1. Weekly News

Algeria

Algeria Aims to Begin Exporting Cherry Tomatoes to the EU

Algeria aims to export cherry tomatoes to European markets, with local investors looking to capitalize on the lucrative opportunities despite fierce competition from the Netherlands, Spain, Turkey, Egypt, and Morocco. One of the Algerian investors invested USD 750 million to cultivate cherry tomatoes across 1 thousand hectares (ha) in El M'Ghair, Algeria, to generate an annual revenue of USD 500 million by targeting European Union (EU), Russian, and Gulf country markets.

Brazil

IBGE Forecasts Production Growth for Multiple Crops, Including Tomatoes, in Goiás for the 2024 Harvest

According to the Systematic Survey of Agricultural Production (LSPA), the Brazilian Institute of Geography and Statistics (IBGE) predicts production growth for at least six crops in Goiás for the 2024 harvest. The projected increase in average yield for sorghum and tomatoes is 5.8% and 27.1% respectively, with rice, second harvest beans, sunflower, and cassava also expected to see growth. This growth is attributed to the Goiás government's incentive policies, promotion of modern technologies, technical assistance, and credit access for rural producers.

Morocco

Increased Tomato Prices in Morocco Due to Supply Shortage

Tomato prices in urban areas of Morocco, such as Casablanca, surged to USD 0.43 per kilogram (TRY 14/kg). This increase has widened the price range, with minimum and maximum prices rising by USD 0.025 and 0.087/kg (TRY 0.80 and 2.80/kg) respectively. Factors like adverse weather conditions, supply and demand fluctuations, production and transportation costs, import and export policies, and limited market availability influence the surge. In contrast, prices for other fruits like bananas, apples, and oranges have remained stable.

South Africa

Erratic Weather Causes Tomato Price Surge in South Africa

South Africa's tomato industry is struggling due to unpredictable weather, which has disrupted product demand and increased tomato prices. Flooding and drought have impacted the agriculture sector, making it challenging for farmers to prioritize tomato production. Concerns also exist about disease resistance in plants. In W20, tomato prices surged by 9%, with the average price reaching USD 1.03/kg (ZAR 18.93/kg). This increase is due to challenging production conditions, a production gap, and pests and insects developing pesticide resistance. Consequently, production levels have decreased by 5%, representing a 19% drop compared to two years ago.

Turkey

Turkey Dominates Ukrainian Tomato Market as Prices Surge

Turkey maintains its dominance in the Ukrainian red tomato market, with a new turnover expected between Apr-24 and May-24. Prices are predicted to be higher than pre-war periods, reaching USD 1.76 to 2.01/kg (UAH 70 to 80/kg). Some greenhouse plants have switched to growing cherry tomatoes or pink varieties and do not plan to return to red tomatoes, as they find less competition and higher prices in these segments.

Vietnam

Tomato Prices Surge Due to Hot Weather and Drought inHồ Chí MinhCity

The price of tomatoes inHồ Chí MinhCity surged to USD 1.77 to 1.96/kg (VND 45,000 to 50,000/kg), two to three times higher than prices a few weeks ago. The hot weather and prolonged drought led to a shortage of tomatoes, causing many farmers to sell only a few fruits to meet demand. Supermarkets can only supply 50% of their orders, and early harvesting may lead to further shortages in the future. Companies producing tomato-based products are also impacted, although those with stored materials are less affected.

2. Weekly Pricing

Weekly Tomato Pricing Important Exporters (USD/kg)

Yearly Change in Tomato Pricing Important Exporters (W20 2023 to W20 2024)

Mexico

Tomato prices in Mexico rose by 2.22% week-over-week (WoW) to USD 2.67/kg compared to USD 0.61/kg in W19 and by a significant 169.38% YoY increase from USD 0.99/kg. This surge can be attributed to a severe drought in Mexico's growing regions, which has limited land for cultivation and decreased supply. The high demand for tomatoes has surpassed this reduced supply, leading to higher prices. Additionally, the reliance of many growing areas on rainwater has exacerbated the situation, highlighting the need for sufficient rainfall to stabilize prices.

Morocco

In W20, Moroccan tomato prices surged to USD 0.71/kg, marking a significant 50.42% WoW increase from USD 0.47/kg in W19, with an even more pronounced surge of 145.71% month-on-month (MoM). This price increase can be attributed to several factors, including adverse weather conditions affecting production and transport costs, supply and demand dynamics leading to limited availability and increased prices, and import and export policies impacting market supply. The combination of these factors has contributed to the notable increase in tomato prices in W20.

Spain

In Spain, tomato prices increased by 13.12% WoW to USD 0.33/kg. However, prices decreased by 16.91% MoM compared to USD 0.29/kg in Apr-24, and decreased by 39.53% YoY. This price decrease is due to the persistent drought, which has significantly reduced tomato production, leading to concerns about future water availability and the need to import tomatoes with potentially lower quality standards.

Turkey

Tomato prices in Turkey fell sharply by 29.69% WoW in W20 to USD 0.69/kg from the previous week's USD 0.98/kg. This drop was driven by improved weather conditions, boosting supply. Government measures to stabilize the economy and curb inflation also played a role in reducing tomato prices.

France

French tomato prices dropped by 8.33% WoW to USD 1.65/kg despite adverse weather conditions affecting domestic production and increased imports earlier in the season. This decrease occurred despite protests from French tomato growers against high volumes of Moroccan tomato imports, which they believe negatively impacts their market. The impact of these protests on prices remains uncertain, pending any policy changes.

3. Actionable Recommendations

Strategies for Successful Cherry Tomato Exports to the EU

To ensure successful entry into the competitive European cherry tomato market, Algerian stakeholders should implement stringent quality control measures to meet EU standards. Investing in advanced agricultural technologies and practices can increase yield and product quality. Establishing partnerships with European distributors and participating in trade fairs will help create a robust market presence. Additionally, exploring niche markets and leveraging the unique attributes of Algerian cherry tomatoes can differentiate them from competitors.

Addressing Supply Shortages and Price Fluctuations in the Tomato Market

To mitigate the impact of supply shortages and price fluctuations, Moroccan stakeholders should invest in improved storage and transportation infrastructure to reduce post-harvest losses. Developing resilient supply chains that can adapt to adverse weather conditions and fluctuating demand is essential. Implementing policies to support local tomato producers and stabilize prices will benefit both farmers and consumers. Promoting the cultivation of high-yield and climate-resilient tomato varieties can also enhance production stability.

Strengthening Market Position in Ukrainian Tomato Market

To maintain dominance in the Ukrainian tomato market, Turkish producers should focus on diversifying their tomato varieties to include cherry and pink tomatoes, which face less competition and fetch higher prices. Enhancing the quality and consistency of tomato exports through advanced cultivation and post-harvest practices is crucial. Building strong relationships with Ukrainian distributors and leveraging market intelligence will help optimize pricing strategies.

Addressing Tomato Shortages and Price Surges inHồ Chí MinhCity

Vietnamese farmers should invest in water-efficient irrigation systems and drought-resistant tomato varieties to combat the effects of hot weather and drought. Encouraging greenhouses and other protective cultivation methods can stabilize production and reduce vulnerability to adverse weather. Strengthening supply chains and improving logistics will help supermarkets meet demand and prevent future shortages.