Processed Tomato Products Situation

and Outlook in Selected Countries

Summary

 

Production of processing tomatoes in 11 major producing countries in marketing year 1999/00 is forecast at a record 23.7 million metric tons, up 12 percent from the previous season. Production of tomato paste in selected countries, not including the United States, in 1999/2000 is estimated at 1.5 million metric tons, up 1 percent from the previous season. Production in the EU countries declined slightly for the same period, but accounted for 60 percent of the total output. Production of canned tomatoes from 7 selected countries in 1999/00 is estimated at 2.0 million tons, up 3 percent from the previous season, due largely to increased deliveries to processors and strong international demand. Exports from Italy accounted for 86 percent of the total canned pack.

 

Exports of tomato paste from the selected countries, excluding the United States, in 1999/00 are forecast at 1.0 million tons, up slightly from 1998/99. Shipments from Italy, Greece and Portugal are expected to account for more than 90 percent of EU country exports and 62 percent of all selected countries exports. Exports of tomato paste from the United States during the first 10 months of marketing year 1998/99 totaled 70,000 tons, a dramatic decline of 48 percent from the previous season. This decline was due to a huge drop in shipments to Japan and Korea caused by a financial crisis, and reduced exports to Canada, Mexico, Italy, Australia and Taiwan.

 

 

Western Hemisphere

 

U.S. Processing Tomato Output To Increase

 

Production of tomatoes for processing in the United States under contract in 1999 is estimated at a record 10.9 million tons, up 28 percent from the revised 1998 estimate. This rise in production is due mainly to a 17 percent increase in acreage for processing tomatoes above the weather reduced area the previous year.

 

During the first 10 months of marketing year 1998/99 (July-April), U.S. exports of tomato products--canned tomatoes, tomato paste, tomato sauce and ketchup totaled 223,000 tons, down 14 percent from the same period the previous year. U.S. exports of tomato paste declined the most during this period, due mainly to reduced shipments to Japan, Korea and Italy.

 

U.S. imports of processed tomato products--canned tomatoes, tomato sauce, tomato paste and ketchup, during the first 10 months in 1998/99 totaled 156,432 tons, up 51 percent from the same period in 1997/98. Higher tomato paste imports from Chile, Mexico, China, Italy, Peru, Israel, Turkey and Portugal were the primary reason for the increase. On the canned tomato side, U.S. imports registered significant increases from Canada Israel and Chile, but were offset by lower imports from Italy.

 

In Mexico, production of tomatoes for processing in 1999 is forecast at 310,000 tons, up 3 percent from the previous year, due to an increase in planted area and stronger export demand. Tomato paste production accounts for the bulk of Mexico’s tomatoes for processing. Mexico’s tomato paste output in marketing year 1999/00 (March to February) is forecast at 46,000 tons, up 9 percent from the 1998/99 estimate, because of an expected increase in international demand. Most plants operate from March to June. The primary markets for Mexican tomato paste are the United States and South America.

 

In Brazil, production of tomatoes for processing in 1999 is forecast at 1.05 million tons, up 10 percent from 1998, due mainly to an increase in planted area in Region 2. Planted area in Region 3 remained unchanged. Nearly all of the processing tomatoes are made into tomato paste, with an small amount made into canned tomatoes. Production of tomato paste in 1999 is forecast to recover to 107,000 tons, up 23 percent from 1998–where some farmers in Region 1 switched some area previously devoted to tomatoes to bananas, grapes, guavas, etc. because of better financial returns.

 

Brazil imports a small amount of tomato paste (28-32 brix) to supplement domestic production and is further processed into consumer-ready sauces and other similar products. Traditionally, Chile supplies the bulk of Brazil’s tomato paste imports. However, in 1998 the United States supplied the bulk (98 percent) of Brazil’s tomato paste imports. In 1997 and 1996, the U.S. share of Brazil’s paste market was 33 and 8 percent, respectively.

 

In Chile, production of tomatoes for processing in 1999 is estimated at 858,650 metric tons, down 3 percent from the revised 1998 level, due mainly to lower crop quality. Chile’s processed tomato production includes canned whole peeled, crushed peeled, diced tomatoes, paste and sauce. Production of tomato paste in 1999 is estimated at 110,000 tons, also down 3 percent from the previous year, due to lower crop quality as well.

 

Brazil continues to be 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 1999 in major producing countries in the European Union (EU) is forecast at 6.84 million tons, up slightly from 1998.

