“For the next seven months, Texas is a great place to source your vegetables, fruit, onions and melons,” Dante Galeazzi, president and CEO of the Texas International Produce Association, told The Packer. “Combine Texas-grown with produce crossing from Mexico, you’ve got the whole shopping list in one little area.”
Winter vegetable season is well underway, and South Texas is ramping up for slightly lighter volume early in the season. This soft start is a result of hot and dry summer months that burdened an already tight water supply in Texas, stretching reservoirs thin and reducing soil moisture across the state, Galeazzi said.
“These hot temperatures can be challenging as we start the season, but we’re already starting to see the temperatures cool off a little,” he said. “We’re very fortunate in a sense because things are growing quickly because of those dry, warm temperatures; We’re just looking for a balance.”
Because of the water shortage and dry conditions, Texas acreage is down across commodities this year.
“Buyers can expect smaller supplies,” Galeazzi said. “But the quality is going to be superior, because if you’ve got less acres to look over, you’re going to give more attention to the product you do have.”
Jeff Brechler, head of sales and marketing at Little Bear Produce, said that despite planning water conservation and rationing measures, the Edinburg, Texas-based produce grower and shipper still ran out of water in South Texas irrigation districts.
“We had to scramble around and move plantings, which we were able to do. We started getting some rains [late summer] and they fell in the right area. We’re thankful for what we got, but we didn’t get enough to really get us over the hump,” Brechler said. “All it did was put us back to the level we were prior to conserving and rationing.”
Despite irrigation shortages and dry weather, a deluge of rain in August and September damaged the first fall cabbage crops at Little Bear Produce. Normal supplies of cabbage are expected as early as the second week of December, along with leafy greens, which were unaffected by the rains and maintained a steady supply.
“It’s been a bit of a rocky road,” Brechler said. “Hopefully, this pattern will change, and we’ll get into a bit wetter El Niño pattern. But that’s the life of the farmer, right?”
Once Texas growers recover crops from the summer heat, the focus turns to February. Two years after what has been dubbed the St. Valentine’s Day produce massacre — when many growers completely lost entire crops to an unexpected, extreme freeze — growers are still skittish.
“February seems to be the witching hour,” Brechler said. “Two years in a row we’ve had extreme weather in February. In 2021, it was the Valentine’s Day freeze. And last year we even had some cold damage that came in. As long as we can get through February, I think we’ll be OK.”
Inflation and labor pressures
At TIPA, Galeazzi has witnessed overhead expenses increase for growers this August by an average of about 22% to 23%. Meanwhile, grocery store prices for Texas produce have only seen about an 9% increase, he said.
This results in a 12% to 13% gap that produce growers must bridge, even if expenses and prices remain at this level, which is unlikely. According to Galeazzi, this estimate doesn’t account for rising diesel, fertilizer or labor costs. While the math indicates narrowing profits for growers staying competitive, for better or worse, these challenges are not unique to Texas, he said.
Beyond rising expenses, as costs associated with labor rise, labor shortages continue to worsen for growers throughout the Lone Star State.
“Texas was one of the last states to feel the pinch on labor shortages, and this is likely because we are a border state” Galeazzi said. “But we have felt that pinch.”
The situation has become more and more dire every year, he added.
Little Bear Produce is experiencing the labor shortage firsthand, according to Brechler. The challenge, he said, is finding staffing across the company; The shortage is not limited to one specific type of job.
“It’s just finding labor, period,” said Brechler. “Other folks are dealing with the same issues that we are with labor and, you know, everyone seems to be short-staffed. It’s just a tough period right now.
“The folks on the production floor have been doing a really good job of putting out fires,” he added. “But I think what leads to someone’s success rate has been just the culture of the company. You know, [Little Bear Produce] is a family-owned company … there’s a sense of pride.”
