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Business Wire
2 days ago
- Business
- Business Wire
Termination of Tomato Trade Agreement Disrupts U.S. Supply Chain, Raises Supply Availability and Food Security Concerns
SAN ANTONIO--(BUSINESS WIRE)-- NatureSweet®, the leading branded tomato company in North America, is sounding the alarm on the U.S. government's decision to terminate the longstanding Tomato Suspension Agreement (TSA) —a move that threatens to upend the fresh tomato supply chain, severely reduce availability, and put food safety at risk for American consumers. 'This isn't just about trade. It's about food security, safety, and affordability for millions of Americans.' -- NatureSweet Nearly 70% of the fresh tomatoes consumed in the U.S. are imported from Mexico, especially during the winter months when domestic production is limited. The sudden imposition of duties will create serious disruptions in supply, particularly for key varieties like grape and cherry tomatoes, which are largely grown in Mexico. This decision will mean fewer options, less availability, and higher prices in the produce aisle for both consumers and retailers. 'As a vertically integrated greenhouse grower, NatureSweet manages every step of the process—from growing and harvesting to packaging and distribution—which gives us the ability to absorb some of the cost shocks and all of the additional administrative burden,' says Rodolfo Spielmann, President and CEO of NatureSweet. 'But we operate in a thin-margin industry in which our model is unique, and most growers and distributors are separate. Many smaller growers might not have this flexibility, and this new burden will push some to the brink.' The ripple effects of these pressures are more than just economics. Food safety and product quality are also at risk as reduced supply may force less-resourced growers to cut corners or leave the market entirely. Increased reliance on open-field operations, which are harder to monitor and more vulnerable to contamination could further elevate food safety risks. For nearly 30 years, the TSA has provided a framework that protects Florida growers while supporting a diverse and resilient tomato market across North America. NatureSweet urges all stakeholders to return to the table and negotiate a new agreement that preserves consumer access to safe, high-quality, and affordable tomatoes. 'Our tomatoes are grown year-round in greenhouses and ripened naturally on the vine—unlike many field-grown Florida tomatoes, which are picked green and artificially ripened with gas,' said Skip Hulett, Chief Legal Officer of NatureSweet. 'That's why we're the #1 branded tomato in the U.S. Consumers trust us for consistent flavor, quality, safety, and integrity —and we're committed to maintaining those standards.' NatureSweet will continue to do everything possible to minimize price impacts and safeguard quality, but the company is calling for a collaborative, long-term solution that benefits growers, retailers, and consumers alike. Hulett adds 'Let's not turn a trade dispute into a food crisis. Let's fix this—before the damage becomes permanent.' About NatureSweet® (NS Brands, Ltd.) NatureSweet® is the leading brand in snacking tomatoes and a trusted provider for greenhouse-grown vegetables. As the largest vertically integrated controlled environment agriculture company and greenhouse grower in North America, it operates on more than 1,500 acres of greenhouse space, growing premium tomatoes, cucumbers, and sweet peppers. The company's team of nearly 10,000 associates ensures every product is handpicked at peak freshness, delivering exceptional quality and flavor to supermarkets across the U.S., Mexico, and Canada. Its mission is to transform the lives of agricultural workers in North America through a profitable business model that encourages other companies to replicate it. With a commitment to sustainability and social responsibility, NatureSweet has earned B Corp, Fair Trade, and Equitable Food Initiative (EFI) certifications.
Daily Mail
09-07-2025
- Business
- Daily Mail
Cost of everyday staple sold at Walmart and Kroger set to soar as decades-old deal expires
A can of spaghetti sauce or a mixed salad could be next in line for a huge price bump. A decades-old trade pact that kept imported tomatoes cheap is about to expire — threatening to significantly raise prices on the staple ingredient. Starting July 14, fresh tomatoes brought into the US from Mexico will face a new 17 percent tariff, after the Commerce Department announced plans to let the Tomato Suspension Agreement lapse. The move ends a 29-year truce between the two nations that once promised to protect American farmers while keeping grocery prices in check. Now, grocery stores could be caught in the middle. 'There's no scenario where I can absorb those tariffs,' Rodolfo Spielmann, CEO of NatureSweet, America's largest tomato distributor, told Bloomberg. 'The margins are not high enough.' He expects a price jump of around 10 percent across his tomato lineup, which is sold at retailers like Walmart, Kroger, Whole Foods, and Albertsons. NatureSweet's most iconic product — its Cherub grape tomatoes packaged in a bulbous plastic container with highlighter yellow stickers — has become a grocery aisle staple. But like most tomatoes in US supermarkets, it's grown south of the border. Mexico accounts for about 90 percent of America's tomato imports, and nearly three-quarters of all fresh tomatoes sold in the US are imported. The original agreement was struck in 1996 after the US accused Mexican producers of product 'dumping,' or, selling a surplus of tomatoes at an artificially low price. The pact intended to empower American farmers. The deal included price floors and random inspections. US officials have renegotiated the pact several times, including in 2019 during the first Trump administration. 'It hasn't worked,' Robert Guenther, the executive vice president of the Florida Tomato Exchange, told Bloomberg. 'You've seen is a consistent reduction in the market share of US tomatoes.' Republican lawmakers from Florida, a major tomato-producing state, welcomed the end of the agreement in an open letter. 'The termination of the suspension agreement will allow US tomato growers to compete fairly in the marketplace,' a letter from state Senators, Rick Scott and Ashley Moody, said. American farmers have increasingly cut jobs in the tomato industry. But alarm bells are also ringing for industry analysts. The US has not produced enough tomatoes for domestic consumption for several decades. A supply shock for tomatoes could push grocery inflation up even higher after years of increased food prices. The looming tariff underscores a broader Republican trade dilemma — trying to lower prices for consumers while boosting domestic production. For now, shoppers may be the ones footing the tomato bill.
