By Clint Thompson
An oversupply of Florida tomatoes has led to suppressed market prices for growers. That hasn’t deterred the optimism of one industry leader, however, who believes brighter days are on the horizon.
“You can’t be in agriculture if you’re not an optimist. Damn right, we’re assuming that right beyond that ugly cloud is a beautiful rainbow, warm skies and sunshine,” said Bob Spencer, president of West Coast Tomato in Palmetto, Florida. “We’re in a surge now. Hopefully that surge abates somewhat in the next couple of weeks.”
The surge is a result of increased acres that farmers are currently paying the price for. Spencer said prices for tomatoes are an estimated $5 to $7 FOB (freight on board) compared to desired prices of $9 to $11.
“We’ve just got a very tough market here for the next two or three weeks. It’s going to be hard to get out of our own way,” Spencer said. “Some people added acreage. It’s just one of those markets you have to endure.
“From the way all the packouts are going and the loads being shipped out of the state, it’s pretty apparent there’s more acreage out there.”
Production soared this season because of increased acreage but also due to ideal weather conditions. Growers are challenged in trying to sell their product.
“You get these every now and then and it reminds people that just because you can grow them doesn’t mean you can sell them. Hopefully, during the next planting period, cooler heads will prevail. In our business less is more,” Spencer said. “The problem in our industry is supply and demand. If you add supply, it’s awful hard to keep the price where you need it.
“It’s a little tough right now.”