2020 industry report: tomato

2020 Industry Report:TomatoNovember 2020

Market Intelligence Team

Written by

Tomatoes: The Cornerstone of Worldwide Agriculture

2

Consumption

Production & Exports

Imports

• Theconsumptionoftomato-basedproductshasincreasedbyaround4%between2018and2019comparedtotheaveragelevelofthepreviousthreeyearsandan8%differencecomparedtotheprecedingyear.West-ernEuropeandNorthAmericacomprised44%oftheworld’stotaltomatoconsumptionin2019.

• Overall,theconsumptionoftomatoeshasrisen.Thistrendhasoverallbeenlinkedtotheincreasinginterestinthehealthbenefitsoftomatoes.

• TheoutlookforMexicantomatoesthisseasonhasbeenmostlyoptimistic,withproductionandexportsrecordingsignificantincreasesinthefirsthalfof2020.

• Spanishproducersshifttoproducingothergreenhousevegetablesastheinfluxofhigh-qualityMoroccantomatoeshasdecreaseditsprominenceintheEuropeanmarketwiththeirlowerprices.

• WhileTurkishproductionshavebeenfairlygood,considerablylowpricesandhurdlesfromCOVID-19haveposedsomechallengesforthetomatosector.Ontheotherhand,TurkeyisshiftingtoamoreadvantageouspositiontoexporttoRussia.

• ArevisionoftheTomatoSuspensionAgreementbetweentheUnitedStates,thelargestimporteroftomatoesintheworld,andMexico,thelarg-estexporteroftomatoesintheworld,wasmadeinSeptember2019,ren-deringinvestigationsofmainimportvarietiesatthebordermandatory.

• Spanishproducersshifttoproducingothergreenhousevegetablesastheinfluxofhigh-qualityMoroccantomatoeshasdecreaseditsprominenceintheEuropeanmarketwiththeirlowerprices.

• LittleprogresshasbeenmadeinthefirstthreeroundsofestablishinganEU-UKtradedealfollowingBrexit.ManymajorEuropeanagriculturalcompanieshavestartedconsideringtherealitythatnotradedealwillcometofruitionbythecurrenttransitiondateonDecember31,2020,whichwilllikelyaffectagriculturaltradeasawholeasmoreregulationsandtariffstakeactioninthefollowingyear.

Contents

Part I - Tomato Product Information (HS Code: 0702)·································5

1.1 Varieties

1.2 Grade Classification under EU and USDA Parameter

1.3 Main Trade Regulations

1.4 Supply Chain

Part II - Global Market Dynamics ·······································································12

2.1 Consumption

2.2 Production & Exports

-Mexico

-Spain

-Moroccoe

-Turkeyy 18

2.3 Imports

-UnitedStates

-Germany

-France

-UnitedKingdom

Part III - Sources ···································································································· 23

Part I

Tomato Product Information (HS Code: 0702)

1.1 Varieties

1.2 Grade Classification under EU and USDA Parameters

1.3 Main Trade Regulations

1.4 Supply Chain

Name (Average Price)

Main Country of Popularity

Description

Ball Worldwide Also known as “round.” Classic to-matoes that are relatively large and round. They are more acidic than other tomatoes and are primarily the toma-toes used for industrial production. Can appear in different colors like yellow.

Cherry (EUR 4.35/kg)-the most ex-pensive variety

Worldwide Called the cherry tomato because of its resemblance to cherry in terms of shape and size. It has very low calories and is the sweetest tomato. It is a popular choice for salads and children’s meals and is available year-round.

Roma/Saladette Mexico An oval-shaped tomato. It contains a lot of pulp, holds a sweet taste, and is meatier than a ball tomato, making it ideal as a kitchen ingredient. It is also a popular choice for producers as it is firm enough to withstand damage for long-distance trade and contains a strong shelf life. It is currently the most grown tomato in Mexico, representing 54% of total tomatoes sown.

Raf (EUR 3.13/kg)

Spain A slightly flattened tomato that is known for being versatile in the kitchen. It has a crunchy texture and a sweet to sour taste.

Pear Spain A pear-shaped tomato. It has a smooth, hard skin with a bright red color. It has a sweet taste and is popularly used as a canned tomato.

