California is one of the world's largest producers of tomatoes, and with current drought conditions in the state, the USA is facing significant shortages.
The industry that usually grows around a quarter of the world's tomatoes has faced wildfires, drying water reservoirs and labour shortages. The cost to grow and harvest one acre of tomatoes has more than doubled in the last ten years, currently sitting at US$4,800.
Because of this, the price of tomato sauce across the USA is up 17 percent and ketchup up 23 percent. Liquidator stores selling bottles of spaghetti sauce for around US$5 (NZ$7.9) are being flocked with customers hoping the grab a reasonable price.
The California crop levels hit peak production in 2015, producing 14.4 million tons of tomatoes. This season's harvest is expected to be below the 11.7 million ton estimate. The season's yield price is US$105 per ton, an all-time high that is likely not enough to overcome the industry's challenges.
Heinz Ketchup currently sells for around $6.75 in the USA. The same Heinz bottle in NZ is now about $5, and Wattie's sits at about $4.50.
