Thread: South Dade tomato farmers find their livelihood threatened

Posted on Tue, Apr. 28, 2009
South Dade tomato farmers find their livelihood threatened by plunging prices, demand
BY ELAINE WALKER
ewalker@MiamiHerald.com

Freddy Strano spent much of last week mowing down 100 acres of perfectly good tomatoes.
The Homestead grower was trying to cut his losses and bring to a close what has been an awful season. Strano estimates he has lost $500,000 or more this winter. The problem: He couldn't sell his tomatoes for anywhere close to what it cost to grow and harvest them.

''They were beautiful tomatoes, some of the better ones we've had in years,'' said Strano, whose family has been in the tomato business since 1939. ``The prices were just horrible. It's demoralizing. It's going to cripple everybody.''

Homestead tomato growers faced a double whammy as consumers cut back purchases amid an oversupply. The combination sent prices plummeting to the lowest levels in years. A 25-pound box of tomatoes sold for much of the winter at $4-$6. The cost to grow and harvest that box is as high as $10.

While the problems have been affecting tomato growers across the state, the pain has been more acute in South Miami-Dade, where the 12-week growing season came just as prices dropped in January.

Tomato prices only started to pick up early this month, as the season wound down.

When the losses are tallied, many fear that some smaller tomato growers could be forced out of business. It's an ongoing trend as skyrocketing growing costs, immigration reform and increased competition from Mexico have already forced major consolidation in recent years among the growers of Florida's biggest vegetable crop.

''A loser like this gets your attention really quickly,'' said Kern Carpenter, a South Miami-Dade grower who has been in the business for more than 25 years and whose family's tomato history dates back six-plus decades. ``You start to wonder, do you need to be looking to do something else?''

This year Florida tomato growers estimate consumer demand has been off 15 percent. The recession has forced consumers to cut expenses, and while tomatoes are a staple grocery item, for many people they're not a necessity. Add to that a decline in consumer confidence from the lingering effects of last year's salmonella scare, which incorrectly implicated tomatoes.

The reduced demand comes during a year when weather and soil conditions were so favorable that most growers produced more bountiful crops.

The situation got even worse when an influx of Mexican tomatoes flooded the market at low prices, raising allegations of potential trade violations.

Even when two freezes hit the state this year and wiped out some crops, it didn't do anything to change the market dynamics.

''Any time you have one hard freeze it normally generates higher prices,'' said Tony DiMare of DiMare Farms, whose family is one of the biggest tomato growers and packers in Florida and the country. ``Over 25 years, I've never seen that happen with no reaction in the marketplace. It just shows me how much product is truly in the marketplace that it caused prices to stay depressed.''

With costs up about 30 percent this year, industry leaders estimate that Homestead growers lost $2,000 to $3,000 per acre. Given that about 2,500 acres in Miami-Dade County are devoted to tomato farming, that could be as much as $7.5 million.

''The reality of the marketplace is you don't have the kind of market to make up for a year like this,'' DiMare said. ``The risk is a lot greater today than it was five years ago because of the additional cost.''

If prices don't start to increase and stabilize in the coming months the losses statewide could grow even more, as the industry enters its busiest part of the season.

''You've got an industry that's potentially hemorrhaging tens of millions of dollars in losses,'' said Reggie Brown, executive vice president of the Florida Tomato Growers Exchange. ``You can't lose that kind of money and stay in business.''

Michael Borek is the third generation of his family to farm tomatoes in South Miami-Dade. But given this year's losses, he plans to reconsider the future. Borek has had his own tomato farm in Homestead for five years and has lost money for four, but this year has been the worst by far. He's not sure what he's going to do to repay his $172,000 loan.

On the table for Borek will be everything from whether to grow other crops or get out of farming completely.

''I've stuck it out for as long as I can,'' Borek said. ``We're supposed to make a profit. The problem with farming is when you start out you know what your expenses are, but you don't know what you're going to get out of it.''

Borek isn't alone. Strano is also unsure about the future, after losses greater than anything he has seen in more than 40 years.

''You've lost a little money in the past, but nothing like this when you're devastated,'' said Strano, whose sales were off as much as 50 percent. ``You can't survive two of these. You can only get so far in debt; eventually you can't go anymore.''

Agricultural economists say that despite the concern among South Florida farmers, the situation may not have long-term ramifications.

''It's an ongoing challenge to be a fresh vegetable grower in South Florida,'' said Fritz Roka, an agricultural economist in Immokalee with the University of Florida. ``The industry has shown a remarkable resiliency.''
http://www.miamiherald.com/business/story/1021071.html

These farm businesses need to quit hiring illegals.

I make every effort to buy produce locally at the farmer's market during the growing season, knowing my food hasn't been handled by illegals. I buy from the same vendors, the ones who grow their own produce rather than purchasing from a wholesaler.

It is better to import tomatoes grown by Mexican labor in Mexico than bring the labor here where they can compete in other jobs after the season and use public benefits.

Believe me when I tell you, there's nothing like a Jersey tomato. Except maybe for home grown.

Originally Posted by ReggieMay

I make every effort to buy produce locally at the farmer's market during the growing season, knowing my food hasn't been handled by illegals. I buy from the same vendors, the ones who grow their own produce rather than purchasing from a wholesaler.

I agree!

The situation got even worse when an influx of Mexican tomatoes flooded the market at low prices, raising allegations of potential trade violations.

Suppose this effected anything? Duh..

Originally Posted by Richard

It is better to import tomatoes grown by Mexican labor in Mexico than bring the labor here where they can compete in other jobs after the season and use public benefits.

But the Mexican food is grown in filthy conditions.
That's my problem.
I'd rather have a $2 tomato from USA than a 50 cent tomato from Mexico.
The deciding factor for me is FILTH.

Have to agree with you WA! Fla. farmers were first thought to be the outbreak of salmonella from taco ingredients, but it turned out to be Mexican peppers that were the cause. Few of these of our largest trading partners have the same health and safety standards we do, an from what I have read, Mexican farmers have no problem recycling raw sewage to irrigate their crops.
What is disgusting is this guy could have taken those tomatoes off the market, by giving to food kitchens, and probably gotten a tax break for it. I fear this is an example of what is going to be done by commercial farms, even if they cannot get enough illegal workers to pick the fields. What an absolute waste, and I cannot post anything more as the cuss words that would be written would be not politically correct.

Mexican producers are likely to have a larger impact on canned tomatoes than fresh. The canning process sterilizes the tomatoes and there is less chance of there being food contamination.

Originally Posted by Richard

Mexican producers are likely to have a larger impact on canned tomatoes than fresh. The canning process sterilizes the tomatoes and there is less chance of there being food contamination.

I'm thankful for that sterilization!
I eat many cans of diced tomato's, about 4 a week.
I put it on pasta... try it!