Processed Tomatoes Up in Chile

WASHINGTON - Jun 4/06 - SNS -- Chilean tomato growers have slashed land devoted to processed tomato production in recent years, according to a recent report from the U.S. agricultural attache for the country.

Total planted area of tomatoes for processing has fallen significantly since 2003, from an estimated 11,000 hectares to only 8,000 in 2006.

A slight increase is expected again in 2007 as production in the northern hemisphere, mainly in the US was affected by adverse weather conditions resulting in a significant reduction in output. As a result, the industry in Chile expects prices for tomato paste to recuperate and thus they are increasing production again in response to an expected increasing demand.

Industry sources indicated that in the long run planted area is not expected to vary significantly for the coming years, as the tomato processing industry is reportedly producing tomato paste for niche markets and for long-term customers.

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