Tomatoland had the recent privilege to exchange with several suppliers in Spain and Portugal about the coming crop.
It is quite clear that current inventories are small in Europe (not to mention China, Turkey, Iran and other sources) and that processors definitely need some significant price improvements to renew with profitability after 3 « extremely difficult crops ». Not to mention higher costs of tomatoes, energy, packaging, labor and transport.
As expressed by one of Europe’s leading manufacturers, « no 28 % tomato paste will come out from our factory below 700 € / MT. ex-works »; « although Spain is clearly the most competitive tomato industry in Europe, this price is the minimum level for making this business sustainable » also explains another experienced seller.
A third tomato industry player explains that « sales between 710 and 730 € / MT. ex-works had been already done for new crop » and targets even higher levels; « selling diced tomatoes above 350 € / MT. ex-works » is also a strong objective he concluded. Following our discussions, we also expect prices of passata / pizza sauce (10/12 – 12/14 and 14/16) to climb to higher levels for the new crops.
On the other side, we can also feel that buyers are ready for higher prices but, as usual, they will try hard to resist to this new market pressure and keep the increase as low as possible.
Pls. do not hesitate to comment !
May 6th, 2019