PART III--Proposed New Industry Structure for Food Manufacturing and Beverage and Tobacco Product Manufacturing Section A--NAICS Structure North American Industry Classification System (NAICS) Agreement Number 6 This Document represents the proposed agreement on the structure of the North American Industry Classification System (NAICS) for the following industries: Food Manufacturing Beverage and Tobacco Product Manufacturing The detailed NAICS structure along with a brief description of the structure is attached (Attachments 1 and 2). Each country agrees to release a copy of the proposed NAICS structure to interested data users . Comments received will be shared among the countries and discussions held before a final decision on the structure is made. Each country may add additional detailed industries, below the 4-digit level of NAICS, as necessary to meet national needs, so long as this additional detail aggregates to a 4-digit NAICS level in order to ensure full comparability among the three countries. This NAICS structure was presented and provisionally accepted at the NAICS Committee meeting held on August 30, 1995 through September 1, 1995 in Washington, D.C. Accepted: Signature Date Canada /S/ Jacob Ryten 9/1/95 Mexico /S/ Enrique Ordaz 9/1/95 United States /S/ Jack E. Triplett 9/1/95 Attachment 1--NAICS STRUCTURE XX Food Manufacturing XXX Animal Food Manufacturing XXXX Animal Food Manufacturing XXX Grain and Oilseed Milling XXXX Flour Milling and Malt Manufacturing XXXX Starch and Vegetable Fats and Oils Manufacturing XXXX Breakfast Cereal Manufacturing XXX Sugar and Confectionery Product Manufacturing XXXX Sugar Manufacturing XXXX Chocolate and Confectionery Manufacturing from Cocoa Beans XXXX Confectionery Manufacturing from Purchased Chocolate XXXX Non-Chocolate Confectionery Manufacturing XXX Preserved Fruit, Vegetable, and Specialty Manufacturing XXXX Frozen Food Processing XXXX Canning, Pickling and Drying XXX Dairy Product Manufacturing XXXX Dairy Product, Except Frozen Dairy Product Manufacturing XXXX Ice Cream and Frozen Dessert Manufacturing XXX Meat and Seafood Product Manufacturing XXXX Animal Slaughtering and Processing XXXX Seafood Product Preparation and Packaging XXX Bakeries and Tortilleries XXXX Bread and Bakery Product Manufacturing XXXX Cookie, Cracker, and Pasta Manufacturing XXXX Tortilleries XXX Miscellaneous Food Manufacturing XXXX Snack Food Manufacturing XXXX Coffee and Tea Manufacturing XXXX Flavoring Syrup and Concentrate Manufacturing XXXX Seasoning and Dressing Manufacturing XXXX Other Miscellaneous Food Manufacturing XX Beverage and Tobacco Product Manufacturing XXX Beverage Manufacturing XXXX Soft Drink and Ice Manufacturing XXXX Breweries XXXX Wineries XXXX Distilleries XXX Tobacco Manufacturing XXXX Tobacco Stemming and Redrying XXXX Tobacco Product Manufacturing Attachment 2--North American Industry Classification System Draft Classification for: Food Manufacturing Beverage and Tobacco Product Manufacturing Representatives of the statistical agencies of Canada, Mexico, and the United States agree to a draft industrial classification for these industries. The draft classification provides for two subsectors, Food Manufacturing and Beverage and Tobacco Product Manufacturing. These subsectors are sub-divided into ten industry groups and twenty eight industries. The subsectors are part of the Manufacturing sector of the classification. A General Outline Food Manufacturing includes establishments that transform livestock and agricultural products into products for intermediate or final consumption. The industry groups are distinguished by the processes and the nature of the raw materials used. The first two categories, Animal Food Manufacturing and Grain and Oilseed Milling, are characterized by the grinding process. Excluded from this industry group is the nixtamal milling carried out in Mexico, due to the integration of this activity with the preparation of corn tortillas. The Sugar and Confectionery Product Manufacturing industry group includes establishments that process agricultural inputs such as sugar cane, beet, and cocoa to give rise