ICAR AICE-JRF/SRF Food Processing & Technology Management: practice questions

1 · Post-harvest losses and their reduction · medium

Contract farming for a processing plant is exposed to 'side-selling'. This means:

1. Contracted farmers sell produce to other buyers when open-market prices exceed the contract price
2. The processor rejects produce when market prices fall
3. Farmers sell inputs supplied by the processor to neighbours only after harvest
4. The processor sells finished products through several channels

2 · Cost analysis of processing · easy

A spice-grinding unit has annual fixed costs of 6,000,000 currency units. It sells ground spice at 50 currency units per kg and variable cost is 35 per kg. What is the break-even quantity per year?

1. 120,000 kg
2. 171,429 kg
3. 70,588 kg
4. 400,000 kg

3 · Cost analysis of processing · hard

An oil mill crushes 100 kg of oilseed bought at 60 currency units per kg and obtains 36 kg oil (140 per kg) and 62 kg cake (25 per kg). Processing cost is 4 per kg of seed. What is the net crushing margin per 100 kg of seed, in currency units?

1. -1,360
2. 590
3. 190
4. 6,190

4 · Cost analysis of processing · medium

A pickle unit has annual fixed costs of 4,000,000 currency units, sells at 80 currency units per kg with variable cost 60 per kg, and wants a profit of 2,000,000 before tax. How many kg must it sell?

1. 200,000 kg
2. 75,000 kg
3. 100,000 kg
4. 300,000 kg

5 · Cost analysis of processing · hard

A packing line is the bottleneck in a snack plant. Product A earns a contribution of 12 currency units per kg and uses 0.5 minutes of line time per kg; product B earns 20 per kg and uses 1.0 minute per kg. Demand for both exceeds capacity. Which product should be given priority, and why?

1. Product B, because it earns the higher contribution per kg
2. Either, because both are profitable
3. Product A, because it earns 24 per minute of line time against 20 for B
4. Product B, because it uses more line time and so absorbs more fixed cost

6 · Food laws and the FSS Act · hard

Under the WTO SPS Agreement, a member country that sets a maximum residue limit stricter than the Codex standard must:

1. Obtain prior permission from the Codex Alimentarius Commission before applying the limit
2. Justify the stricter measure with scientific evidence or an appropriate risk assessment
3. Apply it only to domestic producers, not imports
4. Pay compensation to exporting countries automatically

7 · Food laws and the FSS Act · hard

A fruit processor wants to export mango pulp. In most exporting countries, which pairing of institutions and roles is correct?

1. The domestic food regulator issues every export certificate; the export promotion agency sets domestic food standards
2. An export promotion agency registers and supports exporters; an official inspection body certifies consignments
3. The seafood export agency registers fruit exporters; the inspection body sets the residue limits for every export
4. The national standards bureau registers all exporters; the domestic food regulator runs export trade fairs

8 · Case studies in processing ventures · medium

In the stage-gate process for a new food product, what happens at each 'gate'?

1. The product is launched in one new region
2. Production capacity is doubled
3. The recipe and label are sent to the food regulator for approval before the next stage can begin
4. Management decides whether to continue, stop, hold or rework the project against set criteria

9 · Case studies in processing ventures · hard

A small processor must decide between building its own brand and supplying a supermarket chain's private label. Which is the main trade-off?

1. Private label offers assured volume and lower marketing cost but lower margins and dependence on one buyer
2. Private label always earns higher margins than own brands
3. Own brands need no distribution network
4. Private label removes the need to meet food safety standards, because the retailer takes over legal responsibility

10 · Case studies in processing ventures · medium

An integrator in broiler production typically:

1. Supplies chicks, feed and advice to contract growers and buys the birds at a formula price
2. Buys broilers only from spot markets
3. Sells feed and medicines to farmers on credit but plays no part in buying or marketing the birds
4. Owns every farm that raises its birds