Supplies of tomatoes are adequate right now.
Scott Blanchard of TMC Produce Solutions Corp. in League City, Tex. says that supplies from Mexico and domestically have dropped slightly recently. However, he notes, the concern for growers and marketers of tomatoes is largely around the change in demand. Blanchard says that approximately 75 percent of the supplies for TMC were going towards foodservice while the remaining 25 percent to retail. “There was a rush of people going to the grocery store buying everything but now, not so much,” he says. “The big leftover supply of tomatoes is not being consumed as much because people aren’t going out to eat. They’re not buying as much as say McDonald’s would buy. So that’s a big problem right now—there’s more supply than there is demand for sure.”
Meanwhile in Canada, David Pereira at Mor Gro Sales Inc. in Kingsville, Ont. says that the Canadian greenhouses are just ramping up on production of tomatoes—peak for the season is the end of May through to July. “Supplies are just picking up and the volume looks similar to last year,” says Pereira.
Photo: Mor Gro Sales Inc.
How consumers shop
However, Pereira flags demand as well to be an area of concern. “Demand is okay considering what’s going on with COVID-19. I know online shopping has ramped up, but it seems that sales have slowed a bit in the greenhouse category,” says Pereira. “But we don’t have a lot of volume yet either.” He too flags the issue around the closure of foodservice outlets as a potential issue for the tomato market.
At the same time, shopping habits are changing but not necessarily for the better. Pereira adds that governments have indicated that COVID-19 continues to be widespread and that self-isolation has forced people to buy less frequently. “This is driving people back to their previous buying habits which translates to more people at the grocery stores. For example, stores were packed on Saturday which defeats the purpose of isolation,” he says. Instead, he adds, more frequent buying will support the food chain from a greenhouse vegetable position and ensure consumers are getting the freshest produce.
Photo: TMC Produce Solutions Corp.
As for pricing, it looks to be varied says Blanchard though Pereira notes that pricing right now is firm and similar to last year.
And in the end, both growers say they’re unsure of where things will go from here. “I don’t have any expectations looking ahead,” says Blanchard. “We’re in uncharted waters here like everyone.”
For more information:
Scott Blanchard
TMC Produce Solutions Corp.
Tel: +1 (281) 957-9497
[email protected]
www.tmcproduce.com
David Pereira
Mor Gro Sales Inc.
Tel: +1 (519) 322-1990
[email protected]
http://www.smartybrand.com/