| California
tomato processors have harvested a record-large crop this year |
VEGETABLES AND
SPECIALTIES -- SUMMARY November 17, 1999
November 1999, ERS-VGS-279
Approved by the World Agricultural Outlook Board
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This SUMMARY is published by the Economic Research Service, U.S. Department of
Agriculture, Washington, DC 20036-5831. The complete text of the report will be available
electronically about 2 weeks following this summary release.
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Excerpts from "Fresh Vegetable Prices Average Lower in 1999"
Spurred by low stocks and strong wholesale prices, tomato processors have harvested a
record-large crop this year. According to delivery information from the California
Processing Tomato Advisory Board, 12.24 million tons of tomatoes were delivered to
processors in the State this season. Adding an expected 0.5 million tons from other States
would result in a U.S. processing tomato crop exceeding the 1994 record by 10 percent.
With excellent weather (warm and dry) allowing an unusually large (record-large) volume to
be harvested late in the season (after October 1), the California crop substantially
exceeded both industry and U.S. Department of Agriculture estimates.
For 1999, wholesale prices for canned vegetables and juices are forecast slightly lower
than a year ago. In the coming year, larger supplies of tomato products and several other
canned vegetables will likely leave wholesale prices for canned vegetables and juices at
or below those of 1999. Wholesale prices for frozen vegetables are forecast 1 percent
higher in 1999, with little or no increase expected in 2000 due to continuing high stocks,
lackluster exports, and stodgy domestic retail demand. After rising about 12 percent in
1999, wholesale prices for dried and dehydrated vegetable products are expected to average
below year-earlier levels in 2000 due to much improved garlic and onion crops in
California. Unlike last year when the cool, wet spring severely damaged these California
crops, larger crops this year have settled prices. These lower prices should also help
stem the flow of imported product during the 1999/2000 marketing year.
Printed copies of the Vegetables and Specialties Situation and Outlook report will be
available in about 2 weeks. For more information contact Gary Lucier, 202-694-5253 or
Charles Plummer, 202-694-5256. This report includes two special articles entitled,
"Modeling the U.S. Processing Tomato Industry" and "The F.O.B.-Retail
Price Relationship for Selected Fresh Vegetables."The text of the report will also be
available electronically via the ERS website at www.econ.ag.gov.
ERS-USDA news release |
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