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Manufacturing
I. Food Manufacturing Industry in Philippines Food manufacturing, which includes food and beverage processing, remains the Philippines most dominant primary industry. The industry is worth a gross added value of more than $2 billion and grew by 3.2 percent. The Philippines Bureau of Food and Drugs Statistical Report of Establishments lists a total number of 11601 food processing establishments nationwide. Most of the companies are owned by a single proprietor that is common among micro, cottage and small industries. There are a few large multiproduct firms, some of which operate in partnership or as a subsidiary of foreign or multinational companies. Unlike some other countries in the regions where multinationals dominate food sales, local companies such as San Miguel, RFM Corporation, Universal Robina Corporation and a few others dominate some sectors of the market or compete equally with foreign players. The food processing industry is comprised of the following major sectors: fruits and vegetables, fish and marine products, meat and poultry products, flour and bakery products, beverage and confectionery, dairy foods, food condiments and seasonings, food supplements, bottled water; snack foods, and fats and oils. Local food processors are faced with numerous challenges in order to maintain market share or when introducing a new product, now that a wide variety of imported processed foods readily enter the market due to increased trade liberalization. The industry contributes approximately 20 percent of Gross Domestic Product (GDP) per annum. Domestic processors continue to face numerous challenges, including one of the highest energy costs in Asia, the need for improvements and innovations in technology and packaging in order to become more globally competitive, insufficient post-harvest and storage facilities, and inadequate farm-to-market transportation infrastructure. There has been considerable improvement, particularly for the bigger companies whose


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