The supply of tomatoes is lower in the U.S. at the moment. "Mexico has a good, strong market right now, so a lot more product is staying there," says Roger Riehm of Blue Creek Produce.
At the same time, following already cooler nights in Mexico, last week's Hurricane Erick has also left rainy, cloudy conditions, which have hindered some of the tomato ripening and affected product conditions.
Back in the U.S., this week also saw large parts of the country experiencing a heat wave, which has pushed the ripening of tomatoes. "We will see how the quality of the tomato is after this heat. It's not only the short-term effects but the long-term effects as well," says Riehm, noting that states such as North and South Carolina, Arkansas, and Tennessee are harvesting at the moment.
On top of the quality of the tomato, taking care of labor in the heat this week was also a challenge for growers.
Pricing to strengthen more?
All of this is leaving pricing on the stronger side, which is expected to stay that way or slightly strengthen in the near future, particularly on grape tomatoes and Romas.
Looking ahead, the U.S. heads into the 4th of July late next week, which should slow down demand somewhat. "I think this will all even out a bit. People aren't going to be ordering past Tuesday because a lot of places shut down early. They will want to stop receiving product by Wednesday," says Riehm, adding that after the holiday, demand can also stay slow in the short term.
As U.S. production continues to come on in late July in states such as New Jersey and Michigan, all eyes are also on the July 14th date when the U.S. Department of Commerce announced it would terminate the 2019 U.S.-Mexico Tomato Suspension Agreement. That would introduce a 17 percent duty on tomatoes coming out of Mexico.
For more information:
Roger Riehm
Blue Creek Produce
Tel: +1 (630) 677-7068
[email protected]
https://bluecreekproduce.com/