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                        BAKED, LEAVENED BREADS
 
                              Prepared By
                            Richard J. Bess
 
                              Reviewed By
                            William Carman
                               Ron Wirtz
 
                     INDUSTRY PROFILE #19 (1991)
 
                              VITA
 
                         Published By
                VOLUNTEERS IN TECHNICAL ASSISTANCE
                   1600 Wilson Boulevard, Suite 500
                     Arlington, Virginia 22209 USA
                       Telephone: (703) 276-1800
                          Fax: (703) 243-1865
                         Telex: 440192 VITAUI
                            Cable: VITAINC
                     Internet: vita@gmuvax.gmu.edu
                          Bitnet: vita@gmuvax
 
                      INDUSTRIAL PROFILES
 
THIS INDUSTRY PROFILE IS...
one of a series briefly describing small or medium-sized industries. The Profile provides basic
information for persons wishing to start manufacturing plants in developing countries. Specifically,
the Profile contains general plant descriptions, financial and technical factors for plant
operation, and sources of information and expertise. The series is intended to be useful in determining
whether the industries described warrant further inquiry, either to rule out or to decide
upon investment. The underlying assumption of the profiles is that the individual making use of
them already has some knowledge and experience in industrial development.
 
Dollar values are listed only for machinery and equipment costs, and are primarily based on
equipment in the United States. The prices do not include shipping costs, duty, or taxes, which
must be considered and will vary greatly from country to country and with the type of equipment.
Requirements, but not costs, are given for land, labor, materials, fuel, etc., to provide potential
investors with a general checklist of considerations for setting up a business.
 
THIS INDUSTRY PROFILE IS NOT...
a substitute for a feasibility study. Before any investment is made in a plant, a thorough feasibility
study should be conducted. This may require skilled economic and engineering expertise. The
following questions illustrate the range of answers that may be required:
 
  *    Is there a market for the product? What is the extent of the present demand for the product,
       and how is it being satisfied?
 
  *    Will the estimated price and quality of the product make it competitive?
 
  *    How will the plant be financed?
 
  *    Has a realistic time table been developed for construction, equipment delivery, obtaining
       materials and supplies, training, and start up?
 
  *    How are needed materials and supplies to be procured? How will machinery and equipment
       be maintained and repaired?
 
  *    Are trained personnel available? Is training available?
 
  *    Are there adequate facilities for transportation, storage, power/fuel, communication, water,
       etc.?
 
  *    What management controls for design, production, quality control, and other factors have
       been considered?
 
  *    Will the industry complement or interfere with development plans for the area?
 
  *    What social, cultural, and technological considerations must be addressed regarding the
       manufacture and use of this product?
 
  *    What will be the environmental impact of the manufacture and use of the product?
 
Fully documented information responding to these and many other questions should be compiled
before proceeding with implementation of an industrial project.
 
Professional engineers who specialize in industrial design can be found through their national
associations or by referring to the published cards in many engineering journals. The services of a
professional engineer are desirable in the design of even small industrial plants. An experienced
engineer can design a plant that provides the greatest economy in the investment of funds and
which will be capable of expansion without extensive alteration.
 
Manufacturers of industrial equipment employ engineers familiar with the design and installation
of their specialized products. These manufacturers are usually willing to give prospective customers
the benefit of engineering advice to help determine the suitability of their equipment in any
proposed project.
 
                          ABOUT VITA
 
Volunteers in Technical Assistance (VITA) is a private, nonprofit, international development organization.
It make available to individuals and groups in developing countries a variety of information
and technical resources aimed at fostering self sufficiency. VITA provides assistance in
needs assessment and program development support, by-mail and on-site consulting services, information
systems training, and management of long-term field projects. Special emphasis is
placed on the areas of agriculture and food processing, renewable energy applications, water supply
and sanitation, housing and construction, and small business development--areas in which self
sufficiency in the community is an essential step toward the well-being of the country.
 
On industrial development projects, VITA provides a range of assistance on a fee-for-service
basis. VITA keeps its costs low because of the extensive participation of skilled VITA Volunteer
industrial and process engineers.
 
The author and reviewers of this industry profile are VITA Volunteers, specialists in the field,
who have donated their time to the preparation and review of this profile.
 
