The role of raw material suppliers in ensuring food safety

Food safety is the most important Supply of raw materials for food industry feature for consumers, so the food law regulates this in detail to ensure that the food the consumer buys meets safety expectations. Food safety is also very important for consumers and producers. All food producers are responsible for ensuring food safety. Therefore, they must pay attention to the quality of raw materials used in the production process. Ensuring food safety in the consumer market of the country, region, city is one of the priority activities to improve the quality of life of people. Continuous work is needed to ensure the quality and safety of food products in the consumer market of any country. Suppliers play an important role in the food industry, the quality of the final product is determined by many factors: One of the most important tools to ensure the high quality of raw materials is the supplier qualification list. Ensuring that input raw materials are hazardous is the most effective way to keep hazards away from food and manufacturing facilities. An approach to food safety should start with the whole supply chain, starting with the suppliers. Selecting suppliers is one of the most important activities in supply chain management.

Raw materials (raw materials, processing aids and packaging materials) are the basis of final food products. Therefore, they must meet the regulatory requirements (safe and legal for your intended use) and your specifications (to contribute to the performance and quality of your process and product).

Historically, research and development have worked alone in selecting new raw materials. But now a wider team of expertise is needed due to greater access to unique and complex materials, global resources, relocation methods, customer locations and regulations. The team assesses whether materials are limited or may cost too much, and determines whether additional measures are necessary to prevent potential safety problems for employees and the product.

Selection of raw materials

Research and development selects the appropriate raw materials based on performance. Performance can cover various areas, such as the specified specifications of the final product (adhesive, thickener, type of resin for plastic packaging, etc.), organoleptic characteristics (taste, color, aroma, texture), product safety characteristics (To reduce the pH or activity of water and preservatives, increase longevity, color or flavor retention, etc.).

Selection of suppliers

To ensure the selection of safe and high quality raw materials, every food factory must follow the precise steps of preparation. This includes defining the specifications of the materials and conducting reviews to ensure compliance with the regulations at all times. If they do not comply, they must be rejected.Selecting suppliers is a very important management process in the food trade that requires well-structured operational methods. In general, there are two ways to select suppliers:

1. Providing individual resources

A supplier can meet all the needs of the buyer.

2. Provide multiple resources

In order to reduce the risk of unavailability of raw materials, the buyer buys raw materials from several suppliers.Working with the right suppliers reduces costs and improves competition. So buying strategy is a vital activity for any food company. Choosing a supplier who can deliver a safe product should be the main goal.

Supply chain management in the food industry

Supplier risk and supply chain management should be the main focus for any business involved in the production, distribution and sale of physical goods. While many entrepreneurs and managers prioritize the production and sale of products, ignoring supply can be a fundamental mistake. Suppliers are key business partners, and mismanagement can lead to the destruction of a company. Suppliers not only provide input for the raw materials used to produce products, but also provide components, labor, and services such as expertise or manufacturing services. Supply management in the food industry is a unique and difficult challenge that requires more focus. Strong supply chain management is especially important to ensure that food businesses can control availability, quality and cost.

Availability

Product availability is critical to maintaining customer relationships, so supply chains need to be adjusted to ensure business-compatible availability.

Quality

Perhaps in no industry is the quality of the final product more directly related to the quality of inputs, including raw materials and production processes, than in the food industry. Supply chain management should focus on developing consistent, high-quality raw materials, as well as building relationships with trusted production partners that deliver consistent results. Poor quality control can lead to inventory loss, high waste and, worst of all, poor customer experience.

Cost

 The most obvious and often challenging factor is revenue management. Food businesses usually cannot pass on increased costs to the customer, and rising costs can deter a business of any size. PersianUtab is responsible for supplying raw materials for the food industry. A variety of raw materials in a wide range of products that improve the taste, texture and quality of food and in a sustainable way helps to market nutritious, safe and healthy foods. With technical knowledge and comprehensive knowledge of markets, industries and products, we provide good advice and with the cooperation of leading manufacturers of materials and additives, we provide you with high quality raw materials.

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The success of your products depends on factors such as taste, appearance, quality and stability, as well as technologies. We are in constant contact with our customers and suppliers to make sure that the demands of the food industry are changing forever. In this way, we develop successful solutions together. PersianUtab insists on superior quality. All raw materials in our laboratory are under strict and regular quality control. The same exact criteria apply to the raw materials we produce ourselves. We choose raw materials more carefully and use natural products with the highest level of purity.

