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DailyFinance  Feb 1  Comment 
Filed under: News, World News, Weird News This may turn you off Bloody Mary's forever. When buying tomato juice to make the cocktail, U.K. woman Jade Smith found what she called a "vile object." She shared it on Facebook: "So I purchased...
DailyFinance  Jan 31  Comment 
Filed under: Lifestyle, Food, Recipes Welcome to Best Bites, a twice-weekly video series that aims to satisfy your never-ending craving for food content through quick, beautiful videos for the at-home foodie. Check back on Tuesdays and...
guardian.co.uk  Jan 27  Comment 
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The Economist  Jan 26  Comment 
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The Hindu Business Line  Jan 23  Comment 
Incentivises exports by offering up to 25 per cent of the overall transport cost
guardian.co.uk  Jan 20  Comment 
Snow across Spanish farming areas means tomato, lettuce, pepper and celery shortage - and higher prices - may last into spring British shoppers have been told that shortages of courgettes, aubergines and many salad ingredients, including lettuce...




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Tomatoes prices have followed in the footsteps of many other foodstock commodities such as wheat and corn for many of the same reasons: increasing prices for energy, farming chemicals, water, and labor have all contributed. A key trend driving the overall price hike for farmed commodities is the rise in corn production for ethanol; as farmers get paid higher prices for corn, many switch their land use to produce this energy feedstock, thus lowering the supply of other crops.

As a result, the price per ton of tomatoes has gone up from about $50 per ton from 2001-2005 to $63 per ton for the 2007 summer crop. [1]

Companies Hurt

  • H.J. Heinz Company (HNZ) sells 650 million bottles of ketchup a year and tomatoes are a key ingredient. Heinz's overall input costs--including corn syrup, another major ingredient--have been rising, and the company has not passed on the entire increased cost to consumers (i.e., Heinz's gross margins are shrinking)

Companies Benefiting

  • Monsanto Company (MON) purchased the then-biggest seed company in the world for $1 billion in 2005. Semini controlled about 23% of worldwide tomato seed market in 2005. Since then, tomato seed costs have tripled, from $300 to $900 per 100,000 seeds. Monsanto benefits from the increased prices of almost all farmed commodities, as the company produces a range of farming related products, including seeds, fertilizer and agri-chemicals.
  • Deere & Company (DE) is another company that benefits from a rise all agricultural commodity prices. The company produces machines used in the agricultural business.

References

  1. California Tomato Growers Association
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