Rebeckah Adcock, vice president of U.S. government relations with the International Fresh Produce Association, recently spoke to The Packer about the latest effects of the Trump administration’s tariffs and the potential impact of higher rates for 57 countries.
A large amount of fresh produce moves across North America due to changes in growing seasons and other produce, such as tropicals, may not grow well in the U.S. or in large enough quantities to meet consumer demands, said Adcock, who added that the International Fresh Produce Association has been in contact and working with the administration on the topic of tariffs.
“We have, first of all, listened to what their aims and listed goals and intentions are in talking about tariffs,” she said. “[We’re] trying to figure out a way of helping the administration understand what we expect to happen for U.S. producers, for the U.S. flow and supply chain of fresh fruits and vegetables, as well as globally [and] what we think could happen for the export, the import.”
IFPA has raised concerns about the impact of tariffs on pricing and the subsequent reduction in consumer spending on fresh produce, Adcock said.
“We think that [tariffs] will certainly have some cost and pain for the supply chain, but we also believe, first and foremost, it could have an impact and will have an impact on prices,” she said. “Produce departments are the thing that people love to see when they walk in, and it’s how they judge grocery stores, but it is also one of the first things that people tend to want to cut back on when they see price spikes.”
Especially in a time when healthy eating is at a focus, Adcock said the industry doesn’t want to see anything that could discourage people from eating more fresh produce.
“We definitely don’t want to see anything out there that would discourage people or create some sort of disincentive for people to eat what we know are the healthiest products out there,” she said. “[We’re] having conversations about linking all these consequences together and showing that when you turn the dial in one place it can have some maybe unintended consequences.”
Adcock said an IFPA member that grows 30 to 40 different types of fruits and vegetables in South Texas has shared with the administration that U.S. growers need support to increase production in the U.S., such relieving the regulatory burden and sorting out a stable, legal and reliable labor supply, as well as alleviating water shortages.
“For his purpose, in Texas, there are so many things [in which] the federal government has a substantial role, if not primary jurisdiction, in dealing with that need and has for decades,” she said. “And there are things that can be done. We believe this administration has an interest in those things, but we think if those things were focused on first, that would unleash the prosperity and the competitiveness for domestic production, and that is where you would see the ability to grow and compete on the global market most, most significantly and probably most quickly.
“The situation we’re currently in is that you have a significant amount of U.S. growers who are producing as much as they are able to, given their limiting factors, labor regulations and water, depending on where they are and for what they can’t grow, because they do have a demand,” she continued.
Adcock said that grower in South Texas pulls 20% of produce from Mexico because of the greater demand than what’s grown in the U.S. This grower also sells about 30% of his produce grown to Canada.
“He is truly an American grower that is concerned about being outcompeted overseas,” she said. “But he knows it’s not because he can’t compete with them; it’s because he has a lot of things pushing against him for doing business here in the U.S., and so that is why he feels that inability to extend further.
“That’s a story we’ve made very clear that the administration hopefully understands and sort of gets the picture of what’s at stake — that it’s not just about taxing what comes in and the consequence and maybe helping him build up his production. He’s still not going to be able to build up production,” she continued. “Even if there is more domestic demand — a perceived opportunity to sell more — he’s still possibly likely to lose his clients in Canada, and he still doesn’t have the labor and still has all the other restrictions.”
Adcock said some products, such as mangoes and avocados, have maxed out production in the U.S. and imports are a necessary function of meeting a higher demand.
“Some things have really seen an uptick in popularity, which is wonderful for people’s health outcomes and for the industry,” she said. “But we’re pushing up against the outer edge of the places where those things are viable to be grown. We think with better negotiations — maybe on existing trade agreements there, as well as regulatory reform and a stable label labor market — we think that economically, the U.S. production of fresh fruits and vegetables and floral will expand to the extent that it can.”
Adcock said the U.S. has lost production, and some of that has been the result of the next generation not wanting to continue the family business or a grower facing labor struggles.
“We still have a robust production in this country, and we think that if the conditions are right — and again, we don’t think that necessarily tariffs are the condition — but if other conditions are right, where they can grow and do and expand, they’ll do so,” she said. “The question is whether or not that would truly, on a seasonal and regional basis, be able to meet what we hope is a growing U.S. demand as people continue to eat more fruits and vegetables.”
Adcock said trade deficit numbers are trending in a bad way, but she said the U.S. has strong and aggressive export capacity in durable produce such as orchard fruits and potatoes.
“That really has been a function of — are we able to stay competitive here because of all the winds that are moving against us?” she said. “And like all the rest of agriculture, are people coming back to the farm? Do the people want to go through the trouble of fighting for the workforce, fighting through the regulations, working through all those things? And so that has absolutely led to part of the reason for the growing trade deficit.”
Adcock said some non-produce items — such as alcohols — are also factored into and may somewhat inflate ag trade deficit figures. But she said she’s optimistic that new trade agreements will be on the horizon and will create a more equitable trade for U.S. producers.
As for those who say the U.S. is too reliant on exports, Adcock said that’s not the case for fresh produce.
“It’s hard to say it’s a bad thing to sell into another market when the sale of those products into the other market is not depriving the U.S. market of any of the products,” she said. “Generally, when you have more supply, and you have enough [domestic] supply, you can export. That typically means lower prices where there is also immediate availability.”
Adcock said many produce growers have chosen to grow varieties that have more of a demand in the export market, which is also a good thing.
“There are certain varieties of apples, certain varieties of things that other cultures have a taste for,” she said. “Americans prefer other things, and so that is allowed for some growth. In general, if you’re able to grow more, sell more, be more prosperous across the board, it’s kind of hard to argue that that’s a negative thing for those individuals in those businesses. The export market is not depriving the U.S. market and U.S. consumers of any of the needs that they have.”
Adcock said for those in the fresh produce industry concerned about the impact of tariffs, she encourages them to contact their representatives in Congress.
“You should absolutely ask them to communicate to the administration and share your story where the tariffs are causing pain and consternation and difficulty for your business, and certainly when it’s changing your clients and your customers and having those sorts of impacts,” she said. “That’s very powerful information. IFPA is collecting it unapologetically and sharing it with the administration. They’ve indicated they want to know. They want to track what the consequences are.”
Adcock said she doesn’t think that despite the administration saying the tariffs would be an adjustment period that it has lost sight of possible impacts.
“We have definitely been supportive of the administration working with these individual countries to try to find a path forward, to get their tariffs down,” she said.
Adcock said there is potential for adjustments whenthe U.S.-Mexico-Canada-Agreement comes up for renewal next year.
“There’s a lot of opportunity, I think, to actually create a more equitable playing field for other countries and the U.S., and we’re very much hoping that we can provide the information and the good data and the good reasons for why specialty crops are part of that conversation — and to get things flowing in a better manner again,” she said.