What are the raw materials?

Raw materials are materials or materials used in the initial production or production of goods. Raw materials are goods that are bought and sold in the world commodity exchange. Traders buy and sell raw materials in what is called an invoice market. Because raw materials such as labor and capital are factors of production. Raw materials are sold in areas known as the Invoice Market.

This is because raw materials in addition to labor and capital are factors of production. Raw materials play an important role in the production process because the success of a country’s economy is determined by the amount of natural resources held by a country within its borders. A country with abundant natural resources does not need to import raw materials.

The importance of raw materials in the food industry 

The availability of quality raw materials is a prerequisite in the production of quality food products. With the need to increase process automation to achieve better productivity, stability and cost reduction, strict control over the quality of raw materials has become very important because good quality of raw materials plays an important role in achieving sustainable production of high quality food products. 

The processor can have a positive impact on the quality of raw materials by ensuring that suppliers are carefully selected and verified and that specifications are well designed and applied correctly. 

A well-defined specification should precisely define the description of raw materials by type, size, color, etc. general criteria regarding health, freshness, free from contamination and disease; natural pollutants and foreign bodies; microbiological requirements; chemical instructions; packaging standards; Cold/freezing conditions, storage and transportation conditions, etc. 

Most of the above quality aspects can be explained precisely in the specifications that can be provided to the supplier to ensure a full understanding of the required standard. 

Obviously, to a large extent, the choice of raw materials with the processor depends on the quality of the final product. 

Benefit from our wide range of products and many years of experience. 

Food quality requirements start from the beginning of the production stage. Therefore, the raw and auxiliary materials used in food production are decisive when it comes to high quality end products. The ever-growing needs for these excipients and finished products necessitate increased controls. Therefore, operational and auxiliary materials must also be certified to ensure a perfect standard of hygiene throughout the entire production chain. 

Benefit from the established knowledge of Persian YouTube. This company has several years of experience in providing food raw materials and offers you a portfolio of customized and varied products in all qualities. Tracking the flow of goods is a matter of course for us. 

First class importer of food raw materials

After selecting the raw materials, it is important to choose the right processing technology for the same case. In addition, it is important to decide on the source of the raw materials. All of these requirements can be met through internal resources or can also be related to government oversight requirements. It is also important to perform a detailed cost-benefit analysis before proceeding with the order registration process to reduce production costs and thus increase profit margins. However, there are certain points that need to be considered when choosing a processing technology. This includes: The level of sophisticated machinery or skilled workers required during the process. The amount of force required. Examine whether the process or patent of the product is required to use the selected processing technology.

Examine compliance with specific environmental or pollution regulations. The talent of this technology with the existing environment and conditions. In addition to these considerations, proper planning is also important. Lack of access to the necessary raw materials may lead to cessation of production and idle machinery and manpower. In addition, pre-ordering can lead to working capital being locked out.

What are the different types of food ingredients?

Food raw materials, as a group, include a wide range of products needed by many businesses, including food processing plants and restaurants. Meat, seafood and poultry are collected from slaughtered animals. From trees, grasses, and shrubs, people can gather raw materials such as grains, seeds, and nuts, which are often high in fiber and protein. Fruits, mushrooms and vegetables are collected from fields, caves and trees.

They contain large amounts of vitamins and tend to be sweet or somewhat bitter. Dairy milk comes from many mammals such as cows and goats. While eggs are from birds such as chickens and ducks. Storage of raw materials is also an essential aspect of food quality and safety. Storage equipment must meet strict hygiene standards and maintain a constant and cool temperature to prevent degradation. The food industry is the largest employer in Iran.

Because the food industry accounts for 16.8% of the country’s total industrial jobs. The production and supply of accessible food is essential for the survival and security of a country. The agricultural sector has a strategic role to play in ensuring this and promoting economic development. Ignoring this sector can have unpleasant consequences for the economy

Trust in PersianUtab

The use of new food raw materials in food production is one of the tools of companies to open new markets. In today’s food industry, new food raw materials have been seriously approved and widely used in various food products.

At Persian YouTube, we show our customers that quality and service are important to us, and we only work with trusted manufacturers (preferably long-term) who provide healthy, consistent quality throughout the year. All our products are suitable for human consumption and from the beginning to the end of the production process, detailed quality and health checks are performed. We defend our product and use only first-class export packaging and shipping materials. In this way, our product will reach you in excellent condition.

