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Hakan Turan, Chairman of the Board of Directors of SALKONDER (Tomato Paste, Frozen and Canned Food Manufacturers Association) evaluated the new tomato paste season…
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As you know, tomato paste harvest has started in the Aegean region. We estimate that the total harvest will be close to 3 million tonnes due to the high cultivation areas this year. Only 40% of the amount of tomato paste to be harvested has been contracted by tomato paste factories and the balance has been planted for free sale (spot) as preferred by our producers. Contracts were made between companies and producers between January-March 2024 and prices were realised as 3,300-3,500 TL/ton without brix for field delivery.
With the start of the season, industrialists have started their contracted purchases by complying with the prices mentioned above and the price of tomatoes planted outside the contract and purchased at the prices formed in the free market is approximately 2,000-2,300 TL in field delivery. These prices are far from satisfactory for the producer and if the prices fall further, there is a possibility that the tomatoes will be left in the field due to very high harvest labour. We hear the complaints of these producers face to face or in the press and social media.
The solution to these variable prices, which occur every year due to supply-demand imbalance, is through 100% contract farming. We are constantly experiencing periods when our producers’ planting with the expectation that the prices formed in the free market may be realised above the contract prices result in low prices or, on the contrary, when low planting is made, very high costs are incurred for the industrialists. A measure to be taken to encourage the industrialists and producers to make 100% contracts will be a solution to this issue.
Apart from this, the stagnation in the domestic market in tomato paste and tomato products this year and the stocks held by the companies, access to finance and the hike in finance costs, the failure of the exchange rate to meet the increasing cost rates and the quota applied in exports have led to the loss of many customers and for all these reasons, the production demand of our industrialists is still low. The measure to be taken to raise our chances of competition in exports, which will encourage the industrialists to boost production and thus boost the need for tomato paste demand, will be a solution at least for this season…
Source: www.tgdf.org.tr
