This year's Italian tomato market is turning out to be very different from previous years thanks to adverse weather conditions, a change in the subsidy arrangement and a resolute policy among the four major canning companies to avoid making unnecessary financial losses. Hot weather has resulted in spoilage due to fruit infection, and sources in Naples say that the normal conversion of 22kg of fresh tomatoes to 1kg of finished product will be increased to 35kg following the need for greater selection and unprecedented wastage. The crop, which normally carries on into October, is expected to finish in the next two to three weeks, adding to the problems. Worst hit will be the so-called "late" or "third" crop, which will be out by 50% due to a water shortage in the key growing areas. Delayed payments of subsidies to growers under the new EC regime are not helping. Importers are reluctant to discuss progress of the new season's contracts with UK supermarkets, but it seems that business was concluded before the extent of the crop problems were known. In previous years these circumstances led to problems between packers and UK buyers due to cancelled contracts. This year packers have offered a limited shipment period, giving them the opportunity to negotiate further contracts at the end of the year. "Most of our new pack contracts extend to the end of December when we will negotiate additional quantities to cover January onwards," one importer commented. Contracts for choice grade and economy packs have been negotiated as a package since the growing demand for the loss-making economy product shows no signs of slowing. {{M/E CANNED GOODS }}

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