Italian processed tomato prices have continued to fall, down 15 per cent year on year due to the ample supply of processed product in the market.
As a result of the low price levels reached, the industry is reacting by reducing processing operations for the 2016-17 season to limit supply of processed tomatoes, with the aim of raising the price of Italian produce.
Total Italian tomato production is forecast to reach five million tonnes in 2016-17, unchanged year on year. Weather conditions have been good so far this season, Mintec reports, favouring tomato crop growth despite reports of dry weather conditions in some of the tomato growing regions.
The amount of tomatoes sent for processing for next season is forecast at 2.5m tonnes in 2016-17, around 6 per cent lower than 2015/16.