The Philippine processed fruits and vegetables sector has the following coverage:
- Jams, jellies, marmalades and processed/preserved fruits
- Juices, purees and concentrates
- Dried or dehydrated, drained glazed and crystallized fruits
- Processed vegetables
- Processed nuts and coconut products
- Sauces, condiments, spices and mixes
Major fruits processed for exports include:
- soursop (guyabano)
- calamansi (lime)
- dalandan (orange)
- palm fruit (kaong)
Coconuts are generally processed into desiccated coconut, coconut chips, coconut water and coconut milk (liquid/powder).
Commonly processed vegetables and root crops include:
- ube (yam)
- green peas
- chick peas (garbanzos)
- sweet corn
These vegetables are canned, pickled, quick frozen and made into purees, sauces, pastes, catsup, soups and broth.
Majority of the players in the sector are micro-, small- and medium-sized enterprises (MSMEs), but key players are large firms composed of Del Monte Philippines, Dole, T'boli Agro Industrial Development Corporation, Ram Food Products, California Manufacturing Corporation and Sysu International Inc.
Major export markets are:
- South Korea
- Hong Kong
...covering 81% of the country's total exports of processed fruits and vegetables.
Global Demand for Processed Philippine Fruits and Vegetables
- Increasing trend in processed fruits and vegetables exports with an average yearly growth of about 7% for the period 2006 to 2010.
- Major processed fruits exported include prepared/preserved fruits accounting for 53% of total exports; juices/concentrates and purees accounting for 24%; and dried fruits accounting for 18%.
- 2010 export proceeds amounted to US$386.76 Million or an increase of 2.44% from 2009 and exported to 108 countries.
Increase in Demand
|Projected Philippine Exports of Processed Fruits & Vegetables
||Value (US$ Million)
- The Philippines is abundant in terms of varieties in fruits and vegetables which are generally cheaper during the peak season.
- There are readily available secondary inputs such as sugar, salt, coconut oil, corn oil, etc.
Technology that Supports the Industry
- Production process mostly manual to semi-mechanized using locally designed and fabricated production machinery and equipment
- Those in the production of dried mangoes, fruit purees, fruit cocktails/mixed fruits and fruit juices use fully automated production line
Strong Support from Government/Industry Association
- Support from the government through designation of brand management teams to supervise the export promotion of the sector
- Centerpiece agriculture program dubbed as FIELFS, which aims to sustain agricultural growth and modernization to ensure long-term food security and sufficiency. The program involves the provision of six major interventions as follows:
- Fertilizer and other inputs (fertilize subsidy program and promotion on the use of organic fertilizers through the Organic Fertilizer Production-Tamang Abono Program);
- Irrigation and other rural infrastructure (availability of irrigation systems and 2,158 km. of farm-to-market roads (FMRs);
- Extension and education, R&D and training (various training courses and training-related activities as well as research and development activities);
- Loans, guarantee and insurance coverage;
- Dryers and other post-harvest facilities; and
- Seeds of high-yield and sturdy crops
- Contract growing arrangement with farmers to ensure continuous supply of raw materials and maximize the volume of production as well as support farmers' growth
- Availability of post harvest handling and storage facilities through the implementation of the Philippine National Cold Chain and Tramline Program by the Department of Agriculture
- Establishment of cold chain facilities in three major producing areas, namely: Benguet in Northern Philippines (with alternative routes Mt. Province-Benguet-Manila Line and Cagayan-Manila Line), Cebu in Central Philippines (with alternative routes Visayas Inter-island Connections) and Bukidnon in Southern Philippines (with alternative routes Mindanao-Cebu-Manila Line)
- Presence of dynamic industry associations
- Philippine Food Processors and Exports Organization, Inc. - focuses on planning, development and sourcing of raw materials, improvement of manufacturing efficiency and productivity, promotion of sound trade practices, among others
- Philippine Exporters Confederation, Inc. - mandated to strengthen the country's export industry through its export promotion and development programs
- Most processing plants are located in the National Capital Region, Region IV, Region VII, Region X and Region XI
- Top vegetable producers are the Cordillera Region and Mindanao (Davao City, Davao del Sur, Compostela Valley, Bukidnon and Misamis Oriental) supplying Manila, Southern Luzon and the Visayas.
- Luzon is the top mango producer; banana production are mostly in Davao and some parts of Mindanao
- Region IV and XI are the largest coconut producing regions and have the most number of coconut processors in the country
- Large pool of skilled labor, which is advantageous to investors with limited capital equipment investment.
- Philippine Development Plan (MTPDP) 2010-2016 - government assistance through international promotional events, inbound business matching and addressing the market access issues resulting from new requirements of target and growth markets; strengthening the certification system for Good Manufacturing Practices (GMP), Hazard Analysis Critical Control Point (HACCP), and ISO 22000
- Agriculture and Fisheries Modernization Act (AFMA) - duty-free importation of all types of agriculture and fisheries inputs, equipment and machinery
Cost of Doing Business
- Research and Development support from the Department of Science and Technology (DOST), particularly the Philippine Council for Agriculture, Forestry and Natural Resources Research and Development (PCARRD) and Industrial Technology and Development Institute (ITDI)
- Continuous provision of technical assistance from Food Development Center (FDC), the Food and Drugs Administration (FDA), the Philippine Association of Food Technologist (PAFT) and the Academe
Estimated Investment Cost
- US$255-848 per ton of processed fruit/vegetable
Salaries and Wages (per day)
- NCR - Php 426.00
- Regions/Provinces - Php 204.00-337.00
Rentals, Lease, Acquisition (per month)
- Commercial space lease - US$2.0-9.0/sq.m.
- Office space rental - NCR: US$10-12/sq.m.; Regional/Provincial: US$5-6/sq.m.
- Within an economic zone
- lease of lots - US$0.40/sq.m.
- lease of buildings - US$1.0/sq.m.
- License to operate and product registration from the Bureau of Food and Drugs (BFAD);
- Environmental Compliance Certificate from Environmental Management Bureau (EMB);
- Registration of Incorporation from the Securities and Exchange Commission (SEC).