The Association of Users of the Remigio Rojas Irrigation System (AUSRR) finished the experimental planting of the T8 or industrial tomato; a production that will be bought in its entirety by a multinational food company. The profits could reach $4,600 per hectare.
The planting culminated last weekend in the area of Alanje and if it proves feasible, the next planting will involve 100 hectares.
"We finished the transplants now we have to take care of the crop," said the president of the AUSSR, Santiago Esquivel. "I think we have a window for the area, as it requires a lot of labor," said the producer.
According to Esquivel, this is an opportunity for producers because other items, such as watermelon and the melon for export, have presented losses and producers haven't been able to plant them this year. "We have planted this tomato to seek production alternatives and to achieve sustaining the agricultural production," he said.
Producing an industrial tomato will cost producers between $7,000 to $8,000 dollars per hectare. Producers are expected to have yields of 1,200 kilograms per hectare, which means they would be able to cover production costs, said the leader. Additionally, he said, they expect producers would make enough of a profit to encourage other farmers to produce this fruit.
The Nestle company will buy the production and agreed to pay the AUSRR producers a base price of $9.5 dollars and, depending on the performance, the company might pay producers an additional dollar per every one hundred pounds. "It is already sold at $9.5 per quintal but if the yields reach or pass a thousand quintals per hectare, we'll receive an additional dollar per quintal," said Esquivel.
According to the AUSRR, producing one hectare that yields an average of 1,200 quintals costs between 7000-8000 dollars. With these yields, producers would not be paid 9.5 per quintal but $ 10.5 per quintal. Thus, they would achieve a gross sales of $12,600 dollars. Deducting costs (US $ 8,000) would give producers a potential net income of $4,600 dollars.
The experimental planting was performed in three hectares
The approach between the producers of Remigio Rojas and the Nestle company was done through the Ministry of Agricultural Development because of the 80% decrease in the production of this crop within the central provinces, Nestle's main suppliers.
"We have to distribute the items to avoid having the problem we currently have in the central provinces," said the head of the Ministry of Agricultural Development, Jorge Arango. "It's great that the producers from Chiriqui will begin this activity," he added.
The producers of Remigio Rojas will start delivering the tomatoes to the Nestle company in three months.
Source: laestrella.com.pa