Economics and management of enterprises

Economic viability of technological innovations in functional spreads: a cost-benefit analysis of plant fat additives

Economic Annals-XXI

Economic Annals-XXI: Volume 202, Issue (3-4), Pages: 84-95

Citation information:
Alzhaxina, N., Tuyakbayeva, Zh., Dalabayev, A., & Tolganay, Ye. (2023). Economic viability of technological innovations in functional spreads: a cost-benefit analysis of plant fat additives. Economic Annals-XXI, 202(3-4), 84-95. doi: https://doi.org/10.21003/ea.V202-08

EA-XXI-V202-08Download PDF

Nazym Alzhaxina
PhD (Engineering),
Astana Branch, Kazakh Research Institute of Processing and Food Industry LLP
47 Al-Farabi Avenue, Nur-Sultan, 010000, Republic of Kazakhstan
nazjomka@mail.ru
ORCID ID: https://orcid.org/0000-0001-7855-0940

Zhanat Tuyakbayeva
PhD (Engineering),
Astana Branch, Kazakh Research Institute of Processing and Food Industry LLP
47 Al-Farabi Avenue, Nur-Sultan, 010000, Republic of Kazakhstan
zhanat_tuyakbaeva@mail.ru
ORCID ID: https://orcid.org/0000-0001-7271-2822

Askhat Dalabayev
MA (Engineering),
Assistant Professor,
Technical Faculty,
Astana Branch, Kazakh Research Institute of Processing and Food Industry LLP
47 Al-Farabi Avenue, Nur-Sultan, 010000, Republic of Kazakhstan
dalabaev_askhat@mail.ru
ORCID ID: https://orcid.org/0000-0001-7811-0697

Yerbolat Tolganay
MA (Engineering),
Astana Branch, Kazakh Research Institute of Processing and Food Industry LLP
47 Al-Farabi Avenue, Nur-Sultan, 010000, Republic of Kazakhstan
tolganay2707@gmail.com
ORCID ID: https://orcid.org/0000-0003-0273-1563

Economic viability of technological innovations in functional spreads: a cost-benefit analysis of plant fat additives

Abstract. The burgeoning interest in functional foods has significantly influenced various sectors, most notably the food industry. The transition from traditional spreads to functional spreads fortified with plant-based fat additives signifies an essential progression in this realm. While these innovations offer substantial health benefits, they also pose economic implications that have yet to be fully analyzed. Therefore, this research focuses on the economic viability of incorporating technological innovations in functional spreads, using Kazakhstan as a case study for the application of plant fat additives. By employing cost-benefit analysis (CBA) from 2015 to 2022 coupled with a sensitivity analysis, the study critically assesses the economic ramifications of this technological shift. The research employs a mixed-methods approach, amalgamating qualitative interviews with industry stakeholders and a quantitative assessment of production costs, market prices, and expected returns. Further, mathematical models and statistical tools, such as regression analyses and Monte Carlo simulations, are applied to offer a comprehensive understanding. The study demonstrates that the introduction of plant fat additives into functional spreads can be economically viable under specific market conditions. It also identifies potential externalities and subsidies that could influence economic outcomes. Importantly, the research uncovers that, despite initial high costs, the long-term benefits, both monetary and societal, tend to outweigh the economic constraints. The paper concludes with policy recommendations that aim to create a conducive environment for fostering innovation while maintaining economic sustainability. This research fills a significant gap in the current literature by providing a multi-dimensional view of the economic factors influencing the adoption of technological innovations in functional spreads, thereby serving as a cornerstone for future research and policy implications.

Keywords: Functional Spreads; Plant Fat Additives; Economic Viability; Technological Innovations; Cost-Benefit Analysis; Kazakhstan; Food Industry; Health Benefits; Sensitivity Analysis; Market Conditions; Externalities; Subsidies; Economic Sustainability; Policy Recommendations

JEL Classifications: L66; Q13; M11; O32; P42

Acknowledgements and Funding: The authors extend their gratitude and appreciation to the Ministry of Agriculture of the Republic of Kazakhstan for the financial support of the project «Development of Technology for Functional Spreads from Plant Raw Materials» within the framework of the scientific and technical program for 2021-2023, «Development of Modern Technologies for the Production of Dietary Supplements, Enzymes, Starters, Starch, Oils, etc., for the Advancement of the Food Industry» (BR10764977).

Contribution: The authors contributed equally to this work.

Data Availability Statement: The dataset is available from the authors upon request.

DOI: https://doi.org/10.21003/ea.V202-08

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Received 20.10.2022
Received in revised form 22.11.2022
Accepted 26.11.2022
Available online 10.04.2023

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