W50 2024: Tomato Weekly Update

Published 2024년 12월 20일
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In W50 in the tomato landscape, Agriculture Victoria has urged Australian tomato growers to monitor crops closely after detecting tomato potato psyllid (TPP) in a glasshouse on the Bellarine Peninsula. Meanwhile, South Korea will impose strict new export regulations for fresh tomatoes to Japan starting January 1, 2025, requiring pest-free certification and using nets to prevent tomato hornworms. In Spain, the Canary Islands government announced USD 5.7 million in financial aid for traditional winter tomato producers under the Posei program, supporting the sector in 2025. Ukraine experienced a decline in imported tomato prices due to increased supply and reduced demand. In Mexico, tomato prices dropped WoW due to an oversupply and reduced exports, particularly to the US. Morocco saw a significant WoW price drop, driven by a seasonal oversupply that outpaced demand. In contrast, Spain’s tomato prices surged WoW, thanks to favorable weather conditions in Murcia, which led to higher yields and excellent fruit quality. Türkiye’s tomato prices fell WoW, driven by increased local supply, while in France, prices rose WoW due to colder-than-usual weather, reduced domestic production, and delays in importing tomatoes.

1. Weekly News

Australia

Agriculture Victoria Alerted Tomato Growers on TPP Detection

Agriculture Victoria has advised Australian tomato growers to closely monitor their crops after detecting tomato potato psyllid (TPP) in a glasshouse at a tomato production facility on the Bellarine Peninsula. TPP (Bactericera cockerelli) is a minor pest that feeds on various plants, including tomatoes, potatoes, eggplants, chilies, and capsicums. A tomato grower reported the infestation and subsequent surveillance identified TPP in additional locations within a 1.5-kilometer (km) radius of the glasshouse. Victoria's chief plant health officer emphasized that the early detection of TPP allows local producers and gardeners to step up monitoring efforts and safeguard crops from potential biosecurity risks.

Spain

Canary Islands Offered USD 5.7M Aid to Support Winter Tomato Producers

The Canary Islands Government has announced financial aid for traditional winter tomato producers under the Posei program, allocating a budget of USD 5,734,558 for the 2025 campaign. Beneficiaries who have previously received support for young farmers establishing new businesses are entitled to 10% supplementary aid. Applications must be submitted within 45 days following the publication of the call in the Official Gazette of the Canary Islands.

South Korea

South Korea Implements Quarantine Measures to Ensure Quality of Tomato Exports to Japan

According to the Animal and Plant Quarantine Agency (APQA), South Korea will implement stringent new guidelines for exporting fresh tomatoes to Japan starting January 1, 2025, to address concerns over the tomato hornworm. Under the “Quarantine Guidelines for Exporting Korean Fresh Tomato Fruits to Japan,” only tomatoes produced in registered cultivation areas and sorting facilities equipped with nets with openings of 1.6 millimeters (mm) or less will be eligible for export. Moreover, facilities must undergo APQA trap inspections at least two months before harvest to confirm the absence of tomato hornworms. Before shipment to Japan, tomatoes must also pass a final export quarantine, with certification proving they are pest-free. This agreement, finalized through close consultations with Japanese authorities, ensures continued market access for Korean tomatoes while meeting Japan’s stringent risk management standards.

Ukraine

Ukrainian Tomato Prices Dropped Due to Import Surges and Quality Issues

Ukrainian traders are observing a new wave of price declines for imported tomatoes, driven primarily by reduced demand following a short-term price increase last week. Most Ukrainian greenhouse farms have completed their sales season, limiting local tomatoes' availability. However, the continued rise in imported tomato supplies has intensified competition in the market, contributing to the price drop. Greenhouse tomatoes are priced at USD 1.68 to 1.92 per kilogram (kg) in W50, reflecting an 11% week-on-week (WoW) decrease. The decline in demand and concerns over vegetable quality influence this negative price trend. Despite imported tomatoes being 54% more expensive than in the same period last year, wholesale traders anticipate further price reductions to avoid stockpiling unsold products.

2. Weekly Pricing

Weekly Tomato Pricing Important Exporters (USD/kg)

* All pricing is wholesale * Varieties: All tomato pricing is for round tomatoes

Yearly Change in Tomato Pricing Important Exporters (W50 2023 to W50 2024)

* All pricing is wholesale * Varieties: All tomato pricing is for round tomatoes * Blank spaces on the graph signify data unavailability stemming from factors like missing data, supply unavailability, or seasonality

Mexico

Mexico's tomato prices declined significantly by 21.63% WoW to USD 2.21/kg in W50 from USD 2.82/kg in W49. This sharp decrease is primarily due to increased tomato supply, especially from major producing regions like Sinaloa, where the harvest is peaking. The influx of new tomatoes into the market has led to a surplus, exerting downward pressure on prices. Demand fluctuations, driven by seasonal changes in domestic consumption and reduced export opportunities, have also contributed to the price drop. Mexico's exports, particularly to the United States (US), have slowed, partly due to competition from other suppliers, especially from Canada, further reducing upward price momentum. Prices will remain under pressure as the harvest season progresses due to abundant supply and weaker demand.

