Methodological Centre for Vocational Education and Training

Study of Food Products and Beverages Industry Research report on skill needs

Vilnius, 2008

STUDY OF FOOD PRODUCTS AND BEVERAGES INDUSTRY

Eksperts: Gitana Alenčikien÷, Violeta Averjanovien÷, Saulius Baliukynas, Giedr÷ Beleckien÷, Gintautas Bužinskas, Vaidas Daujotas, Vincentas Dienys, Bronislava Kaminskien÷, Rūta Karvelyt÷, Vitalija Motiekait÷n÷, Candy Murphy, Raimondas Narkevičius, Almina Pačešiūnien÷, Vita Povilionyt÷, Loreta Račelien÷, Albertas Šlekys, Laima Teliukien÷, Lina Vaitkut÷

We are sincerely grateful to sector organisations and everyone who helped us in this activity. We hope that the information presented will be helpful while planning employees training and performing other tasks.

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SUMMARY

The sector of manufacture of food products and beverages (FB) is defined according to the activities of the

international NACE classification. It consists of the following nine sub-sectors: meat (further referred to as

ME), fish (further referred to as FI), fruit and vegetables (further referred to as FV), oils and fats (further

referred to as OF); diary products (further referred to as DP), grain (further referred to as GR), animal feeds

(further referred to as AF), other food products (further referred to as OFP) and beverages (further referred

to as BE).

International trends

The manufacture of food products and beverages is the biggest sector of manufacture in the European

Union. It employs 4 million employees, makes up 1.8 per cent of the EU gross domestic product, has a

relatively high number of economic entities and a huge demand for the labour force. The characteristics of

the sector, as compared to the other economic sectors, are the following: part-time employment, young

employees (aged up to 30) and a substantial share of workers with low qualifications. The growing

competition, poor working conditions and stricter legal requirements had an impact upon viability of the

sector and sharpened the problems related to the attraction and maintenance of staff.

Although short-term and medium-term future prospects of the sector are positive, the possible threats create

a need to invest into employee training and self-improvement and focus on product development,

innovations and business development in the entire sector, embracing both small and medium-size

enterprises. To have the manufacture of food and beverages effectively adapt to changes, managers,

qualified workers and professionals, research and development as well as technical staff should be provided

with adequate training and support. Training should be oriented towards filling in the current gaps of skills

and satisfaction of the emerging demand for them. Regional authorities and national training establishments

will play a key role in helping enterprises meet the emerging challenges and ensuring sector development in

Europe.

Trends of Food products and beverages sector development in Lithuania

Enterprises. According to the preliminary data of 2007, there were 1,094 enterprises operating in the sector.

Out of that number, 47 per cent of enterprises specialised in manufacture of food products; 23 per cent of

companies were involved in production, processing and preserving of meat and meat products and 11 per

cent of enterprises manufactured beverages. The remaining enterprises (comprising one fifth of the total)

carry out activities in the other six sub-sectors. The sector is predominated by very small (with up to 9

employees) and small (from 10 to 49 employees) enterprises, making up 80 per cent of the total number of

the sector enterprises. The biggest concentration of enterprises is in Vilnius and Kaunas counties.

Employees. According to the preliminary of 2007, the sector employed 51,700 people. They account for

more than 3 per cent of the total number of employees in the overall Lithuanian economy. Employees in the

sub-sectors of other food products, meat and diary products made up 70 per cent of the total number of the

sector employees. During the period of five years (in 2003 – 2007) the number of staff in very small and

small enterprises was dropping.

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Performance indicators. During the recent five years, the turnover in the FB sector has gone up. According to

the preliminary data of 2007, the biggest turnover was in the sub-sector of dairy products and other food

products, followed by the meat and beverages sub-sector. In 2003 - 2007, the level of productivity rose in all

the FB sub-sectors. The biggest growth was seen in the sub-sectors of fruit and vegetables, meat, oils and

fat, and beverages. In the five year period, the value-added created by the sector went up my slightly more

than 1.5 times. The earnings of employees were increasing in all the FB sub-sectors, yet they remained

lower than the national indicator. As compared to the other branches of manufacture, earnings offered to the

FB sector staff are among the lowest. With regard to the volume of export, the FB sector is one the leaders

among the branches of manufacturing. Generally speaking, the FB sector is sufficiently competitive on the

international scale.

Technologies. Modern technologies are used by almost 55 per cent of the FB enterprises and 64 per cent of

them are planning to use modern technologies in the future. The information technologies to be used by the

FB sector in the future include production planning and accounting software and e-trade technologies.

Development trends. The sector forecast for 2012 is rather optimistic: the turnover in the majority of sector

enterprises will continue to grow (with the exception of oils, fats and grain) but the rate of growth is likely to

slow down. One of the reasons for that is insufficient labour force resources. The volume of production

should be increased by resorting to some other sources, for example, increasing the labour productivity,

which is currently quite low, and applying new technologies. The biggest threat to a successful business

development is the shortage of ‘qualified workers’ or simply ‘workers’ and the ‘tax system’.

Demand for employees. The turnover of staff in the FB sector is rather high, accounting for 43 per cent per

year. Its rate is the highest in the group of manufacturers and other workers. The main reasons for that are

emigration, seasonality of work and new technologies. The groups of employees which are most difficult to

find are manufacturers and other workers, whereas professionals are less of an issue. The tension level (the

ratio between the number of vacancies and the number of the unemployed) in the sector is less than 1 and

therefore is smaller than the relevant national indicator. This means that the quantitative supply of

employees in the sector is lightly exceeding the demand for them. Noteworthy, the tension level among

different sub-sectors is not the same.

Changes in skills. The sector employees mostly lack foreign language and work organisation skills. In

addition, professionals require work planning and control as well as computer literacy skills. Qualified

employees lack responsibility, duty and willingness to learn, whereas professions need innovation and

management skills.

Supply of employees. In 2006, the entire manufacturing industry, which includes the FB sector, employed

almost three times more qualified workers than professionals (including technicians). According to the

preliminary data of 2006, the number of admitted students in the FB sector training programmes and the

number of graduates from them reveal different trends. First, the number of students admitted into higher

education establishments exceeds the number of students in primary vocational training programmes almost

2.5 times. Second, the number of graduates from higher education establishment is slightly exceeding the

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number of vocational training graduates. This means that the gap between the supply and demand for

workers will continue to increase in the future, causing serious problems for business development.

Recommendations:

• Although the level of employment in the FB sector enterprises among the group of workers is four times

bigger than in the group of professionals (including technicians), the number of admitted students to the

FB sector programmes of higher education exceeds the number of students to the relevant vocational

training programmes 2.5 times (data of 2006). As a result of such disproportion, the supply of

professionals in the labour market exceeds the demand for them, whereas qualified workers are lacking.

Therefore it is recommended to review the plans of admitting students into the state funded higher

education and vocational training programmes of the FB sector.

• The shortage of ‘manufacturers’ and ‘other workers’ in the sector is mostly linked to the lack of workers

trained by vocational training establishments. The latter is associated with the low level of prestige, in the

eyes of society, of vocational training. Therefore it is recommended to advertise and raise awareness

about food manufacturing occupations among the youth (organising advertising campaigns in general

education schools, in the press, television and showing examples of successful careers pursued by the

graduates, etc.). The attractiveness and prestige of the sector occupations should also be increased by

the food manufacturing enterprises. They could offer higher remuneration for work and social guarantees

to their employees, improve working conditions and motivate staff by offering refresher courses abroad.

• Certain sector enterprises (particularly those operating in the grain and animal feed sub-sectors) lack

food machine operators. Presently, no training is available to offer such occupational qualification.

Previously, workers of similar qualification were trained under the Food Industry Equipment Operator

and Laboratory Assistant Training Programme. Therefore it is recommended to modify the programme to

include training of food machine operators.

• The sector of the FB manufacture offers a huge variety of occupation posts and competences.

Therefore, the annual demand for employees in certain occupation posts is rather high. Therefore it is

recommended to organise training based on modules. In the beginning students would attend obligatory

training modules offering general competences required by the FB sector and later they could choose

additional competences necessary for the occupation of their choice from the range of optional modules.

The optional modules could be agreed with the interested sector enterprises which usually employ the

graduates.

• The analysis performed shows that enterprises willing to respond to market changes in a more flexible

and speedy manner will speed up the use of modern production technologies. That will also reduce the

need for workers with low qualification and increase the demand for higher skilled workers (for instance,

operators). Therefore, it is recommended to organise practical training for employees (for example, by

appointment of enterprise workers as manufacturing practice supervisors or tasking them to perform

other assignments). It the long-run this would ensure smaller discrepancy between the supply and

demand for employees of certain qualifications.

• The new form of organisation of apprenticeship vocational training has been established by law. It

means on-the-job training in an enterprise, institution, organisation, farm or with a free-lance trainer.

Theoretical training may be carried out in vocational training establishment or another type of school.

The experience of other countries shows, that the advantages of apprenticeship include smaller training

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costs and work with modern technologies. Enterprises are recommended to use the opportunity to train

the employees according to their own needs and, at the same time, increase the attractiveness of

vocational education and training.

• According to the survey findings, all the sector employees lack foreign language and work organisation

skills. n addition, professionals require work planning and control as well as computer literacy skills.

Qualified employees lack responsibility, duty and willingness to learn, whereas professions need

innovation and management skills. Therefore, to ensure appropriate qualification of employees,

training/study programmes should be updated with regard to the identified needs of skills.

Structure of the study. The study comprises 6 chapters. Chapter 1 makes a brief overview of the objectives

of the study, the concepts used by it and the methodology of the social survey. In addition, it describes the

structure of the sector of manufacture of food products and beverages sector. Chapter 2 explains the

international trends in the sports sector development. The purpose of Chapter 2 and Chapter 3 is to analyse

performance indicators of the sector and make an assessment of the employee demand. The indicators

used in Chapter 3 are based on the data developed specifically for the study and publicly available

information, whereas the indicators in Chapter 4 include findings of the survey. Chapter 5 analyses the

supply of employees and Chapter 6 provides recommendations developed on the basis of information

analysis. Their aim is to to reduce discrepancy between the supply and demand of employees in the sports

sector.

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TABLE OF CONTENTS

1. RESEARCH METHODOLOGY .......................................................................................................................................................... 7

1.1. Introduction................................................................................................................................................................................. 7 1.2. Authors of the Study................................................................................................................................................................... 7 1.3. Goal of the Study........................................................................................................................................................................ 7 1.4. Methodology............................................................................................................................................................................... 7 1.5. Definition of the Sector ............................................................................................................................................................... 7 1.6. Sociological Survey of Sector Enterprises ................................................................................................................................. 8

2. INTERNATIONAL TRENDS ............................................................................................................................................................. 10

2.1. Introduction............................................................................................................................................................................... 10 2.2. Overview of the sector.............................................................................................................................................................. 10 2.3. Relationship between food and beverages and other sectors ................................................................................................. 14 2.4. Employment in the Food and Beverage Sector........................................................................................................................ 15 2.5. Factors driving developments in the Food and Beverages Sector........................................................................................... 18 2.6. Impact of these developments on employment and skill needs............................................................................................... 25 2.7. Summary .................................................................................................................................................................................. 30

3. STATISTICAL CHARACTERISTICS OF THE SECTOR.................................................................................................................. 32

3.1. Introduction............................................................................................................................................................................... 32 3.2. Briefly about the Sector of Manufacture of Food Products and Beverages ............................................................................. 32 3.3. Enterprises ............................................................................................................................................................................... 33 3.4. Employment in the Sector ........................................................................................................................................................ 34 3.5. Performance Indicators ............................................................................................................................................................ 37 3.6. Development Trends ................................................................................................................................................................ 39 3.7. Summary .................................................................................................................................................................................. 40

4. CHARACTERISTICS OF SECTOR BASED ON SURVEY FINDINGS ............................................................................................ 42

4.1. Introduction............................................................................................................................................................................... 42 4.2. Performance indicators ............................................................................................................................................................ 42 4.3. Employees................................................................................................................................................................................ 45 4.4. Forecast of Demand for Employees in the Future.................................................................................................................... 47 4.5. Summary .................................................................................................................................................................................. 48

5. SUPPLY OF EMPLOYEES .............................................................................................................................................................. 49

5.1. Introduction............................................................................................................................................................................... 49 5.2. Education and Job Groups....................................................................................................................................................... 49 5.3. Supply of Employees by Areas and Level of Education........................................................................................................... 51 5.4. Supply of Employees in the FB Sector..................................................................................................................................... 52 5.4.1. Supply of Skilled Workers (Manufacturers) for the FB Sector............................................................................................... 53 5.4.2. Supply of Professionals, Including Associate Professionals and Technicians, for the FB Sector......................................... 54 5.5. Summary .................................................................................................................................................................................. 54

6. RECOMMENDATIONS .................................................................................................................................................................... 56

REFERENCES ..................................................................................................................................................................................... 58

ANNEX 1 .............................................................................................................................................................................................. 59

ANNEX 2 .............................................................................................................................................................................................. 60

ANNEX 3 .............................................................................................................................................................................................. 62

ANNEX 4 .............................................................................................................................................................................................. 65

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1. RESEARCH METHODOLOGY

1.1. Introduction

Since 2005, the Methodological Centre for Vocational Education and Training has been performing a project,

Development of the National System of Vocational Education and Training Standards. The purpose of the

project is to develop the national system of vocational education and training standards which would help

increase conformity between training and education on the one hand and global performance needs on the

other hand as well as provide better conditions for life-long learning. One of the main activities of the project

is to examine six economic sectors with a view to assessing the prospects of their development and the

impact on the number of employees and training needs. The project is of national importance and is funded

by the European Social Fund.

1.2. Authors of the Study

The study was developed by a group of experts representing a variety of Lithuanian bodies and

establishments (educational, scientific, statistics, business, etc.). Assistance was provided by experts from

Ireland having the relevant expertise in implementing similar type of activities and identification of necessary

skills.

1.3. Goal of the Study

The main goal of the study is to analyse the trends of development of the manufacture of food products

and beverages sector in Lithuania and other countries and, on the basis of that, determine the changes in

the number of employees and training needs for the upcoming five years as well as provide concrete

recommendations to improve conformity between the supply and demand of the labour force.

1.4. Methodology

The sectors are studied using a single methodology developed together with the Irish experts in 1999. The

study of the manufacture of food products and beverages sector encompasses the following phases:

1. An overview of publicly available information in Lithuania and other countries about the sector and

related areas as well as the analysis of official statistics about the sector;

2. A survey of sector enterprises by means of interviews and postal questionnaire surveys;

3. Analysis of all information and identification of change factors in the sector;

4. Projection of employment in the sector;

5. Assessment of the sector training needs in the upcoming five years.

1.5. Definition of the Sector

The sector of manufacture of food products and beverages has been defined according to the activities

included into the NACE classification. The definition has been modified by the Lithuanian and EU experts..

This made it possible to compare the findings of the study with the international results. By definition, the

sector of manufacture of foods products and beverages (further referred to as FB) consists of the following

nine sub-sectors (see Fig. 1.1): meat (further referred to as ME), fish (further referred to as FI), fruit and

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vegetables (further referred to as FV), oils and fats (further referred to as OF); diary products (further

referred to as DP), grain (further referred to as GR), animal feeds (further referred to as AF), other food

products (further referred to as OFP) and beverages (further referred to as BE).

Fig. 1.1. Manufacture of Food Products and Beverages according to NACE Classification

1.6. Sociological Survey of Sector Enterprises

A postal questionnaire survey of enterprising operating in the sector of manufacture of food products and

beverages was performed in 2007. The sample for survey was compiled on the basis of the data from the

Registry of Economic Entities, as well as by looking at the type of the prevailing economic activity (according

to the Classification of Economic Activities in the European Communities, NACE) carried out by the

enterprise. The total number of enterprises selected was 1012. The participants of the postal questionnaire

survey were asked to return the filled out questionnaires after several weeks. When the questionnaires were

sent out to the respondents, telephone calls were made to remind them about the deadline for sending the

questionnaires back. In this way, a sufficient level of response was secured.

Manufacture of Foods Products and Beverages Sector (FB)

Meat (ME)

Grain (GR)

Fish (FI)

Animal Feeds (AF)

Fruit and Vegetables (FV)

Oils and Fats (OF)

Dairy products (DP)

Other Food Products (OFP)

Beverages (BE)

Production, processing and preserving of meat and meat products (15.1)

Production, processing and preserving of fish and fish products (15.2)

Production, processing and preserving of fruit and vegetables (15.3)

Manufacture of vegetable and animal oils and fats (15.4)

Manufacture of dairy products (15.5)

Manufacture of grain mill products, starches and starch products (15.6)

Manufacture of prepared animal feeds (15.7)

Manufacture of other food products (15.2)

Manufacture of beverages (15.2)

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Interviews were made with the respondents from the leading enterprises. The total number of enterprises

interviewed was 12. The information received was used to assess training needs in the sector of

manufacture of food products and beverages.

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2. INTERNATIONAL TRENDS

2.1. Introduction

The food and beverages industry is the largest manufacturing sector in the EU, employing almost 4 million

people. Its contribution to the EU gross domestic product amounts to around 1.8% (European Foundation for

the Improvement of Living and Working Conditions, 2004a). The industry is also characterised by a high

level of labour intensity and while traditionally it was a relatively stable sector, in recent times the overall

share of employment in the EU has dropped quite dramatically.

There was an overall decrease in jobs over the period 1999-2004 of 11.4%, from 4.4 million to 3.9 million.

The sector is faced with an unprecedented number of challenges today, with widespread restructuring in

activity occurring across the EU (European Foundation for the Improvement of Living and Working

Conditions, 2004b). These developments are primarily driven by the need to enhance competitiveness and

address local and global changes affecting the industry. The voice of the consumer and the retailer has

increasingly shaped developments in the food sector in recent years, as a result of growing concerns over

food safety and a growing demand for higher quality and more diverse foods, driven by increasing incomes

across the EU.

