a day ago
Tomato processor pivots to cosmetics as industry squeezed by cheap imports
Canned tomatoes, tomato paste and pasta sauce are staples in kitchen pantries across the country.
But the processed tomato industry in Australia is struggling to compete against cheaper imports.
Industry development manager with the Australian Processing Tomato Research Council, Matthew Stewart, said only 20 to 30 per cent of products sold in Australia were made locally.
"Maybe 20 years ago it was closer to 50 [per cent]," he said.
"We'd like to see Australian supermarkets stocking locally-made products, and consumers supporting that too."
Mr Stewart said grower numbers were also in decline.
"In the last 10 years we've gone from about 12 active growing enterprises down to seven across northern Victoria and southern New South Wales," Mr Stewart said.
Tomatoes used for processing are different from the fresh produce found on supermarket shelves.
These tomatoes are grown in open fields for the sole purpose of being processed.
Based in Echuca in northern Victoria, Kagome Australia is the largest tomato processor in the country, processing more than 200,000 tonnes each season.
Chief executive Brad Free said it had moved into a surprising area, beauty products, to keep the business prosperous.
"We're cold pressing the oil from the tomato seed and it's going to the cosmetic industry," he said.
The tomato seed oil is used in products like moisturisers, facial scrubs and sunscreen.
"We've got a [tomato] skin and seed by-product that we weren't processing and we've wanted to do something with it instead of feeding it to livestock," Mr Free said.
Kagome introduced a powder drying process in the factory with the goal of recovering all by-product by 2027.
A tomato skin powder is also being used as an ingredient for pet foods.
"We're doing this to help growers so we're not just playing in a commodity market," Mr Free said.
Mr Free said Kagome needed to change in order to continue to grow.
"Tomato is a volatile industry and is completely hitched to the commodity market — global trends determine your future.
"China produced 11.5 million tones in 2024 and it's really flooded the market, so it decreased prices significantly."
Mr Stewart has observed how innovation is key to keep the industry going.
"Over the last three years growers experienced climatic instability," Mr Stewart said.
Despite the challenges, Mr Free said this season's production has been positive.
"In my 20 years of processing the current raw material is probably the best I've seen to date," Mr Free said.
