A leading ingredients expert has warned that the tomato market is set to be more expensive than last year due to the increased cost of fresh tomatoes, tinplate and energy, together with low yield from this year’s crop creating a lack of stock.
Wholesale prices for tomatoes are up 20% already and are predicted to grow as much as 50% as the 2021 crop is harvested and enters the market, with a significant proportion of this cost increase likely to be passed on to consumers.
Jason Bull, Director at ingredient’s supplier Eurostar Commodities, said: “Prices are increasing more than 50% compared to pre-season 2020. Suppliers in Italy have now started to offer prices for this year’s new crop, asking on average 20% more than last year. In foodservice in the last few months, prices have not increased proportionally since the demand was low. But now the market is re-starting, and prices are going to the level we expect for next crop.”
The shortage and price increase is expected to predominantly affect tinned tomatoes that are a key ingredient on supermarket shelves.
Global food prices rose by the biggest margin in more than 10 years last month, heightening fears that inflation initially stoked by the pandemic is accelerating.
NAM Implications:
- Anyone not anticipating a 10% price hike on most products…
- …needs to re-anticipate.
- For ‘increased cost of fresh tomatoes, tinplate and energy’
- Please read: …’most ingredients, materials, energy and labour…’
- The government need higher inflation to dilute Lockdown debt…