The low skills base in the sector, coupled with high levels of part-time working and slowness to adapt to the

changing demands of consumers are impacting negatively on the sector’s performance. Such factors, along

with increased competition from developing countries, increasing consumer demands and stricter quality

controls threaten the future viability of the sector within Europe.

This section sets out the key developments in the European food and beverages sector and related

employment, skills and training needs. Firstly, the sector is defined and the overall position of the sector is

described. The paper then goes on to assess the relationship between food and beverages and other

sectors. It then outlines the current employment situation of food and beverages in Europe before assessing

both recent economic developments in the sector and likely future developments. The implications of these

developments for future employment, skills and training are then analysed.

2.2. Overview of the sector

The food and drink manufacturing industry is very broad but can be defined as the preparation of food and

drink products ready for sale and consumption. It involves the sourcing of ingredients, processing,

preservation and packaging. It also includes product research and design, taste testing and marketing

(European Foundation for the Improvement of Living and Working Conditions, 2004a).

The EU-25 traditionally has a positive trade balance with the rest of the world in food products, beverages

and tobacco. (Eurostat, 2006a). The sector accounts for 4.9 % of total industrial exports and 3.8% of total

imports. This trade surplus is due to strong export performance in a number of subsectors, mainly

beverages, bread, sugar, confectionary and other food products and dairy products. The United States is the

largest export market for European food products, beverages and tobacco as a whole (21 % share of

exports) and a particularly significant market for beverages (42 % of all EU exports) (Eurostat, 2006a).

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Structure of Food and Beverages in Europe

Together, food products, beverages and tobacco make up 11.3% of the total value-added of EU industry.

Within the sector, the manufacture of bread, sugar, confectionery and other goods is the largest sub-sector

in terms of value-added and number of persons employed (see Table 2.1). This sub-sector accounted for

over a third (34.9 %) of the total sectoral value added in 2003. The second and third largest subsectors were

beverages and meat processing which together accounted for a further third of both sectoral value added

(individually accounting for 17.7 % and 16.0% respectively) and sectoral employment (individually

accounting for 9.7 % and 22.4% respectively).

Table 2.1. Manufacture of Food products, beverages and tobacco

Value added

(EUR mn)

Share of Industrial value

added (%)

Number of persons

employed 000s

Share of industrial

employment Food products, beverages & tobacco 192.000 11.3 4,490 12.8 Meat 30.605 1.8 1,004 2.9 Fish 3.752 0.2 129 0.4 Dairy Products 18.000 1.1 390 1.1 Bread, sugar, confectionery & other goods

66.657 3.9 1,911 5.4

Miscellaneous food products 28.000 1.7 550 1.6 Processing and preserving of fruit and vegetables

10.900 0.6 265 0.8

Manufacture of vegetable and animal oils and fats

4.000 0.2 59 0.2

Manuf. of grain mill products, starches and starch products

6.026 0.4 108 0.3

Manufacture of prepared animal feeds 7.000 0.4 130 0.4 Beverages 33.814 2.0 437 1.2 Tobacco 10.000 0.6 60 0.2 Source: Eurostat, 2006a

The food and beverage industry accounts for 14% of total turnover in the EU industry ahead of both the

automobile and chemical industries. In 2005, turnover was €836 billion, an increase of 2.6% from 2004.1

Since 2001, turnover in the EU food industry has increased by €30 billion. However, the enlargement of the

EU in 2004 is partly responsible for the high level of growth during this period (CIAA, 2006) (see Figure 2.1).

1 Turnover: measured as sales from the food and beverage industry. The figure does not include artisan production and

farmgate sales.

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Fig. 2.1. Turnover in the EU Food and Drink Industry, billion €, current prices, 2001-2005.

750

760

770

780

790

800

810

820

830

840

2001 2002 2003 2004 2005

Source: CIAA, 2006

The sector is characterised by a relatively large number of companies. In 2005, there were 282,000

companies in the European food and beverage industry (CIAA, 2003). Microfirms, small and medium sized

ones are most common, accounting for more than 95% of the companies in the industry (see Figure 2.2).

However large companies, with more than 250 employees, account for more than 50% of total production in

the food and drink industry while only accounting for less than 5% of companies in the industry.

Fig. 2.2. Production, employment and share of companies by firm size, 2000

0

10

20

30

40

50

60

70

80

90

Micro-companies

(1-9)

Smallcompanies

(10-49)

Mediumcompanies

(50-149)

Largecompanies

(+250)

Production %

No. employees %

No. companies %

Source: CIAA, 2003

France, Germany, Italy, United Kingdom and Spain together account for more than 77% of turnover in the

EU-15 food and drink industry, and this pattern is also true for most sub sectors. The new member states

account for 7% of total EU food and drink industry turnover, with Poland accounting for almost half of the

food industry turnover in the new member states (CIAA, 2006). Many western European companies acquired

food and drink companies in the New Member States before their accession in 2004 (Hamann, 2007).

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In a majority of member states, the food and drink industry features in the top 3 manufacturing industries in

terms of turnover and ranks first in a total of 10 countries. The food and drink industry thus plays a key role in

both industrial activity and employment across the EU (CIAA, 2006).

Larger companies are found to a greater extent in the North and West of Europe. The number of food and

drink processing entities in the New Member States is thus proportionally much higher than in the EU-15

(Hamann, 2007) (see Table 2.2).

Table 2.2. ES EU Food and Drink Production, added value and industry structure, 2001

Production € bn¹ Value added € bn Employees 000s Number of companies

Austria 11² 2 79² 1264²

Belgium 24² 5 62 723

Denmark 17² 4 87² 450

Finland 8² 2 34 336

France 115³ 21 392³ 3604

Germany 110 27 597 6035

Greece 5 1 43 1036²

Ireland 15 4 47 687

Italy 93 24 268 6800

Luxembourg 1 0.3 4² 226

Netherlands 39² 6 147² 855

Portugal 10² 2 104² 1916

Spain 67 14 371² 3040

Sweden 13³ 3 53 244

UK 98² 30 506² 2319

EU-15 626 145 2796 29635

Source: European Foundation for the Improvement of Living and Working Conditions, 2004a Note: ¹: current prices; ²: more than one employee; ³: more than three employees; : more than nine employees.

Table 2.3 shows the Top 10 Food and Beverage companies within the EU and highlights the scale of

turnover accounted for by these companies.

Table 2.3. Top 20 Companies in the Food and Beverage Industry in Europe

Company HQ Subsector Turnover € mn Nestlé CH Multiproducts 52,680 Unilever NL Multiproducts 22,530 Danone FR Dairy, water, biscuits 13,700 Heineken NL Beer 10,005 Cadbury Schweppes UK Soft drinks and confectionery 9,941 Diageo UK Spirits 9,858

InBev BL Beer 8,568 Arla Foods DK Dairy 6,339 Ass. British Food UK Bakery, fats, ingredients 6,288 Danish Crown DK Meat 5,964 Sovion NL Meat and gelatine 5,915 Lactalis FR Dairy 5,670

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Scottish & Newcastle UK Beer 5,552

Carlsberg DK Beer 4,837 Barilla IT Pasta and baked goods 4,675 Südzucker DE Sugar, frozen foods, ingredients 4,575 Ferrero IT Chocolate and confectionery 4,475 Friesland Coberco NL Dairy 4,449 Tate & Lyle UK Sugar and sweeteners 4,240 Kerry Group IE Ingredients 4,129

Source: Hamann, 2007

2.3. Relationship between food and beverages and other sectors

Agriculture and food retailing are the sectors that impact to the greatest extent on the development of the

food and beverages sector within Europe.

Agriculture

The Food and Beverages sector is strongly influenced by factors affecting basic agricultural production and

in particular, the impact of growing concerns about food safety. Meat producers and processors in particular

have been affected by the spread of disease in recent years. Increased demands from consumers have also

put pressure on both food producers and processors to raise their standards and this trend has been

supported by both policy and technological changes.

The Agriculture sector is itself going through a period of significant changes. These changes include

reduction in subsidies for food producers and increasing exposure to international markets, changing

weather patterns, increasing demand for western style food from emerging the economies of China, India etc

and increasing demand for alternative land use to produce biofuels and new food products.

To best meet these developments food producers, manufacturers and retailers need to work together to

ensure that quality standards are met, that customer confidence in agricultural products is maintained and

that costs and profits are distributed in such a way that ensures the viability of the all of the sectors involved.

Food Retail

The retail sector in Central and Eastern Europe has developed strongly in recent years. However, Western

European countries continue to dominate the sector within Europe. For example, five Western European

countries, France, Germany, Italy, Spain and the UK account for two-thirds of all European retail sales

(Myers, 2005).

The EU-25’s non-specialised in-store retailing sector generated EUR 800 billion of turnover in 2003, EUR

120 billion of value added, while employing 5.6 million persons. It accounted for 32.9 % of the value added

created by the retail trade and repair sector and a slightly higher proportion (34.7%) of its workforce. Short-

term statistics show that over the period 1995 to 2005 there was a steady growth in the volume of sales

index for EU-25 non-specialised in-store retailing (Eurostat, 2006b).

In recent years the emergence of larger hypermarket chains, on an international, national and regional level

has substantially increase the power of retailers. A number of leading western European supermarket and

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hypermarket chains, including leading players such as Metro, Carrefour and Tesco are continuously

increasing their footprint within the region (CEE, 2003). Retailers now largely determine the type of food

available to consumers. Retailers also determine the source of the food on sale in their retail outlets. This

trend is likely to continue, with retailers placing increasing pressure on food and beverage manufacturers to

meet their demands. Given the large scale of these retailers’ businesses only food producers that can

provide year round, large volumes products, and have relevant IT technologies are increasingly able to do

business with these customers. While this has increased profits for large retailers, the benefits for

manufacturers in the food and beverage sector may not be as widespread (European Foundation for the

Improvement of Living and Working Conditions, 2004c).

However counter to this trend is the growing concern on the part of customers about food products being

flown around the world rather than being sourced locally along with a renewed interest in locally sourced,

straight from the farm products. This is providing new opportunities for local food suppliers who can develop

strong relationships with their local retailers or can develop direct distribution routes to consumers.

2.4. Employment in the Food and Beverage Sector

This section outlines recent employment trends and working conditions in the sector.

Recent Employment Trends

In 2005, 3,8 million people were employed in the food and beverage industry in the EU. Over 500,000 people

are working in the food and beverage industry Germany and the UK alone (Hamann, 2007). East European

countries such as Poland, Hungary, Czech Republic, Slovenia and Slovakia employ over 800,000 in the food

and beverage industry.

However since 2001 the number of employees in the EU food industry has decreased by 500,000 people.

From 2003 to 2004, employment within the sector decreased by 4.9% and by a further 1.5% between 2004

and 2005 (Hamann, 2007).

There are large regional differences within the European food industry. Turnover per employee varies

considerably as can be seen in Table 2.4. The large Northern European economies have achieved much

higher levels of productivity and given growing market pressure other economies in the south and east of

Europe will be under increasing pressure to improve productivity through increasing consolidation and

rationalization.

16

Table 2.4. Turnover, employment and Turnover per Employee in Selected Member States, 2005

Country Turnover (mn EUR)

Number of employees (’000)

Turnover/employee ('000EUR)

France 139.700 420.0 332.0 Germany 133.600 517.0 258.0

UK 102.500 462.0 222.0 Sweden 15.200 58.7 259.0 Greece 10.500 67.8 155.0 Poland 28.400 464.3 61.2 Hungary 7.500 113.4 66.0 Estonia 1,100 16.7 65.8

Source: CIAA, 2006

Increasing international competition is likely to further drive down the number of employees in the food and

beverage industry in the coming years, particularly in Eastern Europe as Eastern European food and

beverage companies attempt to increase productivity through the introduction of new production

technologies. (Hamann, 2007). As a result many traditional SMEs are expected to go out of business unless

they can become viable niche food producers.

Women account for a higher proportion of total employment in the food, beverages (and tobacco)

manufacturing sector than the average in the EU-25 industry sector as a whole (41.0 % compared with 28.7

% in 2005) (Eurostat, 2006a). Indeed, women represented at least half the workforce in this sector in the

Baltic Member States, Germany, the Czech Republic and Slovakia in 2005.

There is also a relatively high proportion of part-time workers in the European food, beverages and tobacco

manufacturing sector - an average of 11.8 % for the EU-25 compared with the average for industry as a

whole of 7.6 % (Eurostat, 2006a). This is most acute in Germany, where almost one quarter (24.6 %) of

those employed in the sector worked part-time in 2005 compared with an 11.5 % share across German

industry as a whole (Eurostat, 2006a).

There is also a slightly higher proportion of young workers (under the age of 30 years) in the food, beverages

and tobacco sector in the EU-25 compared with industry as a whole (24.3 % compared to 21.4 % in 2005

(Eurostat, 2006a). This was most apparent in Luxembourg (28.9 % compared with 14.4 %) and Sweden

(27.1 % compared with 17.1%), with other notable differences in Lithuania, Poland and the Netherlands.

Compared with many other industrial sectors, the proportion of total operating expenditure accounted for by

personnel costs in the food, beverages and tobacco sector was relatively low (an EU average of 14.3 % in

2003). This reflects the relatively high level of automation now in the sector (Eurostat, 2006a).

Working conditions

Working conditions for many food and beverage operatives are difficult. The work can often be repetitive and

physically demanding, with long periods of standing required. The work can also be hazardous, with higher

than average injury rates – burns from ovens, cuts from knives or cleavers are common and repetitive strain

injury is also a problem (Bureau of Labor Statistics, 2005). The work can also be stressful, particularly if

17

deadlines have to be met and the working environment is noisy, limiting interaction between workers. The

working environment often depends on the type of food being manufactured or processed – bakeries can be

uncomfortably hot, while meat processing plants or dairies can be cold and damp. Meat and fish processing

plants require workers to wear protection hats, gloves aprons and shoes (Bureau of Labor Statistics, 2005).

Skills, education and training

Very little formal education or training prior to being hired is required for many workers in manual labour jobs.

However, automation is becoming more common for many activities, leading to the replacement of many

unskilled workers. Many skilled workers, such as butchers, bakers and fish and poultry cutters acquire their

skills on the job through both formal and informal training programmes. The length of training can vary

significantly, with many of the higher skilled workers having to go through an apprenticeship (Bureau of

Labor Statistics, 2005).

More highly qualified workers such as food technicians and technologists, quality control and product

development personnel and marketing staff generally have third and often fourth level qualifications.

Demand for these higher level skills is expected to grow fuelled by concerns about food safety, increasing

customer demand for prepared foods and increasing competitive pressures which are driving greater

innovation within the sector.

Few studies have been carried out on qualifications needs of the sector within the EU. However, a good deal

of research has been carried out in recent years in the UK on skills levels within the sector. As the food and

beverages sector in the UK faces many of the same problems as other countries, the issues identified in the

UK can be used as a reference point for the sector throughout Europe.

The UK's food and drink industry has been found to have one of the most poorly qualified workforces in the

UK (Improve, 2005). About 19 per cent of the sectors workforce has no qualifications, compared to the

average of 11 per cent for the total UK workforce. Two-thirds of the sector‘s workforce in England do not

have a qualification higher than Level 2. Just seventeen per cent of the sector’s workforce in England is

qualified at Level 4 or higher (see Figure 2.4). One third of staff in the processing sector has no qualifications

at all.

In addition, many UK employers in the sector complain of widespread skills shortages among the more

highly skilled occupations which are having the effect of increasing operating costs and slowing down the

introduction of new working practices and products within the sector.

18

Fig. 2.4. Highest qualifications in the Food and Beverages Sector, England, 2004

0

20000

40000

60000

80000

100000

120000

No qualifications Level 2 Level 3

Source: Improve, 2005

2.5. Factors driving developments in the Food and Beverages Sector

This section looks at the key factors that are driving change in the food and beverages sector in Europe,

namely:

• Economic growth

• Population growth

• Competition for Raw materials

• Power of retailers

• Globalisation/Regionalisation

• Research & Development

• Technological Developments

• Food safety and regulation

• Consumer Demands and trends

Economic growth

The general economic outlook for Europe in the medium-term is promising. This will have a positive effect on

the development of the food and beverages sector. GDP for the euro area is forecast to grow by 2.5% in

2007 and 2.15% in 2008 (European Forecasting Network, 2007). In addition, the OECD (Organisation for

Economic Co-operation and Development) and the United Nations Agricultural Outlook for 2006-2015

anticipates strong growth within the OECD and in emerging economies for the duration of the period under

review (OECD, FAO, 2006). However, a number of factors may dampen the overall positive outlook,

including increasing oil prices and growing concerns in financial markets about debt risk, as well as growth

competition from emerging markets. Latin America and Asia are likely to experience strong growth, with

agricultural exports in Argentina and Brazil expected to exceed that of OECD countries. Globally, the food

and beverage market will continue to grow, largely due to growth in demand for western style food from the

developing countries such as India and China.

19

Population Growth

Europe’s population is expected to peak in 2022 (European Commission, 2003), but the situation varies

greatly from country to country. Italy’s population for instance, is expected to start falling early in this decade,

while Ireland’s will continue to increase until the middle of this century (European Commission, 2003).

Overall, however, changes in population structures throughout Europe are likely to lead to increasing

demand for products from Europe’s food and beverage sector.

Demographic and social changes will also have an influence on the kinds of food demanded and produced.

These include increase in the number of women working, smaller families, growth in single person

households and increasing aging of the European population (European Commission, 2003).

