The Economic Times  9 hrs ago  Comment 
Food accounts for 46 percent of India’s consumption basket, which means it plays an outsize role in determining headline inflation.
Clusterstock  Aug 15  Comment 
The summer movie season is supposed to be the time of year when movie studios and theaters cash in. The big event movies are placed in the summer months to specifically draw in the kids who are out of school. In the past, that's led to a period...
The Hindu Business Line  Aug 14  Comment 
As it rolls out frozen prawns in select cities,ITC has lined up a few more product offerings — potatoes, tomatoes and onions — in the packaged foods category across the frozen, chilled, cool and ambi...
NPR  Aug 7  Comment 
From Florida tomato growers to Montana cattle ranchers, some bruised by NAFTA think it has favored agribusiness over small-scale farms, lowered environmental standards and made it harder to compete.
The Economic Times  Aug 5  Comment 
Wholesale tomato prices touched Rs 70 per kilo in end-July, on the back of a severe supply shortage in vegetable mandis.
Reuters  Aug 4  Comment 
A ban on Turkish tomato imports that was motivated by geopolitics has inspired Russia to become self-sufficient in tomato production, a windfall for companies who invested in the technology that would increase year-round production.
The Economic Times  Aug 2  Comment 
The central bank noted that administered prices of LPG and kerosene are set to rise.
New York Times  Aug 1  Comment 
A look at five movies that received a “0 percent fresh” rating on Rotten Tomatoes.
The Economic Times  Aug 1  Comment 
Tomato supplies are likely to rise in two weeks. “Market will begin to cool when tomatoes from the Nashik belt begin arriving from August 15,” said a trader.




RELATED WIKI ARTICLES
 
TOP CONTRIBUTORS


Error creating thumbnail
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
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki