New report examines frozen fruit, veg sector
10 percent higher than other companies in the manufacturing sector,
according to report that examines the sector's business.
Published by Supplier Relations US, the new report draws on 10 years of data from the sector, and includes statistics on imports, exports and US consumption. "Frozen Fruit, Juice, and Vegetable Manufacturing Industry In The US And Its Foreign Trade (1996-2008)" reveals that the industry's revenue in 2006 neared the $10bn mark, with gross profit of 34 percent at $3.4bn. The sector was made up of 243 establishments last year, including manufactures of frozen fruits, frozen vegetables, frozen fruit juices, ades, drinks, cocktail mixes and concentrates. The average revenue per establishment was calculated at $41m. According to the report, the most consumed items in this segment are: fresh oranges (14.7 percent), white potatoes (13.8 percent), all other fresh vegetables (11.4 percent), frozen fruits, for further processing (6.9 percent), frozen vegetables for further processing (6.4 percent), other fresh fruits (excluding oranges, apples, and strawberries) (5 percent), paperboard containers, boxes, and corrugated paperboard (3.5 percent), fats and oils (2.2 percent), fresh sweet corn (1.8 percent), and fresh apples (1.6 percent). These top consumed materials represent 67.7 percent of all materials consumed in this industry, said Supplier Relations US. In a comparison with other manufacturing segments in the US, the frozen fruit and vegetable industry revealed a five percent lower cost of materials, but eight percent higher energy and fuel costs. Administrative, sales and marketing costs were 23 percent higher, while profits were ten percent higher. The total import value for the year 2006 was $1.8bn, almost 11 percent higher than the previous year. The US had imported industry related merchandises from 78 countries in 2006, with the top importing countries being: Canada, Mexico, Brazil, China, and Chile. The total export value for 2006 was $1.2bn, which is around 22 percent higher than in 2005. The US had exported industry related merchandises to 121 countries in 2006. The top exporting countries were: Japan, Canada, Mexico, the Netherlands, and China. Adding the import and subtracting the export, the total US consumption value of this industry for the year was $10.6bn. According to the report, frozen fruit, juice, and vegetable manufacturers used an estimated 73 percent of their full production capacity for the fourth quarter of 2006 and 75 percent for the fourth quarter of 2005. Based on the total shipment value of $10bn for the year 2006, the industry could have increased its total shipment value to $13.7bn under full production capacity, said the report.