STATUS OF FRUITS AND VEGETABLES INDUSTRY JOCELYN E. EUSEBIO Director,Crops Research Division PCARRD

VEGETABLE INDUSTRY Foreign trade

MAJOR PHILIPPINE VEGETABLE EXPORTS, 2003 Commodity Volume (mt) Value (‘000 US$) Shallot30,0256,716 Garlic 4,5942,650 Asparagus 3,6447,874 Onion 2, Beans, 1,215 2,003 preserved/ prepared

Markets for Shallot, Fresh/Chilled, 2003

Markets of Philippine Garlic, Fresh/Chilled, 2003

Markets of Asparagus, Fresh/Chilled, 2003

Markets for Onion, Fresh/Chilled, 2003

Markets for Beans, prepared/preserved, 2003

MAJOR PHILIPPINE VEGETABLE IMPORTS, 2003 Commodity Volume (mt) Value (‘000 US$) Dried mungbean 41,3507,813 Frozen potato 29,316 15,115 (prepared/preserved) Dried peas 24,6207,710 Garlic, fresh/chilled 18,7853,685 Tomato paste 14,8598,683 Onion, fresh/chilled 11,0011,583

Suppliers of Dried Mungbeans, 2003

Suppliers of Dried Peas, 2003

Suppliers of Garlic, Fresh/Chilled, 2003

Suppliers of Tomato Paste, 2003

Suppliers of Onion, Fresh/Chilled, 2003

PHILIPPINE PERFORMANCE in comparison with other countries

ASPARAGUS Thailand8,014 mt Philippines4,665 mt Malaysia 38 mt Indonesia 3 mt

SHALLOT Philippines 16,033 mt Indonesia6,816 mt

FRESH VEGETABLES Malaysia50,330 mt Thailand36,978 mt Philippines 8,109 mt Indonesia 4,855 mt Vietnam 3,089 mt

TRENDS AND OPPORTUNITIES IN MARKETING VEGETABLES in the DOMESTIC MARKET

Philippines’ fast food chains, hotels and restaurants, and some supermarkets require a wide variety of high quality and consistent supply of fresh vegetables. Australia remains the top supplier of lettuce, celery, cauliflower and broccoli, capturing 75% of the fresh/chilled vegetable market. China is the Philippines biggest supplier of carrot, dried mungbean, garlic, tomato paste and onion. DOMESTIC MARKET

Quality Requirements… Size is consistent Color is brighter or striking Leaves are whole and bigger Compact, firm, crispy and crunchy Retain crispiness and hold their shape Sweet with no aftertaste No traces of pest and diseases

Quality Requirements Sanitary handling and packaging is assured Shelf life is longer; can last up to three weeks Cleaned, fully trimmed

The VEGETABLE INDUSTRY SITUATION in LUZON

Distribution of Highland Vegetables from the Farm to Consumers, CAR Farmers (Mt. Province & Benguet) 100% Consumers & Other Local Markets w/in CAR 11.17% Hangar Market 54.40% La Trinidad Trading Post 66.24% 22.64% Urdaneta Market = 15.73% Greater Manila Markets = 49.90% Other Markets = 8.56% 66.24% 0.20%10.97% 10.45% 24.37% 3.61% 5.28% 25.53% 4.95% 31.76% High-End Outlets = 14.64% 6.0% 8.64% 2.00% Bambang Trading Post 3.50%

Trading Seasonality Top Priority Semi-Temperate Vegetables JanFebMarAprMayJunJulAugSepOctNovDec Broccoli Cauliflower Lettuce Carrots Potato (56.60)52.50 (106.43)46.50 (131.50) (49.82) (88.50) (68.68) Peak Trading Lean Trading Ave. Wholesale Price at Divisoria Ave. Retail Price (Luzon Provinces) (56.32) (37.00) (27.90) (139.40)33.33 (66.77) (40.10)27.74 (46.25) (34.00)17.87 (29.40) Cabbage 8.00 (20.10) 9.15 (22.25)

PRODUCTION– SALES MOVEMENT SITUATION COMMODITYAREA (HA) Harvested PRODUCTION (MT) (CAR, Regions 1-4) SALES MOVEMENT (w/in Luzon)** (MT) Surplus/ (Deficit) BROCCOLI ,7872,891(1,104)* CAULIFLOWER ,1473,3426,805 CELERY ,7532, LETTUCE ,3224,25666 CARROTS2, ,81549,1832,632 POTATO7, ,310100,44730,863 BELL PEPPER ,8054,3382,467 CUCUMBER ,19517,024(10,829)* TOMATO (Salad) ,21336,550(12,337)* CABBAGE9, ,693106,47827,215 ** - Based on Survey of selected Major High-End and Wet Markets in Luzon

Semi-Temperate Vegetable Production (MT) By Region

STRENGTHS OF THE SEMI- TEMPERATE VEGETABLE INDUSTRY IN LUZON A situation analysis of the semi-temperate vegetable industry reveals that the industry’s strengths are in the quality of its vegetable products, a climate suitable for semi-temperate vegetables, accessibility to the major markets, access to an abundance of local expertise, and its industrious people.

