Project Valuation and Risk Assessment in Food Product Development: Evidence from Fuzzy Real Option Valuation

To survive in today's competitive environment, companies must continuously develop and offer customers new products. To increase the probability of a successful business case of investing in the development of a new product, careful attention must be paid to risk analysis in terms of the present value of future potential income. The article considers an example of the research work of the Latvia University of Life Sciences and Technologies, in the framework of which a technical and technological project was developed to produce a new product, like Mediterranean anchovy, from cheaper Baltic sprats. The main goal of this work is to explore the application multi-factor sensitivity and fuzzy real option analysis to the valuation of new product development project. The multivariate analysis of the sensitivity of the financial model of the greenfield production project described in this article revealed the main risk groups, as well as their degree of influence on the assessment of the Net Present Value of the project by a potential investor. The use of Fuzzy Real Option Valuation made it possible to evaluate the project with uncertain parameters, as well as to calculate the potential upside from preliminary refinement of parameters to eliminate negative scenarios. The described approach is applicable to risk assessment of new food product development and allows investors to make a more informed decision about participation in such projects.

THE STRATEGY OF INCREASING PRODUCTION COMPETITIVENESS IN FOOD INDUSTRY OF THE REPUBLIC OF SRPSKA BY STIMULATING A NEW PRODUCT DEVELOPMENT

Food processing enterprises could ensure production competitiveness by improving product quality and harmonising it with consumer requirements. The non- communicable diet-related diseases have been increas- ing rapidly among consumers in the last decade as well as the impact on people’s attitudes towards nutritional aspect of the quality of food products and healthier diet. The aim of this paper is to illustrate the methodology for increasing production competitiveness in food industry of the Republic of Srpska, based on consumer-oriented food product development and healthy diet. The struc- tured questionnaire and scientific methods were used in young consumer representatives’ research regarding food product development in the target market. Exactly 720 participants were recruited from public educational institutions in the Republic of Srpska. The descriptive statistics and correlation were used for the data analysis. The results indicated positive statistically significant correlation coefficients (p0.05) between consumer interest in new products and: healthy diet preferences; product ingredients; product higher nutritive value (vi- tamins, minerals, dietary fibres content); fruit, fruit juice and low-energy beverages consumption. Also, knowl- edge on diet-related diseases was in significant posi- tive correlation with them. The data analysis revealed that an increase in production competitiveness could be assessed through developing food products based on nutritive elements, modelling and consumer interest in new food products with higher nutritive quality.

Effects of processing methods on nutritional composition of improved soybean varieties for soymilk production

Value addition efforts in respect of using soybean in various food applications are scarce in Ethiopia. The effect of processing methods was investigated on nutritional composition of improved soybean varieties for soymilk production. The experiment was carried out in a factorial design, improved soybean variety as the first factor (Didessa, Katta and Korme) and processing methods as a second factor of three levels (Illinois, Cornel and Traditional method), replicated three times. The Cornel processing method gave the highest ash content (0.32%) from Korme and the lowest (0.27%) from Didessa and Katta varieties. The highest (2.60%) crude protein content was recorded from Didessa and the lowest (2.13%) from Katta, using Cornel processing methods. The highest carbohydrate content (13.21%) was recorded from Didessa and the lowest (6.87%) from Korme. The highest (75.93 kcal/100 g) energy content was recorded from Didessa and the lowest (51.77 kcal/100 g) from Korme, by Cornell processing method. Generally, Cornel processing method was the best of the three processing methods for improved variety of soybean. From the three varieties of improved soybean, Didessa had higher nutritional composition and could be used in different food product development efforts and can contribute in addressing the food security problems of Ethiopia.

