What's up with Dairy R&D?
R&D tends to be centralized, with 42% of the respondents having R&D, manufacturing and headquarters at the same location, and 39% with multiple manufacturing sites but centralized corporate R&D. Only about 22% of the dairy product companies surveyed outsource their R&D, and 61% of the outsourced activities reported were in the field of new product development.
Even among those companies that do not outsource, R&D spending is relatively low. A total of 51% of the respondents indicated they would spend only 5% or less of their 2001 revenues on R&D. However, in 29% of the companies surveyed, this represents an increase over 2001 spending. Some 64% will spend about the same as in 2001.
On the other hand, only 3% report that R&D has less impact on ingredient purchasing than the department did five years ago. In 39% of these companies, R&D is reported as having more influence in the purchasing decision-making process, and for 58%, R&D has about the same level of influence as it has in past years.