Mega Food Parks: Opportunities & Ops
Mega Food Parks: Opportunities & Ops
SUBMITTED TO:-
DR. NARENDRAN SIR
ASSISTANT PROFESSOR, IIPM
SUBMITTED BY:-
PRATHAMESH GANPAT AWADE
21 PGDM ABPM 03
TABLE OF CONTENT
1. Executive Summary 2
2. Introduction 4
3. History of Mega Food Park 5
4. Mega Food Park 5
5. Operations 6
6. Future of Farming 7
7. Features of Mega Food Park 8
8. Opportunities 9
9. Concept of Mega Food Park 10
10. Satara Mega Food Park 13
12. Objectives 26
13. Major Issues 27
14. Suggestions 28
15. Conclusion 29
16. References 30
1
EXECUTIVE SUMMARY:-
Mega Food Park is to provide modern infrastructure facilities for the food processing along the
value chain from the farm to the market. Located in one of the most agri-rich areas of India, the
facility is foreseen as the destination for sourcing food products for domestic and international
markets in future. The project is supported and approved by Ministry of Food Processing,
Government of India, and the State Government of Madhya Pradesh under Mega Food Parks
Scheme to provide all infrastructural facilities under one roof. With 22,000-tonne storage capacity,
30 food processing companies are expected to generate 4000 jobs besides benefiting farmers from
the adjoining districts of Kolar, Shimoga and Tumkur, which are rich in vegetables, fruits, millets,
and oilseeds. To give a major boost to the food processing sector by adding value and reducing
food wastage at each stage of the supply chain with particular focus on perishables, Ministry of
Food Processing Industries is implementing Mega Food Parks Scheme in the country. Mega Food
Parks create modern infrastructure facilities for food processing along the value chain from farm
to market with strong forward and backward linkages through a cluster-based approach. Under the
Scheme, Government of India provides financial assistance upto Rs. 50.00 Crore per Mega Food
Park project. The park will provide common facilities such as water, electricity and effluent
treatment apart from specialized facilities like cold storage, ware housing, logistics and backward
integration through the network of primary processing centers and collection centers. The goal of
the Mega Food Park Scheme (MFPS) is to provide modern food processing infrastructure facilities
along the supply chain from farm to shop. The Scheme of Mega Food Park aims at providing a
mechanism to link agricultural production to the market by bringing together farmers, processors
and retailers so as to ensure maximizing value addition, minimizing wastage, increasing farmers
income and creating employment opportunities particularly in rural sector. The Mega Food Park
Scheme is based on “Cluster” approach and envisages creation of state of art support infrastructure
in a well-defined agri / horticultural zone for setting up of modern food processing units in the
industrial plots provided in the park with well-established supply chain. Mega food park typically
consist of supply chain infrastructure including collection centers, primary processing centers,
central processing centers, cold chain and around 25-30 fully developed plots for entrepreneurs to
set up food processing units. These Mega Food Parks are expected to provide high quality food
processing infrastructure near the farms. Mega Food Parks Scheme (MFPS) is a program of the
2
Ministry of Food Processing Industry, Government of India, introduced in the eleventh five year
plan. The primary objective of the MFPS is to provide adequate infrastructure facilities for food
processing along with the value chain from the farm to market. Satara Mega Food Park is promoted
by the promoters of BVG Group, that is India’s Largest Integrated Services Company, with 70,000
people serving 750 clients across 22 states. Satara Mega Food Park is promoted by the promoters
of BVG Group, that is India’s Largest Integrated Services Company, with 70,000 people serving
750 clients across 22 states.
3
INTRODUCTION
Nowadays, India is the fastest-growing economy in the world and is home to over 1.3 billion
people. The country’s rising disposable income has fueled the growth of the world’s largest
consumer market. India is amongst the largest producers of food in the world. India is occupied
1st position in milk production and 2nd largest producer of fruits, vegetables, fish producer in the
world. The nation has an abundant source of raw material base for the food processing industry.
