W47 Tomato Update: Global Industrial Tomato Production Reaches Record Level Production and Turkey and India Navigate Export Challenges and Price Fluctuations

Global Industrial Tomato Production Nears Record High at 44.19 Million Tons

Global industrial tomato production has reached an estimated 44.19 million tons, the second-highest ever recorded, close to the 2009 record of 44.51 million tons, according to World Tomato Processing Council data. In Europe, Italy and Greece reported production declines, with 5.4 million metric tons (mt) and 390 thousand mt, respectively. In Andalusia, Spain, water scarcity has limited tomato cultivation to 2 thousand to 3 thousand hectares (ha) out of a potential 10 thousand ha. On the other hand, Portugal saw an estimated production of 1.5 million mt, a 3% YoY increase.

Despite not facing water limitations, Portugal emphasizes the need for efficient use of resources due to cultivation costs. Despite contributing only 3% to global tomato industry production, Portugal, the United States (US), Spain, and Chile are among the top four exporting countries. Industry experts call for producer collaboration to enhance the product's value and maintain or improve prices.

European Commission Forecasts 4% YoY Increase in EU's Total Tomato Harvest for 2023

The European Commission forecasts a 4% YoY increase in the European Unions' (EU) total tomato harvest in 2023, reaching 16.8 million tons compared to the previous year. However, this increase primarily impacts tomatoes for industrial purposes. For tomatoes destined for the fresh market, it is estimated to be around 6.3 million tons, representing an increase of approximately 100 thousand tons. Throughout 2023, high prices for fresh tomatoes were observed on the EU market. In Oct-23, the combined net producer price of spherical, cluster, and cherry tomatoes averaged USD 2.28 per kilogram (EUR 2.09/kg), marking a 24% YoY increase.

Hungary Sees 38% YoY Increase in Industrial Tomato Quantity

In Hungary, there has been an increase in the quantity of industrial tomatoes by 38% YoY, reaching 110 thousand tons. The country's foreign trade balance for fresh tomatoes also improved significantly. In the first eight months of 2023, the quantity of imported tomatoes was nearly equal, with 15.4 thousand tons imported, a 9% YoY increase. Spain was the primary source of imports, supplying 4.79 thousand tons, a 2% YoY decrease, followed by Slovakia, with 4.24 thousand tons, a 10% YoY increase, and Turkey with 1.94 thousand tons, a 6% YoY increase.

Regarding prices at the Budapest Wholesale Market, during the W1 to 46, the producer price for spherical tomatoes on the local market increased by 8% YoY, to USD 2.09/kg (HUF 729/kg). Cluster tomatoes saw a 6% YoY increase, to USD 2.46/kg (HUF 858/kg), and cherry tomatoes experienced a 9% YoY increase, to USD 4.53/kg (HUF 1,581/kg). Hungary faced less of a shortage of tomatoes than the EU, contributing to a relatively modest price increase.

Greenhouse Tomato Harvest Begins in Mersin, Turkey, Amid Export Challenges and Pricing Pressures

In Mersin, a central hub for fresh vegetable and fruit production in Turkey, greenhouse tomato harvesting has commenced. While local tomato prices are low due to export challenges, producers hope for increased exports to balance the market and offer affordable tomatoes to consumers. With over 1.2 million tons of annual tomato production, the region faces pricing pressures as geopolitical conflicts impact exports. Despite challenges, Mersin remains a significant contributor to Turkey's greenhouse tomato production, covering more than 30% of the country's production.

Surge in Tomato Prices Hits Consumers in Mumbai, India, Amid Temporary Fluctuations

Consumers in Mumbai, India, are experiencing another surge in tomato prices in wholesale and retail markets. Traders at the Agriculture Produce Market Committee (APMC) vegetable market reassure that this increase is temporary, expecting prices to stabilize with the winter season bringing a surge in produce. This fluctuation follows a trend in Aug-23 when tomato prices exceeded USD 2.40/kg (INR 200/kg) in retail. It was only from Sep-23 to Oct-23 that prices found stability.