Not many people think about the price of tomatoes, but they really should pay attention. When tomato prices increase, it's usually a sign that many other products will be headed for a spike too. Tomato prices are a sign that people may be spending a lot more at the grocery store soon.
How Much Tomato Prices Increased
In November, people noticed that tomato prices went up. Their eyes were not deceiving them. The price went up a whopping 10.4%. In September, the increase was only 4.6%, which is common for that time of year.
What came as a surprise was that, back in August, the price of tomatoes decreased by 0.7%. No one saw the price of tomatoes increasing so much in just three months.
Why Tomato Prices Increased
Tomato prices are volatile. They go up and then they come down, and then they go back up again. They are extremely sensitive to inflation. There are some other reasons for increases that are important for all tomato eaters to understand.
Season Matters
During the summer months, there are many tomatoes available. It's the height of the tomato growing season, so farmers need to sell them when they are fresh. They will decrease the cost of them because that's the way they can get people to buy them in bulk. People will then freeze them or use them in other ways to preserve them.
In the colder months, farmers aren't able to produce as many tomatoes. Since they make their money from their produce, they need to increase the cost of the tomatoes to make up for the loss of production. When they make more money per tomato, they lose less money, so it helps them get by until the summer months when they start to have an overabundance again.
Decreased Demand
The demand for tomatoes during the colder months isn't high. People are celebrating the holidays, and unfortunately, many of the traditional holiday recipes do not call for tomatoes. While you would think this is a good thing, since farmers aren't producing many tomatoes anyway, it's really not good for them because they aren't making an income from them when no one is buying. This is why, when people do buy tomatoes, they need to make as much as possible from them.
Inflation Affects Tomatoes
The prices of food products and other items go up when the economy strengthens. It's a good sign when items start to increase in value because it means people have more money. This may not make many people happy because they feel as though the money they are making is being taken away by increasing prices, but over the years, inflation has shown to help foster equilibrium in an economy. Tomatoes are not resistant to the inflation spikes and declines, unfortunately.
Health Benefits of Tomatoes
With rising prices, it's important to remember that tomatoes carry many health benefits. They are a good source of lycopene, vitamin C, vitamin A, potassium and fiber, nutrients you should always include in your diet. While you may not buy as many tomatoes when prices are higher, they are still an important part of a healthy diet. At Tasti-Lee, we rotate our growing locations throughout the U.S. to make sure we provide our customers with the best tasting grocery store tomato all year long.