Respect for your privacy is our priority

The cookie is a small information file stored in your browser each time you visit our web page.

Cookies are useful because they record the history of your activity on our web page. Thus, when you return to the page, it identifies you and configures its content based on your browsing habits, your identity and your preferences.

You may accept cookies or refuse, block or delete cookies, at your convenience. To do this, you can choose from one of the options available on this window or even and if necessary, by configuring your browser.

If you refuse cookies, we can not guarantee the proper functioning of the various features of our web page.

For more information, please read the COOKIES INFORMATION section on our web page.


News

Chinese tomato paste loses price advantage

14/04/2022 - François-Xavier Branthôme
"Chinese tomato paste loses price advantage in international market as the cost price of tomato plantation rises"

The cost price of tomato plantation in China has gone up since the outbreak of Covid-19. As a result, the price of processed tomato paste has gone up as well”. These are the words used by manager Wang of Shangzhuo Food, who recently talked about current conditions in the export market for tomato paste. Shandong Shangzhuo Food Co., Ltd. is a specialized exporter of tomato paste. The company buys tomatoes from production areas in China and then processes them into tomato paste for the export market. 

"Our main export markets are in the Middle East and Africa. We export around 700-800 shipping containers per year. We sell about 50% of our products via domestic trading companies, and the other half is sold directly to local clients," said manager Wang.

"Our export of tomato paste has been stable for the last few years. Although we have not significantly expanded, we also did not see our export volume decline during the pandemic. As for the price, we generally provide clients with the FOB price, so the rising cost of shipping has not significantly affected our export volume," said manager Wang. "The main problem that we currently deal with is the uncertainty of shipping and its effect on the international market during the pandemic. Ships are often delayed, which causes difficulties with distribution for our clients."

 
 
Source : TDM
Since 2011, Chinese tomato paste exports have followed a downward trend that has reduced total activity by around a third in ten years. The main markets remain the countries of West Africa, of Far East and, to a lesser extent, Western EU, Middle East and Eurasia.

"The Middle East and Africa consume large amounts of tomato paste. Apart from China, these markets primarily import tomato paste from the USA and Italy. The main advantage for Chinese tomato paste exporters is the relatively low price. However, the cost price of tomato plantation has gone up during the pandemic. The price of tomatoes as raw material for tomato paste has gone up so much that Chinese exporters lose the price advantage in the international market".

"Tomato producers deal with the rising cost of energy, tomato seeds, fertilizer, and labor. That is why the price of tomatoes is rising. Moreover, processing itself has become more expensive too because energy and labor are more expensive. As a result, the price of tomato paste is now around 980 USD per ton. That is 5% higher than in previous years," explained manager Wang. "Although the price is still low compared to other exporters, the difference is not as significant anymore."
In addition to tomato paste, Shangzhuo Food also exports garlic and ginger.

 
Source : TDM
The unit value of Chinese tomato paste (customs codes 200290) exported in February 2022 was 13% higher than in February 2021, 11% higher than in February 2020 and 18% higher than in February 2019. The differences were more significant for products exported under codes 20029011 (weighing less than 5 kg) than for those registered under codes 20029019 (weighing more than 5 kg).


Some complementary data
Evolution of Chinese exports of tomato paste (200290) over past ten years.

Sources: freshplaza.com, TDM
Related articles

Paste prices, March 2022: USA, Spain, Portugal, Italy, China, Chile

16/03/2022 See details

China: exports remain very steady

29/09/2021 See details

China: exports under threat from a possible extension of the boycott

04/02/2021 See details

China: exports practically stable in 2019/2020

13/08/2020 See details
Back

________________________________________

Editor : TOMATO NEWS SAS -  MAISON DE L'AGRICULTURE - TSA 48449 - 84912 AVIGNON Cedex 9 - FRANCE
contact@tomatonews.com
www.tomatonews.com

 

 

Supporting partners
Featured company
Lark Seeds International
Most popular news
Featured event
The 2022 Tomato News Conference
Our supporting partners