Update on global market conditions – supply continuity and pricing stability

With ongoing unrest in the Middle East and increasing volatility in global fuel and freight markets, many food manufacturers and foodservice businesses are facing uncertainty across their supply chains. Rising freight costs, delays, and reduced availability of imported products are continuing to impact the global food market and ingredient supply.

As a leading Australian tomato supplier and food ingredient manufacturer, Kagome Australia understands how critical supply continuity, pricing stability, and reliable sourcing are for our customers. Our focus remains on supporting businesses across Australia with consistent, locally produced tomato ingredients during changing market conditions.

We would like to reassure our customers that there will be no increase to 2026 tomato contract pricing in relation to fuel levies. While global fuel price increases are affecting freight and logistics costs, Kagome Australia will absorb these impacts for the foreseeable future. This ensures stable pricing for tomato products in Australia, helping our customers plan with confidence and reduce exposure to global market fluctuations.

Kagome Australia operates as a vertically integrated tomato processor in Australia, managing the full journey from locally grown tomatoes to processing at our Echuca facility. This end-to-end supply chain model provides greater visibility, control, and consistency, enabling us to deliver reliable tomato supply, consistent quality, and secure ingredient sourcing for our customers.

With the Australian tomato season now at the midway point, there is still an opportunity for customers to secure additional tomato supply and cover stock. Forward planning can help mitigate potential disruptions caused by international freight challenges or limited availability of imported tomato products.

As an Australian grown and manufactured food ingredient supplier, Kagome Australia remains committed to supporting local industry while helping customers navigate global market uncertainty. Our focus is to provide stable supply, consistent pricing, and long-term supply security for our partners.

If you would like to discuss your current requirements or explore options to further safeguard your supply, please reach out to your account manager or contact our team.

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