Processed Tomato Products Situation

Processed Tomato Products Situation
and Outlook in Selected Countries

Production of tomato paste in selected foreign countries in 1998/99 is forecast at 1.4 million, up 17 percent from 1997/98. The EU countries accounted for the biggest gains in output. Canned tomato pack for the same period in 7 selected foreign countries is forecast at 2.0 million tons, up 25 percent from the previous year. Italy accounted for 85 percent of the total selected foreign country output. Tomato paste exports from selected countries (including the United States) in 1998/99 are forecast at 1.09 million tons, up 7 percent from last season, due mostly to expected increases in shipments from Turkey, Greece and Italy. U.S. exports of tomato paste in 1998/99 are forecast at 100,000 tons, down 26 percent from a record 1997/98, because of lower exports to Canada and Asian countries (mainly Japan and Korea). Canned tomato exports from selected countries (including the United States) in 1998/99 are forecast at 846,100 tons, up 2 from 1997/98, due largely to expected higher exports from France, Greece and Italy. U.S. exports of canned tomatoes in 1998/99 are forecast to match the previous years total of 38,000 tons. Canada remains the largest U.S. market for canned tomatoes. During the first 5 months of 1998/99, U.S. exports to Japan totaled nearly 5,000 tons, up 184 percent for the same period from a year ago.

Summary

Production of processing tomatoes in 11 major producing countries in 1998 is estimated at 21.8 million metric tons, up 14 percent from the previous season. With the exception of Brazil (where unexpectedly high carryover stocks and reduced acreage lowered output), production in all other selected countries registered increases above 1997. Good weather, higher market prices and stronger international demand were the major factors for the increases in the 10 other selected countries.

Production of tomato paste in selected countries, not including the United States, in 1998/99 is estimated at 1.4 million tons, up 16 percent from the previous season. The EU countries accounted for 60 percent of the total production.

Exports of tomato paste from the selected countries, excluding the United States, in 1998/99 are estimated at 991,000 tons, up 12 percent from 1997/98. Italy, Greece, Turkey and Portugal accounted for most of the increase, as well as 81 percent of all exports. Exports of tomato paste from the United States in 1997/98 totaled a record 135,000 tons, up 5 percent from the previous season.

Canned tomato output in 1998/99 in 7 producing countries, not including the United States, is estimated at 2.0 million tons, up 25 percent from the weather reduced crops in 1997/98. Italy accounts for the bulk of this increase. There are no available statistics for canned production in the United States, but total output is believed to be the largest in the world.

Western Hemisphere

In the United States, production of processing tomatoes under contract in 1998 estimated earlier at 9.5 million tons, remains unchanged, and up 5 percent from 1997.

In marketing year 1997/98 (July-June), U.S. exports of tomato products--canned tomatoes, tomato paste, tomato sauce and ketchup--totaled 305,508 tons, valued at $235 million, up 5 percent in volume and 3 percent in value from the previous year. U.S. exports of canned tomatoes declined 17 percent in 1997/98, due mostly to reduced shipments to Japan and Korea, caused by the Asian financial situation.

U.S. imports of processed tomato products--canned tomatoes, tomato sauce, tomato paste and ketchup-- in 1997/98 totaled 128,000 tons, up 15 percent from the previous year, due mainly to increased imports of ketchup from Canada and canned tomatoes from mainly Italy and Spain. U.S. imports of canned tomatoes from Italy were up 13 percent from 1996/97, and 117 percent from 1995/96. This was the year prior to the U.S. elimination of the 100 percent punitive duty on EU canned tomatoes imposed in response to the EU/U.S. beef hormone dispute.

In Mexico, production of tomatoes for processing in 1998/99 has been revised upward to 310,000 tons, from 250,000 tons forecast earlier, due mainly to increased domestic use for tomato paste and strong export demand for fresh tomatoes.

Tomato paste production in Mexico in 1998/99 (March to February), forecast earlier at 42,000 tons, remains unchanged, but up 20 percent from the previous year. The primary markets for Mexican tomato paste are the United States and South America.

In Brazil, production of tomatoes for processing in 1998 has been revised downward to 950,000 tons from 1.05 million tons forecast earlier, due mainly to a decline in production area caused by some farmers switching from tomatoes to more profitable crops, such as, grapes, bananas, guavas, etc. Production of tomato paste (used to make consumer-ready sauces and other such products) in Brazil in 1998 has also been revised downward to 87,000 tons from 107,000 tons forecast earlier. Brazil’s tomato paste exports in 1998/99 are also reduced to 5,500 tons from 10,150 tons forecast earlier, and down 50 percent from 1997/98.

In Chile, production of tomatoes for processing in 1998 has been increased from 790,000 tons to 867,000 tons, up 17 percent from the previous year. This increase was largely the result of favorable export demand, improved technology and the relative profitability of tomatoes compared to other crops.

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.

Mediterranean Area

Production of tomatoes for processing in 1998 in major producing countries in the European Union (EU) remains unchanged at 6.8 million tons, down 4 percent from 1997.