to a new product (sugar or chocolate) and those that begin with sugar and chocolate and process these further. The Preserved Fruit, Vegetable and Specialty Manufacturing industry group includes two types of establishments: those that freeze food and those that combine preservation processes such as pickling, canning, dehydrating and so forth. Both types begin their productive process with inputs of vegetable or animal origin. The establishments that manufacture dairy products and meat products are defined by the inputs used: milk and meat, respectively. Industry group, Bakeries and Tortilleries have a common denominator, the kneading and cooking process that takes place in ovens or flat earthenware pans. In this industry group is the nixtamal mill. The industry group Miscellaneous Food Manufacturing includes industries with different productive processes such as snack food manufacturing; coffee and tea manufacturing; concentrate, syrup, condiment, and spice manufacturing; and in general an entire range of other miscellaneous products. The Beverage and Tobacco Product Manufacturing subsector has two industry groups. The first one, Beverage Manufacturing, includes three types of establishments: those that manufacture non-alcoholic beverages; those that manufacture alcoholic beverages through the fermentation process; and those that produce distilled alcoholic beverages. Ice manufacturing, while not a beverage, is included with non-alcoholic beverage manufacturing because it is the same production process as water purification. In the case of activities related to the manufacture of beverages, the structure follows the defined productive processes. Brandy, a distilled beverage, was not placed under distillery product manufacturing, but rather under the NAICS class for winery product manufacturing since the productive process used in the manufacturing of alcoholic grape-based beverages, produces both wines (fermented beverage) and brandies (distilled beverage). The second industry group, Tobacco Product Manufacturing, includes two types of establishments: those engaged in redrying and stemming tobacco and those that manufacture cigarettes and cigars. Limitations and Constraints of the Classification There are a few factors that constrained the structure and detail of the classification in the area under consideration. In the Food Manufacturing subsector, most activities that were identified in one country exist in the others. However, the way activities are combined in establishments differs to some extent in the different countries. For example, in Canada and the United States, corn oil is produced in the same establishments that manufacture corn starch and corn sweeteners. In Mexico, corn oil is produced in specialized establishments. All of the establishments that produce these products along with those producing other vegetable fats and oils, are combined into one NAICS industry, Starch and Vegetable Fats and Oils Manufacturing. Each country will publish additional categories that comprise sub-divisions of NAICS industries to present data for activities that are nationally significant. For those users requiring detailed commodity information, each country will publish information on products of these industries. Efforts are also underway to harmonize the commodity classifications to allow comparability of these statistics. Relationship of ISIC Most 4-digit NAICS industries in these subsectors are contained within Division 15, Manufacture of Food Products, of the current International Standard Industrial Classification of all Economic Activities (ISIC, Revision 3) of the United Nations. The following NAICS industry cannot be assigned to an ISIC division. Wineries that grow their own grapes and then manufacture wine are classified in ISIC as an agriculture activity and in NAICS as a manufacturing activity. Some Changes to the National Classifications A significant change for all three countries is the inclusion of malt manufacturing in the NAICS industry Flour Milling and Malt Manufacturing. Malt was formerly included in the beer manufacturing industry in Mexico and the United