CTGA Tomato Bulletin

September 28, 2006

Dear Tomato Grower:

In the current Tomato Bulletin:

Industry running at roughly 60% capacity with a couple plants scheduled to close this weekend.
Processors and Growers scramble to find sound fruit.
United Potato Growers success highlighted in Wall Street Journal.

2006 Harvest Update (through PTAB’s Sep 30 Estimate):

Harvest projected to reach 8.6 million tons by Saturday September 30.
Harvest at 87% of 7 yr average which is a modest improvement compared to previous weeks, but still trails by 1.3 million tons.
Expect weekly processing rates to continue to slip going forward.
One processor reported to be paying $70 for “uncommitted” tonnage in addition to the $40 per box Roma market are making field staffs nervous.
9.5 million ton harvest projection still stands and there’s no hurry to establish a 2007 price since crop may even get smaller.

Processors and Growers seek sound quality fruit:

A common refrain across the valley is “we’re waiting for fields to ripen”. Fruit planted in late May should be ready, but it may take another 2 weeks. Split sets have aggravated the situation presenting growers with the quandary of whether to harvest what’s ripe or try to capture more tonnage when the green ripens – most report that they capture mold, but few extra net paid tons…several processors have relaxed green discounts in order to encourage growers to capture all the red tomatoes possible. The variations on the discount include the following:

· 0 x green to 3%; if > 3% .5 X green to 5%; if greater than 5% 2X green

· 0 x green to 3%; if > 3% .5 X green to 6%; if greater than 6% 2X green

· 1 x green with no cap and green does not count against contracted delivered tonnage

The flexibility of the processors helps growers maximize their yield of ripe fruit, but it does reinforce the contention that the standard green discount of “(1) When 2% or less, a deduction equal to the actual percentage of grass green; (2) When 2 1/2% or more, a deduction equal to two times the percentage of grass green” needs revision.

September 26 WSJ Article on the success of United Potato:

Please check http://online.wsj.com/article/SB115923613007373896-search.html which reports on the success of the United Potato Cooperative. United Potato has managed to return profitability to potato growers by effectively managing supply. In the past year, potato prices increased 48.5%. If the spud boys can organize thousands of growers across state borders, I don’t see why a couple hundred tomato growers within a few hundred miles of each other can’t get together.

Questions or comments please call (209) 478-1761.

Ross Siragusa

President/CEO