And finally;

The first step to ensure quality is to provide quality raw materials. Despite market fluctuations, we have been successful in securing the supply of our raw materials from the best companies around the world. This in turn enables us to source high quality raw materials for our products. It is very important that we apply in-depth knowledge about the environment, food industry regulations, technical know-how – which is achieved with experience and above all the selection of the best suppliers, which is measured by quality, reliability and facilities. Production is created.

The result of trusting PersianUtab is the delivery of first-class raw materials to you.

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What are the raw materials?

Raw materials are materials or materials used in the initial production or Persian is the leading importer of food raw materials. Raw materials are goods that are bought and sold in the world commodity exchange. Traders buy and sell raw materials in what is called an invoice market. Because raw materials such as labor and capital are factors of production. Raw materials are sold in areas known as the Invoice Market. This is because raw materials in addition to labor and capital are factors of production. Raw materials play an important role in the production process because the success of a country’s economy is determined by the amount of natural resources held by a country within its borders. A country with abundant natural resources does not need to import raw materials.

Sources and processing of raw materials

After selecting the raw materials, it is important to choose the right processing technology for the same case. In addition, it is important to decide on the source of the raw materials. All of these requirements can be met through internal resources or can also be related to government oversight requirements. It is also important to perform a detailed cost-benefit analysis before proceeding with the order registration process to reduce production costs and thus increase profit margins. However, there are certain points that need to be considered when choosing a processing technology. This includes: The level of sophisticated machinery or skilled workers required during the process. The amount of force required. Examine whether the process or patent of the product is required to use the selected processing technology. Examine compliance with specific environmental or pollution regulations. The talent of this technology with the existing environment and conditions. In addition to these considerations, proper planning is also important. Lack of access to the necessary raw materials may lead to cessation of production and idle machinery and manpower. In addition, pre-ordering can lead to working capital being locked out.

What are the different types of food ingredients?

Food raw materials, as a group, include a wide range of products needed by many businesses, including food processing plants and restaurants. Meat, seafood and poultry are collected from slaughtered animals. From trees, grasses, and shrubs, people can gather raw materials such as grains, seeds, and nuts, which are often high in fiber and protein. Fruits, mushrooms and vegetables are collected from fields, caves and trees. They contain large amounts of vitamins and tend to be sweet or somewhat bitter. Dairy milk comes from many mammals such as cows and goats. While eggs are from birds such as chickens and ducks. Storage of raw materials is also an essential aspect of food quality and safety. Storage equipment must meet strict hygiene standards and maintain a constant and cool temperature to prevent degradation. The food industry is the largest employer in Iran. Because the food industry accounts for 16.8% of the country’s total industrial jobs. The production and supply of accessible food is essential for the survival and security of a country. The agricultural sector has a strategic role to play in ensuring this and promoting economic development. Ignoring this sector can have unpleasant consequences for the economy.

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Sale of food and beverages

Better body

Consumers improve physical health by paying more attention to large nutrients, maintaining a healthy weight, and choosing recommended products to boost immunity. Substances that promote intestinal health, improve hydration and have anti-inflammatory properties will be in the spotlight. They enrich products with substances such as zinc, vitamin C and probiotics. Consumers will focus on quarantine to lose excess weight and improve overall health. The launch of sports nutrition products such as protein drinks, electrolyte compensators, performance boosters, energy boosters and weight loss elixirs will increase. Brands differentiate products from each other by using plant-based and diet-friendly ingredients, as well as combining several functional ingredients in one product, to make consumers more comfortable.

Mode booster

For many consumers, stress is at its highest, which can affect mood. Consumers are looking for products that calm the mind and improve sleep. Another way to create comfort is to use nostalgic flavors that are reminiscent of childhood favorite flavors or seasonal flavors such as lemonade in summer and pumpkin in autumn. Disrupting the pandemic also creates the need for excitement, so nostalgia appears in new forms, such as products familiar with new ingredients or new products with nostalgic flavors.

Culinary tourism

Because consumers spend less time traveling and going to restaurants, they look for products that provide an adventurous experience at home.

Safety

Consumers make purchasing decisions based on what makes them feel safe, which affects the food and beverage industry in several ways. Food service brands need to be transparent about business practices so that consumers feel safe when eating out. Consumers will pay more attention to product packaging and will prefer disposable and anti-tamper packaging due to health and pollution concerns. The boom in online shopping will continue until there is a significant reduction in disease rates and vaccines are widely available.

