The mature green tomato market has been battling oversupply and low prices. This has made it a real struggle to grow them in the southern part of California, where the season is short and costs are high. In recent years, costs went up significantly and prices were too low to breakeven. "We have a good market only one out of about every five to seven years," says Todd Giardina with The DiMare Company. "As a result, we couldn't justify growing mature green tomatoes in this very southern part, the Coachella Valley, anymore. After many decades in the region, the company made the difficult decision this year to stop growing tomatoes in and around Indio, CA.
Despite the decision to pull back from the Coachella Valley, the company still grows the same acreage as it has expanded in other parts of California. "Coachella is such a short deal, lasting only about four weeks, and with the expansion into other regions, we are really only losing two weeks of harvest," Giardina said. In California's Central Valley, harvest will start from the first or second week of June.
Low markets
At the same time, Florida is still going and will continue through the end of this month. Although Mexico has cut back on volume and is currently slowing down, there has been a good run of volume from both regions, putting downward pressure on prices. "We've been fighting really low markets since January," commented Giardina. "In December, prices were still at $20, but once January hit, they dropped to $10 and then went further down to $5-$6." This happened between January and March. At the end of March/early April, prices spiked to double-digit levels for a moment and then went back down again.
Current pricing is not high enough to cover the costs. In Florida, tomatoes are planted on stakes to prevent the impact from the frequent rains. This is a very expensive way of growing and adding to the cost is labor. Harvest crews usually have to make three rounds through the fields before harvest is done. "In both Florida and California, we need to make about $12 to breakeven," Giardina shared. The current low prices are not sustainable as they are significantly below break-even levels.
Outlook
It is difficult to provide an outlook for the coming months. While Mexico is winding down and Florida only has about three weeks left, production is starting up in California, Georgia, South Carolina, Tennessee, and Arkansas. This will likely result in a continued situation of oversupply. At the same time, the Tomato Suspension Agreement will be terminated, effective July 14, 2025. This means that tomatoes imported from Mexico will be subject to a nearly 21 percent tariff. Will that result in an increase in prices for tomatoes grown in the U.S.? "It could be positive, but honestly, it is only speculating. Either way, we won't feel the effects of a terminated agreement until October, when Mexico's tomato season starts up again."
For more information:
Todd Giardina
The DiMare Company
Tel: +1 209 862 2872
[email protected]
www.dimarefresh.com