LINCOLN PARK, Mich. (WXYZ) — Tomato prices have reached their highest point in eight years, and small businesses that depend on the crop are feeling the squeeze.
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According to the U.S. Bureau of Labor Statistics, a pound of tomatoes costs around $2.26 as of March, an approximately 18% increase from the month prior and the highest price since 2018. Experts point to a Florida deep freeze, wet weather in Mexico, and tariffs as contributing factors.
For Detroit Salsa Company in Lincoln Park, the surge is hitting close to home. The business has operated for 10 years, growing from a middle school project into a brick-and-mortar location with products available in more than 30 metro Detroit stores.
Co-owner Ramon Gomez said the company's origins are rooted in family.
"My son was in middle school, and he had a project where they were starting a business— so he used my grandmother's recipe, came up with the name, and almost the logo, and asked me if we could start a business," Gomez said.
That family recipe now requires between 500 and 700 jars of salsa to be produced each day, with tomatoes at the center of everything they make.
"Our mild salsa is our biggest seller, and without tomatoes we can't sell," Gomez said.
The rising cost of tomatoes has made operations more expensive. Gomez said the price per case has climbed well beyond what he has ever paid before.
"The highest I've ever paid in the past was probably 40s, and I thought that was pretty high. We're paying now up to 70 dollars a case," Gomez said.
Tomatoes are not the only ingredient driving up costs.
"Tomatoes have gone up, onions have gone up, fuel has gone up, and it's all affecting our bottom line," Gomez said.
Detroit Salsa Company raised its prices for the first time this past year by 50 cents. To avoid passing additional costs onto customers, the company has been actively searching for better deals on tomatoes wherever possible.
"Grocery stores, wherever we can get a better price, we're doing it," Gomez said.
Despite the challenges, Gomez said the business is pressing forward.
"It's our family, we're very proud of what we've done here. So we're hustling, we're trying to make it work," Gomez said.
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