YB-10-2021-final-compressed

November 2021 THE 2021 PROCESSED TOMATO YEARBOOK



CONTENTS TOMATO NEWS SAS TOMATO NEWS 4•Editorial THE 2021 PROCESSED TOMATO YEARBOOK 6•About Tomato News is a special edition of www.tomatonews.com 7•Advertising and supporting opportunities 8•Order form To contact the Tomato News Team: 9•The year in review - To send a press release or discuss an article: PRODUCTION François-Xavier Branthôme 20•Costs of production [email protected] 27•Global production in 2021 - To advertise or to get listed in the directory: TRADE Madeleine Royère-Koonings 40•Architecture of world trade in 2020/2021 [email protected] 53•Tomato products trade tables 60•Trade maps ----------------------------- PRICES SPECIAL ISSUE OF 66•Tomato Paste Prices WWW.TOMATONEWS.COM TOP50 Edited by Tomato News SAS 70•Global TOP50 tomato processors VAT: FR64353235864 Legal deposit upon publication ISSN n° 1145-9565 CPPAP n° 0126W93846 Address: DIRECTORY Maison de l’Agriculture 71•Tomato Processors 88•Research organisations TSA 48449 91•Professional or non-profit organizations 84912 Avignon Cedex 9 (France) 94•Agricultural &Processing Equipments and suplies Magazine founded in 1989 by Bernard Bièche and Jacques Miklichansky President: Martin Stilwell Editors: François-Xavier Branthôme, Sophie Colvine, Madeleine Royère-Koonings Translator: Jonathan Hanley Designer: Josyane Chapelle Photos: iStock / Amitom Printed by Imprimerie Orta - Avignon (France) Tomato News 2021 Yearbook Page 3

EDITORIAL Friends and Colleagues, A further crop has gone by. The global production forecast in January 2021, a 40 million metric tonnes crop, shrank to 38,7 million tonnes in October. Once again, major weather events have played a significant part. California, traditionally one of the most stable and reliable growing area has failed to meet its forecast volumes. Falling from an initial forecast volume of 12,1 million short tons, through a forecast of 11,6 million in May, to 11,1 million forecast in August and a final total of just over 10,6 million tons. Heavy rain which coincided with the very last days of harvest may signal an end to their extended and severe drought and extreme heat in this - the largest single growing area of the world. The small carryover from crop 2020 coupled with this very short crop in California, will result in severe supply issues for the North American market in the first half of 2022. Elsewhere in the Northern hemisphere production has gone well with field yields in Iberia and Italy exceeding expectations. Surprisingly, global production, except for 2018 when severe drought in Spain coincided with heavy rain in Italy to result in a very short European crop, has remained largely unchanged since 2015 varying very little from a mean point of 38 million tonnes. Consumption which has surged with the lockdowns caused by the Covid pandemic, means that global supplies will remain tight for a further year. We look forward to seeing you at the WPTC congress in Argentina. With my best wishes to you all, Martin Stilwell, President Tomato News SAS Tomato News 2021 Yearbook Page 4



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THE YEAR IN REVIEW OCTOBER 2020 •In San Juan, the government announced grants for the construction of a tomato processing plant. In the medium term, it is expected to result in doubling the annual planted acreage. •The Bayer Group is testing new tomato varieties with resistance to Tomato brown rugose fruit virus (ToBRFV). • WPTC Crop Update as of 2 October 2020. •In Ontario, according to the Ontario Processing Vegetable Growers (OPVG), even though less contracts were issued in 2020, production is growing. •California 2020: Crop situation as of 3 October, projection to 10 October. •The California Tomato Research Institute is supporting a project on mechanical weeding. Fields trials are comparing the efficacy of automated and mechanical cultivators to control weeds on processing tomatoes. •The tomato processing sector saw a clear surge of imports in 2020, specially during March and April. •TOMRA announced the divestment of its processing tomato harvester mounted sorting machine ODENBERG NFM business to Westside Equipment Holdings LLC for the North American region. •ANICAV and EZ Lab sr launched an experimental project called “Tomato Blockchain“, with a view to guarantee their origin, their health and the social values of the operators. It will involve two pilot companies associated with the ANICAV, Rodolfi Mansueto Spa in the northern region and Compagnia Mercantile d’Oltremare Srl. In the south-central region. •Princes introduces on-pack QR-codes for its Napolina tinned tomatoes. This will allow consumers to access its sourcing story. •A total of 2,741,982 tonnes of tomatoes were processed in Northern Italy this year, about 95% of what had been contracted. •California 2020: Crop situation as of 10 October, projection to 17 October. •La Regina Atlantica, a U.S. subsidiary of Italian processor La Regina di San Marzano, will open a new food processing facility in Georgia. •Paste Prices: USA, Spain, Portugal, Italy, China, Chile. •A recent review article, “Thrombosis and COVID-19: The Potential Role of Nutrition“, discusses the role of nutrition in combatting the thrombotic complications of COVID-19. •Global Trade of Tomato Paste, updated 15 October 2020. •In Spain, the agricultural cooperative Las Marismas de Lebrija is planning to invest in second-stage processing facilities in order to produce ketchup and sauces. •A Japanese company, Morinaga Milk, famous for its unique flavor creations, developed Morinaga Delicious Tomato Yogurt, a “tomato yogurt that makes tomato haters faint in agony”. •In Italy, quotations indicate price increases from 4% to nearly 16%. •California 2020: Crop situation as of 17 October, projection to 24 October. •In Italy, the Princes Industrie Alimentari (PIA) factory invested in a cogeneration system to provide electricity, in addition to free steam and hot water. •Enza Zaden reported it identified the gene that provides high resistance to the Tomato Brown Rugose Fruit Virus (ToBRFV). •WPTC Preliminary 2020 Global Crop Estimate. •Mike Montna, president and CEO of the California Tomato Growers Association since 2008, was elected president of WPTC. •In Ivory Coast, the Carré d’Or Group, one of the biggest industrial groups in West Africa, after creating a plant for its own production and a company dedicated to tomato processing, selected CFT group to provide the production lines. •Kraft Heinz announced they will switch Ketchup bottles to single-material PET so that they can be recycled into food-grade PET. Their goal is to make all packaging recyclable, reusable or compostable by 2025. Other food and beverage companies such as Nestlé, Unilever and FrieslandCampina signed the European Plastics Pact in March 2020. •In The Philippines, the government is allotting more than 1 million Euros to upgrade a processing tomato plant managed by Northern Foods Corporation (NFC). .../... Tomato News 2021 Yearbook Page 9

THE YEAR IN REVIEW NOVEMBER 2020 •Architecture of the global tomato trade 2019/2020, part 2. •A new method has been developed to detect Tomato brown rugose fruit virus (ToBRFV) in infected plant and seeds. This test uses a new antiserum developed by Prime Diagnostics, which specifically reacts with ToBRFV. •The “100% Italian tomatoes“ label is performing well but does not satisfy growers, who want to redefine the rules with their industrial partners. •The review of the 2020 season in Italy by ANICAV shows 3 important factors, which will be addressed in more details during the online Tomato News Conference on Tuesday 17 November. •In California, expectations are that the La Niña climate pattern will worsen existing drought conditions in the coming months. •The University of Florida developed new breeds, which were used to process into tomato juice and were given a warm welcome during the testing. This could shift the state’s farming trends. •Japan is one of the smallest tomato processing countries, and one of the biggest importers of pastes and canned tomatoes, with an annual expenditure of JPY 30 billion. •In Spain, the acreage was slightly up while the subsidies were slightly down, compared to last year. •In Italy, the I.D.RA project, launched in October 2019, recently presented the first major measures in the fight against the red spider mite. It features experimental field-tests, guide lines and training for farmers. The focus group had to be postponed due to the pandemic. •In Spain, Alimentos Españoles ALSAT will install a new production line for tomato pulp/crushed tomatoes. It is scheduled to be operational before the 2021 season. •The European Union announced retaliatory tariffs on US products, including the tomato ketchup, over the Boeing-Airbus spat. It remains to be seen if a settlement could be agreed with the new president-elect Joseph R. Biden Jr. •Paste Prices: USA, Spain, Portugal, Italy, China, Chile. •Global Trade of Tomato Paste, updated 16 November 2020. •Kraft Heinz announced that the production of ketchup for the Canadian market will be moved back to Canada, to an existing plant in Montreal. •EU health claims are not working for manufacturers nor for consumers. The application process is complex, costly and time-consuming, and very few applications have received the green light so far. On the consumer side, most believe health claims are “just marketing”. •NRGene and Philoseed announced their collaboration to create ToBRFV resistant varieties, combining NRGene’s genomic AI solutions and Philoseed’s advanced tomato varieties. •In Japan, Kagome transitioned into a fully integrated vegetable company helping people live healthy lives. They established a consulting business unit to promote balanced diet, and they want to export this culture to the world. •In Malta, due to the new EU farm strategy, the agriculture sector is losing an annual Euro 3 million in state aid. This could mean a collapse of the industry and Malta would need a special status and/or a derogation in order to survive. •An Israeli research team has found a new way to combat the Tomato brown rugose fruit virus (ToBRFV): they found a rootstock that can resist the fungi. •In Italy, a new research project was launched by Italia Ortofrutta – Unione Nazionale. Its aim is to increase the quality and profitability of industrial tomatoes. •Presentation from Martin Stilwell on How the Covid pandemic will affect supply and demand in 2021/22, from the Tomato News online conference on 17 November 2020. DECEMBER 2020 •Trade statistics for the 2019/2020 year in Canada show an improvement in meeting the domestic demand. •The Indiana based tomato processor Red Gold Inc. has seen a huge increase in demand, due to the pandemic but also to changes in consumer behavior. •The French groups Terres du Sud and Mireolian have entered a partnership. As a result, Les Jus de Marmande has now become Les Jus du Soleil. .../... Tomato News 2021 Yearbook Page 10

