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California Tomatoes Gain Ground in Japan's Fast-Food Industry

Strategic Insights

— 2 min read

The California Tomato Commission's perseverance has paid off after eight years of working to export California tomatoes to Japan's fast-food industry. McDonald's, with 2,200 outlets in Japan, launched its Deluxe Burger featuring California tomatoes in June, with 75 metric tons shipped in the first month. The commission believes up to 10 more companies may join the list within a few months, potentially generating a $30 million market boon for farmers in the San Joaquin Valley.

Key Takeaways:

  • The California Tomato Commission has spent eight years working with McDonald's to export California tomatoes to Japan, with the goal of generating a $30 million market boon for farmers in the San Joaquin Valley.
  • McDonald's launched its Deluxe Burger featuring California tomatoes in June, with 75 metric tons shipped in the first month.
  • The commission expects this year's exports to Japan to be four times last year's amount, with 55,000 cartons exported at a market value of $450,000.
  • Promotions at fast-food chains in Japan have been funded in part by the commission, which won more than $1 million in Market Promotion Program funding from the U.S. Department of Agriculture.
  • Japan's government has limits on tomato varieties, with only four varieties grown in California cleared for export, due to concerns over Japanese-grown tomatoes' high sugar content and softer texture.
  • The commission used hard science and patience to overcome Japan's prohibition on fresh tomatoes due to tobacco blue mold, with a two-year study finding that tomatoes are not a host for the disease.
  • A market study by the Harvard Business School concluded that the Japanese market was a good one due to its emerging fast-food industry.

Statistics:

  • 75 metric tons of California tomatoes shipped to Japan in the first month of McDonald's Deluxe Burger launch.
  • 2,200 McDonald's outlets in Japan.
  • 70 Wendy's outlets in Tokyo, the first U.S. company to use California tomatoes in Japan.
  • 40% difference in cost cited by Wendy's as the reason for purchasing California tomatoes.
  • $450,000 market value of 55,000 cartons of California tomatoes exported to Japan in 2022.
  • $1 million in Market Promotion Program funding won by the California Tomato Commission from the U.S. Department of Agriculture.
  • Four tomato varieties cleared for export to Japan, out of 26 varieties cleared for export globally.
  • 1951: Japan's prohibition on fresh tomatoes due to tobacco blue mold.

Sources:

  • Dennis Pollock, The Fresno Bee, "California tomatoes a step closer to Japan's fast-food market"
  • California Tomato Commission press release
  • Harvard Business School market study report (no date provided)
  • U.S. Department of Agriculture Market Promotion Program funding announcement (no date provided)
  • Agricultural Outlook Forum speech by Ed Beckman (no date provided)

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