Market Update

Market Snapshot*

The U.S. Department of Agriculture was reporting the following prices on tomatoes:

Mexico (through Nogales, Ariz.): Two-layer flats, vine-ripes, sizes 4x4s and 4x5s, mostly $7.95-8.95; 5x5s, mostly $6.95; 5x6s, mostly $5.95-6.95. One- layer flats, greenhouse, size 22s, 28s and 32s, mostly $8.95-10.95; 35s, mostly $7.95-8.95; 45s, $5.95-6.95.

South Florida: 25-pound cartons of loose mature-green tomatoes, U.S. No. 1 Grade, size 5x6s, 6x6s and 6x7s, $17.95; U.S. No. 2 Grade, size 5x6s, 6x6s and 6x7s, $15.95.

* Prices from the USDA's Fruit & Vegetable Market News, Jan. 20.

The Shipping Scene

An extended freeze has knocked out an estimated 70% of the Immokalee, Fla., winter tomato crop, causing buyers to scramble to fill their needs until the state's growers can raise another crop. Meanwhile, limited supplies still should be available out of Florida, and greenhouse operations in Canada and the U.S. as well as growers in Mexico are trying to fill the void.

"There is some product still available," said Jerry Williams, general manager at Birmingham, Ala.-based Flavor Pic Tomato Co. Inc., which sources from Florida at this time of year. But there will not be nearly as much Florida volume as usually ships at this time of year.

This week, growers still were shipping tomatoes that had been put in gas rooms to color up. Those should be gone by next week, however.

"There won't be any significant volume coming out of Florida until they replant and get things going back in the right direction," Williams said. That likely will be sometime in April.

Lower volume has resulted in higher prices, which, in turn, have slowed demand from some retail and foodservice buyers, he said.

Prices next week might depend on volume from Mexico and other sources, he said.

Volume out of Mexico should be good.

"We're really going strong," said Mark Munger, vice president of marketing for San Diego-based Andrew & Williamson Fresh Produce, which has growing operations in Baja California and mainland Mexico.

About 80% of the company's tomatoes are committed before they're even planted, he said, but he added that, "We still have a fairly significant share of open product, as well."

Andrew & Williamson currently is transitioning from its Baja California deal to Culiacan in the Mexican state of Sinaloa. There, most of the firm's round tomatoes are grown in shade houses and most of the grape and roma tomatoes are field grown.

Weather in Culiacan has been optimal - "fantastic conditions for really high quality" - he said.

The loss of tomatoes from Florida has "definitely strengthened the market," he said, but he added, "I don't think the market has gone crazy."

A number of shippers based in Nogales, Ariz., also offer tomatoes from Mexico, and Allison Moore, communications director for the Fresh Produce Association of the Americas, said supplies should continue.

"Shippers of Mexican tomatoes have product available to service customers across North America," she said. "It is important for us that the supply chain continues to move fluidly and that consumers continue to find tomatoes on foodservice menus and in the grocery stores."

Greenhouse growers also have tomatoes available.

Kingsville, Ontario-based Mastronardi Produce Ltd. ships tomatoes year-round and is experiencing strong demand for its greenhouse-grown Campari, Splendido, Kumato and Romana varieties as well as beefsteak tomatoes and its signature One Sweet cherry tomato, said Chris Veillon, director of marketing.

Besides its Canadian operation, the company has growing facilities throughout Mexico and Central America, he said. The firm now is shipping tomatoes out of Mexico.

In Willcox, Ariz., "Supplies are good," said Mark Cassius, vice president of sales for Eurofresh Inc., "but I wouldn't say they're plentiful."

That's because winter greenhouse production is not as strong as spring and summer production because of shorter days and less sunlight.

The company's tomato line includes Campari, roma tomatoes-on-the-vine and the firm's popular Bella Bites grape-like tomato.

Delta, British Columbia-based Houweling's Hot House, which has a growing operation near Oxnard, Calif., also offers a variety of greenhouse-grown items, including grape tomatoes, strawberry tomatoes and yellow and orange tomatoes-on-the-vine, said Kirk Homenick, director of sales and marketing.

Houweling's products are available through Vancouver, British Columbia-based The Oppenheimer Group and other marketers.

(By Tom Burfield, Western correspondent for The Packer. The Packer and Red Book Credit Services are part of food360º, a division of Vance Publishing Corp., Lincolnshire, Ill.)

Resources

January 22, 2010