Tim Moran, The Modesto Bee, California
Knight-Ridder Tribune via Agnet Jan. 25/05

Growers of tomatoes processed by canneries are, according to this story, in a tough spot -- production exceeds demand and revenues have been declining for 30 years.

Ross Siragusa, president and CEO of the California Tomato Growers Association, was cited as saying at the association's annual meeting this week in Modesto that projections for the future show flat prices as well.

Siragusa also said the solution was to increase consumer demand for processed tomatoes by launching a generic promotion program like the almond and milk industries have, coupled with increased nutritional research on the benefits of eating processed tomatoes, adding, "We need to find creative ways to satisfy the consumer, so they will see more value in the product."

Siragusa was further cited as saying that getting the growers and processors to work together may be a daunting task, since they are traditionally adversaries when negotiating prices, but both sides have been the victim of a loss of retail dollars over the past decade.

Growers and processors got 62 percent of the retail value of tomato products in 1993, with retailers and marketers getting the rest. In 2002, those numbers were 31 percent for growers and processors, and 69 percent for the retailers and marketers, Siragusa said.

"It's huge," he said. "It explains a lot about why the processors are not making money, nor are the growers."