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Fruit and Vegetable Processing Industry Profile Excerpt
| SIC Codes: 2033, 2034, 2035, 2037 NAICS Codes: 3114 Page Length: 10-12 Last Quarterly Update: 10/6/2008 View Sample Industry Profile |
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The fruit and vegetable processing industry in the US includes about 2,000 companies with combined annual revenue of $40 billion. Large companies include Heinz, McCain, Del Monte, JR Simplot, grower cooperatives like Ocean Spray and Diamond, and divisions of large food companies like ConAgra and General Mills. The industry is highly concentrated: the 50 largest companies hold more than 75 percent of the market. Smaller companies have local or regional operations that don't require the large distribution systems of the big companies.
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 distribution operations. Small companies can compete effectively in local or regional markets.
PRODUCTS, OPERATIONS & TECHNOLOGY
The major processed crops in the US are tomatoes (solid tomato and tomato paste products); potatoes (French fries, potato chips); and oranges (orange juice). Other important processed products include corn; cucumbers (pickles); beans; grapefruit; apples (apple juice, applesauce); grapes (raisins); strawberries; pineapples; and nuts. The two major types of operation are canning and freezing. Canned goods account for about 60 percent of industry revenue. A typical canning operation has 100 workers and produces annual revenue of $250,000 per worker. Some processing plants have more than 1,000 workers. Freezing operations ...
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