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Let’s Connect at SIAL Paris – Visit Morning Star at Booth 4N 067!

We're excited to announce that The Morning Star Packing Company will be exhibiting at SIAL Paris from October 19 – 23! We would love for you to stop by our booth (4N 067) and meet our team.

At the show, we'll be showcasing our extensive portfolio of California Tomato Ingredient Products, including our new production process that advances our Cold Break color capabilities. As the leader in ingredient processing tomatoes, Morning Star is dedicated to offering top-quality products tailored for your specific needs.

If you'd prefer to set up a one-on-one meeting in advance, feel free to reach out to Erik Sunderbruch at esunderbruch@morningstarco.com or your sales colleague.

We look forward to meeting you and discussing how we can support your needs.

See you at SIAL Paris!

The Morning Star Packing Company
Booth 4N 067

Click to Review Our Products Portfolio

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Morning Star Newsletter now distributed electronically

As a reminder, Morning Star is now distributing our newsletters electronically using an email distribution vendor called Mailchimp. Your e-version will now include informative Morning Star videos and highlights. Depending on your company's firewall, these emails may initially be directed to you spam folder.

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2024 SEASON CALIFORNIA AGRICULTURE UPDATE

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Looking Ahead: Key Considerations for California Growers in 2025

As we transition into Fall, growers are already looking ahead to 2025 with a range of considerations. They are evaluating prices, demand for their commodities, borrowing interest rates, financing, labor, weather, and water resources, alongside their usual business concerns.

Commodity prices and demand are closely linked. While there are no major shortages in California-grown crops that might drive up prices, we have seen a recent increase in corn silage prices. This is due to a reduced planting of silage this year, lower forecasted prices, high temperatures impacting yield, and dairy customers' concerns as we approach a potentially drier 2025. Additionally, milk and nut prices have improved. Meanwhile, most other California crops prices remain under pressure.

Although there is some optimism about falling borrowing rates, they remain about 4% higher than what growers have previously paid. This increase in borrowing costs represents a significant expense compared to prior years.

Securing financing is another challenge. With falling commodity prices, land values have also decreased. Land in critically over drafted groundwater basins affected by the Sustainable Groundwater Management Act (SGMA) face pumping restrictions, potentially limiting crop production and affecting returns. Consequently, lending institutions may require growers to contribute more to their financing, reducing available operating capital.

Labor costs are also on the rise, especially following the recent legislation raising fast food workers' wages to $20 per hour. Attracting skilled agricultural labor remains a challenge amidst competitive pay rates.

Despite these challenges, California growers continue to demonstrate remarkable resilience. They are known for their innovative and adaptive solutions, as well as their dedication to meeting demand and providing high-quality crops.

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2024 SUMMER-FALL CALIFORNIA WATER CONDITIONS

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A Year of Water Highs and Lows: California’s 2024 Reservoir Levels and Anticipated La Niña Effects

In 2024, California's weather has presented us with a mixed bag of challenges and triumphs. Winter temperatures and precipitation were slightly above average, but saw mild interruptions in transplanting, while July brought about extreme temperatures—over 100 degrees for more than 50 days in the San Joaquin and Sacramento Valleys. On a positive note, August saw a further increase in the California State Water Project (SWP) water supply allocation, now up to 40%.

Jones (CVP) Pumping Station

California's major reservoirs (See Figure 1) have seen a significant boost. Currently, their levels range from 95% to 139% of the historical average, which is a testament to the effective management and resilience of our water systems. The State and Federal pumping from the Banks (SWP) and Jones (CVP) pumping stations have been operating near their full capacity, contributing to a restoration of the San Luis Reservoir to 120% of historical values. With a current combined storage of 941,596 Acre Feet, and the Central Valley Project Share at 416,200 Acre Feet, the San Luis Reservoir is well-positioned to support critical agricultural needs, including those of Westland’s Water District, which serves Fresno County—the leading processing tomato growing region in the state.

Looking ahead, however, there are concerns to be mindful of. Forecasts indicate a 66% chance of La Niña conditions developing from September through November, potentially extending into the winter of 2024/2025. La Niña typically brings drier weather patterns to California, which could impact water availability and agricultural productivity. Additionally, California’s Sustainable Groundwater Management Act (SGMA) restrictions are likely to influence how growers manage their resources and adapt to changing conditions.

Despite these challenges, the tenacity of California growers remains unwavering. Our community has consistently demonstrated its ability to overcome adversity through innovative solutions and determined efforts.

Morning Star will continue to develop our understanding of the future water availability in California and evolve our tomato acquisition strategy to better ensure a sustainable future.

