The ongoing drought in Spain is causing significant difficulties for the country's horticultural industry. Farmers are relying on emergency irrigation to keep crops alive, with water supplies strictly rationed. Despite the challenges, tomato plantings in Spain continue.
The tomato crop is particularly vulnerable to drought, requiring irrigation for its development and survival throughout the season. According to market sources, major producing regions like Extremadura have increased their planting area to 21,000 hectares, up by 3,000 hectares from last year, while other regions such as Andalusia have also increased their hectarage.
The current Mintec price for average wholesale tomatoes in Spain [Mintec Code: 7A43] is already relatively high, at €1,200/mt on May 3rd, 2023, up 33% year-on-year, despite the price drop of 28% since February 2023. One market source noted that the drought is a worry for production, and its impact on prices will become clearer around August and September, later in the harvest.