Mexican Tomato Paste Makers Squeezed

WASHINGTON - Jun 4/06 - SNS -- Tomato paste production in Mexico has become increasingly less profitable over the last four years, according to a recent report from the U.S. agricultural attache for the country.

"Increased input costs, primarily higher fresh tomato prices, and lower international prices, have forced the industry to import tomato paste rather than produce it domestically," the agricultural attache said.

"Of the paste manufacturers in Mexico, only a few produce paste for the domestic market. The rest produce for export, mainly to the U.S. Tomato paste production data is not readily available, as only a few producers provide accurate - and then only -- partial data."

Tomato paste production for 2006-07 and 2007-08 is forecast to continue at very low levels due to expectations that most domestically grown tomatoes will be channeled into the fresh market, and international paste prices will remain low.

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