2018 ANNUAL REPORT LETTER FROM THE CHAIRMAN The 2017-18 Florida tomato last decade, yet another handful of tomato growers season will be remembered announced at the end of the 2017-18 season that they for its volatility and would be exiting the tomato business. This included continued struggle with one of the oldest tomato growing families in the state. the inundation of low- It’s another huge loss for our industry and it’s a loss for priced Mexican imports. the state of Florida. The growing season started with an unfortunate bang as It’s times like this when one searches for silver linings, Hurricane Irma made landfall and I haven’t even mentioned the challenges of on September 10, 2017. The resulting damage to tomato securing a stable workforce, which is an increasingly fields – although nothing like what our citrus-growing difficult and frustrating issue for nearly all segments of neighbors suffered – was enough to limit supplies American agriculture. So, the silver lining is probably from late October through December. This resulted similar to what I wrote last year at this time. We are in an uneven market with uneven benefits. Those that significantly stressed as an industry, but we have escaped damage to their early season crop were able deep roots and good soil. With some changes above to benefit from very high market prices. ground, we can come back strong. Yes, we need help in dealing with unfair trade practices, but we also need to But then things returned to what has unfortunately examine how to adapt and change our ways. As I step become the new normal: As Florida shipments down from being Chairman, I look forward to staying recovered to typical levels, Mexican imports began engaged with the Florida Tomato Committee and the flooding the market, and there was very little relief – Exchanges to help the industry spur change and to let alone profits – for the remainder of the season. The continue to fight. Thank you for your support and for bottom line is that there are too many tomatoes in attending this year’s Florida Tomato Conference. the North American market. The Tomato Suspension Agreement has never been able to effectively stop Frank Diehl, Chairman the dumping of tomatoes by Mexican growers, which Florida Tomato Committee results in predatory pricing well below Florida’s cost 2017-18 of production. As has become commonplace over the 2 TABLE OF CONTENTS Committee Members, Alternates, Officers, and District Map ..................................................................4 Production & Market Summary ............................................................................................5 Education & Promotion Summary ..........................................................................................7 Fresh From Florida ...............................................................................................7 Canada ..........................................................................................................8 Research Summary ......................................................................................................10 Marketing Order Regulations and Compliance Summary .....................................................................11 Statistical Tables Table 1: Shipment Volume & Value – All Districts ..................................................................12 Table 2: Shipment Volume & Value – District 1 ....................................................................13 Table 3: Shipment Volume & Value – District 2 ....................................................................14 Table 4: Shipment Volume & Value – District 3....................................................................15 Table 5: Shipment Volume & Value – District 4....................................................................16 Table 6: Weekly Shipment Volume & Value.......................................................................17 Table 7: Weekly Shipment Volume by Size (Mature Green) ........................................................18 Table 8: Weekly Shipment Volume by Size (Vine Ripe) ............................................................19 Table 9: Weekly Shipment Volume by District ....................................................................20 Table 10: Shipment Volume & Value by District (Past 5 Seasons) ....................................................21 Table 11: Shipment Volume by District (Past 5 Seasons).............................................................22 Table 12: Weekly Packout / Price Comparison .....................................................................22 Table 13: Weekly Price Comparison (Past 3 Seasons) ...............................................................23 Table 14: