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Tomato prices spike amid cold temps

by JOE SMITH / KGW

NWCN.com

Posted on March 9, 2010 at 11:22 AM

Updated Tuesday, Mar 9 at 11:22 AM

Freezing temperatures in Florida and the earthquake in Chile are being felt across this country with higher produce costs. And it could get worse before it gets better.

It started in Florida. That state is the largest supplier of winter tomatoes. Freezing temperatures in January caused the loss of 70 percent of the crop to the cold.

"People need to understand there's going to be short supply on some of these items for some time," said Joe Gilliam, President of the Northwest Grocery Association.

It will also mean higher prices at the check out. Also adding to a spike in prices and lower supplies, the recent earthquake in Chile.

Transportation is the issue. It's too difficult getting produce, including blueberries and grapes,out of the country to market.
 

The pinch is already being felt at the Sheridan Fruit Company. It supplies produce to 250 restaurants in Portland. The biggest jump right now is coming from the price of tomatoes.
 

"In the past week it's gone up $12 a case for us," said Tom Barwick, Vice President at Sheridan Fruit Company.

Barwick says he can't pass on the entire increase for fear of loosing customers.
 

"Typical price this time of year is around $20-$25 dollars and now it's about 50 going to 60 possibly," said Barwick.
 

For area restaurants the impact is enormous. At Oba in the Pearl District the restaurant relies heavily on tomatoes for it's south of the border menu.

It means Executive Chef Steve Neuman may have make adjustments to what it serves.

"I'm definitely worried about this especially in a concept like ours that has a lot of tomato based driven products," said Neuman. But, it's not just tomatoes. "I ordered a bag of white onions this last week and it was $93 for 50 pounds, normally it's about $25."

And there is also concern now over citrus prices. Oba squeezes a lot of margaritas.
 

For farmers, produce distributors, grocery stores, restaurants and consumers all paying a higher price for that trip to bountiful.


 

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