Tomato Paste Prices Increase Due to Reduction in 2018 Crop
The average price for 2018 crop of tomato paste is approximately 70 USD/MT higher than the 2017 crop and the market price continues to increase due to a reduction on the total output for the new crop season.
The latest report from The World Processing Tomato Council indicates the global quantity is about 35.32 million tons for 2018, whereas the 2017 crop was approximately 37.8 million tons. Each region in the Northern Hemisphere has already started production: EU will reduce 9% compared to last year due to the bad weather, China will reduce 30% due to the environment protection law, US should be 5% more than last year, and as per the report - the annual consumption is estimated at approximately 39 million tons. Due to a very high crop output in 2014, the carry over stock drives the market down and in 2018, the stock level is the lowest in last 3 years - leading to total supply falling short of consumption.
The World Processing Tomato Council