Mexico Launches Tomato Price Stabilization Plan

The Mexican government signed the National Agreement for the Organization of Tomato Production, Supply, Marketing, and Fair Pricing. The initiative aims to ensure that tomato production first meets domestic demand before being allocated to export markets, while establishing a coordinated framework designed to reduce prices.

President Claudia Sheinbaum emphasized that the agreement is voluntary and was signed by producers from 18 states, who committed to working together to lower tomato prices in Mexico. The initiative will support more than 12,000 growers who collectively harvest at least 3.7Mt of tomatoes, more than 50% of which is destined for export, across an area exceeding 50,000ha.

The program is built around four strategic pillars aimed at reducing costs for both producers and consumers: decreasing the role of intermediaries, prioritizing domestic supply, lowering input costs, and providing training for farmers. The Ministry of Agriculture and Rural Development (SADER) will implement a digital planning platform designed to align production capacity with domestic demand and export commitments. Through the platform, participants will coordinate actions and implement planting notifications to improve national production planning.

In addition, small- and medium-scale producers will be able to connect directly with buyers and gain access to essential inputs, including seeds, seedlings, fertilizers, and crop protection products, as well as equipment, field technical assistance, and guidance on sanitary and food safety management.

Wholesalers, wholesale food markets, and supermarket chains also joined the agreement in an effort to improve coordination among all participants in the supply chain and prevent imbalances that could trigger abrupt price increases. “When planting takes place, it should already be determined who the buyer will be—not an intermediary, but directly the wholesale market. For that to happen, conditions must exist to transport the tomatoes,” President Sheinbaum said.

The agreement follows a sharp surge in tomato prices. The product recorded annual inflation above 100% for two and a half consecutive months. During the first half of May alone, annual inflation reached 118.5%, while in the first half of March it peaked at 152%, its highest level since February 2006, according to data from INEGI. Producers reported that tomatoes were selling for as much as MX$80/kg (US$4.6/kg) in some markets, compared with farmgate prices of MX$25 to MX$30/kg. The gap has been attributed to intermediaries, reduced planting, supply shortages, and stronger external demand.

The Federal Consumer Protection Agency (PROFECO) will be responsible for monitoring price behavior at the retail level. The agency will conduct ongoing oversight of suppliers and distributors to ensure that the benefits of the agreement are passed on to Mexican households.

Columba Jazmín López, Minister, SADER, highlighted the collaborative effort to strengthen the supply of tomatoes, a crop native to Mexico with significant agrobiodiversity. She said that, with the participation of all stakeholders, the agreement will help stabilize prices following severe weather events in the United States, hailstorms in Mexican production regions, and the impact of crop pests.

In Florida, two severe freezes associated with Winter Storm Ezra in December 2025 and Winter Storm Gianna in January 2026 destroyed entire harvests, particularly Roma tomato crops, according to Fresh Fruit Portal and South Florida Reporter. In Mexico, heavy rainfall, persistent fog, and high temperatures encouraged the spread of diseases such as Tomato Brown Rugose Fruit Virus (ToBRFV) and slowed plant development, according to South Florida Reporter and Markon.

Transportation was also affected. The conflict in Iran drove up diesel prices, increasing the cost of transporting tomatoes in refrigerated trucks, explained David Branch of the Wells Fargo Agri-Food Institute, a research organization specializing in agrifood markets. In Mexico, the average diesel price rose from approximately MX$26.4/L in February to MX$28.4/L in March, an increase of nearly 7.5% in just four weeks.

In the United States, tomato prices rose 40% over the past year, according to the Consumer Price Index. The national average reached US$2.69/lb in April, a record high for the product. The main driver behind the increase was the 17% antidumping duty imposed on Mexican tomato imports, which account for roughly 90% of all imported tomatoes in the US market, amplifying the immediate impact on prices.

The agreement comes amid growing trade tensions ahead of the 2026 review of the USMCA. Mexican agricultural organizations have warned that the antidumping duty imposed by the United States on fresh Mexican tomatoes has disrupted a highly integrated North American supply chain. According to Mexico’s National Agricultural Council (CNA), the measure has already contributed to a nearly 12% decline in Mexican tomato exports to the United States, while raising prices for American consumers, who depend on Mexico for roughly 90% of imported tomatoes.

Industry representatives have expressed concern that the tomato dispute could become a precedent for additional trade restrictions on other fresh produce, including berries, cucumbers, and peppers. They have also cautioned against proposals to introduce seasonality provisions into the USMCA, which would allow domestic producers to seek protections during harvest periods and could further restrict market access for Mexican growers.