Morocco Continues to Ascend in the UK Import of Fresh Tomatoes

Figure 1: Morocco Tomatoes Volume Export to UK 2018-2022

Source: Tridge, Trade Map

The UK has increased the quantities of imported fresh tomatoes from Morocco by 24.98% YoY in 2021, to 110,846 mt. As seen in the chart, the growth of imports from Morocco is rising exponentially and has more than doubled compared to 2017, when Great Britain imported 49,312 mt of fresh tomatoes from Morocco. On the other hand, although the Netherlands is still in the first place, it recorded a decline of 15.56% YoY in 2021, and taking into account the five years, the fall was 27.65%. In 2021, Morocco pushed Spain out of second place in the British import of fresh tomatoes, and Spain recorded a drop of 25.35% YoY to 68,433 mt.

The main reason for the increased import of fresh tomatoes from Morocco is Brexit, which entered into force on February 1, 2020. The extra regulations, customs controls, and taxes influenced imports from the EU more than UK exports. More considerable paperwork has affected more small businesses than large retailers. The post-COVID period in the UK did not favor British traders on the EU issue. While the full implementation of Brexit began on January 1st, 2021, trade with the EU declined, and at the same time, imports from non-EU countries increased. Although the UK is the fourth largest tomato importer with an import value of USD 636.5M, efforts are being made to reduce dependence on foreign tomatoes. Most domestic production takes place in greenhouses, which must be reheated due to the climatic characteristics of Great Britain. However, with the growth of energy sources, primarily gas used in greenhouse heating, and the Russia-Ukraine conflict, alternatives that are inevitably more expensive are being sought, and the cost of production jumped significantly in 2022. The increase in the cost of production was reflected in the price heavily. According to data from Tridge, the wholesale price of tomatoes in the UK climbed to as much as 59.4% YoY. Prices of UK tomato as of W2-Apr 2022 reached USD 3.45/kg, compared to USD 2.16/kg in the same week last year. UK's tomato prices in W2 Apr-22 set the record for the highest value over the past two years. The situation with prices has stabilized so that prices, according to the data from Tridge, range from USD 1.32-1.4/kg, thanks to the increased supply from imports on the market.

Faced with more tricky business with EU members, traders turned to alternative markets. Immediately after Brexit, the UK signed several free trade agreements —with Australia and New Zealand — while a preferential trade agreement was signed with Morocco in late 2019. Judging by the trade results between the UK and Morocco so far, there is every chance that tomato imports will continue to grow, taking into account the geographical proximity and the production capacities of Great Britain itself.