Part. I 5


Tomatoesareamongthemostpopularvegetables intheworld, thanksto itsversatilityasbothacropandaningredient.Intermsofexportsalone,it isaUSD8billionindustrywherealmost80differentcountriesimportandaround60differentcountriesexportatleastUSD1millionworthofproductseachyear.

Varieties

Part. I

6

Table 1. List ofCommonTomatoVarietiesinMajorProducingRegions


Name (Average Price)

Main Country of Popularity

Description

Hanging Spain A medium-to-small tomato that is slightly flattened and round. They are grown in clusters and can be kept for several months. It has large amounts of pulp and less water, which makes it a popular choice for both spreads and stews.

Rosa de Bar-bastro

Spain A popular local tomato. It has a sweet and citrus taste and is pinkish in color. It is soft and contains high pulp and also boasts an aromatic smell and a popular flavor.

Ox Heart (EUR 2.92/kg)

Spain A tomato shaped like a heart. It is large and has a sweet taste. It is also a juicy tomato and resistant in growth. Can be eaten on its own.

Jack Spain Large in size, can appear green or red, and it contains a fruity aroma making it a popular choice for salads. It has few seeds and a lot of meat.

Kumato (EUR 2.50/kg)

Turkey Known as a gourmet variety. It has a sweet taste and great juiciness ideal for salads. It contains a dark color and has a rounded shape. Also contains antioxi-dant properties.

Cocktail Turkey Used similarly to cherry tomatoes, contains comparable sweetness. Eaten as a snack or used in salads. Grown in clusters with about 7 to 8 per vine.

Plum Turkey Shaped like a plum. It is a popular choice to use to make tomato-based processed products. Popular by chefs during tomato off-season.

Truss Turkey Classic tomatoes that are primarily known for their method of growing, in which they grow out of “trusses” that can carry up to six well-sized fruits.

Mature Green Turkey A tomato that typically shares the same physical qualities as a classic tomato, but contains a different ripening/sea-sonality cycle and appears green when mature.

Part. I Tomato Product Information (HS Code: 0702)

7

Othertomatovarietiesandtheiraverageprices:PinkTomato(EUR3.34/kg),Monterosa(EUR2.90/kg),Otello(EUR2.99/kg),TomatoesforSalads(EUR1.59/kg),Pera(EUR1.69/kg),Raw(EUR2.04/kg),Daniela(Canary)(EUR1.26/kg)-thecheapestvariety.

EU

Tomatoesareclassifiedinthreeclasses,asdefinedbelow:

• "Extra"Class-Tomatoes inthisclassmustbeofsuperiorquality.Theymustbefirmandcharacteristicoftheirrespectivevariety.Theymustbefreefromgreenbacksandotherdefects,withtheexceptionofveryslightsuperficialdefects,providedthesedonotaffectthegeneralappearanceoftheproduce,thequality,thekeepingqualityandpresentationinthepackage.

• ClassI-Tomatoesinthisclassmustbeofgoodquality.Theymustbereasonably firmandcharacteristicof their respectivevariety.Theymustbefreeofcracksandvisiblegreenbacks.Thefollowingdefects,however,maybeallowedprovidedthesedonotaffectthegeneralappearanceof theproduce, thequality, thekeepingqualityandpresentationinthepackage:aslightdefectinshapeanddevelopment,slightdefects incolouring,slightskindefects,veryslightbruises.

• Furthermore,"ribbed"tomatoesmayshow:healedcracksnotmorethan1cmlong,noexcessiveprotuberances,smallumbilicus,butnosuberization,suberizationofthestigmaupto1cm2,fineblossomscar inanelongatedform(likeaseam),butnot longerthantwo-thirdsofthegreatestdiameterofthefruit.

• ClassII-Thisclassincludestomatoeswhichdonotqualifyforthehigherclasses,butsatisfy theminimumrequirementsspecifiedbelow.Theymustbereasonablyfirm(butmaybeslightly lessfirmthan those inClass I)andmustnotshowunhealedcracks.Thefollowingdefectsmaybeallowedprovidedthetomatoesretaintheiressentialcharacteristicsinregardstothequality,thekeepingquality,andpresentation:defects inshapeanddevelopment,defects incoloring,skindefectsorbruises,providedthefruit isnotseriouslyaffected,healedcracksnotmorethan3cm in lengthfor round,ribbedoroblongtomatoes.Furthermore, "ribbed"tomatoesmay

Grade Classification under EU and USDA Parameter

Part. I

8


show:morepronouncedprotuberancesthanallowedunderClassI,butwithoutbeingmisshapen,anumbilicus,suberizationof thestigmaupto2cm2,fineblossomscarinanelongatedform(likeaseam).