States and in Miscellaneous Manufacturing in Canada, but was moved to the flour milling and malt manufacturing NAICS industry because the production process used to manufacture malt is similar to that of the flour milling industry. Grouping the production of starches and vegetable fats and oils in a single class also is a significant change for all three countries. In Canada and the United States, corn oil is produced in the same establishments that produce starch products, while in Mexico, corn oil is produced in establishments that manufacture vegetable fats and oils. Thus, the difference in the production processes across the three countries necessitated this grouping. The creation of two industries for chocolate and confectionary products made from cocoa beans and confectionery made from purchased chocolate is a change for Canada since these industries were previously combined. The NAICS industry Non-Chocolate Confectionery Manufacturing is new for all three countries, and includes chewing gum. Other Miscellaneous Food Manufacturing includes the preparation of food to be consumed fresh (e.g., salads, sandwiches, etc. that are sold for immediate or almost immediate consumption). It is characterized by the preparation of food in volume that the manufacturer sells to a specialized establishment that sells it either through a service or a retail establishment. It is not specifically defined in the existing classification systems of the three countries. The inclusion of bakeries that prepare the dough, bake the bread, and sell on the premises in manufacturing is a major change for Canada and the United States. These establishments formerly were included in the retail sector in both countries. The manufacture of ice, an activity that up to now had been considered by the three countries to be part of food, has been transferred to beverage manufacturing. The grouping of Beverage and Tobacco Manufacturing into a subsector represents a major restructuring for all three countries. In Canada, the current two-digit groups for Beverages (CSIC 10, 11) and Tobacco (CSIC 12) have been combined in one NAICS subsector, Beverage and Tobacco Product Manufacturing. For Mexico, the current subsector Food Products, Beverages, and Tobacco has been split into two subsectors. In the United States, tobacco is a separate two-digit major group (Major Group 21, Tobacco Products) while beverages is a three-digit industry group, (Industry Group 208, Beverages). Achievement of Objectives The classification meets the objectives for the North American Industry Classification System (NAICS). It is comprised of industries that group establishments with similar production processes, that is, it applies the production-oriented economic concept. In the main, the hierarchical structure of the classification also follows the production concept. The classification achieves comparability for the three participating countries. Based on existing data, all three countries expect to be able to publish data regularly at the industry (4-digit) level of the structure. All countries agree on the detailed definitions of the industries. The classification improves comparability with other countries. Most industries are compatible with the two-digit level of the current International Standard Industrial Classification of all Economic Activities (ISIC, Revision 3) of the United Nations. This means that each comparable NAICS industry is the same as, or part of, a single ISIC two-digit Division. Other objectives of the NAICS project are not as relevant in this area of the classification as in others. These objectives are the delineation of new and emerging industries, service industries and industries engaged in the production of advanced technologies. The industrial sector in question is relatively mature, generally produces goods, and employs relatively stable technology. Therefore, the emphasis was on the objectives listed above. The industries have high specialization ratios, and with the exception of tortillas in Canada, they are economically significant. The detail (4-digit) and structure of the classification are balanced in