Organic Tomato News

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.

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