The food and beverage sector needs to respond positively to population trends, particularly the overall

ageing of the population and the increasing diversification in family structures. For example, an aging

population will create a growing demand for easier to open packaging and a preference for ‘soft’ foods

among those with dentition problems. In addition, the population of Europe’s biggest export market, the US,

is also set to age, with an overall decline expected.

Competition for Raw Materials

Increasing competition for raw materials from other sectors will having a growing impact on the food and

beverages sector in the future. Such competition will push up the price of the food industry’s raw materials

and place new pressures on food companies to remain competitive and profitable.

In the US up to 30 per cent of the land mass that was being used to produce food is now being diverted into

the production of corn and maize for biofuels. Such trends are pushing up feed prices for farmers. Increasing

demand for meat and dairy products from China and India is further driving up raw material prices for food

manufacturing companies in Europe. Wheat prices this year in Europe have increased by 70% as supplies

available for food manufacturing decline.

A key issue for the future will be the extent to which food producers can pass on such cost increases to

retailers and ultimately to the consumer. If such costs can not be pushed on, many food and beverage

producers will be under increasing pressure to remain competitive despite significant opportunities in new

markets. This is likely to lead to increasing consolidation within the sector and subsequent job losses.

Power of Retailers

Despite the presence of food manufacturing giants, it is food retailers who will increasingly control the food

chain with their ability to exert enormous influence over both consumers and suppliers. In 2003, the world’s

top 30 grocery retailers accounted for about one-third of retail sales worldwide and for about two-thirds in

Europe, with the leading 10 European retailers representing 40% of total retail sales (European Foundation

for the Improvement of Living and Working Conditions, 2004a). Table 2.5 shows the top 10 grocery retailers

worldwide, with Wal Mart the biggest player by far. But Europe’s own retail giants, such as Carrefour, Ahold

and Tesco, are also prominent. This trend suggests that food retailing in Europe will be characterised by

fewer, bigger players, more international in their structure, with US retailers seeking to increase their

20

presence significantly. Some analysts predict that global food retailing will be dominated by as few as four to

five players in the near future (Cap Gemini Ernst and Young, 2002 in European Foundation for the

Improvement of Living and Working Conditions, 2004a).

Table 2.5. Top 10 Grocery Retailers worldwide, 2003

Company Country of Origin Net sales € bn Grocery sales € bn

Wal Mart US 227 99.2

Carrefour France 70.5 54.6

Ahold Netherlands 56.1 47.1

Kroger USA 47.6 33.5

Tesco UK 44.6 33.2

Aldi Germany 36.3 30.4

Rewe Germany 39.2 29.6

Metro Germany 53.6 27.1

ITM France 33.1 26.8

Schwarz Group Germany 29.5 24.5

Source: M+M Planet Retail, 2003, European Foundation, 2004a

Given the dominant position of these organisations they have an enormous influence over consumers and

can also dictate to farmers and food and beverage manufacturers.

Globalisation/Regionalisation

Increasing international integration of markets in recent years has meant that agricultural and food products

are increasingly traded across national borders. Within Europe, the accession of new Member States in

Eastern Europe is bringing both easier access to agricultural supplies as well as new consumers (European

Foundation for the Improvement of Living and Working Conditions, 2004a).

While oil prices have been rapidly rising over the last two to three years, over the past 30 years, energy has

been relatively cheap and has fuelled the creation of an increasingly global food chain. Relatively low oil

costs made it possible to provide all-year round foods, allows vegetables and fruits to be flown in from Africa,

and shoppers to drive to out of town supermarkets (European Foundation for the Improvement of Living and

Working Conditions, 2004a). However, the organisation of the food system appears to be reverting to the

older system of prioritisation of local produce as a result of rising energy costs.

The global food chain has also resulted in increased competition within the sector, driven primarily by food

retailers, who have enormous influence over both consumers and suppliers (European Foundation for the

Improvement of Living and Working Conditions, 2004a). Concentration in retailing has also been growing. As

outlined above, In 2003, the world’s top 30 grocery retailers accounted for about one-third of retail sales

worldwide and for about two-thirds in Europe, with the leading 10 European retailers representing 40% of

total retail sales.

21

Research and Development

Investments in innovations will be crucial to maintaining the EU food and drink industry’s international

competitiveness, although, until recently, spending on R&D in the food and beverage sector was minimal. In

the EU, total industry spending on R&D reached €165 billion in 2004. The food industry only accounted for

€10 billion compared to the energy industry €21 billion and the manufacture of transport equipment at €38

billion (Hamann, 2007).

R&D spending varies between countries, with the Netherlands and Finland among the highest spenders in

the EU, with a R&D intensity of 0.50% on average. Generally, countries in the South of Europe spend less

on R&D, when compared with their Northern counterparts, due to the more fragmented nature of the sector

in Southern states, along with a stronger preference for fresh and low-processed food in the latter countries.

The R&D spending in the New Member States is very low compared to the EU-15 (Hamann, 2007).

Only around 1% to 1.5% of the food industry’s total investments are on R&D. A survey carried out in 2006

among European, American, Australian and Japanese food companies showed that European food

companies spent proportionally less on R&D than their competitors in the other countries (Hamann, 2007).

Food companies’ expenditure on R&D as a percentage of turnover is:

• Japan 1.21

• Australia 0.40

• USA 0.35

• EU-15 0.24

Expenditure on R&D also varies within the food and beverage sector. Food companies with above average

R&D spending are those producing ingredients or healthy (functional) food (see Table 2.6).

Table 2.6. R&D spending in selected Top-20 EU food and drink companies

Company R&D spending €mn

R&D in % of turnover

Sub-sector

Vilmorin Clause, FR 36 7.1 Vegetable seeds and biotech Danisco, DK 126 4.5 Ingredients and sugar Kerry, IE 125 2.8 Ingredients and dairy Numico, NL 45 2.3 Nutritional food Raisio, FI 10 2.4 Functional food and other goods CSM, NL 35 1.3 Ingredients and other foods Barilla, IT 30 1.2 Pasta and baked goods Source: CIAA, 2006

Looking to the future, survey data from 2005 shows that 48% of EU food and drink companies are not

planning to expand their R&D expenditures, and 4% are considering to close down R&D activities (Hamann,

2007). These developments will further push R&D activities into the large companies, who on the other hand,

are planning to increase R&D expenditures. From 2003 to 2005 large companies’ expenditures on R&D

increased by €10 billion and in 2005 the aggregated R&D spending of top-20 EU food and drink companies

reached €1.8 billion.

22

A range of incentives for food and beverage companies and other stakeholders to invest in R&D are

available at EU and national level. For example, EU Structural Funds, research programmes such as the Co-

operation Programme, as well as national governments’ funding streams have been made available to small,

medium and large companies to fund new and innovative technologies, sustainable production methods and

new approaches to logistics within the food and beverages sector.

Technological Developments

The key technological developments driving the sector are:

• Biotechnology

Biotechnology, including diagnostics, genetics and breeding technologies, environmental impact assessment

and risk analysis, has grown rapidly in recent years and has had a great impact on the food and beverage

sector. While this technology obviously has great potential to produce more and better food products at lower

costs, including genetically modified crops and animals, there are real fears about the effects of the

technology on animal and human health and on the environment. The food industry needs to develop the

competence to both harness and regulate this new technology. It also needs to ensure better communication

between the scientific community and consumers.

• Developments in Information and communications technology (ICT)

Developments in new technology are having enormous effects on the food industry. They have completely

changed the way farmers, food processors and retailers and customers interact. Increasingly it is only food

producers that have an ICT capability that retailers will work with. IT also allows firms in the sector to capture

a growing range of market information and intelligence. Niche and specialist suppliers are increasingly

selling their products direct to customers on the internet. Information technology has also changed the way

quality control is ensured within the sector. Increasingly modelling of changing consumer attitudes and

purchasing behaviour will be used to help firms to responsive rapidly to changing demand.

• Production and processing technologies and systems

Improved production and processing technologies (including ingredient technology; food microstructure,

flavour and quality; minimal processing technologies; pathogen control systems, including risk analysis

methodologies; food irradiation; high pressure technology and robotics) are increasing the ability of the

sector to meet customer demands for guaranteed food safety, assured freshness and quality.

The rate at which these technologies are introduced and the extent to which they are diffused throughout the

sector will play a key role in determining the future competitiveness of the European food and beverages

sector.

Food safety and Regulation

Safety and environmental concerns have increasingly shaped the farming and food system in Europe and

have led to EU Directives on food safety. Crises over BSE, foot and mouth disease, dioxin-contaminated

animal feed, as well as the GM food debate, have put the spotlight on food safety and the impact of food and

farming on the environment as never before. The Belgian dioxin scandal, in particular, prompted the

23

European Commission to adopt a White Paper on food safety covering all aspects of food products from

‘farm to table’. The White Paper led to a landmark General Food Law Regulation in 2002, which set out the

general principles of food law, and provided the legal basis for the creation of the European Food Safety

Authority (EFSA). From the food and drink manufacturing industry’s perspective, food safety is crucial in

building consumer confidence in its products. Above all, ‘the industry needs transparent, predictable, efficient

and responsive decision-making procedures to encourage innovation’ (CIAA, 2001, in European Foundation

for the Improvement of Living and Working Conditions, 2004a).

Consumer Demands and Trends

Arguably the most important driver of change is trends in consumer demand. The factors that influence

consumer demand for food and drink products are complex:

• demographic and socio-economic change;

• busier lifestyles;

• health, nutrition and safety concerns;

• environmental and ethical concerns;

• migration and demand for ‘ethnic foods’.

The growing recognition of the value of a well-balanced diet in order to stay healthy has perhaps been

central to calls for healthy foods, with many food producers cashing in, producing and promoting health or

functional foods intended to give specific medical or physiological benefits, e.g. spreads that reduce

cholesterol or pro-biotic yoghurt drinks.

A 2002 status report on nutrition in Europe recognised that good nutrition can help to reduce the prevalence

of many common diseases, such as cardiovascular disease, cancer, diabetes and obesity (European

Commission, 2002). Dietary habits and intakes depend on individual choices (cultural influences, food

preferences) as well as socio-economic and environmental factors (affordability and availability of food

products, quality and safety of products, etc). The EC Treaty, the White Paper on food safety, Community

action programmes in public health, all illustrate the European Union’s responsibility for, and commitment to,

improving nutrition and health. However, there is growing frustration among health professionals when it

comes to what people are eating. For instance, the UK’s Food and health action plan (Department of Health,

2003, in European Foundation for the Improvement of Living and Working Conditions, 2004a) found that:

• advice on healthy eating is consistent and well established based on sound evidence;

• few people currently follow Government advice for a healthy diet;

• most people eat more saturated fat, salt and sugar and less fruit and vegetables than experts

recommend;

• the diet of people on low incomes is an area of particular concern.

If diet-related diseases continue to grow, health professionals may be successful in persuading policymakers

that the traditional health education approach is insufficient. Among the ideas that are gaining currency are

linking social insurance contributions to body mass index in Austria and a tax on fatty foods in the UK

(European Foundation for the Improvement of Living and Working Conditions, 2004a).

24

On the other side of the equation is the reduction in the available of time available to Europeans to prepare a

healthy meal, resulting in a greater demand for ‘convenience foods’. The Kerry Group estimates that as

much as 15% of all food consumed daily in the US is now eaten in the car, a phenomenon known as

dashboard dining (Feeney, 2002, in European Foundation for the Improvement of Living and Working

Conditions, 2004a). The increase in the consumption of convenience foods has also resulted from food

producers targeting snack foods at teens and ‘tweens’. While some European countries may be slower to

follow these trends, nevertheless, greater time pressure on many people’s lives is increasing the demand for

convenience foods and ready meals, snacking and snatched meals, and eating out (European Foundation

for the Improvement of Living and Working Conditions, 2004a).

As a result of growing concerns about rising obesity levels and genetically modified foods, the ‘diet’ food

industry and the organics sub-sector are expected to show particularly strong growth. The diet-related food

and drink market is expected to grow by 3.1% in Europe and 3.6% in the US between 2006 and 2012 (just-

food, 2006). In global terms, the United States of America, United Kingdom and Germany are going to be the

key geographical areas of growth for the organic food market. Germany’s organic food market will accelerate

with the highest annual growth rate of 12% for the five-year period 2007-2011 (China CCM, 2007).

In addition, the beverages subsector is also expected to show strong growth in Europe, particularly for soft

drinks and bottled water, although demand for both beer and coffee within Western Europe is likely to

decrease (Canadean, 2007).

While the food and beverage sector is likely to continue to grow in the medium term, due to increased

demand driven by higher levels of disposable incomes of consumers, the industry needs to take into account

a number of challenges that lie ahead, namely, rising oil prices, greater uncertainty in global markets, the

diversifying needs of consumers and the relinquishing influence manufacturers have over the goods they

produce. A better understanding of these issues by company-owners and managers is required for the

sector to continue to be successful. For the European food and beverages industry to thrive in the future it

needs to become increasingly innovative, market-led and consumer-orientated. It also needs to ensure that

the image of the sector is positive and that Europeans companies are seen as dynamic, attractive to existing

and potential employees and valued by the wider public. In particular the sector needs high achieving and

innovative senior management and technical staff to drive the kind of positive change required to ensure

international competitiveness and a positive customer outlook. Table 2.7 outlines the strengths and

weaknesses of the sector, as well as the opportunities and threats it faces.

Table 2.7. SWOT Analysis of the Food and Beverages Sector

Strengths

• Food and beverages is a traditionally strong sector in the EU

• New developments in technology • Growth in niche markets such as natural foods

and convenience foods to meet consumer demands

• Positive working relationship with agricultural sector

• Developed quality/assurance systems

Weaknesses

• Weak investment in R&D compared to competitors • Increasing food scares (BSE, Avian flu) • Difficulties in recruitment and retention of high calibre

staff • Low level of investment in staff development • Lack of strategic management and development

skills

25

Opportunities

• New technological innovations • Expected growth in productivity • Consumer demands and quality controls likely

to encourage higher standards • Opportunities for growth as incomes rise in

Central and Eastern European countries • Further development of specialised, niche

markets • Increasing globalisation

Threats

• Strength of retail sector • WTO Agreements likely to lead to increased

exposure to international competition • Potential decline in demand for some products within

the domestic market • Rising oil prices likely to reduce profit margins • Increasing competition for land to grow bio fuels and

other food products resulting in increasing grain-based food prices

The European Monitoring Centre on Change (2006) indicates the role that the various stakeholders involved

in the sector need to play (see Table 2.8) if the European food and beverages sector is to develop and

compete effectively with manufacturers from newly emerging markets, including Brazil and China. It

highlights how European manufacturers need to work in partnership, with clearly defined roles and

responsibilities if they are to be successful.

Table 2.8. Roles and Responsibilities of Relevant Stakeholders for the Development of the Food and Beverage Sector

Player Action Multinational companies

• take the lead in the innovation process

• self-regulate on the issue of labelling through the creation of ‘platforms’, bringing together different actors

SMEs • exploit expert potential of niche products

• address succession crises

• self regulate on the issue of labelling through the creation of ‘platforms’, bringing together different actors

Trade unions • support and encourage innovation culture in companies

Regional authorities • support SMEs in realising export potential

• encourage networking among SMEs and between big players and SMEs

• facilitate access to ERDF and ESF

• organise information events addressing the succession issue in SMEs

Governments • encourage innovative culture and entrepreneurial spirit through the educational system

• explore further present eating habits taking into account lifestyle changes

• improve teaching about nutrition, food preparation and a healthy lifestyle in schools

Source: European Monitoring Centre on Change, 2006

2.6. Impact of these developments on employment and skill needs

In this section of the report we highlight how the developments outlined above will impact on employment

and related skill and training needs in the future.

Employment

Employment in the food and beverage sector in Europe is likely to continue to fall largely as a result of

increasing productivity. This will result in particular in a drop in employment opportunities for unskilled and

semi-skilled workers. (c.f. Simpson and Stalker, 2004).

26

As was shown earlier, many of those working in the food and beverages sector are unskilled or semi-skilled,

traditionally requiring little training to carry out their work effectively and efficiently. However in the future

additional training will be needed to ensure that such employees have the skills to comply with new

regulations, work with new technology and produce the type of goods that meet the increasingly diverse

needs of consumers.

Given the wide range of complex factors impacting on the competitiveness of the European food and

beverages sector it is particularly important that European companies have the technical, professional and

management skills to allow such companies to anticipate and adapt to changing demand and market

pressures, and to drive innovation.

Skill Needs

A recent study on the food processing sector in Ireland by Price Waterhouse Cooper (PWC) indicates what

the key skills needed in the sector in the future will be. (Table 2.9)

Table 2.9. Future skill needs in the European food manufacturing sector

Skill Sets Key Skills Trends in quantity and quality

of skill needs

R&D/ New product development (NPD) and Quality control skills

Food technology/science skills NPD commercialisation skills Product research skills Lab Technician skills New packaging design skills Quality control/auditing skills HACCP skills Sensory analysis/product tasting skills

Increasing numbers will be required due to growing demand for new product innovation with a growing demand for advanced technical competencies and a strong commercial focus

Processing skills Product management skills Production supervisory skills People management skills Operative skills (Existing technology, new processing and craft workers) Quality control skills Food safety skills Food hygiene skills World class manufacturing skills Total quality management skills Basic numeracy/literacy skills Production management skills

Reduced numbers but need for increasing efficiency and for greater competency in food quality and safety and in supervisory and production and people management skills.

Sales and marketing skills

Marketing skills Sales skills Branding skills Market research skills Market development skills Customer interface skills Language skills Negotiation skills Category management skills Strategic account management skills

Reducing numbers as retailers consolidate but need for stronger customer focus and technical appreciation of foodstuffs among sales and marketing staff

Support skills General management skills Finance skills Human resourcel skills Business planning skills IT skills Engineering skills

Reducing numbers due to rationalisation with a growing demand for people and change management skills

27

Training skills Change management skills Procurement skills Regulatory skills

Source: PWC, 2002

The PWC study also summarised the key skills gaps in that exist the food and beverages industry. (Table

2.10.)

