1. Weekly News

Algeria

Algeria's Tomato Export Ambitions Face Major Challenges

Algeria's ambition to become a significant tomato exporter faces substantial challenges as Morocco dominates the current global tomato market alongside the Netherlands and Spain, accounting for a significant share of global exports. In 2023, Moroccan tomato exports totaled about 660 thousand metric tons (mt), earning nearly USD 1.08 billion (EUR 1 billion), primarily from exports to the European Union (EU). Despite drought and water stress, Morocco's success is underpinned by substantial agricultural infrastructure and experience. In contrast, Algeria's tomato production sector is nascent, with limited player groups operating on relatively small scales. While promising, these initiatives underscore the considerable hurdles Algeria must overcome to compete internationally. Key challenges include enhancing domestic production capacity, improving agricultural technology and infrastructure, and managing water resources effectively.

Chile

Chile Faces Threat of Intense Frosts

The recent weather patterns in Chile, including strong frontal systems and upcoming polar air masses, are expected to bring intense frosts to the central zone from Santiago to Ñuble. During La Niña events, frosts tend to be more severe and prolonged, potentially causing significant damage to fruit trees in bloom. This situation has already affected tomato greenhouses in Maule, leading to water accumulation and fungal issues, which may exacerbate with the upcoming frosts. Moreover, these weather conditions could impact vegetable, fruit, and greens prices in the coming weeks as farmers assess their losses and adjust supply to meet demand.

Morocco

Morocco's Tomato Export Success Amid Climate Challenges

Morocco's tomato industry has shown impressive growth and resilience in recent years, highlighted by its significant export achievements. In 2023, Morocco and Spain each exported 658,700 mt of tomatoes, marking a notable advancement for Morocco compared to being significantly behind Spain in 2013. This progress underscores Morocco's ability to adapt to climate challenges and strengthen its agricultural sector. In 2022, Morocco surpassed Spain by 21.34%, and although they tied in 2023, Morocco's advantage reflects its robust export performance amidst rising domestic prices. Moroccan tomato exports accounted for over a fifth of global sales, totaling 8.63% of total global tomato exports. As for income, Morocco ranked fourth globally, earning USD 1.138 billion out of USD 11.45 billion from global tomato exports. Additionally, Morocco ranked sixth among the world's top tomato exporters with an average price of USD 1.73 per kilogram (kg), highlighting its ability to maintain competitiveness and profitability in international markets despite challenging climatic conditions.

Spain

Spanish Fresh Fruit and Vegetable Exports Surged in Apr-24, Led by Lettuce, Tomatoes, and Cabbages

According to data from the Customs Department, Spanish fresh fruit and vegetable exports grew in Apr-24. The total exports reached 1.1 million metric tons (mmt), marking a 14% increase year-on-year (YoY) in volume, and generated USD 1.92 billion in revenue, up by 10% YoY. Specifically, vegetable exports totaled 573,707 mt, an 8% increase YoY, valued at USD 879.48 million, representing a 2% YoY increase in value. Among the most exported products were lettuce, tomatoes, and cabbages. Tomatoes showed a significant volume increase of 19% YoY, reaching 81,392 mt, although their value decreased by 17% YoY to USD 128.48 million.

2. Weekly Pricing

Weekly Tomato Pricing Important Exporters (USD/kg)

Yearly Change in Tomato Pricing Important Exporters (W26 2023 to W26 2024)

Mexico

Tomato prices in Mexico surged by 17.46% week-on-week (WoW) to USD 1.48/kg in W26, up from USD 1.26/kg. Despite this increase, the month-on-month (MoM) price dropped by 12.94%, while the YoY price saw a significant rise of 28.70%. According to the National Alliance of Small Merchants (ANPEC), the recent price hike is due to the scarcity of tomatoes in the crops. This scarcity stems from a combination of supply and demand dynamics and challenges producers face, such as drought conditions that hinder their ability to invest in planting. Additionally, sellers have expressed concerns about the lack of support from relevant authorities to address these issues.

Morocco

Moroccan tomato prices declined by 15.15% WoW and 34.88% MoM to USD 0.28/kg in W26, primarily due to lower demand and high supply. The Moroccan tomato season has concluded for most varieties, except for late varieties exported in summer. This season faced challenges, including an early heatwave that delayed the season by a month and an average price drop of 30%. There has been increased scrutiny against Moroccan tomatoes in France and Spain due to heightened hostility.

Spain

In Spain, tomato prices surged 9.30% WoW to USD 0.47/kg in W26, continuing a trend of constant increases since W23. The persistent drought in much of Spain is causing problems in the water supply for domestic and recreational use and critical sectors such as agriculture and livestock. The lack of rainfall has directly impacted these activities, especially in pasture availability. This year, the Las Nieves Cooperative Society in Seville has only planted 50% of the tomatoes it usually plants due to the drought. Instead, they planted zucchini and cucumbers, vegetables that need less water. Producers now have enough water reserves for three months but are concerned that it may not rain before these reserves are exhausted.

Turkey

Tomato prices in Turkey stood at USD 1.01/kg, remaining almost unchanged for the past three weeks. However, YoY prices significantly increased by 62.90%. Contrastingly, there was an increase in tomato production in May-24 and a corresponding price drop. Despite this, opportunists were raising prices, and those who previously cited the rising dollar as a reason for increasing prices remained silent when tomato prices fell.

France

In France, tomato prices surged 3.60% WoW to USD 1.44/kg in W26, continuing a trend of constant increases since W23. The conclusion of the production cycle has led to insufficient supply compared to demand, with crops being uprooted in preparation for the next season. According to a producer and exporter, this supply shortage is the primary factor driving the price increase in the tomato market.

3. Actionable Recommendations

Enhancing Export Efficiency and Market Diversification

Spain should focus on optimizing export logistics and addressing the challenges of value fluctuations in key products like tomatoes. Strengthening partnerships within the EU and exploring new markets can reduce dependency on a few export destinations. Countries with growing agricultural export sectors, such as Portugal and Italy, can benefit from similar market diversification strategies.

Mitigating Frost Damage and Enhancing Crop Resilience

Chile should implement protective measures for fruit trees and vegetable crops against severe frosts. Utilizing frost-resistant crop varieties and improving greenhouse infrastructure can mitigate damage. Additionally, enhancing water drainage systems in regions like Maule can prevent fungal issues and water accumulation in tomato greenhouses. Farmers in similar climatic zones, such as Argentina and Peru, can benefit from these strategies.

Balancing Supply and Demand in the Tomato Market

France should focus on better-aligning supply with demand by improving crop cycle management and enhancing storage capabilities. Investing in greenhouse technologies and extending the growing season can ensure a more consistent supply. Countries with similar seasonal production challenges, like Belgium and the UK, can benefit from adopting these measures. These recommendations aim to address specific challenges in the tomato market and leverage opportunities for sustainable growth and resilience in agricultural production across different countries.

Sources: Fructidor, Alakhbar, MXfruit, Agrimaroc