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Editorial for The California Tomato Grower
JANUARY 2005
Ross Siragusa, President/CEO
 
The Value of Promotion
 

Dear Tomato Growers:

The Current issue of The California Tomato Grower Magazine highlights some of the promotional efforts that the CTGA has undertaken. Some people in the industry question why the CTGA should undertake this effort. Our logic is as follows:

Flat Demand

  • Processed tomatoes are viewed at best as a staple, but more as an ingredient with little to excite or induce the consumer to buy more
  • Nutritional message is not getting to the consumer as it is with other products - nuts, fruits, and vegetables
  • Export markets largely ignored
  • Processors and Growers are fighting over an ever shrinking margin

Surplus Inventories

  • No effective marketing mechanism for selling surplus inventory
  • No industry mechanism to provide price stability

Surplus Processing Capacity

  • California has the ability to process more than 12 million tons
  • Net demand is approximately 10.5 million tons

Worldwide Production

  • Production reached 38 million tons in 2004
  • Demand is approximately 28 million tons

Great Nutritional Story & Tastes Great

  • A naturally low calorie product with more nutritional benefits than almost any fresh or processed fruit or vegetable
  • Wide distribution and customer acceptance
  • Making a compelling case to eat more processed tomatoes is a "no brainer"

Growers Need to Lead

  • If growers don't like the current processed tomato price or processor demand we need to do something
  • Invite processors to join us instead of just fighting over price
  • Invite non-CTGA growers to support this effort which will help bring all growers together to support a common goal

The CTGA is proud to have Secretary A.G. Kawamura and Rodger Wasson from the California Strawberry Commission, formerly from the California Almond Board, address our 58th Annual Meeting. Their presentations will focus on the benefits of generic promotion and highlight some success stories. Dr. CLare Hasler, Director of the Robert Mondavi Institure at UC Davis will follow their presentations with an update on the benefits of Lycopene, a key antioxidant in tomates. We plan to learn from others' successes and leverage the good health message inherent to our product.

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