Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Saturday, March 6, 2010

Mexican wholesalers benefit from Florida's tomato freeze - Arizona Daily Star


Mexican wholesalers benefit from Florida's tomato freeze - Arizona Daily Star




Mexican tomato wholesalers are benefiting - and so are Arizona import companies - as a frigid Florida winter takes its toll on your sandwiches.

The Sunshine State is the main U.S. source for fresh winter tomatoes, and its growers lost 70 percent of their crop during January's unusual, prolonged cold snap.

Domestic U.S. wholesale prices are up nearly five times over last year. The average wholesale price for a 25-pound box of tomatoes is now $30, up from $6.50 a year ago, The Associated Press reports.

Many national burger chains buy their produce in advance by contract and aren't affected, but some Wendy's restaurants posted signs saying tomatoes would be provided only upon request because of limited availability.

And because high demand has driven up domestic prices, many wholesalers are buying from Mexico instead.

"We're obviously losing market share to Mexico," said Reggie Brown of the Florida Tomato Grower's Exchange.

With Florida out of the market, supply-and-demand issues have raised the average wholesale price for a box of tomatoes going through Nogales to about $24 to $26, said Allison Moore, communications director of the Fresh Produce Association of the Americas, based in Nogales, Ariz.

Normally at this time of year that price would be about $10 to $12, she said.

"What people in Tucson may not realize is, this is benefiting a lot of Arizona importers and companies," Moore added.

She said the produce industry employs 12,000 to 15,000 people in Arizona.

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