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Amid unexpected surplus, tomato prices plummet

Tomatoes are left to rot in a field after a March cold weather snap in Plant City killed many of the plants. Now, farmers have an unexpected surplus amid dropping prices.

Associated Press

Tomatoes are left to rot in a field after a March cold weather snap in Plant City killed many of the plants. Now, farmers have an unexpected surplus amid dropping prices.

MIAMI — Just months after a cold snap in Florida killed many tomato plants and sent supermarket prices skyrocketing, farmers have an unexpected surplus and prices have plummeted.

For many Florida tomato growers, a terrible season is ending with an impossible choice — harvest their crops at a loss of almost 50 cents on the dollar, or cut production costs by leaving the fruit to rot on the vine.

Cold weather 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.

Rather than pay up, consumers became used to doing without. Now, as the surviving plants mature, there are more tomatoes than farmers can sell.

"Restaurants had been taking them off the menu or charging more for a tomato on a sandwich … and people just stopped eating them," said Reggie Brown, manager for the Florida Tomato Committee. "Now we need everyone to go out and buy some."

The U.S. Department of Agriculture initially ordered 1.3 million pounds of tomatoes, but Brown said that wasn't enough when Central Florida is producing 6 million to 8 million pounds daily.

On Friday, the USDA announced it would order an additional 31.5 million pounds at a cost of $6 million to help farmers and provide additional produce through federal food assistance programs.

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, said Jay Scott, a professor of horticultural science at the University of Florida. Many grocers have dropped their prices, too. For example, Publix supermarkets through are selling Florida vine-ripened tomatoes for $1.29 a pound, almost a 70 percent decrease from only a few months earlier.

Ed Angrisani, co-owner of Taylor & Fulton Packing in Palmetto, said he doesn't know how much longer his company will survive.

He has worked at the tomato farm for almost 30 years and been an owner for three. His operation is abandoning its crop for the first time since he's been there. As for the USDA's efforts to bail out the Florida tomato industry, Angrisani said it's only a drop in the bucket when his farm alone is producing an average of 800,000 pounds of tomatoes a day.

"The government has not been our friend. It's like they threw us this bone, and it's not even a bone … it's a slap in the face," Angrisani said.

Angrisani added that the government bid process is so full of red tape, it can take weeks for an order to actually go through — time he doesn't have to waste.

Abandoning his crop is not an option for Billy Heller, CEO of Pacific Tomato Growers. The Palmetto-based farm is one of the largest in the state. Heller said the farm hopes to make up for its losses here by selling tomatoes planted in California and Georgia at a higher price once the market stabilizes.

"All tomato farmers are getting killed. … These are very difficult times, but there's nothing we can do," he said. "Once we put (the plant) in the ground, we've got to see it through.

"This is what we do; this is what feeds America."

Amid unexpected surplus, tomato prices plummet 06/04/10 [Last modified: Friday, June 4, 2010 9:32pm]
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