THE YEAR IN REVIEW •Tunisia ranked 10th in the world in terms of processing tomato production in 2020. The Code of Ethics for Social and Environmental Sustainability has been approved during the Assembly of the IO Pomodoro, and an Ethics Committee has been created. •Francesco Mutti’s presentation during the 2020 Tomato News Online Conference. The 8th edition of the “Filo Rosso del Pomodoro“ has taken place online. Topics included the importance of data, the new challenges of the industry, the increase in consumption. •California is facing the spreading of a very challenging resistance-breaking tomato spotted wilt virus. •The Canadian company ATS Automation Tooling Systems Inc. intends to acquire CFT S.p.A. •Overview of the different Information to Consumers policies: Nutri-Score introduced in Germany, rejected in Italy with an alternate proposal, Nutrinform and synthesis from Tomato Europe. •Kraft Heinz will produce ketchup in Canada, using American-grown tomatoes for the time being and later Canadian-grown tomatoes. •The Giglio Group SpA signed an agreement with the Mutti Group in order to implement Mutti’s marketing strategy, promotion and distribution on the main marketplaces in China. •Dossier on India: the sleeping tiger? – Part 1: agricultural situation and structure of the industry. •João Tavares Correia‘s presentation during the 2020 Tomato News Online Conference. •Paste Prices: USA, Spain, Portugal, Italy, China, Chile. •Syngenta Vegetable Seeds announced the launch of its first ToBRFV resistant variety at the beginning of 2021. •A research programme organized by The Tomato Foundation and carried out at SSICA delivers 4 EFSA claims for tomato products. A fifth claim is being worked on. •The 10th edition of the Brazilian Processing Tomato Congress was held online in November, summary of the most important points regarding the production of processing tomatoes. •Dossier on India: the sleeping tiger? – Part 2: market and potential for development. •Global Trade of Tomato Paste, updated 16 December 2020. •In Italy and particularly in Southern Italy, the industry has faced many obstacles this year, leading to difficult trade dynamics, especially for private label products. •Brazil saw a decline in quantities processed as well as a slowdown in the country’s consumption. •François-Xavier Branthôme‘s presentation during the 2020 Tomato News Online Conference. JANUARY 2021 •The Belgian start-up Ask Attis B.V. launched a mobile application called PLANTICUS, in order to detect disease and vermin on food crops. •The Italian association Assoplant published a number of observations regarding the plant nursery industry. •In Italy, Princes Industrie Alimentari met virtually with its agricultural suppliers to take stock of the 2020 season and present the strategic directions for 2021. •The U.S. Processed Tomato Stocks-on-Hand Report for December 1, 2020 shows that inventory is down 13.3% from the prior year level. •The Dutch food maker Enrico-Glasbest took over Bertolli from Unilever and is planning to unlock its “enormous potential”. •The International Centre of Insect Physiology and Ecology (icipe) released a parasitic wasp, imported from Peru, which will control Tuta absoluta in a natural way. •Researchers from the University of Tsukuba used Target-AID gene editing technology to introduce single-base changes into multiple genes in tomato. Their experimentation on genes associated with carotenoid accumulation resulted in elevated levels of carotenoids. •In Japan, a tomato made with CRISPR/Cas9, developed by the University of Tsukuba and startup Sanatech Seed, has been approved for growing and consumption. •U.S. Stocks as of 1 December 2020. •In Argentina, the processing tomato harvest started in mid-December in the region of Valle Viejo. •Paste Prices: USA, Spain, Portugal, Italy, China, Chile. •The American company Agdia, Inc added another test kit to their Tomato brown rugose fruit virus (TbBRFV) diagnostic suite: a rapid, RNA-based isothermal molecular kit. .../... Tomato News 2021 Yearbook Page 11

THE YEAR IN REVIEW •The University of California Cooperative Extension (UCCE) is organizing an online workshop on Friday 22nd January. •Global Trade of Tomato Paste, updated 14 January 2021. •In Europe and the USA, the pandemic had positive effects of sales: La Doria increased its revenues by 18,9% in the first nine months of 2020, pizzas’ consumption in increasing and sales are up for Campbell Soup, specially the condensed soups with an increase of 21% compared to last year. •A new plant will be built in Kyzylorda region, in Kazahkstan. In Pakistan, the Small and Medium Enterprises Development Authority (SMEDA) planned to establish an agro-food facility to promote export. Indian government is spending about INR 10,000 crore on augmenting infrastructure in the food-processing sector. •The Spanish Ministry of Agriculture, Rural Development, Population and the Territory released funds to support the development on 16 companies in Extremadura, such as Pronat, Alsat and Monliz. •An online public auction will be conducted in February for the former Mizkhan plant in Stockton, California. •Russia continues to increase its capacity in order to achieve self-sufficiency, however they are still dependent on external supplies for some product categories. •California’s tomato processors have contracts for 11 million tonnes in 2021. •CGTA published the first seven price proposals from California tomato processors for 2021. •The OI Pomodoro Centro Sud published a tender “Golden Red from EU“, to promote agricultural products in India. •The processing season started early January in Upper Egypt for the sun-dried tomatoes. •In The Netherlands, Unilever is currently trialing portable travel factories. They operate inside a 40ft see container and can be shipped worldwide. •WPTC released a preliminary forecast for 2021 for some countries; the first global world production estimate will be released mid-February. •In Italy, ISMEA published an annual trade report, confirming the essential role played by Italy at a global level. FEBRUARY 2021 •Argentina is expecting a record production this year, with more than 540.000 tonnes, if all goes well. •Price negotiations for the 2021 season have started in Italy. •In Italy, the annual trade report (ISMEA) shows very satisfactory sales. The effects of the pandemic were more sales in local shops and less out-of-home catering. •Canada and the UK are boycotting imports from “Chinese forced labor“, including those of tomato-based products. This follows the ban set in September by the Trump administration. •The UC Davis University of California developed a software program calculating fertilizer needs for the processing tomatoes. •California is at risk of drought, in spite of the recent snowfalls. The situation is however slightly better than last year’s. •Tomato harvest started in Australia, in northern Victoria and southern South Wales. Processors need to restock after the panic buying caused by the pandemic. •The Bangladesh-based company Pran-RFL group started using aseptic processing for tomato pulp to enable its export. •The European research project HARNESSTOM, in collaboration with the CTAEX, aims to increase the resistance and quality of tomato varieties. •The tomato harvest started in New-Zealand, with a good quality crop and good harvesting conditions. •Researchers from INRAE analyzed more than two million minor variations of the tomato genome and identified genes that could be involved in the flavor of tomatoes. •Global food trade has been upended by a container crisis, due to China paying huge premiums for containers. •Paste Prices, February 2021: USA, Spain, Portugal, Italy, China, Chile. •Global Trade of Tomato Paste, updated 17 February 2021. •In Spain, water reserves are at about 58% of their capacity, thanks to recent rainfalls. •France is now the world’ third largest importer of tomato products. •Obituary: Steve Smith, Senior Director of Agriculture at Red Gold. •Various methods have proven effective to eradicate the ToBRFV virus: Groen Agro Control‘s research showed disinfecting drain water with ozone is very efficient, Luyx Ultrasound has built a strong underwater ultrasound transmitter which fights tobamoviruses effectively. .../... Tomato News 2021 Yearbook Page 12

THE YEAR IN REVIEW •WPTC Forecast as of February 16 is currently at 39,5 million tonnes. •In Extremadura, the average price for the season is EUR 78. •In California, a pathogen causing vine decline, the fusarium falciforme, is creating significant concern or the tomato producers. •To date, the impact of Brexit on tomato imports to the UK has not been significant. •Portugal increased the financial aid granted to tomato growers. •In Portugal, the reference price has now been agreed at 83-85 Euro/mT. •Tomato producers’ organizations and representatives from the IO Nord Italia finally reached a framework agreement, with a price at 92 euros per tonne. MARCH 2021 •Steel prices have dramatically increased recently. •In France, the large chain retail stores are asked by the processing tomato growers organizations to act responsibly in the negotiations, so that the production sector can return to an economically viable state. •Global imports of Tomato Products, updated 2 March 2021. •Massimo Passanti (Ravenna) will lead the Federazione Nazionale Pomodoro da Industria. •In Greece, Minerva SA is taking over the processed tomato products sector from Elais-Unilever, and the tomato-processing factory in Gastouni. •The CQLP brand (C’est Qui Le Patron), the “consumer’s brand”, launched in France in 2016, is now arriving in Italy as Chi è il padrone?! and is also marketed in other European countries). •Scientists from the John Ines Centre produced a tomato enriched in L-DOPA, which is used toproduce a Parkinson’s disease drug. This could therefore mean a cheaper way to produce the drug. •Tomato News hosted a Tomato Foundation Webinar on Tomato Products, Blood Health and Labelling, a complete update on the ample study carried out at SSICA. The webinar was coordinated by Gwen Young and presented by Dr. Luca Sandei. •In Dominican Republic, growers started harvesting, and the production target represents a 25% increase compared to last year’s results. •Argentina might suffer from a slight drop in production this year, due to persistent rains and hail in February, and in spite of increasing the dedicated surfaces. •In Italy, the Megamark supermarket chain publicly opposes illegal employment and the Anicav has taken specific action against it, such as joining as a partner of the Fi.Le. – Filiera Legale project. •Paste Prices, March 2021: USA, Spain, Portugal, Italy, China, Chile. •TOP50 tomato processing companies worldwide in 2020 •Global Exports of Tomato Paste, updated 15 March 2021. •FBR ELPO launched a new aseptic filling machine, the Mod. Mustang, with double head and filling capacity up to 1.400 bags per hour. •In Spain, the Las Marismas de Lebrija cooperative’s next harvest is put in jeopardy by the increasing cost of carbon dioxide emissions, now amounting to 400K euros. •La Doria Group’s results improved significantly in 2020, and were far ahead of expectations. •In the U.S., growers and processors have to be rigorous in proportioning their 2021 pack according to customer needs. •U.S. Processed Tomato Stocks-on-Hand Report for 1 March 2021 •Conserve Italia has set 2 goals: becoming more local by assembling 50% of the crop within a few dozen kilometers of the Apulia plant and developing mechanization of harvesting operations. •CTGA announced it has reached the 2021 price agreement with all California processors at USD 84.50 per ton. •Spanish exports show a growth in all sectors and particularly in concentrated purées with an 8% growth over the past ten years. •Italian foreign trade is performing well and Conserve Italia is currently the best-selling Italian brand in the UK. •Agdia launched a ToBRFV ImmunoStrip, for use in the lab or in the field, and with results visualized within 30 minutes. http://www.tomatonews.com/en/get-listed_5.html .../... Tomato News 2021 Yearbook Page 13

