Ketchup Prices Soar as Calif. Tomato Crop Dries Up

Aug. 18, 2022
Drought and other factors in California are dragging down tomato crops and driving up the cost of ketchup and other tomato-based foods.

Drought and other factors in California are dragging down tomato crops and driving up the cost of ketchup and other tomato-based foods.

A leading tomato processor is charging up to 80% more for tomato paste over last year. He blames the situation mostly on drought: “The water is either too expensive or just not available at any cost,” he told Bloomberg.

As a result, retail prices for tomato sauce are up 17% over last year, and for ketchup, up 23%, according to IRI statistics quoted in the New York Post.

Inflation is also a factor, for farm necessities like fuel and fertilizer. But the heat wave that has caused record-setting wildfires in California is suppressing water supplies and forcing farmers to cut back on their planted acreage.

California grows an estimated 12.7 million tons of tomatoes annually, including 95% of all U.S.-grown tomatoes used for further processing.

Sponsored Recommendations

Clabber Girl: Rising Success

Uncover how Clabber Girl Corporation achieved a remarkable 7% growth and improved manufacturing efficiency by seamlessly integrating Vicinity's batch manufacturing solution with...

Intelligent Blends: Taking Technology to the Next Level

Find out how our friends at Intelligent Blends use VicinityFood and Microsoft Dynamics GP to produce the best coffee around.

Key ingredient: Mother Murphy's Laboratories

Flavorings manufacturer Mother Murphy’s Laboratories integrates front office with production facility — improving operations from initial order to final invoice.

Maximizing Profitability and Efficiency: Why Food Manufacturing ERP is a Game-Changer

Check out this infographic detailing the 5 reasons why food manufacturers should invest in an ERP software for their food production.