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California: 2018 price agreement reached with Stanislaus Food Products

01/03/2018 - François-Xavier Branthôme - 2018 Season - Read in french
According to the latest CTGA’s Tomato Bulletin, a price agreement was reached with Stanislaus Food Products for the 2018 season. The CTGA has agreed to USD 75 per short ton (about 67.9 Euro/mT) with Stanislaus Food Products. This base price is 4 % lower than the USD 78 level initially proposed by CTGA, but also 9% higher than the average of the base prices offered by processors in December.

Late Season Premiums will remain the same as last year, and are as follows:
9/15 – 9/21 $3.00 per net ton
9/22 – 9/28 $6.00 per net ton
9/29 - 10/5 $9.00 per net ton
10/6 – 10/12 $12.00 per net ton
10/13 - end $15.00 per net ton
The rest of the terms are the same as 2017 Master Agreement.

Realizing growers had a less than desirable outcome for 2017, Stanislaus Food Products felt it was important to provide some economic certainty for 2018, and wanted to establish a price that reflects current cost pressures growers are facing. In this agreement, Stanislaus has agreed that if the industry negotiated price is higher than USD 75 per short ton, they will pay the higher amount, but no less than USD 75 per ton for 2018. CTGA believes this action is beneficial to growers and will continue the discussions with the other processors to reach a timely agreement for 2018 pricing. CTGA Base price in 2017 was USD 74 /sT, or about EUR 76.4 /mT.
Negotiations with the other processors are continuing.

(See also our article on first proposals issued in December 2017)

Sources: CTGA Tomato Bulletin
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