Processing Tomatoes: Peeling Away Inventories

High inventories, low prices and exports: US processing tomatoes are in a jam.

Report Summary

In 2016, US processing tomato acreage, production and price declined—and will continue to do so until excessive inventories are reduced over the next two to three years. US exports have dropped as a result of the strengthening US dollar, causing processors to move products overseas at substantially lower prices.

High inventories, along with weakened global demand, will result in lower profits, if not losses, for most of the US sector. Increased processing capacity and low California production spark the need for consolidation among processors.