CTGA Tomato Bulletin

December 18, 2003

Dear Grower:

CTGA Committee Meets With Processors
Negotiations are underway as the CTGA and its Negotiating Committee (Tom Braner, Don Cameron, Chuck Cox, John Poundstone, Bruce Rominger and Bob Williams) have been meeting with processors to discuss multiple-year pricing along with a term contract for tonnage on an acreage basis. Pricing would be adjusted depending on the size of the crop in order to try and keep acreage within the marketing arena for 2004 and beyond. The Association is seeking an early price so growers will know what to expect in light of an improved situation for competing crops like cotton, rice and almonds. Harvesting charges will be a key subject on the December board agenda.

Better Pricing For Spot Market Paste

The 2003 California tonnage sets the stage for a better 2004 as all reports coming in indicate a world shortage and significant price increases for spot market sales. The California 2003 crop was down 16.4 percent from 2002.

The Foodnews (Nov. 28th issue) reports “with very little uncontracted paste for sale on the open market, spot supplies are limited. The spot price for U.S. 30-32 brix paste in bins and drums respectfully has jumped by 10 percent to U.S. $0.31 – 0.32 per pound ex-factor, compared with U.S. $0.28 – 0.29 per pound in September.”

Note: Correction in the October newsletter—the 2003 tonnage was down 11.9 percent from pre season projection of 10,500, not 13 percent as reported.

Price expectations in Chile for top grade 30 – 32 brix from the 2004 harvest have jumped by 6 percent to U.S. $740 – 750 per ton FOB in drums compared to U.S. $700 – 710 per ton at the beginning of November. Production will start at the end of January.

CTGA's 57th Annual Meeting - January 21, 2004
The California Tomato Growers Association, Inc. would like to invite you to join us in our 57th Annual Meeting, held in conjunction with the Farm Advisor’s Northern San Joaquin Valley Tomato Day. The meeting will be held in Modesto on January 21, 2004 at the Doubletree Hotel, 1150 9th Street with registration beginning at 8:00 a.m. and vendor displays will be open at 9:00 a.m. for your viewing before and after the CTGA meetings. All growers are invited to attend the U.C.C.E. Northern San Joaquin Valley Tomato Day from 8:15 a.m. until 11:00 a.m. Our luncheon program will begin at 12:00 p.m. with keynote speaker Ken McCorkle, Senior Vice President and Manager of the Agricultural Industries Group of Wells Fargo Bank. His talk is entitled “Processing Tomatoes in California Today & In The Future”. Reservations are required.

We are featuring the following exhibitors for this event:

Actagro, LLC	Agri-Valley Irrigation, Inc.	American Ag Credit
Auto Farm	Bank of the West	Bayer Crop Science
Beeline Technologies, Inc.	CA Foundation for Ag in the Classroom	Dupont Company
Engelhard Corporation	George W. Lowry, Inc.	Greenheart Farms, Inc.
Golden State Irrigation Service	Growers Transplanting, Inc.	Holt of California
Hydro Agri North America	Netafim USA	Sacramento Valley Farm Credit
Trinkle Ag Flying, Inc.	Ultra Gro Plant Food Company	Western Farm Service, Inc.
Western Growers Association	Wilcox Agri Products, Inc.	Yosemite Farm Credit
TS & L	T-Systems	Sun Guard Chemical Company

If you are a supplier and are not on the list and would like to join us, please feel free to contact Jo Anne Hancock at the Association office.

Search Committee Makes Recommendation to the Board
John Poundstone, Chair of the CTGA CEO Search Committee, has reduced the number of applicants and is in the process of recommending the finalist to the Board of Directors. The Association hopes to have a new CEO by the Annual Meeting in January.

E.U. Lists Tomato Products
Canned tomatoes and diced tomatoes are among the U.S. products on which the E.U. plans to assess retaliatory duties in the Foreign Sales Corporation/Extraterritorial Income Exclusion Act dispute. The E.U. postponed to March 1 its deadline for U.S. (Congress) to repeal the export tax rebate provisions. The E.U. plans to assess a five percent duty on March 1 and increase retaliatory duty by one percent per month for one year to 17 percent. SB 1637 and HR 2896 have been introduced to repeal the offending tax break.

TOP 10 COUNTIES (TOP THREE PRODUCE 64.7% OF STATE PRODUCTION)

Rank

County

2003 Tonnage

2002 Tonnage

% Change
from 2002

Rank

County

2003 Tonnage

2002 Tonnage

% Change
from 2002

1

Fresno

3,753,955

4,189,539

-10.4

6

Kings

482,379

507,385

-4.9

2

Yolo

1,180,050

1,505,023

-21.6

7

Stanislaus

480,302

605,064

-20.6

3

San Joaquin

1,058,686

1,206,036

-12.2

8

Kern

365,684

428,575

-14.7

4

Colusa

645,418

763,804

-15.5

9

Solano

297,394

471,903

-37.0

5

Merced

510,050

653,456

-21.9

10

Sutter

211,650

335,679

-36.9

Membership Drive 2004
The Board of Directors changed membership agreements for 2004 as they seek members to support the Association. Growers are being asked to support the CTGA for 2004. If they are not satisfied regarding the changes, growers can submit a letter by November 1 terminating their membership. The Board has made many changes since August 1, 2003 as they strive to be the representative group for processed tomato growers not only in negotiating a fair and reasonable price, but also by the representation in many other areas that are impacting a grower’s ability to grow tomatoes and achieve a reasonable return.

CTGA Meets with Processors
The CTGA and the California League of Food Processors tomato members met to discuss ways that growers and processors can work together to increase the demand for processed tomato products through stronger research programs. Trade concerns and export opportunities were discussed. Processors will respond regarding the possibility of seeking a marketing order in California within the industry that could be supported by both growers and processors.

Ø    HR 2181 – “The Farming Flexibility Act of 2003” – The CTGA Board of Directors reconfirmed its position to opposing any legislation that would change the Farm Bill, which could negatively impact specialty crops (tomatoes) in California. California Congressmen on the Agricultural Committee are in support of the Association’s position.

Ø    EU Tomato Paste Consumption Soars – Tomato paste, sauce and ketchup per capita consumption in the EU soared to 11.83 kg in 2001-02 from just 8.89 kg in 1992-93, according to figures from the latest Food Institute Report. Total consumption was 4.46 million tons in 2001-02, 4.29 million tons in 2000-01 and 3.09 million tons in 1992-93.

Ø    Canada production down 13 percent – Ontario Vegetable Growers report production of 540,500 tons in 2003, down 13 percent from 2002.

Happy Holidays & Best Wishes for the New Year!
CTGA Staff