Higher prices for produce unavoidable
“Commercial movement of tomatoes is slower in summer due to all the backyard harvests,” says Sam Mag…“Commercial movement of tomatoes is slower in summer due to all the backyard harvests,” says Sam Maglio with Maglio Companies.” Now that we are heading into fall and homegrown supplies are starting to come down, the industry will see demand picking up again.”
Nearing the end of crop cycle California
Supplies are currently on a seasonal downward trend. The Northeastern part of the country is coming to a close and it will take a few more weeks for Florida to come into production. In the western part of the US, California is the major source of production in summer, but volumes are impacted by the drought. Production in Baja California is facing some quality issues due to recent rains.
Increased costs of water and labor
“I believe the era of ‘cheap’ food is coming to an end,” said Maglio. Production costs, including water and labor, are rising faster than the rate of inflation. With California being responsible for close to 40 percent of domestic tomato production, scarcity of water and labor will impact tomatoes as well. “We will see food inflation outpace the general economy rates over the next several years,” Maglio added. At the moment, high prices are offset by lower fuel prices and this is the time to make plans for how to feed the expanding world population.”
Maglio Companies sources its tomatoes from growers of all sizes across North America with the bulk of supplies grown in the field, either in open fields or under shade cloths. The company also grows tomatoes in its own eleven hoop houses in Milwaukee, WI for the local market. Supplies however are light as this is the first year of production.