WPTC European processing tomato update
The latest update from the World Processing Tomato Council (WPTC) as of October 4 indicates that the harvest is now finishing in most Northern Hemisphere countries. Weather conditions have led to mixed results across regions.
France has processed about 150,000 tonnes. Volumes in the southeast are close to 90% of contracts, while the southwest may only reach two-thirds of the expected production due to the rainfall throughout the 2024 growing season, likely totaling 165,000-170,000 tonnes.
Greece has experienced favorable weather, with the estimate at 510,000 tonnes of processing tomatoes. The harvest is finished in the south and nearly complete in the central regions. The average Brix this season is around five.
In northern Italy, approximately 2.3 million tonnes have been processed, with a final volume expected at 2.4 million tonnes. The season faced rain and lower farmer yields. Conversely, southern Italy has seen a successful season, with over 2.75 million tonnes processed as of September 22, and the final estimate standing at 2.8 million tonnes. The total expected production in Italy is 5.25 million tonnes. However, industrial yields have been lower due to low Brix and the challenges in maintaining high-quality standards in the face of sunburned tomatoes.
Portugal has processed about 80% of the total forecasted volume as of September 30. Tomato quality has remained good until the end of the season, with very few overmature fruits reported. Two factories closed for the season last week, and more are expected to close soon. The final volume is expected to be close to the initial forecast of 1.5 million tonnes.
In Spain, the last factory in Andalusia closed on September 20, and several plants in Extremadura have also started closing. The weather has remained favorable throughout September, and the fruit quality has been excellent. In the northern regions, the harvest is delayed and will continue until early November. It is estimated that nearly 3 million tonnes have been processed, and the total could reach up to 3.1 million tonnes if favorable conditions persist in the north.
Turkey is nearing the end of its harvest, with the main producing regions mostly finished. The Konya region, however, is dealing with minor delays due to localized showers. The crop is approximately 90% complete, with the production forecast remaining unchanged year-on-year at 2.7 million tonnes for 2024.
Turkish sultana prices ease as demand weakens
Turkish sultana prices have eased marginally since the start of the 2024/25 campaign in September, with the Expana Benchmark Prices (EBP) for Turkish type 9 sultanas (FOB Turkey) down 2% to $3,575/MT in the four weeks period to Oct 9.
The sultana EBP has declined close to $500/MT since peaking at $4,060/MT in the first half of July. However, prices have firmed by 43% year-on-year (y-o-y) on the back of a poor harvest in Turkey last year, estimated at 206,000 tonnes, with the crop heavily damaged by heavy rains in May and June 2023. Moreover, the market has been further supported by expectations that supply scarcity will continue in 2024/25.
This year’s sultana production in Turkey is anticipated to reach around 230,000-240,000 tonnes. If achieved, this would be approximately 11% below the five-year average. In addition, Turkey has entered the current campaign with zero carry-in stock.
“We have just returned from Turkey visiting processors and stocks are thin this year. We have seen empty warehouses where stocks were abundant last year. Liquidity to packers is very low and the question is – where is all the dried fruit?” a UK-based trader told Expana in the first week of October.
Despite the production shortfall, prices have eased recently, with the market pressured by soft global demand for Turkish sultanas and raisins. Turkey exported 27,200 tonnes of dried grapes between Sep 1 and Oct 12, 2024, down 24% y-o-y, according to data from The Aegean Exporters’ Association, as buyers approach the market cautiously amid the inflated market prices.
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