Fruit & Vegetable Processing

The Fruits and Vegetables Processing (F&VP) sector is a sub-sector of the agriculture sector in the Philippines, comprising a large share of it. In 2009, the Philippine Institute for Development Studies reported that the sub sector accounted for 31% of the agricultural output, with a known growth rate of 2.8% for the last three decades. Despite this however, fruits and vegetables are considered only as a minor component of agriculture compared to traditional crops (i.e. rice, corn, coconut, sugarcane), and only 1/10 agricultural area is planted with fruits and vegetables.

The sector is also associated with the food manufacturing industry. It is the largest subsector of the manufacturing industry in the Philippines comprising about 39% of total establishments in the manufacturing sector. It is classified under the ‘low-technology’ sub-sector because it is less-capital intensive, and more labor or resource-intensive compared to the other subsectors in the manufacturing industry. While it is a sub-sector that has less entry barriers, less skill requirements for workers, and generates huge employment opportunities, the food manufacturing sector faces strong competition from lower-cost products from other countries.