TOMATOES TASTE OF INFLATION

Oct 12 , 2025.

Tomato prices in Addis Abeba have surged to unprecedented levels, with retail stands charging between 85 Br and 140 Br a kilo, nearly triple last year’s rates. Premium varieties such as Gelila fetch 90 Br a kilo, driven upward by escalating input costs, currency depreciation, and persistent supply chain disruptions. The Birr’s sharp decline against the dollar has more than doubled the cost of imported fertilisers, pesticides, and seeds, most of which originate from the Netherlands and Israel. These increased expenses ripple through every stage of the value chain, squeezing producers and consumers.

For distributors and farmers, the squeeze is relentless. Rental costs for transporting crates have soared, and diesel needed for irrigation now commands 126 Br a litre, with a modest plot consuming as much as 200Ltrs a day. Seed prices have multiplied sixfold, and the outlay for agrochemicals has nearly tripled since last year. Agricultural input catalogue lists over 15 essential items, each with a price tag now measured in thousands, if not tens of thousands, of Birr. Such rises has forced some farmers to abandon tomato cultivation altogether, unable to shoulder costs that have risen from 30,000 Br to over 250,000 Br a quarter-hectare.

Urban households and retailers are not spared, as many families now stretch recipes or substitute ingredients to cope. The outlay for a weekly supply of tomatoes becomes prohibitive. Vendors at city markets report shifting consumer habits, with shoppers moving down the price ladder or opting for alternatives like green chillies. For many, tomatoes, once a kitchen staple, have become an occasional luxury. Restaurant operators, too, find their margins decimated, as the cost of a vital ingredient cannibalises net profit and threatens their viability. Urbanisation, dietary diversification, and the expansion of the hospitality sector have driven up tomato consumption by an estimated three percent annually since 2017, with national demand now ranging from 25,000tns to 30,000tns a year. However, supply has not kept pace. Projections indicate output may drop to over 24,000tns by 2026 without a substantial boost in productivity and supply chain integration. Paradoxically, Ethiopia exported almost 23,000tns of tomatoes in 2023, two-thirds of its national output, mostly to neighbouring Somalia and Djibouti, underlining the country’s increasing regional footprint but intensifying domestic shortages.

PUBLISHED ON Oct 12,2025 [ VOL 26 , NO 1328]