size. This enhances the classification's suitability for sampling and other aspects of survey operations. Finally, disruptions to time series, while they exist, have been minimized. Most of the changes to existing classifications are marginal. The major changes are well-identified and can be taken into account in linking time series. Section B-Annex: United States National Industry Detail As explained in the Structure presentation of this notice, for a number of reasons 4-digit industries in the two NAICS industry subsectors presented in Part 1, Section A--Attachment 1, contain less detail than is currently in the U.S. SIC system, and less detail than is required to meet important analytical requirements in the U.S. The three country agreement on NAICS envisions that each country may develop national detailed industries below the NAICS industry level, so long as the national detail can be aggregated to the NAICS classification, thus assuring full North American comparability. The ECPC is proposing U.S. 5-digit industry detail for the two NAICS industry subsectors covered in Part I of this notice. For cases where no 5-digit detail is shown, the ECPC is proposing that NAICS 4-digit industries will also represent the most detailed U.S. industries. TABLE 1 The definitions of status codes are as follows: E = existing industry; N = new industry; R = revised industry: and * means "part of". The abbreviation NEC is used for Not Elsewhere Classified. 1997 NAICS and US description Status code 1987 SIC code 1987 SIC description XX Food Manufacturing XXX Animal Food Manufacturing XXXX Animal Food Manufacturing XXXXX Dog and Cat Food Manufacturing E 2047 Dog and Cat Food XXXXX Other Animal Food Manufacturing R *2048 Prepared Feeds, NEC (Except Slaughtering Animals for Pet Food) XXX Grain and Oilseed Milling XXXX Flour Milling and Malt Manufacturing XXXXX Flour Milling R *2034 Dehydrated Fruits, Vegetables and Soups (Vegetable Flour) 2041 Flour and Other Grain Mill Products XXXXX Rice Milling E 2044 Rice Milling XXXXX Malt Manufacturing E 2083 Malt XXXX Starch and Vegetable Fats and Oils Manufacturing XXXXX Soybean Processing E 2075 Soybean Oil Mills XXXXX Wet Corn Milling E 2046 Wet Corn Milling XXXXX Other Oilseed Processing N 2074 Cottonseed Oil Mills 2076 Vegetable Oil Mills, NEC XXXXX Edible Fats and Oils Manufacturing R *2077 2079 Animal and Marine Fat and Oil (Vegetable Oil Foots) Edible Fat and Oil, NEC XXXX Breakfast Cereal Manufacturing E *2043 Cereal Breakfast Foods (Breakfast Cereal) XXX Sugar and Confectionery Product Manufacturing XXXX Sugar Manufacturing XXXXX Sugarcane Mills E 2061 Raw Cane Sugar XXXXX Cane Sugar Refining E 2062 Cane Sugar Refining XXXXX Beet Sugar Manufacturing E 2063 Beet Sugar XXXX Chocolate and Confectionery Manufacturing from Cocoa Beans E 2066 Chocolate and Cocoa Products XXXX Confectionery Manufacturing from Purchased Chocolate N *2064 Candy and Other Confectionery Products (Chocolate Confectionery) XXXX Non-Chocolate Confectionery Manufacturing N *2064 Candy and Other Confectionery Products (Non-Chocolate Confectionary) 2067 Chewing Gum *2099 Food Preparations, NEC (Marshmallow Creme) XXX Preserved Fruit, Vegetable, and Specialty Manufacturing XXXX Frozen Food Processing XXXXX Frozen Fruit, Juice, and Vegetable Processing E 2037 Frozen Fruits and Vegetables XXXXX Frozen Specialty Processing E 2038 Frozen Specialties, NEC XXXX Canning, Pickling, and Drying XXXXX Fruit and Vegetable Canning R 2033 Canned Fruits and Vegetables *2035 Sauces, and Salad Dressings (Pickled Fruits and Vegetables) XXXXX Specialty Canning R *2032 Canned Specialties (Except Canned Puddings) XXXXX Dried and Dehydrated Food Manufacturing R 2034 Dried and Dehydrated Fruits, Vegetables and Soups (Except Vegetable Flour) *2099 Food Preparation, NEC (Bouillon) XXX Dairy Product Manufacturing XXXX Dairy Product, Except Frozen Dairy Product Manufacturing XXXXX Fluid Milk Manufacturing E 2026 Fluid Milk XXXXX Creamery Butter Manufacturing E 2021 Creamery Butter XXXXX Cheese Manufacturing E 2022 Cheese, Natural and Processed XXXXX Dry, Condensed, and Evaporated Milk Manufacturing E 2023 