PHOENIX (AZFamily) — Arizona restaurants and produce companies are getting slammed by skyrocketing tomato prices that have hit record highs.
“I’ve never seen it in 25 years in the history of the produce business,” said Tony Wolkow, owner of Scottsdale Specialty, a local produce company.
Tomato prices have spiked 50% within the last year, reaching the highest price per pound in nearly a decade, according to the Bureau of Labor Statistics.
Wolkow said the cost increases have been outrageous, especially for tomatoes.
“Everything across the board has just gone up. We got hit pretty hard this year in the produce business,” Wolkow said.
He says that Roma tomatoes used to be $15 a case. They’re now $60 to $70 a case.
Multiple factors drive shortage
Wolkow said a lot of his tomatoes come from Mexico and Florida. Both locations have been hit hard this year.
“There was a freeze down in Florida two months ago and then the transition from winter crop to spring crop, that’s what affected the shortage and the prices of tomatoes jumping,” he said.
Tariffs on imports from Mexico, now at 17%, are adding to costs. Rising diesel prices, driven by energy shocks from the war in Iran, are increasing transportation costs.
The spike is squeezing local restaurants and small businesses that rely on produce from companies like Scottsdale Specialty.
“It’s hard for some of the small businesses we deal with,” Wolkow said.
Fruit and vegetable prices are up about 4%. Overall grocery store prices have risen 2.9% over the last year, with increases hitting produce, meats, and basic grocery items.
“We’re just going to have to bite the bullet and keep going. Everybody has to eat, so we’re going to have to pay these prices,” Wolkow said.
He said a way to avoid some of the rising costs is to buy local.
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