1. Weekly News

India

Indian Tomato Prices Surge Amidst Supply Disruptions; Hybrid Varieties Offer Potential Relief

As tomato prices in India soared to USD 0.96/ per kilogram (kg) in Jul-24, hybrid varieties developed by the Indian Institute of Horticultural Research (IIHR) in Bengaluru offer a potential solution. The two varieties, Arka Rakshak, and Arka Abedh, have an extended shelf life of up to three weeks, compared to the usual 7 to 10 days for conventional tomatoes. This extended shelf life could help stabilize supply chains affected by erratic weather, including the heavy rainfall that has disrupted tomato-growing regions this season. Indian Council of Agricultural Research (ICAR) Director General Himanshu Pathak emphasized the need for broader adoption and increased cultivation area of these hybrids to address future supply challenges.

Russia

Pest Infestations Affect Tomato Crops in Russia

In Russia's Rostov Region, the tomato crop faces significant losses due to an invasion of the tomato moth. The pest has severely damaged tomatoes on agricultural lands, with reports indicating that the moth's presence has led to fruit spoilage and breakage of stems, causing tomatoes to fall and rot. A quarantine was introduced in three districts of the Krasnodar Territory due to the American white butterfly, which also threatens crops. As a result, tomato availability in the market has decreased, and prices remain high at USD 1.14 to 1.70/kg in Jul-24 compared to USD 0.47/kg in July-23.

South Korea

Calls for Accountability Rise Over Tomato Hornworm Infestation in South Korea

There are increasing calls for accountability and effective countermeasures regarding the spread of the tomato hornworm in South Korea, which has affected a wide area due to government inaction. A June survey revealed that the invasive pest has been found in nine provinces, five metropolitan cities, and 67 cities and counties. The tomato hornworm, which damages tomatoes, eggplants, peppers, and other nightshade crops by consuming their leaves, stems, and flowers, has caused significant losses across both organic and conventional farms. Critics argue that the government's delay in addressing the issue, despite early detection in Mar-24, aggravates the problem. Although the government plans to allocate USD 14 million (KRW 19.6 billion) in 2025 for control measures, there is skepticism about whether these late-stage efforts will be effective. There is a demand for prompt and practical solutions, including compensation and more effective control strategies, to address the widespread damage caused by the pest.

Ukraine

Ukrainian Tomato Prices Drop Significantly in Mid-July 2024

As of mid-Jul-24, vegetable prices in Ukraine have dropped significantly. Tomato prices have decreased, with red tomatoes sold at USD 0.61 to 1.45/kg, pink tomatoes at USD 1.33/kg, down 9% YoY, and yellow tomatoes at USD 1.41/kg, down 8% YoY. The market now features a wide range of both soil and greenhouse vegetables. With more ground vegetables expected in the next two weeks, prices may continue to fall, making it an opportune time to buy and stock up for the winter.

2. Weekly Pricing

Weekly Tomato Pricing Important Exporters (USD/kg)

Yearly Change in Tomato Pricing Important Exporters (W29 2023 to W29 2024)

Mexico

Mexico's tomato prices decreased from USD 2.62/kg in W29, marking a 7.63% drop from USD 2.62/kg in W28 and an increase of 63.51% month-on-month (MoM) from USD 1.48/kg in W26. In early 2024, tomato prices in Mexico experienced significant growth due to a water crisis and adverse weather conditions. By mid-year, the cost of tomatoes surged drastically, with prices in Sonora rising 400% to USD 2.71/kg (MXN 50/kg) and Sinaloa doubling to USD 1.63/kg (MXN 30/kg). Driven by reduced vegetable production and the broader impact of climate change, this inflation has exceeded the Bank of Mexico's inflation target of 3%, reaching an annual increase of 4.78%. The higher tomato prices reflect broader economic pressures affecting consumer purchasing power and financial stability.

Morocco

Tomato prices in Morocco remained unchanged for the second consecutive week at USD 0.25/kg in W29 but decreased 10.71% MoM from USD 0.28/kg in W26. Furthermore, the Tuta Absoluta pest outbreak in Morocco has affected up to 35% of tomato crops and poses a significant threat to local tomato production. This pest has shown resistance to essential pesticides, and there is reluctance among growers to use biological control methods due to concerns about spreading viruses. While the current impact on the local market is minimal, mainly affecting cherry and elongated tomatoes rather than the widely consumed round tomatoes, the situation could influence planting decisions for the upcoming season. If growers opt to delay planting or reduce cultivation, this could lead to decreased supply and potential price increases for tomatoes in the Moroccan market.