Effects of Various Processing Methods on the Metabolic Profile and Antioxidant Activity of Dendrobium catenatum Lindley Leaves

The metabolite profiles and antioxidant activity of Dendrobium catenatum Lindley leaf, a new functional ingredient for food product development, were evaluated in samples that had been prepared using various methods, including freeze-drying, hot-air drying, rolling before drying, steaming before drying, steaming and rolling before drying, and drying at 100, 80, and 60 °C. The concentrations of polysaccharides and flavonoids, as well as the antioxidant capacity of each sample, were determined. Furthermore, two nucleosides, four amino acids, one monoaromatic compound, and eight flavonoids were identified in dried leaves using high-performance liquid chromatography–diode array detector–electrospray ionization–multistage mass spectrometry (HPLC-DAD-ESI-MSn) and ultraviolet (UV) spectral analyses. The content of polar compounds such as cytidylic acid, arginine, tyrosine, and hydroxybenzoic acid hexose increased dramatically during hot-air-drying and rolling-before-drying treatments, while flavonol C-glycosides remained stable throughout the various treatments and drying temperatures. Rolling before drying at 100 °C was identified as the most suitable process when manufacturing tea products from D. catenatum leaves. This process resulted in a high-antioxidant-activity and visually appealing tea. This report details a potential strategy that should be applied in the manufacturing processes of high-quality products from D. catenatum leaves.

Texture-Modified Food for Dysphagic Patients: A Comprehensive Review

Food texture is a major food quality parameter. The physicochemical properties of food changes when processed in households or industries, resulting in modified textures. A better understanding of these properties is important for the sensory and textural characteristics of foods that target consumers of all ages, from children to the elderly, especially when food product development is considered for dysphagia. Texture modifications in foods suitable for dysphagic patients will grow as the numbers of elderly citizens increase. Dysphagia management should ensure that texture-modified (TM) food is nutritious and easy to swallow. This review addresses how texture and rheology can be assessed in the food industry by placing particular emphasis on dysphagia. It also discusses how the structure of TM food depends not only on food ingredients, such as hydrocolloids, emulsifiers, and thickening and gelling agents, but also on the applied processing methods, including microencapsulation, microgels as delivery systems, and 3D printing. In addition, we address how to modify texture for individuals with dysphagia in all age groups, and highlight different strategies to develop appropriate food products for dysphagic patients.

Sustainability Indicators for Foods Benefiting Climate and Health

New methods for combined evaluation of nutritional and environmental aspects of food products are needed to enable a transformation of dietary guidelines integrating both health and environmental perspectives. We evaluated two sustainability aspects; nutrition and climate impact, of foods commonly consumed in Sweden and the implications of using parallel or integrated assessments of these two aspects, also discussing the usability and suitability of these food sustainability indicators in relation to Swedish dietary guidelines, industry food product development, and consumer communication. There were large differences in both nutrient density and climate impact among the different foods. The parallel assessment easily visualized synergies and trade-offs between these two sustainability aspects for the different foods. Coherence with dietary guidelines was good, and suitability and usability deemed satisfying. The integrated indicator showed better coherence with dietary guidelines than indicators based solely on nutrient density or climate impact; however, the difficulty to interpret the score limits its usability in product development and consumer communication. With both methods, advantageous as well as less advantageous plant-based and animal-based food alternatives were suggested. The two alternative methods evaluated could serve as useful tools to drive individual and societal development towards more sustainable food production and consumption.

Consumer-led eco-development of food products: a case study to propose a framework

PurposeThe purpose of this paper is to propose an agile methodology for the development of food products that has two key characteristics: (1) consumers are included as co-creators and (2) the assessment of environmental impacts plays a central role.Design/methodology/approachIn collaboration with a French small-to-mid-size enterprise, a research-intervention approach was used to test the agile methodology designed, which features three iterative runs of food product development. In each run, prototypes were presented and modified with consumers during focus groups. Life cycle analysis assessed the relative environmental impacts of the prototypes. The research data from consumers were mainly qualitative.FindingsThe main result of this work is the implementation of a methodology to develop new food products in an efficient way by integrating consumers' insights and environmental concerns simultaneously. The method was successful in integrating consumers as co-creators and in drawing attention to the potential environmental effects of different prototypes for the decision-making process.Research limitations/implicationsThe research is based on a single case study. Thus, generalisation to other companies is limited. The authors invite further research focussed on different types of companies. The methodology and the tools could be modified to suit a variety of contexts.Originality/valueThis work addresses the need for guidelines to integrate consumers and environmental considerations into the food development process by testing an agile methodology with a company. It contributes to the scope of sustainable and consumer-oriented food innovation management.