W4 Tomato Update: Global Tomato Prices Surged in Jan-24 Amidst Climatic Challenges, Morocco Braces for a 30% Decline in Tomato Production, and Russia's Tomato Prices Dropped by 0.4%

Tomato Prices Surged in the UK Amidst Escalating Production Costs and Climatic Challenges

Tomato prices have surged sharply recently, with inflation rising to 4%. This is due to a 38.5% increase in production costs since 2022, the largest among the nine primary fruit and vegetable producers in the United Kingdom (UK). The overhead costs of UK tomato growers have also increased significantly. Wholesale tomato prices have also increased considerably, reaching a 50-year peak of USD 4.12 per kilogram (GBP 3.26/kg) in 2023. Climate change and rising production costs will reduce UK tomato production in 2024. High inflation, drought, and extreme weather have added to the challenges faced by tomato growers. Rising electricity prices, greenhouse heating costs, and fertilizer and seed prices have also increased. Despite inflation slowing to 3.7% in Nov-23, industry insiders predict high tomato prices will persist for an extended period.

Ukrainian Greenhouse Tomato Prices Surge 20% WoW Amidst High Demand and Limited Supply

The Ukrainian market is experiencing a 20% week-on-week (WoW) increase in greenhouse tomato prices due to high demand and limited supply. The price increase is also due to unstable and smaller volumes of Turkey's tomatoes. Local plants are also not available for sale due to seasonal factors. Compared to other countries in the project monitoring region, only Poland currently offers higher prices for greenhouse tomatoes at an average of USD 2.6/kg. Imported tomatoes in Ukraine are 22% more expensive than at the end of Jan-23.

Kozaklı Tomatoes Reached the Netherlands Markets in 2024

Tomatoes cultivated in the Kozaklı district of Nevşehir, Turkey, which utilize geothermal water, are now being shipped to European markets, particularly the Netherlands. Heated to 90 degrees, the geothermal water serves a dual purpose by warming buildings and greenhouses, leading to significant energy cost savings. Annually, the district yields approximately 15 thousand tons of tomatoes, with half of the produce destined for export to the Netherlands and the remaining portion distributed within the domestic market and other European countries. There are plans for further expansion, increasing greenhouse areas to 600 thousand square meters (sqm) and creating job opportunities for 350 families, predominantly benefiting women.

Mexican Roma Tomato Prices Hit Record Highs in W4, Anticipated to Sustain Upward Trend

During W4, Mexican Roma Tomatoes continue to command exceptionally high average prices, setting records. The primary exporting region, Sinaloa, is experiencing lower-than-anticipated harvest volumes attributed to unusual weather conditions in key production areas of the Mexican state. The free on board (FOB) McAllen prices for 25 pounds (lb) across various size categories, including Jumbo, X Large, Large, and Medium, range from USD 33 to 35. These elevated prices are anticipated to persist in the upcoming week, reflecting the ongoing supply challenges in the region.

Morocco Faces 30% Decline in Tomato Production Amid Extreme Weather Conditions

Morocco's tomato production is predicted to drop by up to 30% this 2023/24 season, according to the Moroccan Association of Fruit and Vegetable Producers (FIFEL). The decline is attributed to high summer temperatures exceeding 50 degrees Celsius and early frost affecting ripening. Despite this, Morocco has significantly increased its tomato exports, with 727 thousand tons of tomatoes delivered to the European Union (EU) in the 2022/23 season. FIFEL has not commented on the potential impact of the disease on exports.

Tomatoes Experience 0.4% Price Decline in Recent Week in Russia

Russia's tomato prices decreased by 0.4% from January 16 to 22, 2024, following a 40% year-on-year (YoY) increase in Dec-23. Cucumber prices rose by 40% and are still growing slower, with a 0.98% WoW growth. Other fruit and vegetable prices in Russia increased by 24.19% in 2023, with cabbage rising by 2.8%, carrots by 1.9%, bananas by 1.7%, beets by 1.5%, onions by 1.1%, and apples by 1%.