In Italy, production of tomatoes for processing in 1998 has been revised upward to 4.0 million tons from 3.5 million tons forecast earlier, due mainly to increased export demand for canned tomatoes, tomato paste and tomato sauce. Production of canned tomatoes in 1998 was increased from 1.47 millions to 1.7 million tons, due mostly to increased deliveries of fruit to processors. This increase in Italy’s canned pack will further contribute to its chronically high stock situation, which may be overly inflated. Tomato paste production for the same period has also been revised upward from 270,000 tons to 300,000 tons, due to increased deliveries to processors.

Canned tomato exports in 1998 estimated at 700,000 tons remain unchanged from an earlier forecast, but up 3 percent from the revised volume in 1997. The tomato paste export forecast for 1998 have been increased from 260,000 tons to 280,000 tons, also because of higher deliveries.

In Portugal, production of processing tomatoes in 1998 has been revised to 987,000 tons, up 1 percent from an earlier forecast, and up 28 percent from 1997. The increase was 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 was lowered to 150,000 tons from 165,000 tons forecast earlier, due mostly to wet weather conditions causing some farmers to replant.

The tomato paste export forecast for Portugal in 1998 have also been lowered to 127,500 tons from 140,000 tons forecast earlier, because of reduced production. The EU countries accounts for the bulk of Portugal’s total tomato paste exports, followed by Japan and Saudi Arabia as the other most important markets. Portuguese tomato paste exports in 1999 are expected to remain strong because of continued demand in the EU and other countries.

In Greece, production of tomatoes for processing in 1998 has been increased 8 percent to 1.4 million tons from 1.3 million tons forecast earlier. Output was increased because of higher tomato paste prices, ranging from $760 to $1,000 per ton, compared with previous year. Tomato paste, passata and juice accounts for about 92 percent of Greek total processing production. In 1998, tomato paste quality was reported fair to average. Canned tomato production in 1998 was lowered slightly to 30,800 tons from 31,000 tons reported earlier, due largely to the poor quality of tomatoes delivered to the processors.

The EU countries continue to be 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 has been revised to 1.3 million tons from 1.0 million tons, due mainly to increased area planted to tomatoes for processing. Canned tomato production in 1998 has been increased to 212,500 tons from 175,500 tons reported earlier, as a results of increased deliveries of fruit to processors and higher domestic demand. Tomato paste production in 1998 has also been revised to 145,000 tons from 132,000 tons forecast earlier, due to increased deliveries to processors.

In 1998, Spanish exports of canned tomatoes remain the same as previously reported at 70,000 tons, and down 6 percent from 1997. The EU countries account for the bulk of Spain’s canned tomato exports.

In Turkey, production of tomatoes for processing in 1998, forecast earlier at 1.8 million tons, remain unchanged, but down 64 percent from 1997. Reportedly, favorable weather during the summer and fall last year prevented a repeat of the 1997 fungus and weather problems. Tomato paste production during the same period was revised upwards to 300,000 tons from 290,000 tons reported earlier, due mainly to improved yields caused by good weather conditions during the growing season.

The Turkish tomato paste export forecast for 1998 has been increased to 180,000 tons from 175,000 tons forecast earlier, due mainly to a larger crop. In 1997, Turkish tomato paste exports were adversely affected by a weather reduced crop. As a result, Turkey imported 10,000 tons of tomato paste, mostly from China and Greece, in order to fulfill its export contracts. In 1997, Russia, Ukraine, Japan, Saudi Arabia and the EU countries were Turkey’s leading markets for tomato paste exports. Currently, the EU is not permitting Turkey to utilize its 38,400 tons of duty free tariff-rate-quota for tomato paste exports, because of Turkey’s ban on imports of EU beef and cattle due to Bovine Spongiform Encephalopathy (BSE) fears.

In France, production of processing tomatoes in 1998 has been revised upward to 314,000 tons from 300,000 tons forecast earlier, because of increased deliveries to processors. Fresh tomato deliveries to processors included 240,000 tons for tomato paste, 28,000 tons for canned whole peeled tomatoes and 46,000 tons for other products. Production of tomato paste in 1998 has been revised to 41,000 tons from 38,500 tons reported earlier, due mostly increased deliveries of fruit to processors. The forecast for French canned tomato production in 1998 has been lowered to 20,000 tons from 22,000 tons forecast earlier.

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 forecast earlier at 293,000 tons, remains unchanged due to the lack of available data. Production of tomato paste in Israel in 1998 is estimated at 34,000 tons, up significantly from 1997.

Canned tomato products in Israel include: whole and diced peeled tomatoes, tomato paste and puree, tomato juice, ketchup and pizza sauces. Most Israeli tomato processors produce the full range of tomato products.

For information on production, please contact Emanuel McNeil at (202) 720-2083, and on trade contact Steve Shnitzler at (202) 720-8495.

Last modified: Thursday, April 06, 2000