Nevertheless, less than 2- 5% of the country’s natural produce is processed due to lack of
processing facilities, infrastructure and technology. Almost 25-30 per cent of agricultural produce
is estimated to be wasted in the absence of proper processing mechanism. Only 7 per cent of the
total Indian perishable produce is processed, which is extremely low compared to countries such
as the US (65 per cent) Philippines (78 per cent) and China 23 per cent). Become conscious the
need for improving capacity of the food processing industry, the government has taken several
initiatives to stimulus the growth of the sector. One of the significant initiative is Mega Food Parks
scheme with the view to establish mega food clusters in India. ‘Mega Food Parks’ scheme it is
based on the cluster approach for developing food processing industries. Mega Food Park is to
provide modern infrastructure facilities for the food processing along the value chain from the
farm to the market.
The Mega Food Park (MFP) shall make available the latest food processing technologies to
manufacturers and marketers through international tie-ups. Located in one of the most agri-rich
areas of India, the facility is foreseen as the destination for sourcing food products for domestic
and international markets in future. The project is supported and approved by Ministry of Food
Processing, Government of India, and the State Government of Madhya Pradesh under Mega Food
Parks Scheme to provide all infrastructural facilities under one roof.
4
HISTORY OF MEGA FOOD PARKS IN INDIA
It was on 10th July 2012 when India’s first Mega Food Park - Srini Food Park, was inaugurated
by the then union agriculture minister Sharad Pawar at Chittoor in Andhra Pradesh – the largest
fruits and vegetables cluster in India. From seed to shelf, Srini Food Park facilitates end-to-end
food processing with beneficial forward and backward linkages. On par with software parks, this
new-age or world-class facility in a sprawling 147-acre space has been equipped with modular
cold storage, advanced testing laboratories, state-of-the-art facility for pulping, bottling, IQF, tetra
packing, and warehousing facilities and advanced testing lab. It offered supply chain infrastructure,
cluster farming backed by field collection centre, self help groups and individual farmers. Today
it has emerged as an ideal destination for food processing units. Even the Mega Food Park at
Tumkur that Modi inaugurated is spread across 110 acres. With 22,000-tonne storage capacity, 30
food processing companies are expected to generate 4000 jobs besides benefiting farmers from the
adjoining districts of Kolar, Shimoga and Tumkur, which are rich in vegetables, fruits, millets, and
oilseeds.
To give a major boost to the food processing sector by adding value and reducing food wastage at
each stage of the supply chain with particular focus on perishables, Ministry of Food Processing
Industries is implementing Mega Food Parks Scheme in the country. Mega Food Parks create
modern infrastructure facilities for food processing along the value chain from farm to market with
strong forward and backward linkages through a cluster-based approach. Common facilities and
enabling infrastructure is created at Central Processing Center and facilities for primary processing
and storage is created near the farm in the form of Primary Processing Centers (PPCs) and
Collection Centers (CCs). Under the Scheme, Government of India provides financial assistance
upto Rs. 50.00 Crore per Mega Food Park project.
5
Collection Centers (CCs)
The CCs work as points of aggregation of the produce from individual farmers, farmer’s groups
and Self Help Groups. They feed the raw material to the PPCs. The collection centres are managed
by local entrepreneurs. They are server as farm level aggregation points for adjoining areas within
a radius of around 10 kms. It was expected that these CCs will emerge as centres of rural commerce
and will spur economic activities in the area.
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Future of Farming/ Agriculture
● Post corona there will be global recession in almost all sectors except Agri and Food,
medical, health and sectors.
● People have become aware of the role of immunity in recovery from Corona This will be
big opportunity for Natural, Organic farming. Value chains, Traceable Food, residue free
items as Consumer's propensity to buy such items will increase thereby
● There will be growing tendency to go for healthy n healing. The "Agriculture commodities,
Produce of such value chains will become "Products".
