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USDA/FAS GAIN report: Annual tomatoes and products report, China

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May 26, 2009

USDA/FAS GAIN report CH 9047
Tomatoes and Products

Report Highlights:

China’s MY 2009/10 production of tomato and tomato products is forecast at a record 39.5 MMT, with processing tomatoes accounting for nearly 20 percent of total production. China’s tomato paste production is expected to reach 1.1 MMT in MY 2009/10, thanks to acreage expansion in Xinjiang and Inner Mongolia. China’s tomato paste exports are forecast at 800,000 tons in MY 2009/10, a six-percent increase from the estimated 750,000 tons in MY2008/09, driven by the increase in domestic production.

Executive Summary:

China’s total fresh tomato production is forecast at a record 39.5 million metric tons (MMT) in marketing year 2009/10 (MY July-June), mainly attributed to growth in the tomato processing sector. China’s industry is expecting a record 7.6 MMT of processing tomato production in MY 2009/10, a 20-percent increase from the 6.4 MMT in MY 2008/09, thanks to strong crop returns in 2008. Assuming normal weather conditions continue through the end of the marketing year, China’s tomato paste production is expected to reach 1.1 MMT in MY 2009/10. This record production is mainly due to acreage expansion in the major producing provinces of Xinjiang and Inner Mongolia.

China’s tomato paste (H.S. code 200290) exports are forecast to reach 800,000 tons in MY 2009/10, a six-percent increase from the estimated 750,000 tons in MY 2008/2009, driven by the increase in domestic production. The key phrase heard among China’s tomato paste traders in 2008 is price. Prices have soared as a result of production decline in Europe. China’s fresh tomato consumption per capita is about 40 1bs (18 kilograms) per year. Processed tomato consumption is extremely low at present, but the local industry is expecting an annual 15 percent increase in domestic processed tomato consumption over the next few years, in tandem with the rapid expansion of western style restaurants. U.S. tomato products are most competitive in major and mid-sized coastal cities, high-end consumer markets, western supermarkets, and the value-added food processing sector.

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