Dry, Condensed and Evaporated Products XXXX Ice Cream and Frozen Dessert Manufacturing E 2024 Ice Cream and Frozen Desserts XXX Meat and Seafood Product Manufacturing XXXX Animal Slaughtering XXXXX Animal Slaughtering and Processing R *0751 Livestock Services, Except Veterinary (Custom Slaughtering) 2011 Meat Packing Plants *2048 Prepared Foods, NEC (Animal Slaughtering for Pet Food) XXXXX Meat Processed From Purchased Carcasses *2013 Sausage and Other Prepared Meats (Meat Processing) *5147 Meat and Meat Products (Boxed Beef) XXXXX Poultry Processing R *2015 Poultry Processing (Poultry Processing) XXXXX Rendering and Meat By-product Processing N *2013 *2077 Sausage and Other Prepared Meats (Lard) Animal and Marine Fats and Oils (Animal Fat and Oil) XXXX Seafood Product Preparation and Packaging XXXXX Seafood Canning R *2077 Animal and Marine Fats and Oils (Canned Marine Fat and Oil) 2091 Canned and Cured Fish and Seafood XXXXX Fresh and Frozen Seafood Processing R *2077 Animal and Marine Fats and Oils (Fresh and Frozen Marine Fats and Oil) 2092 Fresh or Frozen Prepared Fish XXX Bakeries and Tortilleries XXXX Bread and Bakery Product Manufacturing XXXXX Commercial Bakeries R 2051 Bread, Cake, and Related Products *2052 Cookies and Crackers (Unleavened Bread) XXXXX Retail Bakeries N *5461 Retail Bakeries (Bread, Cake and Related Products Baked and Sold on Premise) XXXXX Frozen Bakery Product Manufacturing E 2053 Frozen Bakery Products XXXX Cookie, Cracker, and Pasta Manufacturing XXXXX Cookie and Cracker Manufacturing R *2052 Cookies and Crackers (Cookies and Crackers) XXXXX Flour Mixes and Dough from Purchased Flour Manufacturing E 2045 Prepared Flour Mixes and Doughs XXXXX Pasta Manufacturing E 2098 Macaroni and Spaghetti XXXX Tortilleries N *2099 Food Preparations, NEC (Tortillas) XXX Miscellaneous Food Manufacturing XXXX Snack Food Manufacturing XXXXX Roasted Nuts and Peanut Butter Manufacturing R 2068 Salted and Roasted Nuts and Seeds XXXXX Other Snack Food Manufacturing *2099 Food Preparations, NEC (Peanut Butter) R *2052 Cookies and Crackers (Pretzels) 2096 Potato Chips and Similar Product XXXX Coffee and Tea Manufacturing N *2043 Cereal Breakfast Foods (Coffee Substitute) *2095 Roasted Coffee (Roasted Coffee) *2099 Food Preparations, NEC (Tea) XXXX Flavoring Syrup and Concentrate Manufacturing R *2087 Flavoring Extracts and Syrups (Flavoring Syrup and Concentrate) XXXX Seasoning and Dressing Manufacturing XXXXX Mayonnaise, Dressing, and Other Prepared Sauce Manufacturing N *2035 Pickles, Sauces and Salad Dressings (Sauces and Salad Dressing) *2099 Food Preparations, NEC (Vinegar) XXXXX Spice and Extract Manufacturing N *2087 Flavoring Extracts and Syrups (Flavoring Extracts) *2095 Roasted Coffee (Coffee Extracts) *2099 Food Preparations, NEC (Spices, Dip Mix, Salad Dressing Mix, and Seasoning Mix) *2899 Chemical Preparations, NEC (Salt) XXXX Other Miscellaneous Food Manufacturing XXXXX Perishable Prepared Food Manufacturing N *2099 Food Preparations, NEC (Perishable Prepared Food) XXXXX All Other Miscellaneous Food Manufacturing R *2015 Poultry and Egg Processing (Egg Processing) *2032 Canned Specialties (Canned Pudding) *2087 Flavoring Extracts and Syrups (Powered Drink Mix) *2099 Food Preparations, NEC (Except Marshmallow Cream, Peanut Butter, Perishable Prepared Foods, Tortillas, Tea and Vinegar) XX Beverage and Tobacco Product Manufacturing XXX Beverage Manufacturing XXXX Soft Drink and Ice Manufacturing XXXXX Soft Drink Manufacturing R *2086 Bottled and Canned Soft Drinks (Except Purified Water) XXXXX Ice Manufacturing and Water Purification N 2097 Manufactured Ice *2086 Bottled and Canned Soft Drinks (Purified Water) XXXX Breweries E 2082 Malt Beverages XXXX Wineries E 2084 Wines, Brandy, and Brandy Spirits XXXX Distilleries R 2085 Distilled Spirits *2869 Industrial Organic Chemicals (Potable Ethyl Alcohol) XXXX Tobacco Stemming and Redrying R *2141 Tobacco Stemming and Redrying (Redrying and Stemming) XXXX Tobacco Product Manufacturing XXXXX XXXXX Cigarette Manufacturing Other Tobacco Product Manufacturing E N 2111 2121 Cigarette, Including Non-tobacco Cigarettes Cigars 2131 Chewing and Smoking Tobacco *2141 Tobacco Stemming and Redrying (Reconstituted Tobacco) TABLE 2 The abbreviation "pt" means "part of". @ means time series break has been created that is greater than 3% of the 1992 value of shipments for the 1987 SIC industry. The abbreviation NEC is used for Nosewhere Classified. 