Table 2.10. Key skills gaps in the food and beverages sector

Skill Sets Key Skill Needs

R&D/NPD/Quality Control Skills

Skills needed to commercialise NPDs Product Research/NPD Skills Operative Skills (existing technology) Operative Skills (new tech/process) Operative Skills (craft workers) Production Supervisory Skills

Processing Skills Operative Skills (existing technology) Operative Skills (new tech/process) Production Supervisory Skills Operative Skills (craft workers)

Sales and Marketing Skills Marketing Skills Language Skills Negotiation Skills Category Management Skills Product Research/NPD Skills

Support Skills Training Skills IT Skills (particularly those underpinning supply chain management and logistics processes)

Source: PWC, 2002

An Australian study also highlights the extent to which the key drivers of change will impact on skills within

each of the key sub-sectors. (Table 2.11)

Table 2.11. Impact of drivers of Change on skills in Key subsectors in the Food

Drivers Food Meat Seafood

Worker attraction and retention HIGH HIGH HIGH

Consumer and Customer demands MEDIUM MEDIUM HIGH

Competitiveness and productivity

demands

HIGH HIGH FAIR

Business compliance HIGH HIGH HIGH

Innovation HIGH MEDIUM MEDIUM

Globalisation HIGH HIGH HIGH

Source: Australian Agrifood Industry Skills Council, 2005

The Australian Report also highlights the relationship between the different drivers of change and how a

virtuous circle of positive development can be achieved.

28

Fig. 2.5. Relationship between drivers of change within the food and beverage sector-creating a virtuous circle

Source: Australian Agrifood Industry Skills Council, 2005

A key way of addressing these interrelated issues is through the development of a strong partnership

approach between the industry and the educational sector to support the development of advanced process

and product development R&D and management skills and to ensure that innovations are widely known and

disseminated across the sector.

Skill Shortages

Research carried out on the food and beverage sector in the UK in recent years indicates the extent of skills

gaps in the sector. As can be seen from Table 2.12 below, the skills that are seen to be deficient also tend to

be those that are central to performance of the job. For example, 52 per cent of establishments with skill

Skills Quality training & recognition; E-learning; Attraction & retention strategies; Flexible training strategies; Reviewed training funding model; Recognition of skills; Aging workforce.

Industry Image Pathways; Attraction & retention; Industry promotion Skills passports (Portability & multiskilling); Working conditions; Sharing ‘best practice’.

Business Compliance Environmental Management; OHS; Insurance Licensing; Food safety.

Business Management Consumer expectations; HR; Small business management; Investment in R&D; Leadership; Production costs; Globalisation; Product marketing; Supply chain; Networking; Innovation.

People

29

gaps amongst skilled trade occupations cite technical and practical skills as lacking and 54 per cent of

establishments with skill gaps amongst managers cite management skills as lacking (Improve, 2004).

Table 2.12. Extent of Skills Gaps reported by Food and Beverage Manufacturers (%)

Source: Improve, 2004

These findings indicate that sector-wide training for unskilled, semi-skilled workers, technical and

professional staff as well as managers, is needed to ensure that the sector remains viable. In addition, the

sector as a whole needs to become more ‘employee-friendly’, with efforts made to improve working

conditions, training opportunities and career paths, in order to increase the attractiveness of the sector to

potential employees.

A recent survey carried out among employers in the food and beverage sector in the UK indicated that skills

shortages among skilled operatives and professionals (Improve, 2005), are largely a result of unfavourable

working conditions. Further research carried out in Northern Ireland identified such conditions as:

• Unsociable hours;

• Need to work holidays;

• Can’t be a clock-watcher- you can’t leave work to complete the next day;

• Doesn’t suit people with young children or older dependents;

• Boredom in some routine work;

• Seen as a ‘white coat’ industry; and

• Often a cold and wet place to work with a bad smell, also heavy handling issues.

(Market Research Northern Ireland, 2006)

Training Needs

The dominance of SMEs in the food and beverage sector in Europe has resulted in reluctance on the part of

many firms to invest in training and skills development. Such firms view investment in training as more likely

Managers Admin Staff Skilled trades

Sales Machine operatives

Elementary operatives

Customer Handling Skills 42 40 49 66 32 29

Communication Skills 64 51 59 59 60 47

Problem Solving Skills 33 42 39 47 54 42

Team Working Skills 55 42 51 52 61 45

Technical and Practical Skills 28 33 52 43 45 35

Management Skills 54 37 39 28 11 40

General IT user skills 39 48 13 23 4 4

Numeracy Skills 15 23 26 31 23 19

Literacy Skills 20 21 31 20 14 25

IT professional skills 20 32 12 11 4 1

Foreign Language skills 4 4 6 4 9 4

Personal attributes 1 1 * * - 3

No particular skills difficulties 9 24 12 8 1 3

30

to reap benefits in the long term rather than the short term and as likely to result in demands for higher

wages. Given the demand to keep prices and thus costs low, maintaining the ‘status quo’ is often seen

therefore as the easier option.

The National Employer Survey in England identified some of the reasons manufacturers failed to put in place

adequate training for their staff. As can be seen in Table 2.13 factors related to the expense of training,

including lack of cover and funding for training. However, the primary reason cited, ‘lack of time for training’

indicates a lack of awareness about the need for, and the benefits of, training staff, in terms of future

business development, quality improvement and efficiency.

Table 2.13. Barriers to developing/maintaining a proficient team of staff

Multiple response %

Lack of time for training 58 Lack of cover for training 50 Lack of funding for training 49 Lack of suitable courses in the area 26 Unwillingness of staff to undertake training 25 Lack of suitable courses generally 22

High staff turnover 17 Other 2 Source: Improve, 2004

Nevertheless, improved working conditions, better pay and more structured career paths are required in the

future if the industry is to remain competitive and innovative. Training is therefore required both to react to

changing demands (e.g. new regulations) and to support a proactive and strategic response to changing

market and technological requirements and potential business opportunities.

The European Monitoring Centre on Change (2006) suggests that “support should be organised close to

manufacturers, i.e. at regional level. Regional authorities are best aware of the strengths and competitive

advantages of companies in their region. They can help bringing players together. Cooperation and

networking among business, for example through the establishment of consortia among SMEs in need of

financial support and advice for exporting, would help share the burden. Economic development agencies

have a role to play here as well. Regional authorities should also facilitate access to European Structural

Funds (ERDF and ESF) and other funding opportunities”.

2.7. Summary

The food and beverage sector is the largest manufacturing sector in Europe and remains highly important as

a source of employment and output as well as being a source of well being for its citizens. However,

increased competition, poor working conditions and more stringent regulations have had an impact on the

viability of the sector and have led to difficulties in the recruitment and retention of staff. While prospects for

the sector in the short to medium term are good, a number of threats highlight the need for investment in the

training and development of staff as well as for increased support for product development and innovation,

and for business development, across the sector from large multinationals to SMEs.

31

To effectively meet these challenges the European food and beverages sector needs to recognise that the

environment within which it will increasingly operate will be characterised by:

• A greater degree of market liberalisation

• Higher levels of food regulation

• Greater intensity of competition

• More consolidation across all sectors

• Market-led rather than production-driven

• Increasing sophistication of both trade buyers and consumers

• High levels of technology

• More demanding and greater fragmentation among consumers

(PWC, 2002)

To respond effectively to these changes managerial staff, skilled operatives and professionals, R&D and

technical staff are all in need of adequate training and support. The role played by regional authorities and

national training bodies in helping companies to respond to these pressures will be vital for the development

of the sector as a whole throughout Europe.

32

3. STATISTICAL CHARACTERISTICS OF THE SECTOR

3.1. Introduction

This chapter provides a short overview of the sector of manufacture of food products and beverages. It

covers the main aspects related to the FB sector enterprises, employment and performance indicators. The

analysis was performed on the basis of statistical data specially developed for the study. In addition, the

analysis used some secondary data, including studies, surveys and other publicly available information

about the FB sector and the Lithuanian economic development. Admittedly, in certain cases (due to little

statistics) conclusions and summaries are provided only on sector level.

3.2. Briefly about the Sector of Manufacture of Food Products and Beverages

The sector of manufacture of food products and beverages is different from the other sectors of

manufacturing because of the huge direct impact of consumers upon its production. Moreover, food products

are difficult (if ever possible) to patent; new products stay in the market for a short period of time (until

analogous products are offered) and therefore their value added is small as compared to the other products

of manufacturing. The sector is subject to regulation by the Lithuanian Agricultural and Food Products

Market Regulation Agency. The sector is closely linked to the sector of agriculture, hunting, forestry and

fishing, which is the supplier of raw material, and the retail trade sector.

On the basis of the information available, internal and external factors affecting the future development of the

FB sector include the following:

Internal factors:

• renewal and investment;

• experience in searching for new markets, niches and partners;

• increasing competition among exporters and decreasing dependency on one market;

• labour force structural and qualitative changes;

• old technologies and poor work organisation;

• insufficient pace of creation and implementation of innovations;

• insufficiently effective activities of small and medium-sized businesses;

• change in household consumption patterns;

External factors:

• presence of a favourable market;

• market globalisation;

• foreign direct investment promoting knowledge and developing export channels;

• transfer of production to the countries with smaller labour costs;

• unfavourable market trends in energy resources.

The SWOT analysis of the Lithuanian sector of manufacture of food products and beverages is provided in

Annex 1.

33

3.3. Enterprises

Distribution of enterprises by sub-sectors and size. According to preliminary data of 2007, the Lithuanian

sector of manufacture of food products and beverages had 1,094 enterprises. Out of that number, 47 per

cent of enterprises specialised in the production of food products, 23 per cent focused on production,

processing and preservation of meat and meat products, whereas 11 per cent were involved in the

production of beverages. The remaining enterprises (constituting one fifth of the total number) carried out

activities in the other six sub-sectors. The sector was predominated by very small (having up to 9

employees) and small (from 10 to 49 employees) enterprises, making up 80 per cent of the total number of

the sector enterprises. The same trend was observed on the European scale. The Lithuanian structure of the

FB sector and the number of enterprises operating in it is presented in Table 3.1.

Table 3.1. Structure of the Sector of Manufacture of Food Products and Beverages, 2007

Enterprises by Number of Employees Total Activities under NACE

Up to 9 From 10 to 49

From 50 to 249

From 250

Production, processing and preserving of meat and meat products (15.1) 119 80 36 11 246

Production, processing and preserving of fish and fish products (15.2) 37 14 11 5 67

Production, processing and preserving of fruit, berries and vegetables (15.3) 20 10 5 - 35

Manufacture of vegetable and animal oils and fats (15.4) 4 4 - - 8

Manufacture of dairy products (15.5) 11 8 7 6 32

Manufacture of grain mill products, starches and starch products (15.6) 31 21 6 1 59

Manufacture of prepared animal feeds (15.7) 6 6 6 0 18

Manufacture of other food products (15.8) 243 179 81 11 514

Manufacture of beverages (15.9) 59 35 15 6 115

Total 530 357 167 40 1094

Change in the number of enterprises in the sector of manufacture of food products and beverages. From

2003 to 2007, the number of enterprises in the sector of manufacture of food products and beverages

decreased by almost one third. Such reduction is observed in almost all the sub-sectors (see Table 3.2).

Table 3.2. Change in Number of Enterprises in the Sector of Manufacture of Food Products and Beverages

Number of Enterprises Sub-sector

2003 2004 2005 2006 Forecast for 2007

Meat (15.1) 356 345 270 265 246

Fish (15.2) 89 77 71 70 67

Fruit and vegetables (15.3) 36 45 42 35 35

Oils and fats (15.4) 13 12 9 8 8

Diary products (15.5) 54 38 34 32 32

Grain (15.6) 93 86 71 66 59

Feeds (15.7) 26 22 20 19 18

Other products (15.8) 707 644 598 554 514

Beverages (15.9) 139 131 127 121 115

Total 1513 1395 1242 1170 1094

34

During the period under review, the sub-sectors of meat, other products and diary products experienced the

fastest reduction in the number of very small (up to 9 employees) and small (from 10 to 49 employees)

enterprises. The number of big enterprises (250 and more employees) decreased in the sub-sectors of dairy

products and animal feeds. In contrast, the number of these enterprises went up in the sub-sectors of meat,

fish and other products.

Geographical distribution of enterprises in Lithuania. Approximately 40 per cent of the overall number of

sector enterprises operate Kaunas and Vilnius counties. The same share of enterprises is in Klaipeda,

Panevezys and Siauliai counties. The distribution of the sector companies in other counties range from 3 to 6

per cent (Fig. 3.1).

Fig. 3.1. Geographical Distribution of Enterprises operating in the Sector of Manufacture of Food Products and Beverages by

Counties in 2007

3%

6%

13%

4% 4%5%

12%

24%

12%

17%

0%

5%

10%

15%

20%

25%

Alytus

Kauna

s

Klaiped

a

Marijampo

le

Panev

ezys

Siaulia

i

Taurag

eTels

iai

Utena

Vilnius

3.4. Employment in the Sector

Distribution of employees by sub-sectors. According to the preliminary of 2007, the sector employed 51,700

people. They account for more than 3 per cent of the total number of employees in the overall Lithuanian

economy. With regard to the number of employees, the FB sector is one of the richest among the branches

of manufacturing (constituting more than 19 per cent of all the employed in manufacturing). While looking at

the number of staff in sub-sectors, the lion’s share is among manufacturers of other food products

(constituting about 35 per cent of all the sector employees). Admittedly, the manufacture of other food

products has the highest number of employees in the other EU member states. During the period of five

years (2003 – 2007), the number of workers in the FB sector was fluctuating. From 2003 to 2005, their

number dropped and from 2005 to 2007 it was increasing yet did not reached the level of 2003 (see Table

3.3). The situation in the EU is as follows: in 2003 and 2004 the number of staff decreased by 4.9 per cent

and in 2005, by 1.5 per cent. During the reporting period, the number of employees in very small and small

enterprises dropped in Lithuania. The number of the employed was going up in large enterprises operating in

the sub-sectors of meat, fish, grain and other food products, whereas large companies working in the sub-

sectors of dairy products, animal feeds and beverages experienced a loss of staff. Noteworthy, the number

of employees in large meat sub-sector enterprises doubled during the period under review (Fig. 3.2).

35

Table 3.3. Change in the Number of Employees in the Sector of Manufacture of Food Products and Beverages

Number of Employees Sub-sector

2003 2004 2005 2006 2007 Forecast

Meat (15.1) 9596 9069 9134 9186 9983

Fish (15.2) 4114 4104 4071 4829 4742

Fruit and vegetables (15.3) 694 704 832 752 854

Oils and fats (15.4) 161 99 84 92 89

Diary products (15.5) 11844 10207 9708 9806 9486

Grain (15.6) 1720 1549 1564 1132 1265

Feeds (15.7) 1923 1840 1914 1851 1636

Other products (15.8) 18522 18401 16682 17851 18342

Beverages (15.9) 5758 6327 5837 5609 5258

Total 54332 52300 49826 51108 51655

Fig. 3.2. Change in the Number of Employees by Size of Enterprise in the Most Numerous FB Sub-Sectors

ME DP

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

2003 2004 2005 2006 2007 2003 2004 2005 2006 2007

up to 9 employees 10-49 employees 50-249 employees 250 employees and more

OFP BE

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

2003 2004 2005 2006 2007 2003 2004 2005 2006 2007

up to 9 employees 10-49 employees 50-249 employees 250 employees and more

36

Supply and demand for employees2 (unemployed and vacant posts). From 2003 to 2006, the number of the

registered employed in Lithuania went down. The supply of labour was decreasing in all the sub-sectors of

manufacture of food products and beverages. The preliminary data of 2007 show the same trend.

Registered vacancies in the FB sectors account for 4 per cent of the total demand of labour in Lithuania. The

biggest share of demand is for vacant posts created by the ME and OFP sub-sectors. In 2003 – 2006, the

demand for labour decreased. The biggest reduction was seen in the FI and FV sub-sectors and the biggest

growth was registered in the GR and AF sub-sectors.

Fig. 3.3. Number of Unemployed and Vacant Posts in the Sub-sectors of Meat and Other Food Products

ME OFP

0

500

1000

1500

2000

2500

3000

3500

4000

2003 2004 2005 2006 2007forecast

2003 2004 2005 2006 2007forecast

Number of unemployed Number of vacancies

According to the preliminary data of 2007, the tension level (the ratio between the number of vacancies and

the number of the unemployed) in the sector of manufacture of food products and beverages was less than 1

and therefore smaller than the relevant national indicator (standing at accordingly 0.8 and 0.9). This means

that the quantitative supply of employees in the sector is lightly exceeding the demand for them. Noteworthy,

the tension level among different sub-sectors is not the same. For example, supply is in conformity with

demand in the beverages sub-sector, whereas in the sub-sector of animal feeds, the level of supply is

smaller than demand and in the sub-sectors of meat, diary products, fish and others the level of supply

surpasses demand. (See Fig. 3.4).

2 Source: data of the Lithuanian Labour Exchange specially developed for the study

37

Fig. 3.4. Tension Level (Ratio between Occupation Posts and Number of Unemployed) in Sub-Sectors of Meat, Animal Feed, Other

Food Products and Beverages

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2004 2005 2006 2007 forecast

Nationally

ME

AF

OFP

BE

Analysis of the tension level trends by groups of occupation posts shows supply exceeding demand in the

groups of professionals, associate professionals, technicians, manufacturers and other workers, yet with

regard to separate occupation posts, the trend is quite the reverse. For example, in the group of

manufacturers, the demand for ‘plant and machine operators’ and ‘supervisors of equipment’ surpasses

supply three times, whereas in the group of professionals, the number of vacancies among ‘IT specialists’

and ‘quality assurance specialists’ exceeds the number of the registered unemployed 6 and 4 times

accordingly. The demand for administrative staff exceeds the supply for them. The biggest shortage is of ‘the

employees of personnel division’.

