Date: January 29, 2024

Spain, the US, and Iran to reduce production

Early projections for the 2024 industrial tomato season indicate a potential decrease in output in key producing regions like California and Spain. However, the drop in prices of alternative crops such as sunflower and corn has sparked renewed interest in industrial tomatoes among farmers in other countries.

According to the USDA, California’s tomato processors are expected to secure contracts for 11.6 million short tons for the upcoming season – a 10% decrease from the USDA’s August estimate of 12.9 million short tons for the 2023 crop and 8.5% less than the 11.47 million metric tons projected by the World Processing Tomato Council (WPTC). The cultivated area is set to shrink from 255,000 acres to 232,000 acres, with the USDA basing the final production estimate on an average yield of 50.0 short tons per acre. S&P Global Commodity Insights had previously forecasted a decline in California’s tomato production due to rising inventories.

Spain might also reduce its tomato output in 2024 from 2.6 million metric tons to 2.3 million metric tons, according to the WPTC. Industry sources have indicated that several factors contribute to this decrease. For instance, the demand for tomatoes in the European market, particularly in Spain, is expected to be lower.

Greece, Italy and France to Boost Tomato Production

Meanwhile, Greece aims to boost its tomato production by 10% year-on-year compared to last year’s target of 480,000 metric tons. The expansion is expected to focus on the central and northern regions as they explore alternative crop options. The same goes for  and Italy. As France aims to boost production from 160,000 metric tons in 2023 to 190,000 metric tons in 2024. Similarly, Italy is planning to increase production from 160,000 metric tons in 2023 to 190,000 metric tons in 2024.

This increase in production from these countries is expected to offset the decrease in production from Spain.

However, how who will offset the tomoato production in the USA?

To combat these challenges, there are ongoing efforts to diversify tomato production in different regions of the US. For instance, California has been increasing its production and has become the second-largest producer after Florida. Other states such as New Jersey and Virginia are also expanding their tomato production to meet domestic demand and reduce reliance.

The United States is one of the largest producers and consumers of tomatoes in the world, with Florida being the leading state for tomato production. However, recent natural disasters such as hurricanes have significantly impacted tomato production in Florida. In 2017, Hurricane Irma caused severe damage to tomato crops, resulting in a decrease in production by almost 40%. This not only affected local supply but also disrupted global trade as the US is a major exporter of tomatoes.

Lakeside Food Sales Inc is a bulk food ingredient supplier and distributor. Due to many of our products being Food and Agricultural Commodities, we closely monitor various reports offered by product manufacturers and data, analytics and climate conditions that are released by various world organizations. This data often provides insights into pricing for raw material for raw food ingredients that we supply to clients.

The content and viewpoints shared in this presentation were crafted by Lakeside Food Sales Inc. It contains forward-looking statements grounded in anticipated future events, yet remains subject to risks and uncertainties. Lakeside Food Sales, Inc. does not guarantee the accuracy of the content shared within, as this data was derived from various reports and briefings published by one or more industry resource and/or government agencies or world organizations.