CTGA Tomato Bulletin

February 12, 2004

Dear Grower:

Price Agreement Nears
Negotiations are in the final stages with most processors agreeing to a $51.00 per net ton base price. In addition, this agreement calls for a $3.00 per net ton late season premium for either scheduled or delivered tons from September 15 through September 25. After September 25 the late season premium is $5.00 per net ton.

Processors negotiating with CTGA and processing at least 70% of the California tomatoes have agreed on the base price, with some still working on the solids and quality program, which we are asking to be close to a zero sum or zero based.

Not all contracts will be the same, which allows individual growers to evaluate the differences based on his own experiences such as harvest charges, hauling charges, and different MOT deduct schedules. The CTGA has achieved a $51.00 base price plus late season premiums.

Deduct Standards will include:
MOT	3 X % MOT
Grass Green	2.0% or less – Actual % Greater than 2.0% - 2 X % grass green
Mold	Actual % of mold
Worms	Actual % of worms
Limited Use	5.0% or less – 0% 5.5% - 8.0% – % above 5% 8.5% - 14.0% – 1.5 X % above 5% 14.5% and above – 2 X % above 5%

California Intention for 2004 at 11 Million Tons
The California Agricultural Statistics Service (CASS) announced canner intentions for 2004 at 11,000,000 tons on 291,000 acres, which is up 5,000 acres over 2003. This projects to 37.8 tons per acre (33.2 tons per acre in 2003), which would be the 3rd highest yield in history.

CLFP Releases U.S. Processed Tomato Supply & Movement

December	2002-2003	2003-2004	Percentage Increase/Decrease
Beginning Inventory (June 1)	3,518,082	4,395,968	+25.0%
Pack	11,656,820	9,770,617	-16.2%
Total Supply	15,174,902	14,166,585	-6.6%
Dec 1 Inventory	9,647,947	8,459,617	-12.3%
6 Month Disappearance	5,526,955	5,706,968	+3.3%
Monthly Disappearance	921,159	951,161	+3.3%

The California League of Food Processors reports an estimate of U.S. supply and demand based on processors handling 91% of the U.S. tonnage.

California Agricultural Statistics Service - Vegetable Review

U.S. Processing Tomato Acreage, Yield, and Production
State	Area Planted		Area Harvested		Yield Per Acre 1/		Production
	2002	2003	2002	2003	2002	2003	2002	2003
	Acres				Tons
California	296,000	289,000	291,000	274,000	37.99	33.77	11,056,000	9,252,000
Indiana	8,200	8,400	8,100	8,200	31.66	24.67	256,450	202,290
Michigan	3,300	3,200	3,200	3,100	35.00	38.00	112,000	117,800
Ohio	6,400	6,400	6,300	5,700	23.75	30.40	149,630	173,280
Other States 2/	3,200	2,830	3,200	2,720	25.86	24.54	82,740	66,740
UNITED STATES	317,100	309,830	311,800	293,720	37.39	33.41	11,656,820	9,812,110

1/ Yield per acre may not equal production divided by area harvested due to rounding.
2/ 2002 and 2003 --- MD, NJ, and PA.

� Ross Siragusa (new CTGA President & CEO) has been elected chairman of the National Association of Growers and Processors for Fair Trade (NAGPFT) at their annual meeting on February 2, 2004.

� Ron Schuler continues on in a consulting role to assist where needed to help Ross and the CTGA.

� Board Officers for 2004:

Chairman	Don Cameron, Helm, California
Vice Chairman	Jim Beecher, Five Points, California
2nd Vice Chairman	John Poundstone, Grimes, California
Secretary-Treasurer	Bruce Rominger, Winters, California

U.S. Processing Tomato Acreage, Yield, and Production