Explain the Upstream /Downstream Industries and Forward / Backward Linkages with reference to Food Processing Industry.
The upstream industries are dedicated to procurement, extraction and initial processing of raw material for manufacturing use ex- flour milling; leather tanning; cotton ginning; oil pressing, fish canning etc
Downstream industries undertake further manufacturing operations on intermediate products made from agricultural materials. Examples are manufacturing of bread, biscuit and noodle making; paper production; clothing and footwear manufacturing etc.
For an industry, backward linkages are directed towards suppliers; while the forward linkages are directed towards consumers. In context with Food Processing Industry, a Food Processing Unit needs to have strong backward linkages with the farmers, farmer producer organizations, self help groups, farmer’s groups etc. Further, to be able to sell its processed food, it needs to develop strong forward linkages with wholesalers, retailers, exporters etc.