US

U.S.No.1consistsoftomatoeswhichmeetthefollowingrequirements:

• Basic requirements:Similarvarietalcharacteristics;Mature;Notoverripeorsoft;Clean;Welldeveloped;Fairlywell-formed;and,Fairlysmooth.

• Free from:Decay;Freezinginjury;andSunscald.Notdamagedbyanyothercause.

• U.S.CombinationconsistsofacombinationofU.S.No.1andU.S.No.2tomatoes:Provided,thatat least60percent,bycount,meettherequirementsofU.S.No.1grade.


• Basic requirements:Similarvarietalcharacteristics;Mature;Notoverripeorsoft;Clean;Welldeveloped;Reasonablywell-formed;and,Notmorethanslightlyrough.

• Free from:Decay;Freezing injury;and,Sunscald.Notseriouslydamagedbyanyothercause.


• Basic requirements:Similarvarietalcharacteristics;Mature;Notoverripeorsoft;Clean;Welldeveloped;and,Maybemisshapen.

• Free from:Decay;and,Freezinginjury.Notseriouslydamagedby:Sunscald.Notveryseriouslydamagedbyanyothercause.

Provision Concerning Sizing

Sizingisdeterminedbythemaximumdiameteroftheequatorialsectioninaccordancewiththefollowingtable.Theprovisionshallnotapplyto“cherry”tomatoes.Theminimumsize issetat35mmfor“round”and“ribbed”tomatoesand30mmfor“oblong”tomatoes:

Table 2.ProvisionConcerningSizingbyUSDAParameters

Table 3.ProvisionConcerningSizingbyUSDAParameters


9

Size Code Diameter in mm (minimum - Maximum)

0 ≤ 20

1 > 20 ≤ 25

2 > 25 ≤ 30

3 > 30 ≤ 35

4 > 35 ≤ 40

5 > 40 ≤ 47

6 > 47 ≤ 57

7 > 57 ≤ 67

8 > 67 ≤ 82

9 > 82 ≤ 102

10 > 102

SizeDesignations

Inches

Minimum Diameter Maximum Diameter

Small 2-4/32 2-9/32

Medium 2-8/32 2-17/32

Large 2-16/32 2-25/32

Extra Large 2-24/32


10

Moroccan tomatoesaremainlysold inEuropeansupermarkets fromOctobertoApril.Thereasonthattomatoesaresoldduringthisspecificperiod isthatMorocco ispartoftheEuro-MediterraneanPartnership.ThismeansthatitisabletoexportacertainquantityoftomatoestotheEUatareducedimportpriceduringthesemonths.MoroccoistheonlycountryintheworldtoreceivethisfavouredtreatmentinEurope.

TherearealsogrowingconcernsregardingthelackofanEU-UKtradedealandtheramificationsitmayhavetotherestoftheindustry.SincelittleprogresshasbeenmadeinthefirstthreeroundsofestablishinganEU-UKtradedeal,manymajorEuropeanagriculturalcompaniessuchasCopa,Cogeca,andCelcaahavestartedconsideringtherealitythatnotradedealwillcometofruitionbythecurrenttransitiondateonDecember31,2020,whichwouldmean,amongalistofothertradedisadvantages,thatEUproducesuchastomatoeswilllikelybehitbyUKtariffs.

Tomatoesmust first be harvested in themorning before beingtransported.After transportingandunloadingthetomatoes, theyarethengradedandsorted.Whenpreparedforexportthecontainersareprecooledandplacedincoldstorage.Theyaretypicallypalletizeduntiltheyneedtobetransportedoncemore,inwhichcasetheyareplacedinarefrigeratedtruckbeforeshipment.

Tomatoesarerelativelysensitivetotemperature,soduringcultivationtheymustbekeptatcertainoptimaltemperatures.Diurnaltemperaturesmustbe20-25°C,nocturnal temperatures 13-17°C,and14-18°Cforthesoil.Therelativehumiditymustalsobearound75%inordertohavefruitswithgoodgaugeswithoutcoloringdefects.Theyieldfallcanreach25%withasalinityofabout4g/l.Theimpactofsalinityismoreseriousonexportyields,followingthereductioninthefruitgauge.Tothisend,controloftheelectricalconductivity(EC)duringall thecropcycles isessential.

