Harvesters have begun picking tomatoes in California’s fields and the industry expects to be going full tilt by the middle of July. Packers and growers are anxious about this year’s crop because of its size and the high price of tomatoes. Forecasts are for a record setting crop over 12.5 million tons, and packers are paying a record $80 per ton for the tomatoes.
ith the arrival of new supplies this summer, prices for bulk tomato products will fall from the dizzying spot prices seen after the 2008 pack. Still, California packers’ opening prices for 2009 bulk products are higher than in 2008. Prices are being driven by the increased cost of raw tomatoes and expectations tight supplies globally.
In response to a shortage created by increased processed tomato consumption globally, the world’s tomato crop is expected to increase 10% in 2009. The World Processing Tomato Council (WPTC) forecasts world production reaching a record breaking 40.1 million metric tons (MT). This is 18% above the average of the prior five years.
For the fourth consecutive year, California’s packers will pay substantially more for raw tomatoes. After a protracted negotiation, growers and processors settled at $80 per ton in late March. This year’s contract price represents a record increase of 14.3% over last year’s $70.
