W40: Tomato Update

In W40 in the tomato landscape, according to data from the State Customs Committee, Azerbaijan exported 112.06 thousand tons of tomatoes worth USD 124.29 million in the first eight months of 2023. The tomato export value has significantly decreased from Jan-23 to Aug-23, with a decline of USD 10 million compared to last year. The main reason for this decrease is the lower exports to Russia, the primary importer of Azerbaijani tomatoes, due to a local oversupply and lower prices. Tomato prices are also rising in Azerbaijan's domestic market, with prices in Khachmaz ranging from USD 2.94 to 4.12 per 30 kilograms (AZN 5 to 7/30kg). As of July 1, Azerbaijan had 3.2 thousand greenhouses operating, producing 202 thousand tons of tomatoes from Jan-23 to Jun-23. In 2022, 97.3% of Azerbaijan's tomato exports went to the Russian market.

In Ghana's Volta Region, farmers in the Ziope Traditional Area had to reduce their tomato prices by about 80% to attract buyers, since the harvest period coincided with those in Ada, causing difficulties for local producers. Previously, the price of Ghanaian tomatoes stood over USD 170.85 per box (GHS 2,000/box), but the current prices were reduced between USD 8.54 to 17.08/box (GHS 100 to 200/box). The increase in farm input prices has further burdened farmers, who cannot recover their investments. Despite the price reduction, only some middlemen trade with farmers in Ziope, as traders prefer to buy from Ada, closer to the nation's capital, rather than travel to the southeastern border.

Tomato farmers in the Sındırgı district of Balıkesir in Turkey are facing difficulties due to unfavorable weather conditions, leading to reduced tomato yields and lower prices. The tomato price in the first season stood at USD 0.13 to 0.14/kg (TRY 3.5 to 4/kg), dropping to USD 0.072/kg (TRY 2/kg). Meanwhile, tomato production decreased by almost 50%. Moreover, Sındırgı was the first region in Balıkesir to produce over 100 thousand tons of tomatoes in 2022, while the tomato planting area increased by 30% in 2023. However, low tomato prices are raising concerns among farmers, as they cannot cover their production costs due to reduced yields, leading to inadequate sales revenues. Moreover, tomato farmers are facing a delay of one month compared to previous years in their planting schedule, and the harvest has been postponed by an additional month.

Lastly, Egypt generated a record revenue in 2022 from exporting tomato paste and puree globally. Additionally, Egyptian tomato paste exports reached a record high for the first half of 2023. At the same time, the industry's structural issues mean that the nation needs to take advantage of chances to boost export revenue in the fresh tomato segment. Tomato paste and puree exports brought in USD 57 million for Egypt in 2022, an increase of 50% over the previous year.