 

In Italy, production of tomatoes for processing in 1999 is forecast to reach a record 4.4 million tons, up 1 percent from the previous record in 1998. Production of canned tomatoes in 1999 is forecast at 1.7 million tons (consisting of about 58 percent whole peeled and 42 percent crushed, chopped and other tomatoes), up 3 percent from the 1998 revised level, due mostly to improved quality. Tomato paste production in 1999 is forecast at 335,000 tons, up 1 percent from 1998, due mostly to increased deliveries to processors.

 

Italy’s exports of all tomato products–whole peeled, crushed, diced, tomato paste and sauce, in 1999 are forecast to increase. Italian paste producers fear competition from non-traditional producing countries, such as Tunisia, Algeria and Turkey, where production costs are much lower.

 

In Portugal, production of processing tomatoes in 1999 is forecast at 990,000 tons, about the same level as the previous year. Industrial yields and quality are reported to be very good, although the average solid content in the tomato crop is considered normal. Tomato paste accounts for the bulk of the processing production. Paste output in 1999 is forecast at 165,000 tons, down 2 percent from the previous year. Diced tomato output is forecast to remain at 16,000 tons, about the same level as 1998.

 

Exports of tomato paste in Portugal in 1999 are expected to reach 125,000 tons, unchanged from the previous year. The EU countries account for the bulk of Portugal’s tomato paste exports, followed by Japan and Saudi Arabia as the other most important markets.

 

In Greece, production of tomatoes for processing in 1999 is forecast at 1.3 million tons, down 3 percent from 1998, due largely to hot weather conditions in July and August. Tomato paste, passata and juice accounts for about 92 percent of Greek total processing production. Output of tomato paste in 1999 is forecast at 212,000 tons, down 1 percent from 1998, due mainly to reduced deliveries of product to processors. Canned tomato production in 1999 is forecast at 33,400 tons, up 2 percent from the previous year, due to increased demand and lower stocks.

 

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 1999 is forecast at 1.3 million tons, unchanged from 1998. Canned tomato production in 1999 is expected to reach 210,000 tons, up 2 percent from a year ago, mostly as a result of increased deliveries of fruit to processors. Tomato paste output in 1999 is expected to reach 160,000 tons, down 1 percent from the revised level in 1998.

 

Based on higher production expectations, Spanish exports of canned tomatoes in 1999 are forecast at 68,000 tons, up 5 percent from the revised level in 1998. The EU countries account for the bulk of Spain’s canned tomato exports.

 

In Turkey, production of tomatoes for processing in 1999 is forecast at 1.95 million tons, unchanged from the revised 1998 level. Recent trends in tomato production include increased greenhouse production in southern Turkey for fresh consumption in urban areas during the winter, as well as added interest in expanding production of early varieties of industrial tomatoes in southwestern Turkey to take advantage of the massive Southeastern Anatolian Development (GAP) Project. Tomato paste production during the same period is forecast at 300,000 tons, unchanged from 1998.

 

Turkish exports of tomato paste in 1999 are forecast at 185,000 tons, up 3 percent from 1998, due mostly to a larger crop. Japan continues to be Turkey’s leading export market, because Japanese prefer the color and taste of Turkish tomato paste and believe that hand picking improves the quality. Other important export markets for Turkish paste are Italy, Saudi Arabia, Tunisia, Spain, and other EU countries.

 

In France, production of processing tomatoes in 1999 is forecast at 300,000 tons, down 4 percent from the revised 1998 level. Tomatoes for paste production account for the bulk of the fruit delivered to processors. Output of tomato paste in 1999 is forecast at 39,000 tons, down 5 percent from 1998, due mainly to lower fruit going to processors. French production of canned tomatoes in 1999 is estimated at 20,000 tons, up slightly from 19,500 tons in 1998.

 

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 1999 is estimated at 310,000 tons, up 16 percent from 1998, due mostly to an increase in harvested area for processing tomatoes. Production of tomato paste in Israel in 1999 is estimated at 34,000 tons, up 10 percent from 1998, due mainly to an increase in fruit going to processors. 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 whole range of tomato products. Licored, a two year old plant in Israel is producing licopen, an organically-based edible red color. The market for licopen has not yet developed as rapidly as expected. Exports account for 70 percent of the total tomato paste pack with the balance consumed locally.

 

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