Tomato can make or lose a lot of money. Is it profitable and how do I lower the risk?
4 Answers
Tomato can be very profitable in a good price window but is one of the riskiest vegetables because of price volatility and perishability. In a high price spell a single acre can earn a lot, but in a crash you may not recover picking and transport cost. To reduce risk, stagger plantings so all your fruit does not hit one glut, use disease resistant firm hybrids to cut spray costs and losses, stake and grade well for premium rates, and watch Agmarknet trends to sell into better markets. Drip and mulch lower water and weed costs. Avoid planting big just because last season paid well, since that is when everyone expands and prices crash. Where possible, link to processing or institutional buyers for some stability.
One bumper price season covered two bad ones for me. The trick is to keep costs low, stagger planting, and never bet the whole farm on tomato in one go.
Drip and mulch cut my water, weed and labour cost a lot, which matters most in the crash years when the rate is low. Lower cost per crate is what kept me above water when prices were poor.
Resistant hybrids saved me on spray cost and rejection. My old susceptible variety needed constant spraying and still lost fruit, so switching to a firm resistant one improved both my cost and the rate I got.