CTGA Tomato Bulletin - January 9, 2004

January 9, 2004

Dear Grower:

CTGA’S 57TH ANNUAL MEETING – JANUARY 21
The California Tomato Growers Association, Inc.’s Annual Meeting of the Membership will be held Wednesday, January 21, 2004 at the Doubletree Hotel in Modesto. R.S.V.P. at 209-478-1761 by January 12, 2004.

8:00 – 11:00 a.m. U.C. San Joaquin Valley Tomato Day
11:00 – 12:00 p.m. Over 30 Vendor Displays
12:00 – 1:30 p.m. CTGA Annual Meeting Luncheon
Guest Speaker – Ken McCorkle,
Senior VP and Manager of the Agriculture Industry Group, Wells Fargo Bank
“Processing Tomatoes in California – Present and Future”
1:30 – 2:00 p.m. Vendor displays
2:00 – 3:15 p.m. CTGA Annual Meeting to include the
introduction of the CTGA Board of Directors, comments
by the Chairman of the Board, Don Cameron, and
President/CEO Ron Schuler will present the report
from The Hale Group and 2004 pricing activity.

Achieving CTGA Price Objective for 2004 is Questionable
Following meetings with processors representing over 85% of the industry, the outlook to reach CTGA price objective looks questionable even though California had a short crop and world supplies are down by all reports. Companies representing the brands all express inability to raise prices and hold market position with Wal-Mart and other major retail chains. Other companies say that term contracts at specific prices, along with the market situation facing the “brands,” is keeping the lid on all pricing. One major brand said that they would be “delisted” by Wal-Mart if they raised prices on their products. You may have heard that Wal-Mart is opening 278 new stores in 2004. Where is this leading our industry for the future? Other considerations: growers continue to sign contracts at less than CTGA price, regardless of where it settles out, and cotton and rice markets look good for 2004 so we have a mixed bag facing the tomato growers.

New CEO Coming February 1
The search committee has selected a new President and CEO for the Association. He will be introduced to the membership and industry at the Annual Meeting, and will officially come on board February 1, 2004.

Vendor Exhibitors Featured at Annual Meeting:

Actagro, LLC	Ag Credit of California	Agri-Valley Irrigation, Inc.
American Ag Credit	Auto Farm	Bank of the West
Bayer Crop Science	Beeline Technologies, Inc.	California Masterplant
CA Foundation for Ag in the Classroom	Dupont Company	Engelhard Corporation
George W. Lowry, Inc	Golden State Irrigation Service	Growers Transplanting, Inc.
Holt of California	Hydro Agri North America	Netafim USA
Precision Farming	Pro Ag	Sacramento Valley Farm Credit
San Joaquin Equipment Co.	Seminis Vegetable Seeds	Sun-Guard Chemical Co.
Sunplot Grower Solutions	Sutera	T-Systems
Trinkle Ag Flying, Inc.	TS & L	Ultra Gro Plan Food Company
Western Farm Service, Inc.	Western Growers Association	Wilcox Agri Products, Inc.
Yosemite Farm Credit

IF YOU ARE NOT ON THE LIST AND WOULD LIKE TO EXHIBIT, IT IS NOT TOO LATE. CALL IN YOUR REGISTRATION TODAY!

Processors Say No to Industry Marketing Order Concept
The California League of Food Processors has reported back to the CTGA that interest is lacking by processors in joining with producers to develop a Marketing Order for new product research, health benefit research and promotional efforts on health benefits of processed tomatoes. Processors, along with the CTGA, will review the future role of the “National Association of Growers and Processors for Fair Trade” at the organization meeting on February 2, 2004 in Sacramento.

Foodnews Reports – Long Talk Short Supply
Kathy Miller of Foodnews reports that “the global tomato paste market is one of the most volatile in the world. When Italian supplies run short, and China fails to deliver on promise, chaos is assured.” China, Italy and the U.S. all had short 2003 crops. Chile (Feb. 2004 harvest) will benefit at prices US $700 – 710 per ton up from US $650 – 680 per ton. Turkey had a good crop in 2003. “In total, the world processed 26.5 million short tons out of 29 million tons contracted. But there is another problem: worse processing yields, which mean an extra cut in output estimated at 5 – 10%. So stocks will be negative again for the start of the next crop. Probably 15 – 20% of the 2004 crop will have to be committed to supply 2003 contracts pending quality.”

See You on January 21st, and Best Wishes for a Successful 2004
CTGA Staff