Filed under: Mexico
Mi Espousa (my wife) is an excellent cook thus I don’t do much grocery shopping; she has total control of that department. I do make the coffee in the morning and help with Vitamix preparations. I bought the Vitamix about a year and a half ago when she was out of town. I got caught up in one of those in store demonstrations.
One of my Vitamix dishes is salsa. I have written the recipe here in the Blog somewhere. The acquisition of the simple ingredients are often my project at the grocery store; something to keep me busy while Anita does the real shopping. Being the Roma tomato-purchasing agent I am very aware of the cost of tomatoes, and little else.
Yesterday we were in Walmart to grab some final “for the road” items. There I noticed that in just days Roma tomatoes have doubled in price to $2.66 lb. I was shocked. “Why have tomatoes doubled in price?” I asked to any one within shouting distance. Mind you Walmart’s Roma’s are usually substantially less than the better grocery stores.
Last night I did a Google search on tomato prices. Much to my dismay I read an article in the Los Angeles times that answered my question. I include it here as my Blog goes on and on in time whereas the Times article will go away – it is complete with full credits:
Tomato Prices Put a Squeeze on Mexico
The recent jump has prompted the central bank to revise its 2006 inflation forecast.
By Marla Dickerson, Times Staff Writer
October 4, 2006
MEXICO CITY — If it were a B-movie instead of an economic threat, it might be called the Attack of the Killer Tomatoes.
But a recent Mexican government report isn’t joking about the latest menace to the economy. Damaging storms have sent tomato prices ballooning like the mutant veggies in the 1978 cult classic. The rise is crimping shoppers’ pocketbooks, stoking inflation fears and upending economic forecasts.
The Argentines have their beef, the Irish their potatoes and the Koreans their spicy cabbage, kimchi. But no dietary staple can gyrate a nation’s consumer price index like Mexico’s tomatoes.
Government economists are blaming the jitomate (pronounced EE-toe-mah-tay), as the red tomato is called here, for much of the 0.6% rise in the consumer price index in the first half of September. That’s double the increase in the first two weeks of August and much higher than analysts’ forecasts.
“I can’t recall another country where one food item seems to be so important” in determining inflation, said Gray Newman, head of Latin America research at Morgan Stanley in New York.
Shopping for produce at the sprawling Central de Abastos market in the southeastern part of the capital this week, homemaker Virginia Meneses was stunned by tomato prices that have tripled to as much as $1 a pound for some varieties. Small stores are charging even more.
A buck looks downright cheap compared with the nearly $4 a pound that some California consumers are paying now for premium tomatoes. Still, it’s a hefty sum in Mexico, where many people earn the minimum wage of about $4.30 a day.
A meal without some tomatoes mixed into a soup, salsa or salad wouldn’t pass muster with her family, said Meneses, a 39-year-old mother of three. She reluctantly bought $9 worth, forking over nearly a third of her weekly produce budget.
“How awful!” she said. “I’ll just have to buy less fruit.”
Meneses isn’t the only one making adjustments. The red scare has so rattled Mexico’s central bank that it now projects that 2006 inflation could soar as high as 4%, up substantially from last year’s 3.3%, the lowest level in 30 years.
That’s making inflation hawks at the institution worry that hard-won gains might be undone by a garden vegetable. And it is likely to complicate their decision as to what to do about interest rates in the weeks ahead.
Mexico’s economy is growing at a healthy clip for the first time in years. Lower interest rates would help sustain an expansion that could be weakened by a slowdown in the U.S. economy. But a rate cut could add to inflation pressures.
Although some analysts said the jitomate-led jump in consumer prices is temporary and that Mexico’s core inflation remains in check, they said it was a reminder that a diminutive vegetable has an outsize effect on consumer prices here.
The Aztecs were cultivating tomatoes in what is now Mexico when the Spanish conquerors arrived in the early 16th century. The seeds were whisked to Europe. In a short time, vines produced a vegetable that became an essential part of French, Spanish and Italian cuisine.
In Mexico, tomatoes are never far from the table. They are served over eggs in huevos rancheros, simmered in the rich broth of tortilla soup and chopped up in the ubiquitous spicy condiment known as pico de gallo.
The nation produced about 2.2 million tons last year, about 902,000 tons of which were exported, mostly to the United States, according to Mexico’s ministry of agriculture. But domestic consumption remains strong.
“If we have three meals a day we have tomatoes three times a day,” said Mexican-born Alfredo Coutino, senior economist at Moody’s Economy.com in West Chester, Pa. He said the inflation link “is uniquely Mexican.”
How a salad ingredient could send jitters through one of Latin America’s largest economies is one of the odder convergences of culture and the dismal science.
Similar to citizens of other developing countries, Mexicans spend a larger share of their incomes on food than people in wealthier nations. Food items account for nearly one-quarter of the fixed basket of consumer goods and services that the Mexican government tracks to keep tabs on inflation, according to analyst Newman. So that explains why staples like tomatoes carry more weight in Mexico than they do in a country like the United States, he said.
Mexico’s multiple climate zones allow people here to eat the solanaceous vegetable year-round. But like all fresh produce, tomatoes are more subject to price changes than foods such as flour and dried beans that can be stored longer. Tomatoes can be particularly vulnerable because most Mexican farmers don’t irrigate their crops, relying on whatever rains come their way.