Yahoo
08-07-2025
- Business
- Yahoo
A Tomato Fight With Mexico Is Set to Boost US Prices Nearly 10%
(Bloomberg) -- Consumers may soon be paying more for fresh tomatoes as a decades-long deal with Mexico expires in less than a week, absent a last-minute deal or extension. Are Tourists Ruining Europe? How Locals Are Pushing Back Can Americans Just Stop Building New Highways? Denver City Hall Takes a Page From NASA Philadelphia Trash Piles Up as Garbage Workers' Strike Drags On US tomato importer NatureSweet Ltd. told its customers last week that it would have to raise prices nearly 10% if the agreement ends, Chief Executive Officer Rodolfo Spielmann said in an interview Tuesday. 'There's no scenario where I can absorb those tariffs,' Spielmann said. 'The margins are not high enough.' That could drive up costs across the country, given NatureSweet's position as the largest distributor of tomatoes in the US. Its bestsellers, including Cherubs grape tomatoes, can be found at stores including Walmart Inc., Kroger Co. and Albertsons Cos. 'Regardless of the external environment, we remain committed to keeping fresh produce accessible at everyday low prices,' Lauren Willis, a spokeswoman for Walmart, said in a statement. The US Commerce Department announced in April it was terminating a long-running agreement with the country's southern neighbor over tomato prices on July 14, which will unleash a 17% levy on the fruits imported from Mexico. With less than a week left before the mid-July deadline, a deal is unlikely to come together, although several groups are pressing for an extension to buy more time for negotiations, according to public documents. The Commerce Department didn't respond to a request for comment. Kroger and Albertsons declined to comment. The end of the agreement would deal a blow to US companies that grow tomatoes in Mexico and import them into the US, where they dominate the market. Around 72% of US fresh tomatoes were imported in 2024, and about 90% of those came from Mexico, according to the US Agriculture Department. Welcomed Move Some US tomato growers have cheered the ending of the accord, though many agricultural economists don't expect them to be able to make up for an expected slowdown in tomatoes coming from Mexico. The US Agriculture Department estimated in June that Mexico's tomato exports would decrease 5% this year in response to the new levies. 'It's possible that the price of tomatoes goes up for the short term,' US Agriculture Secretary Brooke Rollins told reporters last week. In the longer term, 'ensuring that our international partners are being fair and following the rules and ensuring that they're meeting their obligations is paramount,' she said. Tomato growers in Florida and some other states have urged the administration to end the agreement with Mexico, arguing imports from the US's southern neighbor are priced unfairly low. The original agreement, signed in 1996 and periodically renegotiated, suspended an investigation into Mexico's prices and struck a deal: Mexican growers agreed to set a minimum price for their tomatoes and undergo additional inspections. 'It hasn't worked,' said Robert Guenther, executive vice president of the Florida Tomato Exchange, which represents many growers in Florida and a handful of other states. Over the last 30 years, 'what you've seen is a consistent reduction in the market share of US tomatoes,' he said. US growers supplied around 80% of the US market when the agreement was first signed and have since seen that dwindle to roughly 30%, Guenther said. Growing Sweet Spot But agricultural economists said Mexico has captured a bigger share of the US market because its temperate climate and network of greenhouses are well situated to growing tomatoes, particularly the cherry, grape and heirloom varieties that have become increasingly popular. Low labor costs also help keep prices down. 'It's not due to a concerted effort by Mexican growers to take the market share and push Florida out. They're simply providing better products to the marketplace,' said Matt Mandel, vice president of Arizona's SunFed Produce, which imports 95% of its products from Mexico. Mandel said SunFed will also have to adjust prices on its tomatoes if the agreement ends this month. 'It's going to raise prices, period, full stop,' he said. 'We're working on very, very small margins and there's absolutely no way we can absorb 17%.' Guenther said he doesn't expect a dramatic reduction in imports or a surge in prices. US growers in Florida and elsewhere have room to expand their production, he said. Lost Jobs Reducing tomato imports is likely to have additional repercussions by eliminating jobs tied to that pipeline of produce, said Andrew Muhammad, an agricultural policy professor at the University of Tennessee's Institute of Agriculture. 'You're going to get some lost economic activity in addition to the lost imports,' he said. 'The services associated with importing also pays Americans.' Importing and marketing fresh tomatoes from Mexico supports roughly 47,000 full and part-time jobs in the US, according to an April analysis from Texas A&M University. Elected officials from Arizona and Texas, including Texas Governor Greg Abbott, have urged the administration to leave the agreement in place, while lawmakers from Florida have applauded efforts to end it. (Updates with responses from retailers starting in fifth paragraph) Will Trade War Make South India the Next Manufacturing Hub? 'Telecom Is the New Tequila': Behind the Celebrity Wireless Boom Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions ©2025 Bloomberg L.P. 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Yahoo
