Spain's Tomato Harvest Exceeds EU Quota

MADRID - May 30/02 - SNS -- Spanish tomato production in 2001/2002 was 4% higher than the previous year's harvest, exceeding the EU quota by 225,000 metric tons (MT).

A generous EU program for processing tomatoes caused the production rise in 2001/2002, something that is now cutting processing subsidies by 10% as a penalty for overproduction and depressing prices. However, despite the lowered subsidies, the 2002/2003 crop is expected by the USDA to be just as large as last year's.

The total crop amounted to 3.73 million metric tons (MMT); of this amount, some 2.27 MMT were consumed fresh and 1.46 MMT were delivered to processing plants. The high production was due to good weather conditions and larger planted area.

If the production quotas for processing were removed, Spain could increase production dramatically. Despite the penalty of 10% in the subsidy for processing tomatoes (other than whole peeled tomatoes) the production for processing remains profitable. Improvement in mechanization, as well as new varieties and technologies, are increasing yields and productivity. Production of canned tomatoes under the new CAP for processing tomatoes will be located more and more in Extremadura, a region in western Spain where land and water are abundant.

In 2001, Spanish exports of fresh tomatoes rose by about 14% due to lower prices in production areas. The bulk of exports went to other EU markets, with Germany, Netherlands, the United Kingdom, and France being the main destinations. Imports were relatively unimportant, supplied mostly from Morocco and France. Exports of fresh tomatoes should continue to expand during the next few years as producers further specialize in meeting the stringent requirements of EU supermarkets. According to producers, the production of "cherry tomatoes," a product much valued in Northern Europe, could rise another 10% in 2002.