Work permits issued to foreigners in Lithuania3. According to the data we have, the number of work permits

issued to foreigners in Lithuania is constantly increasing. From 2005 to 2007, the number grew 3.5 times.

This trend is characteristic of all the national economic sectors, including the sector of manufacture of food

products and beverages. According to the preliminary data of 2007, work permits issued to foreigners for

employment in the FB sector was 316, i.e. two times more than in the year 2005. Out of that number,

qualified workers accounted for as much as 90 per cent, which is 10 per cent more than in 2005.

3.5. Performance Indicators

Turnover. According to official data, the turnover in the FB sector has gone up in the recent five years (see

Table 3.4). According to the preliminary data of 2007, the biggest turnover was in the sub-sector of dairy

products and other food products, followed by the meat and beverages sub-sector. Admittedly, from 2003 to

2004 the sector turnover was shrinking to go up again since 2005. During the period under review, the

biggest growth in turnover was experienced in the sub-sectors of fruit and vegetables, meat, fish and

beverages. The FB sub-sectors differ in terms of growth/reduction in turnover experienced by them. In 2003-

2007, the turnover of enterprises operating in the sub-sectors of meat, fruit and vegetables was constantly

3 Source: data of the Lithuanian Labour Exchange specially developed for the study

38

increasing. The annual growth of turnover in the sub-sectors of grain and fats and oils is replaced by the

reduction of it. Since 2005, the majority of the sector enterprises have been enjoying the turnover growth.

Table 3.4. Change of Turnover in the Sector of Manufacture of Food Products and Beverages (thous. LTL)

Turnover Sub-sector

2003 2004 2005 2006 2007 forecast

Meat (15.1) 793425 833727 887272 1125110 1432547

Fish (15.2) 458478 455517 454329 588751 686462

Fruit and vegetables (15.3)

47433 87238 101924 102804 103445

Oils and fats (15.4) 30825 44363 30247 33916 29546

Diary products (15.5) 1619401 1338123 1329619 1513506 1758630

Grain (15.6) 205118 156621 173836 168990 216998

Feeds (15.7) 569182 613531 645101 643398 602069

Other products (15.8) 1550674 1290067 1262495 1508418 1679167

Beverages (15.9) 788646 1013732 1003327 1051177 1159319

Total 6063183 5832919 5888150 6736070 7668183

Productivity (Turnover/Number of Employees). Table 3.5 shows that during the period of 2003-2007, the

level of productivity grew in all the FB sub-sectors. The biggest growth was observed in the sub-sectors of

fruit and vegetables, meat, oils and fats, and beverages.

Table 3.5. Productivity (Turnover/Number of Employees) Change in the Sector of Manufacture of Food Products and Beverage

(thous. LTL)

Productivity (Turnover/Number of Employees) Change (thous. LTL) Sub-sector

2003 2004 2005 2006 2007 forecast

Meat (15.1) 83 92 97 122 143

Fish (15.2) 111 111 112 122 145

Fruit and vegetables (15.3)

68 124 123 137 121

Oils and fats (15.4) 191 448 360 369 332

Diary products (15.5) 137 131 137 154 185

Grain (15.6) 119 101 111 149 172

Feeds (15.7) 296 333 337 348 368

Other products (15.8) 84 70 76 85 92

Beverages (15.9) 137 160 172 187 220

Earnings. The biggest average monthly gross 4 earnings were offered in the sub-sectors of diary products,

animal feeds, beverages, and fruit and vegetables (Fig. 3.5). Although earnings were going up in all the sub-

sectors, they still remained lower than the national average. As compared to the other branches of

manufacture, earnings offered to the FB sector staff are among the lowest. According to preliminary data,

4 pre-tax earnings.

39

smaller earnings are only in the groups of ‘manufacture of textile and textile products’, ‘manufacture of

leather and leather products’ and ‘manufacture of wood and wood products’.

Fig. 3.5. Change in Average Gross Monthly Earnings in Sub-Sectors of Beverages, Animal Feeds, Dairy Products and Fruit and

Vegetables

0

500

1000

1500

2000

2500

2003 2004 2005 2006 2007 forecast

FV

DP

AF

BE

Country

Created gross value added (further referred to as the GVA). According to the data we have, the value-added

created by the sector went up my slightly more than 1.5 times during the five year period. According to the

preliminary data of 2007, it accounted for 3.7 per cent of the national GVA. Although with regard to the GVA,

the sector of manufacture of food products and beverages is the leading branch of manufacturing, yet its

production rate (value-added per hour of actual work), albeit exceeding the national average, is lagging

behind many other branches.

Export and import. On the national level, the foreign trade balance was negative and from 2003 to 2006 it

increased 1.8 times. Although the volume of import in the FB sector was increasing faster than that of export,

the foreign trade balance remained positive for several years in succession. With regard to the volume of

export, the FB sector is one the leaders among the branches of manufacturing. Generally speaking, the FB

sector is sufficiently competitive on the international scale.

3.6. Development Trends

Changes in the number of employees operating in the FB sector, the number of staff employed by them, the

rate of productivity, turnover, earnings, the share of GVA and future forecasts are provided in Annex 2.

The forecasts were made by using regressive and autoregressive models, examining the overall trends of

development of the Lithuanian economy and historical statistics. The findings obtained give ground for

optimistic forecasts, i.e. that he turnover in the majority of sector enterprises will continue to grow (with the

exception of oils, fats and grain) but the rate of growth is likely to slow down. One of the reasons for that is

insufficient labour force resources. The volume of production should be increased by resorting to some other

sources, for example, increasing the labour productivity, which is currently quite low, and applying new

technologies. The average monthly gross earnings should be growing, offering more attractive employment

conditions in the sector enterprises.

40

3.7. Summary

• The sector of manufacture of food products and beverages is different from the other sectors of

manufacturing because of the huge direct impact of consumers upon its production. New products

stay in the market for a short period of time (until analogous products are offered) and therefore their

value added is small as compared to the other products of manufacturing.

• In the future, the sector of manufacture of food products and beverages will be subject to the

following internal factors: renewal and investment; experience in searching for new markets, niches

and partners; increasing competition among exporters and decreasing dependency on one market;

labour force structural and qualitative changes; old technologies and poor work organisation;

insufficient pace of creation and implementation of innovations; insufficiently effective activities of

small and medium-sized businesses; and change in household consumption patterns.

• The sector development will depend on the following external factors: presence of a favourable

market; market globalisation; foreign direct investment promoting knowledge and developing export

channels; transfer of production to the countries with smaller labour costs; unfavourable market

trends in energy resources.

• According to preliminary data of 2007, the Lithuanian sector of manufacture of food products and

beverages had 1,094 enterprises. Out of that number, 47 per cent of enterprises specialised in the

production of food products, 23 per cent focused on production, processing and preservation of meat

and meat products, whereas 11 per cent were involved in the production of beverages. The

remaining enterprises (constituting one fifth of the total number) carried out activities in the other six

sub-sectors. The sector was predominated by very small (having up to 9 employees) and small (from

10 to 49 employees) enterprises, making up 80 per cent of the total number of the sector

enterprises.

• From 2003 to 2007, the number of enterprises in the sector of manufacture of food products and

beverages decreased by almost one third.

• Approximately 40 per cent of the overall number of sector enterprises operate Kaunas and Vilnius

counties. The same share of enterprises is in Klaipeda, Panevezys and Siauliai counties.

• According to the preliminary of 2007, the sector employed 51,700 people. They account for more

than 3 per cent of the total number of employees in the overall Lithuanian economy. Employees in

the sub-sectors of other food products, meat and diary products made up 70 per cent of the total

number of the sector employees. During the period of five years (in 2003 – 2007) the number of staff

in very small and small enterprises was dropping. The number of the employed was going up in

large enterprises operating in the sub-sectors of meat, fish, grain and other food products, whereas

large companies working in the sub-sectors of dairy products, animal feeds and beverages

experienced a loss of staff.

• In 2003 – 2006, the supply of labour was decreasing in all the sub-sectors of the sector of

manufacture of food products and beverages.

• According to the preliminary data of 2007, work permits issued to foreigners for employment in the

FB sector was 316, i.e. two times more than in the year 2005. Out of that number, qualified workers

accounted for as much as 90 per cent, which is 10 per cent more than in 2005.

41

• According to official data, the turnover in the FB sector has gone up in the recent five years.

According to the preliminary data of 2007, the biggest turnover was in the sub-sector of dairy

products and other food products, followed by the meat and beverages sub-sector.

• During the period of 2003-2007, the level of productivity grew in all the FB sub-sectors. The biggest

growth was observed in the sub-sectors of fruit and vegetables, meat, oils and fats, and beverages.

• During the recent five years earnings have been going up in all the sub-sectors, yet they still

remained lower than the national average. As compared to the other branches of manufacture,

earnings offered to the FB sector staff are among the lowest.

• The value-added created by the sector went up my slightly more than 1.5 times during the five year

period.

• With regard to the volume of export, the FB sector is one the leaders among the branches of

manufacturing. Generally speaking, the FB sector is sufficiently competitive on the international

scale.

42

4. CHARACTERISTICS OF SECTOR BASED ON SURVEY FINDINGS

4.1. Introduction

This chapter will describe the sector of manufacture of food products and beverages on the basis of the

social survey findings. In addition, it will analyse the trends of the FB enterprise activities and demand for

staff in the sector.

The sample for the postal questionnaire survey was selected on the basis of the data taken from the Registry

of Economic Entities, as well as by looking at the type of the prevailing economic activity (according to the

statistical classification NACE) and the enterprise size. A postal questionnaire survey was performed. All the

participants of the postal questionnaire survey were asked to return the filled out questionnaires after several

weeks. When the questionnaires were sent out to the respondents, telephone calls were made to remind

them about the deadline for sending the questionnaires back. In this way, a sufficient level of response was

secured. The level of response was 25 per cent. The presumption was made that the biggest impact on the

sector is made by medium-sized and large companies. The data about the distribution of the response level

by sub-sectors and the enterprise size are presented in Table 4.1..

Table 4.1. Distribution of Response Level by Sub-sectors and Size of Enterprise

FB sector

Enterprises by Number of Employees Number of enterprises which were sent a questionnaire

Response level %

Up to 9 457 10%

From 10 to 49 349 30%

From 50 to 249 164 51%

250 and more 42 56%

Total 1012 25%

Interviews were conducted with the leading enterprises. The total number of the FB sector enterprises

interviewed was 12.

4.2. Performance indicators

Characteristics of enterprises. According to the social survey findings, the sector is predominated by

‘independent enterprises’ (accounting for 95 per cent of the total). The majority of the sector enterprises are

those of Lithuanian capital (making up 94 per cent). The share of foreign capital companies is bigger in the

beverages sub-sector, where they, along with join venture companies, account for 20 per cent of the sub-

sector enterprises.

The lion’s share of the sector enterprises started their operation before 2001, including more than one third

of enterprises which began their activities between 1991 and 1995 and another third of companies which

became operative between 1996 and 2000. One fifth of enterprises have started their operations since 2001

(Fig. 4.1).

43

Fig. 4.1. Start of Enterprise Operation in the Sector of Manufacture of Food Products and Beverages According to Respondents (per

cent)

1036

3420

before 1990 from 1991 to 1995 from 1996 to 2000 since 2001

Turnover change. According to two thirds of the respondents, turnover was increasing in 2005, 2006 and

2007. The majority of them (65 per cent) predict that a similar trend will remain in 2008. Less optimistic about

the future growth in turnover are enterprises operating in the sub-sectors of diary products and animal feeds.

Provision of new products/services. According to the respondents, new products/services were offered by 80

per cent of the sector enterprises in the last two years. Admittedly, fewer new products and services were

provided by the sub-sectors of diary products and grain (accounting for 40 and 30 per cent respectively) .

Competition. The majority of the respondents mentioned high competition in the market. Only one

respondent said that competition in local market was medium. All of them agreed that the international

competition was huge.

Export. During the interview, the respondents were asked to specify the approximate amount of share

constituting by the export of products/services per year. The findings reveal that enterprises export about 15-

30 per cent of their production.

Business impediments. According to the respondents, the biggest business impediments in the FB sector is

‘high competition’, the shortage of ‘qualified workers’ or simply ‘workers’ and the ‘tax system’. Smaller

business obstacles are ‘legal regulation’, ‘lack of staff competences’, ‘ecological requirements’.

Use of information technologies (further referred to as the IT). The data about the information technologies

currently used or planned to be used in the future are provided in Fig. 4.2. The majority of companies in all

the sub-sectors are using e-banking and accounting software and an electronic system of manufacturing

planning. Fewer enterprises also take electronic orders by internet. The prevailing information technologies

to be used in the FB sector in the future include the electronic system of manufacturing planning and

accounting system as well as technologies of taking orders by internet. Less demand is for the customer

relationship management.

44

Fig. 4.2. Distribution of Responses by the Respondents about IT in Use and to be Used

0% 10% 20% 30% 40% 50% 60% 70%

Electronic manufacturing planning and accounting system

CRM

E-banking

E-trade

E-sales

OtherUsing

Planning to use

Use of modern technologies. Modern technologies are used by almost 55 per cent of the FB enterprises, and

64 per cent of them are planning to use modern technologies in the future. On the basis of this information it

could be inferred that modern technologies will be used in the future. The most widespread technologies

used in the FB sector include modern dispensing and packing machines and automation of technological

processes. The modern technologies which are planned to be used in the future include modern dispensing

and packaging machines, modern technological equipment and automation technologies of technological

processes. The data about the modern technologies which are currently used and planned to be applied in

the future are presented in Fig. 4.3. The respondents were asked to assess the impact of modern

technologies on the number of employees (managers, professionals/technicians, manufacturers and other

staff) in their enterprises. The majority of the respondents (from 57 to 88 per cent) said that the number of

managers, specialists/technicians and other workers will remain the same. There was a difference in the

opinion about the number of manufacturers. 45 per cent of the respondents said their number will not change

and 41 per cent believed that their number will decrease. Several respondents thought that the number of

manufacturers may increase.

Fig. 4.3. Distribution of Answers given by Respondents about Modern Technologies used or planned to be used

0% 10% 20% 30% 40%

Modern technological equipment

Modern laboratory equipment

Automation of technological process

Modern dispensing and packaging machines

Advanced technologies (e.g. membrane filters)

Environmental technologies

Effective waste management technologies

Modern waste disposal technologies

Other

Using

Planning to use

45

4.3. Employees

Employees. According to statistical data specially developed for the study, the sector of manufacture of food

products and beverages employed around 51,700 employees. The social survey reveals, that the share of

part-time workers in the overall structure of employees in the FB sector makes up approximately 3 per cent

and the share of women is 58 per cent. The age structure in the sector is as follows: 15 per cent of

employees are up to 30 years of age, 33 per cent are 30 - 40 years old, 34 per cent are 41 – 50 years old

and 18 per cent are aged 50 and above. There is no record showing the difference in the age structure of

employees by the size of enterprise and sectors. As compared to the trends in Europe (for more details see

Chapter 2.4), the Lithuanian sector enterprises have fewer young (aged up to 30) and part-time employees.

According to the findings of the social survey, the highest number of employees in the Lithuanian FB sector

is among the groups of manufacturers and other workers. The distribution of employees by groups of

occupation posts is shown in Fig. 4.4.

Fig. 4.4. Distribution of Employees by Groups of Occupation Posts

5% 6% 2% 49%9% 29%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

management

administration

professionals

associate professionals and technicians

manufacturers

other workers

Skills of employees. The participants of the postal questionnaire survey were asked to assess the conformity

of competence which their staff had to the requirements set for the occupation post as well as mention the

skills which their employees lacked most of all. The majority of the respondents said that the competence of

their staff meet the requirements set for the occupation post. Admittedly, the competence of top managers,

administration and professionals are more in line with the requirements set for their job than that of

technicians, manufacturers and other workers. According to the respondents, all the sector employees lack

foreign language and work organisation skills. In addition, professionals require work planning and control as

well as computer literacy skills. They also often mentioned the lack of quality management and

manufacturing management skills. The respondents said that qualified employees lack responsibility, duty

and willingness to learn, whereas professions need innovation and management skills.

Training of employees. 20 per cent of the respondents from the sector of manufacture of food products and

beverages said they had a written employee training plan. In 2005-2006, about 40 per cent of the sector

enterprises allocated a share of their working capital to employee training. Three thirds of them spend 1 per

cent of their turnover on training and one fourth of companies allocated more than 1 per cent of their working

capital on employee training. Two thirds of the respondents said that they mostly provide on-the-job training

46

and slightly less than one third (29 per cent) send their staff for training in public and private training

establishments.

Turnover of staff. The turnover of staff in the FB sector is rather high, accounting for 43 per cent per year.

The interviews showed that the main reasons for it are emigration, new technologies, working conditions

(seasonality of work) and personal features (non-compliance with work discipline). Table 4.4 shows that in

2007, the biggest turnover of staff was in the groups of manufacturers and other workers and two times

smaller associate professionals and technicians. The smallest turnover was observed among managers.