08-07-2025
- Business
- Yahoo
A Tomato Fight With Mexico Is Set to Boost US Prices Nearly 10%
(Bloomberg) -- Consumers may soon be paying more for fresh tomatoes as a decades-long deal with Mexico expires in less than a week, absent a last-minute deal or extension. Are Tourists Ruining Europe? How Locals Are Pushing Back Denver City Hall Takes a Page From NASA Can Americans Just Stop Building New Highways? Philadelphia Trash Piles Up as Garbage Workers' Strike Drags On US tomato importer NatureSweet Ltd. told its customers last week that it would have to raise prices nearly 10% if the agreement ends, Chief Executive Officer Rodolfo Spielmann said in an interview Tuesday. 'There's no scenario where I can absorb those tariffs,' Spielmann said. 'The margins are not high enough.' That could drive up costs across the country, given NatureSweet's position as the largest distributor of tomatoes in the US. Its best-sellers, including Cherubs grape tomatoes, can be found at stores including Walmart Inc., Kroger Co. and Albertsons Cos. The US Commerce Department announced in April it was terminating a long-running agreement with the country's southern neighbor over tomato prices on July 14, which will unleash a 17% levy on the fruits imported from Mexico. With less than a week left before the mid-July deadline, a deal is unlikely to come together, although several groups are pressing for an extension to buy more time for negotiations, according to public documents. The Commerce Department, Walmart, Kroger and Albertsons didn't immediately respond to a request for comment. The end of the agreement would deal a blow to US companies that grow tomatoes in Mexico and import them into the US, where they dominate the market. Around 72% of US fresh tomatoes were imported in 2024, and about 90% of those came from Mexico, according to the US Agriculture Department. Welcomed Move Some US tomato growers have cheered the ending of the accord, though many agricultural economists don't expect them to be able to make up for an expected slowdown in tomatoes coming from Mexico. The US Agriculture Department estimated in June that Mexico's tomato exports would decrease 5% this year in response to the new levies. 'It's possible that the price of tomatoes goes up for the short term,' US Agriculture Secretary Brooke Rollins told reporters last week. In the longer term, 'ensuring that our international partners are being fair and following the rules and ensuring that they're meeting their obligations is paramount,' she said. Tomato growers in Florida and some other states have urged the administration to end the agreement with Mexico, arguing imports from the US's southern neighbor are priced unfairly low. The original agreement, signed in 1996 and periodically renegotiated, suspended an investigation into Mexico's prices and struck a deal: Mexican growers agreed to set a minimum price for their tomatoes and undergo additional inspections. 'It hasn't worked,' said Robert Guenther, executive vice president of the Florida Tomato Exchange, which represents many growers in Florida and a handful of other states. Over the last 30 years, 'what you've seen is a consistent reduction in the market share of US tomatoes,' he said. US growers supplied around 80% of the US market when the agreement was first signed and have since seen that dwindle to roughly 30%, Guenther said. Growing Sweet Spot But agricultural economists said Mexico has captured a bigger share of the US market because its temperate climate and network of greenhouses are well situated to growing tomatoes, particularly the cherry, grape and heirloom varieties that have become increasingly popular. Low labor costs also help keep prices down. 'It's not due to a concerted effort by Mexican growers to take the market share and push Florida out. They're simply providing better products to the marketplace,' said Matt Mandel, vice president of Arizona's SunFed Produce, which imports 95% of its products from Mexico. Mandel said SunFed will also have to adjust prices on its tomatoes if the agreement ends this month. 'It's going to raise prices, period, full stop,' he said. 'We're working on very, very small margins and there's absolutely no way we can absorb 17%.' Guenther said he doesn't expect a dramatic reduction in imports or a surge in prices. US growers in Florida and elsewhere have room to expand their production, he said. Lost Jobs Reducing tomato imports is likely to have additional repercussions by eliminating jobs tied to that pipeline of produce, said Andrew Muhammad, an agricultural policy professor at the University of Tennessee's Institute of Agriculture. 'You're going to get some lost economic activity in addition to the lost imports,' he said. 'The services associated with importing also pays Americans.' Importing and marketing fresh tomatoes from Mexico supports roughly 47,000 full and part-time jobs in the US, according to an April analysis from Texas A&M University. Elected officials from Arizona and Texas, including Texas Governor Greg Abbott, have urged the administration to leave the agreement in place, while lawmakers from Florida have applauded efforts to end it. Will Trade War Make South India the Next Manufacturing Hub? 'Telecom Is the New Tequila': Behind the Celebrity Wireless Boom SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too For Brazil's Criminals, Coffee Beans Are the Target Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P. 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