May 21, 2012

Low prices threaten Florida tomato growers

Florida’s tomato industry has been grappling with money problems for the past two seasons, said Reggie Brown, manager of the Florida Tomato Committee.

Last year, an assessment was implemented to cover committee expenses after a bad year led to just under 28 million units of tomatoes being packed out, instead of the projected 40 million. The assessment was increased from 0.0275 cents per 25-pound unit to 0.037 cents to compensate, Brown said.

“The assessment was raised to make sure we could still do the job for the tomato industry,” Brown said. “We’ve been operating on that assessment since last year.”

While it was part of last year’s budget, the assessment was only recently reported in the Federal Register and has led to some confusion across the industry, Brown said.
“I have no idea why it wasn’t reported until recently,” he said.

The other issue facing Florida tomatoes this season is competition, Brown said. Tomatoes from Central and South America, as well as Canada, have flooded the market and lowered prices.

“It’s as bad as it’s been in 20 years,” Brown said. “We are awash in excess produce. Prices are as low as we’ve ever seen. It’s not a good season by any means.”

The crop, however, is outstanding, Brown said. The mild winter was kind to Florida growers, and the quality of their tomatoes is very high, he said. Only one mild freeze event took place during the growing season, and it had no impact on what Brown called “a beautiful crop.”

Brown is hopeful the committee will meet its next budget goal with the assessment. The committee expects the industry to pack 35 million units this year, but Brown is worried that the low prices will lead to some constriction at the end of the season. He said he wouldn’t be surprised to see some growers exit the industry after this year.

“With the market flooded as it is, it is going to be rough,” he said. “People can only consume so many tomatoes.”

By Derrek Sigler, Associate Editor