1. Directions/Trends in Fresh Market Tomatoes in N. America John Lindbo Solanum Breeding Program Manager HM-Clause; Davis, CA

2. N American Fresh Market Tomato Seed N America Market Size: ~57M Euro (~77M USD) – Half: Determinant – Half: Indeterminant Factors affecting Market Value in future: Seed Demand: – Overall acreage decreasing – Increased productivity trend. – Politics and Policies: US Govt reached deal with Mexico re tomato trade. Agreement will raise prices at which MX tomatoes can be sold in US; Will make domestic production more cost-competitive. This may decrease MX acreage for export due to new anti-dumping suspension agreement.? Pricing: – Likely inflation-only or slight increase for new traits. Market Value…likely to be ~flat: – Price increases offset by sales reduction.

3. FM TOM Production Trends: US* US: reduced acreage – Both CA & FL decreased 8-10% last 3 years. US: Production (tons) – FL: 20% drop last 3 years. – CA: ~ flat last 3 years Good weather winter 2011/spring 2012 Pressure from low cost tomatoes from MX Prices have been low. * USDA Reports (June 2012)

4. Production Trends:MX Trending to more protected culture. Protected culture in Baja and Sinaloa year round tomato production yields and quality increasing Trend of semi-/indeterminant varieties being replacing determinants. Rounds being replaced by Saladette types. MX prod now about 75% saladette; 25% round Since 2003: US Imports of Round from MX (-43%) – Import of saladette from MX (+58%)

5. Production Trends: Methods Protected culture tomatoes now dominate retail industry. Vine-ripe taking away from mature green. Mature green still supported by food service/restaurants. Large growth in protected culture in MX – Increased yields and quality – In US Market: ~60-70% of protected culture tomatoes from MX Year round protected culture supply reducing short- supply/high price periods for growers.

6. Consumer Trends In grocery stores: Consumers avoid store interior: Shop perimeter. Catch their attention with innovation, convenience & diversification of your products. Tomatoes on the vine Vine ripe small snacking tomatoes Better quality (color & taste) “Locally sourced” labelling appearing in markets. US per capita consumption of FM Tom stable. Articles in popular press re: tomato taste (University studies from UC Davis, FLA, Tasti-lee story).  More tomato niche market potential?  Improved taste a likely area of differentiation in future.