Figure 1 - Source: California Department of Water Resources

PDF Link: CA Res Chart_Sept 8

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Morning Star Newsletter now distributed electronically

As a reminder, Morning Star is now distributing our newsletters electronically using an email distribution vendor called Mailchimp. Your e-version will now include informative Morning Star videos and highlights. Depending on your company's firewall, these emails may initially be directed to you spam folder.

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2024 SEASON GLOBAL TOMATO CROP UPDATE

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Global Production Estimates Stable Amid Heat Waves

On September 6, the World Processing Tomato Council (WPTC) released an update on expected volumes throughout the world. In June, the WPTC reported global production to be a record 52.1 million short tons and have since slightly revised this number to 50.9 million short tons. This reduction is largely driven by Iran, which decreased their estimate by approximately 35% from 2.1 million tons to 1.55 million tons due to very high temperatures in the southern part of the country. Some temperatures have reportedly reached 113 degrees Fahrenheit, which has impacted yield and quality. Last year, Iran processed 2.2 million short tons of tomatoes, which made up 4.5% of total world production and they were the sixth highest producing country.

Iran decreasing estimates due to excessive heat is a trend that will likely continue throughout the world, as other major producing countries—California (USA), China, Spain, Turkey, and Portugal—have all reported similar prolonged heat waves. Spain, Turkey, and Portugal have not revised their estimates and are still projected to process that same volumes that were reported in June. The USDA NASS released an updated 2024 Processing Tomato Production report on August 29th, where they dropped California’s forecasted tons by 1.8% from 11.5 million short tons to 11.3 million short tons. Of course, this drop in forecasted California production is not very significant and the industry will be watching closely if California or any other major producing countries drop their forecasted tonnage by anymore.

The story of the year has been China’s forecasted increase in production for the 2024 season. In 2022, China processed 6.8 million short tons of tomatoes and increased this to 8.8 million short tons in 2023. In February, China reported increasing production to 12.1 million short tons, but have since revised production estimates to 11.5 million short tons or a 5% decrease from their February projection. Still, this is a projected 69% increase in production from 2022 levels. In our next Newsletter, we will follow up in more detail regarding 2024 world tomato production.

Source: World Processing Tomato Council

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2024 European Farmer Protests

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European Farmers’ Protests: A Response to CAP Reforms and Economic Pressures.

Farmers across Europe began protesting in late 2023 and continued into 2024, primarily driven by the stricter environmental regulations imposed by the reformed Common Agricultural Policy (CAP), compounded by economic uncertainties, and trade policies that favor cheaper imports from non-European countries. In a nutshell, CAP sets guidelines for farming in Europe, provides farmers financial support, ensures an affordable food supply for European consumers, and supports rural development. CAP makes up about 30 to 40 percent of the total EU budget, whereas the U.S. Farm Bill, a similar policy in the U.S., accounts for 2 to 3 percent of the federal budget.

In 2023, CAP went through some significant changes that took effect in 2024 to align European agriculture to environmental and climate goals. These changes include stricter environmental regulations, tying CAP payments to eco-scheme that reduces direct payments to farmers, and not addressing import competition from trading partners that do not have the same environmental standards.

While these CAP reforms are in line with broader EU funded initiatives and have achieved some objectives, they have also led to notable drawbacks. For example, stricter environmental regulations have increased operational and administrative costs and the financial support given by the EU does not fully offset these costs. Also, mandatory agricultural land use for non-productive uses, such as conservation, could make Europe more dependent on imports as less land is available for production.

Through their protests, farmers are seeking modifications to the new environmental requirements that will help reduce their costs. They also want the EU to support trade policies that will prevent cheap agricultural imports from non-EU countries from flooding the market and ensure that imported goods meet the same environmental standards required of EU-produced goods.

For European processing tomato growers, the reformed CAP is expected to lead to higher production costs due to the need for additional inputs and the administrative burden of complying with new environmental standards. On the flip side, because a portion of CAP payments are now tied to eco-schemes, farmers may receive less direct payments if they choose not to participate in these voluntary programs. As a result of these higher costs and tighter margins, the European processing tomato industry could face reduced domestic production and increased competition in the domestic and export market for their finished products.

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Morning Star Newsletter now distributed electronically

As a reminder, Morning Star is now distributing our newsletters electronically using an email distribution vendor called Mailchimp. Your e-version will now include informative Morning Star videos and highlights. Depending on your company's firewall, these emails may initially be directed to you spam folder.