Whenstored,thetemperaturemustbe7-8°C,thehumidity90%,andtheviablestorageperiodisoneweek.Unripetomatoescanbeputinmorelenientsettings,wherethetemperaturecanbe9-10°C,thehumidity85to90%,andthestorageperiodfourtofiveweeks.

Main Trade Regulations

Supply Chain

Part II

Global Market Dynamics

2.1 Consumption

2.2 Production & Exports

2.3 Importsrs

Part. II 12


Consumption

Production & Exports

Theconsumptionoftomato-basedproductshasincreasedbyaround4%between2018and2019comparedtotheaveragelevelofthepreviousthreeyearsand increasedby8%compared to theprecedingyearaccordingtotheWorldProcessingTomatoCouncil.WesternEuropeandNorthAmericacomprised44%oftheworld’stotaltomatoconsumptionin2019,adropfromwhentheycomprised56%in2000.Thereasonforthisshift isthatwhileregions likeNorthAmericaandWesternEuropehaveslightly increased inconsumption,emerging regionshavealsosignificantly increasedtomatoconsumption,surpassingNorthAmericaandWesternEuropein2007.

Overall, theconsumptionoftomatoeshasrisen.Thisoveralltrendhasbeenlinkedtothehealthbenefitsoftomatoes.Forexample,23%moreconsumersin2019withintheUSareprioritizingveganandsustainabledietscomparedto2018.

Despitesomeanticipateddifficulties,theoutlookforMexicantomatoesthisseasonhasbeenmostlyoptimistic,withproductionandexportsrecordingsignificant increases inthefirsthalfof2020.Thesituationfortomatoes inSpain,however,hasbeentoughasproducersshifttoproducingothergreenhousevegetablesand the influxofMoroccantomatoeshasdecreaseditsprominenceintheEuropeanmarket.WhileTurkishproductionshavebeen fairlygood,considerably lowpricesandhurdlesfromCOVID-19andexportingtoRussiahaveposedsomechallengesforthetomatosector.

TheEUhasalsoimplementedregulationsdetailingmeasurestopreventthe introductionandspreadof theTomatobrownrugose fruitvirus(ToBRFV)onAugust22,2020.Theregulation includesstrictmeasuresforseedsandplantmaterialregardlessoftheiroriginandforproductionsitesthathavebeentestedtobevirus-free.VarietiesofCapsicumspp.thatareresistanttothevirusareexemptfromtheregulation.Thetestingwillbedoneviareal-timePCRandthatthefrequencyofsamplingandtestingforindividualseedsandplantsshouldnotbelowerthan20%.TheregulationwillbemaintaineduntilMay31,2022.

Part. II

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Table 4.Top8Countries,AggregatedTotalExportValueofTomatoesforFiveYears(HSCode:0702)(USDthousand)Source:ITCTradeMap


Mexico

Production Trends & Seasonality

Mexicoiscurrentlythe9thhighestproduceroftomatoesintheworld,holding2.3%oftotalproductionandproducing4.56millionmetrictonsoftomatoes in2018.Productionhasgrownsubstantiallyoverthepastseveralyears, increasingby23.6%since2012.Somedifficulties thesectorisfacingduetoCOVID-19isalackofsupportfromthestateandfederalgovernmenttowardstomatoproducersinthestateofOaxacahasforcedproducerstoabandontheirtomatoproduction.

TheCherryandRoma/Saladettetomatovarietiesareinharvestseasonall-year-roundinMexico.Grapevarietiesarecurrently inseasoninthebriefperiodofJulytoAugust.TheRound/Ballvarietiesarecurrentlynotinseason,withharvestseasonoccurringfromDecembertoMay.

Export Trends

Mexicoisthelargestexporteroftomatoesintheworld,holding23.8%ofthetotalexportvaluein2019andexportingaroundUSD2.15billionworthoftomatoes.MexicoexportspredominantlytotheUS(99.7%),takingupmorethanhalfoftheUStomatomarketshare.

