Processed Tomato Products Situationand Outlook in Selected Countries
Production of tomatoes for processing in the United States under contract in 1998 is estimated at 9.5 million metric tons, up 5 percent from 1997. This increase is due largely to higher processor demand and improved prices. However, due to some late plantings this year caused by excessive rains and cool weather in key producing states, growers production costs may be higher because of the effort to control fungus and other related production problems.
In marketing year 1997/98 U.S. exports to date (July-April) of tomato products--canned tomatoes, tomato paste, tomato sauce and ketchup totaled 258,000 tons, valued at $197 million, up 7 percent in volume and 3 percent in value from the same period a year earlier. Canada accounted for the lion's share of canned tomatoes, tomato paste and tomato sauce exports, with Japan being the biggest market for ketchup.
U.S. imports of processed tomato products--canned tomatoes, tomato sauce, tomato paste and ketchup- in 1997/98 (July-April) totaled 73,000 tons, up 12 percent from the same period the previous year, due mainly to increased imports of ketchup from Canada and canned tomatoes from Italy and Spain. Since the United States' elimination of the 100 percent punitive duty on imports of Italian, Spanish and other EU canned tomatoes in July 1996, imports have increased dramatically. The duty had been originally imposed in response to the EU/U.S. beef hormone dispute.
In Mexico, production of tomatoes for processing in 1998/99 is forecast at 290,000 tons, down 3 percent from the previous season, due mostly to an increase in export demand for fresh tomatoes. Most tomato processing plants in Mexico operate from March to June.
Mexico's tomato paste production for 1998/99 (March to February) is forecast to increase 20 percent to 42,000 tons due to greater availability of tomatoes for the processing industry, plus increased demand from the European market. Imports of tomato paste, mainly from the United States, during the same period are forecast at 6,000 tons, up dramatically from the 500 tons imported in 1997/98. This increase in imports is due to greater demand for tomato paste from the dehydration industry for tomato powder production. About 75 to 80 percent of the tomato powder production is exported to the United States.
In Brazil, production of tomatoes for processing in 1998 is forecast at 1.05 million tons, up slightly from 1997, due mainly to an increase in harvested area and greater demand for processed tomato products.
In Brazil, about 70 to 75 percent of processing tomatoes go into tomato paste and extracts. The majority of the paste is used in further processing into consumer-ready sauces and other such products. Production of tomato paste in Brazil in 1998 is forecast at 107,000 tons, up 5 percent from 1997, due mostly to increased domestic demand. Shifts in Brazilian consumption pattern toward consumer-ready tomato products will continue to occur in 1998, as urbanization and the need for fast foods and shorter lunch hours continue.
Brazil's tomato paste exports in 1998/99 are forecast at 10,000 tons, up 4 percent from the revised 1997/98 volume, because of increased domestic demand. Brazilian exports of tomato paste and other tomato products are slated primarily for South American countries, particularly Argentina.
In Chile, the production of tomatoes for processing in 1998 is forecast at 790,000 tons, up 8 percent from the revised 1997 level, due largely to increases in planted area. Excess rain last spring delayed the establishment of seedbeds and the planting of tomatoes. As a result, a higher percentage of planted area than normal had to be replanted, which raised the expected level of production.
Tomatoes for processing in Chile are planted from mid-September through early December and harvested from around January 10 through April 15. The tomato processing industry in Chile produces mainly tomato paste and canned tomatoes, destined primarily for the export market. The canned products include whole-peeled, diced-peeled and crushed tomatoes. There are 8 major tomato processing plants in Chile with the current installed capacity ranging from 120,000 to 140,000 tons.
Brazil is Chile's largest export market for tomato paste, followed by Argentina, Japan, Venezuela, and Colombia; while, the United States remains Chile's largest export market for canned tomatoes.
Production of tomatoes for processing in 1998 in major producing countries in the European Union (EU) is forecast at 6.8 million tons, down 4 percent from 1997.
In Italy, production of tomatoes for processing in 1998 is forecast at 3.5 million tons, down slightly from the previous season, which is in line with the EU's tomato processing quota for Italy of 3.47 million tons. Italy's output of tomatoes for processing over the next few years is forecast to remain reasonably stable. In 1997, spring frost and some virus outbreaks were the primary reasons for reduced output compared to 1996. Apulia, located in Southeastern Italy, accounts for approximately 60 percent of the Italian processing tomato output.
Production of canned tomatoes in 1998 is forecast at 1.47 million tons, up 10 percent from the revised 1997 volume. Canned tomato exports in 1998 are expected to approximate the previous year's level (700,000 tons). Tomato paste production in 1998 is forecast at 270,000 tons, down 3 percent from 1997 due mostly to reduced deliveries to processors. Tomato paste exports in 1998 are forecast at 260,000 tons, unchanged from the 1997. Italian consumption of tomato paste in 1998 is expected to total about 72,000 tons, down slightly from 1997. However, tomato paste consumption in Italy is declining at the expense of increased use of sauce, crushed and chopped tomato products. Italian exports of tomato products during 1997 increased 3 percent due to more favorable international prices. Italian exports of tomato sauce in 1997 remained stable at 27,000 tons, with France, Germany and the United Kingdom being the primary markets.
