Focus on Milk & Eggs [milk]
The major commodities markets are under the spotlight as a valuable resource for devising buying...
1 min read
Follow us
The remarkable development of organic food production in recent years has included processed tomato products. Despite a greater vulnerability of production and increasing inflationary pressure on consumption, the sector continues to deliver solid performance. The main drivers of growth are:
▪ Increase in market demand in quantitative terms (both from consumers and from big retail chains which increasingly demand these products on their shelves)
▪ Reduction of conversion time to organic practices
▪ Increase in the surface areas planted with organic tomatoes
KEY TAKEAWAYS
- Global tomato production decrease in 2022 is disbalancing the market; with more demand than supply.
- No unsold stocks of diced and paste all over the world.
- In fact, it could be difficult for current stocks to meet demand up to the next crop. Strong demand from industrials, retailers and Food Service.
- Still high prices of crops competing with tomatoes (sunflower, cereals, corn, cotton).
- Input cost for farmers remains high.
- Current market prices for paste in South America are between 2.000/2.100 USD/mt for 30/32. Equiv. 1.785- 1.870€/mt 28/30.
- Current market prices for paste in North America are between 0,89-1,1 USD/lb for 30/32. Equiv. 1.755- 2.120€/mt 28/30.
Key Actions April '23
Review 2022 stocks to ensure that they cover until 2023 crop. Secure volumes early for 2023/2024 Closely monitor farmgate prices.
Download our Tomatoes Bulletin Now
