In Europe, the first two months of the 2021 tomato year haven't been great. Not when you consider the price formation. The average price in the European Union is well below that of last year. Then COVID-19 lockdowns weren't the order of the day yet. This year's prices also below the five-year average. They're especially low in Spain. In the Netherlands, prices are at the same level as in 2020.
Deviation in February
Traders called January 'average'. After a mediocre start, the month ended better. Price, however, didn't keep rising. That's according to the European Commission's tomato dashboard figures. In February, they dropped and then stabilized at the end of that month. A similar drop in prices can be seen at VBT (Flemish Horticultural Auctioneers Association) auctions in Belgium.
Demand is increasing
Price formations are currently improving slightly in both the Netherlands and Belgium. On the VBT clocks, this resulted in an increase in the mid-price for vine and loose tomatoes. These rose by some €0.40 in week 9. Supermarket promotions are stimulating much-needed demand at the moment. More and more Northwest European growers, who don't use lights, are now coming into production too.
Spain: low prices
Spain noted the lowest average prices. That's compared to the dashboard's other two large tomato-producing countries, the Netherlands and Italy. At €0.54/kg, the price is even lower than the five-year minimum.
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The Netherlands: average
Margins are usually small in the Netherlands. The current average price is similar to that of last year. But, unlike in January, they're below the five-year average. Prices were expected to rise slightly in February. That's based on the past five year's figures. That, however, didn't happen.
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Italy: Upward trend
In Italy, prices were also under the five-year average. But, unlike in Spain and the Netherlands, Italian prices are climbing. The gap with the five-year average has almost closed. That's based on graphs on the dashboard. However, the price in Italy is lower than in 2020 too. Then, COVID-19 was already sweeping through that country. That brought along all the negative consequences for sales markets.
