The Sauce Source
Crop Update
July 2016
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The Sauce Source from Paradise

California Crop

The CTGA (California Tomato Growers Association) has agreed to a price of $72.50 per ton for tomatoes this season. This is 9.4% below the 2015 price of $80.
Tomato Pricing Over the Past 8 Years

This year 262,000 acres of tomatoes have been planted, with a forecasted 13.0 million tons of processed tomatoes being harvested. This represents a decrease of 9.1% from 2015 when 14.4 million tons were harvested.

Harvesting has already begun, the hot weather has allowed for an earlier than usual start this year.

The 2016 crop looks promising. Heat, cold, disease, rain, water availability, transplant quality and a multitude of other factors can always affect the final production and subsequent yields.

California Tomato Price & Production History

2016 will be the year that California inventories come more into balance.

Worldwide Supply & Demand

The global forecast is 42.0 mm (short tons) vs. 45.6 in 2015, a decrease of 7.9%. This is primarily due to the rain and below normal temperatures that Spain and other countries have been experiencing.

The California crop makes up 31% of this total volume. California growers typically have the highest yield and highest solids in the world due to their growing technology and skill.

China is the second largest processing tomato producer worldwide, followed closely by Italy. The other leading producing countries are: Spain, Turkey, Portugal, Iran and Brazil, according to the World Processing Tomato Council.

2016 Estimated Production of Tomatoes for Processing by Country
World Production vs. Consumption

US Exports

US exports have been negatively impacted by the strong dollar. With Britain leaving the EU, California is waiting to see the impact on further currency results.

Tomato Paste Exports
Tomato Field

Morning Star is the source for Paradise’s processed tomatoes. This ensures Paradise products always have the highest quality tomatoes, there are no issues with product availability, and our suppliers’ sustainability efforts align with ours.

The tomato processing begins within four hours of the tomatoes being picked from the vine. Only 100% California-grown, vine-ripened tomatoes picked at the peak of freshness are used for Paradise sauces.

About Morning Star

• Morning Star is the largest tomato producer in world

• Accounts for 31% of California tomato production

• Represents 11% of world production

• Widest geographic diversity of tomato sourcing to ensure reliable product supply – tap into 16 of 17 California tomato-growing counties

• Resources solely dedicated to tomatoes

• Broad involvement in global industry and tomato research
Morning Star Growing Counties vs. Other Processors

From 2010-2015, Morning Star increased production by 40%. During that time, they also:

• Increased the efficiency of water usage in their factories by 47%.

• Morning Star growers have increased the acreage of drip irrigation from 60% to 76%, increasing water efficiency in the fields by 30% (water used/acre).
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