THE YEAR IN REVIEW APRIL 2021 •The final results for the 2020 campaign were compiled by the IO Pomodoro Nord Italia. They show changes in the distribution among the different categories. •Global imports of Tomato Products, updated 1 April 2021. •A review article was recently published by the European scientific competence network EU-COST “EUROCAROTENE”, on dietary suggestions for major carotenoids. •WPTC Crop Update as of 2 April 2021 •In Italy, a request for the PGI “Peeled Tomatoes of Naples” is being met by an opposition from the regional government. The Director General of Anicav added that “The PGI recognition must be linked to only one of the stages of production”. •Summary of the FEGA Aid by region for the last 5 years in Spain. •2020 has been a year of consolidation for Chile and 84% of their exports are to Central and South America, as well as to the Far East. •Kraft Heinz is planning to increase ketchup production in the US to balance the shortage created by the Covid pandemic. •The American owned Red Gold company announced there was no shortage of ketchup, as the company had prepared for the surge. •An exceptional wave of cold weather hit Western Europe at the beginning of April, after a week of warm weather, causing severe damage in many orchards and vineyards. Some damages have been reported in France, Italy and Greece so far. •OI Pomodoro Nord Italia reports that 131 contracts have been filed for the 2021 season. •CFT and Heinz have a long-standing collaboration. Heinz intends to expand its production capacity in Mexico and has chosen CFT’s solution for the ketchup production line. •The U.S. Secretary of Agriculture declared drought conditions in California, in 50 counties, comprising most of the tomato producing counties. •Kagome stopped importing tomato paste from China’s Xinjiang region, following up on reported abuses against Uyghur Muslims. •Paste Prices, April 2021: USA, Spain, Portugal, Italy, China, Chile. •The cost of processing tomatoes has increased by 7% compared to the average reference price for the period 2018-2020. •Reports from processors and growers on tomato seed varieties being unavailable or delayed led us to investigate the issue with several seed companies and the American Seed Trade Association. •Italian plant nurseries are busy developing a technological and sustainable approach, using alternative strategies instead of chemical inputs. •Obituary: Ben George (HeinzSeed and Heinz Agricultural Research until his retirement in 2004). •Global Exports of Tomato Paste, updated 15 April 2021. •The tomato processing industry in Thailand (part 1 & 2). •Peru’s exports have increased in 2020 and this trend seems to be lasting in 2021 as well. •The Aseptic Bag Manufacturers Association (ABMA) represents manufacturers, promotes the development of the market, facilitates the exchange of technical information and represents its members nationally and internationally. •he impact of the pandemic varies greatly between the different production regions. In average, paste exports worldwide grew by 4% over the past year. •U.S. Processed Tomato Stocks-on-Hand Report for 1 March 2021 MAY 2021 •The Italian Food Spa (Petti group) is currently under investigation, and tomato products were seized, reportedly of foreign origin instead of 100% Italian. •WPTC Crop Update as of 30 April 2021 •Global imports of Tomato Products, updated 3 May 2021. •The early summer forecast predicts drought conditions in Western Europe and a stronger monsoon in the United States. .../... Tomato News 2021 Yearbook Page 14

THE YEAR IN REVIEW •In Italy, Princes Industrie Alimentari (PIA) and La Doria are focusing in sustainability: PIA is aiming for a 360° sustainability, already reduced its environmental impact and CO2 emissions and is working on energy efficiency, La Doria signed a 10-million-euro loan agreement directly related to achieving specific ESG (Environmental, Social, Governance) targets. •Researchers from Boyce Thompson Institute created a reference genome for S. pimpinellifolium, our tomato’s wild ancestor, which will allow plant breeders to improve fruit flavor, size, ripening, stress tolerance and disease resistance in today’s S. lycopersicum (our modern tomato). •Auctioneers Rabin Worldwide have conducted an online public auction for the contents of the former Olam West Coast aseptic tomato processing and packaging plant. •Exports of Tunisian dried tomatoes have nearly doubled in 5 years. The GICA (conglomerate of canned food industries) is organizing a campaign to promote, develop and market them locally and abroad. •Dr. Elisabeth Varga talked about “Alternaria toxins in tomato juices” during the International Fruit & Vegetable Juice Association (IFU) online technical webinar. •A team of researchers from the University of California, Davis and from the University of Nottingham, led by Barbara Blanco-Ulate, demonstrated how susceptibility factors accumulating during the ripening process promote infection by fungal pathogens. •Top Ten processing countries in 2021: while trade is slightly increasing, the overall contribution of the largest tem countries has decreased. •The Morning Start Packing Company published its newsletter at the end of April, which contained an open letter by Chris J. Rufer explaining how the California processing tomato industry has a history of ups and downs in production volumes, prices and profitability. •Paste Prices, May 2021: USA, Spain, Portugal, Italy, China, Chile. •In Michigan, farmers were concerned by the frost in early May, as that happened before and acres were lost. •Tomatech Ltd announced a major success in the fight against the Tomato Brown Rugose Fruit Virus (ToBRFBV). They are filing a patent for DNA markers that elicit resistance to ToBRFV. •Global Exports of Tomato Paste, updated 17 May 2021. •In California, the increase in demand from the processors is putting pressure on the tomato crops, and it is the first year tomato processors have not been able to contract all the tons they need. •Bayer announced the availability of new varieties with strong intermediate WPTC Crop Update asof 30 April 2021 •The European Commission has started a consultation process, with a view to allow New Genomic Techniques (NGTs) to be used, as they can promote the sustainability of agricultural production. •Global market situation in 2020 for canned tomatoes: 11% increase compared to the 3 previous years, the top 15 countries importing 80% of th4 global quantities. •WPTC Crop Update as of 24 May 2021 •In South Italy, an agreement has finally been reached, with average reference prices at 105 Euros/metric tonne for round tomatoes and 115 Euros / metric tonne for long tomatoes, with a 40% increase for organic. •A study carried out by the Institute for Energy and Environmental Research (ifeu) and commissioned by Flexible Packaging Europe, shows that flexible pouches are better packaging options, in terms of environmental performance, for pasta sauce. •A recent study showed that whole tomato powder was more efficient than extracted carotenoid lycopene in quelling post exercise inflammation in athletes. However, the small size of the study makes it difficult to draw big conclusions. •In California, tomato processors reported contracts for 10.5 million metric tonnes in 2021. JUNE 2021 •ANICAV is supporting a few projects in the following areas: promotion of the Italian tomatoes in America and Asia, promotion of canned legumes, innovation, sustainability, medical research, PGI. •A recent report issued by Mintec confirms sharp increase of steel and packaging prices. •Global Imports of Tomato Products, updated 1 June 2021. •The industry is facing a global wood pallet crisis, due to a multitude of factors, thereby putting even more pressure on an already challenged supply chain. .../... Tomato News 2021 Yearbook Page 15

THE YEAR IN REVIEW •The CropScope agricultural ICT platform has been enhanced with new functionalities, announced Kagome and NEC. •WPTC Crop Update as of 1 June 2021 •The Tomato Foundation‘s recent results show additional nutritional values the industry can use to support market growth. •Kraft Heinz is planning to invest in its plant in Kitt Green, Wigan, in order to bring back to the UK production of Heinz sauce, as well as further upgrading machinery and delivering on its social responsibil- ity commitments. •In Spain, an International research group discovered that the genetic mechanism involved in the ageing of plant leaves (named CHLORAD) is also playing a fundamental role in the tomato ripening process. •The Carré company, together with Hydrokit, developed a robot assisted weeding, ANATIS. This connected Co-bot assists farmers by autonomously performing mechanical weeding tasks. •Kraft Heinz announced it reached an agreement to purchase the Turkish Assan Foods. •Paste Prices, June 2021: USA, Spain, Portugal, Italy, China, Chile. •The Italian canning industry is concerned about a potential shortage of tinplate and/or a noticeable increase of price. •Global Exports of Tomato Paste, updated 16 June 2021. •In Italy, several hundred tonnes of Egyptian tomato paste were seized in the Agro Nocerina Sarnese region, due to contamination by pesticides (more than legally authorized). •In California, in the light of heat waves and water shortages, food processors have reduced the tonnage of tomatoes they plan to buy. •In the UK, tinned tomatoes suppliers reintroduced supermarket rationing, in order to avoid stocks running out. •Report on US Inventories on 1 June 2021 •Worldwide imports of sauces & ketchup increased by 3% in 2020 compared to the previous year. •Press Release from ANICAV about the attack against canned tomatoes in Italy. •The EU is currently investigating a potential renewal of authorization for Glyphosate but no changes are fore- seen at this stage. •Tiberio Rabboni was re-elected as president of the OI Pomodoro Nord Italia for the next three years . •US Inventories of Tomato Products on June 1, 2021. •SIG upgraded their high-speed small aseptic carton-filling machine, which now had a capacity of 24,000 packs an hour. •Presentation from Martin Stilwell at the Tomato News Conference (June 8). JULY 2021 •Global Imports of Tomato Products, updated 1 July 2021. •The price of carbon emission allowances has soared almost 140% since January 2021, past Euro 58/T. •Steve Smith, senior director of agriculture at Indiana based Red Gold, who passed away in February 2021, leaves an amazing legacy with the creation of the Steven E. Smith Memorial Scholarship. •In Spain, harvest was due to start beginning of July in the Seville province, crop results will be highly dependent on water availability throughout the summer, and this is very uncertain at this stage. •WPTC Crop Update as of 2 July 2021. •US exports of tomato paste have increased by 6% in the past few months. •A review of the global dimension of the Tomato Yellow Leaf Curl Disease (TYLCD) has been recently published. •The Agrimax project will open two new pilot plants in Spain and Italy, aiming to address Europe’s food waste problem. •California: Crop situation as of 3 July. •Tomato News Conference, June 8, Mark de La Mater on Processing Tomato Productions and Markets in North America. •California: Crop situation as of 10 July. .../... Tomato News 2021 Yearbook Page 16

THE YEAR IN REVIEW •Paste Prices, July 2021: USA, Spain, Portugal, Italy, China, Chile. •A recent study on the tomato moth Tuta absoluta identified a few species showing a high pest reduction capacity, which will then be tested under commercial crop production situations. •Global Exports of Tomato Paste, updated 19 July 2021. •California: Crop situation as of 17 July. •In the UK, food price inflation is going through the roof, mainly due to Covid and Brexit, but not only. •In July, the EU regulations have become stricter for mandatory import checks for Tomato Brown Rugose Fruit Virus (ToBRFV). •Tomato News Conference, June 8, Maria Chiara Cavallo on First Results of Northern Italy Interbranch Organization’s Survey on Agricultural Production Costs. •WPTC Crop Update as of 23 July 2021. •California: Crop situation as of 24 July. •Bisphenol B, used in some countries as a substitute for Bisphenol A, has now been classified as a Substance of Very High Concern (SVHC) under the European REACH. •Canada-made Heinz ketchup is back, in the new ketchup line at the Mont Royal facility. •Dossier on the processing tomato industry in Iran, Part 1. AUGUST 2021 •Part 2 of the Processing tomato industry in Iran •California: Crop situation as of 31 July. •When infested by caterpillar, the fruits of the tomato plant send electric signals to the rest of the plant. That has been shown in a recent study in Frontiers in Sustainable Food Systems. •In Nigeria, 6 years after starting, the Dangote factory is only operating at 20% capacity, as farmers do not have enough tomatoes. •The European Union agreed on a new Common Agricultural Policy (CAP), which will be effective between 2023 and 2027. The Portuguese Industry is worried about its consequences and the potential loss of competitiveness. •Consorzio Casalasco Del Pomodoro and QuattroR, an independent private equity fund, finalized a strategic partnership, to support the development plan of Casalasco. •Mr. Takashi Tsutsumi, Executive Director of the Japan Tomato Processors Association (JTPA) passed away in July. Ms. Mie Kogoma, until now Director of JTPA, will succeed him per 1st August. •The processing season started in Northern Italy, with a loss of 6% due to recent hailstorms, but with a good degree of brix. •California: Crop situation as of 7 August. •The European Union is committed to reducing greenhouse emissions to reach neutral levels by 2050. Following a 2-year study on carbon farming, if implemented, it could lead to farmers to obtain “carbon credits“ which they could then sell on the market. •The California Water Resources Control Board has voted an emergency water curtailment. This follows the declaration of a drought emergency for most counties in California in July. •The 53rd edition of Cibus Tec has been moved to October 2023. However the first edition of the Cibus Tec Forum will be organized in October 2022. •California: Crop situation as of 14 August. •Paste Prices, August 2021: USA, Spain, Portugal, Italy, China, Chile. •California: Crop situation as of 21 August. •In California, a decline in output was already expected, with a reviewed forecast down to 11,6 million tons, but it could fall down some more. •The Serbian company BFV-Processing of Tomato and Fruits is investing in the construction of a factory in Kula. •Global Exports of Tomato Paste, updated 19 august 2021. •WPTC Crop Update as of 20 August 2021. •More and more studies are showing evidence of the link between consumption of tomato products and a reduction of the risk of prostate cancer, thanks to the anti-cancer, anti-progressive and apoptotic effects of Lycopene. •California: Crop situation as of 21 August. .../... Tomato News 2021 Yearbook Page 17

THE YEAR IN REVIEW •The European Commission adopted a proposal in July for a new Carbon Border Adjustment Mechanism, with a view to reducing global emissions instead of pushing production outside Europe, resulting in “carbon leakage”. •Advantages of soil mulching in agriculture (part 1 & part 2) •The 2021 production season is on full swing in Italy, after a complicated start due to hailstorm damage in the North and climatic hazards in the South. •California: Crop situation as of 28 August. SEPTEMBER 2021 •In California, the crop forecast has been revised down to 10.069 million mT, which could mean a historical low for the US inventory position. •CTAEX produced a report on Tomato Processing in Spain, which underlines how important is the tomato processing industry in Extremadura as well as the position of Spain as a main producing and exporting country. •In Canada, Ontario’s processing tomato growers established the first grower-led program, which compiles a complete record of their crop production. •In Northern Italy, 70% of the contracts have been delivered by the 6 September, with an excellent brix degree close to 5°. •Global Imports of Tomato Products, updated 1 September 2021. •WPTC Crop Update as of 3 September 2021. •California: Crop situation as of 4 September. •In France, Le Panier Provencal, one of the three biggest tomato processors in France, has launched its own range of finished products for end-consumers. •The Ukrainian exports of tomato paste are mainly absorbed by the EU countries. •The EU carbon price reached a new record at 61 Euros. •A new study shows that the only way to properly assess health benefits of tomatoes requires all players of the chain. •California: Crop situation as of 11 September. •Paste Prices, September 2021: USA, Spain, Portugal, Italy, China, Chile. •Global Exports of Tomato Paste, updated 15 September 2021. •The President of the Republic of Ghana inaugurated the new Weddi-Africa Tomato Processing Factory in the Bono region, which will be able to process 40,000 metric tonnes per annum. •A team of researchers from the University of Guelph Ridgetown Campus in Ontario is investigating the use of tomato waste for pest control. •Valumics, a research project funded by the EU H2020 programme, published its report on Italian processed tomato value chain. •The EU-funded Virtigation project has been launched in order to tackle viral diseases in tomatoes and cucurbits, specifically the ToBRFV and ToLCNDV viruses. •In California, the Morning Star Company is exploring the AI options to improve yields and overall profitability, as well as the long-term sustainability of our natural resources. •WPTC Crop Update as of 17 September 2021. •Costantino Vaia, the general manager of Casalasco, was interviewed during Cibus 2021. •California: Crop situation as of 18 September. •ISHS published the Proceedings of the 6th International Symposium on Tomato Diseases: Managing Tomato Diseases in the Face of Globalization and Climate Change •Elisabeth Varga held a webinar at the IFU on Alternaria toxins in tomato products. •In Italy, a new regional plan to fight the tomato-killing bacteria, jointly set with the IO, has been agreed by the regional authorities. •Negotiations have started between shareholders of La Doria S.p.A. and Investindustrial. •California: Crop situation as of 25 September. •Obituary: Geraldine Chirnside. •Chinese exports of tomato products remain very steady, in line with the past five years, with a variation under 1%. •Upcoming webinar on using genetic resource data for breeding, from the G2P-SOL Advanced Training School II in October. Tomato News 2021 Yearbook Page 18



COSTS OF PRODUCTION 2021: COSTLY TOMATO... High costs for the worldwide industry A long time before the particularly adverse weather conditions of spring and summer 2021 disrupted harvest operations and jeopardized industrial processing programs, the worldwide industry knew that it was heading into a particularly difficult year in economic terms as it approached the 2021 production season. As early as the fall of 2020, when the CoVid pandemic was imposing unprecedented constraints on all industries throughout the world and causing radical shifts in lifestyle and consumption habits, it became obvious that the global health crisis and the early signs of recovery that followed were occurring in the context of rises in the costs of production and processing that had virtually never been seen before, affecting plant-health inputs, tomato raw materials, energy, labor, packaging, polymers, wood, transport, various industrial chemical substances, environmental constraints, etc. Maritime transport: with the pandemic, costs have exploded One of the most “obvious” effects of the recovery that got underway at the end of 2020, if not the one with the highest impact, has been the soaring costs of maritime transport over just a few months. Renting a container for transfer between China and Europe cost four times more in October 2020 than in November 2019. This explosion in costs can be explained by the very high demand for manufactured products shipped from Asia. The main items have been medical material, masks, medicines, etc., as well as items of electronic equipment in response to the newly popular trend of working from home. Consequently, the demand for shipping all these products has taken off, and the availability of containers has shrunk considerably. This is all the more true for the fact that restrictions linked to the Covid-19 health situation have also disrupted the world’s shipping trade in terms of human labor, leading to major delays in ports, just when they were no longer being affected by dockers’ strikes. In January 2021, 20-feet containers shipping between China and Europe cost USD 4,400, according to the Shanghai Containerized Freight Index (SCFI), whereas they were being negotiated for USD 1,000 in July 2020, and the price for 40-feet containers had jumped to more than USD 9,000. However, at the time, there was a distinct shortage of available containers and shipping capacity. Three factors explain this situation, according to one expert in maritime transport and logistics: “a decrease in the number of available containers, a sudden increase in demand over the second semester of the year and, above all, the fact that trans-Pacific freight was absorbing all of the world’s capacity. Furthermore, a lot of containers were blocked in the United States, but also in Australia where container-carriers were hampered in their movements by labor strikes, and in China due to the temporary closure of a number of maritime terminals because of the strict enforcement of control measures against the Covid-19 pandemic.“ “During the first semester of 2020 and over the confinement period, shipping companies reduced their capacity by 30%. And time was needed to get container-carriers back to sea. Suddenly, demand took off, causing a real disruption in the international markets with regard to required services,“ explained the head of a users’ association of shipping transport clients. “Consequences have been huge for shippers (processors and distributors, freight company clients). The increase in the price for shipping containers between China and Europe has impacted most of the industrial sectors, both in terms of import and export. Furthermore, some of the shipping companies have stopped responding, response delays have increased considerably, and this has imposed on shippers the need to book 50 days in advance instead of the usual 10 days.” .../... Tomato News 2021 Yearbook Page 20

COSTS OF PRODUCTION Industry professionals have reported “a generalization of the increase in shipping costs, which has hit all maritime routes.“ In August 2021, while shipping operators responsible for 90% of the world’s exchange of goods could still not respond to the demand driven by the recovery of the economy, freight prices were multiplied by five compared to the beginning of the health crisis. Boosted by this intense situation in terms of maritime transport, industry results literally exploded. According to one cabinet expert, “the profession recorded in 2020 almost $16 billion of profits, which is approximately twice the total amount generated over the five previous marketing years.“ This invoice was previously paid by relevant companies, but it could, in the end, also have an impact on the spending of consumers. According to the Mintec assessment released in late August, the cost of containerized freight has reached an all-time high. The global shipping composite index (based on 11 east-west trade routes) reached a monthly average of USD 8,796 per 40-foot container in June. This is up +24% month-on-month, and up a “staggering” +309% year-on-year. “Shipping rates are poised to remain elevated for the foreseeable future,“ says Mintec. “Bimco, the world’s largest international shipping association, expects firm prices to prevail through Q4 2021 at least, and most likely through H1 2022, stating that high freight costs are still being priced into contracts for the next 6-12 months.“ “Additionally, experts predict that it could take at least until late Q4 2021 to clear the port backlog at some of the key trade hubs. This scenario presents upside price risk, particularly for goods moving from Asia to Europe and the Americas, such as coffee, prawns, mangoes and rice...“ The index represents a market rate for freight for any given shipping lane for a 40’ container. (Source: Statista) Steel: why have prices taken off? The tomato processing industry, which is a major user of equipments and containers in steel and tin, is particularly vulnerable to incidents occurring within the industrial metal sector. In fact, the brutal increase in the price of steel in recent months has also caused a number of concerns as the processing season gets underway. Whereas the price of steel recorded a decrease throughout 2019, right up until the third term of 2020, prices then jumped by 15 to 25%. “I believe that we have not known such a sharp and sudden increase since the crisis of 2008,“ stated an expert of the metal industry in February 2021. “There was an initial increase in prices in November (2020). Then we saw a sharp acceleration of this increase in December, and it continued into the new year.“ .../... Tomato News 2021 Yearbook Page 21

