Tomatoes Italian tomato growers will be paid 20% more for their tomatoes than last year after negotiating an increase with the processors. Growers said they needed 25% more to make up for the fall in the EU tomato subsidy, which is down from €34.50 per tonne to €27.70. Last year's shortfall left no carryover stocks, encouraging processors to increase production by 300,000 tonnes on the back of favourable crop forecasts - 7% up on 2006. The production of whole plum will be cut to allow for an increase in chopped, stocks of which from last season ran out some months ago. By processing no more than 4.6 million tonnes this year the industry is confident of achieving opening prices 10%-15% higher than last year. "We have suffered from poor returns over the past decade due to periods of overproduction - investment in plant and machines has been impossible," said a Naples canner. With the EU subsidy ceasing next year, UK importers face at least two years of escalating prices. The failure of the Argentinian tomato crop due to bad weather will prevent UK traders topping up chopped tomato supplies. Meanwhile, China will overtake Italy as the world's second-largest tomato processor behind California. It produces mostly tomato concentrate for manufacturers, which is in demand in the Middle East and Africa. The two major processors that account for 70% of Chinese exports are both known to be planning major investments to expand their production. Tuna and sardines Tuna traders are warning that prices will hit all-time highs this summer due to scarcity of product. Traditionally tuna prices don't peak until September but Indian Ocean fish is already $1,200 per tonne, Western Pacific more than $1,000 per tonne and Eastern Pacific fish at similar levels. Moroccan sardine packers, meanwhile, face the problem of much of the catch being large fish. "How can we offer customers cans with one fish?" said a UK trader. "It wasn't too long ago that six to eight fish was the required count. Now we have reluctantly accepted two to three, of which many were two, but one fish per can won't be acceptable." Strawberries Spanish canners have delayed the start of the strawberry season due to heavy rain in the growing regions. Before the unexpected rain the planned tonnage was similar to last year's, but sources in Murcia are warning of a much reduced pack.

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