Table 4.4. Turnover of Staff in the Sector of Manufacture of Food Products and Beverages by Groups of Occupation Posts

Groups of Occupation Posts Change

Top management 9%

Administration 14%

Professionals 15%

Associate professionals and technicians

25%

Manufacturers 51%

Other workers 51%

Shortage of employees. The findings of the postal questionnaire survey and interviews showed that different

sub-sectors had difficulties in finding different groups of employees. For example, ME, FI, GR, AF and OFP

sub-sectors struggled to find manufacturers, the FV sub-sector had problems of finding professionals and the

DP sub-sector mostly lacked associate professionals and technicians (see table 4.5). On the overall sector

level, the groups of employees which are most difficult to find are manufacturers and other workers, whereas

professionals are less of an issue. Asked to mention the main difficulties in searching for the right

employees, the respondents mentioned the shortage of labour force and lack of qualification. They also

mentioned personal character features of employees (for example, unwillingness to work, alcoholism or

dishonesty).

Table 4.5. The Most Difficult to Find Employees by Occupation, 2007

ME FP FV

Manufacturers (1) Meat cutters Butchers

Manufacturers (1) Producers and food products Plant and machine operators

Professionals (1) Food technologists Quality assurance specialists

Professionals (2) Food technologists

Professionals (2) Food technologists

Manufacturers (2) Fruit and vegetable processors

Other workers (3) Drivers

Other workers (3) Drivers

Other workers (3) Welders

DP GR AF

Associate professionals and technicians (1) Mechanics

Manufacturers (1) Production foremen Plant and machine operators

Manufacturers (1) Plant and machine operators

Other workers (2) Drivers

Other workers (2) Metal workers

Professionals (1) Food technologists

47

Manufacturers (3) Production foremen Plant and machine operators

Professionals (3) Food technologists

Other workers (1) Drivers

BE OFP

Other workers (1) Drivers Construction workers

Manufacturers (1) Confectioners Bakers Cooks

Manufacturers (2) Plant and machine operators Beverage producers

Professionals (2) Food technologists Marketing, supply and sales professionals

Professionals (3) Beverage technologists

Other workers (3) Drivers Metal workers

4.4. Forecast of Demand for Employees in the Future

The forecast of the future demand for employees in the FB sector has been made by looking at the sector

development and the turnover of staff. While examining the change of employees in the sector, the following

two reasons were considered:

• a number of employees who leave their occupation posts also leave the labour market (e.g. due to

retirement). The presumption was made that the average annual number of such employees is one

tenth of the employees aged 55 or above. According to the Population Employment Survey, the

manufacturing, which includes the sector of manufacture of food products and beverages, ad 10.1

per cent of such employees in 20065. Therefore, it could be inferred that 1 per cent of employees in

each of the occupation groups irreversibly leave the labour market;

• other employees stay in the labour market. Therefore, they have only two options: either get

employed in another company and remain in the sector or move to another economic sector. The

latter number of employees is estimated on the basis of two presumptions: (1) the share of

employees leaving the sector is directly proportionate to the intensity of staff turnover; (2) if workers

from a certain group of occupation change their employment on average every year, the probability

that they will leave the sector when moving to another job stands at 50 per cent.

The forecast of future demand for employees, developed on the basis of the analysis of social survey

findings, is provided in Table 4.6.

Table 4.6. Demand for Employees in FB Sector Groups of Occupations Number of

Employees in 2006

Development in 5 Years’ Time

Annual Change

Leaving Sector in 5 Years’ Time

Need for New Employees in 5 Years’ Time

Need for New Employees in 1 Year Time

Top management 2213 -65 9% 149 84 20

Administration 2973 -51 14% 283 232 50

Professionals 4277 142 15% 437 579 120

Associate professionals and 1182 74 25% 236 310 60

5 Source: data of the Statistics Department specially prepared for the study.

48

technicians

Manufacturers 23520 348 51% 16170 16518 3300

Other workers 13672 46 51% 9398 9444 1900

Total 47837 494

4.5. Summary

• The sector of manufacture of food products and beverages is predominated by ‘independent

enterprises’ (accounting for 95 per cent of the total). The majority of the sector enterprises are those

of Lithuanian capital (making up 94 per cent). The share of foreign capital companies is bigger in the

beverages sub-sector, where they, along with join venture companies, account for 20 per cent of the

sub-sector enterprises.

• new products/services were offered by 80 per cent of the sector enterprises in the last two years.

Admittedly, fewer new products and services were provided by the sub-sectors of diary products and

grain.

• The local and international competition is huge.

• The biggest business impediments in the FB sector is ‘high competition’, the shortage of ‘qualified

workers’ or simply ‘workers’ and the ‘tax system’.

• The majority of companies in all the sub-sectors are using e-banking and accounting software and

an electronic system of manufacturing planning. Fewer enterprises also take electronic orders by

internet. The prevailing information technologies to be used in the FB sector in the future include the

electronic system of manufacturing planning and accounting system as well as technologies of

taking orders by internet.

• Modern technologies are used by almost 55 per cent of the FB enterprises, and 64 per cent of them

are planning to use modern technologies in the future. Modern technologies will also be used in the

future. The majority of the respondents believe that the use of modern technologies will not affect the

number of managers, specialists/technicians and other workers.

• The sector employs around 51,700 employees. The share of part-time workers in the overall

structure of employees in the FB sector makes up approximately 3 per cent and the share of women

is 58 per cent.

• The sector employees lack foreign language and work organisation skills. In addition, professionals

require work planning and control as well as computer literacy skills.

• The turnover of staff in the FB sector is rather high, accounting for 43 per cent per year. The biggest

turnover of staff is in the groups of manufacturers and other workers.

49

5. SUPPLY OF EMPLOYEES

5.1. Introduction

This chapter will provide a short overview of education, groups of occupation posts as well as the trends of

employee supply in the sector of manufacture of food products and beverages. The supply of employees is

understood as the outcome of education, i.e. the type of qualifications and the number of employees trained.

The main data include information about the entrance level, number of graduates, the level of education

obtained and the type of qualification acquired. The analysis was performed on the basis of statistical data

specially developed for the study, publicly available information about study/training programmes and

surveys of vocational schools about the number of graduates employed.

5.2. Education and Job Groups

The best way to describe training achievements is to look at qualification6 acquired. Seeking to obtain a

certain qualification, it is essential to have obtained a basic level of education7. The levels of education in

Lithuania are determined by the structure of the system of education. It consists of primary, basic,

secondary, post-secondary (the latter is practically no longer applied) and higher education. Pursuant to the

Law Vocational Education and Training (new version)8, qualification is based on competence9, which include

knowledge, skills and values. Qualification and separate competences are laid down in certain documents

provided for in the Law on Vocational Education and Training and the Law on Higher Education of the

Republic of Lithuania10. Qualification is the outcome of formal education11 or other educational attainment.

According to their content, training/study programmes are grouped into different areas of education

(‘Classification of the Lithuanian Education’). Vocational education and training may be primary and

continuing. The purpose of primary vocational education and training is to obtain qualification and the

purpose of continuing training is to upgrade the existing qualification or obtain a new one. The study

examines one part of the continuous vocational education and training: training of the unemployed.

Presently, primary vocational training and education is carried out pursuant to the following four-stage

programmes:

Stage I. The training programmes of this stage only admit persons without basic education.

The training duration is two to three years if basic education is pursued. After completing the

training programmes, the graduates are given a qualification certificate.

Stage II: The training programmes of this stage admit persons with basic education, seeking

to acquire vocational qualification. The training duration is two years. After completing the

training programmes, the graduates are given a diploma of vocational training and education.

6 Qualification: ability and right to engage in a certain professional activity, as recognised according to a procedure

prescribed in law or in legislative acts of the Government or its authorised institution. Republic of Lithuania Law on

Education. 7 Education level: competence, knowledge, skills, abilities and values, demonstrating a particular level of personal

development, attainment thereof is recognised according to a procedure prescribed by the Government or its authorised

institution. Republic of Lithuania Law on Education. 8 A new version of the law was adopted in 2007 and is effective of 1 January 2008. 9 Competence: ability to perform a certain activity on the basis of the entirety of acquired knowledge, skills, abilities

and values. Republic of Lithuania Law on Education. 10 Republic of Lithuania Law on Education (new version effective as of 28 June 2003), Article 39, Paragraph 3.

11 Formal education: education implemented according to the programmes approved and registered in accordance with

a procedure prescribed by legal acts, the completion of which results in the attainment of a primary, basic, secondary,

post-secondary or higher education level and/or a qualification. Republic of Lithuania Law on Education.

50

Stage III: The training programmes of this stage admit persons with basic education, seeking

to acquire vocational qualification and general secondary education. The training duration is

three years. After completing the training programmes, the graduates are given a diploma of

vocational education and training.

Stage IV: The training programmes of this stage admit person with secondary education. The

training duration is from one to two years. After completing the training programmes, the

graduates are given a diploma of vocational education and training.

University studies of higher education are more oriented towards academic activities, whereas non-university

studies focus on applied activities.

With regard to employment activity, the main variable is an occupation post, i.e. the collection of functions for

the performance of which remuneration is paid. The performance of such functions requires a certain level of

education and a number of relevant skills. In that way, the occupation post may be expressed in terms of

education and skills. Occupation posts are usually grouped using the ISCO12 or SOC13 classifications. Both

of them are compatible. The ISCO served as the basis for the Classification of Lithuanian Professions (a

profession is linked to the hour of actual work). The latter is used for collecting a variety of statistical data.

The study analyses the supply of employees by comparing the data on education and occupation posts

according to the diagram presented below (Fig. 5.1).

Fig. 5.1. Employee supply assessment scheme

12 International standard classification of occupations

13 Standard occupational classification

Initial vocational education and training

Higher education (university and non-university)

Education and training of the unemployeed

1 2 3 4 stages

Plant and machine operators and assemblers

job groups

Education

Service workers and shop and market sales workers

Skilled agricultural and fishery workers

Craft and related trades workers

Professionals Technicians and asociate professionals

Clerks

51

5.3. Supply of Employees by Areas and Level of Education

Analysis of employment changes by the groups of occupation posts shows that in 2004-2006, the biggest

reduction was in the group of qualified workers of marketable agriculture and fishery and the biggest growth

was in the group of legislators, senior public officials, managers of enterprises and organisations. The share

of professionals (including servants) in the employment structure of 2006 constituted less than 30 per cent

and the share of workers made up approximately 60 per cent (See Table 5.1).

Table 5.1. Employment Distribution by Job Groups

Change from 2004 to 2006

Job groups 2006 m.

19% ���� Legislators, senior officials and managers 9%

7% ���� Professionals 17%

5% ���� Technicians and associate professionals 9%

4% ���� Clerks 4%

29,5%

13% ���� Service workers and shop and market sales workers 13%

-27% ���� Skilled agricultural and fishery workers 9%

12% ���� Craft and related trades workers 19%

9% ���� Plant and machine operators and assemblers 10%

50,8%

4% ���� Elementary occupations 11% 10.7%

-8% ���� Armed forces (hired workers) 0%

���� - increase; ���� - decrease

According to the data we have, in 2006, vocational training schools admitted 19,913 students, which is 3 per

cent less than in 2005. The same year saw a slight increase in the demand for BA studies: 47,240 students

entered higher education establishments, i.e. 2 per cent more than in 2005. Among those who chose

vocational education and training, the most popular disciplines were business and administration as well as

engineering and engineering professions. Among those who preferred university education, the most popular

choice was of Business and administration. In fact, the same trends were prevailing during the previous year.

Detailed data about the distribution of admitted students by areas of education are presented in Fig. 5.2.

The distribution of graduates by areas of education coincides with the admission structure, i.e. the

predominant number of graduates is from the area of business and administration, and the number of

vocational training graduates is more than two times smaller than the volume of graduates from higher

educational establishments. Admittedly, in 2006, as compared to 2005, the number of graduates was 11 per

cent smaller. During that period, the number of university graduates increased by 12 per cent.

The data show that although the level of employment in the group of workers is two times bigger than in the

group of professionals (including servants), yet number of admitted students to programmes of higher

education exceeds the number of students to the relevant vocational training programmes two times. This

has an impact upon the proportioned maintained among the graduates of vocational training and higher

52

education. Hence the discrepancy between the supply and demand of employees may grow in the future,

causing serious problems for business development.

Fig. 5.2. Distribution of Admitted Students by Areas of Education in 2006

0 5000 10000 15000 20000 25000

Personal abilitiesTeacher training

ArtHumanities

Social and behavioural scienceJournalism and information

Business and administrationLaw

Natural sciencePhysics

Maths and statisticsComputer science

EngineeringProduction and manufacturingArchitecture and construction

Agriculture and forestryVeterinary

HealthSocial services

Personal servicesTransport services

Environmental protectionSecurity services

Vocational

Higher education

5.4. Supply of Employees in the FB Sector

While implementing a training/study programme, the future employees are usually trained for a certain group

of activities, rather than one concrete occupation posts. The activities of different economic sectors often

overlap. Certain competences necessary for the FB sector can be obtained in, for instance, the area of, for

instance, agriculture, catering, and trade in food products. As a result, it is quite difficult to name the

programmes aimed at training the employees for a particular sector, because graduates of different study

programmes may find employment in a variety of economic sectors. Therefore, while looking at the supply of

employees, all the programmes were taking into consideration, the graduates from which could be employed

in the FB sector. On the basis of the information provided about study programmes (programmes) in the

Open Information, Counselling and Guidance System (AIKOS), they are divided into the following two

groups:

• Group 1. It comprises the programmes that focus of competences required by the FB sector. The

study presumes that the majority of the graduates from this group of programmes find employment

in the FB sector enterprises.

• Group 2. The majority of its programmes are aimed at developing competences required by the

other sectors. The majority of the graduates should find employment in other sectors and only a

small share of them gets employed in the FB sector. For example, food preparation employees are

trained in public catering enterprises and gastronomy workshops of retail trade networks. However,

they can also apply their competences in food manufacturing enterprises.

53

5.4.1. Supply of Skilled Workers (Manufacturers) for the FB Sector

Upon the selection of primary vocation training programmes for the FB sector in the aforementioned way,

information was collected from all the vocational schools offering such programmes about the number of

graduates from them in 2007 and their level of employment. Findings of the survey are presented in Table

5.2. The data about employment are aggregate. Schools had no information about the type of economic

sectors which employed the graduates.

Table 5.2. Primary Vocational Education Programmes in Manufacture of Food Products and Beverages Sector and the Number of Graduates from them (According to the Survey of Schools)*

Graduates in 2007 Primary vocational training programme

Total Got

Employed

Supply of workers in the FB sector

Food industry worker 48 29

Food products production worker 14 8

Dairy operator 19 15

Meat processor 49 47

Butcher 16 13

Baker and confectioner 19 10

Group I

Confectioner 4 3

125

Food preparation worker 523 316 Group II

Cook and confectioner 38 22 338

*Short descriptions of the programmes are provided in Annex 3.

The registry of study and training programmes also includes the following: ‘baker of bread and pastry

training’, ‘beekeeping business employee training’ and ‘pisciculture business employee training’. They are

not mentioned in Table 5.2, because they were not conducted in 2005 – 2007.

The employees for the sector of manufacture of food products and beverages are also trained by the labour

market training programmes, included in the Registry of Study and Training Programmes. Data about

these programmes are listed in Table 5.3. Moreover, a number of non-formal training programmes offer

competences required by the FB sector. For instance, the list of the labour market non-training programmes

(http://www.ldrmt.lt/mod/nf_reg/) includes several programmes of the kind. Unfortunately, data about the

number of graduates from continuing vocational training programmes are not systemically collected and

therefore the quantitative assessment of the supply was not performed.

Table 5.3. Formal Labour Market Vocational Training Programmes in the Sector of Manufacture of Food Products and Beverages

Formal Labour Market Training Programme for

Programme Duration in Weeks Number of Licensed Bodies

Brewers 13 2 Bakers 20 11 Grain mill processing managers 1 1 Confectioners 40 ir 32 26 Meat cutters 16 8 Meat processing enterprise workers 14 4 Milk laboratory assistants 12 2 Fish and sea products primary processors 11 ir 7 6

54

5.4.2. Supply of Professionals, Including Associate Professionals and Technicians, for the FB Sector

There are relatively few higher education non-university and university studies training specialists for the FB

sector. All of them are listed in Table 5.4. The majority of programmes are clearly oriented towards the FB

sector, although their qualification descriptions sometimes mention some other economic sectors, including,

for example, trade and agriculture.

Table 5.4. Higher Education Study Programmes for Training MG Sector Employees

Study programme Graduates in 2006 Supply of Professionals in FBS**

Foodstuffs technology and equipment

35

Foodstuffs technology 43 Non-university

studies Food industry business management

43

85

Food technology and engineering

52 University BA

studies Engineering of food storage and processing of agricultural products

27 55

140

Food science 13 MA studies Foodstuffs technology 23

36

* Short descriptions of the qualifications listed is provided in Annex 4 **The supply was calculated assuming that 70 per cent of graduates get employed In 2006, the total number of graduates of the programmes mentioned in table 5.4 was 236, including 200

persons who finished the first stage of studies. Since very few higher education schools keep record of a

follow-up career of their graduates, the presumption is that the average number of students who get

employed is approximately 70 per cent Graduates of master studies are not included into the supply

because: (1) the majority of master students are employed and (2) prior to getting into master studies

students have to complete their stage 1 study programmes and the latter are already included into the

supply. With that in mind, the supply of professionals for the FB sector in 2006 was approximately 140

people.

5.5. Summary

The forecast of the future demand for employees in the FB sector has been made by looking at the sector

development and the turnover of staff (for more details see Chapter 4.4). The survey presumes that the need

for employees, occurring as a result of sector development and employees leaving the labour market due

their age or other reasons, should be compensated by the system of primary vocational training. The supply

and demand for employees in the FB sector is shown in Table 5.5. The supply and demand has been

calculated on the basis of the data provided in tables 5.4 and 4.6.