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EXPERT SOLUTIONS FOR YOUR PRODUCTION LINE

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More than a Supplier: Morning Star’s Role in Enhancing Your Food Manufacturing Processes

At Morning Star, we believe that optimizing your food manufacturing operation isn’t just a convenience—it’s the key to long-term success. Efficiency in production is a vital component in driving growth and staying ahead in a competitive market.

As a partner who continually innovates our own processes and product offerings, we understand the intricacies of modifying processes and have made it our mission to be more than just a tomato ingredient supplier; we’re your go-to partner in delivering efficiency, quality, and innovation.

Our commitment goes beyond providing a reliable supply of quality products. We are dedicated to delivering real value to your business. We understand that each customer has unique challenges and objectives. Whether you're seeking to streamline your production processes or wondering if your current setup is hindering growth, our team of engineers, technicians, and quality assurance and quality control experts is ready to offer solutions tailored to your goals.

Our team excels in analyzing production lines and recommending targeted improvements. From fine-tuning formulations to implementing advanced upgrades, we provide actionable strategies designed to optimize your operation. If you’re considering switching from canned ingredients to drums, or from drums to bins, we can guide you through a seamless transition. Our team is also equipped to assess how our products integrate into your systems and assist in developing new products. These changes can lead to significant cost savings and improve overall efficiency.

Our founder’s vision of quality and customer satisfaction laid the foundation for the relationships we build today—strong, long-term partnerships driven by mutual success. Our world-class team brings decades of expertise in food processing, packaging, and quality assurance, offering you practical support tailored to your specific needs.

As you plan for the future, consider the comprehensive support Morning Star can provide. With our unwavering commitment to innovation and excellence, we’re here to help you overcome challenges and reach your growth goals. Together, we can turn your vision of efficiency and success into reality.

###

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Morning Star Newsletter now distributed electronically

As a reminder, Morning Star is now distributing our newsletters electronically using an email distribution vendor called Mailchimp. Your e-version will now include informative Morning Star videos and highlights. Depending on your company's firewall, these emails may initially be directed to you spam folder.

[/fusion_text][fusion_button link="" text_transform="uppercase" title="" target="_self" link_attributes="" alignment="center" modal="subscribe" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" color="custom" button_gradient_top_color="#a51824" button_gradient_bottom_color="#a51824" button_gradient_top_color_hover="#c3202a" button_gradient_bottom_color_hover="#c3202a" accent_color="#ffffff" accent_hover_color="#ffffff" type="flat" bevel_color="" border_width="1" border_radius="0" border_color="#ffffff" border_hover_color="#ffffff" size="large" stretch="default" icon="" icon_position="left" icon_divider="no" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]Subscribe Newsletter[/fusion_button][fusion_modal name="subscribe" title="Subscribe Newsletter" size="large" background="" border_color="" show_footer="yes" class="" id=""]












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COLLEAGUE HIGHLIGHT: DAREN CLIFF

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Meet Daren Cliff: Colleague of The Morning Star Company since 2024.

Meet Daren Cliff, one of Morning Star’s newest and dynamic team members. Daren joined us in 2024, bringing a wealth of experience and a fresh perspective to our enterprise. His mission here is clear and ambitious: to achieve our sales objectives while meeting our enterprise goals.

Daren's journey to Morning Star began about eight years ago when he first came across a Harvard Business Review article about our company. Intrigued by the people and the entrepreneurial spirit of our enterprise, he was drawn to join us. Since starting, he’s described Morning Star as innovative, honorable, and dynamic—qualities that resonate deeply with him.

Prior to joining Morning Star, Daren’s career was predominantly in the wine industry, where he excelled in business development, sales, and strategy. His extensive background includes experience across both distribution and production tiers. Interestingly, his professional journey also took him to URS Corporation as an assistant project manager, where he worked on CEQA and NEPA compliance within the Energy sector—a unique and varied experience that adds to his diverse skill set.

While Daren’s transition into the tomato world is new—particularly in gaining a foundational understanding of our products and processes—his determination and eagerness to learn are evident. Outside of work, Daren is passionate about mountain biking. He relishes the camaraderie with his riding buddies and the opportunity to explore beautiful locations across California and beyond. Next spring, he's looking forward to a biking adventure with his friends in the Pisgah National Forest in North Carolina.

Daren's personal life is equally vibrant. He and his wife, Jennifer, who is involved in marketing for their local Chamber of Commerce, have one amazing and talented daughter, Parker. Parker is a Division 1 athlete at the University of Georgia, studying Agribusiness and Applied Economics. The family enjoys cooking and baking together, with a particular fondness for sourdough. They’ve maintained a sourdough starter for a very long time and bake bread at least a few times a week.

