Local agricultural produce regaining lost ground

In spite of a bumper crop of tomatoes, consumers are still not benefiting from the rock bottom prices at which they are being sold at the vegetable market.

The climatic conditions and relatively disease-free season have meant a glut of tomatoes. But while a crate of around 25 kgs is sold on the vegetable market for about 50 cents at most, some vegetable sellers are still selling tomatoes at up to 30 cents per kilo, raking in Lm7 profit when they sell a whole crate.

Many producers have practically given their full quotas to tomato processors, but still have a lot of tomatoes left in their fields.

John Magro, of Magro Brothers, one of the leading tomato processors, said so far the company had processed some 60 per cent of what was envisaged for the season.

"We are contracted to purchase just under 7,000 tons from producers this year. This is some 24 per cent more than last year. Yet it appears there are many more tomatoes on the market this year. We had agreed with tomato producer organisations that we would take up to 10 per cent more than we had contracted for, and we hope to be able to do that," Mr Magro said.

He said his company was processing more tomatoes than it did last year in spite of the reduced consumption of local produce in the face of competition from imports.

"We are also exporting, and that makes a big difference. Processors who are not export oriented had to reduce the amount they processed this year.

"But I am confident that local sales will improve. After the initial dent in local sales, the market is picking up again. People have tried the foreign products and are appreciating even more the quality of local produce, and are coming back.

"It is all a question of quality and price," Mr Magro said.

During the EU membership negotiations, Malta was given a quota of 27,000 tons of tomatoes for production purposes and growers are given a seven cent subsidy per kilo as they have a guaranteed minimum price.