Benzinga  Apr 14  Comment 
U.S. regulators regard Herbalife Ltd. (NYSE: HLF) as a “multi-level marketing scheme,” but Bill Ackman is beyond euphemisms. To Ackman’s Pershing Square Holdings Ltd, the global nutrition company is a “pyramid scheme.” And he’s so...
DailyFinance  Apr 10  Comment 
Filed under: Lifestyle, Food, Food & Drink On those days when you can't pick fresh tomatoes and basil straight from your backyard garden (sorry, Ina), store-bought is the next best thing. Yes, sometimes you're craving a big, saucy dish of pasta...
New York Times  Apr 9  Comment 
Some feel treated as second-class citizens in the European Union, and the populist wave has reached their supermarket shelves.
NPR  Mar 30  Comment 
President Trump has called NAFTA a "catastrophe" and threatened to impose a border tax on Mexican imports. How does that impact produce companies with operations on both sides of the border?
The Hindu Business Line  Mar 28  Comment 
Sparsh Bio farms the exotic crop in arid Telangana using hydroponics
MarketWatch  Mar 9  Comment 
Top 10 list for most pesticides includes strawberries, spinach, pears and tomatoes.
newratings.com  Mar 7  Comment 
WASHINGTON (dpa-AFX) - Researchers at The Ohio State University have discovered that food waste can partially replace the petroleum-based filler that has been used in manufacturing tires for more than a century. In tests, rubber made with the new...
FierceBiotech  Mar 7  Comment 
FierceBiotech’s Rotten Tomatoes mbernhart Tue, 03/07/2017 - 08:16
Forbes  Feb 24  Comment 
'Get Out' snagged a boffo $1.8 million in Thursday preview grosses and it enters the weekend with 100% on Rotten Tomatoes.
The Economist  Feb 22  Comment 
THERE exists a genre of information which might be termed “little-known facts that everyone knows”. It is the sort of tidbit you expect to amaze your friends at a dinner party, but which is greeted with rolled eyes. Casinos don’t have clocks...




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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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