Business Journal: Tomato Growers Seeing Profit
Tomato growers in the Sacramento Valley are seeing red … and they’re happy about it.
Tuesday, March 20, 2007
Look anywhere and there’s more salsa, pizza and good old spaghetti with tomato sauce. To meet demand, canneries will pay record prices this year for the processing tomatoes grown in the Sacramento Valley. So far the going price in new contracts will be $63 per ton, 8% higher than last year. Because of poor harvests in the past, inventories of processed tomato products haven’t been so low since 1998, which also boosts the demand for tomatoes. But corn is king in ’07. Due to the rising demand for ethanol, corn futures are 58% higher than average U.S. farm price last autumn.