Spain

Spain's tomato prices stood at USD 0.67/kg in W29, marking a significant 24.07% week-on-week (WoW) increase from USD 0.54/kg in W28 and a 48.89% YoY rise. Tomato production in Almería, Spain, has decreased by 36.88% over the last ten years, from 1.09 million kg in the 2013/14 campaign to 688.47 million kg in 2022/23. Despite this decline in production, the value of tomatoes increased by 16.11%, rising from USD 656.96 million (EUR 604.83 million) to USD 762.76 million (EUR 702.24 million). Tomato exports from Almería also fell by 33.22%, yet the value increase suggests a shift towards higher-value crops or improved production efficiency. This dynamic has likely influenced tomato prices in Spain, reflecting a balance between reduced supply and higher product valuation.

Turkey

Turkey's tomato prices remained unchanged at USD 0.83/kg in W29 but experienced a 17.82% MoM decrease from USD 1.01/kg in W26. The monthly decline in tomato prices aligns with the harvest of new, higher-quality products, expected in summer when vegetable prices typically drop due to greater availability. Earlier in 2024, local tomato prices had surged due to a shortage caused by adverse weather conditions in Adana. However, the current influx of produce has significantly reduced prices, indicating improved supply conditions and alleviating the previous scarcity-induced price pressures. Furthermore, Manier Seeds, a production company authorized by the Turkish Agricultural Ministry, developed tomato varieties resistant to the Tomato Brown Rugose Fruit Virus (ToBRFV), which could significantly influence tomato prices in Turkey. These resilient varieties, successfully tested in Turkey and showcased in Spain, may help stabilize production amidst global challenges posed by the virus. If widely adopted, these varieties could lead to more consistent yields, potentially preventing price spikes caused by crop losses.

France

Tomato prices in France stood at USD 1.47/kg in W29, marking an 8.89% WoW and a 13.95% YoY increase from USD 1.29/kg in W29 2023. Moreover, French farmers have protested against the influx of Moroccan tomatoes, citing them as a symbol of unfair competition. Moroccan tomatoes are available year-round at competitive prices due to favorable growing conditions in Morocco's southern provinces. This situation, combined with a denigration campaign against Moroccan produce in France, could increase scrutiny and protective measures, which may impact tomato prices by reducing competition or influencing consumer perceptions. The overall effect on prices will depend on the scale of such actions and their impact on the availability and acceptance of Moroccan tomatoes in the French market.

3. Actionable Recommendations

Promote Hybrid Tomato Varieties for Stability

The Indian Institute of Horticultural Research (IIHR) and the Indian Council of Agricultural Research (ICAR) should encourage the widespread adoption of hybrid tomato varieties such as Arka Rakshak and Arka Abedh to enhance shelf life and stabilize supply chains, including providing incentives and training for farmers to cultivate these hybrids effectively, ensuring that tomato production remains resilient amid erratic weather conditions.

Address Pest Infestation in Tomato Crops

Russian agricultural authorities should collaborate with local farmers and pest control experts to implement targeted measures against the tomato moth infestation in the Rostov and Krasnodar Territories. Effective pest management practices should be introduced, and necessary resources should be distributed to mitigate the damage, aiming to stabilize tomato availability and prices in the affected regions.

Combat Tomato Hornworm Outbreak

The South Korean government and agriculture department should expedite the implementation of control measures and allocate funds for managing the tomato hornworm outbreak. Immediate support and compensation should be provided to affected farmers, alongside enhanced pest control strategies, to address the widespread damage and prevent further crop losses.

Monitor and Adjust Tomato Import Policies

The French government, import regulators, and local tomato producers should review and adjust import policies to address concerns about unfair competition from Moroccan tomatoes. This includes implementing measures to protect local producers while ensuring market transparency to balance competition and maintain stable tomato prices in France.

Sources: Theprint, Fresh Point Magazine, Agravery, Agrotimes, Agrinet, Noro, Morocco World News, Fresh Plaza