1987 SIC code 1987 SIC description 1997 U.S. description 2011 Meat Packing Plants Animal Slaughtering 2013@ Sausages and Other Prepared Meats Meat Processing Lard Meat Processed From Purchased Carcasses Rendering and Meat By-product Processing (pt) 2015@ Poultry Slaughtering and Processing Poultry Processing Egg Processing Poultry Processing All Other Miscellaneous Food Manufacturing (pt) 2021 Creamery Butter Creamery Butter Manufacturing 2022 Cheese, Natural and Processed Cheese Manufacturing 2023 Dry, Condensed, and Evaporated Products Dry, Condensed, and Evaporated Milk Manufacturing 2024 Ice Cream and Frozen Desserts Ice Cream and Frozen Dessert Manufacturing 2026 Fluid Milk Fluid Milk Manufacturing 2032 Canned Specialties Canned Specialty Specialty Canning (pt) Canned Pudding All Other Miscellaneous Food Manufacturing (pt) 2033@ Canned Fruits and Vegetables Fruit and Vegetable Canning (pt) 2034 Dehydrated Fruits, Vegetables, and Soup Dried and Dehydrated Fruit, Vegetable, and Soup Mix Vegetable Flours Dried and Dehydrated Food Manufacturing (pt) Flour Milling (pt) 2035 Pickles, Sauces and Salad Dressings Pickled Fruit and Vegetable Sauce and Salad Dressing Fruit and Vegetable Canning Mayonnaise, Dressing, and Other Prepared Sauce Manufacturing 2037 Frozen Fruits, and Vegetables Frozen Fruit, Juice, and Vegetable Processing 2038 Frozen Specialties, NEC Frozen Specialty Processing 2041 Flour and Other Grain Mill Products Flour Milling (pt) 2043 Cereal Breakfast Foods Coffee Substitute Breakfast Cereal Coffee and Tea Manufacturing (pt) Breakfast Cereal Manufacturing 2044 Rice Milling Rice Milling 2045 Prepared Flour Mixes and Doughs Flour Mixes and Dough Manufacturing from Purchased Flour 2046 Wet Corn Milling Wet Corn Milling 2047 Dog and Cat Food Dog and Cat Food Manufacturing 2048 Prepared Feed, NEC Animal Slaughtering, for Pet Food Except Slaughtering Animals for Pet Food Animal Slaughtering (pt) Other Animal Food Manufacturing 2051 Bread, Cakes and Related Products Commercial Bakeries (pt) 2052@ Cookies and Crackers Cookie and Cracker Pretzels Unleavened Bread Cookie and Cracker Manufacturing Other Snack Food Manufacturing (pt) Commercial Bakeries (pt) 2053 Frozen Bakery Products, Except Bread Frozen Bakery Product Manufacturing 2061 Raw Cane Sugar Sugarcane Mills 2062 Cane Sugar Refining Cane Sugar Refining 2063 Beet Sugar Beet Sugar Manufacturing 2064@ Candy and Other Confectionery Products Chocolate Confectionery Non-Chocolate Confectionery Manufacturing Chocolate and Confectionery Manufacturing from Purchased Chocolate Non-Chocolate Confectionary Manufacturing (pt) 2066 Chocolate and Cocoa Products Chocolate and Confectionery Manufacturing from Cocoa Beans 2067@ Chewing Gum Chewing Gum and Other Non-Chocolate Confectionery Product Manufacturing (pt) 2068@ Salted and Roasted Nuts and Seeds Roasted Nuts and Peanut Butter Manufacturing (pt) 2074@ Cottonseed Oil Mills Other Oilseed Processing, (pt) 2075 Soybean Oil Mills Soybean Processing 2076@ Vegetable Oil Mills, NEC Other Oilseed Processing (pt) 2077@ Animal and Marine Fats and Oils Animal Fat and Oil Rendering and Meat By-product Processing (pt) Canned Marine Fat and Oil Seafood Canning (pt) Fresh and Frozen Marine Fat and Oil Fresh and Frozen Seafood Processing (pt) Vegetable Oil Foot Edible Fats and Oils Manufacturing (pt) 2079 Edible Fat and Oil, NEC Edible Fats and Oils Manufacturing (pt) 2082 Malt Beverages Breweries 2083 Malt Malt Manufacturing 2084 Wines, Brandy, and Brandy Spirits Wineries 2085 Distilled and Blended Liquors Distilleries 2086 Bottled and Canned Soft Drinks Soft Drinks Soft Drink Manufacturing Purified Water Ice Manufacturing and Water Purification (pt) 2087@ Flavoring Extracts and Syrups NEC Flavoring Syrup and Concentrate Flavoring Syrup and Concentrate Manufacturing Flavoring Extracts