Processed Foods And Beverage S Industry
1PROCESSED FOODS AND BEVERAGE S INDUSTRY(As of February 2018)BackgroundProductionThe industry is composed of the following sub-sectors1:1. Processed Foods Processing and preserving of meat Processing and preserving of fish, crustaceansand mollusks Processing and preserving of fruits andvegetables Manufacture of vegetable and animal fats andoils Manufacture of dairy products Manufacture of grain mill products, starchesand starch products Manufacture of other food products2. Manufacture of beveragesIndustry Status2The processed foods and beverages industry 37% of thetotal manufacturing gross value added (GVA) in 2017 –the largest contributor to GVA compared to othermanufacturing sub-sectors of the country. While thesector’s share to manufacturing GVA is observed todecline through the years from 42% in 2012 (which maybe deemed as a sign of manufacturing diversification inthe country), amount of GVA contributed by the sectorsteadily increased from PhP 592 billion in 2012 to PhP766 billion in 2017 (in constant 2000 prices terms).The sector’s contribution to total Gross DomesticProduct (GDP) remained at 9% per year from 2012 to2017, on the average.Based on latest (2015) PSA data, the sector erage manufacturing establishments with morethan 20 direct employees per establishment. Thisrepresents around 19% of total people employed in themanufacturing sector.The sector is linked with the raw material supplier whichis basically the agriculture/fisheries sector, logistics,packaging, cold storage and trading companies, amongothers.1Source: 2009 Philippine Standard Industrial ClassificationData source: PSA’s National Accounts (2012-2017) and latest (2015)Annual Survey of Philippine Business and Industry accessed on 26February 2017.No official data on actual production of processed foodsand beverages industries. For purposes of monitoringtrends, the sector’s Volume of Production Index (VoPI)and Value of Production Index (VaPI) is analyzedinstead.Using VoPI as a proxy for production volume, processedfoods industry grew by 5.38% per year while beverageindustry grew by 5.01% per year, between 2012-2017,on the average.Using VaPI as a proxy for production value, processedfoods industry grew by 5.89% per year while beverageindustry grew by 8.35% per year, on the average.Consistent with the global experience, local productionvolume and value for processed foods and productionvolume for beverages declined in 2015 but slowlyrecovered in 2016. This reflective of the slowdown in theagriculture/fishery production in 2015.Trade3Processed foods and beverages export of thePhilippines in 2017 reached US 1.62 billion whileimports for the same year amounted to US 4.27 billion.The Philippines has been a net importer of processedfoods and beverages products. From 2012 to 2017, onthe average, import exceeds export by US 1.92 billionannually.From 2012 to 2017, processed foods and beveragesimport value outgrew export value. For said period,exports grew by an average rate of 2.65% per annumwhile imports grew by 9.96% per annum.Exports:Top 10 processed foods exports in 2017 include thefollowing:1.2.3.4.Prepared/preserved pineapple – 17%Desiccated coconut – 16%Centrifugal sugar - 9%Coconut water – 5%23DTI-EMB and Trademap trade databases requested and accessed on26 February 2018
2Banana chips/crackers – 5%Pineapple juice – 4%Malt extract – 3%Dried Mango – 3%Other cereal preparations (crisp savoury foodproducts) – 2%10. Banana ketchup – 2%5.6.7.8.9.Total exports value of these products amounted to US 1.07 billion or 67% of the total processed foods export in2017.Top 10 markets for the aforementioned major processedfood exports include the following:1.2.3.4.5.6.7.8.9.10.USA – 52%Japan – 4%Canada – 4%Australia – 3%South Korea - 3%United Kingdom - 3%China - 3%The Netherlands - 3%Hong Kong - 3%Germany – 2%These markets absorbed 81% of the aforementionedmajor processed food exports.On the other hand, top 5 beverage exports in 2017include the following:1.2.3.4.5.Lemonade – 31%Brandy – 20%Beer – 19%Spirits/liquors ( 46% vol. alcoholic strength) – 7%Sparkling