W48: Weekly Tomato Update

Global

Decline in Global Industrial Tomato Harvest Is Expected in 2022

Tomato crops were damaged by the extreme drought in 2022. On a global scale, the 2022 industrial tomato harvest is expected to drop by 4.9% YoY to 37.2MMT. Italy, the top producer in the Union, may see a 10% harvest decline at 5.48MMT, followed by a 10% harvest decline in Spain at 2.1MMT, and a 17% harvest decline in Portugal at 1.3MMT. According to the European Commission's short-term forecast, the crop of tomatoes destined for the EU's fresh market may decline by 3% YoY to 6.2MMT. This indicates a 5% decline from the average for the previous five years. The first eight months of 2022 saw 459,700MT of tomatoes from the Netherlands and 393,100MT from Spain arrive in the EU internal market. While its exports are declining, the EU is seeing an increase in the imports of fresh tomatoes.

 In the first eight months of 2022, imports from Morocco grew by 17% to 331,000MT compared to the same period in 2021. The EU's fresh tomato exports to third countries fell by 2% to 254,300MT at the same period, with shipments to the United Kingdom falling by 6% to 180,700MT. Additionally, in Hungary, 2021 saw the harvest of 171,700MT of tomatoes, and in 2022, industrial production is expected to decline by 30% to just 80,000MT. The production of tomatoes intended for fresh consumption this summer was hampered by the heat, drought, and pests, as well as the increase in energy and input prices.

Italy

In Sardinia, the Production of Industrial Tomatoes Collapses by 40%

In 2022, the production of industrial tomatoes in Sardinia is expected to decline by 40%. This is mainly due to its high production costs and the competition from international markets, which make its production uneconomical. Already at historic lows in 2021, with around 330 hectares cultivated for a production of around 40,000MT of tomatoes, the production in 2022 is estimated to be even lower. Italy, the world's third-largest tomato producer behind the United States and China, with 14.8% of global production and 56.5% of European production, is the top exporter of tomato-based goods. This year, 65,180 hectares of land in Italy were cultivated, producing 5.5 MMT of tomatoes, with 52.5% of that land being in the Northern Basin and 47.5% in the Center-South.

Brazil

Brazilian Tomato Prices Reach Record Highs in All Wholesale by the End of W48

Brazilian wholesalers noted a dramatic decline in the availability of tomatoes throughout W48. Two main factors, including the completion of harvests in the important winter producing areas of Araguari (MG) and Sumaré (SP), as well as the slower rate of fruit maturity due to the cloudy weather in most of the producing regions, can be used to explain the more limited availability. Additionally, compared to W47, this week's offer increased because the tomatoes were harvested faster and there were fewer tomatoes remaining for this week. Because there were fewer products available in the markets, prices increased at the end of the week in all Centrals, at Ceagesp (SP) for 34.72% WoW, and in Campinas 19.29% Higher WoW.

Russia

Russia to Resume Deliveries of Fruits and Vegetables From 20 Moldovan Enterprises

On August 15, temporary restrictions on the import of regulated products from Moldova were implemented. Rosselkhoznadzor began allowing the supply of fruits and vegetables from 20 Moldovan businesses to Russia on December 2. As part of the phased lifting of temporary restrictions on the supply of regulated products from the republic, the decision was made following an audit. According to the Ministry of Agriculture, the amount of tomatoes imported for the first nine months of 2022 from Moldova was 283,200MT, down 38.5% from 460,300MT in 2021. At the same time, the amount of tomatoes and cucumbers exported for the same period also decreased, from 31,900MT in 2021 to 11,800MT in 2022.

The Production of Greenhouse Vegetables in the Nizhny Novgorod Region of Russia Has Doubled

More greenhouse vegetables were grown in the Nizhny Novgorod region during the first eleven months of 2022 than during the same time last year. The data indicates that over the given time, 20,400MT of greenhouse vegetables were produced in the area. 15,700MT of cucumbers, 3,400MT of tomatoes, and 1,300MT of salad greens were specifically farmed. State assistance in the form of reimbursement of 15% of the cost of procuring energy resources is in place to help greenhouse businesses. At the same time, businesses adopting "light culture" technology are given an extra subsidy for every tonne of goods produced.   

Uzbekistan

Tomato Prices in Uzbekistan Have Stabilized in W48

In early November, tomato prices were at their highest level, and wholesale prices were 61% higher than Tajikistan and 1.5 times higher than in Georgia and Moldova. Although traders expected further price growth, there has been a slowdown in growth or even price stabilisation. From November 4 to November 25, 2022, the average wholesale price for tomatoes increased by only 5% and stabilised in W48, from USD 1.71/kg to USD 1.78/kg, while the average wholesale price for round red tomatoes even decreased by 7%, from USD 1.26/kg to USD 1.16/kg. The current average wholesale. The current average wholesale price for rose tomatoes is 11% higher YoY. 

France

In France, Tomato Is in High Supply but Low Demand

The tomato market in France is quite uneven in W48. The northern European origins tomato campaign is ending and southern products are hitting the French market. At the moment, French, Belgian, and Dutch tomatoes are available on the domestic market. The plantings in northern Europe in 2022 have slowed down because of the rising energy costs. In anticipation of the increased demand for tomatoes this winter, southern Europe has already increased its tomato plantings. Although sales are currently very calm, it is unclear whether consumption will rise. This uncertainty is leading to a decline in prices. This situation is likely to last for up to three weeks. However, the French anticipate that the tomato market will be back in balance by January.

Bulgaria

Bulgarian Prices of Greenhouse Tomatoes and Cucumbers Price Levelled off at Wholesale in W48

The average market price of greenhouse tomatoes and cucumbers was relatively similar in Bulgaria. According to the State Agency for Commodity Exchanges and Markets, tomatoes and cucumber wholesale price stood at USD 1.74/kg and USD 1.73/kg, respectively, at the end of W48. This is an 11.5% increase from USD1.54 per kg in the first week of November around W44. Higher production results in an increase in heating expenditures as winter draws closer which increase the price.

Azerbaijan

Export of Azerbaijani Tomatoes Decreased by 6% YoY In First 9 Months of 2022

In January to September 2022, Azerbaijan exported 112,354MT of tomatoes, 5.7% less YoY than during the same time in 2021. Russia was the top importer of Azerbaijani tomatoes during the reporting period, importing 109,573MT, or 97.5% of all exports. When compared to the period from January to September 2021, the value of tomatoes imported to Russia in 2022 increased by 3% while the quantity declined by 4.3%.