A Global Overview Of The Tomato Market: Challenges And Trends

Jul 19, 2024

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Morocco: Morocco experienced a turbulent and challenging tomato season. Aside from the late varieties exported in summer, most of Morocco's tomato season has concluded. Early heatwaves delayed the season by a month, causing average prices to drop by 30%. Rising resistance from France and Spain towards Moroccan tomatoes led to legal actions in these countries. In North America, tomato prices have shown slight weakness. Over the next two weeks, domestic supplies in the US will decrease, but as other states begin harvesting, the supply will improve. Canada has a considerable amount of greenhouse tomatoes. Northern Mexico's tomato harvest is in full swing, with shipments continuing until mid-July. The demand and prices for Mexican tomatoes are very favorable. In South Africa, tomato prices have further decreased but remain 70% higher than last year. In China, tomato prices are higher than in previous years due to lower yields in major growing regions like Shanghai and Zhejiang, where low temperatures have impacted fruit setting, leading to reduced production.

 

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Italy: Tomato prices have plummeted due to stagnant demand. The greenhouse tomato cultivation is currently in transition, with winter crops ending and summer short-cycle crops beginning. In this context, the wholesale market in Victoria, Sicily, has seen prices fall for ten consecutive days. The crisis is mainly driven by stagnant demand and competition from Spain, Turkey, and Morocco. Despite Morocco previously facing phytosanitary pressure, it now appears stronger, although wholesale prices are similar to those in Italy. However, they continue to depress tomato prices across the Euro-Mediterranean region. Cherry tomato prices range from €0.80 for the best batches to €0.30 for crops nearing completion, all below production costs. Some processors are offering prices as low as €0.20-0.25 per kilogram. Prices for Pixel and Piccadilly varieties overlap, ranging from €0.70 to €0.30 per kilogram. Plum tomato prices vary from €1 per kilogram for premium categories to €0.50 for older products. When market demand declines, Italian retailers tend to source tomatoes from abroad. Over 90% of Italian households buy tomatoes, with an average purchase frequency of nearly 18 times per year and an average spending of around €2.5 per transaction.

Germany: Excess tomato supply is forcing prices down. Tomatoes from the Netherlands and Belgium dominate the market, supplemented by supplies from Germany, Spain, and Italy. The significant increase in supply often exceeds demand, which is decent but insufficient to prevent oversupply. Consequently, traders are frequently compelled to lower prices. The Netherlands and Belgium lead the vine tomato market with 47% and 44% shares, respectively. For cherry tomatoes, the market is more diverse, with recent shares being 38% for the Netherlands, 27% for Italy, and 23% for Belgium.

France: There is an abundant supply of tomatoes in the French market, leading to a slight imbalance between supply and demand. This has put pressure on prices, which have fallen compared to the same period last year, despite good quality. Competition from tomatoes from the Netherlands and Belgium is also present. The last batches of Spanish tomatoes will arrive in France this week, but the supply is expected to end soon. For cherry tomatoes, there is intense competition from Morocco.

 

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Spain: The greenhouse tomato season in Almeria has ended, with the next harvest expected to start earlier in the 2024/25 season. Moroccan tomato imports have led to protests from several associations and producer organizations in France, combined with supplies from other regions, causing prices to drop sharply during the winter tomato sales period in Almeria. "Since the end of December or early January, low prices have complicated sales, and we have not yet recovered; fortunately, the situation at the start of the sales season was very good, with prices constantly rising," explained an operator from Almeria. "It must be said that not only the good weather here but also in other producing countries has led to an oversupply from all regions. Today, we can ship millions of kilograms more than the previous season, even if prices are low, as people harvest early." "However, looking at Moroccan export data, we are surprised that Europe cannot control the shipments. Now, if we talk about the UK, the data says it all; except for specific customers, the UK essentially only buys Moroccan tomatoes, further complicating the situation," he noted. "This year, compared to last year, we will be able to advance the season further, giving us the advantage of getting products sooner. In the 2023/24 season, the biggest factor delaying the start was the fear of tomato wrinkle virus, but this year we have resistant varieties, so we expect to enter the market at least 20 days earlier, which means a month or 40 days sooner." "When the Netherlands or Poland start harvesting lower quality tomatoes, we will be able to supply new crops more quickly, as there is a large demand and good prices there. In this regard, Morocco cannot enter the market as quickly due to the hot weather, but in Almeria, we are in a privileged region for tomato production."

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