Morocco

In W50, Morocco's tomato prices saw a sharp decline of 54.17% WoW and 72.50% month-on-month (MoM), dropping to USD 0.11/kg. This price reduction was primarily driven by Morocco's peak tomato production in the fall and early winter, leading to a seasonal oversupply that outpaced demand, pushing prices down. Increased harvest yields in key regions such as Souss-Massa amplified the market surplus, exacerbating the price drop. Moreover, seasonal factors such as reduced consumer demand during cooler months, when tomato consumption typically falls, contributed to the trend. A decrease in export activity and logistical improvements, including lower transportation costs, also significantly lowered market prices.

Spain

Spain's tomato prices surged 27.42% WoW, reaching USD 0.79/kg in W50 from USD 0.62/kg in W49, driven by improved production conditions in Murcia, where favorable weather led to higher yields and excellent fruit quality. While these conditions typically lead to lower prices due to increased supply, the price surge was due to strong demand for high-quality tomatoes and the production timing. The Murcia region, operating at 80 to 85% capacity, provided superior-quality produce, which commanded higher prices in the market. However, the overall year-on-year (YoY) decline of 43.97% and MoM decrease of 18.56% reflects a seasonal trend, with higher production levels from earlier in the season in regions like Morocco leading to increased competition and pressure on prices. Spain's tomato prices are still lower than last year, as the market was impacted by oversupply from other key producers, making it difficult to sustain higher prices in the longer term. Despite this, Spain's favorable weather conditions and high-quality production have allowed for a short-term price increase.

Türkiye

Türkiye's tomato prices fell to USD 1.26/kg, reflecting a 5.26% WoW and 27.17% MoM decline. The ongoing harvest in the Ahlat district is in full swing, with local tomatoes steadily making their way to the market. Driven by the hard work of local producers, the increased supply has led to a price drop. Moreover, demand for locally grown tomatoes has surged. However, a YoY comparison shows a significant 22.33% price increase from USD 1.03/kg in W50 of 2023. This sharp rise is due to higher operational costs, particularly diesel and transportation, which have outpaced the growth in tomato prices. These rising costs have put financial pressure on producers, leading to protests in key agricultural regions.

France

In W50, France's tomato prices surged to USD 1.92/kg, reflecting a 35.21% WoW and a 1.06% MoM increase. Several factors contributed to this price increase. Firstly, colder-than-usual weather in key French tomato-producing regions, such as the South of France and the Provence-Alpes-Côte d'Azur area, has reduced local production, disrupted local supply by slowing growth, and reduced yields. Moreover, there are delays in importing tomatoes from major suppliers like Spain, Morocco, and the Netherlands, primarily due to logistical challenges, transportation delays, and rising operational costs, including fuel. Furthermore, the reduced availability of these imported tomatoes heightened reliance on the domestic supply, putting further pressure on prices. The combination of these supply constraints, seasonal demand, and higher production costs led to a sharp price increase during this period.

3. Actionable Recommendations

Leverage Seasonal Trends to Optimize Pricing and Supply Chain Efficiency

In Morocco, the oversupply of tomatoes during the peak fall and early winter season led to a sharp price drop, while in Spain, favorable weather conditions and increased production led to a temporary price surge. Producers and traders should focus on efficient harvest scheduling and supply chain management to align with seasonal demand shifts in such dynamic markets. By anticipating these trends, stakeholders can optimize pricing strategies, reduce waste, and maintain profitability. Focusing on quality control and differentiating products based on premium factors, such as the high-quality tomatoes produced in Spain's Murcia region, can help producers command higher prices even in competitive markets. This approach can safeguard against market volatility and ensure stable revenue streams throughout the year.

Adopt Integrated Pest Management and Diversified Crop Rotation

Australian growers should prioritize Integrated Pest Management (IPM) and crop rotation to promote long-term sustainability in tomato farming. IPM is a holistic approach that reduces reliance on chemical pesticides by integrating multiple strategies such as biological controls (e.g., introducing natural predators like ladybugs), cultural practices (e.g., timely planting and harvesting), and regular monitoring to detect pests early. By monitoring pest populations and using targeted treatments only when necessary, growers can minimize the impact of chemicals on the environment and non-target species. Alongside IPM, crop rotation is an effective strategy for managing pests and enhancing soil health. Rotating tomatoes with crops such as legumes, leafy greens, or other non-related plants helps break pest cycles, disrupts the life cycle of soil-borne pathogens, and reduces the buildup of pests like TPP. Moreover, rotating crops improves soil structure and fertility, leading to healthier tomato plants and more robust yields. By combining IPM and crop rotation, growers can create a more resilient farming system that helps control TPP and other pests and improves overall farm productivity and environmental sustainability.

Diversify Export Markets to Mitigate Price Fluctuations

Tomato growers in countries like Mexico, Morocco, Türkiye, and Spain can mitigate price fluctuations by diversifying their export markets. Expanding into emerging markets such as China, India, Southeast Asia, and sub-Saharan Africa, where demand for fresh produce is growing due to rising populations and urbanization, can provide more stable income streams. For instance, Mexico can target markets like China and Vietnam, while Morocco can explore opportunities in the Middle East and Eastern Europe. Similarly, Türkiye and Spain could expand exports to Central Asia, North America, and Southeast Asia. By tapping into these regions, growers can reduce reliance on traditional markets, such as the US and Europe, and secure better pricing, even during oversupply or price drops.

Sources: Tridge, AgroPortal.ua, Horti Daily, Mafra, Valencia Fruits

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