Tomato prices could spike as U.S. ends agreement with Mexico

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Tomato prices could take off as the U.S. withdraws from a pact with its top supplier, Mexico.

The so-called Tomato Suspension Agreement expired on Tuesday, triggering duties of more than 17% on supplies crossing into the U.S. from Mexico. The decision was made in part to protect growers in Florida.

Tomato growers in the Latin American country now need to pay collateral to cover the cost of the duties before they are able to export to the U.S., Mexico’s economy ministry said in a statement Tuesday. That could mean more than $350 million in extra costs for producers — fees many small and medium-size exporters probably will be unable to bear, the statement said.

“It’s a win for our group,” Michael Schadler, executive vice president of the trade association Florida Tomato Exchange, said by telephone. He said tomatoes from Mexico sold below the U.S. cost of production make it hard for Florida growers to compete.

Prices for tomato imports jumped when the move was announced by the U.S. Department of Commerce on Feb. 6, and will probably increase again to account for the duties, according to David Magana, a senior analyst at Rabobank International.

The tariffs could “impact prices in the U.S. in a matter of days,” Magana said in an email Monday.

U.S. tomato retail prices could climb by 40% to as much as 85%, with the bigger gains likely coming in the October-June period, according to a study by Arizona State University. The study was commissioned by the Fresh Produce Assn. of the Americas.

On April 26, the average cost had fallen to about 98 cents a pound, the lowest since October, the most recent government data show.
https://www.latimes.com/business/la-fi- ... story.html

Thank you Donnie Trump as he dumps on the American people.

I guess I will start raising more tomatoes.
Facts do not cease to exist because they are ignored.-Huxley
"We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both." ~ Louis Brandeis,

Re: Tomato prices could spike as U.S. ends agreement with Mexico

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Saw that article, afraid to see what I'll be paying. I strongly doubt we get FL tomatoes in CA, what we don't grow here likely comes from Mexico. Avocado prices have been higher than normal along with peppers, onions from TX are still reasonable. Donnie will need FL in 2020 so keep those farmers happy.
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: Tomato prices could spike as U.S. ends agreement with Mexico

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Near all of our tomatoes come from Mexico, as do avocados. It seems every time this dumb fuck opens his mouth it cost me money, be it merchandise or food. My stock portfolio is down 20% from his last tariff rant. Wish some one would superglue his mouth shut and stick his hands and tweet fingers together - just STFU for 48 hours would be nice.
"Being Republican is more than a difference of opinion - it's a character flaw." "COVID can fix STUPID!"
The greatest, most aggrieved mistake EVER made in USA was electing DJT as POTUS.

Re: Tomato prices could spike as U.S. ends agreement with Mexico

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K9s wrote: Wed May 08, 2019 6:26 pm Trump will subsidize them before the elections like he did for the farmers already hurt by his tariffs.

Those Rs really hate gov't handouts unless THEY get them.

If we get them, they're called Government Handouts or Entitlements, If Republicans get them , they're called Tax Breaks.

We have a garden, gonna put in some more tomatoes. Thanks Donnie...Making 'Murica great again!
Those who make peaceful revolution impossible, make violent revolution inevitable.

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