Advances in production and transportation technology and improvements in quality have helped to grow the demand for fresh-market tomatoes. U.S. consumption of fresh tomatoes grew 71% from 15.4 pounds per person in 1991 to 20.7 pounds per person in 2006. U.S. total domestic utilization increased over this period from 3.87 billion pounds in 1991 to 5.79 billion pounds in 2006, an increase of 1.91 billion pounds. Imports claimed 56% of that growth by increasing 1.08 billion pounds.

U.S. production of fresh-market tomatoes declined from 1992 to 1996, but increased after 1996 when U.S. growers successfully petitioned the U.S. International Trade Commission for relief from imported tomatoes that were unfairly dumped on U.S. markets. That agreement led to greater discipline of imports from Mexico, which appears to have benefited both U.S. and foreign growers.

Greenhouse-Grown Gaining Ground

Producers of fresh-market tomatoes in the U.S. have been fortunate to be part of a growing market for their commodity over the last 16 years, but much of that growth has occurred with greenhouse-grown tomatoes. Greenhouse tomatoes overtook field-grown tomatoes in 2005 as the largest segment of imported fresh-market tomatoes. This is indicative of the changing market for fresh-market tomatoes where consumers are demanding more vine-ripe and specialty-type tomatoes at the retail market. Mature green tomatoes, primarily supplied by U.S. growers, still command a larger share of the food-service trade.

Growing Demand

From 1991 to 2007, U.S. production of fresh-market tomatoes increased 25%. Net trade in tomatoes (imports less exports) added an additional two billion pounds to the U.S. market in 2007. Producers have been fortunate to see a growing market for their product, with domestic utilization increasing from 3.89 billion pounds in 1991 to 6.12 billion pounds in 2007, a 57% increase. Imports claimed roughly half of that increase.

Production Hot Spots

U.S. production of fresh-market tomatoes is concentrated in the southeastern U.S. and California. Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia produced 2.11 billion pounds of fresh-market tomatoes in 2006, or roughly 57% of all fresh-market tomatoes produced in the U.S. California produced 1.14 billion pounds, or roughly 33% of the U.S. total production. The rest of the nation produced less than 10% of all fresh-market tomatoes grown in 2006. These data highlight the concentration of production of fresh-market tomatoes in the southeastern U.S. and California. The Southeast concentrates its production in the fall, winter, and spring months, while California concentrates its production in the spring, summer, and fall months.

The Sunshine State’s Share

While Florida is the single largest producer of fresh-market tomatoes (1.45 billion pounds in 2007), the state has lost market share to other U.S. producers, who increased their production by 305.6 million pounds since 1991. Imports, however, have taken a far greater share of the market from Florida producers, increasing by 1.565 billion pounds since 1991.

The Florida tomato industry produced 1.455 billion pounds of fresh tomatoes in 2007 on 38,200 acres, with a total value of $464.24 million. An estimated 90% of Florida tomatoes are shipped out of state. Because of multiplier effects from these sales, the total output impacts were estimated at $997 million. Direct employment in the industry was estimated at 2,987 full-time and part-time jobs, and total employment impacts were estimated at 8,231 jobs. The labor (earned) income impact of employee wages and benefits and business proprietor income was estimated to be $299 million. Indirect business tax affects to local, state, and federal governments were $30 million.