Introduction
Mexico wastes approximately 926,000 tonnes of tomatoes annually, nearly half of which would be consumed domestically if not exported. A new 20.91% tariff on Mexican tomatoes by the U.S., set for July 14, has raised concerns about increasing food waste in both countries.
The Tomato Export Market
Mexico exports about half of its tomato production to the U.S., with 1.793 million tonnes out of 3.6 million tonnes produced in 2023 going to the U.S. market. This strong export dependency has persisted, with 2024 production slightly increasing to 3.7 million tonnes while maintaining the heavy reliance on exports.
Stark Contrast with Waste
Despite exporting nearly half of its tomato production, Mexico wastes 926,000 tonnes annually—almost double the amount that would be consumed domestically without exports.
Cheaf’s Concerns
Cheaf, a Mexican startup combating food waste through an app connecting businesses with consumers to sell surplus in “surprise packages,” warns that the tariff could worsen food waste problems in both Mexico and the U.S.
“It’s highly likely that this measure, along with its economic repercussions, will translate to tons of unutilized product for human consumption,” says Braulio Valenzuela, Cheaf Mexico’s Country Manager.
Domestic Market Rigidity
The issue is further complicated by the inflexibility of the domestic market. Despite production growth, national tomato consumption has remained virtually stagnant for over a decade. In 2023, consumption was 1.828 million tonnes—almost unchanged from 2022 and only slightly higher than 2014 levels.
“This is the scale of food waste. We have a consumption rate that hasn’t changed in years and a market that could become saturated without exporting this volume,” warns Valenzuela.
Impact on the U.S. Market
The risk of waste isn’t exclusive to Mexico. The U.S., the primary destination for Mexican tomatoes, could also face consequences.
The tariff would increase consumer prices amidst rising food inflation, affecting inventory management. According to the U.S. Environmental Protection Agency (EPA), the U.S. wastes around 35% of its food nationally.
Valenzuela emphasizes that U.S. food waste already accounts for over 90% of North America’s total food loss, and increased prices would only add pressure to a system needing urgent solutions.
Cheaf’s Recommendations
Beyond the tariff situation, Cheaf highlights the need to modernize and strengthen food management in Mexico.
“We need more transparent mechanisms for commercializing surpluses and food rescue networks in good condition. We must combine initiatives to safeguard agro-food production and ensure access to quality food for millions, even amidst any tariff barriers affecting consumption,” concludes Valenzuela.
Key Questions and Answers
- What is the current situation regarding tomato waste in Mexico? Mexico wastes around 926,000 tonnes of tomatoes annually, nearly half of its production. This waste occurs despite exporting about half of its tomato production to the U.S.
- How does the proposed tariff affect tomato exports? The 20.91% tariff on Mexican tomatoes by the U.S. could reduce export competitiveness, potentially leading to additional 178,000 tonnes of unutilized tomatoes in the Mexican market.
- What are the implications for tomato consumption in Mexico? Despite production growth, national tomato consumption remains stagnant. The proposed tariff could exacerbate this issue by increasing unutilized tomatoes in the domestic market.
- How does the tariff impact the U.S. market? The tariff could increase consumer prices for tomatoes in the U.S., affecting inventory management and potentially worsening existing food waste issues.
- What solutions does Cheaf propose? Cheaf advocates for modernizing food management in Mexico, implementing transparent mechanisms for commercializing surpluses, and strengthening food rescue networks to ensure quality food access.