Exporters Exported value in 2015

Exported value in 2016




World 8465212 8724565 9055399 9555080 904231

Mexico 1813882 2133256 1955480 2298856 2154855

Netherlands 1707735 1724709 1959851 1933117 1967586

Spain 1081780 1070180 1139341 1097631 1031800

Morocco 528500 511816 580423 684872 765162

France 348804 355142 380380 367200 381476

Canada 313209 372988 414580 413372 379228

Belgium 290282 284867 303741 287479 305876

Turkey 365226 239880 290138 289827 303071

Part. II

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Production & Exports in 2020

AccordingtotheBankofMexico,tomatoeshavesomeofthehighestdemandsofMexicanagri-foodproducts,withUSD1.398Mofsalesinthefirsthalfof2020.Tomatoesalsorecordedthemostsignificantmonthlyincrease inproductionamongMexicanagri-foodproductsatayearlyrateof78.6%.Theexportsoftomatoesincreasedby20.96%duringthisperiod.

Spain

Production & Seasonality

Spain istheeighth largestproduceroftomatoesworldwide,producing2.8%ofthetotalproductionin2017,or5.16millionmetrictons.Inaddition,theyarealsothelargestproduceroftomatoesintheEU.Thoughthey’veincreasedproductionby27.6%since2012, theyhavedecreased inproductionby1.3%from2016.

ThisJulytheEUpredictedthattheproductionoftomatoesinSpain in2020woulddropby7%sincelastyear.ThisisasSpanishproducersareswitchingtoalternativegreenhousevegetablesthataremoreprofitablethantomatoes.SalesoftomatoesinAndalusia,oneofthetopproducingregions,wasreportedlyatalower408millionduringthefirstfivemonthsof2020.

Thecherryvariety iscurrently inseason,betweenthemonthsofJulyandDecember.Roundvarieties,plumvarieties,andpearvarietiesarealsoinseason,fromJulytoNovember,JulytoSeptember,andAugusttoSeptemberrespectively.

Price Trends

Prices fordifferentvarietiesof tomatoacrossSpainaregenerallyrising,whichis likelyduetotherecentdropinproductionin2020duetoacombinationofbothCOVID-19and tomatoes facingmore localcompetitionamongstfarmers.

Part. II

15

Graph 2.WholesalePriceofTomatoesinSpain(EURperkg)Source:Tridge

Table 5.Top10Countries,AggregatedtotalexportvalueoftomatoesforfiveyearsfromSpain(HSCode:0702)(USDthousand)Source:Tridge


Export Trends

Spainisthethird-largestexporteroftomatoesworldwide,holding11.4%ofthetotalexportsharein2019withUSD1.03billion.Whilethecountryexports lessthanMexico, itsreach isfarmorespreadout.TheyhaveexportedmorethanUSD1millionworthoftomatoestowards28differentcountries,andofthose28,fourdifferentcountrieshaveimportedmorethanUSD100millionfromSpain.However,everysingleoneofthese28countriesislocatedwithinEurope;noneofthesecountriesareinNorthAmericaorinAsia.

Importers Exported value in 2015





World 1081780 1070180 1139341 1097631 1031800

Germany 285120 324149 326090 298285 273830

France 140896 133714 141842 152939 136455

United Kingdom 164668 152229 154835 143943 130946

Netherlands 123777 125247 135020 126719 109381

Poland 59804 61759 66786 77848 76552

Italy 42618 28795 45607 35369 45090

Sweden 41149 40664 40131 35466 35136

Portugal 22811 23200 28448 28234 25159

Czech Republic 24075 23951 23268 24344 21676

Denmark 16736 18008 21709 22190 20478

Part. II

16


Challenges of the Spanish Tomato Industry

AlthoughSpain is amajorexporterof tomatoes, it also importsaconsiderableamountfromMorocco,whichtakesup42.5%ofSpain’simports.Overtherecentyears,exportsoftomatoestoSpainhavebeenincreasing,risingbyapproximately40%since2015and14%between2018and2019alone.

This falls in linewith the announcement from the associationoforganizationsofProducersofFruitsandVegetablesofAlmeria(locatedinAndalucia,oneofthemainproducingregionsinSpain)inJulyof2020,thatexportsofMoroccantomatoesto theEUhaveexceededthoseexportedfromAlmeriaforthefirsttime(417,826vs486,878tons).Tomatoexportsfor lastseasonwitnessedadecreaseof12%forAlmeria,a5%decreaseforSpainnation-wide,andan8%increaseforMorocco.