              Volunteers in Technical Assistance (VITA)
                   1815 North Lynn Street, Suite 200
                     Arlington, Virginia 22209 USA
                        Telephone 703-276-1800
                          Telex 440192 VITAUI
                           Fax 703-243-1865
                         BITNET: VITA @ GMUVAX
 
                    BAKED, LEAVENED BREADS
 
Prepared by:  Richard J. Bess
Reviewed by:  William Carman
              Ron Wirtz
 
PRODUCT DESCRIPTION
 
The Product
 
The product is a baked, leavened food whose basic ingredient is flour or meal, to which water is
added, and often fat and salt, and sometimes sugar. The principal leavening agent is usually yeast.
The product is made in units (loaves or rolls) in a variety of sizes and shapes to suit local laws,
customs, and tastes. Spices, fruits, nuts, etc., may be added, depending on product and locality.
 
The Facility
 
This profile describes a small bakery operating with a single shift and producing 100 tons of
baked products a year. It also describes a medium-sized plant operating on the same basis but
producing 250 tons of baked goods a year.
 
Dry materials are received and water added to make dough, which is then blended and processed
in a sequence of steps involving mixing the dough, allowing the dough to rise, then portioning,
shaping, baking, cooling, and wrapping the loaves to trade requirements.
 
GENERAL EVALUATION
 
Outlook
 
Economic. The economic prospect should be good because many countries throughout the world
consume baked goods. Even in areas where rice is the staple food, the consumption of baked
goods made from wheat flour is steadily increasing. And in times of economic downturn in more
affluent areas, many customers switch from more expensive foods to bakery products.
 
Technical. Small, batch-process bakeries producing 200 to 500 kg daily, sold in one or a few locations,
can maintain satisfactory market shares.
 
Manufacturing Equipment Flexibility
 
Flexibility depends on the variety of special products made. This in turn depends on production
volume and market demands.
 
Knowledge Base
 
Special knowledge of food chemistry, mechanical engineering, and trade economics are needed.
Commercial baking experience is required. Specialized apprenticeship or formal training in a technical
school is highly advisable.
 
Quality Control
 
Quality control aims at freedom from adulteration of product, quality assurance of ingredients and
products, sanitary packaging practices, and proper storage. Quality control in production involves
such variables as density, porosity, appearance, weight, mixture properties, volume, temperature
controls, etc. These factors require instrumentation and laboratory testing in proportion to plant
capacities.
 
Constraints and Limitations
 
Traditionally, continuous rather than batch mixing is needed for economic operation as production
increases. The production level above which continuous operation is needed depends largely on
labor costs. But if modern, high-speed mixing is used, energy costs may become important.
 
MARKET ASPECTS
 
Users
 
Users are individual consumers and institutions. Individuals may obtain a wrapped unit either
directly on the premises where baked goods are made, or transported from a large wholesale bakery
in a distant place. Institutions of ten obtain their bread from wholesalers. The degree of integration,
including transportation and labor costs, determines the cost-price relationship.
 
Suppliers
 
Suppliers include millers who mix grain types and bulk ship through food brokers to bakeries.
Construction services originate or improve the plant. Machine erectors install special-purpose
devices. Public utilities provide water, sanitation, and electricity.
 
Sales Channels and Methods
 
Sales channels and methods depend on the origin of merchandise. Sales to consumers may be made
at the bakery site or at multiple sites integrated by centrally located dominant producers. Advertising
may cost from 0.1 percent to 5 percent of sales.
 
Geographic Extent of Market
 
The geographic range of individual bakeries depends on their capacities, transportation costs, and
competition. For bread, the range is usually limited by the extent to which distant markets can be
reached in a day's time by surface transport. Improvements in technology have extended the shelf
lives of some other kinds of bakery goods from large bakeries.
 
Competition
 
In very thinly populated areas, demand may be so low that many products are available only
through wholesale distributors. In sparsely populated areas, about 90 percent of the market will be
controlled by small producers. In large cities with large producers, the price structure may be
dominated by a few of them. However, small companies may also set prices if the industry does
not quickly pass on cost savings to consumers.
 
Market Capacity
 
User income level is a major determinant of baked goods acceptability. About 45 kg of the product
per year per capita is consumed in the United States. In low-income areas of the world 300 kg
would be likely. Baked goods consumption in most high-income societies tends to decline because
as income goes up people's preferences shift from cereal-based food to meat. In the United States,
the decline is about 1 percent per capita annually.
 
PROCESS DESCRIPTION
 
Sample Layout of a Medium-Size Plant, about 250 square meters.
 
