Extremadura's Union of Farmers and Ranchers stated that tomato producers and the processing industries were currently negotiating the contracts for the more than 1.80 million tons that will be produced in more than 24,000 hectares in the Extremadura region in this campaign.
The organization has calculated that, given the rise in input prices, such as fertilizers, phytosanitary products, or diesel, production costs will not be below € 105 per ton. This, in fact, is the price that has been agreed in the tomato contracts in California as the contracts signed in this State are at $ 105.00 per short ton.
The contracts in Italy, the other important tomato-producing country in the European Union, are currently being negotiated at these price margins, La Unión stated.
With the entry into force of the amendments approved in the Law for the Improvement of the Food Chain, which establishes that contracts may not be signed at prices lower than production costs, the sector is waiting for the Junta de Extremadura's Price Observatory to publish the cost study that will be available for this campaign as reported by Minister Bernal.
La Unión Extremadura warned in a statement that it will not allow a single tomato contract to be signed below € 105/tons in the current campaign. "We'll report any negotiation that doesn't follow these parameters to Aica so that the parties that don't comply with the law are sanctioned."