Tomato Production Costs Rise in Mexico
28 June 2011 Mexican tomato exports for marketing year 2010/11 are estimated lower than MY2009/10 total exports as unfavorable weather affected production in Sinaloa, according to a recent USDA Foreign Agriculture Service GAIN Report.
Production for MY2010/11 is estimated at 1.81 million metric tonnes and tomato exports for 2010/11 are estimated lower than MY2009/10 total exports of 1.51 MMT, according to the report.
A February 2011 freeze damaged production in the state of Sinaloa. Open field tomatoes in northern Sinaloa were lost almost entirely and the tomato crop in the central area of Sinaloa experienced partial damage. Sources report that, overall, 40 percent of the total production in Sinaloa was lost, according to FAS.
Pest problems, high production costs, swings in both international prices and exchange rates, and limited water availability continue to affect open-field producers.
One factor contributing to the rise in production costs is credit availability as growers cannot obtain loans for tomato production through Mexican banks. However, some producers can get financing for agrochemicals, seeds, fertilizers and other operating capital from export contracts through the United States.
Although there is no official Government of Mexico forecast for overall tomato production for MY2011/12, good weather, attractive international market prices, as well as a favorable exchange rate will encourage production, according to the report.
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