Considering it has been a staple item on most grocery store lists for years, the tomato category showed remarkable growth in the 1990s.
In fact, Dick Keim of Oceanside Tomatoes in Oceanside, Calif., said just a few years ago, round vine ripe tomatoes sold in two or three layer cartons represented 90 percent or more of the firm's business. Today, what Keim calls "specialty tomatoes" make up about 25 percent of the firm's business and even the vine ripe round tomatoes are sold in an array of packages that weren't available just a few years ago.
"The tomato category has grown tremendously," he said. "The mature green has decreased in volume. The consumer wants a vine ripe and there is a big increase in the specialty category."
Keim said the specialty category is a catch-all for anything that isn't the traditional round tomato. Included would be well-known tomato products such as the roma and cherry tomatoes. But also in that category are newer items such as yellow tomatoes, cluster tomatoes, heirloom varieties and grape tomatoes.
The last four items are each typically priced quite a bit higher than cherry tomatoes, romas or the traditional round tomato, but consumers are flocking to them. And they are causing a stir for growers and retailers alike.
Possibly the biggest change in the business has been the proliferation of tomato greenhouses. Just a decade ago, tomato greenhouses and the accompanying hot house tomatoes were the domain of Holland and Canada. The tomatoes were imported into the United States in relatively small volume and returned a pretty good price. But in recent years U.S. and Mexican growers have fallen in love with the greenhouse concept and now there just may be an oversupply of greenhouse grown tomatoes.
Of course, the greenhouses produces a very uniform, vine ripe round tomato, but they have become increasingly well known for the cluster tomato. Typically it is sold with three or four tomatoes clustered on a vine. "It is really the aroma that sells that tomato," said Keim. "The stem has an aroma that the consumer likes. They are getting something different and it seems fresher (because of the stem)."
The item sells quite well, but the price has been steadily dropping to the point where it is diffficult to see how a profit can be made. "It (greenhouse production of cluster tomatoes) doesn't pencil out," Keim said. "We think they are selling for way below production costs."
That was one of the reasons Oceanside Tomatoes did not grow any cluster tomatoes for the 2000 season. While the cluster tomato is usually grown in the greenhouse, there is nothing inherent in that product that makes it impossible for outdoor production. In fact, Oceanside Tomatoes grew quite a few in 1999 and did quite well with them. "We actually think the field grown cluster tomatoes are better. They taste better." he said.
Tomatoes
Volume:
Southern California is increasing
volume, but peak won't come
until the fall.
Varieties:
Category continues to expand,
but there will be fewer field-grown
cluster tomatoes this summer and fall.
Newest Trends:
Yellow tomatoes and grape tomatoes
Merchandising Tip:
Expand shelf space by adding
different varieties.
Handling Tip:
Don't Forget - Don't Refrigerate.
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But the economics of the situation, including the high flying American economy, convinced Oceanside that it should not plant any in this year. In the first place, the price keeps coming down and they are a labor-intensive crop. It takes a lot of labor and we thought our labor pool could be better used with other varieties."
Keim explained than an 80-person harvest crew can pick many more tons of vine ripe round tomatoes than cluster tomatoes in the same time period. "And this year, with the economy so hot we think we may have a problem with the amount of labor we can get."
Like elsewhere in the country, Southern California has a shortage of workers so Keim said the agricultural workers may move into other industries, such as foodservice. "In our area, every restaurant has a help wanted sign in the window."
So far, early in the season, the company has had no problem, finding workers but when peak production rolls around in the fall and the labor needs double, Keim said workers may be hard to find. Consequently, the company decided to plant varieties that needed the least amount of workers.
Labor is also the reason Oceanside's grape tomato production is in Baja California. Grape tomatoes, which are small tomatoes just like the name implies, are another very labor-intensive crop. Because of this, Oceanside grows them in Baja California where labor is cheaper and more plentiful.
The yellow tomato is another specialty tomato that is doing very well these days. Keim said it brings a premium price but that price is well deserved. "It is a good addition to the tomato category, but it doesn't produce nearly as well as the round vine ripe tomatoes. And you have to grow it for large fruit, because you can hardly give the small ones away."
But again Keim said his firm is increasing its production of yellow tomatoes because the demand is there.
Rounding out the category so to speak are cherry tomatoes and romas, which appear to be headed in opposite directions. Cherry tomatoes are garnering smaller shelf life maybe than ever before as they are being pushed out
by the many specialty varieties, especially the grape tomatoes.
Romas, on the other hand, have seen their volume increase in recent years and that trend continues. "The roma is very popular and trendy right now. There are a lot of recipes being created for the romas and they are being used in many versatile ways," Keim said.
The 2000 season is shaping up much better than in 1999. Doug Lowthorp of Deardorff-Jackson Co., Oxnard, Calif., said great growing conditions throughout the country last year brought on an oversupply situation and the price suffered all year. He said the 2000 season has gotten off to a good start and he is expecting a much better year pricewise than 1999.
Deardorff-Jackson grows their tomatoes on the San Clemente Ranch in the confines of Camp Pendleton, which straddles the border between Orange and San Diego counties. Though the land seems to be safe from urban encroachment for the time being, Lowthorp said that isn't the case for all Southern California growers. North San Diego County continues to expand putting a strain on the available land, and the same thing could be said for Orange County, where the major tomato production area is the Irvine Ranch. The Irvine Ranch continues to be developed with houses and shopping centers being the development of choice. One would guess that it is only a matter of time before agricultural production is a thing of the past in that area.
As that happens more and more growers will probably move to Mexico. In 1999, Meyer Tomatoes of King City, one of the largest mature green growers in the state moved all of its production to Mexico. While Keim of Oceanside acknowledges that urban encroachment is a consideration, he said his firm has not increased its production in Mexico. "Sure you have cheaper labor down there but you have other problems that we just as soon not deal with."
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