COSTS OF PRODUCTION It was mainly supply delays that got longer. “After what used to be an almost immediate availability, we shifted to much longer delays, up to three or four months for certain categories of products,“ confirmed the same source. Whereas the price of a tonne of steel from blast furnace installations was recorded at approximately EUR 250 before November, the same quantity was being negotiated at around EUR 600 during the first semester of 2021. A discrepancy between offer and demand “With the health crisis, the sudden interruption of industrial processing in Europe around mid-March, and a collapse of end-demand, the major steel operators decided to stop blast furnace operations,“ explained an expert of the steel market. “About a dozen of these installations were shut down, accounting for about 50% of Europe’s output! With the economic relaunch during spring, as long as demand remained weak, current stocks were sufficient,“ continued the same source. “The situation reached a certain balance at the approach of summer, and there was a progressive recovery of demand as September 2020 got underway. But at the same time, manufacturers decided not to restart the blast furnaces. Surplus stocks ran out while demand continued to grow, with a further takeoff in supply needs at the end of the year. This discrepancy between the lack of supply and a very heavy demand created tensions for the prices under negotiation for over-the-counter transactions on a month by month basis.” So the brutal rise in prices was also accompanied by a shortfall of available products, leading to a major lack of several particular product ranges. According to operators of the steel industry themselves who were questioned last spring regarding the evolution of the situation, “the possibility of a return to normal is not an option for the near future. Some manufacturers [...] announced that they intended to restart their blast furnaces. But such installations require several weeks to restart properly. It is expected that the impact will be felt during the second term, provided of course that demand remains high.“ At the beginning of summer 2021, it was obvious that the situation was not improving. According to sources within the worldwide metal industry, the rise in the cost of raw materials was hindering any recovery. The decrease in production, the increase in requirements linked to European recovery plans, the positioning of China and the United States on premium markets – all this led to an explosion of demand and a significant rise in prices. “Even for the metal industry, it is a hard blow at a time of post-Covid recovery. Raw material costs have increased between 30 and 100%. We had already seen increases for special steels and processed steels, but in this instance, the increases have affected basic steel as well; it affects everyone,“ noted the head of a steel industry association. “During the confinement, steel manufacturers shut down the blast furnaces. It takes several months to start them up again. So production is very insufficient.“ With Chinese activity picking up again ahead of the European economy, which has benefited from stimulus plans, global demand has literally exploded. .../... Tomato News 2021 Yearbook Page 22

COSTS OF PRODUCTION In its information regarding the situation on the flat steel market, the SEFA (European Association of Steel Drum Manufacturers) wrote on 25 March 2021 that “experts had already suspected in January 2021 that the situation on the European flat steel market could become even worse. This has [finally] happened and [was] likely to continue throughout the year.“ At this time, SEFA said its industry would “continue to be affected by these extraordinary supply shortages in the coming months,“ adding that this would “continue to put a strain on the thoroughly tense relationship between manufacturers of steel drums and their customers. The situation of supply shortages on the flat steel market described in January [had] developed into a threatening shortage in recent weeks. Steel users in all market segments [faced] insufficient availability of steel supplies from steel mills and service centers. There [were] shortfalls and delays in current contracts. Covering replacement volumes and additional quantities [was] becoming increasingly difficult because there [were] hardly any stocks left. The spot market [was] empty and there [was] a lack of sufficient supplies from the mills. This situation [affected] the entire flat steel market, whereby the situation [was] particularly critical for hot-dip galvanized sheet according to existing reports. And so, the manufacturers of steel drums [were] not isolated from this unexpected and unique situation. Relevant steel market experts described that the supply shortage in the European steel market would continue at least until the end of this year (2021).“ According to SEFA, “the most important cause for this situation [was] the asynchronous development of supply and demand. The production of the EU plants [was] still not sufficient to cover the customers’ needs, while expansion of production by ThyssenKrupp Steel or Salzgitter AG in Germany, and by Arcelor Mittal in Italy encountered technical or legal obstacles.” German steel market analyst Andreas Schneider summed up the consequences of the shortage: “Steel is no longer sold in many cases, but allocated – In the case of new inquiries, delivery times in the 4th quarter are already being quoted, binding delivery dates are scarce. Even nine months after the start of the upswing in demand, EU producers are not managing to meet their customers’ demand.” US steel prices up over 200% and expected to remain high into 2022 According to comments published in the US press in late July, US steel prices traded between USD 500 and USD 800 in March 2020, prior to the Covid-19 pandemic. During the initial months of the pandemic shutdowns, many steel mills in the United States halted production under the assumption that the world was heading into a deep recession. However, the decline in demand for iron ore and steel did not last long at all. The change in spending habits and patterns of consumption due to the pandemic has caused a far greater demand than expected in the steel industry. This, combined with a very limited supply due to the closing of many steel mills, led to the price of steel skyrocketing, with the futures price of hot-rolled steel up over 200% trading at USD 1,800 as of July 2021. .../... Tomato News 2021 Yearbook Page 23

COSTS OF PRODUCTION At this time, prices were expected to remain high due to the massive outstripping of demand vs supply, and the time it will take for supply to catch up and replenish depleted steel stockpiles. For their part, Chinese steel prices have traded up consistently since April 2020, with a short decline period around December 2020. Around mid-May (2021), all forms of Chinese steel prices peaked, as demand continued to soar in the country. Steel demand in China has increased in the past few months, with the government implementing its economic recovery plan, which includes infrastructure spending. At the end of May, Chinese prices were “regulated” by government measures intended to curb excessive speculation. After Chinese prices corrected, they continued to go up but at a slower rate, closing May at CNY 6,060 /mT (ca USD 949) from CNY 6,100 /mT (USD 949) at the end of April. Since then, they continued to increase the first week of June but remained below the CNY 6,250 /mT (USD 978) level. According to professional sources, traders in Europe appear to be buying large volumes out of China at the moment, regardless of China’s cancellation of its export tax rebate, as steel from there is cheaper than what is rolled in Europe. 2021: sharp increase in the cost of raw materials Processing tomatoes 10% more expensive than during three previous seasons Information relating to reference prices gathered before the season by the WPTC show that 2021 prices for raw tomatoes have risen significantly from their 2020 level. This increase in the value of raw materials follows a 2020 campaign that was unsatisfactory in terms of volumes and therefore of income for growers, in a general context of rising prices and, in some cases, of a scarcity of inputs of all kinds – energy, plant-health-products, water, transport, packaging, etc. The overview of prices for processing tomatoes relates to about 72% of the processing intentions expected for the 2021 harvest, and it includes information stemming from all the main processing and supply regions. The combination of the volumes involved (27.6 million mT out of the 38.5 million mT forecast as of 3 September) and the prices concluded in the EU (Italy, Spain, Portugal, Greece and France), in California, in China, as well as in Hungary and Turkey, results in a weighted global value of approximately USD* 93 /mT, which is a 7% increase compared to the indicative value recorded last year (USD 87.1 /mT). This progression is even clearer when compared to the previous harvests, as the 2021 price level (valued 3 September) is 11% higher than the average reference price for the period running 2018-2020 (USD 84 /mT). .../... Tomato News 2021 Yearbook Page 24

COSTS OF PRODUCTION Among the raw materials absorbed by global exports of tomato paste, Chinese processing tomatoes remained the cheapest in 2021 (at approximately USD 72 /mT). According to local sources: “the price of raw tomato in China is RMB 450-480 /mT, which is RMB 30 /mT higher (almost 7%, 4.6 USD) than in 2020. According to the US dollar exchange rate (as of 15 March 2021), it is EUR 60 /mT or USD 71.5 /mT. The prices in the three regions are the same.“ As for California, the reference price for processing tomatoes there (excluding late-season incentives and other specific modalities) has been stated this year at approximately USD 84.5 /short ton, which is just above USD 93 /mT, a 5 to 6% increase compared to the price of 2020. The generalized increase has similarly affected the levels of prices paid for tomatoes as raw material in Europe also. Growth reached 5% in Northern Italy, exceeding 12% in Spain and 9% in Portugal, with the result that average values in Europe (approximately EUR 83.5 /mT) have risen in 2021 by 7% compared to what they were in 2020 and by 10% compared to the average of the three previous seasons (2018-2020). So the indicative reference price for processing tomatoes in Europe (expressed in USD per tonne) remains the highest throughout the world’s main processing regions. .../... Tomato News 2021 Yearbook Page 25

COSTS OF PRODUCTION In conclusion, it is important to note that the increase in the price of tomatoes in 2021 has occurred in a general context of increased costs for production and processing. To quote the comments of an Italian processor before the season: “the pandemic has affected the global economy by reducing the GDP by more than 4% in 2020, slowing down and in some cases interrupting entire production sectors. The reduction of the economic cycle has led to an increase of all the commodities like iron, steel, copper, as well as wood, plastic and paper. Lack of flexibility in production capacity, sudden and huge requests from China and USA, sharp increases of freight rates in the area of international logistics, and speculative phenomena have been the main causes of these price increases.“ According to the same source, between March 2020 and March 2021, prices increased for plastics by 120%, steel by 60%, wood by 130%, crude oil by 46%, energy (in general) by 12 to 15%, and carton-card by 10%. These increasing costs (as well as the increase in the price of tomatoes as a raw material) have been aggravated by the price of labor, environmental taxes, each tonne of CO2 emitted (in the European system for emissions rights), etc. The same observation was made also for other food industry sectors in Europe, and it was similar to what could be said of growers and processors in California. As for the 2021 harvest season, the worldwide tomato processing industry actually is facing a completely unprecedented situation, positioned as it is between a marked and unexpected imbalance between production and demand and a spectacular increase in costs. * (1 USD ó 0.847466 Euro, average value July 1st – September 1st, 2021) Some additional information: Guido Aufdemkamp, ABMA at Tomato News (June 8, 2021) Indicators for the price of paper pulp, aluminum, polymers – price indexes (aluminum, ldPE hdPE, PP, PET, Paper Pulp). Sources: rfi.fr, usinenouvelle.com, statista.com, lessor42.fr, lemoniteur.fr, sefa.be, metalbulletin.com, mining-technology.com, agmetalminer.com, Financial Times, TomatoNews, WPTC, OANDA For further details and connected events go to www.tomatonews.com. Several presentations during the Online Conference organized by Tomato News on 8 June 2021 also dealt with these topics, and notably “The global tomato processing industry in 2021: Balanced supply amid rising costs”. Tomato News 2021 Yearbook Page 26