Opportunities Growing unity among stakeholders Greater familiarity among stakeholders on organic farming and Integrated Pest Management Growth of the processed food business that implies a growing market for vegetables Local talents with capabilities to manage trading facilities are available Accessibility of production areas to Metro Manila and other Major Markets Favorable weather condition good for the production of vegetables.

Advocate for appropriate legislations to support environment – friendly agriculture 2.Training and demonstration on organic farming and Integrated Pest Management 3.Use of new and appropriate varieties and improved cultural practices 4.Crop production programming and commodity clustering 5.Promotion and adoption of improved cultural practices 6.Organize producers for wet and high-end markets 7.Strengthen soil amelioration and water management 8. Increase in area planted by shifting from minor crops to priority crops and expanding production areas. Recommended Strategies To Further Strengthen the Vegetable Industry in Luzon

9. Strengthen production-processing-marketing linkage 10. Strengthen and unify the organizations of vegetable stakeholders 11. Rehabilitate and modernize existing “bagsakan” and Trading Centers 12. Establish more “bagsakan”/Trading Centers 13. Establish a cold chain marketing system 14. Promote vegetable processing Recommended Strategies To Further Strengthen the Vegetable Industry in Luzon

Status of Vegetable Industry in the Visayas

AREA DEVOTED TO VEGETABLE  Western Visayas (WV)- 14,144 hec  Eastern Visayas(EV) hec  Central Visayas(CV - 10,504 hec Total Cluster Area - 24,855 hec PRODUCTION

Area and Production of Selected Vegetables 2002 & 2003

Area and Production of Selected Vegetables 2002 & 2003

PRODUCTION VERSUS FOOD REQUIREMENT Province Per Capita kg. Prod. ( MT) Food Req. Prod. (MT) Food Req. Sufficiency Level % Western Visayas ,36620,4469,80920,79647 Eastern Visayas , ,60833 Central Visayas 2.344,83313,4714,46813,72011 CLUSTER 2.315,87840,39514,98541,12457 TOMATO Table 1

AMPALAYA Province Per Capita kg Prod. ( MT) Food Req. Prod. (MT) Food Req. Sufficiency Level % Western Visayas , ,19917 Eastern Visayas , ,50319 Central Visayas 0.732,2244,2032, CLUSTER 0.793,75412,7493,9309,13343 Table 2

EGGPLANT Province Per Capita kg Prod. ( MT) Food Req. Prod. (MT) Food Req. Sufficiency Level % Western Visayas ,90723,19911,14123,59647 Eastern Visayas 2.911,95211,3562,03411,58318 Central Visayas 1.565,9338,9815,94923,59665 CLUSTER ,98243,53619,12458,77532 Table 3

CABBAGE Province Per Capita kg Prod. ( MT) Food Req. Prod. (MT) Food Req. Sufficiency Level % Western Visayas , ,4653 Eastern Visayas , ,1404 Central Visayas 1.206,6336,9086,4907,03692 CLUSTER 1.327,16822,2397,01922,64230 Table 4

PECHAY Province Per Capita kg Prod. ( MT) Food Req. Prod. (MT) Food Req. Sufficiency Level % Western Visayas 0.521,3443,4081,3303,46638 Eastern Visayas , ,90631 Central Visayas 0.681,3273,9152,0253,98751 CLUSTER 0.643,54610,1724,26210,35941 Table 5

CARROTS Province Per Capita kg Prod. ( MT) Food Req. Prod. (MT) Food Req. Sufficiency Level % Western Visayas ,080453,1331 Eastern Visayas Central Visayas 0.994,3655,6994,0715,80570 CLUSTER 1.674,4149,5944,1259,77442 Table 6

SQUASH Province Per Capita kg Prod. ( MT) Food Req. Prod. (MT) Food Req. Sufficiency Level % Western Visayas 2.249,06814,6798,50514,93157 Eastern Visayas , ,53818 Central Visayas 3.909,8122,2429,13422,86740 CLUSTER 2.419,66421,37018,44942,33643 Table 7

UPO Province Per Capita kg Prod. ( MT) Food Req. Prod. (MT) Food Req. Sufficiency Level % Western Visayas ,3591,0412,40043 Eastern Visayas , ,87149 Central Visayas 0.362,1652,0732,1592, CLUSTER 1.194,0606,2664,1266,38236 Table 8

STRINGBEANS Province Per Capita kg Prod. ( MT) Food Req. Prod. (MT) Food Req. Sufficiency Level % Western Visayas 1.561,66210,2231,71610,39816 Eastern Visayas , ,97620 Central Visayas , ,6358 CLUSTER 0.952,82218,6702,84719,00914 Table 9

MONGO Province Per Capita kg Prod. ( MT) Food Req. Prod. (MT) Food Req. Sufficiency Level % Western Visayas 1.611,57510,5511,49010,73214 Eastern Visayas , ,4339 Central Visayas , ,67118 CLUSTER 1.262,80622,4342,66922,83611 Table 10

Volume and Percent Share of Regional Production of Selected Commodities to VISAYAS, CY 2003

Davao General Santos Manila Samar Leyte Roxas Aklan Iloilo Dumaguete Siquijor Dapitan Ozamis Legend: Inflow Outflow Cagayan de Oro Iligan Tagbilaran Surigao Butuan Bacolod Camiguin Pagadian Cebu as a Terminal Market of Agricultural Products

Seasonality of selected vegetable and area in Visayas.

