2017: the AMITOM and worldwide processing

2017: the AMITOM and worldwide processing

According to information available mid-March, processing intentions within the AMITOM (Mediterranean Association of Tomato Processors) should amount to close on 16.5 million mT of raw tomatoes this year.
If nothing disrupts the crop, production is due to increase by 485 000 mT (+3%) compared to last year's results (16 million mT), or approximately the equivalent of Greece's production in 2017. If it is achieved, this result will fit perfectly in continuation with the operational levels of the past three years.

Since 2014, which is when the euro weakened against the dollar and therefore energized European competitiveness, the level of operations has noticeably increased within the AMITOM – particularly in Spain and Portugal – with a total average production over the past four years (including 2017) that is 17% higher than over the period running 2006-2013. At the same time, the AMITOM slightly increased its share of operations on a worldwide scale, without however recovering the role it used to play on the global commercial scene before the emergence of China and the dynamic development of California. The production share held by the AMITOM at the worldwide level, which was estimated at more than 50% in 1998/1999, progressively diminished under the effect of the progression of Chinese processing, to the point of only accounting for approximately 40% in 2006/2007. The 2008/2014 period, which was characterized by the emergence of US exports on the international scene and the progressive weakening of Chinese operations, was a phase of stabilization for Europe's share of the business, at around 39% of the worldwide total, leading to the notable recovery recorded in the past three years. In 2017, overall production in the 15 countries that currently make up the AMITOM is expected to account for slightly more than 43% of the world's production (see the infographics at the end of this article).
 
During the next season, half of the volumes planned within the AMITOM will be processed in Italy (5 million mT, 30% of the AMITOM total and 13% of the global processing intentions for 2017) and in Spain (3.2 million mT, or 19% of the AMITOM total and 8% of the global total). Turkey, Portugal and Iran are the only three other countries of the AMITOM to process more than 1.5 million tonnes this year, with Tunisian, Ukrainian and Algerian production prospects being recorded at between 500 000 and 700 000 mT.

In the EU specifically, processing prospects for 2017, stated at 10.75 million mT, virtually carry over (+2%) the results of 2016 (10.68 million mT). The only really significant variation concerns the planned increase of 11% in Spain, which should take the total processed volume of this country to a record level of 3.2 million tonnes this year
For the record, it should be noted that this processing data for the EU, which has been collected by the AMITOM, is noticeably different from the information published by the European Commission last December, according to which processing in the EU was expected to absorb 8.8 million mT of raw tomatoes in 2017 (see the table in the appendix published along with the web version of this article).
 
Some complementary data
The proportion of the AMITOM production on the worldwide scene has been successively affected by the emergence of China and by the development of Californian operations, before profiting from a slowdown in the operations of these two competing regions and from a gain in competitiveness due to currency exchange rates.

AMITOM production compared to the rest of the world: over the past eleven years, the CAGR (compound annual growth rate) for the production of AMITOM countries has been close on 2.2%, while it only reached 0.6% in the rest of the world. In total, worldwide processed production grew at an average annual rate of 1.2%.

Appendices/Annexes
Relative shifts in the different components of AMITOM production: Italian domination has been severely challenged in recent years, particularly by the Portuguese and Spanish industries, which have undergone spectacular development.

For the record: Processing data published by the European Commission at the end of 2016 announce a regular decrease in the level of operations over the next 10 years. EU figures for past years show a sharp contrast with actual data recorded by professional organisations.