Belgian Companies (Meikle, 2013). The products include the traditional 340g spaghetti Bolognese, the 400g Shepherd’s Pie and the 400g beef lasagne. Further tests that have been conducted on the Birds Eye product, and in particular on the beef lasagne and spaghetti Bolognese, show that these products contain traces of Horse DNA. This has prompted beef manufacturers and traders to introduce a new DNA testing program, which will make sure that no pulverized beef product will be distributed to the retail stores without undergoing thorough screening and DNA testing (Meikle, 2013).

Beef testing in Europe

The local authorities in European countries as well as the Food Standards Agency carry out close to one hundred thousand tests annually, as part of their routine, to detect the numerous food safety issues and fraud issues encompassing the food industry by using the risk based approach system (Department for Environment, Food and Rural Affairs, 2013). The Food Standards Agency requires a more vigorous response from the food industry so as to demonstrate their campaign in fighting the horsemeat scare across Europe. The Food Standards Agency aims at ensuring that every food industry prepares food, sells their products and deserves their product with the quality it has advertised on its cover paper. Food operating businesses are required to carry out authenticity tests on every processed beef products, for example lasagne, beef burgers and meatballs, and then provide the tested results to the Food Standards Agency (Department for Environment, Food and Rural Affairs, 2013). The tests results, which have been submitted to the Food Standards Agency, ought to be published by the specific retail company that was responsible for carrying out the tests. This ensures there is maximum transparency in the food testing and authenticity system for the benefit of the beef product consumers. Additionally, the Food Standards Agency is conducting a nationwide inspection incorporating the various beef products, which are available for consumption to UK consumers. The companies responsible for supplying public institutions like schools and even hospitals are part of the Food Standards Agency sampling programme. 

The various countries’ local authorities aim at identifying and understanding the various factors that lead to the presence of meat products, which have not been labelled as ingredients so as to eliminate, explain and correctly label such products. The local authorities have undertaken numerous activities including carrying out surveying in order to come up with relevant information regarding the possible presence of pig DNA or possible traces of horse DNA in the wide range of beef products, which are available to the UK consumers (Department for Environment, Food and Rural Affairs, 2013). According to the Department for Environment, Food and Rural Affairs (2013), the survey will take samples from pre-packed beef products at retail stores, which claim the products are beef or either beef combined with other labelled meat species. These include meat balls, burgers, sausages and minced beef. The other samples that will be sampled include frozen beef products, imported beef products from the third world countries and fresh beef products. This survey will aim at selecting a percentage of the beef products, which represent the goods that are available on the consumer market and the samples are taken in such a way that enforcement actions ought to be taken, if necessary, in order to protect the well being of the consumers.

Conclusion

Even though the horse meat scandal has proved to be detrimental especially to the well being of the European citizens, the realization of this vice by the relevant agencies as well as the local authorities has proven successful in the fight against the consumption of such products. In Europe, chilled horsemeat, fresh horsemeat as well as processed horsemeat products are readily available for the consumption of the population. According to the report by the Humane Society International (2012 14), horsemeat is commonly sold in the form of smoked meat slices or can either be incorporated as a cheap convenience ingredient to the meat products rather than selling it as meat steaks with such products including beef lasagne, which is a common delicacy in Europe. The low levels of occasional consumptions that have been reported indicate that horsemeat is a readily available commodity in most European countries. The high levels of horsemeat importations especially from the third world countries is not accounted for and therefore; not reflected in the labelling packages as beef products that come from a reliable country of origin (Humane Society International, 2012 15).

Recommendations

The survey carried out shows that about ninety percent of the companies involved in the study together with the local authorities have been involved in the uncertain economic growth and the impact on supply chains management (Doeg, 2005 169). On a risk management perspective, numerous European beef processing and supply company executives ought to try and understand how their suppliers operate. It is their right to be part of the supply and logistics by carrying out their own independent inspections and analysis of the specific beef product and in so doing, the companies would comply with the standards required by their clients (Doeg, 2005 24). As soon as a company determines that the beef products obtained from the supplier contains traces of horsemeat, then the company ought to introduce a benchmark system, which will be responsible for testing fully all the products bought so as to ensure there is no other trace of pig DNA or horse DNA within the purchased products. In so doing, it would create a system whereby the suppliers and retailers have a disclosure agreement concerning the presence of horse DNA in the food products (Doeg, 2005 25).

Safety is the key factor to consider when managing the movement of beef products from the source to the retail store. However, due to mistrust issues on terms of correct labelling of the beef products, horsemeat contamination has become a major problem in European countries (De Leon, Meacham & Claudio, 2003 68). An example is the Taco Bell food retail chain, where apart from horse DNA being found on their beef products, the supplier on the other hand had agreed to supply only Irish beef since they had Polish meat in their preservation chambers for supply during harsh economic times (Sullivan, Barthorpe & Robbins, 2011 18).

The truth aspect has not entirely been lost on the clients. A UK based Consumer Intelligence company conducted research and suggests that about twenty percent of British grown patrons have confessed to buying of less meat due to the horse-meat scandal (Donald & Waters, 2007 118). About two thirds of the adult population surveyed confessed that they have trust issues with food labels, at the same time, more than sixty percent alleged to having plans of buying meat from their neighbourhood butchers due to the horse-meat contamination (Meyer, 2013). This means that the retailer companies such as Taco Bell ought to become accustomed to the risks involved and act accordingly because the horsemeat contamination might become a menace and if not realized early, then the food processors might continue with their insufficient standards of manufacturing beef products, which turns out to be cost cutting more so to the suppliers of the beef products.

The control of food imports especially from countries, which are outside the European Union, ought to comply with the strict food safety standards and requirements so as to make sure the products are equivalent to the produced foods found in the European nations (Belasco & Horowitz, 2010 71-74). The imported foods become subject to constant food checks especially by the local authorities and health officers at the ports as it helps to ensure that they comply with the regulations (Department for Environment, Food and Rural Affairs, 2013). The other important factor to consider is having one entry point for the imported beef products. These border examination posts ensure that meat products are inspected and the health officers make sure there is no pig or horse DNA in the products (Department for Environment, Food and Rural Affairs, 2013). In case the imported products pose any threat to human consumption, then the present legislation permits the ban of such imports. The Trade in Animals and Related Products Regulations 2011 uplifts bans against contaminated meat since the products risks human health (De Leon, Meacham & Claudio, 2003 95).

Reference

Belasco, W. and Horowitz, R. 2010. Food Chains: From Farmyard to Shopping Cart. Pennsylvania: University of Pennsylvania Press.

Department for Environment, Food and Rural Affairs. 2013. Processed beef products and horse meat. Available at HYPERLINK “http://www.defra.gov.uk/food-farm/food/labelling/processed-beef-horse-meat/” http://www.defra.gov.uk/food-farm/food/labelling/processed-beef-horse-meat/. (Accessed March 24, 2013).

De Leon, S., Y., Meacham, S., L and Claudio, V., S. 2003. Global Handbook on Food and Water Safety: For the Education of Food Industry Management, Food Handlers, and Consumers. Springfield: Charles C Thomas Publisher.

Doeg, C. 2005. Crisis Management in the Food and Drinks Industry: A Practical Approach London: Springer.

Donald, C and Waters, J. 2007. Global Logistics: New Directions in Supply Chain Management. London: Kogan Page Publishers.

Food Standards Agency. (2013). Update on progress of FSA beef product surveys. Available at HYPERLINK “http://www.food.gov.uk/news-updates/news/2013/mar/surveys-update” http://www.food.gov.uk/news-updates/news/2013/mar/surveys-update. (Accessed March 24, 2013).

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