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IMPORTANT FEATURES OF MEGA FOOD PARKS
● > Fruit Pulp/Juice/Concentrate > Tomato puree/paste, canned fruit, frozen fruits,
● IQF fruits and vegetables
● Ginger-garlic paste
● Dehydrated fruits/vegetables, garlic powder, dehydrated ginger
● Onion powder,
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Opportunities in Farming/ Agriculture
9
Concept of Mega Food Park Scheme in India
Since 2008, the Ministry of Food Processing Industries has been introducing the Mega Food Park
Scheme (MFPS) to build new infrastructure for the food industry. This structure has now become
a part of the Central Sector Umbrella Scheme i.e., Pradhan Mantri Kisan Sampada Yojana
(PMKSY). The goal of the Mega Food Park Scheme (MFPS) is to provide modern food
processing infrastructure facilities along the supply chain from farm to shop.
The Scheme of Mega Food Park aims at providing a mechanism to link agricultural production to
the market by bringing together farmers, processors and retailers so as to ensure maximizing value
addition, minimizing wastage, increasing farmers income and creating employment opportunities
particularly in rural sector. The Mega Food Park Scheme is based on “Cluster” approach and
envisages creation of state of art support infrastructure in a well-defined agri / horticultural zone
for setting up of modern food processing units in the industrial plots provided in the park with
well-established supply chain. Mega food park typically consist of supply chain infrastructure
including collection centers, primary processing centers, central processing centers, cold chain and
around 25-30 fully developed plots for entrepreneurs to set up food processing units.
The Mega Food Park project is implemented by a Special Purpose Vehicle (SPV) which is a Body
Corporate registered under the Companies Act. State Government, State Government entities and
Cooperatives are not required to form a separate SPV for implementation of Mega Food Park
project. Subject to fulfillment of the conditions of the Scheme Guidelines, the funds are released
to the SPVs. To view status of 41 Mega Food Parks funded under the scheme
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Benefits of Mega Food Park Project in India
The main purpose of the MFPS is to offer state-of-the-art food processing technology services
along the value chain, from the field to the consumer. It would require the development of near-
farm utilities, shipping, logistics, and consolidated processing centers.
A cluster-based strategy is the core aspect of the Scheme. The scheme would be demand-driven,
pre-marketed, and promote the meeting of environmental, safety, and social requirements by food
processing units.
These Mega Food Parks are expected to provide high quality food processing infrastructure near
the farms. These included logistics, transportation, and central processing centres so as to ensure
–
MFPS is projected to promote the achievement of the Ministry of Food Processing Industries'
Vision 2015 to increase the country's perishable processing from the current 6 percent to 20
percent, value-added from 20 percent to 35 percent, and the share of global food trade from 1.5 %
to 3 % by 2015.
The anticipated outcomes are increased farmers' realization, the development of high-quality
production facilities, the reduction of waste, the capacity building of producers and processors,
and the creation of a productive supply chain, along with the generation of substantial direct and
indirect jobs.
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The Indian food processing industry is at present growing at the rate of seven per cent and it is
expected to grow from US$ 200 million in 2008 to US$ 310 million in 2015 with the highest
growth being recorded in the Fruits and Vegetables sector (20 percent).
Another study by McKinsey & Company suggests that the Indian food market is poised to grow
to $310 billion by 2015 and $ 344 billion in 2025.
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Satara Mega Food Park
Satara Mega Food Park is a promise of commercial prosperity for any food processing company.
We can provide any type of organic, poison-free fruits, vegetables, grains, gluten-free products,
etc for processing. Serving customers like Prime Minister’s House and Office, Rashtrapati Bhavan,
Parliament House, many union ministries, many state governments, municipal corporations, BVG
Group has excellent working relationships with the government, to assist in any regulatory
permissions.