55

Table 5.5. Demand for Employees and Supply of Primary Vocational Training and Higher Education in the Sports Sector by Groups of Occupation Posts with the Shortage of Staff Identified*

Groups of Occupation Posts

Demand for New Staff during the 1st year

Need for Initial Training ** Annual Supply (2006 data) Assessment of the Balance between Supply and Demand

Professionals 120 71

Associate professionals and

technicians 60 27

Appr. 140

Positive

Manufacturers 3300 305 Appr. 125 negative

* The supply and demand for ‘other workers’ is not separately examined because workers belonging to this group (e.g. drivers) work in a variety of economic sectors and do not characterise the FB sector ** Newly employed staff to replace those who leave the labour market and compensate the need for employees created by the sector development

According to the data of the social survey (see Table 4.6), in 2007, the number of qualified workers

(manufacturers) in the food and beverages manufacturing sector surpassed the number of professionals

(including technicians) four times. However, data from the year 2006 show the reverse trends with regard to

the number of admitted students to the FB sector programmes and the number of graduates from them.

First, the number of admitted students to the programmes of higher education exceeds the number of

students to the relevant vocational training programmes 2.5 times. Second, the number of graduates from

higher education schools exceeds, albeit insignificantly, the number of graduates from vocational training

schools (see tables 5.2., 5.4.) Hence the discrepancy between the supply and demand of employees may

grow in the future, causing serious problems for business development.

The survey shows that primary vocational training will be able to provide only a small share (300 people) of

qualified workers (manufacturers) required by the sector. Continuing vocational training is required to train as

many as 3,000 manufacturers. Partly this demand is met by training the unemployed. However, the social

survey reveals that (see chapter 4.2) enterprises take efforts to satisfy the demand themselves by offering

on-the-job training for the people employed.

56

6. RECOMMENDATIONS

To improve conformity between demand and supply of employees in manufacture of food products

and beverages sector

• Although the level of employment in the FB sector enterprises among the group of workers is four times

bigger than in the group of professionals (including technicians), the number of admitted students to the

FB sector programmes of higher education exceeds the number of students to the relevant vocational

training programmes 2.5 times (data of 2006). As a result of such disproportion, the supply of

professionals in the labour market exceeds the demand for them, whereas qualified workers are lacking.

Therefore it is recommended to review the plans of admitting students into the state funded higher

education and vocational training programmes of the FB sector.

• The shortage of ‘manufacturers’ and ‘other workers’ in the sector is mostly linked to the lack of workers

trained by vocational training establishments. The latter is associated with the low level of prestige, in the

eyes of society, of vocational training. Therefore it is recommended to advertise and raise awareness

about food manufacturing occupations among the youth (organising advertising campaigns in general

education schools, in the press, television and showing examples of successful careers pursued by the

graduates, etc.). The attractiveness and prestige of the sector occupations should also be increased by

the food manufacturing enterprises. They could offer higher remuneration for work and social guarantees

to their employees, improve working conditions and motivate staff by offering refresher courses abroad.

• Certain sector enterprises (particularly those operating in the grain and animal feed sub-sectors) lack

food machine operators. Presently, no training is available to offer such occupational qualification.

Previously, workers of similar qualification were trained under the Food Industry Equipment Operator

and Laboratory Assistant Training Programme. Therefore it is recommended to modify the programme to

include training of food machine operators.

• The sector of the FB manufacture offers a huge variety of occupation posts and competences.

Therefore, the annual demand for employees in certain occupation posts is rather high. Therefore it is

recommended to organise training based on modules. In the beginning students would attend obligatory

training modules offering general competences required by the FB sector and later they could choose

additional competences necessary for the occupation of their choice from the range of optional modules.

The optional modules could be agreed with the interested sector enterprises which usually employ the

graduates.

• The analysis performed shows that enterprises willing to respond to market changes in a more flexible

and speedy manner will speed up the use of modern production technologies. That will also reduce the

need for workers with low qualification and increase the demand for higher skilled workers (for instance,

operators). Therefore, it is recommended to organise practical training for employees (for example, by

appointment of enterprise workers as manufacturing practice supervisors or tasking them to perform

other assignments). It the long-run this would ensure smaller discrepancy between the supply and

demand for employees of certain qualifications.

• The new form of organisation of apprenticeship vocational training has been established by law. It

means on-the-job training in an enterprise, institution, organisation, farm or with a free-lance trainer.

Theoretical training may be carried out in vocational training establishment or another type of school.

57

The experience of other countries shows, that the advantages of apprenticeship include smaller training

costs and work with modern technologies. Enterprises are recommended to use the opportunity to train

the employees according to their own needs and, at the same time, increase the attractiveness of

vocational education and training.

• According to the survey findings, all the sector employees lack foreign language and work organisation

skills. n addition, professionals require work planning and control as well as computer literacy skills.

Qualified employees lack responsibility, duty and willingness to learn, whereas professions need

innovation and management skills. Therefore, to ensure appropriate qualification of employees,

training/study programmes should be updated with regard to the identified needs of skills.

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Hamann, K. 2007. Food sector specificities relevant for innovation, company growth and access to financing. Available at http://www.europe-innova.org/index.jsp?type=page&lg=en&cid=7677.

Improve 2005. The Food and Drink Manufacturing Workforce in England at a glance. Improve: York.

Improve, 2004. Key Findings from the National Employers Survey, 2003. Sector Skills Development Agency: South Yorkshire.

just-food, 2006. Global market review of diet trends and weight management - forecasts to 2012. Available at: http://www.the-infoshop.com/study/jusf45074-weight-mngment.html.

Market Research Northern Ireland, 2006. Skills Needs in the Northern Irish Food and Drink Manufacturing Industry. Improve: York.

Myers, H. 2005. European Food Retailers: Paths for Growth. European Retail Digest, no.38, pp. 1-5.

OECD, FAO, 2006. OECD-FAO Agricultural Outlook 2006-2015. Available at http://www.agri-outlook.org/dataoecd/41/21/37038911.pdf.

Price Waterhouse Cooper, 2002. The Demand and supply of Skills in the Food Processing Sector. Dublin: Enterprise Ireland/FAS.

Simpson, J. and M. Stalker, 2004. Shetland’s food & drink sector: Workforce Development Plan and PESTLE Analysis. DEVA Personal Development Associates: Kilmarnock.

ANNEX 1

Lietuvos maisto produktų ir g÷rimų gamybos sektoriaus SSGG analiz÷

Stipryb÷s Silpnyb÷s

• Senos maisto produktų (ypač pieno, m÷sos , duonos) gamybos tradicijos.

• Palankios sąlygos pl÷toti maisto produktų ir g÷rimų gamybą.

• Daug šios srities specialistų. • Pakankamas gamybinis potencialas. • Skiriama vis daugiau l÷šų kofinansuoti inovacinę

veiklą ir mokslinius tyrimus. • Kai kurios maisto ūkio šakos pakankamai

integruotos į ES struktūras. • Spartus naujų produktų kūrimas ir diegimas. • Įmon÷s atitinka griežtus reikalavimus gamybos

procesui ir produkcijos saugai ir kokybei.

• Sektorius per daug orientuotas į vietinę rinką. • Žemas darbo produktyvumas. • Daug įmonių orientuotų į žemos prid÷tin÷s vert÷s

produktų gamybą. • Maž÷ja technologinį išsilavinimą turinčių

specialistų.

Galimyb÷s Gr÷sm÷s

• ES dotacijos žem÷s ūkiui. • Geros užsienio prekybos galimyb÷s NVS ir ES

šalyse. • Palanki mokesčių sistema maisto produktų

eksportui į trečiąsias šalis. • Augančios gyventojų pajamos. • Europos socialinių fondų parama.

• Vietinių žaliavų stygius ir jų brangimas. • Prekybos liberalizacija. • Darbo j÷gos emigracija. • Lietuvos nepasirengimas įsisavinti ES paramą. • Nepakankamas investicinis aktyvumas. • Dažni pokyčiai teisin÷je aplinkoje, įstatymin÷je

baz÷je. • Augantys vartotojų reikalavimai. • Didelis konkurencinis spaudimas. • Aukštos kvalifikacijos darbo j÷gos stoka. .

ANNEX 2

Lentel÷. MG sektoria

us kaita praeityje ir prognoz÷s ateičiai

ME

ZU

VD

2003 m

. 2007 m.

Pokytis

(kartais)

Prognoz÷

2012 m.

Pokytis

(kartais)

2003

m.

2007 m.

Pokytis

Prognoz÷

2012 m

. Pokytis

(kartais)

2003 m

. 2007 m

. Pokytis

Prognoz÷

2012 m

. Pokytis

(kartais)

Įmon

ių s

kaič

ius

356

246

� ���(0

.69)

24

6 =

89

67

� ���(0

.75)

55

� ���

(0.8

2)

36

35

� ���

(0.9

7)

35

=

Dar

buot

ojų

skai

čius

95

96

9983

� ���

(1.0

4)

9945

� ���

(0.9

96)

41

14

4742

� ���

(1.1

5)

7,01

4 � ���

(1.4

8)

69

4 85

4 � ���

(1.2

3)

943

� ���(1

.10)

Apyv

arta

(tūk

st. l

itų)

7934

25

1432

547

� ���(1

.81)

19

2729

4 � ���

(1.3

5)

45

8478

68

6462

.3

� ���(1

.50)

11

4985

5.2

� ���(1

.68)

4743

3 10

3445

� ���

(2.1

8)

1890

16

� ���(1

.83)

Prod

ukty

vum

as

(apy

varta

/dar

buot

ojų

sk.)

82.7

14

3.5

� ���(1

.74)

19

4 � ���

(1.3

5)

11

1.4

144.

8 � ���

(1.3

0)

163.

9 � ���

(1.1

3)

68

12

1 � ���

(1.7

7)

200

� ���(1

.65)

Vidu

tinis

m÷n

esin

is

brut

o da

rbo

užm

okes

tis

1014

15

85

� ���(1

.56)

26

21.0

0 � ���

(1.6

5)

98

4 15

37

� ���(1

.56)

25

42

� ���(1

.65)

1029

16

09

� ���(1

.56)

26

60.3

� ���

(1.6

5)

Dal

is n

uo B

PV (%

) 0.

52%

0.

72%

� ���

(1.3

7)

0.76

%

� ���(1

.06)

0.30

%

0.34

%

� ���(1

.14)

0.

45%

� ���

(1.3

2)

0.

04%

0.

06%

� ���

(1.6

5)

0.08

%

� ���(1

.30)

� ��� -

padi

d÷jim

as; � ��� -

sum

až÷j

imas

; = - to

ks p

ats

RA

PI

GR

2003 m

. 2007 m.

Pokytis

(kartais)

Prognoz÷

2012 m.

Pokytis

(kartais)

2003 m

. 2007 m

. Pokytis

Prognoz÷

2012 m

. Pokytis

(kartais)

2003 m

. 2007 m

. Pokytis

Prognoz÷

2012 m

. Pokytis

(kartais)

Įmon

ių s

kaič

ius

13

8 � ���

(0.6

2)

8 � ���

(0.6

2)

54

32

� ���

(0.5

9)

32

=

93

48

� ���

(0.5

) 48

=

Dar

buot

ojų

skai

čius

16

1 89

� ���

(0.5

5)

89

� ���(0

.55)

1184

4 94

86

� ���(0

.8)

9486

=

1720

12

65

� ���(0

.74)

12

69

=)

Apyv

arta

(tūk

st. l

itų)

3082

5 29

546

� ���(0

.96)

18

593

� ���(0

.60)

1619

401

1758

630

� ���(1

.09)

20

4924

3 � ���

(1.1

7)

20

5118

21

6998

� ���

(1.0

6)

9959

8 � ���

(0.4

6)

Prod

ukty

vum

as

(apy

varta

/dar

buot

ojų

sk.)

191

332

� ���(1

.73)

20

9 � ���

(1.0

9)

13

7 18

5 � ���

(1.3

6)

216

� ���(1

.17)

119

172

� ���(1

.44)

78

� ���

(0.4

6)

Vidu

tinis

m÷n

esin

is

brut

o da

rbo

užm

okes

tis

973

1522

� ���

(1.5

6)

2516

� ���

(2.5

8)

10

62

1659

� ���

(1.5

6)

2744

� ���

(1.6

5)

10

29

1609

� ���

(1.5

6)

2660

� ���

(1.6

5)

Dal

is n

uo B

PV (%

) 0.

03%

0.

02%

� ���

(0.7

1)

0.01

%

� ���(0

.34)

1.41

%

1.14

%

� ���(0

.8)

1.02

%

� ���(0

.9)

0.

17%

0.

14%

� ���

(0.8

) 0.

04%

� ���

(0.3

3)

� ��� -

padi

d÷jim

as; � ��� -

sum

až÷j

imas

; = - to

ks p

ats

61

PA

KP

GE

2003 m

. 2007 m.

Pokytis

(kartais)

Prognoz÷

2012 m.

Pokytis

(kartais)

2003 m

. 2007 m

. Pokytis

Prognoz÷

2012 m

. Pokytis

(kartais)

2003 m

. 2007 m

. Pokytis

Prognoz÷

2012 m

. Pokytis

(kartais)

Įmon

ių s

kaič

ius

26

18

� ���(0

.69)

19

� ���

(1.0

6)

70

7 51

4 � ���

(0.7

3)

508

� ���(0

.99)

139

115

� ���(0

.83)

11

4 � ���

(0.9

9)

Dar

buot

ojų

skai

čius

19

23

1636

� ���

(0.8

5)

1661

� ���

(1.0

2)

18

522

1834

2 � ���

(0.9

9)

1879

6 � ���

(1.0

2)

5,

758

5,25

8 � ���

(0.9

) 2,

959

� ���(0

.56)

Apyv

arta

(tūk

st. l

itų)

5691

82

6020

69

� ���(1

.06)

79

7819

� ���

(1.3

3)

15

5067

4 16

7916

7 � ���

(1.0

8)

2444

193

� ���(1

.46)

7886

46

1159

319

� ���(1

.47)

21

7155

1 � ���

(1.8

7)

Prod

ukty

vum

as

(apy

varta

/dar

buot

ojų

sk.)

296

368

� ���(1

.24)

48

0 � ���

(1.3

1)

84

92

� ���

(1.0

9)

130

� ���(1

.42)

137

220

� ���(1

.61)

73

4 � ���

(3.3

3)

Vidu

tinis

m÷n

esin

is

brut

o da

rbo

užm

okes

tis

1034

16

17

� ���(1

.56)

26

73

� ���(1

.65)

1014

15

85

� ���(1

.56)

26

21

� ���(1

.65)

1044

16

33

� ���(1

.56)

26

99.6

� ���

(1.6

5)

Dal

is n

uo B

PV (%

) 0.

37%

0.

30%

� ���

(0.8

1)

0.31

%

� ���(1

.04)

0.55

%

0.44

%

� ���(0

.79)

0.

53%

� ���

(1.2

1)

0.

52%

0.

58%

� ���

(1.1

2)

0.86

%

� ���(1

.47)

� ��� -

padi

d÷jim

as; � ��� -

sum

až÷j

imas

; = - to

ks p

ats

ANNEX 3

Lentel÷ MG sektoria

us darbininkų (operatorių) įgyjam

ų kompetencijų ir geb÷jim

ų ap

rašai pag

al profesinio mokym

o prog

ramas

Vir÷jo ir konditerio

Kep÷jo ir konditerio

Konditerio

Maisto ruošimo darbuotojo

Kom

petencijos ir

geb÷jim

ai

Pasi

rinkt

i dar

bui t

inka

mus

įran

kius

, in

vent

orių

ir te

chno

logi

nius

įren

gini

us.

Saug

iai d

irbti

su įv

airia

is m

aist

o ru

ošim

o įre

ngim

ais.

Įv

ertin

ti ve

rslo

apl

inką

. Ti

nkam

ai o

rgan

izuo

ti da

rbo

viet

ą.

Atlik

ti da

rbus

pag

al s

anita

rijos

ir h

igie

nos

reik

alav

imus

. Pa

rinkt

i žal

iava

s ir

med

žiag

as m

aist

o pr

oduk

to g

amyb

ai.

Nus

taty

ti ža

liavų

kok

ybę.

N

audo

tis in

form

acin

÷mis

tech

nolo

gijo

mis

. G

amin

ti ku

linar

ijos

ir ko

ndite

rijos

pu

sgam

iniu

s.

Parin

kti i

r tai

kyti

šilu

min

io p

aruo

šim

o bū

dus.

G

amin

ti ka

rštu

s pa

tieka

lus

ir ku

linar

ijos

gam

iniu

s.

Gam

inti

ir p

atie

kti

šaltu

osiu

s,

sald

žiuo

sius

pat

ieka

lus,

užk

andž

ius

ir g÷

rimus

. Įv

ertin

ti pa

ruoš

tų p

atie

kalų

ir k

ulin

arijo

s ga

min

ių k

okyb

ę.

Gam

inti

mie

linių

ir n

emie

linių

tešl

ų ga

min

ius.

Įv

ertin

ti ko

ndite

rijos

gam

inių

kok

ybę.

O

rgan

izuo

ti m

aist

o ru

ošim

o įm

on÷s

vei

klą.

Pa

rinkt

i, pr

iimti

ir la

ikyt

i mai

sto

prod

uktu

s.

Atlik

ti ne

sud÷

tingą

pirm

inį m

aist

o pr

oduk

tų

paru

ošim

ą.

Nus

taty

ti m

aist

o pr

oduk

tų k

okyb

ę ju

slin

iu

būdu

. N

usta

tyti

mai

sto

prod

uktų

reik

mes

. R

uošt

i duo

nos

pusg

amin

ius.

R

uošt

i nes

ud÷t

ingu

s ko

ndite

rijos

gam

inių

pu

sgam

iniu

s.

Ruo

šti p

likin

ius,

raug

us, į

mai

šus.