In mid-September, Hurricane Lane slammed the western state of Sinaloa, Mexico’s No. 1 tomato-producing state, damaging thousands of acres. Earlier that month, Hurricane John pummeled Baja California Sur, another prime growing spot. In previous years, drought has been the culprit rather than wind and rain.
Thus big price swings in jitomates are commonplace. Newman said the current run-up was the fourth in the last two years alone. The analyst calculates that prices are up an average of 131% compared with July levels but could normalize within a few months.
But that’s small comfort to Maria Gamboa, 62.
With tomato prices skyrocketing, the Mexico City resident has had to cut her consumption in half, scrimping on the ingredient in every dish she makes.
“It doesn’t taste the same,” she said. “But a little is better than nothing.”
marla.dickerson@latimes.com
Times staff writer Cecilia Sanchez contributed to this report.
OK so I am bummed since tomatoes are a staple at the Calypso household. I have continually grumbled about the price of the red fruit. When last in Mexico tomatoes were going for between 8 and 22 pesos per kilo (2.2 lb). That is about 37 to 90 cents a pound. At the same time best Walmart price was $1.33 pound and now double that – ugh! I will have a further report in Mexico.
Last night Robert Redford’s “The Milagro Beanfield War” (1988) was on the tube. What a great movie! If you haven’t seen it, rent it or borrow it from your library. This is excellent film about a small Latino New Mexican community. Talk about your Mexican romance and heart being throughout the fiber of Latino’s – wow! My friend Dave Grusin received an Academy Award for the soundtrack too.
OK enough chit chattering. Today is the final push to get packed up and the Earthship prepared for a lonely winter. If all goes to plan we will be leaving tomorrow morning. This will most likely be the last entry for 4 or 5 days. A rest for your weary eyes from my long Blogs – really I know you will miss me. Back soon – Stay Tuned!
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Drive safely. Look forward to chatting IN Mexico.
Comment by Billie 10.14.06 @ 7:30 amYes the tomato thing is horrible. Tomatoes are a BIG staple in our diet here as they are in everyones. We have tomato at every meal almost in some form or other.
The hurricane damage just south of us in Sinaloa, had the prices at their highest 39.90 (pesos) a kilo, they have gone down somewhat, I am not sure exactly what the price is right now. I have been doing the ostrich with the head in the sand thing. Roy did break down and buy 2 the other day, and we have been using them sparingly.
Have a great/safe trip, and watch out for the mordida in Tampico. LOL
Brenda
Travel safely my friend. I’ll soon be posting new panoramas from my trip out there while you’re on the road. So, i hope you will have your dish up and running soon. We will be waiting anxiously to hear about your safe arrival and more of your wonderful stories.
I felt a bit bad about the generation, baby boomer thing. I wasn’t upset but some may have interpreted the tone as such. I guess i’ll leave the soapbox issues to you.
Funny, some of your philosophy about helping people in “burning houses” must have rubbed off on me but i lack your finesse with words and will keep to nature and photographs.
With regards to mother nature and jitomates, I could never figure out why something that can be grown so easily, even hydroponically, would cost so much.
I have seen the beans growing in New Mexico and the Milagro Bean Field War. There are still some communities like that tucked away in New Mexico. Chama is one and there is another one the other side of the mountains near Taos. In San Luis they have a real life drama between the community and a fancy logging developer who won’t let them hunt anymore in the mountains anymore. As you know, that is serious business since their families have been in that little village for about four hundred years hunting in those mountains. Someone actually took a shot at him – hitting his foot under a blanket that was mistaken, some think, for his head.
Life goes on here near the Windy City. We got a few snow flurries the other day. Libby is here with Ann and me this weekend. They are making jewelry. We went apple picking today! Good fun, can’t wait for the pie! Please give our best to Anita and also your friends south of the border. You will be missed.
Comment by john paul 10.14.06 @ 3:10 pmBest solution to high tomatoe prices -”grow your own”. By the way your in the news in the SF Chronicle. http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/10/15/ING93LLOUG1.DTL
Have a good trip…Dale
Comment by D. R. Faust 10.15.06 @ 8:39 amHi Dale -
We are here in Mexico as of last night. Roma Tomatoes are 90 cents a kilo while they are $3.66 a pound in Colorado (or more) Hardly worth growing at 40 cents a pound for some great ones
The article: Well I guess we are in there some where – although fortunately they do not mention Veracruz – we are the secret territory ![]()
John Calypso
In order to protect our food supply, we must address vulnerability gaps in our current system at any point along the distribution chain up to the consumer that would allow accidental contamination of fresh produce.
I am well aware of what they are and can provide solutions to help prevent this ongoing problem.
I spent fifteen years as an Executive Vice President for a major terminal business on the East Coast. My primary responsibility was purchasing millions of dollars in California vegetables a year, including Mexico during the winter.
I know how this works.
I notified the CDC in late 2003 that green onions were the likely source of the hepatitis A outbreak and that they were from Mexico, several days before the FDA banned the importation of green onions into the United States.
Over the years I have followed the recent contamination of tomatoes and more recently spinach. My knowledge is based on experience and facts.
Specific aspects of the industry are severely outdated.
The Federal Government must update regulation of the industry to properly empower the USDA.
Nobody really seems to want to do anything to correct the current situation. A series of articles would be a good start.
Comment by Tony Clooney 11.07.06 @ 10:27 pmLeave a comment
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