Satara Mega Food Park is promoted by the promoters of BVG Group, that is India’s Largest
Integrated Services Company, with 70,000 people serving 750 clients across 22 states. BVG Life
Sciences Limited makes herbal crop care products that assure minimum 50% yield increase in one
crop season and double in three crop seasons. Over 15,000 members of the BVG family are from
areas in and around the food park, with over 1,50,000 acres of irrigated land in the family.
Conveniently located
The Satara Mega Food Park is located at Satara. Satara Mega Food Park has been has been set up
in 64acre of land at a cost of Rs. 139.30 Crore. It is located 3 Kms from the Pune – Bangalore
National Highway (AH-46) and 4 Km from the State Highway. It is also closer to the Satara MIDC.
The food park is almost equi-distant from key consumption markets and ports on the west coast.
The closest port is Mumbai port is located at 300 Kms from the Central Processing facility. Major
cities such as Mumbai (300 Kms), Delhi (1700 Kms) and Pune (100 kms) are all located at
accessible range. The Central Processing Center (CPC) is just 2 Kms away from Krishna river
with abundant water availability
Basic Infrastructure - Roads, Water, Effluent Treatment Plants, Electrical Sub-station with Power back up
facility, Banking, Security services and Office space
Integrated Agri Eco-system - Central Processing Centre (CPC), Primary Processing Centres (PPCs)
supported by Collection centres, Farmer Training facilities, Quality certification labs, Inspection, Sorting,
Washing, Cleaning and Grading facilities.
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Strong Backward Linkages - Active participation from Farmer Groups / Co-operative Trusts / Women Self
help groups, Partnership with Agriculture University and Agro industries corporation, Government
Extension services, Lab-to-Land transfer, Skill Building of farmers, Usage of modern technology,
Implementation support for best Pre-harvest Practices, Facilitation of contract farming and competitive
farming.
Effective Forward Linkages - Transportation network connected to all key markets. Market Development
Assistance to access various Processors, Modern Trade Retail Chains, Distribution to Hotels, Restaurants,
Exporters and Export Markets
FACILITIES BY THEM :-
Leasing option (Short and long term) facilities to Manufacturers / Sellers and MSME (Micro, Small and
Medium Enterprise)
• Open plots
• Constructed pre-engineered shades: Customized sizes to meet every requirement • Food processing
infrastructure
• Cold storages
• Dry warehouses
• Storage facilities: facilities by requirements Contract Manufacturing / Contract Packing / Private Labels
• Potato chips making, Diced potatoes, French fries and all types of frozen potato products
• Extruded products - for Indian and export markets, Fortified dal and rice alternatives (Protein Fortified) /
Analog cereals
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• High quality packaging / re-packing services Efficient procurement services
• Banking tie-ups for finance Unmatched benefits to food companies Plug and play services
• New factory EPC support including construction, machinery installation - reducing lead time to set up
production
• Collaboration options with leading International and National manufacturers, marketing organizations and
modern trade retail companies
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• Located at Agri-rich area of Krishna valley
• State of the art Twin Screw Extrusion Machines for manufacturing extruded / fortified products
• Cold storage technology from reputed companies like Omnivent, Holland Government subsidies
• Part of ready eco-system of Mega Food Park and its range of facilities Experienced management with a
clear insight to corporate needs
Procurement to process: all under one roof Facility to manufacture innovative products and extruded snacks
• Ability to introduce these products through big manufacturers and distribution houses through-out India
• India’s first facility to introduce innovative protein fortified food products like Tur Dal alternate, Protien
fortified rice, Diabetic rice, Soya meal and other protein fortified snacks
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Core Processing Facilities:-
Central Distribution Center- Cost of civil work & services such as laboratory testing, washing, marking,
sorting and packaging facilities, dry warehouses, advanced storage facilities cold storage comprising
regulated atmosphere chambers, pressure ventilators, dynamic humidity stocks, pre-cooling chambers,
ripening chambers, etc.
Primary Processing Centres and Farm Proximate Collection Centers- This may include components
such as washing, grading, sorting, and packaging facilities (including equipment), dry warehouses,
specialist cold stores, including pre-cooling chambers, ripening chambers (including equipment), reefer
vans, mobile pre-coolers, mobile vans, etc.