Spice and Extract Manufacturing (pt) Powered Drink Mix All Other Miscellaneous Food Product Manufacturing (pt) 2091@ Canned and Cured Fish and Seafood Seafood Canning (pt) 2092@ Fresh or Frozen Prepared Fish Fresh and Frozen Seafood Processing (pt) 2095@ Roasted Coffee Roasted Coffee Coffee and Tea Manufacturing (pt) Coffee Extracts Spice and Extract Manufacturing (pt) 2096@ Potato Chips, and Similar Snacks Other Snack Food Manufacturing (pt) 2097 Manufactured Ice Ice Manufacturing and Water Purification (pt) 2098 Macaroni and Spaghetti Pasta Manufacturing 2099 Food Preparations, NEC Bouillon Dried and Dehydrated Food Manufacturing Marshmallow Creme Non-Chocolate Confectionery Manufacturing (pt) Peanut Butter Roasted Nuts and Peanut Butter Manufacturing (pt) Perishable Prepared Food Perishable Prepared Food Manufacturing Tortillas Tortilleries Tea Coffee and Tea Manufacturing (pt) Vinegar Mayonnaise, Dressing, and Other Prepared Sauce Manufacturing (pt) Other All Other Miscellaneous Food Manufacturing (pt) 2111 Cigarettes Cigarette Manufacturing 2121 Cigars Other Tobacco Product Manufacturing (pt) 2131@ Chewing and Smoking Tobacco Other Tobacco Product Manufacturing (pt) 2141@ Tobacco Stemming and Redrying Reconstituted Tobacco Other Tobacco Product Manufacturing (pt) Redrying and Stemming Tobacco Redrying and Stemming Description of Changes to the U.S. System A number of the changes listed in this section were made for reasons of international comparability. Where one or more of the three North American countries had different definitions of an industry classification, adjustments to the definitions in one or more countries were required. In constructing NAICS, the three countries agreed to move, where change was required to attain international comparability, in the direction of the country or countries whose existing classification definitions most closely corresponded to the production-oriented concept adopted for NAICS. Cases where the U.S. changed are listed below; other cases where Canada or Mexico moved toward the U.S. classification are not, of course, listed in this section. Structure - The 1987 Major Groups 20, Food and Kindred Products, and 21, Tobacco Products, were reorganized to create two new subsectors. Beverages were separated from food and combined with tobacco. A number of activities that were included in 1987 Industry Group 208, Beverages, were retained in the Food Manufacturing subsector: Malt manufacturing from 1987 industry group 208. This was done to promote comparability with ISIC and because malt production is a milling operation, not a beverage operation. Flavoring syrup and concentrate manufacturing from part of 1987 SIC 2087, Flavoring Extracts and Syrups, NEC, to improve comparability with Mexico. Flavoring extracts from part of 1987 SIC 2087, Flavoring Extracts and Syrups, to create a new 1997 industry for spices and extracts. This is consistent with Canada and ISIC. Powdered drink mixes from part of 1987 SIC 2087, Flavoring Extracts and Syrups, into part of All Other Miscellaneous Food Manufacturing to improve comparability with Canada. Manufactured ice was previously part of 1987 industry group 209, Miscellaneous Food Preparations and Kindred Products. NAICS includes this in Beverage Manufacturing. Food Manufacturing - Ten new industries were added to the 1997 industry structure for this subsector. New industries were created for: Other Oilseed Processing by combining 1987 SIC 2074, Cottonseed Oil Mills, and 1987 SIC 2076, Vegetable Oil Mills, NEC. Cottonseed processing is very small and the production function is identical except for the inputs used. Confectionery Manufacturing from Purchased Chocolate from part of 1987 SIC 2064, Candy and Other Confectionery Products, to promote comparability with Mexico. This industry also is characterized by the production process as chocolate as an input to confectionery is unique and is distinguished by process. Non-Chocolate Confectionery Manufacturing from parts of 1987 SIC 2064, Candy and Other Confectionery Products; 1987 SIC 2067, Chewing Gum; and 1987 SIC 2099, Food Preparations, NEC. Chewing gum is