June 19 2006, 09:09

World tomato price are pressed by the dynamically growing tomato production and processing in China

According to information provided by "Agrooglyad: Vegetables and Fruits" journal, rapid growth of tomato production in Asian countries, such as China and Iran, led to significant competition growth for fresh tomatoes and tomato paste on world market. During past season this factor significantly influenced market prices.

As a result, the interest to tomato production has somewhat decreased in many countries this season, as the production cost continues increasing.

Despite of the reducing acreage, comparing to past year, tomato production can grow up to 2.3 mln. tons in Mexico that is the world largest exporter of fresh tomatoes. At the same time, according to preliminary estimations, tomato production is likely to remain on the same level of around 10 mln. tons in Turkey. However, tomato export from Turkey to Russia, Romania and Saudi Arabia is likely to substantially increase.

Tomato production is expected to reach a top record of 36.4 mln. tons in China; this forecast is based on demand growth for Chinese tomato paste on world markets and high inner prices for fresh tomatoes. Tomato production has been developing quite dynamically in Chili in recent years; still, acreage reduction and production decrease are expected to happen there. Chilean farmers consider fruit production to be more perspective and profitable business. The production of tomato paste is also forecasted to decrease soon in Chili.

According to preliminary information, tomato production in the EU countries may decrease as a result of profitability decrease of this business. Spain and Portugal have already announced about tomato acreage reduction. France will decrease tomato production on about 200,000 tons; this country normally produces 6 mln. tons of tomatoes. Significantly less tomato will be produced for processing needs, but more tomatoes will be grown for fresh market in France.

According to preliminary forecast of the Agricultural Marketing Project, an overall tomato production should increase 5% comparing to 2005 (excluding greenhouse tomatoes); gross production will reach 1.4 mln. tons. However, cold weather in the beginning of the production season can change significantly these forecasts. In the nearest future this prognosis can be reconsidered in respect of its decline. At the same time, greenhouse tomato production continues growing in Ukraine that is caused by high prices for this product and a good demand on Ukrainian market.