They also love traveling, with Europe being their favorite destination. They have fond memories of a magical Christmas holiday in Italy and are currently planning a trip to Spain for this Christmas season. Additionally, skiing and watching Parker’s competitions are family favorites.

A fun fact about Daren is that he and Jennifer were the founders and original publishers of the food magazine Edible Sacramento. His hobbies extend to playing guitar, reading, and gardening, with favorite pastimes including mountain biking, indulging in Italian cuisine, and enjoying live music.

As for his future aspirations, Daren doesn’t have a specific wish list but strives to make each day the best it can be, both personally and professionally. On his bucket list, he hopes to see the Great Pyramids and the Northern Lights, ideally with his family by his side.

Daren’s blend of experience, passion, and enthusiasm makes him a valuable asset to our team, and we’re excited to have him as part of the Morning Star family.

###

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GRAFTED SEEDLINGS: THE FUTURE OF TOMATO PROCESSING

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Morning Star aims to create sustainable and resilient tomato seedlings with the use of high-speed automated grafting.

Land availability is one of the significant challenges that the processing tomato industry faces. Pressure from permanent crops, alternate row crops, and the spread of soil-borne disease in the 'tired soils' near the factories have forced processors to source increasing volumes from fields that are further away from their factories. This, coupled with regulations in crop protection, water usage, and rising labor costs, creates a challenging production environment for both experienced and new growers alike.

In collaboration with its growers and technology providers, Morning Star has led a research project to apply the benefits of grafting to processing tomato production. This ongoing 10-year project seeks to identify optimum rootstock-variety combinations, mechanical grafting equipment and methods, post-grafting healing, and efficient seedling production methods. Corresponding field trials have centered on optimum plant population, while nutritional and cultural practice studies are ongoing to train and harness the power of the vigorous rootstocks.

The development of the ISO Horti High Speed Grafting Machine “checks the box” for a fully automated grafting machine with superior plant quality results. With one operator, the machine does the work of 10 people with a much higher success rate. The machine learning vision system, precision cutting, clipping buffer, and built-in disinfection set the stage to fulfill the high throughput of grafted plants required to serve the industry.

Grafting standard hybrids on carefully selected rootstocks readily creates a resilient tomato seedling that thrives in the challenging soils found nearer to factories. Additionally, these resilient seedlings have the potential to increase yield by up to 30% compared to a hybrid control. Furthermore, grafting reduces the acreage required for cultivation, as well as the transportation costs at the time of harvest.

Much like the industry-wide yield increases with the adoption of transplanted seedlings and drip irrigation, we believe grafted seedlings will be the next significant bump in yield. Grafting is positioned to be an acceptable cultural practice to sustainably ease the pressure on land, with the added benefit of reducing operational costs for the grower and the processor.

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Contributing Author: Nana Bekoe-Sakyi, California Masterplant

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Morning Star Newsletter now distributed electronically

As a reminder, Morning Star is now distributing our newsletters electronically using an email distribution vendor called Mailchimp. Your e-version will now include informative Morning Star videos and highlights. Depending on your company's firewall, these emails may initially be directed to you spam folder.

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2024 PRE SEASON CALIFORNIA TOMATO CROP UPDATE

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Resilience and Adaptation: Collaborative Efforts Secure Tomato Supply in California

Tomato planting in California for the 2024 season is nearing completion. Despite mild interruptions due to weather, most tomato growers have managed to plant fairly close to schedule. It has been fortunate for California tomato growers to not have to worry about severe weather conditions this planting season because there are other areas that require their focus.

FIGURE 1 - Sugar Beet Leafhopper

A new rule banning the application of neonicotinoids on flowering plants went into effect this year, affecting processing tomatoes among other crops. Traditionally, a significant portion of tomato growers in the southern region of the state, who have experienced curly top damage from sugar beet leafhoppers in the past, or have heard about their neighbors experiencing damage, have used an insecticide in the greenhouse prior to transplanting to protect the young plants from leafhoppers. The leafhoppers are vectors for the curly top virus, which kills the plant (See Figure 1).

Kern County, one of the southernmost growing counties in California, proclaimed a local emergency in early April to protect their 8,000 to 10,000 acres of processing tomatoes by allowing the application of neonicotinoid pesticide if the leafhoppers in that area posed a serious threat. Northern counties with past leafhopper issues followed suit and have declared or are in the process of declaring emergencies, although the rains in the hills resulted in good annual grass growth, which helped to minimize the growth of leafhopper host plants.