Food Parks are comprehensive industrial estates for food processing units where the industries would have
provision of common facilities like cold storage, cold chain, effluent treatment plant, warehousing power
connection, water facilities, sewerage etc. The creation of these common infrastructures would benefit
individual units particularly the small and medium scale units, because these are expensive to be set up by
any single individual unit. Therefore a common park with all the infrastructures would help in the growth
of the food processing industry reducing wastage. The envisaged processing units that can be set up in the
Mega Food Parks will be location specific and dependent on available raw materials. Possible Processing
Units in the Park could be IQF (International Quality Federation) Frozen Foods, Fruits & Vegetables
Processing, Mango/Tomato/ Banana/ Pineapple/ Guava Processing Pulp/Puree/Concentrates, Aseptic
Juices, Nectars, Drinks, Tetrapack Aseptic Packaging Plant, Vacuum Drying, Candies, Papain Extraction,
Enzymes & Oleoresins distillation, Instant Foods -Ready to cook Vada, dosa, Idly, Cutlets etc, Specialty
Foods-Energy drink mix, Wellness foods, Ready Meals Sterilized Fruits, Vegetables, Cereals
Confectionery Plant-Chocolates -Cocoa processing Spices/Tastemakers Development unit-Seasonings
Natural Colour Extracts etc.
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MAJOR FEATURES OF MEGA FOOD PARKS SCHEME
Vision 2015 of Ministry of Food Processing Industries aims to raise the processing of perishables in the
country from existing 6 % to 20 %, value addition from 20 % to 35 % and the share in global food trade
from 1.5 % to 3 % by year 2015.
By creating post-harvest handling infrastructure PFHPL will also help reduce post-harvest losses of
perishables from current level of 30% to 35% valued approximately Rs. 50,000 Crores per annum.
To realize the Vision 2015, Ministry of Food Processing Industries (MoFPI) has pledged support under the
Mega Food Park Scheme (MFPS).
Each Mega Food Park (MFP) will be subsidized with an amount of Rs. 50 Cr on a milestone & progress
achievement basis.
The ministry of food processing industries proposes to establish 30 (thirty) Mega food parks
in the country during 11th plan with the following objectives:
• Provide state of the art infrastructure for food processing in the country on a pre identified cluster
basis.
• Foster interagency linkages for pooling of resources for activities complementary to food
processing.
MARKET SCENARIO
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The Indian food market is set to more than double by 2025. The market size for the food
consumption category in India is expected to grow US$ 344 billion in 2025 at a compound annual
growth rate of 4.1 per cent.
In India, the food processing industry is one of the largest in terms of production, consumption
and export prospects. Mega Food Parks Scheme (MFPS) is a program of the Ministry of Food
Processing Industry, Government of India, introduced in the eleventh five year plan.
These mega food parks are implemented in many states such as Andhra Pradesh, Gujarat,
Maharashtra and planning to implement in Orissa, Punjab and other states also.
The primary objective of the MFPS is to provide adequate infrastructure facilities for food
processing along with the value chain from the farm to market.
It will include creation of infrastructure near the farm, transportation, logistics and centralized
processing centers.
The scheme will be demand driven, pre-marketed and would facilitate food processing units to
meet environmental, safety and social standards.
The outcome will be increased realization for farmers, creation of high quality rural processing,
reduction in wastage, capacity building of the producers, and creation of efficient supply chain
along with the significant direct and indirect employment generation.
