Economic status of fruit and vegetable processing industry in the Philippines / Mylene M. Gerpacio.

Thesis (BSBM - - Economics) Cavite State University.

Includes bibliographical references.

College of Economics, Management, and Development Studies (CEMDS)

GERPACIO, MYLENE MARASIGAN. Economic Status of Fruit and Vegetable Processing Industry in the Philippines. Undergraduate Thesis, Bachelor of Science in Business Management major in Economics, Cavite State University, Indang, Cavite, April 1998. Adviser: Dr. Nelia C. Cresino.

This study "Economic Status of Fruit and Vegetable Processing Industry in the Philippines" was conducted to describe the economic status of fruit and vegetable processing industry in the Philippines; ascertain the economic contribution of fruit and vegetable processing industry to the economy and forecast the volume and value of production and export of processed fruits and vegetables. Secondary data from 1980 to 1996 were used in the study.
Data were obtained from the Department of Trade and Industry (DTI), National Statistical Coordination Board (NSCB), National Statistics Office (NSO), Bureau of Export Trade Promotions (BETP) and University of Asia and the Pacific (UA&P). Data were analyzed using growth rate and Ordinary Least Squares method. The results of the analysis showed that the trend in the volume of processed fruits and vegetables from 1980 to 1996 was increasing. The volume of production reached a record-breaking mark of 1,636,145 thousand metric tons, the highest volume ever to be reached within 17 years throughout the whole period.
The value of production of processed fruits and vegetables has increased by 15.5 percent. In terms of volume of exports, the highest volume was noted in 1994 while the lowest volume of export was recorded in 1983 at 229,963 thousand metric tons. The decline in the growth rate by 42.6 percent in 1992 can be attributed to the ban imposed by the Singaporean government against Philippine processed fruits and vegetables laced with high levels of pesticide. The value of exports of processed fruits and vegetables recorded the highest growth rate in 1991 and the lowest value was noted in 1984. In 1996, the largest market of processed fruits and vegetables was the United States of America. Importation of processed fruits and vegetables followed an upward trend although slight fluctuations were observed. The highest level of imports was noted in 1990 and the lowest level of import was recorded in 1980. Imports increased by 13.9 percent from 1980 to 1996. The same trend was also observed for the value of processed fruit and vegetables imports, which has increased by 5.2 percent in the past 13 years. Domestic requirements for processed fruits and vegetables amounted to 1,007 thousand metric tons in 1996. Per capita consumption grew to 19.5 percent and was highest in 1996 at 15.4 kilograms.
The percentage of total volume of production of processed fruits and vegetables consumed domestically accounted for 55.8 percent from 1980 to 1996. The high cost of processing fruits and vegetables was noted in 1996 at P5,995,112 thousand which can be explained by the high cost of inputs such as sugar and preservatives.
Moreover, the employment generated grew at 23.9 percent for the past 11 years. It was highest in 1989 and lowest in 1983 with 4,128 employees. For more than a decade, the percentage share of fruit and vegetable processing sector accounted for 2.2 percent. However, the indirect tax contributed by the fruit and vegetable processing industry has increased by ten percent in the past nine years and has shared 17 percent to the indirect tax of the food manufacturing sector. The result of the regression analysis for the estimated volume and value of production and export exhibited a positive relationship with time.

Submitted to the University Library 04/21/1998 T-1784