Market Minute: Opportunities from improving tomato supplies

Severe winter storms and freezes in Florida significantly reduced spring tomato supplies, while adverse weather in Mexico limited the market’s ability to offset the shortfall. As a result, tomato prices rose sharply, increasing about 15 percent in March and nearly 40 percent in April compared with the same period last year. Rising diesel and transportation costs added further pressure, much of which was ultimately passed through to consumers at the supermarket produce department.

Market conditions are now beginning to improve: quality is strong, and new fields are coming into production with more consistent harvesting volumes. As supplies increase, the market should begin to ease. Because tomatoes remain a high-demand produce staple for supermarket shoppers, improved availability can support strong promotional movement and higher-volume sales.

After two months of limited availability, this is an opportune time to feature tomatoes in ad promotions. Shoppers who have recently paid elevated prices are likely to view advertised tomato offerings as a strong value.

With tomatoes purchased by a large share of shoppers, displays should be sized for impact and merchandised to highlight the full range of available varieties. Grape tomatoes continue to be a leading segment within the category and are well suited for cross-merchandising with fresh basil, garlic, salad kits and dips. Plum tomatoes also represent a meaningful share of category volume and should be positioned accordingly within promotional and display plans.

Before finalizing any advertising commitment, consult with your tomato suppliers to confirm available volume and suitable market pricing.

What do you think? Email me at ronprocon@gmail.com.

This article originally ran on The Produce News.