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Product cluster (fruit & Vegetables based)
● Invest Opportunities
Processed Products
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● etc
● Fruit powders
● Grain processing: whole grain, multigrain, atta, maida, flour, bakery (bread, biscuit, cake
etc), oil, RTE, RTC, RTS
●
● These are just some examples, possibilities are many more
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Processed and Value added Products
● > Fruit Pulp/Juice/Concentrate > Tomato puree/paste, canned fruit, frozen fruits,
●
● IQF fruits and vegetables
●
● Ginger-garlic paste
●
● Dehydrated fruits/vegetables, garlic powder, dehydrated ginger
●
● Onion powder,
Raw Material
Satara Mega Food Park is located amid rich bio-diversity of raw materials for processing, fruits,
vegetables, spices, grains, as well as milk and sugar. With such wide availability of all types of
inputs, food processing units in Satara Mega Food Park can produce all types of processed food.
Satara Mega Food Park is promoted by the promoters of BVG Group, that is India’s Largest
Integrated Services Company, with 70,000 people serving 750 clients across 22 states. BVG Life
Sciences Limited makes herbal crop care products that assure minimum 50% yield increase in one
22
crop season and double in three crop seasons. Over 15,000 members of the BVG family are from
areas in and around the food park, with over 1,50,000 acres of irrigated land in the family.
Customer Access
Satara Mega Food Park is just 2 kms from the national highway, 10 kms from the railway line,
giving you overnight reach to 60% of India’s high income population and the customer base for
processed food. JNPT Port and JSW Jaigarh port, are within a 4.5 hour drive, giving you reach
into almost all export markets.
Sr
.
N
o. Description Capacities
1 Godown 5000MT
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3 Pulping line with Aseptic Packing And Canning line 2TPH
9 Bolier 4MT
13 ETP 0.9MLD
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15 WTP 1.2 MLD
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Objective
To establishing a "direct linkage from farm produce to processing market (processors and retailers)
and then to consumer markets" through a network of collection centres and primary processing
centers
To reduce wastage of perishables; rise processing of food items from 6% to 20% and raise India’s
share in Food Processing Industry from 1.5% to 3%
Providing a mechanism to link agricultural production to the market by bringing together farmers,
processors and retailers so as to ensure maximizing value addition, minimizing wastage, increasing
farmers’ income and creating employment opportunities particularly in rural sector
· Exposing farmers to a more systematic, market driven and profitable farming activities
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MAJOR ISSUES
There are some major issues which need to be addressed to get the desired results.
Firstly, land acquisition is major issue. It is very difficult to get 50 acre of land anywhere,
particularly in small and hilly states. The government needs to provide flexibility to this
requirement.
Secondly, since most agri-business in our country happens through cooperatives, their integration
into food parks is critical.
Thirdly, through the scheme gives a grant to the SPV, the SPV finds itself unable to attract the
PPCs and CCs. Here, the National Mission on Food Processing could play a major role by
providing the Rs. 50 Lakh grant under that mission to units within the MFPs. But that scheme is
now delinked from central support and states may have to decide if they want to continue or not.
State governments may look into these issues case-by-case basis and provide attractions to these
units as well.
Fourthly, the MFP scheme provides a maximum grant of Rs.50 crores for setting up an MFP in
minimum of 50 acres of contiguous land with a 50 percent contribution to the total project cost
from the SPV. This “one size fits all” approach has not been able to attract the investors having
more or less requirements.
Lastly, the scheme has not attracted global companies because some of them would not work on
basis of a “grant” from a developing country. They would like to work on Joint Ventures.
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SUGGESTIONS
● Skill Initiatives
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CONCLUSION
India has good agriculture. It will help to boost the food processing industry in India.
India has good domestic demand for the processed food product.
China's loss India's gain will help to gain India’s opportunity in global food supply.
Mega Food Park scheme is very promising for rural development and integration of rural and urban
India through various supply chain linkages. However, the working of the scheme in the last
decade paint a different story due to cost overrun, delayed projects and litigated projects. Since
land is a state subject therefore success of such scheme is possible only if there is acooperative
federalism and land issues are resolved outside of the court.
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References
www.satarafoodpark.in
www.entrepreneurindia.co
www.timesofindia.indiatimes.com
www.slideshare.com
www.wikipedia.in
www.mofpi.nic.in
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