1. Weekly News

Ghana

CAG Urges Action to Address Post-Harvest Losses Ahead of Upcoming Tomato Bumper Season

The Chamber of Agribusiness Ghana (CAG) urged the government to prepare for the upcoming tomato bumper season to address and reduce the longstanding issue of post-harvest losses. The CAG and affiliated farmer groups emphasized the urgent need to invest in cold storage and transportation infrastructure to mitigate these losses. Lasting from late Dec-24 through April and May next year, the anticipated bumper season underscores the critical need for such infrastructure improvements. The lack of cold storage and transportation investments have been persistent issues, forcing reliance on imports from countries like Burkina Faso and Morocco. Each year, Ghana experiences post-harvest losses totaling around USD 600 million, with the tomato sector alone accounting for approximately USD 60 million. Poor road networks and unreliable transportation systems further hinder the efficient movement of tomatoes from farms to markets. Moreover, insufficient storage facilities force farmers to sell their produce quickly at lower prices to prevent spoilage.

South Korea

South Korea Implements New Quarantine Guidelines for Exporting Tomatoes to Japan

On September 3, the South Korean National Animal and Plant Quarantine Agency (APQA) introduced new 'Quarantine Guidelines for Exporting Korean Tomato Fruits to Japan.' This action follows the detection of the tomato hornworm, a significant pest that affects tomato crops, on a farm in Pyeongtaek, Gyeonggi Province, in Mar-24. Japan classified the tomato hornworm as a quarantine pest, and its presence restricts the export of tomatoes unless it meets specific import requirements. The guidelines require tomato growers and export processing plants to register with APQA. They must also install nets with a maximum diameter of 1.6 millimeters (mm) on windows and ventilation openings to prevent pest intrusion. Additionally, only tomatoes from farms where the tomato hornworm has not been detected through surveillance traps set up by plant quarantine officers at least two months before harvest are eligible for export to Japan. Farms must apply for export registration at regional APQA offices to comply with these regulations.

United States

California's Processing Tomato Production Expected to Drop 12% in 2024

California's contracted production of processed tomatoes is projected to decline by 12% year-on-year (YoY) in 2024, according to the United States Department of Agriculture (USDA) report. The state is expected to produce 11.3 million metric tons (mmt) of processing tomatoes, down from 12.8 mmt in 2023. Average yields are forecasted at 50 metric tons (mt) per acre across 226 thousand acres, reflecting an 11% YoY reduction in acreage compared to the previous year. The decrease is due to extreme summer heat, negatively impacting yields despite favorable spring planting conditions. Harvest began in early Jul-24 in the Central Valley and is expected to conclude in October, earlier than in 2023. Although early crops have shown good quality, the effects of heat on later plantings still need to be determined. Tomato shipments through Aug-24 have increased by 29% YoY, although this rise is partly due to delays in 2023.

Ukraine

Tomato Prices in Ukraine Continue to Rise

Ukrainian tomato prices continue to rise for the third consecutive week, driven by a reduced supply of greenhouse-grown tomatoes and unfavorable weather that damaged a portion of the open-field tomato crop. Market participants report a strong demand for greenhouse tomatoes, allowing producers to increase prices. Prices range from USD 0.97 to 1.34 per kilogram (kg), reflecting a 12% week-on-week (WoW) increase. This trend is mainly due to the seasonal decline in supply, with shipments from summer greenhouses and open fields becoming scarce and greenhouse yields being small and inconsistent.

2. Weekly Pricing

Weekly Tomato Pricing Important Exporters (USD/kg)

Yearly Change in Tomato Pricing Important Exporters (W36 2023 to W36 2024)

Mexico

In W36, wholesale tomato prices in Mexico fell significantly by 19.54% WoW to USD 1.40/kg, continuing to be the highest among global suppliers, including France, Turkey, Spain, and Morocco. Prices also dropped 18.60% month-on-month (MoM) and 18.13% YoY. This follows the Mexican tomato forecast rising 2% YoY to 3.30 mmt from 3.22 mmt produced in 2023. This anticipated rise in production has contributed to price stabilization and recent declines. Despite some producers' investments in protected cultivation methods, many regions still rely on open-field farming, which exposes them to climatic risks and leads to lower yields.