The space required depends not only on the level of production and the kind of product, but on
whether production involves two or three shifts per day. <see plant layout>
 
PRODUCTION AND PLANT REQUIREMENTS
 
                                  Small Plant     Medium Plant
 
Annual Output:                    100 tons/yr     250 tons/yr
 
1. Infrastructure, Utilities
   Land                             750 sq m         750 sq m
   Building                         150 sq m        200 sq m
   Power                            50 KW           100 KW
   Fuel oil                         4 KW             4 KW
   Water                            1 t/hr           2 t/hr
   Other
 
2. Major Equipment & Machinery (thousands of $US)
 
   Tools & Machinery
   ingredient handling-RR car
     unload, pneumatics trucks,
     conveyors, weigh and meter        300              500
   dough-handling troughs,
     mixers, proffers, dividers,
     rounders, molders, and
     homogenizers                      400             900
   baking and cooling ovens,
     conveyors, and racks              200              400
   bread-handling slicers,
     wrappers, etc.                     50              80
 
   Support Equipment & Parts
   Refrigerators, pan washers,
     depanners, lab equipment           100              500
 
  *TOTAL ESTIMATED COST
   building and land
   turnkey on stream                  1,800           3,000
 
*Based on $US 1987 prices. The estimated costs provide a general idea of the investment required
for machinery. Actual costs will depend on just what is purchased, when, and where.
 
3. Materials & Supplies, tons per year
 
   Raw Materials
   flour                            55              140
   water                           200              500
   salt                              0.8              2.0
   sugar                             1.2              3.0
   milk                              1.2              3.0
   fat                               2.1              5.3
   yeast                            0.4              1.0
 
   Supplies                   Small Plant   Medium Plant
   miscellaneous food items, shop,
     office, and sanitation
 
   Packaging
   cartons, boxes, foils, and films
 
4. Labor
 
   Skilled
   supervisor                                1                      2
   Semi-skilled
   mixer, weigher, batcher                   3                      5
   (3 for a three-shift operation)
 
   Unskilled
   machine operators                        10                     15
 
   Indirect
   warehouse, QC, office                     2                      4
 
5. Distribution/Supply flow
 
   Amount in per day                        200 kg                   500
   Amount out per day
   (loaves/units)                            500                   1,250
 
6. Market Requirements
 
   Retail outlets                          1 or 2                  2 to 5
 
7. Other Requirements
 
REFERENCES
 
Technical Manuals & Textbooks
 
Green, Don W. (ed.), Perry's Chemical Engineers' Handbook. New York: McGraw-Hill, 1984.
 
Kutz, Myer (ed.), Mechanical Engineers' Handbook. New York: McGraw-Hill, 1986.
 
Matz, Samuel A., Bakery Technology: Nutrition, Packaging, Product Development. McAllen, Texas:
Pan-Tech International, 1989.
 
McGraw-Hill Encyclopedia of Science and Technology, 20 v. New York: McGraw-Hill, 1987.
 
Pomeranz, Y., Modern Cereal Science and Technology, New York: VCH Publishers, 1987.
 
Pyler, Ernst J., Baking Science and Technology. Kansas City, Missouri: Sosland Publishers, 1988.
 
Sultan, W., Practical Baking, 5th ed. Florence, Kentucky: Van Nostrand Reinhold.
 
Periodicals
 
Bakery Production and Marketing. Chicago: Gorman Publishing Company, 8750 West Bryn Mawr
Avenue, Chicago, Illinois, 60631 USA. 13 issues per yr.
 
Bakery Production and Marketing Buyer Guide, Chicago: Gorman Publishing Co.
 
Bakery Production and Marketing Red Book, Chicago: Gorman Publishing Co.
 
Food Processing. Chicago: Putnam Publishing Company, 301 East Erie Street, Chicago, Illinois
60611 USA.
 
Trade and Professional Organizations
 
American Institute of Baking, 1213 Bakers Way, Manhattan, Kansas 66502 USA. This not-for-profit
education and research organization offers a large variety of training and certification
courses in bakery technology. Some courses are offered by correspondence, and some course brochures
are available in Spanish.
 
American Society of Bakery Engineers, 2 North Riverside Plaza, Room 1733, Chicago, Illinois
60806 USA.
 
Retail Bakers of America, 6525 Belcrest Road, Hyattsville, Maryland 20782 USA.
 
VITA Resources
 
VITA has a number of documents on file dealing with industrial processes. In addition, VITA can
assist with plant design, equipment acquisition, etc., on a fee-for-service basis.
 
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