California Denies Canada's Dumping Claims

June 29, 2001

Claims by Canadian greenhouse growers that U.S. field tomatoes are being dumped at low prices in Canada are not true, according to the California Tomato Commission which represents field tomato growers in California. "The claims by the Canadian Tomato Trade Alliance, representing B.C. Hothouse and several Ontario growers, are a surprise, given the different markets and uses for field and greenhouse tomatoes", said Commission President Ed Beckman.

The Canadian announcement "only seeks to draw attention away from the fact that the United States government has found merit to the allegations made by U.S. greenhouse tomato growers, that below-cost sales of Canadian greenhouse tomatoes are responsible for the bankruptcies found through the U.S. greenhouse tomato industry," Beckman added.

Under Canadian anti-dumping law, dumping occurs when local producers are injured by foreign exporters who sell like goods into Canada at less than prices in their home market or below cost, he said. "At issue is not the volume of tomatoes, but the price the tomatoes are sold for. Last year, California exported nearly five million cartons of tomatoes to Canada between June and November - at the highest prices in over five years. Just last week, Agriculture Canada reported that California field tomatoes were being offered at a premium over the price for B.C. Hothouse greenhouse tomatoes in western Canada."

The greenhouse and field tomato industries "are two separate, distinct industries, with different pricing structures," said Beckman. "We do not compete with greenhouse tomatoes in Canada, and do not sell tomatoes into Canada at a price lower than is offered to our customers in the United States."

California fresh tomatoes are exported to Canada primarily for the use by restaurants and fast food chains. California tomatoes are preferred by these companies because of the texture and firmness that's required for slicing, chopping, and quartering. Greenhouse tomatoes are too soft for most of the food service industry and are sold almost exclusively through supermarkets in Canada. In the United States, better than 50% of all fresh field tomatoes produced are used in the food service industry.

"It's unfortunate that just one segment of the Canadian greenhouse industry has a desire to escalate a trade issue far beyond the boundaries of their own industry - the greenhouse industry - to include field producers," said Beckman. "In the end, it will cost all growers dollars that should be returned to the farm, not invested in legal challenges. Should Revenue Canada decide to go forward with an investigation, we very much look forward to fully cooperating with the Canadian government. We believe that their investigation will provide conclusive proof that the California industry has not dumped tomatoes on the Canadian market."