Fruit & Vegetable Processing

Fruit & Vegetable Processing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry use freezing, canning, dehydrating, and pickling processes to preserve fruits and vegetables. Major companies include Dole, Kraft Heinz, Seneca Foods, Simplot, and The JM Smucker Co, and divisions of large food companies such as Conagra Brands and General Mills (all based in the US); as well as AGRANA (Austria), Bonduelle (France), Del Monte Pacific (Singapore), Greenyard (Belgium), La Doria (Italy), and McCain Foods (Canada).

COMPETITIVE LANDSCAPE

Demand is driven by food consumption, which depends on population growth. The profitability of individual companies depends on efficient operations, because products are commodities subject to intense price competition. Companies compete largely based on cost and their ability to distribute the finished product. Large companies have advantages in purchasing and distribution. Small companies can compete effectively in local or regional markets. The US industry is concentrated: the 50 largest companies generate about 60% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major revenue sources by fruits and vegetable processing includes frozen dinners, which accounts for about 50% of the industry revenue. Other products include canned and fresh fruit juices (about 20%), dried and dehydrated fruits and vegetables (about 10%), canned tomato-based sauces (10%), and catsup (roughly 5%).