Oversupply Hurting Florida’s Tomato Industry

Web AdminFlorida, Tomatoes

By Clint Thompson

An oversupply of tomatoes this season has led to decreased market prices for Florida producers.

Bob Spencer, president of West Coast Tomato in Palmetto, Florida, said prices for tomatoes are an estimated $5 to $7 FOB (freight on board) compared to desired prices of $9 to $11. It stems from increased acreage.

“The problem we’re experiencing right now is overproduction in our own farming community. We just had too many acres. We’ve just got a very tough market here for the next two or three weeks. It’s going to be hard to get out of our own way,” Spencer said. “Some people added acreage. It’s just one of those markets you have to endure.

Oversupply
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“From the way all the packouts are going and the loads being shipped out of the state, it’s pretty apparent there’s more acreage out there.”

Production soared this season because of increased acreage but also due to ideal weather conditions. Growers are challenged in trying to sell their product right now.

“You get these every now and then and it reminds people that just because you can grow them doesn’t mean you can sell them. Hopefully, during the next planting period, cooler heads will prevail. In our business less is more,” Spencer said. “The problem in our industry is supply and demand. If you add supply, it’s awful hard to keep the price where you need it, if you add production.

“It all comes down to how much yield you get. We’ve had pretty doggone good weather. Everybody’s had good yields. When things are steady, as far as flow of product, everything is pretty calm. But once you add any surges, and we’ve had quite a few, it just takes the steam out of any attempt to raise the market.

“It’s a little tough right now.”