mineral/aerated water – 6%Total exports value of these beverage productsamounted to US 17.72 million or 83% of the totalprocessed foods export.Top 5 markets for the aforementioned major beverageexports include the following:1.2.3.4.5.Singapore – 23%Malaysia – 12%Vietnam – 11%UAE – 9%South Korea – 7%These markets absorbed 61% of the aforementionedmajor beverages exports.Imports:Top 10 processed foods/beverages imports in 2017include the following:1. Preparations with a basis of extracts, essences orconcentrates of coffee or with a basis of coffee – 5%2. Milk and cream (solid form) – 5%3. Composite concentrates ingredient – 5%4. Odoriferous substances and mixtures, used in thefood and drink industries – 4%5. Extracts, essences and concentrates of coffee andpreparations with a basis of these extracts/essences– 3%6. Fats and oils derived from milk, and dehydratedbutter and ghee – 3%7. Potatoes, prepared or preserved – 3%8. Odoriferous substances and mixtures, used as rawmaterials in industry (excl. food or drink industries) –3%9. Fructose in solid form and fructose syrup – 3%10. Non-dairy creamer – 2%These products represent 36% of total processedfoods/beverages imports in 2017.Top 10 sources of the aforementioned major processedfoods/beverages imports include the following:1.2.3.4.5.6.7.8.9.10.Indonesia – 20%Singapore -19%USA – 16%New Zealand – 11%China – 5%Vietnam - 5%Uruguay - 5%Thailand – 3%Germany – 3%Malaysia – 2%These countries represent 90% of the total imports of thecountry for the aforementioned products.Major Industry Players4Processed Fruits and Vegetables: Del Monte Philippines, Inc. Dole Philippines Inc. Maple Leaf Food Royal Greenland Int’l Ram Food Products Inc. Cenmaco Inc.*Market share of these companies is estimated at 78.3%of total retail sales value in 2016Processed Meat and Seafood The Purefoods-Hormel Co. Inc. CDO Foodsphere Inc. Century Pacific Food Inc. Pacific Meat Co. Inc. A Tung Chingco Trading* Market share of these companies is estimated at 70%of total retail sales value in 20164Source: Euromonitor, 2016
3Dairy Products Nestle Philippines, Inc. Alaska Milk Corp. Wyeth Philippines, Inc. Mead Johnson Nutrition (Philippines), Inc. Unilever RFM Ice Cream, Inc.Soft Drinks: The Coca-Cola Export Corp. Pepsi Cola Products Philippines Inc. Asia Brewery Inc. Kraft Foods (Philippines) Inc. Nestle Philippines Inc.* Market share of these companies is estimated at53.2% of total retail sales value in 2016Major Industry Challenges PH AdvantagesHot Drinks (Coffee, Tea, etc.) Nestle Philippines Inc. Universal Robina Corp. Mayora Indah TBK Pt. Unilever Philippines Inc. San Miguel Super Coffee Mix Co.Market share of these companies is estimated at 94% oftotal retail sales value in 2016 Locations Majority of the manufacturing plants of theaforementioned companies are located in Luzon (Manila,Laguna and Cavite areas). Several fruits and seafood manufacturing plants arelocated in Mindanao (e.g., plants of Del Monte and Dolein Bukidnon and South Cotabato, respectively) andVisayas. (e.g., plant of Profood in Cebu). The geomaps of processed meat, carrageenan andprocessed shrimp manufacturers are indicated in theannexes. Growth Prospects5Sub-sectorProcessed Fruits andVegetablesProcessed Meat andSeafoodDairy ProductsSoft DrinksHot Drinks52016 Est.SalesRevenue(PhP million)9,072GrowthForecast(2016-2021)2.6% CAGR56,4363.0% CAGR715*351,41874,1436.27%/year**7.4% CAGR10.4% CAGRSources: Euromonitor and National Dairy Authority, 2016CAGR compounded annual growth rate*Based on total value of dairy production in 2016**Based on growth of the value of dairy production from 2012-2016Insufficient raw material primarily due to lowproductivityHigh cost of inputs (e.g., sugar)Expensive compliance with standards, certification,licensing, permits and accreditation requirementsInadequate processing facilities complying withinternational standardsLack of diversity in export marketsLimited access to low-cost financingWeak R&DFavorable agro-climatic condition making it apremiere location for the commercial agribusinessproduction, particularly of commodities which can