Source: AgriLife Today
Tomato prices could increase as much as 40% to 80% this year if the U.S. Department of Commerce withdraws from the Tomato Suspension Agreement by May 7. This will affect Texas consumers and the produce industry significantly, according to experts.
Industry leaders were updated on the implications at the Texas International Produce Association Viva Fresh Show in San Antonio. The agreement sets a price minimum, or price floor, for imports and provides other protective trade measures.
Dr. Luis Ribera, Texas A&M AgriLife Extension Service economist, College Station, was part of a media briefing at the show. Ribera said 52% of Mexican tomatoes come through Texas.
A study conducted by economists at Arizona State University finds that during other periods, such as winter, prices for certain varieties like vine-ripened tomatoes, tomatoes on the vine and Romas could rise more than 85%, according to an analysis, which relies on data from AC Nielsen.
Dramatic price increases could have far-reaching impacts, Ribera said. He said consumers accustomed to dining at Mexican food restaurants and enjoying fresh salsa with chips and guacamole could pay higher prices.
Ribera said U.S. consumers spend 6.3% of their annual income on food. That could rise if tomato prices escalate. Consumers might also have to “pay up” for other varieties of tomatoes to have a fresh product available on the dinner table.
Learn more about the importance of agricultural trade on the Texas and U.S. economies.
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