Farming News - shortage of Iberian tomatoes to cause tomato goods price rises
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shortage of Iberian tomatoes to cause tomato goods price rises
22 June 2011
Unseasonably heavy rains in Spain and Portugal in May saw the price of tomatoes rise drastically, after the Iberian yield fell by 20% due to bad weather and reduced plantings following EU subsidy cuts.
However, now the shortages look likely to have a knock on effect on the price of processed tomato products such as tomato puree, tomato juice and baked beans. The shortages coincide with a recent rise in demand for processed tomatoes, according to The Grocer.
In May, when the shortages affected fresh tomatoes, prices rose by as much as 61%, after market analysts Mintec announced concerns that "unfavourable weather is affecting shelf life consistency."
Tomatoes are the latest commodity to experience such a price surge as worldwide food demand grows and unpredictable weather has caused crop failures throughout the world.
Mintec revealed that, in addition to wheat and barley after the drought across Northern Europe this spring, butter, potatoes and even beetroot prices are also creeping upwards.
According to the Office for National Statistics, UK food inflation currently stands at 5.3%.