PRODUCTION 2021 SEASON: A VERY RESTRAINED SEASON The preliminary results of the 2021 season as communicated by industry operators during a WPTC meeting on 21 October 2021 establish the world production estimate at 38.7 million metric tonnes (mT), only 300,000 tonnes or 0.9% higher than the 2020 final production. While production increased by 1.5 million tonnes (8%) in the AMITOM region and particularly in the European Union (+16%), it reduced in the other WPTC members in the northern hemisphere and notably in California (-6%) and in China (-17%) while increasing in the Southern Hemisphere (+23%) were production is also forecast to further increase in 2022. AMITOM countries Portugal The official productions figures are not available as we go to press but final production is estimated at 1.596 million tonnes with an average field yield estimated at 103 t/ha. Altogether it was a very nice crop with good quality and colour, with an average brix of 5.1. There were no major issues with the weather throughout the season. Spain There were uncertainties at the start of the season as price negotiations were tough after a bad campaign in 2020, and farmers received only a 40% water allocation in Andalusia. In the end, it is estimated that the price of raw materials increased by +11% on average and more surfaces than expected were planted. During the season, the weather was nice in July and August, producing high yields and good quality and colour. Later, there were several episodes of heavy rains in September in all regions. This led to a complex end of campaign with many days when farmers were not able to harvest, and some tomato left on the fields. In the north, there were severe blight attacks after the rains which caused considerable damages, and an estimated 15% of losses. The last factories are now closing in the north. It is currently estimated that 3.185 million tonnes of tomatoes were processed in Spain from a planted surface of 34,100 hectares with an average yield of 93 t/ha. France With a final volume processed of 164,000 tonnes, the initial forecast of 185,000 tonnes was not reached (90% of the target). The reduction was notable for the organic crop for which production which only reached 80% of the target (20,978 tonnes when 26,000 tonnes were expected). Most of the losses were due to bad weather in the south-west region, where the weather was often cool and very wet, with a total rainfall of 500 mm during the season. .../... Tomato News 2021 Yearbook Page 27

PRODUCTION The south-east had a good season although processing was also totally stopped during a full week in September due to rain. Planted surfaces were raised to 2,559 hectares this year from 2,217 ha in 2020, and organic surfaces from 392 to 566 hectares. Italy The final 2021 production is higher than earlier estimates at 6.05 million tonnes from 71,217 hectares. The increase is largely due to a very good season in the north, where production reached 3.09 million tonnes, more than the volumes of the contracts, which never happened before. The weather was good, despite some localised hailstorms. Average farm yield from the 38,621 hectares planted was just over 80 t/ha. Average brix was 4.88. The second half of the crop was particularly good. In the south, after a bad 2020 crop, this was also a very good season and probably the best in last ten years years with an average of 90.87 t/ha from 32,596 hectares, for a final production of 2.96 million tonnes. The only issues were in Caserta early in the season with low temperatures. In Puglia, there was enough water in the Occhito reservoir, so the region achieved very good yield per hectare. Fruit quality was very good, with high brix and good factory yields. Hungary The harvest finished at the end of September with a final volume processed of 115,000 tonnes, higher than the initial estimate of 100,000 tonnes. The good end of season enabled to recover the losses on the early crop. Fruit quality was good with an average brix of 5, the highest in the last few years, and the average farm yield 79 t/ha from the 1,450 hectares planted. Farmer’s profitability is low and other crops (notably corn) are more attractive for growers who also face rapidly raising input material costs so further raw tomato price increases are expected for 2022. Greece Although the 2021 season started well, final production is 9 % lower than the initial forecast of 460,000 tonnes to only 420,000 tonnes. Some transplants were lost in April due to frost. June and July were the hottest in the last ten years with very high night temperatures, and two heatwaves in July and August with temperatures of up to 45°C resulted in loss of flowers, softening of fruits and loss of yield. Turkey It was a long season. In the south, the very hot weather caused some loss of tonnage at the start of the season and some tomatoes left in the fields due to a lack of transport and manpower at the end of the season. In the north, some tomatoes were sold on the fresh market to be exported (to Syria notable) and spot prices for the 40% of the crop which was not contracted increased. The harvest however finished in October with a higher final volume than initially expected, at an estimated at 2.2 million tonnes. .../... Tomato News 2021 Yearbook Page 28



PRODUCTION Ukraine The season was challenging from the start because of a cold and wet spring. The harvest started late in August and although it started reasonably well with good quality fruits, the field yield was lower than expected so the forecast was reduced from 850,000 tonnes to 820,000 tonnes. Processing is not yet finished at the time of writing and hopefully should reach 800,000 tonnes. Quality is average. Russia The final production was 523,000 tonnes versus an initial forecast of 550,000 tonnes. The average field yield was 90 t/ha and quality was good with an average brix over 4.5. Egypt Tomato processing takes place over nearly 300 days of the year, and it is expected that 440,000 tonnes will be harvested in total in 2021. Quality and yields have been good during the summer season which finished in September. The winter season with tomatoes from the Nile area started at the middle of October. Tunisia A total surface of 17,000 hectares was planted with tomatoes in 2021, up from 16,500 hectares in 2020, but farm yields dropped 15% due to a heatwave from 10 June to end August to an average of 63 t/ha (75 t/ha in 2020), so total production was 1.1 million tonnes. Some tomatoes were as usual sold on the fresh market and the volume processed in 25 factories with total daily capacity of 36,000 tonnes of fresh tomatoes was 938,000 tonnes, of which 926,000 tonnes to produce double concentrate and 12,000 tonnes to produce canned tomatoes. The total volume of double concentrate produced was 138,000 tonnes, nearly all directly into cans, and 7,000 tonnes of canned tomatoes. .../... Tomato News 2021 Yearbook Page 30

PRODUCTION Other countries California 2021 will be remembered for Weather, Disease and Water! The original January estimate was for 12.1 million short tons (10.97 million metric tonnes), but it was reduced to 11.6 million short tons (10.523 million metric tonnes) in May mainly due to issues with water. In the south most growers had to rely exclusively on well water. The surface was expected to be 240,000 acres in January but only 229,000 acres were planted. A very warm spring, some disease pressure, and hot weather in the summer further reduced the size of the crop and the August estimate was 11.1 million tonnes (10.07 million metric tonnes). The harvest will trickle until first part of November for a couple of processors but a total of only 10.7 million short tons (9.65 million metric tonnes) is now expected. The average yield was 46.73 tons per acre (116.8 t/ha), better up north than in the centre and in the south were 60% of tonnage are normally grown. For 2022, water is going to be the big issue. Some rain is currently forecast in the north but biblical levels are needed this winter to fill the reservoirs which are currently very low. One of the issues is also the shift of one million acre from row to permanent crops between 2010 and 2020: these fields are given priority for water over annual crops like tomatoes. Canada The forecast was 541,000 short tons (450,000 metric tonnes), an increase from 2020. The season sounded promising but ended disappointing. It started well but excess rain and heat led to significant losses in some areas due to flooding and diseases, so the total crop ended at 85% of target at 478,000 short tons (433,000 metric tonnes), close to 2020 final production. Yields were down from historical levels, but fruit quality was generally good, in terms of solids and colour. A higher contract volume is expected in 2022. China In 2021, the volume processed was 4.8 million metric tonnes, the same as the forecast. The number of factories was basically the same as that for the 2020 crop, but raw materials has been reduced by 1 million tonnes and because of the competition for raw materials, the price of tomatoes increased by 10 to 15%. Due to the low temperatures, the transplanting was delayed by 5-7 days. The weather during the harvest period was basically normal. There was no obvious processing peak during the crop, and the whole crop is relatively stable. Due to climate reasons and harvest of many immature fruits as processors were competing to get tomatoes, the quality of products is slightly lower than that in 2020, especially colour and Bostwick. The distribution of the production by region was as follows: •2.73 million tonnes in Northern Xinjiang •1.09 million tonnes in Southern Xinjiang •50,000 tonnes in Gansu •0.93 million tonnes in Inner Mongolia The supply will be tight this year and a number of factors should lead to a price increase next year (cost of freight, of packaging, of energy, Covid, exchange rate, etc.). Japan A total volume of 30,000 tonnes was processed in 2021, lower than the initial estimate due to heavy rain during the first half of August. USA Midwest Shortly after pack started it became clear part of the Midwest would harvest more tomatoes than forecasted. The 2021 fresh pack will be remembered as one of the highest tonnage packs in recent years as growers were able to harvest record yields along with high fruit quality most of pack. This continued to develop over pack to surpass the pre-pack tonnage projection to an estimated 462,000 metric tonnes (510,000 short tons). This tonnage increase was good to overcome the acreage lost to hurricane IDA. Processors worked togetherto help growers bring in their whole crop to account for the areas that were short. This also meant there was a search for additional warehouse space, cans, bottles, and of course lids. Temperatures remained favourable throughout pack, although there were challenging periods, and notably rain and a great amount of mud towards the end of pack. .../... Tomato News 2021 Yearbook Page 31

PRODUCTION Growers overcame these conditions to harvest their final loads of tomatoes, at times hooking tractors to each other and even pushing trailers with large tractors to manoeuvre through muddy conditions. Southern hemisphere Argentina In 2021, there was a record production of 594,572 tonnes from 7,336 hectares. Yields are increasing in Argentina notably in San Juan an average of 110 t/ha was achieved this year from 2,250 hectares. These final country crop results indicated the highest volume attained in all the argentine history of processing tomatoes. This number is attributed to a fair climate in combination to a better application of field technologies advised and generated from the Asociacion Tomate 2000. For the 2022 season, 7,500 hectares should be planted, up from 7,331 hectares in 2021, an increase of 5 to 7 % mainly in the San Juan region. Total production should reach 600,000 tonnes, which would be a record, but not enough to cover the domestic consumption estimated at 750,000 tonnes, so 20,000 to 22,000 tonnes of paste will still need to be imported, mainly from Chile. About 40% of the surfaces have been planted to date, with a small delay due to some frosts affecting nurseries a couple of weeks ago. La Nina continues and a dry summer is expected, and shortage of water are possible mainly in San Juan although most of the surfaces are drip irrigated. .../... Tomato News 2021 Yearbook Page 32



