Spain, 2022: price agreement at EUR 102 per tonne in Extremadura

Tomato growers and processors in Extremadura have set the price of a tonne of tomatoes at EUR 102 for the next season, a remarkable increase of EUR 24 over the price granted in the 2021 season, which averaged around EUR 78 per tonne. The agreement comes at a time when production costs (electricity, seed, fertilizer, transport, etc.) have been undergoing a sharp increase, reaching at times 30%, even 50% in some cases (see related articles below), a fact that is likely to considerably reduce the profitability of the crop.

This difficult situation led farmers to ask the industry a few weeks ago to increase the price of fresh tomatoes to around EUR 105, in order to cover the high costs of cultivation. With this agreement, representatives of the sector are satisfied, like Herminio Íñiguez, president of the Association of Farmers and Breeders of Villanueva de la Serena, who said that "the price of tomato must be attractive enough for producers to opt for this crop," considering that "2022 is a year in which the value of processing tomatoes must be increased, in a context marked by a scarcity of water and the current lack of (tomato) pastes." For Íñiguez, "the competition with other crops such as corn, which have lower production costs, is another element that justifies a higher price for tomatoes."

This conclusion of an agreement for the next season in Extremadura should now allow contracts to be drawn up, and growers will be able to determine the surface areas to be planted for 2022. However, as stated by the growers themselves, they still face a number of uncertainties due to the lack of water. According to a grower who is a member of the Aseprex association, "there will be few hectares planted this year, [and] despite the price increase, it will be difficult to cover all the costs." He concluded by pointing out that "the 102 euros of the agreement will be insufficient."