Weekly Product Updates

W43: Tomato Update

Fresh Tomato
Morocco
Published Nov 2, 2023
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In W43 in the tomato landscape, during a meeting of the tomato subgroup within the Expert Group of the European Commission's Observatory for the Fruit and Vegetable Market, it was reported that Spain's tomato production for the past summer season reached 475,051 tons, marking a 6% decrease compared to 2022. Approximately 50% of this production came from Andalucía. The total cultivation area for tomatoes reduced by 300 hectares in 2022, and production costs are estimated to have increased by over 34% since June 2021. For the upcoming winter season, tomato production in Spain is expected to reach approximately 1.216 million tons, a quantity similar to the previous year.

The Coordinator of Farmers and Ranchers Organizations (COAG) is demanding swift European measures to combat unfair competition from third-country tomato imports. They call for steps like enforcing European Union (EU) production standards in trade deals, revising entry price systems, and implementing safeguards during market disruptions. Spain's tomato industry is predicted to significantly decline by 2035 due to this competition, especially from Morocco and Turkey.

Furthermore, Morocco's Agriculture Minister announced government subsidies ranging from 50 to 70% for tomato, onion, and potato cultivation due to high seed and potato costs. Tomato farming will receive USD 3.91 to 6.84 thousand per hectare (ha) (MAD 40 to 70 thousand per ha). The government will also provide 600 thousand tons of phosphate fertilizers and subsidize nitrogen fertilizer imports with USD 212.39 million (MAD 2.2 billion). The industry has been affected by four consecutive years of drought, rising cultivation expenses, and recent earthquakes.

In addition, the French National Association of Tomatoes and Cucumbers has raised concerns about the rising imports of tomatoes in France due to the lack of government investment and increasing regulatory hurdles. In 2022, France saw a 19% increase in its tomato yield, reaching 425,552 tons, with Moroccan tomatoes (primarily cherry tomatoes) making up 63% of the imported tomato market. However, the French Ministry of Agriculture predicts a 13% decline in the national tomato yield in 2023. This drop is attributed to various factors, including decreased sunlight at the beginning of the season and rising cultivation costs.

In 2023, western Ukraine's tomato production rebounded to pre-war levels, recovering from a drop in output the previous year due to the occupation of the Kherson region, a major tomato-producing area. This year, the "Shuvar" market saw record tomato sales in August and September, driven by increased production in Western Ukraine. Producers in this region significantly expanded tomato cultivation, benefiting from more greenhouse areas and larger harvests. Favorable weather and consistent supplies from the Odessa region also contributed to this successful season. 

Greenhouse complexes in Ukraine increased tomato prices in W43 due to strong demand and reduced supply, caused by cooling weather in many regions and a scarcity of cheaper summer greenhouse tomatoes in the market. Currently, greenhouse tomatoes are selling for USD 1.30 to 1.66/kg (UAH 47-60/kg), roughly 10% higher week-on-week (WoW). The limited supply is attributed to most small-scale producers having nearly completed their sales, leading to only small batches available. Many producers plan to attempt further price increases in the coming week due to continued high demand.

Lastly, despite recent relief from a 14-year drought, Chile still faces a water crisis. To address this, scientists at the University of Chile initiated the "PlantaComCiencia" project in 2020, aiming to develop tomato and kiwi varieties resistant to extreme climate conditions. Genetic editing techniques have accelerated the development of these varieties, allowing for the creation of crops that can withstand the challenges posed by climate change. However, the road to commercialization is still long, with acclimatization and field trials expected in the next two years. This biotechnological approach offers hope for mitigating the impacts of climate change on Chilean agriculture.

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