PRODUCTION Australia The Australian 2021 processing tomato season finished in the third week of April 2021 and saw a total delivery of approximately 230,000 payable metric tonnes to processors, of which 2,731 tonnes was organic. Apart from experiencing wind damage in November 2020 and a generalised heavy rain event in March 2021, the season was considered to be relatively ideal for growing, with only mild foliar disease pressure and absence of extreme heat events. Gross yields varied from 50 t/ha on the aforementioned wind affected areas to approximately 200 t/ha on the some of the highest yielding blocks. Brix levels were ideally high early, however dipped toward the end of the season, especially after the March rain event. The forecast for 2022 is 2,488 hectares and 267,974 metric tonnes, including 3,000 tonnes of organic tomatoes and 280 tonnes of cherry tomatoes. There is good water availability for the season. About 1000 hectares have been planted to date. Rain has delayed planting for up to ten days for some growers but also assisted the establishment of transplants on some lighter soils. Growers preparing for potentially higher disease pressure. Brazil The surfaces planted for the 2021 season were increased from 14,505 hectares in 2020 to 16,030 hectares as some factories were reactivated to supply the domestic market as imports of tomato pulp were more expensive due to the devaluation of the real compared to the US dollar. While production was expected at up to 1.57 million tonnes after a good start of the season due to good early yields of 95 t/ha on average, the preliminary early figure estimate 2021 production at 1.35 million tonnes. It is expected that the surfaces planted in 2022 will increase further to over 17,000 hectares. Chile The final volume of production for 2021 was 1,174,000 metric tonnes from 12,230 hectares. Despite rain at the beginning of the harvest in January and February, which affected the final yield and reduced slightly the total volume, it was a very good year. Estimated average field yield was about 95 t/ha at country level, when it could have been above 100 t/ha. The main issue for the 2022 season remains the water availability, and some regions are under an emergency drought order. The surface equipped for drip irrigation has increased again and now represents about 90% of the tomato fields. The surfaces planted will be reduced by about 10% and the current forecast is 1.05 million metric tonnes. Peru Final 2021 production was 120,000 tonnes from 900 hectares, and a similar volume is expected in 2022. .../... Tomato News 2021 Yearbook Page 34

PRODUCTION South Africa In 2021, a total of only 125,000 tonnes fresh tomatoes was processed with a volume of 40,000 tonnes, as forecast during the summer season (January to April) in Western Cape and 85,000 tonnes during the winter season (May to September) in Limpopo, 15% below forecast as the Musina area had tomato damage due to excessive rainfall and white fly infestation. One processor did not contract pre-season and bought all tomatoes on the spot market. A total of 140,000 tonnes is expected in 2022 (with 40,000 tonnes for the summer season and 100,000 tonnes for the winter season). .../... Tomato News 2021 Yearbook Page 35

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PRODUCTION Tomato News 2021 Yearbook Page 39

TRADE ARCHITECTURE OF WORLD TRADE IN 2020/2021 Between the rock of the pandemic and the hard place of stocks Only four times during the past seven years, and probably going much further back in the history of our industry, have global monthly exports of tomato paste exceeded the 300,000-tonne threshold. These four exceptional months all occurred in 2020, the first two in March and April (328,000 mT and 318,000 mT respectively), and the last two in October and November (306,000 mT and 308,000 mT). After two years of relatively modest production on a global scale in 2018 and 2019, these spectacular episodes linked to the Covid pandemic made 2020 an historic year, but above all largely contributed to almost completely drying up global stocks of tomato paste. The dynamics that appeared during the health crisis, compounded by an increasingly tense situation in terms of product availability, have seemingly raised demand for the 2019/2020 marketing year to a record level without being able to fully satisfy it. Just a few weeks off the end of the 2021 campaign, while the pandemic is now in the process of being controlled if not resolved, the dynamic effects on consumption and trade are gradually fading, but without necessarily returning to a “pre-Covid” situation (see Tomato News conference in June 2021). As the monthly reports published on the TomatoNews website have shown in recent months, the high monthly levels of global “export” operations recorded at the end of 2020 and at the start of 2021 are now giving way to a return to levels that are closer to those of previous years. So by the end of the marketing year ending in June 2021, the final result was quite logically lower than that of 2019/2020, yet at the same time in clear progression compared to the three previous years (2017/2018, 2018/2019 and 2019/2020). Regarding trade of the world’s TOP12 paste exporting countries as a whole (pending figures to complete the final overall performance of 2020/2021), the quantities exported (HS codes 200290) amounted during the last marketing year to just over 3.12 million metric tonnes (mT) of finished products (all product categories and packs combined). During the previous marketing year (2019/2020), this same group of twelve leading countries in the sector exported 3.21 million tonnes of finished products, representing a decrease in results for 2020/2021 at around 3% (just over 92,000 mT). On the other hand, the result of the last marketing year recorded an increase of 1% (a little more than 29,000 mT) compared to the average performance of the three previous years, thus consolidating the “progression”, thanks to the upward trend observed over the past two years. .../... Tomato News 2021 Yearbook Page 40

TRADE With nearly 1.8 million mT exported between July 2020 and June 2021, the total result for marketing year 2020/2021 for exports of canned tomatoes (HS codes 200210) from the twelve main countries involved in the sector is also down (-88,000 mT of finished products approximately) compared to the figure recorded for the previous year, and a very slight increase compared to the average performance over the three previous years (2017/2018, 2018/2019 and 2019/2020). Like for pastes, these “mixed” results are more the consequence of the strong growth recorded in 2019/2020 than of an actual “slowdown” in overall activity, even though the year also saw some serious disruptions in maritime traffic linked to a shortage of containers, slowdowns due to the congestion of several major international ports and, locally, to some labor conflicts, in the very restrictive context of the Covid pandemic (see related articles at the end of this report). Despite these limiting factors, the quantities of tomato sauces and ketchup (HS codes 210320) absorbed by exports from the twelve main exporting countries recorded substantial increases of some 35,000 mT of finished products compared to the 2019/2020 marketing year (+3%) and close on 75,000 mT (almost 7%) compared to the average level of trade over the three previous years. Sauces and ketchup exports have been less impacted by the difficulties of maritime traffic because they are less dependent on intercontinental trade. They have benefited from a spectacular increase in demand due to the boom in home catering due to the current situation: the quantities exchanged at the level of the TOP12 over the last marketing year amounted to around 1.18 million mT of finished products. Subject to modifications when all the final export figures are known for all declaring countries, the volumes traded in 2020/2021 on a global scale are estimated at around 3.33 million mT of pastes (all qualities and conditionings combined, HS codes 200290), 1.82 million mT of canned tomatoes (HS codes 200210) and 1.53 million mT of sauces and ketchup (HS codes 210320). .../... Tomato News 2021 Yearbook Page 41

TRADE As it stands, the quantities of tomato as a raw material absorbed by export operations around the world during the last marketing year ending 1 July 2021 can be estimated at some 28 million tonnes. However approximate it may be, this estimate bears witness to a slight decrease (-470,000 mT of raw tomato equivalent, i.e. -1.5%) compared to the quantities exported during the 2019/2020 marketing year, but also a significant increase (+700,000 mT, i.e. +2.5%) compared to the average export activity of the three previous years. In the difficult context created by the Covid pandemic and impacted by the multiple imbalances and upheavals accompanying recovery on a global scale, it is probably appropriate to consider the 2020/2021 marketing year as a period of adjustment occurring after a year 2019/2020, which was indeed exceptional, but the result of which was artificially “inflated” by the economic situation and which will no doubt not be repeated. Tomato pastes: performance clearly impacted by a general readjustment Even if the slowdown remains measured, at just a few tens of thousands of tonnes and less than 3% compared to the result for marketing year 20219/2020, the 2020/2021 report features several significant changes and some notable down-scaled performances, illustrating the sudden and temporary variations that have appeared in the wake of the Covid pandemic. As already indicated in the latest monthly reports regarding exports, published on the TomatoNews website, Chilean foreign trade recorded a significant drop between the last two years: the decline has amounted to about 48,000 mT of finished products, or nearly a quarter of the exceptional result recorded in 2019/2020, placing Chilean trade levels for 2020/2021 (149,000 mT) in line with those of previous years (see tables and histograms in the additional information at the end of this article). The outlets that have been most affected by the decline are the Far East (Thailand), Central America (responsible for a large part of the increase recorded the previous year) (Mexico and Costa Rica), Eurasia (Turkey, Russia), as well as the Dutch and Italian markets. A similar decrease (around 45,000 mT) affected Spanish foreign sales, for a result almost 10% lower than the previous year; the slowdowns recorded in Europe (EU and outside the EU), the Middle East and Mediterranean Africa partially rectify the spectacular increase that took place in 2019/2020, but the momentum in this instance also consolidates the performances achieved in recent years by placing the result of the past marketing year in the exact continuation of the three previous years, at just over 416,000 mT exported. .../... Tomato News 2021 Yearbook Page 42

TRADE The foreign operations of the Italian and Turkish sectors were also subject to declines last year, of some 16,000 mT for Italy and 14,000 mT for Turkey. In the case of Italy, whose situation is similar to that of Spain, it is paradoxically the EU markets (Germany, Belgium, the Netherlands) that have shrunk, while the region as a whole has seen its imports increase. Likewise, foreign purchases of the African Mediterranean region, in particular those of Libya, have significantly decreased. This decline in Libyan imports of tomato pastes (known to be extremely variable from one year to the next) was the main cause of the decline in foreign operations of the Turkish industry, and could not compensate for the good performances achieved on the market outlets of Western EU (Italy, Germany, France). In this uncertain context of redefined demand, conversely, a number of countries have improved their annual performance, though not necessarily permanently. First and foremost is Greece, whose foreign sales of tomato paste (40,000 mT in 2020/2021) increased by almost a third compared to the previous year. This increase was mainly due to demand from European outlets (Austria, Belgium, Poland, United Kingdom), in a context only affected by two very slight slowdowns (Japan and Australia), the total of which does not even reach 90 mT. It is also worth mentioning US results, the importance of which is less linked to the tonnage involved (313,000 mT) than to the respite that it signals in the uninterrupted decline of paste exports from the world’s largest processor over the past six years. Although weakened by mediocre results in the Middle East, the Far East and Eurasia, the US momentum clearly increased over 2020/2021 thanks to the progression recorded on the markets of the Western EU (Italy), Mediterranean Africa (Libya) and especially Central America (Mexico, Costa Rica, Dominican Republic, Honduras, Panama). Among the usual players of the world’s TOP12 paste processing and exporting countries, several recorded only minimal variations in their foreign operations in 2020/2021. Among these are China (-4,800 mT, a drop of less than one half of a percentage point), Portugal (+3,000 mT, a 1% increase), Ukraine (+2,935 mT, nearly a 5% increase) and Poland (-300 mT, -2%). Two countries, however, recorded strong variations in their annual performance: Peru, whose exports jumped by more than 3,300 mT and nearly 21%, and France, whose foreign sales fell sharply, with a 2020/2021 result that is more than 30% lower (-4,600 mT) than in 2019/2020 (see tables and histograms in the additional information at the end of this article). .../... Tomato News 2021 Yearbook Page 43

