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California: price agreed to USD 84.50 per ton for 2021

25/03/2021

2021 Season
Press release
CTGA
California,
North America
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CTGA announced on March 23, 2021 it has reached the 2021 Price Agreement with all California processors. 

The CTGA has agreed to USD 84.50 per ton (Euro 78.9/mT) with all processors for 2021. This is a 5.6 % increase on previous season reference price.
1. Campbells Soup Company
2. ConAgra Brands, Inc.
3. Del Monte Foods, Inc.
4. Escalon Premier Brands, Inc.
5. Ingomar Packing Company
6. Los Gatos Tomato Products
7. The Morning Star Packing Company
8. Neil Jones Food Company
9. Stanislaus Food Products

Morning Star considers USD 2.00 (of the USD 84.50 per ton) to be a 2021 water cost allowance. Everyone has their reasons, of course. CTGA considers USD 84.50 to be fair and reasonable Base Price for the industry, growers and processors alike.

Late Season Premiums are as follows (same as last year):
   9/15 – 9/21 USD 0.00 per net ton
   9/22 – 9/28 USD 4.00 per net ton
   9/29 – 10/5 USD 8.00 per net ton
   10/6 – 10/12 USD 12.00 per net ton
   10/13 – end USD 16.00 per net ton

As a reminder, CTGA reached a 2021 Organic price agreement of USD 136 per ton (Euro 126.9/mT) with the following Processors:

  • Campbells Soup Company
  • ConAgra Brands, Inc.
  • Del Monte Foods, Inc.
  • Escalon Premier Brands, Inc.
  • Ingomar Packing Company
  • Los Gatos Tomato Products
  • Neil Jones Food Company

Also, CTGA has reached agreement with Pacific Coast Producers at USD 150 (Euro 127/mT).

Term changes included in the agreement:
• Double dock on green after 3%
• Processor and grower mutually agree on tons per acre. Processor has first right of refusal on excess ton. If processor does not need tons, grower can try and move them to others for organic price. If grower cannot find another organic home, the contracting processor will take tonnage at conventional price.
• The remaining terms are the same as the previous year.

CTGA will continue to negotiate with Morning Star to reach resolution on the 2021 Organic Price.

Some complementary data: 1 USD = 0.8467 Euro (Val. March 25, 2021)

Source: CTGA

Further details in the attached document:

Download PDF file
Download PDF file

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