The crop has started in Europe and the customers have already started securing the quantities, keeping in mind the prices are moving up because of stock shortage from the last crop. The new crop will be very short or limited.
Below are some of the key reasons for the current jump in prices and the rising demand:
🍅 A number of Spanish factories are in a difficult financial situation and are likely facing bankruptcy.
🍅 Farmers in Portugal were not keen on planting tomatoes this season which makes finding fresh tomatoes for processing a challenge.
🍅 In Italy and Greece, there was a shortage of farms for tomato plantation leasing.
🍅 California has increased their prices of raw material and volatile weather is posing challenge in reference to the new crop.
🍅 The Chinese crop has also started to come on the market. One of the largest companies in China called “Chalkis” has closed down. This year Chinese production is down from 10 million tons in 2010 to now only 4 million.
🍅 Large multinational companies from India and some other Asian companies have approached the European market for immediate shipment (over 20,000 MT) which is a clear indicator that there is not much product available in the market, especially in China.