Mexican producers abuzz about this year's tomato deal
Mexican producers abuzz about this year's tomato deal
The 2008 Mexican tomato season is shaping up to be one of the better ones in several years, with reliable supplies and steady markets expected, according to industry sources.
"The season started light, but now we are moving into some great crops," said Javier (J.J.) Badillo, director of diversified products for Calavo Inc., who oversees Calavo's Mexican tomato program from the company's Nogales, AZ, office.
He told The Produce News Jan. 30 that he expects to see "high quality and consistent supplies" throughout the balance of the season.
Mr. Badillo's comments are representative of what Allison Moore, interim president of the Fresh Produce Association of the Americas, told The Produce News that she has been hearing from tomato handlers in Nogales.
"The buzz in town is that everyone is really excited about having a reliable crop this year," especially in contrast to last year when there were weather problems, she said. "They are excited about setting up promotions and keeping volume moving.
Ms. Moore said that she had just had a conversation on the subject with Martin Ley, general manager of Del Campo Supreme in Nogales and a member of the association's tomato committee. He told her that the fields look good in Mexico, that the crop is healthy and that growers "just really want people to know that they [will] have consistent supplies and they are ready to sell," she said.
Ms. Moore did acknowledge that the deal was "a little late getting into promotable volumes," but now "we are at good, solid volumes" with reliable supplies expected to continue through March, she said Jan. 28. "It is just a matter of getting the word out there" and letting retailers know "that they have reliable supplies coming." The FPAA's merchandisers are out "meeting with retailers to say, 'Let's get consumers excited about buying tomatoes,'" she said.
"I think it is going to be a nice, predictable season for the coming months," she added.
Market prices for Mexican tomatoes have been "very good" during the early part of the season, Jim Cathey, sales manager at Del Campo Supreme, said Jan. 30. "We are starting our first good volume week, and markets are reflecting an increase in volume." In many stores, retail prices remain high, but "I think it is temporary," he said.
Mr. Cathey expects to see retailers getting some ads going, leading to good movement and stable prices. "I think that we'll have a good February and March," he said.
Although he expects "good volume now going forward," Mr. Cathey does not expect the high peaks seen in previous seasons. "Plantings are down, but I think it is adequate," and recent cold weather in Florida might make for "a good marketing situation" for the Nogales deal.
Most tomatoes grown in Mexico for export to the United States are grown in the state of Sinaloa, primarily in the Culiacan Valley.
"About the time the Culiacan program is kicking in, we usually see the market get soft," said Mark Munger, vice president of marketing for Andrew & Williamson Sales Co. Inc. in San Diego. The price for tomatoes generally "comes way down," and that begins to be reflected at the retail level, he said. But Mr. Munger does not expect a significant price drop this year. "I don't believe there is an oversupply," he said, with specific reference to Romas. A number of companies "cut back on production."
Even though retails have remained high on Romas, "we are seeing good movement at the store level," he said. "One of the things that is helping is that the quality that is coming out of Culiacan is absolutely superb."
Most growers in the Culiacan region are now growing in shadehouses, which help "minimize the severe impacts of weather," resulting in more reliable supplies, he said.
"The season started light, but now we are moving into some great crops," said Javier (J.J.) Badillo, director of diversified products for Calavo Inc., who oversees Calavo's Mexican tomato program from the company's Nogales, AZ, office.
He told The Produce News Jan. 30 that he expects to see "high quality and consistent supplies" throughout the balance of the season.
Mr. Badillo's comments are representative of what Allison Moore, interim president of the Fresh Produce Association of the Americas, told The Produce News that she has been hearing from tomato handlers in Nogales.
"The buzz in town is that everyone is really excited about having a reliable crop this year," especially in contrast to last year when there were weather problems, she said. "They are excited about setting up promotions and keeping volume moving.
Ms. Moore said that she had just had a conversation on the subject with Martin Ley, general manager of Del Campo Supreme in Nogales and a member of the association's tomato committee. He told her that the fields look good in Mexico, that the crop is healthy and that growers "just really want people to know that they [will] have consistent supplies and they are ready to sell," she said.
Ms. Moore did acknowledge that the deal was "a little late getting into promotable volumes," but now "we are at good, solid volumes" with reliable supplies expected to continue through March, she said Jan. 28. "It is just a matter of getting the word out there" and letting retailers know "that they have reliable supplies coming." The FPAA's merchandisers are out "meeting with retailers to say, 'Let's get consumers excited about buying tomatoes,'" she said.
"I think it is going to be a nice, predictable season for the coming months," she added.
Market prices for Mexican tomatoes have been "very good" during the early part of the season, Jim Cathey, sales manager at Del Campo Supreme, said Jan. 30. "We are starting our first good volume week, and markets are reflecting an increase in volume." In many stores, retail prices remain high, but "I think it is temporary," he said.
Mr. Cathey expects to see retailers getting some ads going, leading to good movement and stable prices. "I think that we'll have a good February and March," he said.
Although he expects "good volume now going forward," Mr. Cathey does not expect the high peaks seen in previous seasons. "Plantings are down, but I think it is adequate," and recent cold weather in Florida might make for "a good marketing situation" for the Nogales deal.
Most tomatoes grown in Mexico for export to the United States are grown in the state of Sinaloa, primarily in the Culiacan Valley.
"About the time the Culiacan program is kicking in, we usually see the market get soft," said Mark Munger, vice president of marketing for Andrew & Williamson Sales Co. Inc. in San Diego. The price for tomatoes generally "comes way down," and that begins to be reflected at the retail level, he said. But Mr. Munger does not expect a significant price drop this year. "I don't believe there is an oversupply," he said, with specific reference to Romas. A number of companies "cut back on production."
Even though retails have remained high on Romas, "we are seeing good movement at the store level," he said. "One of the things that is helping is that the quality that is coming out of Culiacan is absolutely superb."
Most growers in the Culiacan region are now growing in shadehouses, which help "minimize the severe impacts of weather," resulting in more reliable supplies, he said.
