Water worries linger for Mexican growers
Availability of water in growing regions is one worry for Mexican produce growers and distributors this season, says Lance Jungmeyer, president of the Fresh Produce Association of the Americas.
Jungmeyer said droughts in western Mexican growing areas are a concern, despite rains from Hurricane Otis in October.
The Associated Press reported in October that 75% of Mexico was in a drought at the time, according to data from the country's National Meteorological Service.
“Growers are very worried about the water,” Jungmeyer said. Associations in Sinaloa and Sonora have had discussions about how water will be doled out, whether to grain farmers or growers of produce, he said.
Anecdotally, Jungmeyer said distributors of Mexican produce report slightly reduced sales so far in the 2023-24 season. Aside from conditions on Mexican farms, that report could also reflect the higher trending value of the peso relative to the dollar, he said.
In mid-December last year, growers received 19.85 pesos per dollar. In mid-November 2023, the exchange rate for the peso had strengthened to 17.6 pesos to the dollar.
Strong showing
USDA trade statistics reflect a very good year for total U.S. imports of Mexican fresh vegetables and fruit from October 2022 through September 2023.
U.S. imports of Mexican fresh vegetables through all ports totaled $8.7 billion in 2022-23, up 14% from the previous season.
The per metric ton value of U.S. imports of Mexican fresh vegetables in 2022-23 was $1,270, up 10% from the previous season, according to USDA numbers.
The volume of U.S. imports of Mexican fresh vegetables totaled 6.88 million metric tons in 2022-23, up 3% from the previous season, according to the USDA.
U.S. imports of Mexican fresh or frozen fruits totaled $9.7 billion in 2022-23, up 1% from the previous season. The per metric ton value of U.S. imports of Mexican fresh and frozen fruit was $1,969 for 2022-23, down 7% from the previous season.
The volume of U. S. imports of Mexican fresh or frozen fruit was 4.93 million metric tons in 2022-23, up 9% from the previous season.
Keeping trade open
Relative to seasonal trade issues, Jungmeyer noted that the office of the U.S. trade representative is forming an advisory committee to address seasonal trade issues for U.S. growers.
Jungmeyer said the committee, now being formed, needs to include members who can speak to the economic value to the U.S. of produce imports from Mexico.
“Whatever happens, it has to be balanced," Jungmeyer said.
On another hot-button topic, Jungmeyer said there is no clear idea of when or if the Department of Commerce will terminate the tomato suspension agreement.
If they do terminate the agreement, Jungmeyer predicted a disruptive period for the tomato trade, with prohibitive duties in place that could discourage importers from participating in the market.
Success with SWIPE
The FPAA’s early November Southwest International Produce Expo drew more than 500 attendees, Jungmeyer said.
With 39 buyers attending, the ratio of buyers to exhibitors as nearly 1 to 1, he said. The response from 40-plus exhibitors was unanimously strong, with nearly all exhibitors already signing up again for next year’s event.
Jungmeyer said he heard great reports from exhibitors about networking opportunities and the show’s focus on Mexican imports.
Operating on a Thursday to Saturday schedule this year, FPAA will move the SWIPE show next year to a Wednesday to Friday slot, giving attendees a chance to get home to their families for the weekend.