News headlines announcing the emergency declaration and use of neonicotinoids caused concerns for some customers over potential supply reliability. However, the emergency declaration is a precautionary safety measure.

FIGURE 2: Branched Broomrape Weed

Another top priority for growers in California as we head into the summer months is the reemergence of the very evasive branched broomrape weed, a parasitic plant that attaches to the plant root below ground (See Figure 2) and can spread with exponential growth. In response to a severe infestation in the Sacramento Valley in the late 1950s, an industry-led effort funded through a marketing order program, which included fumigation, helped remedy the problem along with intensive surveys. With the weed’s reemergence, research has been ongoing both in California and other countries for treatment and eradication. Secretary of Agriculture Karen Ross has appointed a committee, and the first organizational meeting was held in mid-May. This committee is tasked with forming a strategic plan on how to cope with broomrape, minimize its growth, and/or eliminate this weed in California.

Morning Star is very active in the prevention and control of these invasive species. However, it should be noted that the issues discussed are currently isolated to particular regions. This is one of the many reasons Morning Star maintains a large, geographically diverse sourcing region. Should an incident occur in one growing region, we can still acquire raw products from the majority of other growing regions, which helps mitigate a catastrophic supply issue.

While growing tomatoes in California can’t be described as a profession without worries, the forethought and actions exhibited through the collaboration of growers and industry allies bring confidence that the tomato supply in California will be sufficient to meet the needs of its customers.

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Damaged plant as a result of the curly top virus.

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Branched broomrape weed in a tomato field.

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2024 PRE SEASON GLOBAL TOMATO CROP UPDATE

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2024 Global Production Expected to Hit 47.5 Million mT

The World Processing Tomato Council reported that, as of May 17, projections for the 2024 crop should exceed 2023’s production of 44.2 million mT. With China and California expecting crops of 10.5 and 11 million mT respectively, the accuracy of those projections could impact the final production for 2024. Other notable regions with significant output are Italy with 5.6 million mT, Spain with 2.8 million mT, Turkey with 2.7 million mT, and Iran with 1.9 million mT. Planting has now officially begun in the Northern Hemisphere; however, rain and adverse weather in Europe have caused some significant delays.

Smaller production regions are being affected heavily by those adverse weather effects. For example, rain, wind, and highly variable temperatures have delayed planting in France, with only 50% of total surface areas planted. The country expects delayed harvesting, likely not starting until early August, and expects 190,000 mT in 2024. On the other hand, Greece has enjoyed a warm spring which allowed for early planting. With 80-85% of surfaces planted, they are expecting 500,000 mT.

Larger regions of production, such as Italy, have struggled with rain delays to planting. Approximately 50-55% of surfaces have been planted in the Northern region. Rainfall and low spring temperatures have hindered plant growth, and Italy now faces harvesting delays of 1 or 2 weeks. The South has benefitted from lighter rain, but water availability remains a challenge in Puglia. The final forecast is 5.6 million mT.

Similar to Italy, Portugal has had unpredictable weather and rain. Transplanting was delayed in March due to wind and rain, but approximately 55% of surfaces have now been planted. Their forecast remains at 1.5 million mT.

In keeping with the trend, Spain has also had delays in transplanting (10-15 days) due to rain. Expectations are for planting to be complete by the end of May in Extremadura. The Andalucia region was delayed as well but not to the same extent as Extremadura. The total forecast is still 2.8 million mT.

Turkey has enjoyed nice weather, similar to Greece, and expects to begin an early start to harvesting. They are expecting 2.7 million mT.

Despite ongoing conflict in the country, planting in Ukraine has been steady, with 45% of tomatoes going into their growing region. Some low temperatures and frost have slowed the growth in field seedlings, but Ukraine’s forecast is still 600,000 tonnes.

Taking a look at the Southern Hemisphere, where harvesting is coming to a close, we are seeing Brazil face some major plant health and weather challenges. Extreme temperatures in the early season caused whitefly, a virus-transmitting agent from soybean crops, to attack early transplanted tomato crops, damaging some crops beyond repair. The amount of rain in March, coupled with high temperatures, delayed significant transplanting, causing producers to lose seedlings in nurseries. Despite the setbacks, yields are overall expected to have improved from 2023, and Brazil expects to return to 2022 volumes of 1.7 million mT.

As with every processing season, weather and disease play a crucial role in crop health at this time of year. As major regions such as China, California, Italy, and Spain are wrapping up their planting season, we should know more in the coming month, particularly after the WPTC congress in early June, about how reliable and accurate current crop projections are.

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