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Florida tomatoes: from shortage to overproduction
United States
Tuesday 08 June 2010
FJ
More production and less demand caused a price collapse which puts in danger all tomatoes sector in Florida.
Cold temperatures in January and February killed many tomato plants and caused a shortage that pushed the average wholesale price of winter tomatoes to $30 for a 25-pound box by early March. Grocery stores raised their prices in turn, with some charging nearly $4 a pound. Restaurants had been taking them off the menu or charging more for a tomato on a sandwich.
Producers multiplied plantations to assure a steady supply, the spring delayed the growth of plants and since the arrival of warmer time, several cycles ripened at once, causing a glut.
More production and less demand entailed a price collapse. To break even, farmers need to get $8 to $9 per 25-pound box of tomatoes; right now, they're averaging only about $4.75.
USDA announced it would order an additional 31.5 million pounds to help farmers and provide additional produce through federal food assistance programs.
Source : associated press tampa, bay colombus dispach.