Sell ​​food and beverages online

Consumers are increasingly buying food online. This is easy and convenient and the food is delivered to the door. A professional and attractive online store can grow its sales. Selling a variety of foods and beverages not only improves the customer experience, but also allows you, as a salesperson, to generate more revenue stream for your company. Many consumers prefer to connect more directly with the manufacturers of the products they consume. Successful producers are those who can facilitate this interaction. PersianUtab is one of the most successful companies in the field of food and beverage sales. The company respects its consumers and buyers by offering quality and premium products.

Ways to increase Sale of food and beverages

Have an online service for Sale of food and beverages

Consumers use their phones to get what they want. From on-demand car service to daily coffee. Help your customers make purchases by providing the ability to order food and drinks from your mobile device. Your customers can order easily without having to stand in long queues!

Pro pricing

Some places increase their sales by offering reasonable prices to customers. It has been proven that this method is effective in increasing the customer loyalty and fan satisfaction in the work process and increasing revenue.

Create a cross-Sale strategy

Cross-selling is the art of recommending extras that praise the product that the buyer intends to buy. In your online sales, it should have a suggested engine that enables buyers to add items to their previous order.

Provide a variety of services

Customers are different and their buying habits can be different. You just have to be more discriminating with the help you render toward other people. By offering a variety of services and shopping options, you can reassure them that they are completely confident in their purchase.

Focus on the buyer experience

All this advice goes back to the most important goal of creating an amazing experience. Focus on comfort, quality, and creating a food and beverage ordering experience to succeed.

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PersianUtab is the leading importer of food and beverages

Due to the long history of trade with international markets and also due to the special characteristics of Iranian products that are originally organic, healthy, halal and high quality, Iranian quality products are well known to buyers and consumers around the world. The impressive reception of the Iranian booth in any international food exhibition means that there is a variety of quality compared to other similar products from other countries. Over the years, Iranian producers and exporters of agricultural and industrial products have created the necessary infrastructure to create and expand their businesses, and now have a variety of customers around the world. PersianUtab is a company specializing in the import of food and beverages. Our goal is to provide the best possible quality to customers in services and products. Connecting with trusted importers and distributors is important for trading on PersianUtab. This company is one of the largest importers and distributors of quality packaged goods in Iran and even outside Iran. We select the best food and beverage suppliers to offer the best products. By providing up-to-date customer information in the market, we can help our customer better assess their risks and opportunities.

Below are 5 of the most important food and beverage trends that are happening right now

Food kits continue to grow

Food kits are able to provide value in two areas of consumerism that are very popular. Food kits meet the growing demand for healthy meals and snacks, while making home cooking both easy and affordable.

From foods and supplements

Stores are fast becoming the delivery system for countless nutrients, vitamins, supplements and great foods. The growth trend is expected to continue in the coming years.

Food delivery becomes part of everyday life

In the past, food delivery was for special foods or city dwellers in crowded cities like New York. However, the delivery of meals is directed to a mainstream. Statistics show that there has been a 20% growth in this area. Going to grocery stores and restaurants amid the outbreak of the corona virus has boosted such consumer demand.

New categories of vegan food

The vegan diet is a very popular vegetarian diet that many people are interested in for a variety of reasons such as helping the environment, ethical reasons and health reasons. The number of people using this diet is increasing rapidly. There are new packages in this field that are specially designed for people who follow plant-based diets. An interesting example of this process is vegan collagen. Technically, vegan collagen is not derived from animal skin collagen or bone tissue. Food and beverage manufacturers have been able to reproduce plant-based collagen in the laboratory.

Demand for keto products is increasing

The keto diet includes eating very few carbohydrates instead of high-fat foods. This diet, first popularized by Dr. Atkins, has been revived in recent years. While the merits of this regime are debatable, there is no doubt that adhering to it is a challenge in the long run. However, thanks to a large number of new keto foods, keto diets are no longer limited to steaks and salads. Instead, people who eat keto can now use their favorite foods, such as cookies, bread, etc., in keto-friendly versions.

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Stages of food supply chain

The food supply chain consists of three stages

Preparation: refers to the planning of production and loading of products in isothermal containers.