beviably produced given our geolocation (e.g., coffee,cacao, coconut, tropical fruits and vegetables, etc.).Abundant bodies of water with rich coastal andmarine resources enabling the country to be a worldleader in fisheries production (e.g., oceanic tuna,seaweed, aquaculture, etc.).Large local consumer base with extended marketssuch as ASEAN and EU, affording the country ofpreferential market access.Comprehensive government support provided bydifferent government agencies from production,processing, research and development (R&D),extension to marketing.Enabling laws for credit access, farmingmechanization and modernization and food safety(RA 10000 or the Agri-Agra Reform Credit Act of2009, RA 9367 or Agriculture and FisheriesModernization Act of 1997, RA 10601 or Agricultureand Fisheries Mechanization Act of 2013 and RA10611 or the Food Safety Act of 2013, respectively).Existence of local product standards aligned withinternational product standards, product certificationsystems for Halal and Kosher, codes for GoodAgriculture and Aquaculture Practice (GAP, GAqP)and Good Manufacturing Practice (GMP).Agricultural/fishery production and/or processing mayavail of the following incentives, if qualified andregistered with the DTI-Board of Investments: Income Tax Holiday (ITH)- Six (6) years for projects with pioneer status andfor projects located in a Less Developed Area(LDA)- Four (4) years for new projects with non-pioneerstatus- Three (3) years for expansion/modernizationprojects
4 Duty exemption on imported capital equipment,spare parts and accessoriesExemption from wharfage dues and any export tax,duty, impost and feesTax exemption on breeding stocks and geneticmaterialsTax credits on imported raw materialsTax and duty-free importation of consignedequipmentAdditional deduction for labor expenseEmployment of foreign nationalsSimplification of customs proceduresAccess to bonded manufacturing warehouseInvestment OpportunitiesProcessed Meat Production of manufacturing-grade meat Establishment of AAA meat handling facilities(slaughterhouse, poultry dressing plant and meatcutting plant) Cold chain (storage, warehousing and transport) Establishment of government-accredited testinglaboratories Product development – R&D on development ofhigher value-added processed meat products;development of other regional delicaciesandutilization of organically-grown livestock/poultryproductsCarrageenan Development of new and revival of idle seaweedfarms Establishment of additional seaweed nurseries Establishment of reference laboratories Modernization/upgrading of processing plants R&D investments in new carrageenan applications,e.g., seaweed-based 3D printing filament Equipment: All-weather dryers, portable MCanalyzers and atomic absorption spectrometers(testers)Processed Shrimp Production of raw shrimp Establishment/operation of new governmentaccredited hatcheries Establishment of ice plants producing slurry ice Shrimp processing accredited by international exportmarketsCondiments/Sauces Production of raw materials (herbs and spices suchas onion, garlic, chili, pepper, etc.) Condiments production for export Upgrading of processing facilities Manufacture of packaging materials and equipmentDried Mango Mango plantation Production of mango seed oil Modernization/ Rehabilitationmango processing plantofexistingdriedCacao Tablea Nursery establishment to produce certified plantingmaterials R&D on cacao variety improvement Production of cacao (raw; integrated withfermentation facility since market provides premiumprice on fermented, fine-flavored certified beans);intercropping of cacao also possible with supportfrom the government (e.g., PCA) Cacaoprocessing(e.g.,chocolatebars,tablea/choco drinks, confectioneries, etc.)Industry ContactsCOMMODORE EDUARDO B. GONGONA, PCG (Ret)Undersecretary for Fisheries and Concurrent NationalDirectorBureau of Fisheries and Aquatic Resources (BFAR)PCA Building, Diliman, Quezon CityTel. Nos.: 63(2) 929-8074; 929-9597; 455-6801; 3324720Director NESTOR P. ARCANSALINResource-Based Industries ServiceDTI – Board of Investments (BOI)385 Sen. Gil Puyat