ThisisespeciallytroublingforSpainasAlmeriaistheonlyregioninSpaininwhichtomatoexports to theEUhave increasedby4% in the lastdecadevsExportsfromMoroccoupby66%inthesameperiod.Tomatoproductionrequiresalotoflabor,andMoroccanproductsarebelievedtohaveacompetitiveedgeinexportingtoEuropewithlowercosts.

Morocco


Moroccoisonlythe17thlargestproduceroftomatoesworldwide,holdingonly0.7%oftotalproductionwith1.29millionmetrictonsby2017.Theyarearoundthethird-largestproducer inAfricabehindEgypt,holdingclosepositionswithTunisia,Algeria,andCameroon.Theyhavegrowninproductionslightly,increasingby6.1%since2012and5.1%between2016and2017alone.TheproductionofgardenproduceinMorocco,includingtomatoes,hasoverall increasedbyover8%duringtheCOVID-19periodthisyear.

EarlyagriculturalyieldsforexportsgenerallytakesplacebetweenAugustandMarchinMorocco.ThosedestinedforinternalmarketsarecultivatedbetweenFebruaryandSeptember.

Part. II

17


Price Trends

Whilenoofficialpricetrendscanbefound,accordingtoaninsight,

Moroccanagriculturalproductshavehadstableprices inWestAfricanmarkets,notexceedingUSD1.71perkg.

Moroccan Tomato Exports Expected to Rise Further

Moroccoonlyholds8.4%ofthetotalexportmarketoftomatoeswithUSD765millionworthofexports,butthisstillclassifiesMoroccoasthefourthlargestexporteroftomatoesworldwide.TheamountoftomatoesexportedfromMoroccohasincreasedby44.7%since2015andby11.7%from2018to2019alone,makingMoroccooneofthefastest-growingtomatoexporters in theworld.Theyarealsothe largestexporteroftomatoesinAfrica.

Small-diameter tomatovarietiessuchascocktail, cherryandplumtomatoesnowaccount for35%ofexportdeliveries.Sincecherrytomatoesare lessaffectedbyrestrictionsconcerningminimumentrypricestoEurope,theygainedimportanceinMoroccanexports.

Morocco’smainexporttargetfortomatoesarecountrieswithintheEU,andtheirmostpopularcustomer isFrance,whichmakesup60.6%ofMorocco’stotalexportvaluein2019.Inparticular,theUnitedKingdom,Spain,andtheNetherlandshavesubstantiallyincreasedtheirimportsofMoroccantomatoes.

Due toCOVID-19,UK’s fruit andvegetable imports fromMorocconoticeablydecreasedin2020,downby15%.UKimportsofMoroccantomatoes,however,havebeenonagenerallyincreasingtrend,risingbynearly3timessince2015andbyalmost50%between2018and2019alone.

ThegrowthofMoroccantomatoexportstoEuropeanditsneighboringregionshascompelled theEurasianEconomicUnion,consistingofcountriessuchasArmeniaandKyrgyzstan tourgeRussia tohaltordecreasetomato imports fromMoroccoandTurkeyfor twomonths,claiming“unfaircompetition”inthemarket.

Moroccan tomatoesaremainlysold inEuropeansupermarkets fromOctobertoApril.Thereasonthattomatoesaresoldduringthisspecificperiod isthatMorocco ispartoftheEuro-MediterraneanPartnership.Thismeansthatitisabletoexportacertainquantityoftomatoestothe

Part. II

18


EUatareducedimportpriceduringthesemonths.Moroccoistheonly

countryintheworldtoreceivethisfavouredtreatmentinEurope.

Turkey


Turkeyisthethird-largestproduceroftomatoesintheworld,producing7.0%oftotaltomatoproductionwith12millionmetrictonnesin2019.Thecountryhasgenerallybeengrowinginproduction,havinggrown12.3%since2012and1.2%between2016and2017alone.3.5millionoutof12millionmetrictonnescomefromgreenhouses,enablingTurkishsupplierstoextendtheirharvestingseasonfromaroundAugusttothe latefallperiod,a30%extension.Additionally,30%of it’sproducedtomatoesareused for tomatopaste.MajorvarietiesproducedbyTurkeyarevineandroundtomatoes,whilecherrytomatoesaremainlyconsumeddomestically.

