Thursday, June 10, 2010

Florida tomatoes: from shortage to overproduction

Cold temperatures in January and February killed many tomato plants and caused a shortage that pushed the average wholesale price of winter tomatoes to $30 for a 25-pound box by early March. Grocery stores raised their prices in turn, with some charging nearly $4 a pound. Restaurants had been taking them off the menu or charging more for a tomato on a sandwich.

Producers multiplied plantations to assure a steady supply, the spring delayed the growth of plants and since the arrival of warmer time, several cycles ripened at once, causing a glut.

More production and less demand entailed a price collapse. To break even, farmers need to get $8 to $9 per 25-pound box of tomatoes; right now, they're averaging only about $4.75.

USDA announced it would order an additional 31.5 million pounds to help farmers and provide additional produce through federal food assistance programs.

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