W5 Tomato Update: EEC Council Approves Duty-Free Tomato Imports for Russia and Belarus, France Raises Concerns Over 7.6% YoY Surge in Moroccan Tomato Imports in 2023

The EEC Council Granted Duty-Free Import Approval of Tomatoes into Russia and Belarus

The Council of the Eurasian Economic Commission (EEC) has decided to waive customs duties on medium-sized and large-fruited tomatoes imported into Russia and Belarus until May-24. The allocated quotas for this exemption are 100 thousand metric tons (mt) for Russia and 6 thousand mt for Belarus. However, ribbed, oblong, and cherry-shaped tomatoes are not covered. The decision is in response to the increased demand for tomatoes and a shift in the types of tomatoes grown by agricultural producers. The Minister for Trade of the EEC highlighted the current challenges in sharply increasing greenhouse tomato production, and import supplies from Türkiye, China, Egypt, and Iran are seen as a short-term solution to balance the market.

Moreover, on Dec-23, the Russian Subcommittee on Customs Tariff and Non-Tariff Regulation and Protective Measures in Foreign Trade approved a tariff exemption for the import of 130 thousand mt of tomatoes in the first half of 2024 to address the risk of a shortage in the domestic market. The Ministry of Agriculture expects this measure to help saturate the domestic market and provide consumers with fresh tomatoes at affordable prices. Depending on its type, current duties on tomatoes range from 10% to 15%.

South Korea Anticipates Increased Tomato Cultivation in 2024

In South Korea, cultivation areas for cucumbers, watermelons, and tomatoes are expected to increase in 2024, driven by expectations of rising prices. Specifically, the tomato cultivation area is projected to reach 5,573 hectares (ha), marking a 3% year-on-year (YoY) increase, attributed to anticipated improved profitability. Additionally, the water supply has slightly increased, and the overall production of tomatoes for the year is expected to be 347 thousand mt.

Vine Tomatoes in Italian Markets Experience a Significant Drop to Just Above USD 1.08/KG

In specific markets in Italy, vine tomatoes are undergoing a substantial price reduction, dropping from the typical price of over USD 2.15 per kilogram (kg) to just above USD 1.08/kg (kg). In Rimini, vine tomatoes are priced slightly above USD 1.08/kg.

France Imported 7.6% More Moroccan Tomatoes in 2023, Raising Concerns Amidst EU-Morocco Trade Agreement

France currently imports 50% of its vegetables and 60% of its fruit, despite a sovereignty plan announced in 2023. Market gardeners and fruit growers faced intense competition from the southern Mediterranean basin. The French Association of Producers of Tomato and Cucumber has raised concerns about the surge in imports of Moroccan tomatoes to France in 2023. This increase is due to a trade agreement between the European Union (EU) and Morocco. In the 2022/23 season, 424.69 thousand mt of Moroccan tomatoes were imported into France, compared to 394.74 thousand mt in 2021/22, marking a 7.6% YoY increase. In terms of value, this surge represents more than USD 180.65 million, reflecting a 27.5% YoY increase, as reported by the association.

French Protests Disrupt Spanish Fruit and Vegetable Exports in Jan-24

The ongoing farmers' protests in France are causing significant harm to Spanish fruit and vegetable exports. The damage extends beyond attacks on trucks and the destruction of merchandise, encompassing disruptions at the source. Vegetables, particularly peppers, cucumbers, lettuce, tomatoes, and cabbage, along with fruits like citrus and strawberries, have been heavily affected in Jan-24. The protests not only impede transit through French territory but also create disturbances at the markets of origin. This results in delays and, in some cases, the inability to harvest crops promptly due to challenges in transporting and ensuring their timely arrival at destination markets, considering the perishable nature of these products.

Polish Greenhouse Tomato Prices Declined 35 to 45% in W5, Prompting Questions in the Market

The Polish market has witnessed a rapid decline in wholesale prices for greenhouse tomatoes, with an average drop of 35 to 45% within a few days. Interestingly, tomato prices were at record highs at the end of W4, continuing a trend from the last season. In the previous season, record-high prices for gas and electricity led to a significant reduction in greenhouse vegetable cultivation in EU countries, prompting increased imports and raising prices to unprecedented levels.