Ave., Makati CityTel. No.: ( 63 2) 895 – 3977E-mail: NPArcansalin@boi.gov.phEMMANUEL F. PIÑOLSecretaryDepartment of AgricultureElliptical Road, Diliman, Quezon CityTel. No: 920.3986 / 920.4369Fax No.: 920 - 3986E-mail: osec.da@gmail.comMS. NELA CHARADE G. PUNO, RPHDirector-GeneralFood and Drug Administration (FDA)Civic Drive, Filinvest Corporate City, Alabang,Tel. No.: ( 632) / 857-1999 / 809-4390 loc. 2183 & 2184Fax No.: ( 632) 807-0751E-mail: ncgpuno@fda.gov.phMR. ROBERTO C. AMORESPresidentPhilippine Food Processors and ExportersOrganization, Inc. (PHILFOODEX)Unit 1205 Jollibee Plaza, Emerald Ave., OrtigasBusiness Center, Pasig CityTel.No. ( 632) 634-3304 / 634-3466Fax No. ( 632) 637-7434E-mail: bobby.amores@hilasmc.com
5AnnexesIn Million PhP(2000 03,249652,709685,360Gross Value Added (GVA) of Food manufactures Beverage ,007613,616666,657675,624732,050765,570Total GVA in 1,884,3202,045,517Total ,668,287D A/B42%40%40%38%39%37%9%9%9%9%9%9%Sub-total:Share to Manufacturing GVAShare to Total GDPSource: PSANo. ofEstablishmentsNo. of Employment2014201520142015Value of Output(000 PhP)20142015Value Added(000 PhP)20142015Food 2,772,098174,669,061179,049,629Beverage industriesSub-total:BC A 61,394,708100,019,654279,069,283Total – All 24%26%ShareE C/D23%23%20%19%Source: PSAASPI survey covers only establishments with more than 20 direct employees
6Volume of Production Index (VoPI)(2000 5.20107.20102.10132.40125.90Value of Production Index (VaPI)(2000 esSource: PSAVoPI - Processed Foods and Beverages IndustryVaPI - Processed Foods and Beverages Food80.00Beverages60.00Index ValueIndex 0020.00-2011 2012 2013 2014 2015 2016 20172011 2012 2013 2014 2015 2016 2017
7Philippine Processed Foods and Beverages Export (In US FOB), 2012-2017Product Group2012BeveragesProcessed 45Fresh 519,886Total Food ExportD A B 2873,432,236,9813,354,485,260ShareE A/D47%40%43%50%49%48%Philippine Processed Foods and Beverages Import (In US FOB), 2012-2017Product Group2012BeveragesProcessed 555,516Fresh 486,990,406Total Food ImportI F G 1357,595,787,5477,736,931,538ShareNet Exports(Imports)J F/IK A-F53%58%(1,226,624,390)(1,313,724,549)Source: DTI-EMB (2018), P preliminaryExport Value Growth (%)Import Value 2.78)(0.97)2.659.9654%52%(1,492,860,351) (2,191,705,209)Average Net Export 1,603,171)
8Geomaps of Carrageenan, Processed Meat and Processed Shrimp ManufacturersCarrageenanSource: BOI - PMOProcessed MeatProcessed Shrimp
foods industry grew by 5.38% per year while beverage industry grew by 5.01% per year, between 2012-2017, on the average. Using VaPI as a proxy for production value, processed foods industry grew by 5.89% per year while beverage industry grew by 8.35% per year, on the average. Consistent with the global experience, local production
unbalanced and liable to be over-consumed and to displace all three other NOVA food groups, all of which include foods processed in some form. These are unprocessed or minimally processed foods, processed culinary ingredients, and processed foods (Monteiro et al., 2017a).
The NOVA system categorises food into four groups: 1. Minimally processed 2. Culinary ingredients 3. Processed foods 4. Ultra-processed foods. Identifying ultra-processed foods (Monteiro et al., 2019) The food manufacturing industry is not obliged to state on food labels the processes used in its products and even less the purposes of these .
the food products and beverage industry of bangladesh 3.2 types of foods and beverages products made in bangladesh. 16 3.3 impact on bangladesh gdp 18 3.4 employment opportunities 21 3.5 strategic issues in bangladesh. 22 3.6 swot analysis of food and beverage of bangladesh 23 3.6.1 strengths of bangladesh foods and beverage industry 24 3.6.2 weakness of foods and beverage industry of .
Sep 04, 2017 · quality convenience foods for busy people. "The trick is to distinguish between foods that have been lightly processed versus heavily processed," says Armul. "Lightly processed foods include pre-cut apple slices, hard-boiled eggs, canned tuna and frozen vegetables. These are nutritious ch
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