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Vegetable and Melon Farming Industry Profile Excerpt
| SIC Codes: 0134, 0161 NAICS Codes: 1112 Page Length: 10-12 Last Quarterly Update: 6/9/2008 View Sample Industry Profile |
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The vegetable and melon farming industry includes about 35,000 farms with combined annual revenue of $19 billion. Major US companies include Dole Food Company, Fresh Del Monte Produce, and Chiquita. Average total annual revenue per farm is $375,000, which may include some non-vegetable and non-melon revenue. The industry is concentrated: the top 10 percent of farms generate two-thirds of total industry revenue.
Vegetable and melon farming includes about 50 types of produce, including lettuce, dried beans, carrots, sweet corn, potatoes, tomatoes, broccoli, watermelon, honeydew, and cantaloupe.
COMPETITIVE LANDSCAPE
Demand is driven by population growth, consumer interest in healthy eating, and government programs promoting fresh produce. The profitability of individual companies depends on maximizing crop yield and minimizing loss from disease, insects, or unfavorable weather. Large companies have advantages in diversified crop production and access to labor. Small companies can compete effectively by specializing in organic, heirloom, or specialty crops. The industry is highly labor-intensive: average annual revenue per employee is less than $40,000.
The vegetable and melon industry competes with grain, oilseed, fruit, and tree nut farming for cropland and acreage, as farmers tend to grow crops with the highest yield and payout.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include potatoes (20 percent of the market); fresh tomatoes (10 percent); and lettuce (10 percent). Other key products include onions, mushrooms, sweet corn, watermelon, cantaloupe, and tomatoes grown for processing.
Vegetables are farmed according to two primary end-uses: fresh or ...
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