Lance Jungmeyer, president of the Nogales-based Fresh Produce Association of the Americas, said the agreement’s consequences were acceptable in Nogales for the first year, when neither Florida nor Mexico had an overproduction problem.
“If you see buyers start pushing prices down under the $7 per box range, that basically means only Florida can be in the market unless the buyer wants to pay the minimum for (Mexico) tomatoes, which is above $8,” Jungmeyer said.
“If they suddenly could not sell their tomatoes here in Nogales, you’d have about a third of economic activity in this town put on hold. That would be a hard pill to swallow.”
“We’ve reached the floor on a lot of the varieties on an intermittent basis,” Mike Aiton, director of marketing for Coachella, Calif.-based Prime Time International, said Feb. 5.
“So it seems like it’s keeping some product in Mexico. Tomato prices are hovering now around or barely above the minimum.”