A large surplus of Chinese tomato paste is building as demand from key market Italy sharply declines, following concerns over labor practices and product origin. Reports of forced labor in the Xinjiang region, coupled with allegations of misleading labeling, have prompted scrutiny of the European tomato supply chain. The resulting trade disruption is causing both challenges for Chinese exporters and a sense of relief among Italian producers,who have long campaigned against cheaper competition [[4]]. Industry estimates suggest China is currently holding between 600,000 and 700,000 tons of unsold paste [[4]].
A significant drop in Italian demand has left China with a substantial surplus of tomato paste, as exports to one of its key markets have all but ceased in recent months.
The collapse in exports follows allegations of forced labor in the Chinese Xinjiang region and complaints from Italian companies regarding misleading labeling of origin.
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In recent years, production of tomatoes in Xinjiang has been significantly scaled up to meet growing demand from Italy and Western markets. However, with exports now stalled, the region is facing a large buildup of unsold tomato paste.
Tomato News, a trade website tracking the global tomato industry, estimates that China currently holds between 600,000 and 700,000 tons of tomato paste in storage.
“It has obviously become difficult for China to export to Europe,” said Martin Stilwell, president of Tomato News, to Financial Times.
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The situation is being celebrated in Italy, where the national agricultural association has campaigned to protect the domestic tomato industry from competition from the significantly cheaper Chinese product.
“This is an important victory,” Francesco Mutti told the same newspaper.
Mutti tomato products are well-known worldwide, including in Norway. The Mutti CEO is pleased that exports of Chinese tomato paste have declined.
Photo: Miguel Medina (AFP/NTB)
He is the CEO of the well-known tomato company “Mutti.” Mutti added that the Chinese decline is a positive signal that the Italian campaign for Italian tomato products has been effective.
The newspaper reports that the tomato supply chain in Europe has come under scrutiny after some companies in Italy – the world’s largest exporter of finished tomato products – were found to be mixing Chinese tomato paste into products marketed as Italian. This development highlights concerns about transparency and origin labeling within the European food industry.
