August 31, 2007

Dear Tomato Grower: 

In the current Tomato Bulletin: 

• USDA pegs the 2007 crop at 12.0 million tons
• Current heat wave and plant disease raise questions of whether the revised estimate is achievable
• Export prospects rated as excellent as China struggles filling its commitments
• Thanks to grower input DPR will exclude spray blade applications from current Vapam review

 USDA August 15 Revised Crop Estimate: 

• USDA revised its August estimate up 2% to 12.0 million tons with projected acres unchanged at 293,000.
• Projected yield is 40.96
• The 12 million figure was widely expected within the industry

PTAB Projects 989,000 tons to be processed this week.

• 2007 is keeping pace with previous large crops
• Weekly volume appears to be capped at 991,000
• Due to electrical problems and an unanticipated plant shutdown which makes the 989,000 projection unlikely

Creeping doubts about whether fruit will hold: 

Two weeks ago, there seemed little doubt that a 12 MM ton crop was in store. The following factors have caused several observers to question whether it is possible: 

• Poorer quality fruit being disked in the south
• Many fields are moving ahead of delivery curves while most processors are behind
• Several 100 degree plus days with abnormally warm nights is accelerating the deterioration  of the vine
• Fields in the center of the state are not yielding as well as other areas

On the other hand, given the attraction of running discounted surplus fruit, many processors will try to extend their pack plans.  

Export prospects brighten: 

Widespread reports of a Chinese contract defaults combined with smaller crops in Turkey and Italy have created excellent export opportunities for California processors. Inquiries are reported from Europe, Africa, Latin America and Asia. This should take some pressure off the projected building inventories. 

Welcome news from DPR: 

Following meetings, questionnaire submissions, Wolfsen’s in-field demonstration and active involvement by CTRI, DPR decided to exclude spray blade Vapam applications from new regulations until more field trials are done this fall. This has to be considered a victory since we won’t be lumped in with traditional shank or broadcast applications.  

We still have work to do with EPA and registrants, but we are definitely heading in the right direction. 

Questions or comments please call Ross Siragusa, President/CEO at 916-925-0225.

| Tomato Bulletins | Press Releases | Editorials | Archives |