In Portugal, the output of tomatoes for processing in 1998 is forecast at 975,000 tons, up 26 percent from 1997. The increase is due largely to farmers shifting areas formerly planted to corn into tomato production because of higher prices received for tomato products. Tomato paste production accounts for the bulk of Portugal's processed production. In 1998, paste production is forecast at 165,000 tons, up 22 percent from the revised 1997 level, due mostly to an increase in planted area. Production of other processed tomato products, like diced tomatoes, pizza sauce and tomato pulp, are expected to increase slightly during this period.
Exports of tomato paste by Portugal in 1998 are forecast at 140,000 tons, up 100 percent from last year's revised level. In 1997, the EU countries accounted for almost 80 percent of Portugal's total tomato paste exports, followed by Japan, Saudi Arabia and other countries accounting for the balance.
In Greece, production of tomatoes for processing in 1998 is forecast at 1.3 million tons, up 5 percent from 1997, due to favorable prices and increased demand. Also, production of tomatoes for processing in 1998 is expected to further increase, as stocks on hand are nearly non-existent, and the recent devaluation of the Greek drachma will make tomato product exports from Greece more competitive on the international market. In Greece the consumption of crushed, chopped and diced tomato products is increasing over whole peeled tomatoes, while a slight decline is observed in passata consumption.
The other EU countries continue to represent the largest export market for Greek tomato products, as well as the major source of almost all tomato product imports into Greece (mainly from Italy).
In Spain, production of tomatoes for processing in 1998 is forecast at 1.0 million tons, up 5 percent from the previous year. The availability of water for irrigation throughout Spain's tomato production area is the primary reason for the increase.
Canned tomato production in Spain in 1998 is forecast at 175,500 tons, up 8 percent from the previous year. Tomato paste production in 1998 is forecast at 132,000 tons, up 1 percent from a year ago, due mostly to increased tomato deliveries to processors.
Spain is a net exporter of fresh, canned tomatoes, tomato paste and other products. In 1998, Spanish exports of canned tomatoes are forecast at 70,000 tons, up 3 percent from 1997. Traditionally, the other EU countries have accounted for the bulk of Spain's canned tomato exports. With the decrease in U.S. tariffs on imported EU canned tomatoes, Spanish exports of canned peeled tomatoes to the United States in 1997 totaled 2,779 tons, up 161 percent above 1996, with further growth expected to occur in 1998. Spain's exports of tomato paste in 1998 are forecast at 51,000 tons, up 3 percent from 1997. Other EU countries are Spain's traditional markets. Spain's exports of tomato powder in 1997 are estimated at 15,000 tons.
In Turkey, production of tomatoes for processing in 1998 is forecast at 1.8 million tons, up 64 percent from last year's weather reduced crop. However, there is growing concern that continued cool and wet weather could result in production problems similar to last year's. Tomatoes produced for processing in Turkey account for about 25 percent of total production, with the remainder utilized for fresh consumption. Approximately 80 percent of the processed production is used to produce tomato paste, 15 percent for canned tomatoes and the balance for catsup, juice and other products. Transplanting of tomatoes in Turkey starts around mid-April, with harvesting of early varieties beginning in late July and a peak harvest occurring around mid-August. Since all harvesting is done by hand, 3 or 4 pickings are possible and can extend until early October.
Tomato paste production in Turkey in 1998 is forecast at 290,000 tons, up 2 percent from last year's fungus problem crop. Approximately 5,000 tons of tomato paste are produced at home. Turkey's annual tomato paste production capacity is estimated at about 400,000 tons, with actual utilized capacity at about 325,000 tons.
There are no official statistics on tomato and tomato products production and stocks. Stock figures in this report are calculated as the residual of all other factors and include all products in all parts of the distribution network.
The Turkish tomato paste industry is very dependent on exports. In 1998, Turkish exports of tomato paste are forecast at 175,000 tons, up 55 percent from last year's due to increased supplies. In recent years, exports of paste to traditional markets, mainly Algeria and Libya have declined sharply, as a result of problems in the importing countries and partly as a result of reduced supply. Other important Turkish tomato paste markets include: Japan, Russia, United Kingdom, Germany, Ukraine, Saudi Arabia, Poland, Switzerland and Norway.
In France, production of processing tomatoes in 1998 is forecast at 300,000 tons, up 5 percent from the revised 1997 level, due mainly to increased deliveries of fresh tomatoes to processors. Production of tomato paste in 1998 is forecast at 47,000 tons, up 4 percent from the revised level in 1997. French production of canned tomatoes in 1998 is forecast at 38,500 tons, unchanged from 1997.
France is a net importer of both canned tomatoes and tomato paste, with bulk of all imports coming from EU countries, mainly Italy and Spain.
In Israel, production of processing tomatoes in 1998 is forecast at 293,000 tons, up 66 percent from the revised weather damaged crop in 1997. Production of tomato paste in Israel in 1998 is forecast at 34,000 tons, up 89 percent.
In Israel, canned processing products include: whole and diced peeled tomatoes, tomato paste and puree, tomato juice, ketchup and pizza sauces. Most Israeli tomato processors produce the whole range of tomato products.
For information, please contact Emanuel McNeil at (202) 720-2083.