Static retail tomato prices coupled with continued weakening of the pound against the euro is putting pressure on growers in the Canary Islands.
Decreasing returns caused by a change in the exchange rate could eventually see product being diverted away from the UK and into more financially viable markets in Europe.
“We are not seeing inflation at retail reflect the massive currency deflation we are experiencing, which will lead to the inevitable,” said an importer. “In the long term, growers may decide to channel more product into other destinations, and may start looking to markets with less exacting quality specifications than the UK.”
Conversely, growers report that the price of cucumbers from the Canary Islands has risen. There are currently three ships of tomatoes and cucumbers arriving from the islands each week; this will decrease to two ships a week as cucumber volumes fall.
The importer said that 2007-08 had seen excellent quality from the Canary Islands.
“Quality-wise this has been a marvellous season,” he added. “We’ve seen a fantastic product with very few diseases or other issues.”
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