Morocco

In W36, Moroccan tomato prices remained steady WoW at USD 0.30/kg but dropped significantly by 16.67% MoM. This decline is attributed to overproduction during the latter part of the 2024 season, worsened by hotter temperatures, resulting in a substantial fall in local and export prices. Additionally, Moroccan tomato exports to the EU decreased by 6.8% from Sept-23 to May-24, further impacting prices. Despite these trends, there are signs of tomato acreage reduction, with estimates suggesting a 10 to 15% YoY decrease from the previous season.

Spain

In W36, Spain's wholesale tomato prices saw a significant increase of 18.87% WoW, rising from USD 0.53/kg to USD 0.63/kg. This price rise is due to seasonal fluctuations as the summer production cycle nears its end, and early autumn varieties have yet to reach the market. Localized weather issues, including intense heat waves and irregular rainfall, have also disrupted tomato yields. These challenges and the transition between growing cycles have constrained supply, pushing prices higher. Despite this weekly increase, prices remain 19% lower YoY. Last year, heightened export demand from Northern Europe and the Middle East, alongside domestic supply limitations, led to higher local prices as exporters prioritized international markets over local demand.

Turkey

In W36, Turkey's tomato prices remained steady WoW at USD 0.80/kg but surged by 50.94% YoY. The significant price increase is due to drought conditions exacerbated by climate change, severely impacting agricultural output. Additionally, rising diesel fuel and transport costs have contributed to higher prices. These challenges have led to frequent protests by farmers in provinces such as Bursa, Kahramanmaras, Balikesir, Aksaray, and Nigde. In Gaziantep, some farmers have protested by dumping unsold tomatoes on the road, highlighting their economic hardships, increasing costs, and declining profits amid ongoing inflation.

France

In W36, tomato prices in France surged by 29.37% WoW, 18.59% MoM, and 8.19% YoY to USD 1.85/kg from USD 1.43/kg. Despite a generally favorable growing season, localized adverse weather events in Aug-24, such as heavy rains and heatwaves, negatively impacted tomato quality and yields in some regions. For instance, these weather conditions reduced yields in certain areas by 10 to 15% YoY. Additionally, disruptions in the supply chain, including transportation strikes and increased fuel costs, have further escalated distribution costs. Due to higher fuel prices and logistical delays, transportation expenses have risen by approximately 12%, contributing to the overall increase in tomato prices.

3. Actionable Recommendations

Address Production Issues and Price Trends in France

To address the increase in French tomato prices and ongoing production challenges, French producers should focus on optimizing crop management practices through advanced technology. Implementing precision agriculture technologies such as drones and soil moisture sensors can enhance crop monitoring and irrigation efficiency. Early detection systems using machine learning and image recognition can help manage plant diseases and pests. Investing in climate control systems for greenhouses and automated irrigation systems will optimize growing conditions and water use. Utilizing farm management software for data analytics can improve decision-making and logistics. Moreover, integrating blockchain technology for supply chain transparency and intelligent packaging to monitor storage conditions will support more stable pricing and reduce post-harvest losses.

Address Production Decline and Market Demand in California

To address California's forecasted 12% YoY decline in contracted processing tomato production, growers should focus on optimizing yields through improved crop management practices. Specifically, selecting heat-tolerant tomato varieties such as 'San Marzano' and 'Roma VF' can help manage the impact of extreme summer heat. These varieties are known for their resilience to high temperatures and suitability for processing. Enhancing irrigation techniques, such as implementing drip irrigation systems and soil moisture sensors, will further support crop health and productivity. Collaborating with the USDA and research institutions to develop strategies for mitigating the impact of extreme heat, such as exploring shade netting or climate-smart practices, can support yield stability. Processors should also consider diversifying their supply sources by incorporating early-harvest varieties like 'Early Girl' or 'Brandywine' and exploring long-term contracts to ensure a steady supply and stabilize prices.

Adapt to Climate Challenges in Turkey

To combat drought conditions, Turkish farmers should adopt advanced irrigation techniques such as drip irrigation or smart irrigation systems that target water use precisely where needed. These methods can cut water consumption while ensuring tomato plants receive the required moisture levels. Government subsidies or low-interest loans for irrigation infrastructure upgrades would encourage widespread adoption, reducing the overall water use in agriculture. Moreover, enabling farmers to implement rainwater harvesting systems can help supplement irrigation during dry spells.

Sources: Agrotimes, Fresh Point Magazine, Nongmin, Thebftonline, Financialfood, Fruitgrowersnews, Fresh Plaza