Agricultural residues and by-products provide significant opportunities for processing. For example, when processed, paddy yields rice-based food products, starch, syrup, and rice wine. From bran extract comes oil, de-oiled cake and cattle feed. Food processing industries can be characterized as modern or traditional. Modern plants in developing countries initially centred on foods derived from imported meats, cereals and dairy products.
Modern enterprises are highly sophisticated agro-industrial systems.
Procurement, harvesting, processing, packaging, storage, distribution of products interlock. Market demand is influenced by a number of factors even external to the country in which they operate. These enterprises operate within the boundaries of each country's particular socio-economic, administrative, political and financial framework as illustrated in Figure 1. They are often characterized by a complex web of products and by-products. A sugar system for example, can comprise a wide range of food products.