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CEA Alliance Expresses Disappointment in Termination of Tomato Suspension Agreement

Written by Indoor Ag-Con on . Posted in Blog.

Washington, D.C. – The Controlled Environment Agriculture Alliance (CEA Alliance) is deeply disappointed that the U.S. Department of Commerce chose yesterday to proceed with the termination of the Tomato Suspension Agreement with Mexico, despite multiple U.S. agriculture and business stakeholders urging renegotiation of the agreement.

“Unfortunately, the Department failed to take into account the voice of our members in the U.S. greenhouse tomato industry, which now grows more than one-third of all U.S. fresh tomatoes,” said CEA Alliance Executive Director Tom Stenzel. “When the original dumping order was issued in 1996, the greenhouse sector was just beginning to grow, offering consumers better-tasting vine-ripe tomatoes compared with field tomatoes that are picked green.”

Today, greenhouse tomatoes dominate the retail supermarket sector, offering tomatoes still on the vine and a wide range of specialty tomatoes with great flavors and multiple colors. The U.S. Department of Agriculture reports that production of U.S.-grown greenhouse tomatoes increased 69% from 2010 to 2023, compared with a 49% decline in field-grown tomatoes. “U.S. consumers have voted with their dollars,” Stenzel said.

“Because most high-value greenhouse growers farm in Canada, the U.S. and Mexico, the termination of this agreement will cause significant damage to these growers, serving as a financial barrier to new investment in U.S. greenhouses,” he said. Unfortunately, this became a political issue that was not resolved on the facts of what would be best for American businesses and consumers.”

The CEA Alliance will continue to stress the critical importance of the U.S. greenhouse tomato industry. “We remain hopeful that open-field growers will reengage in discussions that could serve all parties much more effectively than this order,” he said.

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The Controlled Environment Agriculture Alliance (CEA Alliance) is a membership trade association representing and serving vertical farms and greenhouse producers growing fruits and vegetables in a highly controlled indoor production environment. Controlled environment growers employ a variety of agricultural production methods and technology to create optimal growing conditions with rigorous environmental controls. Growers utilize innovative technologies such as hydroponics, aeroponics, aquaponics, and soil-based systems to grow a wide variety of fruits and vegetables. For more information, please contact Tom Stenzel, Executive Director, at Tom@CEAAlliance.com.

U.S. Indoor Tomato Growers Support Renegotiation of Suspension Agreement To Maintain Market Stability

Written by Indoor Ag-Con on . Posted in Blog.

With the U.S. Department of Commerce announcement that it intends to withdraw from a tomato trade agreement between the U.S. and Mexico, potentially placing a penalty of more than 17% on all Mexican tomato imports, consumers are likely confused about what to expect in the marketplace.

CEA Alliance members include high-tech greenhouse growers and vertical farms, with increasing investment across the United States. Greenhouse tomatoes are grown throughout the country, with major operations in Ohio, Kentucky, New York, Texas, Michigan, Pennsylvania, Georgia, California, Minnesota, and more. USDA reports that production of U.S. greenhouse-grown tomatoes has increased by almost 70% from 2010 to 2023, while field-grown tomatoes have decreased by 49%. U.S. greenhouse tomato growers now grow more than one-third of all U.S. fresh tomatoes, although their voice as U.S. growers has not been heard in Commerce Department deliberations.

Many of these U.S. growers also grow in Canada and Mexico in order to provide year-round fresh produce for consumers. “U.S. greenhouse tomato growers believe the Commerce Department should renegotiate the suspension agreement to ensure market stability for both U.S. consumers and U.S. greenhouse tomato growers,” said Tom Stenzel, Executive Director of the CEA Alliance. “Without an agreement, consumers are likely to see significant price increases and potential shortages in greenhouse-grown, vine-ripe, and specialty tomatoes that they choose for taste and flavor.”

Penalizing these U.S. growers who also grow in Canada and Mexico is also likely to slow what has been a fast-growing investment in U.S. greenhouses. These companies want to invest more in the U.S. to be closer to consumers, but will have limited opportunity if a suspension agreement is not renegotiated with the Department of Commerce.

“When determining the best course of action for American farmers and consumers, the CEA Alliance believes the Department of Commerce must take into account the views of one-third of America’s tomato farmers – U.S. greenhouse tomato growers – not just field growers,” Stenzel said.

The Controlled Environment Agriculture Alliance (CEA Alliance) is a membership trade association representing and serving vertical farms and greenhouse producers growing fruits and vegetables in a highly controlled indoor production environment. Controlled environment growers employ a variety of agricultural production methods and technology to create optimal growing conditions with rigorous environmental controls. Growers utilize innovative technologies such as hydroponics, aeroponics, aquaponics, and soil-based systems to grow a wide variety of fruits and vegetables. For more information, please contact Tom Stenzel, Executive Director, at Tom@CEAAlliance.com.

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