Weekly Packout Comparison (Past 3 Seasons) ............................................................23 Table 15: Florida vs. Mexico – Round Tomatoes (Past 5 Seasons) ....................................................24 Table 16: Florida vs. Mexico – Round Tomatoes by Month (Oct-Jun) .................................................24 Table 17: Florida vs. Mexico – Plum Tomatoes by Month (Oct-Jun)...................................................25 Table 18: Florida vs. Mexico – Grape Tomatoes by Month (Oct-Jun)..................................................25 Table 19: Florida vs. Mexico – Cherry Tomatoes by Month (Oct-Jun) .................................................26 Table 20: Mexican Imports by Production Environment (Past 3 Seasons).............................................26 Table 21: Mexican Imports – All Types by Month (Oct-Jun, Past 5 Seasons) ...........................................27 Table 22: Canadian Imports – All Types by Month (Oct-Jun, Past 5 Seasons) .........................................27 DISCLAIMER: This Annual Report is intended to provide a summary of the Committee’s activities and an overview of the 2017-18 Florida tomato crop and marketing season. All prices found in this report are quoted prices, which are reported daily in the USDA Tomato Fax Report and on the USDA Market News website (www.marketnews.usda. gov). The prices in this report do not represent true transaction prices, which are typically much lower than the USDA quoted prices. 3 FLORIDA TOMATO COMMITTEE REGULATED AREA that portion of the State of Florida situated East of the Wakulla Suwannee River and South of the Georgia border FLORIDA TOMATO COMMITTEE MEMBERS AND ALTERNATES 2017-2018 SEASON DISTRICT 1 Kern Carpenter Michael Borek Homestead, FL Miami, FL Tony DiMare Paul J. DiMare Homestead, FL Homestead, FL DISTRICT 4 DISTRICT 2 Mark Mecca Francisco Diaz Lake Worth, FL Coral Gables, FL David Neill Patrick B. Engle Ft. Pierce, FL Ft. Pierce, FL DISTRICT 3 DISTRICT 2 Jon Esformes Billy L. Heller Palmetto, FL Palmetto, FL Mike W. Sullivan Daniel Subbert DISTRICT 3 Naples, FL Naples, FL Toby Purse Gerry Odell Immokalee, FL Immokalee, FL DISTRICT 1 FLORIDA TOMATO COMMITTEE Robin Levine-Provent Bruce Provent PRODUCTION AREA Immokalee, FL Immokalee, FL the counties of Pinellas, Hillsborough, Polk, Osceola, and Brevard and all DISTRICT 4 counties situated South thereof. Brian Turner G. David Murrah Palmetto, FL Palmetto, FL Bob Spencer D.C. McClure Palmetto, FL Palmetto, FL John Harllee IV Alex Harllee Palmetto, FL Palmetto, FL Frank Diehl Doug Diehl Wimauma, FL Wimauma, FL OFFICERS Chairman: Frank Diehl Vice Chairman: Patrick Engle Secretary: Kern Carpenter Treasurer: Mike Sullivan 4 PRODUCTION & MARKET SUMMARY A total of 25.9 million 25-lb. equivalent containers of round tomatoes were packed in the FTC production area during the 2017-18 season. This represents a 21% decrease compared to the previous season and the smallest crop on record since 1976- 77 when Florida’s winter crop was wiped out by a devastating TROPICAL freeze. Of the tomatoes packed in 2017-18, the ratio between STORM mature green and color tomatoes (87% to 13%) was in line with FORCE WINDS recent seasons, as was fruit size (51% 5x6; 32% 6x6; 17% 6x7). Packout grade showed a relative improvement in 2017-18 with 59% of tomatoes making 85% US #1 or better. This compares to 52% and 51%, respectively, for the previous two seasons. 10 SEASONS: PACKOUT VOLUME FROM FTC PRODUCTION AREA HURRICANE ROUND TOMATOES, 25-LB. EQUIVALENTS FORCE WINDS The significant volume reduction in 2017-18 was mainly a The weather mostly cooperated through the rest of the fall and function of the damage to the fall crop caused by Hurricane winter. Although colder on average than the last few winters, Irma, which made landfall near Marco Island on September 10 as there were no significant freeze events. The spring crop shaped a Category 3 hurricane. Irma’s eye traveled up through Collier, up nicely until record rainfall in May put a damper on the last Lee, and Charlotte counties with the “dirty side” of the hurricane month of the Florida season. From a growing perspective, it was passing right over the Immokalee tomato growing region. a difficult season on the front end and back end. From a market Thankfully it was early enough in the season that most growers perspective, it was a tumultuous ride all the way through… had not yet transplanted plants into their fields. However, most growers had just finished preparing beds and laying plastic, and The production gap resulting from the hurricane damage some growers had unfortunately already staked and planted created a sharp spike in tomato prices from early November their fields. Hundreds of acres of plastic (and in some cases,