Demand remains strong for processing tomatoes

Ontario’s processing tomato crop is anticipated to reflect last year, if not slightly higher, barring significant production complications. 

According to the Ontario Processing Vegetable Growers (OPVG), there also continues to be high demand for processing tomatoes worldwide. 

Why it matters: Demand for tomato products remains high but global supplies are tight. 

Tom Keller, a Leamington-area tomato grower and board member with OPVG, says production in his area may not be as high as that seen during peak periods of the Heinz era, but “it is respectable.” 

Highbury Canco, the company that took over the Leamington Heinz processing facility, appears to be responding to continued consumer demand for tomato products. 

“They seem to have more contracts every year with vendors,” says Keller. “Worldwide, a lot of countries are struggling to get enough acres to fill their pack.” 

Part of the supply issue stems from lower incentives for growers to produce the commodity. Keller says there are generally lower returns for growers, particularly in California, in part because growers and processors negotiate directly. 

“This year all prices have gone up a bit for tomatoes, just to keep production going with existing growers… There’s no longer a list of growers waiting to grow tomatoes,” Keller says. He cites the potential for drought in California as a factor in wider supplies. 

Ron Vandamme, processing tomato grower from the Wallaceburg area and OPVG’s first vice-chair, also says the drought conditions in California and other areas has been putting downward pressure on global supplies. He says Ukraine is also a processing tomato producer of equivalent size to Ontario’s production, but a 2022 Ukraine crop is in doubt. 

Last year was challenging for many Ontario growers, Keller says, thanks in part to significant rainfall and heat events, but the industry is “usually pretty good at hitting the target.” 

Vandamme estimates this year’s production at 450,000 tonnes. Processors in the province have contracts for their desired volumes. 

“I think processors are looking forward to a good crop…certainly the demand is there. For the most part the negotiations went well,” says VanDamme. 

Keller adds that many growers negotiate their own contracts now rather than through the OPVG board. 

“The board is still involved in grading and acreage management along with the processors. The industry is still functioning well.”