W47: Weekly Tomato Update

Published Dec 2, 2022

Global

The increased energy costs, which have hit many greenhouse growers hard, are also felt in the tomato market. In European countries such as the Netherlands, these higher cultivation costs eat away at growers' profit margins, despite the high market prices. However, this situation is seen as an advantage for some countries with a milder climate, which requires less energy to grow, such as Turkey. In Italy, this increased competition has an impact on prices in the domestic markets. In Spain and South Africa, adverse weather conditions have depressed production in some areas. Spain was hit by high summer temperatures and South Africa is currently experiencing heavy rainfall and even hail in some northwestern growing areas. There are also problems in China and Brazil, but they have little to do with the weather. Epidemic control measures in China and political unrest in Brazil have made it difficult to get tomatoes to the right place. With many parts of the world entering winter, it remains to be seen how the market will develop further.

Tridge Analysis

Low Expected Tomato Production in the EU Projects Increase in Imports (Nov 25)

The EU tomato production is expected to decline by 3% YoY to 6.2M mt in 2022, driven by soaring input costs, prolonged periods of dry weather, and a lack of water for irrigation. Tomato producers in the EU are reducing the cultivated area and increasing the production of substitute crops with less financial risk. Exorbitant gas and electricity costs have forced greenhouse production to stop growing tomatoes this winter. As a result, EU countries will need to rely more on imported tomatoes from non-European origins as more Moroccan and Turkish tomatoes are expected in the market. (Continue Reading)

Netherlands

Tomato Price Recovers Slightly (Nov 23)

The average price of tomatoes has been below the five-year average in recent weeks. The price for 2022 has now found its five-year average again. The volumes supplied fell sharply. For vine tomatoes, the supplied volume is just above that of last year. The volume is lower for loose tomatoes. Last week the price for loose tomatoes rose. The price for tomatoes usually rises steadily towards Christmas.

United States

Tomato Demand Slows Down in the Short Term (Nov 22)

By November, retailers had filled their stores with tomatoes. However, demand is decreasing for American Thanksgiving Day, celebrated on the 24th. This is a trend that should continue in the next two or three weeks. Weather conditions in Florida and California had a negative effect on the number of tomatoes available. Tomatoes on the Vine, mixed cherry, are abundant in the market. The affected specialties were Roma, Beefsteak, Grape, and Cherry. Greenhouse crops are nearing the end of the season in some regions, but California and Mexico produce year-round. As for Christmas, tomato demands are optimistic.

Spain

Extremadura’s Tomato Production This Season Has Decreased by 30% Over the Previous Year (Nov 22)

The Association of Agricultural Cooperatives of Extremadura (Acopaex) confirmed that the region's tomato production has decreased by 30% this season. Domingo Fernandez, the president of Acopaex, said the initial forecasts of production would decrease by 20% as a result of the drought but that the intense summer heat had aggravated the decrease in production. As a result of these circumstances, the quantity contracted with the companies had to be reduced in relation to previous years, when there was also no stock from other years, he added. In 2021, the region produced 2.1M tons of tomatoes. This year's drop in production has led to a decrease in sales, but prices have behaved optimally and have been higher than last year. However, production costs, of gas, electricity, and fuel, have skyrocketed. Thus, the producers' profitability and profits are scarcer this year.

Poland

Rising Prices for Tomatoes in Week 47, 2022 (Nov 25)

The price increase occurred in the segments of greenhouse tomatoes and carrots, but it was limited to only a few markets. The situation on the greenhouse tomato market was calmer, and prices for these products continued to grow only in Poland and Moldova, reaching USD 1.64/kg and USD 1.24/kg, respectively.

Egypt

The Stability of Vegetable Prices in the Transit Market (Nov 27)

Vegetable prices stabilised in the wholesale transit market on November 27, 2022, in addition to the announced price of 5-7lbs per kg in the retail markets. Therefore, the price of tomatoes ranged between 3-4lbs per kg.

Prices of Vegetables and Fruits in the Obour Market (Nov 27)

The prices of tomatoes increased during trading Sunday November 27, 2022, in the wholesale market in El-Obour, compared to their levels a day before. Tomato prices ranged between 3.5-5lbs, with an increase of one pound.