a disclosure in the U.S. and is too small in Canada. Rendering and Meat By-product Processing from parts of 1987 SIC 2013, Sausage and Other Prepared Meats, and 1987 SIC 2077, Animal and Marine Fats and Oils, since there are specialized processes involved and they tend to be performed in separate establishments. This proposal is supported by The National Renderer's Association. Tortilleries from part of 1987 SIC 2099, Food Preparations, NEC, in response to a proposal from the industry association and to promote comparability with Mexico. Coffee and Tea Manufacturing from parts of 1987 SIC 2043, Cereal Breakfast Foods; 1987 SIC 2095, Roasted Coffee; 1987 SIC 2099, Food Preparations, NEC, to promote comparability with Canada. Mayonnaise, Dressing and Other Prepared Sauce Manufacturing from parts of 1987 SIC 2035, Pickles, Sauces and Salad Dressings, and 1987 SIC 2099, Food Preparations, NEC, to promote comparability with Mexico. The U.S. found a good production basis and more than sufficient data user interest for this change. Spice and Extract Manufacturing from parts of 1987 SIC 2087, Flavoring Extracts and Syrups; 1987 SIC 2095, Roasted Coffee; 1987 SIC 2099, Food Preparations, NEC; and 1987 SIC 2899, Chemical Preparations, NEC resulted from a modification of a proposal to create a spice industry. There is considerable overlap between the production of extracts and spices. Spice production alone produced a low specialization rate (75%), but the combined industry exhibits good specialization (91%). Retail Bakeries from part of 1987 SIC 5461, Retail Bakeries, to obtain comparability with Mexico. A new industry was created since their production function is different than that of a commercial bakery and in order to retain time series continuity. Perishable Prepared Food Manufacturing from part of 1987 SIC 2099, Food Preparations, NEC, to reduce the size of SIC 2099 and improve comparability with Mexico. Three activities were transferred into the 1997 Food Manufacturing subsector: Custom slaughtering was transferred from 1987 SIC 0751, Livestock Services, Except Veterinary, into Animal Slaughtering because the production process is slaughtering whether done on a production or custom basis, and in response to a proposal. Boxed beef from purchased carcasses was transferred from 1987 SIC 5147, Meat and Meat Products, into Meat Processed From Purchased Carcasses to improve comparability with Canada. The production function of these establishments is much more a manufacturing type operation, in that they are very large, highly automated plants that produce bulk products that must still be further broken down before they are ready for sale to the final consumer. Salt was transferred from part of 1987 SIC 2899, Chemical Preparations, NEC, into Spice and Extract Manufacturing to promote comparability with Mexico. Also there were several activities that transferred within the Food Manufacturing subsector. The number of food manufacturing except beverages manufacturing industries increased from 43 in 1987 to 47 in 1997. For time series linkage, 26 of the 43 1987 industries are comparable within three percent of the 1997 industries. Beverage and Tobacco Product Manufacturing - Two new industries were created for this subsector. Ice Manufacturing and Water Purification from 1987 SIC 2097, Manufactured Ice, and part of 1987 SIC 2086, Bottled and Canned Soft Drinks, to promote comparability with Mexico. Other Tobacco Product Manufacturing by combining 1987 SIC 2121, Cigars; 1987 SIC 2131, Chewing and Smoking Tobacco; and Reconstituted Tobacco from part of 1987 SIC 2141, Tobacco Stemming and Redrying. One activity transferred into the Beverage and Tobacco Product Manufacturing subsector: Potable ethyl alcohol was transferred from part of 1987 SIC 2069, Industrial Organic Chemicals, into NAICS Distilleries to promote comparability with Canada. The number of beverage and tobacco product industries decreased from ten in 1987 to eight in 1997. For time series linkage, five of the ten 1987 beverage and tobacco product manufacturing industries are comparable within three percent of the 1997 industries.