TRADE Canned tomatoes: the leaders are in trouble Although the leading positions of Italy and Spain are rarely contested in the canned tomatoes sector, these countries similarly concentrate the supply of world markets as well as the annual vagaries of the sector. It is a fact that by disrupting the patterns and rhythms of consumption and supply, the Covid pandemic has curbed – at least temporarily – a growth dynamic that had been in place for many years. Steady development had brought the quantities traded worldwide in 2019/2020 to around 1.91 million tonnes, at the end of a year marked by an exceptional increase of nearly 117,000 mT (+7%!) compared to the previous marketing year. Over 2020/2021, the volumes traded logically lost a significant proportion of the growth achieved, for a result over the year as a whole that is 4.5% lower than the previous one. However, a significant part of the gain recorded during the pandemic was maintained last year, so global exports of canned tomatoes (peeled, unpeeled, whole or chopped) were recorded in 2020/2021 in line with the average levels of the three previous marketing years (2017/2018 to 2019/2020). Paradoxically, the two leaders of the sector did not take advantage of this improvement: by dropping by almost 97,000 mT over the last marketing year, Italian operations declined not only compared to the previous year (-6%) but also in comparison with the three previous years (-2%). The situation is similar for Spanish operations which, on a much smaller scale, “gave up” over the same periods 5% and 1% of their results, respectively. There is no indication at this time how this situation will develop. For the time being, this last marketing year has resulted in an accumulated decrease of around 23,000 mT from the two leading countries, compared to the average of the three previous years (-1.5%), while at the same time recording an increase of more than 26,000 mT (12%) in the overall activity of the other TOP10 countries for the canned tomatoes sector (see tables and histograms in the additional information at the end of this article). In this rather unprecedented context, good performances were recorded for Greece and Turkey. The gains are all the more remarkable in that they were mainly achieved despite the general trend, at the expense of the leading countries, and on European markets (Western EU and non-EU Europe) that had declined quite markedly over the previous marketing year. Although these changes did not fundamentally upset the overall balance in the distribution of market shares, 2020/2021 was nevertheless marked by a notable increase in the participation of the “other countries” of the TOP10, in the wake of canned tomato exports from Greece (+18%) and Turkey (+37%). .../... Tomato News 2021 Yearbook Page 44



TRADE Tomato sauces and ketchup: the recovery is mainly driven by the “smaller” players Contrary to what has been observed in other sectors (pastes and canned tomatoes), the dynamics driving global trade in the tomato sauces and ketchup sector in 2020/2021 revived a sector that had been “dormant” for five or six years. After an already significant increase in world trade in 2019/2020 (+7%), the “boost” effect of the pandemic on consumption was reflected in 2020/2021, not by a readjustment similar to those recorded for pastes or canned tomatoes, but by a second consecutive year of solid growth in trade (+3%). While the average annual growth rate (CAGR) of exports from the TOP14 countries remained below 0.1% between 2014/2015 and 2018/2019, the increase over the last two years was measured in tens of thousands of tonnes (close to 46,000 mT) and the 2020/2021 export balance was nearly 90,000 mT (+8%) higher than the average for the period running (2017/2018-2019/2020). But once again, not all industry leaders contributed equally to this new momentum. This is evidenced by the clear contrasts between the performances of the three countries that supplied practically half of the worldwide market for several years: in 2020/2021, on a global market that nonetheless recorded heavy demand, US foreign sales (299,000 mT) fell slightly (-1%) under the influence of the continuous erosion that has been affecting exports of sauces to Canada since the trade peaks reached in 2015/2016. US foreign performances also slackened with regard to destinations such as the Emirates, Saudi Arabia, the United Kingdom and a few other countries, to the extent that these decreases in the annual results could not be compensated by the significant increases recorded in sales to Mexico, the Dominican Republic, and Guatemala. The contrast is striking with the performance of the world’s #2 operator in the sector – the Netherlands, whose exports of sauces increased by 16,000 mT (+7%) compared to the previous year, for a result of 256,000 mT in 2020/2021. The Dutch progression is more than consistent with the increase in global movements (+4%) compared to the 2019/2020 marketing year. It relied on the good results obtained on the markets of Turkey, Russia, Saudi Arabia, and above all France, Spain and Denmark, to name only the main ones. The Italian performance over the past marketing year (180,000 mT) remained surprisingly close to the previous one (178,000 mT), with a very slight increase mainly driven by the French and Polish markets. The end result is a composite of recorded progressions (Greece, Denmark, Netherlands, Portugal, etc.) and slowdowns (Israel, Sweden, Australia, Ireland, Austria, etc.), most of which did not exceed a few hundred tonnes except in the case of Belgium (-1,000 mT) and Germany (-3,100 mT). This observation of stability also applies to Spain, whose exports (95,000 mT) practically mirrored those of the previous year, in a group marked only by a few changes, the most important of which was recorded for sales in Italy (-1,600 mT), Portugal (-1,100 mT) and the United Kingdom (-1,000 mT) as well as the Netherlands (+900 mT) and Morocco (+2,600 mT). .../... Tomato News 2021 Yearbook Page 46

TRADE The originality of the past marketing year for the sauces and ketchup category stems from the notable development of supply flows provided by the countries that are considered as “secondary” players in the sector. In this regard, special mention should be made of Poland, Belgium, Portugal, China, Egypt, Costa Rica, and Russia. Increases in foreign sales of all these countries only gave way to the Netherlands, with increases in tonnages that ranged from 2,000 mT (China) to more than 8,000 mT (Costa Rica) and growth ratios almost all above 10%. During the marketing year 2020/2021, most regional markets recorded increases in their supplies. Three regions were exceptions to the general dynamic, among which mention should be made of North American markets (the decline of which affected US and Mexican exports), as well as those of the Australia-New Zealand region and Southern Africa. All other importing regions saw an increase in demand to varying degrees. The most important ones were recorded in countries of Central America (Guatemala, Mexico, Belize) (+18,000 mT), which benefited US and Costa Rican products. The increase in British purchases (non-EC Europe, +8,600 mT), although it did little to help Italian or Dutch foreign trade, largely contributed to improving the Belgian and Portuguese performances. The Western EU market, by far the largest in the world in terms of imports (454,000 mT), also recorded significant growth, the effects of which were mainly beneficial to Dutch foreign sales (French, Danish and Spanish markets) as well as Polish and Belgian ones. On this same market, however, Spanish products have lost ground (Italian, Portuguese and German markets), as have Portuguese products (German, Belgian and Italian markets) (see tables and histograms in the additional information at the end of this article). The positioning in terms of market shares of the various countries involved in the global supply of sauces and ketchup reflects the progress or decline recorded in 2020/2021. Unsurprisingly, the rather disappointing performance of US exports led to a decline in the influence of the world’s n°1 operator, currently only holding around 20% of the volumes traded during the past marketing year. Closer to US results, the Netherlands last year maintained their share of global activity with around 17% of the worldwide market and a return to the average position of the three previous years. A little further on, Italian products almost confirmed the substantial gain in ranking achieved over the previous marketing year, with around 12% of total global volumes. Beyond this first half of the worldwide supplies provided by the three leading countries, competition opposes in a relatively narrow range Spain (around 6% of the total but slightly down last year), Germany (5% of the total, and also slightly down) and Poland (also 5%, but up over the 2020/2021 marketing year). Next come Belgian (4%) and Portuguese (3%) products, which increased last year, followed by products from China, Egypt, Costa Rica, Russia, etc. The sauces market is sufficiently open for the remaining 80 countries (more than ten of which exported between 10,000 mT and 20,000 mT in 2020/2021) to still hold 18% of the worldwide market. .../... Tomato News 2021 Yearbook Page 47

TRADE 2020/2021 exports: Spain has consolidated its third place in the world In conclusion, an approximate assessment of the quantities of raw material absorbed by exports of the main primary processing countries as well as by countries that export for remanufacturing underlines the importance of European operators in the global tomato industry. Six of them (Italy, Spain, Portugal, Greece, Poland and France) appear in the TOP20 list of countries which, in one or other of the sectors considered (pastes, canned tomatoes, sauces), are heavily involved in worldwide supply flows. The 2020/2021 marketing year did not bring any noticeable change in the global ranking of these countries, which is largely dominated by Italy and China. It should be noted, however, that Spanish foreign trade has confirmed its rank in third place worldwide, gradually gaining this position at the expense of the US over the last four years. The decrease in US foreign trade and the concomitant rise in Spanish exports over the period running 2017/2018-2019/2020 led to a reversal of positions, with Spain confirming its rank in 2020/2021 with the estimated equivalent of 3.1 million mT of raw tomato exported in the form of industrially processed products, while the quantities mobilized by US players amounted to around 2.95 million mT. For information, the estimated volumes of raw tomato absorbed by exports from these two countries in 2017/2018 amounted to around 2.75 million mT for Spain and around 3.32 million mT for the United States. Finally, the 2020/2021 marketing year confirmed the rise of European exports of tomato products, driven by the decisive developments in foreign operations over the last five or six years, in particular in Italy, Spain and Portugal, while the quantities mobilized over the same period by the other “TOP20” processing countries have rather suffered a gradual erosion. .../... Tomato News 2021 Yearbook Page 48

TRADE Some additional information Evolution of sector components (pastes, canned tomatoes, sauces) of total exports (expressed in estimates of raw material equivalent) of the TOP12 exporting countries. 2020/2021 export result of the twelve main processing countries exporting tomato paste over the marketing year 2020/2021, for the 16 destination regions. .../... Tomato News 2021 Yearbook Page 49

TRADE Evolution of the overall market shares of pastes of the twelve main exporting countries in the sector. 2020/2021 export results of the ten main processing countries exporting canned tomatoes over the marketing year 2020/2021, for the 16 destination regions. Evolution of the global canned tomatoes market shares of the five main exporting countries in the sector. .../... Tomato News 2021 Yearbook Page 50