Transportation: refers to the special location of food in transportation units to prevent any possible contamination or absence of waste.

Consumption point: refers to the examination of dishes in good working conditions and placing cold food in cold containers or refrigerators and hot food on hot tables until delivery to final customers.

In addition, during these steps, processes such as packaging, warehousing, product handling (some of which are frozen or refrigerated), labeling, repackaging, picking, and more are performed.

Factors that have affected food supply

In recent years, food industry procurement has been affected by various factors

1. Changes in consumer behavior:

Preference for healthy low-sodium, low-calorie, natural, organic products, without additives and transgenics, demand for diet products such as lactose, gluten, vegetarian local products and fresh.

Need to know where products have been processed or grown.

– A priority for personalization.

– Need to prepare food at the time and place desired by the customer.

Factors that have affected food supply

In recent years, food industry procurement has been affected by various factors

1. Changes in consumer behavior:

Preference for healthy low-sodium, low-calorie, natural, organic products, without additives and transgenics, demand for diet products such as lactose, gluten, vegetarian local products and fresh.

Need to know where products have been processed or grown.

– A priority for personalization.

– Need to prepare food at the time and place desired by the customer.

– Supply fluctuations increase due to geopolitical and climatic issues.

– Fluctuations in international trade conditions.

Stricter rules and standards, especially those related to food safety.

– Demographic and social changes.

– Rapid technological advances to address supply chain issues in the early stages.

– Sustainability rules and requirements.

2. Food industry trends

Even before the COVID-19 attack, the supply chain in the food industry was changing. However, the epidemic has accelerated some of these trends

3. Distribution centers

– Distribution points

– Improve the customer experience in stores

– Facilities close to customers

4. Distribution channels

– Effect on speed depending on its location, time and speed

– Consumer priority depending on the situation (emergency purchase or repurchase)

– Combined transportation and central distribution

5. Packaging and mold

– Shopping experience due to package design

6. Technology

– Inventory visibility across the network

– Control towers

– Network modeling techniques and scenario analysis

PersianUtab is a producer of food raw materials

One of the activities that has been considered over the past few years is food procurement. Thanks to them, we can eat products produced anywhere in the world, even if we are not aware of it.Food preparation includes a variety of foods, from beef to fruits and vegetables, raw materials and cooked food, regardless of the form and presentation.This is critical to complete supply chain safety, forcing us to consider several issues such as distance from origin to destination, temperature control, cross-contamination, driver training and regulations.PersianUtab adheres to the principle of “quality first” at every stage of the supply chain, from the supply of raw materials to the production of products, containers and packaging, sales and safety assessment. Underlying this approach is our commitment to providing good products that has guided our company since its inception. Our basic position is to take full responsibility for quality through the direct participation of Persian YouTube and its group companies in every process. Good products start with good ingredients.With extensive expertise in materials description, trade and sales, we can direct raw materials to the right channels and bring their quality to market. We also have international logistics capacity for the sale and transportation of materials worldwide.Raw and secondary materials are traded as goods in local, national and even international markets.We offer the production and qualification of high quality materials tailored to the needs of industrial users.Manufacturers are very important in providing good materials. Our dedicated staff regularly visits suppliers to share our core food production ideas and come together to make improvements.

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Most businesses produce products that meet standard requirements. Nevertheless, there is poor quality, non-standard and counterfeit food in the market.One of the most important issues for government officials, manufacturers, retailers, public organizations and, of course, customers, is to prevent poor quality products. When exercising state control over compliance with the requirements of technical regulations on food products, a set of measures is taken to prevent the production and trafficking of counterfeit food products.

Raw material

Raw materials are materials used in the initial production of goods. Raw materials are goods that are bought and sold in the world commodity exchange. Traders buy and sell raw materials in the invoice market. Because these materials, like labor and capital, are factors of production.Raw materials are used in many products. They can take many forms. The type of inventory of raw materials required by the company depends on the type of construction.

For manufacturing companies, inventory of raw materials requires careful budgeting and a special framework for accounting in the balance sheet and profit statement.All inventories, including raw materials inventories, should be valued at their comprehensive cost. This means that its value includes transportation, storage and preparation.

Direct and indirect raw materials

Direct raw materials are materials that companies use directly to make a final product such as wood for chairs. Indirect raw materials are not part of the final product but instead are comprehensively used in the production process.Food raw materials, as a group, include a wide range of products needed by many businesses, including food processing plants and restaurants. Meat, seafood and poultry are collected from slaughtered animals.

