CTGA Tomato Bulletin - September 17, 2002

September 17, 2002

Dear Grower:

Italians Experiencing Disastrous Tomato Harvest
Italy, the world’s second largest processing tomato producing nation is experiencing the worst harvest in the past 30, 40 or perhaps in the last half century according to an article published in the September 6, 2002 issue of the Foodnews.

The Article reports that it has rained every day since August 24th and one processor remains closed while other are operating at only 20% of capacity. The problem is that the fields are not able to dry adequately to allow harvest equipment to operate. The portion of the crop that lay on the ground has become rotten, split and contaminated with dirt. The report goes on to say, “Farmers are also reporting fungal and bacterial diseases spreading among the tomatoes, while canners are said to be having problems with Ph levels.”

According to Reuters report last week the Italian government has declared a state of emergency in the northern region. Growers are now saying that the weather in southern Italy is worse than in the north. The bulk of the plum tomatoes used for the peel pack are grown in the south as they are more susceptible to heavy rains. Canners were hoping to salvage the year with a good finish to the season but on September 9 heavy flooding was reported in southeast France in the Cotes du Rhone region sending more bad weather in the direction of the already saturated Italian tomato crop. Depending on how the season plays out estimates are that the Italian crop will be off between 20% - 40%. Italian canners’ intentions for the 2002 year were to produce 4.7 million metric tons of tomatoes for processing.

As might be expected the markets are in disarray as the Italian canners are unable to make price offerings for paste or canned tomatoes. According to the Foodnews article one major canner said, “I don’t expect there to be prices again for three weeks, but they will be much higher that those quoted only a couple of weeks ago.” There have been discussions about prorating customers and in some cases about renegotiating contracts to higher price levels. In response, Italian growers are now receiving 33% more for their fruit than they did one year ago while the negotiated price called for an increase in the 5% range.

Other Producing Regions
The Foodnews reports rains are also causing problems in Greece. According to one major grower the rains are not as bad as in Italy but it is the worst season he has known. The fruit is not ripening as quickly as normal so growers must decide to harvest a large percent of green fruit or risk total loss from future rains. Greece was expected to produce 1.05 million metric tons for the 2002 season.

Reports from Spain and Portugal are that they are having good crops and should reach their intentions of 1.5 million metric tons and 950,000 metric tons respectively.

China, on the other hand, experienced early season high temperatures which are reported to have drastically cut its paste supplies. European buyers who already account for nearly 40% of all of China’s tomato paste exports are now looking to purchase more to shore up domestic shortfalls. Buyers are finding short supplies and increasing prices. It is expected that China will process 2.0 million metric tons from original intentions of 2.5 mmt.

Tomato Product Pricing
Tomato product pricing has improved in every category since last year except industrial diced tomatoes and pizza sauce which have remained the same and industrial tomato paste which has slipped .01¢ per pound. Given the harvest news on the international front it would appear that there will be ample opportunity to improve the picture of these products as well.

The following chart is taken from the September 9, 2002 issue of the Food Institute Report.

	Current	Year Ago
TOMATO PASTE (F.o.b. CA)
48/6-oz.	11.50 – 12.50	11.00 – 12.00
6/10	17.50 – 19.50	17.00 – 18.75
Hot & Cold Break 31% NTSS (Brix)
55 Gal. Drum, $/lb.	0.30 – 0.32	0.31 – 0.33
300 Gal. Drum, $/lb.	0.29 – 0.31	0.30 – 0.32
Cold Break 37% NTSS (Brix)
55 Gal. Drum, $/lb.	0.35 – 0.37	0.36 – 0.38
300 Gal Bin, $/lb.	0.34 – 0.36	0.35 – 0.37
TOMATO SAUCE (F.o.b. CA)
48/8-oz. Sauce	7.50 – 8.25	7.25 – 8.00
24/300 Sauce	8.00 – 8.75	7.50 – 8.25
6/10 Sauce	9.75 – 11.00	9.50 – 10.50
6/10 Ex. Heavy Pizza Sauce	12.75	12.50
6/10 Super Heavy Pizza Sauce	13.25	13.25
6/10 Premium Catsup (34%)	13.00	13.00
6/10 Fancy Catsup (33%)	11.75 – 12.75	11.75
DICED TOMATOES (F.o.b. CA, $/case)
6/10 Diced in Juice	11.25 – 12.50	10.50 – 11.75
55 Gal. Drum, $/lb.	0.20 – 0.22	0.20 – 0.22
300 Gal. Bin, $/lb.	0.19 – 0.21	0.19 – 0.21

