USA: Record winter tomato prices contradict price suppression claims

Published 2024년 4월 11일

Tridge summary

The Florida Tomato Exchange (FTE) has requested the termination of the Tomato Suspension Agreement with Mexico, arguing that it suppresses U.S. tomato grower prices, particularly focusing on roma tomatoes and ignoring broader market conditions such as weather impacts and high prices in other tomato categories. This move has sparked controversy, with industry stakeholders including NatureSweet, Texas International Produce Association, Mastronardi, and the Fresh Produce Association of the Americas (FPAA) defending the agreement, highlighting its role in stabilizing U.S. tomato prices and ensuring a steady supply amidst claims of a significant tomato shortage due to bad weather. Data from the U.S. Department of Homeland Security and the USDA showing a decrease in Mexican tomato imports further contradicts the FTE's claims, underscoring the complexity of the issue and the importance of Mexican imports in meeting U.S. demand.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

(Nogales, AZ) – During a recent winter tomato season characterized by poor weather, very limited shipments, and record pricing of $40-plus per carton, Florida’s tomato sector nonetheless continued to claim that “U.S. growers’ prices are being suppressed.”In a submission to the U.S. Department of Commerce (Commerce) on Feb. 29, 2024, the Florida Tomato Exchange (FTE) BB #:162441 reiterated its request to terminate the Tomato Suspension Agreement, which has governed tomato imports from Mexico for over 25 years.The FTE hinged its entire request on the following chart, which focuses on a sliver of the market:The FTE sent Commerce the chart literally on the heels of some shippers (including FTE members) having issued “Act of God” letters stating that supply was so limited and prices were so high they would not be able to meet their commitments.Yet, despite facts to the contrary, the FTE went on to suggest to Commerce that during the recent winter vegetable season “Mexican tomato ...

Source: Producebluebook