From trees and shrubs, people can gather raw materials such as grains, seeds, and nuts, which are often high in fiber and protein.Fruits, mushrooms, and vegetables are harvested from fields, caves, and trees, and are high in vitamins and tend to be sweet or somewhat bitter. Dairy milk comes from many mammals such as cows and goats, while eggs come from birds such as chickens and ducks.Meat, seafood and poultry include the slaughter of animals. Therefore, their muscle tissue can be removed and used for cooking and food.

Food industry

The food industry is one of the most diverse industrial sectors. The growing range of products, as well as the problems associated with the transportation, storage and shelf life of food, led to the gradual introduction of new technologies and production processes. In addition, demographic pressure and unequal distribution of agricultural resources are affecting the food industry, forcing food producers to improve distribution and logistics processes.

An additional factor that still has a major impact on the dynamic development of the food industry is the ongoing economic and marketing pressures that are forcing the food sector to wage a constant war for new customers. This is mainly due to the fact that the food industry is offering new and more diverse products to the market with a large number of equivalents and alternatives .Food products in world production are growing year by year, and a significant part of this increase is attributed to the increasing demand for processed foods and beverages, mainly in developing countries, whose markets are not yet saturated. Food companies invest in raw materials to produce the final food products for the general public. These companies often work with raw food producers from around the world.

Have a wide range of products and many experiences with us

Food quality requirements start from the beginning of the production stage. Therefore, the raw materials and auxiliaries used in food production are crucial when it comes to high quality end products. The ever-growing needs for these auxiliaries and end products necessitate increased controls. Therefore, operating materials and auxiliaries must also be certified to ensure a complete standard of hygiene throughout the production chain.

Take advantage of our established knowledge in PersianUtab. We have several years of experience in selling raw materials, food and beverages, and we offer you a portfolio of suitable and diverse products in all qualities. Tracking the flow of goods is a matter of course for us.

Sale of food raw materials

Raw materials are food sources on which the production of functional foods and nutrients is based. The main criterion for the use of a particular type of raw material is the availability of its complete and accurate specifications in terms of quality, safety and originality. These characteristics include information on a wide range of indicators, including chemical composition and physical and chemical properties, structure, sensory properties, and in some cases, their origin. Given that most functional foods and nutrients are produced not only in the country but also in global markets.

The use of new food raw materials in food production is one of the tools of companies to open new markets.In the food industry today, serious approved food ingredients are widely used in various food products.

Selection of suppliers selling food raw materials

To ensure the selection of safe and high quality raw materials, every food factory must follow precise preparation processes. This includes defining the specifications of the materials and conducting inspections to ensure compliance with the regulations at all times. If they do not comply, they must be rejected.Selecting suppliers is a very important management process in the food trade that requires well-constructed operational methods. In general, there are two ways to select suppliers

Providing individual resources

A supplier can meet all the needs of the buyer

Provide multiple resources

In order to reduce the risk of unavailable raw materials, the buyer buys raw materials from several suppliers.Working with the right suppliers reduces costs and improves competition. Therefore, buying strategy is an important activity for any food company. Choosing a supplier who can deliver a safe product should be the main goal.Today, many companies around the world are engaged in the supply and sale of food raw materials. But it should be noted that the presence of quality raw materials is a guarantee of quality product. After companies, these materials can be purchased, which are the best in this field.PersianUtab Company is one of the creative companies in the field of selling raw materials for food industry.

The company is a leading food distributor and service provider in the beverage, dairy, confectionery, food supplement and food industries.We provide food and beverage raw materials to food and beverage manufacturers.We work with valued suppliers and our team of expert staff to help our customers develop innovative new products and applications.In collaboration with our expert staff team, we produce new products that fit formulas and success plans.

One of the factors involved in the sale of food raw materials is the cost of raw materials.

Raw material costs refer to the cost of the components of the final product, of which there are three costs:

1. The cost of goods of the seller and the manufacturer

2. Labor costs

3. Depreciation costs

Raw materials are classified as direct costs in the case of corporate profits and losses. Because they are directly involved in the production of the product or service. By changing the cost of raw materials along with the volume of production, variable costs are considered.

Supplying and purchasing affordable raw materials can be a competitive advantage. As a result, managers and owners of companies are closely monitoring the cost of raw materials.

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