The last weekend in April brought some long-awaited rain and snow to California, but it was too little and too late. Unfortunately, the “D” word is starting to be widely used within California and other western states. As can be seen in Figure 1, a large portion of the Central Valley, our primary processed tomato growing region, currently registers at the Severe Drought stage, though a few counties still remain in the “Moderate” stage.
In recent years, California Agriculture has been affected by a long-term drought that is causing serious productivity and profitability problems to food processors and the farming community. Unfortunately, water scarcity continues, thus bringing restrictions to a critical point in some agriculture production areas. The drastic reductions in water allocations are forcing growers and food processors alike to optimize this valuable natural resource.
With the price of raw tomatoes expected to increase, processors around the world continue to face challenges from new costs and shifts in demands due to the COVID-19 pandemic. Despite these challenges, processors have published intentions to increase total production by 1% for this coming season.
It’s a story of producers/suppliers languishing at prices just over variable costs for four or five years. Factories are closed and torched, and companies disappearing from bankruptcies or choice are the features of the languishing as we all fight for extra sales, which are not there in the marketplace as a whole.
The Morning Star Packing Company provides an industry outlook with a snapshot report on price negotiations with the CTGA Board and our thoughts on Inventory and Movement for the 2021 and 2022 seasons.
With seed imports from China under restriction, concerns over supply have been voiced throughout the processed tomato industry. Last year’s sourcing insecurity from China set plans in motion far before the 2021 seed sowing deadlines of January and February.
As we head into 2021, California continues to experience below-average rainfall. It is a far too common occurrence for California’s growers, especially those in Fresno County, which is located in the southern part of the San Joaquin Valley.
As planting season is upon us, we thought it would be a good time to provide a recap of Morning Star’s negotiations with the CTGA Board and our thoughts on the matter. From what we have heard from growers and Morning Star’s own sentiment there exists a desire to set an early price.
One may ask: why is the California tomato industry already signaling a 2021 pack year tightness, with the new season still over four months away? We are at a point in our planning where we have a good view of what tonnage is possible to achieve for the upcoming season; acres are booked, and seedlings will start going into the ground shortly. Our industry is also tracked quite carefully and has good transparency of industry data, such as historical consumption averages (usually referred to as movement), and the collective US tomato industry inventory position published by the California League of Food Producers (CLFP). Numbers are always translated back to equivalent tons of fresh tomatoes in industry talk, making our position easier to review.
2020 has been a year of extraordinary circumstances. The world has adapted to a “new norm” and continues to push through; however, everyday struggles remain.
Valley Sun Products, Inc. is part of the Morning Star family and is the world’s largest producer of sun-dried tomato products. Our team has over 25 years of combined experience and continuity in the production of sun-dried tomatoes. Being part of a vertically integrated enterprise family ensures our involvement in each step of the supply chain, allowing us to produce premium sun-dried tomatoes with pride and integrity.
Have you tried a sprinkle of chipotle flavored sun-dried tomato powder on your popcorn and savored the flavor bomb that hits your tongue? Have you infused some sriracha flavor into your dips and dressings to create a new trendy flavor profile? We have, and we continue to innovate new ways to incorporate our flavor-packed powders and sun-dried tomato bits into modern-day dishes, snacks, condiments, and more. However, these products reach far beyond their flavorful benefits.
Have you tried a sprinkle of chipotle flavored sun-dried tomato powder on your popcorn and savored the flavor bomb that hits your tongue? Have you infused some sriracha flavor into your dips and dressings to create a new trendy flavor profile? We have, and we continue to innovate new ways to incorporate our flavor-packed powders into modern-day dishes, snacks, condiments, and more. However, these powders reach far beyond their flavorful benefits.
“First and foremost, I’d like to thank Chris Rufer for allowing me to be a part of this great company and for his continued guidance and generosity. I have worked alongside so many extraordinary colleagues during my 15 years with Morning Star who have inspired and encouraged me, and I will miss them all.”
