Vegetable & Melon Farming

Vegetable & Melon Farming

Brief Excerpt from Industry Overview Chapter:

Companies in this industry produce vegetable and melon crops, seeds, and bedding plants. Major companies include Bolthouse Farms, Chaoda Modern Agriculture, Chiquita, Dole Food, Fresh Del Monte Produce, and Mastronardi Produce.

The US vegetable and melon farming industry includes about 70,000 farms with combined annual revenue of about $17 billion and is expected to have moderate growth over the next two years. Key growth drivers include new varieties of produce and consumer interest in healthy eating.

Vegetable and melon farming covers about 50 types of produce, including lettuce, dried beans, carrots, sweet corn, potatoes, tomatoes, broccoli, watermelon, honeydew, and cantaloupe.

COMPETITIVE LANDSCAPE

Demand is driven by population growth, consumer interest in healthy eating, and government programs promoting fresh produce. The profitability of individual companies depends on maximizing crop yield and minimizing loss from disease, insects, or unfavorable weather. Large companies have advantages in diversified crop production and access to labor. Small companies can compete effectively by specializing in organic, heirloom, or specialty crops. The industry is concentrated: the top 10 percent of farms generate almost 90 percent of industry revenue.

The vegetable and melon industry competes with grain, oilseed, fruit, and tree nut farming for cropland and acreage, as farmers tend to grow crops with the highest yield and payout.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include potatoes (about 25 percent of revenue), lettuce (about 15 percent), and tomatoes (about 15 percent).

Vegetables are farmed according to two primary end-uses: fresh or processed....