Note: There is no established season for tomato, upo, pechay, and squash in Cebu.

Note: There is no established season for, eggplant, stringbeans, squash, and upo in Negros Oriental. Seasonality of selected vegetable and area in Visayas.

Note: Squash and upo(gourd) are the only vegetables that has established season in Bohol. Seasonality of selected vegetable and area in Visayas.

ISSUES AND CONCERNS  Lack of socialized credit  Poor access to market information  Unprogrammed products and marketing  Lack of Technical personnel to assists  Lack of post harvest facilities  Lack of accredited supplier in the area

The Industry Situationer in Mindanao

1.a.Specific Commodity Classification Tropical Vegies : a.Green and Leafy Pechay Mustard b. Fruit vegies: ampalaya chayote eggplant stringbeans tomato finger paper gourd squash okra cucumber radish Semi-Temp: a.Green and leafy: Cabbage Asparagus broccoli celery lettuce cauliflower b. Fruit vegies: bell pepper habichuelas w-potato carrots

1.b. Production (MT) of Vegetables per Region, CY 2002 ParticularsR9R10R11R12R13ARM M Total Tropical Vegies: 1. Green and Leafy 2. Fruit Vegies Sub-Total Semi-Temp.: 1. Green and Leafy 2. Fruit Vegies Sub-Total , Green and Leafy 2. Fruit Vegies Over-all Total , Source: DA RFU Submissions and BAS(if no submission)

1.c. Share in the Vegetable Production (MT )

1.d. Demand vs. supply Southern Philippines CY 2002 Pop’n 2002 = 19,034,251 1.d.1 Suff. level by Commodity Classi. 8% 79% 203% 309% A-Green and Leafy B – Fruit Vegies 1.d.2 Over-all SP Suff. Level 93%

10 12 ARMM 39% 311% 26% 70% 10% 6%

Surplus Commodities Tropical Vegies: a.Green and Leafy none b. Fruit veggies: ampalaya – Region 10 stringbeans – Region 10 tomato – Region 10 gourd – Region 9 & 10 squash – Region 10 Semi-Temperate: a.Green and leafy: cabbage – Region 10 asparagus – Region 12 b. Fruit/root veggies: w-potato – Region 10 & 11 carrots – Region 10

Demand ( MT) Supply (MT) Tomato Sweet/bell pepper Carrots Broccoli Lettuce Cabbage White potato Demand ( MT) Supply (MT) Tomato Sweet/bell pepper Carrots Broccoli Lettuce Cabbage White potato d.4 Demand from institutional buyers Weekly Market Demand and Supply (Source: NMVPAI – October 2003)

FRUIT SECTOR High income derived from fruit crops Major source of nutrients (vitamins, carbohydrates, minerals and proteins) High contribution to economy (local and international) Ecological functions (erosion control and green house effect) Multiple uses (industrial, medicinal, etc.)

FRUIT CROPS INDUSTRY SITUATION Agric. crops = 13,025,000 ha Fruits = 880,759 ha (6.76%) Banana 39% Papaya 0.69% Citrus 4% Pineapple 5% Jackfruit 1% Durian 0.50% Guayabano 0.29% Mango 11% Pili 0.14% Other fruits 39% Area planted (ha), to fruit crops Area planted (ha), to fruit crops Source: BAS 2003 Source: BAS 2003

Volume of production (mt), BAS 2000 Banana 35% Mango 9% Other fruits 40% Guayabano 0.005% Pili 0.02% Durian 0.27% Jackfruit 0.47% Papaya 1% Citrus 1% Pineapple 14% Agric. crops = M mt Fruits = M mt (15.76%)

Banana 25% Pineapple 19% Other fruits 33% Mango 18% Jackfruit 0.25% Citrus 3% Papaya 0.43% Durian 2% Value of production (P), BAS 2000 Agric. crops = P B Fruits = P B (21.29%)

Volume of export (mt), BAS 2000 Papaya Jackfruit Mango 3% Guayabano 0.03% Other fruits 2% Pineapple 23% Banana 72% 0.01% Citrus 0.02% 0.01% All fruits = 1.63 M mt Fresh = 35,779 mt Processed = 20,240 mt Total = 56,039 mt

Pineapple 32% Mango 11% Guayabano 0.14% Other fruits 6% Banana 51% Papaya 0.07% Citrus 0.12% Jackfruit 0.11% Value of export (US$), BAS 2000 Value of export (US$), BAS 2000 Agric. export = 2.34 B US$ (FOB) Fruits = M US$ FOB (19.83%)

GVA Contribution of selected fruits, BAS 2000 GVA in Agric. = P B Fruits = P B (18.03 %) Mango = 12.5 B pesos Banana 40% Pineapple 21% Mango 38% Calamondin 1%

9. Geographic Information System (GIS) Map for Mango Guide growers where to plant mango in suitable areas of the country.

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