Russia

In the Orenburg Region, Tomatoes With ToBRFV Were Detained (Nov 22)

On November 11, 2022, the Office of the Rosselkhoznadzor for the Orenburg Region at the Sagarchin phytosanitary control post prevented an attempt to import contaminated quarantine products of high phytosanitary risk from Kazakhstan into Russia. During the quarantine phytosanitary control, in two batches of fresh tomatoes (31 tons) originating from Kazakhstan, a quarantine pest was detected that is absent in the territory of the Eurasian Economic Union, Tomato brown rugose fruit virus (ToBRFV). The presence of a quarantine object in a viable state was confirmed by a laboratory examination conducted by specialists from the Orenburg Reference Center of Rosselkhoznadzor. In accordance with the requirements of the quarantine legislation of the Russian Federation, the import of two batches of tomatoes was prohibited. The perpetrators were brought to administrative responsibility in accordance with Article 10.2 of the Code of Administrative Offences of the Russian Federation.

According to Rosselkhozbank, Consumption of Greenhouse Vegetables in Russia Will Not Grow Until 2025 (Nov 23)

According to the forecasts of the Russian Agricultural Bank, there will be no growth in the consumption of greenhouse vegetables until 2025. It began to decrease during the coronavirus pandemic. Another reason for the decline in consumer demand is the decrease in supplies from abroad due to the imposition of sanctions and rising prices. By 2025, about 700 hectares of greenhouses can be launched in Russia. However, according to the Russian Ministry of Agriculture, tomato imports are still at a high level. In 2021, 460K tons of tomatoes were brought to the country. Earlier, FruitNews reported that since the beginning of 2022, according to the Russian Ministry of Agriculture, the production of greenhouse vegetables in the country has reached 1.2M tons. Most of this volume falls on cucumbers, at 701.3K tons, and tomatoes at 479.9K tons.

Vegetable Production in Russia (Nov 24)

According to Oksana Lut, tomato imports are still at a high level, with 460K tons in 2021. This year, Turkish tomatoes actually left the Russian market, the import of which has been subject to a quota since 2017. Its size is 350K tons, but only 300K tons have been selected.

Mexico

Stable Prices of Mexican Roma Tomatoes in W46 in the McAllen Market (Nov 21)

The harvesting season for Roma tomatoes is from June to December for the Mexican states of Michoacan and Jalisco, recording a significant reduction in volume sent to the McAllen market. States like Baja California and Sinaloa will start their season early from December 2022-May 2023, with some volume entering the USA market but not enough to affect price tendency. For W46, the price for Mexican Roma tomatoes in the McAllen market remained stable despite the volume changes at:

Jumbo: USD 26/25 lbs

XLarge: USD 24/25 lbs

Large: USD 22/25 lbs

Medium: USD 21/25 lbs.

Brazil

Tomato Prices Continue to Rise for the Second Consecutive Month (Nov 24)

Tomato prices rose for the second consecutive month. According to data released by the Centre for Studies in Applied Economics (Cepea) of the Federal University of São Paulo (USP), from the 1st to the 22nd of November, the average sale was R$ 66.69 per box, 16.6% higher than the value observed in October and 87% above production cost estimates. In November, the offer was lower than in October. The second part of the winter crop, which gained strength last month, had more intense maturation in that period. In addition, in October there was still an offer referring to the first part of the winter crop, in a significant volume. Still, according to the data from the study center, not even the stoppages at the beginning of the month were enough to accumulate merchandise, explains the HF Brasil website. The milder temperatures helped to control the rate of fruit maturation. Even with the frequent rains, some cities like Paty dos Alfares, in Rio de Janeiro, face problems related to the quality of tomatoes, due to damage caused by stains and also some localized cases of bacteria.

Peru

Food Stocks in the Wholesale Market of Lima and la Victoria Fruit Market Are at 81% (Nov 25)

In the Great Wholesale Market of Lima (GMML) and the La Victoria Fruit Market No. 2, the stocks of the main staple foods have improved and are at 81%, which has made it possible to meet the demand of the merchants and customers who go to these supply centers. Products such as garlic, sweet potato, onion, potato, and tomato have a 100% stock.