Crop Update
The 2002 California processing tomato crop has rounded third base and is headed for home. The Processing Tomato Advisory Board (PTAB) is estimating that California will process 862,000 tons for the week-ending September 21, bringing the state’s total to 9,240,000 tons delivered by weeks end. This puts us slightly behind the 2000 season where we packed 10.3 million tons. However, it appears that we will finish the 2002 season a little stronger, processing more tons per week in the final weeks of the season. During the mid-season time period processors were slowed due to lagging maturity and green fruit, the result of a mild summer. It is expected that processors will extend the season slightly to achieve a full pack.

The late crop has been a pleasant surprise producing good quality and higher yields than expected. As they say in baseball it is not over until the fat lady sings which should be sometime around mid October.

DELIVERED, CERTIFIED PAID-FOR PROCESSING
TOMATO TONNAGE

	2002	2002	2001	2001	2000
	WEEKLY	CUMULATIVE	WEEKLY	CUMULATIVE	CUMULATIVE
WEEK	NET	NET	NET	NET	NET
ENDING	TONS	TONS	TONS	TONS	TONS
UP TO
6/29/2002			1,495	1,495	29,114
7/6/2002	23,890	23,890	38,945	40,440	179,663
7/13/2002	351,145	375,035	282,850	323,290	733,022
7/20/2002	777,360	1,152,395	490,194	813,484	1,511,014
7/27/2002	921,966	2,074,361	524,489	1,337,973	2,380,769
8/3/2002	943,599	3,017,960	637,188	1,975,161	3,302,734
8/10/2002	943,040	3,961,000	700,931	2,676,092	4,217,699
8/17/2002	919,691	4,880,691	769,821	3,445,913	5,131,105
8/24/2002	884,661	5,765,352	789,120	4,235,033	6,043,777
8/31/2002	873,821	6,639,173	796,298	5,031,331	6,973,232
9/7/2002	868,863	7,508,036	774,359	5,805,690	7,837,149
9/14/2002	*869,802	*8,377,838	755,306	6,560,996	8,682,497
9/21/2002	**862,973	**9,240,811	720,743	7,281,739	9,405,685
9/28/2002			648,529	7,930,268	9,937,544
10/5/2002			461,577	8,391,845	10,247,582
10/12/2002			205,228	8,597,073	10,280,499
10/19/2002					10,286,508
10/26/2002
11/2/2002

*estimated **projected

Attention Golfers!
CTGA's Annual Tournament Just Around the Bend
It’s not too late to register for CTGA’s 18th Annual Golf Tournament, scheduled for Monday, October 28th at the Elkhorn Country Club in Stockton, California.

Don’t miss out on this great chance for growers, processors, and allied industry to relax with a day on the links. The tournament’s $100 fee covers all green fees, cart rental, tournament scoring, drinks on the course, and a sit-down steak dinner and prizes.

Sign up today! Call the CTGA office at (209) 478-1761.

District Meetings
The CTGA’s annual district meetings have been slated for October offering growers an opportunity to learn about the latest developments that will shape the future of the industry. These post-harvest meetings will provide an ideal venue for growers to share their concerns and questions with CTGA’s management and board. These meetings are open to all growers and your attendance is strongly encouraged. There will be a CTGA-hosted meal and concludes with the business meeting.

Tuesday, October 15, 2002
12:00 p.m. to 2:00 p.m.
Harris Ranch Restaurant
I-5 & Highway 198 E., Coalinga

Tuesday, October 22, 2002
6:00 p.m. to 8:00 p.m.
Le Bistro Restaurant
3121 W. Benjamin Holt Drive, Stockton

Thursday, October 24, 2002
12:00 p.m. – 2:00 p.m.
Yolo Fliers
17980 County Rd., 94B, Woodland

John C. Welty
Executive Vice President

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