R

uošt

i nes

ud÷t

ingų

duo

nos

ir py

rago

ga

min

ių te

šlas

, for

muo

ti ir

kept

i gam

iniu

s.

įver

tinti

duon

os ir

pyr

ago

gam

inių

kok

ybę

jusl

iniu

būd

u.

Gam

inti

mie

lin÷s

tešl

os g

amin

ius.

G

amin

ti ne

sud÷

tingu

s te

šlų

su p

urik

liais

ir

be p

urik

lių g

amin

ius.

Įv

ertin

ti ko

ndite

rijos

gam

inių

kok

ybę

jusl

iniu

būd

u.

Gam

inti

nesu

d÷tin

gus

krem

inių

gam

inių

pu

ošim

o pu

sgam

iniu

s.

Gam

inti

nesu

d÷tin

gus

krem

iniu

s ga

min

ius.

Su

pras

ti ko

mpo

zici

jos

pagr

indu

s.

Pa

rinkt

i, pr

iimti

ir la

ikyt

i mai

sto

prod

uktu

s.

Atlik

ti pi

rmin

į mai

sto

prod

uktų

par

ošim

ą.

Nus

taty

ti m

aist

o pr

oduk

tų k

okyb

ę.

Pask

aiči

uoti

mai

sto

prod

uktų

reik

mes

. R

uošt

i kon

dite

rijos

pus

gam

iniu

s.

Parin

kti i

r tai

kyti

šilu

min

io p

aruo

šim

o bū

dus.

Įv

ertin

ti pa

ruoš

tų k

ondi

terij

os g

amin

ių

koky

bę.

Gam

inti

mie

linių

tešl

ų ga

min

ius.

ga

min

ti ne

mie

lin÷s

tešl

os g

amin

ius.

Įv

ertin

ti ko

ndite

rijos

gam

inių

kok

ybę.

Ap

ipav

idal

inti

kond

iterij

os g

amin

ius.

Su

pras

ti ko

ndite

rijos

gam

ybos

įmon

÷s

veik

lą.

Tvar

kyti

kond

iterij

os įm

onių

gam

ybos

pr

oces

o ap

skai

tą.

Įver

tinti

darb

o rin

ką.

Paru

ošti

plik

iniu

s, ra

ugus

, įm

aiša

lus.

Pa

ruoš

ti įv

airia

s du

onos

ir p

yrag

o ga

min

ių

tešl

as, f

orm

uoti

ir ke

pti,

apip

avid

alin

ti ir

paku

oti.

Pa

sirin

kti d

arbu

i tin

kam

us įr

anki

us,

inve

ntor

ių ir

tech

nolo

gini

us įr

engi

nius

. Sa

ugia

i dirb

ti su

įvai

riais

mai

sto

ruoš

imo

įreng

imai

s.

Įver

tinti

vers

lo a

plin

ką.

Tink

amai

org

aniz

uoti

darb

o vi

etą.

At

likti

darb

us p

agal

san

itarij

os ir

hig

ieno

s re

ikal

avim

us.

Parin

kti ž

alia

vas

ir m

edži

agas

mai

sto

prod

ukto

gam

ybai

. N

usta

tyti

žalia

vų k

okyb

ę.

Nau

dotis

info

rmac

in÷m

is te

chno

logi

jom

is.

Gam

inti

kulin

arijo

s ir

kond

iterij

os

pusg

amin

ius.

Pa

rinkt

i ir t

aiky

ti ši

lum

inio

par

uoši

mo

būdu

s.

Gam

inti

karš

tus

patie

kalu

s ir

kulin

arijo

s ga

min

ius.

G

amin

ti ir

patie

kti š

altu

osiu

s, s

aldž

iuos

ius

patie

kalu

s, u

žkan

džiu

s ir

g÷rim

us.

Įver

tinti

paru

oštų

pat

ieka

lų ir

kul

inar

ijos

gam

inių

kok

ybę.

G

amin

ti m

ielin

ių ir

nem

ielin

ių te

šlų

gam

iniu

s.

Įver

tinti

kond

iterij

os g

amin

ių k

okyb

ę.

Org

aniz

uoti

mai

sto

ruoš

imo

įmon

÷s v

eikl

ą

Profesin÷ veikla, kuria

gali verstis

pažym÷jimo

savininkas

Dar

bo v

ieto

s m

aitin

imo

įmon

÷je

orga

niza

vim

as; m

aist

o pr

oduk

tų ir

žal

iavų

pa

rinki

mas

ir p

irmin

is p

aruo

šim

as; m

aist

o ga

min

ių ru

ošim

as; m

aist

o ru

ošim

o įra

ngos

ir

inve

ntor

iaus

nau

dojim

as ir

prie

žiūr

a

M

aist

o pr

oduk

tų p

arin

kim

as ir

pirm

inis

pa

ruoš

imas

; pus

gam

inių

par

uoši

mas

; ru

gini

ų ir

kvie

tinių

tešl

ų ru

ošim

as,

paru

ošim

as fo

rmav

imui

, for

mav

imas

ir

kepi

mas

; nes

ud÷t

ingų

kon

dite

rijos

ga

min

ių ru

ošim

as iš

mie

linių

ir k

itų

kond

iterij

os te

šlų;

mas

in÷s

gam

ybos

kr

emin

ių k

ondi

terij

os g

amin

ių fo

rmav

imas

ir

puoš

yba.

M

aist

o pr

oduk

tų p

arin

kim

as; k

ondi

terij

os

gam

inių

ir p

usga

min

ių ru

ošim

as; d

arbo

or

gani

zavi

mas

kon

dite

rijos

gam

ybos

įm

on÷s

e; d

uono

s ga

min

ių ru

ošim

as.

M

aist

o pr

oduk

tų g

amyb

os m

ašin

ų,

įreng

inių

bei

įren

gim

ų va

ldym

as ir

prie

žiūr

a;

mai

sto

prod

uktų

gam

ybos

pro

ceso

or

gani

zavi

mas

; mai

sto

prod

uktų

gam

ybos

vald

ymas.

63

Maisto produktų gam

ybos darbuotojo

Maisto pram

on÷s darbuotojo

M÷sininko

M÷sos perdirb÷jo

Kom

petencijos ir

geb÷jim

ai

. Įve

rtint

i ver

slo

aplin

ką.

Išm

anyt

i mai

sto

pram

on÷s

įmon

÷s v

eikl

ą.

Saug

iai d

irbti.

O

rgan

izuo

ti ne

nutrū

ksta

mą

darb

o pr

oces

ą įm

on÷j

e ir

jos

pada

liniu

ose.

Be

ndra

uti i

r ben

drad

arbi

auti.

Vy

kdyt

i mat

eria

linių

ver

tybi

ų ap

skai

tą ir

įv

ertin

ti ūk

in÷s

vei

klos

rezu

ltatu

s.

Tvar

kyti

pirk

imo,

par

davi

mo

ir ki

tą

doku

men

taci

ją.

Parin

kti i

r par

uošt

i žal

iavą

mai

sto

prod

uktų

ga

myb

ai.

Pask

aiči

uoti

mai

sto

prod

uktų

reik

mes

. At

likti

mai

sto

prod

uktų

gam

ybos

te

chno

logi

nes

oper

acija

s.

Įver

tinti

mai

sto

prod

uktų

kok

ybę.

N

audo

tis in

form

acin

÷mis

tech

nolo

gijo

mis

.

Pa

rinkt

i tin

kam

as ž

alia

vas

ir m

edži

agas

m

aist

o pr

oduk

tų g

amyb

ai.

Atlik

ti ža

liavo

s pa

ruoš

imo

tech

nolo

gine

s op

erac

ijas,

nau

doja

ntis

įren

gim

ais

bei

inve

ntor

ium

i. N

usta

tyti

žalia

vos

koky

bę.

Mok

÷ti s

augi

ai d

irbti

Apsk

aiči

uoti

reik

iam

ą ža

liavo

s ki

ekį.

Ruo

šti p

usga

min

ius.

N

usta

tyti

pusg

amin

io k

okyb

ę.

Saug

iai d

irbti

tech

nolo

gini

ais

įreng

imai

s ir

įrank

iais

. Ko

kybi

škai

atli

kti m

aist

o pr

oduk

tų

gam

ybos

tech

nolo

gini

us p

roce

sus.

Įv

ertin

ti m

aist

o pr

oduk

tų k

okyb

ę ga

uto

tech

nolo

gini

o pr

oces

o ta

rpin

iu ir

gal

utin

iu

etap

u.

Supr

asti

mai

sto

pram

on÷s

įmon

÷s v

eikl

ą.

Supr

asti

darb

o rin

kos

kelia

mus

re

ikal

avim

us.

Tink

amai

pas

iruoš

ti da

rbo

viet

ą.

Pa

sirin

kti d

arbu

i tin

kam

us įr

anki

us,

inve

ntor

ių ir

tech

nolo

gini

us įr

engi

nius

. Ti

nkam

ai p

aruo

šti d

arbo

vie

tą.

Saug

iai d

irbti

tech

nolo

gini

ais

įreng

imai

s ir

įrank

iais

. Pa

rinkt

i tin

kam

as ž

alia

vas

ir m

edži

agas

m

÷sos

pro

dukt

ų ga

myb

ai.

Įver

tinti

vers

lo a

plin

ką.

Atlik

ti ža

liavų

par

uoši

mo

tech

nolo

gine

s op

erac

ijas.

įv

ertin

ti ža

liavų

kok

ybę.

Su

dalin

ti sk

erdi

ena

ir ru

ošti

m÷s

os

pusg

amin

ius.

Įv

ertin

ti pu

sgam

inių

kok

ybę.

Ko

kybi

škai

atli

kti m

÷sos

pro

dukt

ų ga

myb

os te

chno

logi

nius

pro

cesu

s.

Įver

tinti

m÷s

os p

rodu

ktų

koky

bę,

tech

nolo

gini

o pr

oces

o ta

rpin

iam

e ir

galu

tinia

me

etap

uose

. M

ok÷t

i ves

ti ap

skai

tą.

Nau

dotis

info

rmac

in÷m

is te

chno

logi

jom

is.

P

arin

kti t

inka

mas

žal

iava

s m

÷sos

gam

inių

ga

myb

ai.

Atlik

ti ža

liavo

s pa

ruoš

imo

tech

nolo

gine

s op

erac

ijas

naud

ojan

tis įr

engi

mai

s be

i įra

nkia

is.

Nus

taty

ti ža

liavo

s ko

kybę

. M

ok÷t

i sau

giai

dirb

ti.

Paru

ošti

stam

biag

abal

ius

ir sm

ulki

agab

aliu

s m

÷sos

pus

gam

iniu

s.

Nus

taty

ti pu

sgam

inio

kok

ybę.

Ko

kybi

škai

atli

kti m

÷sos

gam

inių

gam

ybos

te

chno

logi

nius

pro

cesu

s.

Saug

iai d

irbti

tech

nolo

gini

ais

įreng

imai

s ir

įrank

iais

. Įv

ertin

ti m

÷sos

gam

inių

kok

ybę.

Iš

man

yti m

÷sos

per

dirb

imo

įmon

÷s v

eikl

ą ir

gam

ybos

api

mtis

. Ži

noti

darb

o rin

kos

kelia

mus

reik

alav

imus

. Ti

nkam

ai p

aruo

šti d

arbo

vie

tą

Profesin÷ veikla, kuria

gali verstis

pažym÷jimo

savininkas

Mai

sto

prod

uktų

gam

ybos

maš

inų,

įre

ngin

ių b

ei įr

engi

mų

vald

ymas

ir p

rieži

ūra;

m

aist

o pr

oduk

tų g

amyb

os p

roce

so

orga

niza

vim

as; m

aist

o pr

oduk

tų g

amyb

os

vald

ymas.

M

aist

o pr

oduk

tų p

irmin

is p

aruo

šim

as;

šaltų

ir k

aršt

ų pa

tieka

lų, d

eser

tų,

g÷rim

ų, n

esud

÷tin

gų k

ondi

terin

ių

gam

inių

gam

inim

as; d

arbo

vie

tos

orga

niza

vim

as

Ža

liavo

s pa

ruoš

imas

m÷s

os p

rodu

ktų

gam

ybai

; m÷s

os p

usga

min

ių ru

ošim

as;

m÷s

os p

rodu

ktų

gam

inim

as; d

arbo

vie

tos

orga

niza

vim

as m

÷sos

pra

mon

÷s įm

on÷j

e.

Ža

liavo

s pa

ruoš

imas

m÷s

os g

amin

ių

gam

ybai

; m÷s

os p

usga

min

ių ru

ošim

as;

m÷s

os g

amin

ių g

amin

imas

; dar

bo

orga

niza

vim

as m

÷sos

per

dirb

imo

įmon

÷je

64

Pienininko

Kom

petencijos ir

geb÷jim

ai

Saug

iai d

irbti.

Iš

man

yti a

pie

karv

ių š

÷rim

ą, la

ikym

ą ir

priž

iūr÷

jimą

koky

bišk

o pi

eno

gavy

boje

. At

likti

pirm

inį p

ieno

apd

oroj

imą.

N

usta

tyti

supe

rkam

o pi

eno

kiek

į ir p

aim

ti pi

eno

band

inį.

Tvar

kyti

supe

rkam

o pi

eno

apsk

aitą

. Ap

doro

ti ko

mpi

uter

iu p

ieno

aps

kaito

s do

kum

entu

s.

Eksp

loat

uoti

pagr

indi

nius

pie

no p

ram

on÷s

įre

ngin

ius.

Iš

man

yti p

ieno

pro

dukt

ų ga

myb

os

tech

nolo

gine

s op

erac

ijas.

N

usta

tyti

pien

o pr

oduk

tų k

okyb

ę.

Įver

tinti

vers

lo a

plin

ką.

Bend

raut

i ir b

endr

adar

biau

ti.

Profesin÷ veikla, kuria

gali verstis

pažym÷jimo

savininkas

Pien

o ga

vyba

; pie

no s

upirk

imas

; pie

no

prod

uktų

gam

ybos

tech

nolo

gija

.

ANNEX 4

Lentel÷. Maisto produktų ir g÷rimų gamybos specialistų rengimo programos

Programa Suteikiama kvalifikacija

Kvalifikacijos aprašas

Maisto pramon÷s technologija ir įrenginiai

Technologas ir chemijos inžinerijos profesinis bakalauras

Baigusieji programą dirba technologu maisto pramon÷s įmon÷se, perdirbančiose žem÷s ūkio produkciją. Technologas vertina maisto pramon÷s žaliavų, medžiagų ir produkcijos kokybę, įvertina žaliavų ir maisto priedų funkcines technologines savybes ir naudojimo efektyvumą, parenka kokybiškas žaliavas ir maisto priedus maisto produktų gamybai, analizuoja ir planuoja technologinį procesą, valdo ir kontroliuoja turimus materialinius išteklius, projektuoja technologin÷s įrangos parinkimą ir išd÷stymą pagal technologinių operacijų srautą, diegia prevencinę maisto saugos sistemą.

Maisto produktų technologija

Technologas ir chemijos inžinerijos profesinis bakalauras

Baigusieji programą dirba maisto produktų gamybos ir prekybos įmon÷se, maitinimo įmon÷se, žvejybiniuose ir gamybiniuose laivuose. Jis organizuoja ir vadovauja maisto produktų gamybos technologiniams procesams, vertina produkcijos kokybę, sudaro gamybinių procesų apskaitos pirminę ir suvestinę dokumentaciją, analizuoja ir vertina ekonominius rodiklius, įformina gatavos produkcijos kokybę patvirtinančius ir produkcijos išsiuntimo dokumentus lietuvių ir užsienio kalbomis, bendrauja su užsienio partneriais būsimos veiklos srityje

Neuniversitetinių studijų programos (trukm÷ 3-4 metai)

Maisto pramon÷s verslo vadyba

Vadybos ir verslo administravimo profesinis bakalauras

Baigusieji programą gali dirbti vadybininku ar padalinio vadovu maisto pramon÷s gamybos arba prekybos įmon÷se bei kurti savo įmonę, susijusią su maisto produktų gamyba/prekyba.

Maisto technologijos ir inžinerijos

Chemijos inžinerijos bakalauras

Baigusieji programą dirba įvairiose maisto pramon÷s ir viešojo maitinimo įmon÷se įvairaus lygio gamybos vadovais, inžinieriais, laboratorijų ir kitų skyrių vadovais, gali dirbti maisto įmonių vadybininkais, valstybinių institucijų, susijusių su maisto gamyba ir kontrole, tarnautojais.

Universitetinių studijų programos (trukm÷: bakalauras - 4-5 metai; magistras – 2 metai)

Žem÷s ūkio produktų laikymo ir perdirbimo inžinerija

Mechanikos inžinerijos bakalauras

Baigusieji programą dirba žem÷s ūkio ir maisto produktų perdirbimo įmonių inžinerin÷se technologin÷se tarnybose, įmonių kokyb÷s valdymo sistemose.

Maisto mokslas Chemijos inžinerijos magistras

Baigusieji dirba maisto pramon÷s ir viešojo maitinimo, maisto kontrol÷s ir maisto tyrimų įmon÷se, valstybinių institucijų, susijusių su maisto gamyba ir kontrole tarnautojais.

Maisto produktų technologija

Chemijos inžinerijos magistras

Baigusieji programą dirbą maisto pramon÷s ir viešojo maitinimo, maisto kontrol÷s ir maisto tyrimų bei projektavimo įmon÷se, valstybinių institucijų, susijusių su maisto gamyba ir kontrole, tarnautojais.

Absolventai dirba mokymo ir mokslo įstaigose, projektavimo biuruose, konsultacin÷se tarnybose, kokyb÷s inspekcijoje

Maisto produktų technologija

Mechanikos inžinerijos magistras