(1,000 metric tons)

2016 2017 2018 2019 2020e

For Retail 8,581 8,790 8,415 8,836 8,950

For Paste 4,019 3,960 3,735 4,006 4,150

Total 12,600 12,750 12,150 12,842 13,100

Cherry,Round,andCocktail tomatovarietiesarecurrently inseason,optimalforharvestaroundthemonthsofJulythroughSeptember.

Graph 3.WholesalePriceofTomatoesinTurkey(USDperkg)Source:Tridge

Part. II

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Price Trends

Therehavebeenfluctuationsandadecline inthepricesoftomatoesacrossTurkey.Thereasonforthis is largelycreditedtouncertaintiesarisingfromacombinationoftheCOVID-19pandemicandagricultural-relatedillness,impactingproductionandtransportation.Asaresult,therearecurrentlyongoingregulationstosavethetomatoindustryinTurkey,includingputtingharsherregulationsonfactoriesthatpressurefarmerstosellatlowprices.

Export Trends

Turkeyistheeighth largestexporteroftomatoesintheworld,holding3.35%of thetotalexportmarket. IthasaverywiderangeofexporttargetsthatrangefromcountriesinEuropeandthoseintheMiddleEastsuchasIsrael,Iraq,andSaudiaArabia.

Turkey’sbiggestexportmarket isRussia,takingupapproximately28%oftheexportshare.Therestofthecountry’smajorexportmarketsalsoconsistofcountriesinrelativelycloseproximitysuchasRomania,Ukraine,andIsrael.

TurkeyhasbeenmakingeffortstoincreaseRussia'simportquotawhichiscurrentlyat200Ktons.AccordingtoanannouncementbytheWesternMediterraneanExporters’AssociationinJune,TurkeyiscontinuingtalkswithRussiainordertohavethequotaremovedentirely.

Importers Imported value in 2015

Imported value in 2016




World 8513837 8781318 9150958 9464204 8924575

United States of America

2030234 2362853 2272435 2486067 2420263

Germany 1303972 1313856 1484980 1499794 1398469

France 620018 638577 705235 701285 704362

United Kingdom 646292 613629 671772 700166 648491

Russian Feder-ation

659257 490582 558745 629841 636650

Netherlands 245593 302965 339704 319279 320647

Canada 312924 350326 332797 321128 305569

Poland 175052 161740 201807 242255 244767

Italy 156886 118933 156327 146084 171332

Table 6.Top10Countries,Aggregatedtotalimportvalueoftomatoesforfiveyearsworldwide(HSCode:0702)(USDthousand)Source:Tridge

Part. II

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United States

TheUnitedStatesisthelargestimporteroffreshtomatoesintheworld,holding27.1%ofthetotal importmarket in2019withUSD2.42billionin importvalue.Since2015,theimportvalueofUStomatoeshasbeensteady,neverdeviatingmorethan7%eachyear.

OftheUSD2.42billiontheyimport,85.7%ofthetomatoescomefromMexico.However,therelationshipbetweentheUSandMexicoregardingtheexportandproductionoftomatoeshasbeenhistoricallyfilledwithtension.Though theUS isnota top tenexporterof tomatoes, it isthesecond-largestproducerof thefruit,a resultcausedbythehighconsumptionrateof20poundsoftomatoesperpersonperyear.Thismeansthatdespitehighproduction,theUSmust importasignificantamountoftomatoesaswellinordertosatisfydemand,whichinturnhascreatedasituationwhereahighvolumeofUSfarmersmuststronglyanddirectlycompetewithMexicanfarmers.

ThiscompetitionhashistoricallybeenunfavourableforUSfarmersasMexicantomatoeswouldfrequentlybesoldatprices

claimedtobe lessthanthefairUSmarketvalue,otherwiseknownas“dumping.”Inordertoeventheplayingground,theUSimplementedtheTomatoSuspensionAgreementwithMexicoin1996wheretheCommerceDepartmentcouldsuspendantidumpingdutiesorinvestigationoncertainexports.Thisagreementwasexpandedthreemoretimesin2002,2008,and2013.

