Raw materials and process materials
Raw materials refer to the ingredients that are used to produce various food products such as Grains, Vegetables, Fruits, Meat and poultry, Seafood, Dairy products, Sugar, Oils, and fats.
In delicacy, gourmet and staple food manufacturing, inputs fall into two categories that behave very differently on a plant's books. Raw materials are the ingredients that actually become the product: grains such as wheat, corn and rice; vegetables such as potatoes and carrots; fruits such as apples and bananas; meat and poultry such as beef, chicken and pork; seafood such as fish and shellfish; dairy products such as milk and cheese; sugar such as cane sugar and beet sugar; and oils and fats such as vegetable oil and butter.
Process materials are used during manufacturing but are not part of the final product, though they may facilitate production or impart certain characteristics to it. These include water used at various stages of production, salt as a preservative and flavour enhancer, spices and herbs for flavouring, leavening agents such as yeast and baking powder, emulsifiers to combine water and oil-based ingredients, and stabilizers and thickeners such as corn starch and gelatin.
The distinction matters commercially, not just technically. Raw materials are often a significant cost for manufacturers, while process materials are treated as operational expenses. Getting the classification right shapes how a plant budgets, sources and accounts for its inputs.
The market for raw materials and process materials for general provisions and staple foods is large and competitive, with many players operating in the industry, including Archer Daniels Midland (ADM), Cargill Inc., Bunge Limited, Ingredion Inc., Tate & Lyle PLC, DuPont de Nemours, Inc., Kerry Group, Royal DSM NV, Corbion NV and Chr. Hansen Holding A/S, among others. Production of these materials is often highly specialized and requires significant investment in equipment, technology and expertise.