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Monday, April 2, 2012

Tomato Scarcity in 2012, Any Effects to YOU ??

Xinjiang area is one of the area for Tomato field and factory,
And it's been included in the arrangment of the crop 2012 tomato growing program. Obviously in this crop, it is been challenging to arrange the growing with the farmers association.
As in the past 3 years, all the farmers, tomato paste factories, tomato paste trading companies barely make money, or even generally all the tomato paste factories lost a lot of money due to the very low market price.



Clearly noticeable caused by the high cost productions, 
Moreover, the manufacturers had to sell at the market price which is much less than the COST.

Responding this issue, on this crop 2012, the farmers have decreased the tomato land area by 49-50% in China;
Even more, many middle and small  factories will not produce at all. Big factories like COFCO and CHALKIS will reduce process by 40% at least. Some trading companies have started to change working for other products instead of tomato paste.
Generally in this year 2012, the China production of tomato paste will be at least 40% less than ever years,
Which lead to condition of pulling the market into "recover" stage, as the low market that have been occuring.




Well Partners, as our consideration, most of everything could be predicted, well calculated and planned.
Let's just say, we will be competing 140% more furious, faster, negotiating harder to keep the production requirement remain on its standard
Market is still attractive indeed, only the limited source that will be the challenge, 
So Partner,  any respond about this issue?

For your afternoon sharing please.

Always enjoying your day.

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