Themostrecentversionofthisagreementwassigned inSeptember2019withtheprimarydifferencebeingthatallRoundandRomatomatoesaswellasGrapetomatoes inbulkmustbe inspectedforqualityandconditiondefectsnear theborder,aclausedesignedtoprotectUSproducers frombeingundercutonpricescausedby the importoflow-quality tomatoes.Thedealhasbeenmetwithsomedegreeofcontroversy,withmanypraisingtheagreement’sabilitytosupport localfarmersbycombattingdumping,withmanyothersclaimingthat theadded timeand resourcesspentonperformingmore investigationswill notonlycostmore thanUSD200millionup frontperyear fortomatoesalone,butalsonegativelyaffecttheeconomicimportsofotherproducesuchasavocadosandcitrusfruitsbyinterferingwithexistinginvestigationsfortheseproductswhichareunanimouslyconsideredtobenecessary.

Imports

Part. II

21


Germany

Germanyisthesecond-largestimporteroftomatoesintheworldandtheonlyothercountryasidefromtheUStohaveimportedmorethanUSD1billionworthoftomatoes,comprising15.7%ofthetotal importshare.TomatoesarealsoGermany’s largest imported freshcrop,putting itaheadofcucumbers,carrots,andonions.TheNetherlandsisGermany’slargestsourcingdestination, takingup57.7%ofGermany’sUSD1.39billionimportvalue,followedbySpain,Belgium,andMorocco.GermanyprimarilyimportsfromotherEUcountriesandgenerallydoesnotimportfromAsiancountries.TurkeyandMacau,Chinaareexceptions,butthelatterofwhichhasnotexportedmorethanUSDonemillionsince2017.SpainandtheNetherlandstakeupthebulkofGermany’stomatoimports,togethercomprising83%ofGermany’stotal imports.WhileGermanyisnotapopulartargetforexportingfreshItaliantomatoes,Italystill isthelargestsourcingdestinationforGermanyinimportingprocessedtomatoproductsliketomatopasteandcannedtomatoes.

France

France is thethird-largest importerof tomatoes in theworld,havingimported7.89%ofthetotal importshare in2019atanexportvalueofUSD0.704billion.Thecountryisuniqueinthatitissimultaneouslybothatop-fiveexporterand importeroftomatoeswhilenotbeingamajorproducer.Infact,itproducedonlyamere0.4%oftotaltomatoproductionin2017.UnlikeseveralotherEuropeancountrieswhoselargestimportingcountryof tomatoes isanotherEuropeancountry,France’s largestimporteroftomatoes isMorocco,whichcomprised63.8%ofFrance’stotalimportvaluein2019.

United Kingdom

TheUnitedKingdomisthefourth-largest importeroftomatoes intheworld,comprising7.26%oftheglobal importvalue in2019,totalingtoUSD0.648billion. Itsharessimilar import levelstotwootherEuropeancountries,FranceandRussia.Morethan80%oftheUK'stotal imports

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come fromotherEuropeancountries,with the remaining tomatoesprimarilycoming fromMorocco, theUK’s third-largest importeroftomatoes.

Since little progress hasbeenmade in the first three roundsofestablishinganEU-UKtradedeal,manymajorEuropeanagriculturalcompanieshavestartedconsideringtherealitythatnotradedealwillcometofruitionbythecurrenttransitiondateofDecember31,2020.

AccordingtoastatementmadeinapressmeetinginSeptember2020bytheUK’sformersecretaryofstateforinternationaltradeLiamFox,theUKmaylooktoincreaseimportsevenfurtherfromMorocco,orthe“gatewaybetweenAfricaandEurope.”

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Sources

Tridge.DomesticPrices

Tridge.Production.

Tridge.Guides

ITCWorldTradeMap

TheTomatoNews.

BlueBookServices.“Tomatoborderinspections:Sofar,sogood.”

ForbesMexico.Translated:“BeerleadsMexico’sagri-foodsurplusinthefirsthalfof2020.”

GlobalTrade.“ImportedTomatoesFromMexicoHaveSomeUSGrowersSeeingRed.”

LaVozDeAlmería.Translated:“Alertinthefield:thetomatoofMoroccosurpassesforthefirsttimethatofAlmería.”

MoroccoWorldNews.“FormerUKMinister:MoroccoistheBestGatewayBetweenAfricaandEurope.”

TheProduceNews.“USDepartmentofCommercefinalizesTomatoSuspensionAgreement.”

2020 industry report: tomato

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