After Florida Freezes, West Mexico Shippers Eye Robust Spring Amid High Prices

A pair of damaging freezes in Florida this winter caused more than $3 billion in agricultural losses in that state and put a squeeze on supplies out of west Mexico. Here’s a look at how some distributors are dealing with conditions this spring.

MAS_Watermelon EDIT.jpg
Rio Rico-based MAS Melons & Grapes will kick off its new watermelon program the week of April 12, says Miguel Suarez Jr., sales manager. Good weather should bring on good quality, he says. Volume should be about the same as last year.
(Photo courtesy of MAS Melons & Grapes)

A pair of damaging freezes in Florida this winter caused more than $3 billion in agricultural losses in that state and put a squeeze on supplies out of west Mexico. As a result, prices of Mexican produce were sent skyrocketing. Here’s a look at how some distributors near the Nogales, Ariz., port of entry are dealing with conditions this spring.

Ciruli Bros.

Rio Rico, Ariz.-based Ciruli Bros. has a substantial mango program and ships vegetables like cucumbers, squash and eggplant.

“We’ve had some of the highest prices I’ve seen in the past 30 years I’ve been doing this,” says partner Chris Ciruli.

Prices should settle down when the U.S. starts producing again in late March, he says.

The company also has experienced growth in demand for organic items including squash, peppers, cucumbers and cabbage.

Ciruli Bros.’ mango deal kicked off the last week of February with the “first-flower” harvest. Second flower was expected to begin around March 23.

That will lead into Easter business, Ciruli says, with clear sailing for harvesting and preparing for Cinco de Mayo.

“We’re trending ahead of where Mexico was harvesting for 2025,” he said the first week of March.

The company was shipping 100% Champagne mangoes in March and will begin round varieties after Easter, April 5.

“Pricing has been challenging,” he says.

Freight costs have risen, and the U.S.-Mexico currency exchange rate is not favorable. Last year the rate was 18 pesos per dollar. This year it has dropped to 16 pesos per dollar, Ciruli says.

IPR_Peppers_Box EDIT.jpg
Core products from Rio Rico, Ariz.-based IPR Fresh are conventional and organic hothouse colored bell peppers and hothouse cucumbers, says Mark Munger, vice president of marketing and business development. The company has expanded its west Mexico colored bell pepper program by partnering with new growers in the Sonora region, he says.
(Photo courtesy of IPR Fresh)

IPR Fresh

Rio Rico-based IPR Fresh has expanded its west Mexico colored bell pepper program by partnering with new growers in the Sonora region, says Mark Munger, vice president of marketing and business development.

“We also increased production with our existing grower partners, securing additional acreage and boosting overall bell pepper volume,” he says.

The company’s core products are conventional and organic hothouse colored bell peppers and hothouse cucumbers.

Weather conditions have been favorable for nearly the entire season in central and western Mexico, Munger says, adding that he’s confident market conditions will stay steady into spring.

“Cooler than normal weather in the southeastern U.S. this winter has kept demand strong, resulting in markets for west Mexico hothouse bell peppers that have remained very firm and slightly above historical averages for most of the season,” he says.

Quality and sizing have been strong for most of the season as well.

“Looking ahead to the remainder of the west Mexico program, we’re confident that this consistency will continue,” Munger says.

Grower Alliance

“Prices are through the roof right now on everything — green bell peppers, cucumbers, green beans, watermelons, honeydews, hot peppers,” Jorge Quintero Jr., partner at Grower Alliance LLC in Rio Rico, said in early March.

Prices on up to 90% of the company’s items are strong because of the weather issues in Florida, he says.

“We’ve been able to see some really high prices to offset the bad prices we saw in the fall,” Quintero says.

Quality problems have been minimal, he says. However, some green beans have experienced whitefly infestations that don’t usually materialize until mid-April.

“[Green bean] yields probably will be lower, but with prices where they are right now, we should be able to come out all right,” he says.

The company’s volume should be similar to last year, if not a bit larger, Quintero says.

Rich_River_Field_2 EDIT.jpg
Caribe yellow chili peppers are among a number of items shipped by Rio Rico, Ariz.-based Rich River Produce LLC, says Edgar Duarte, sales manager. The company is expanding its warehouse by 20,000 square feet this spring, he says.
(Photo courtesy of Rich River Produce LLC)

Rich River

Rio Rico-based Rich River Produce LLC has experienced a hectic season, says Edgar Duarte, sales manager.

“Things started out sky high in October, then came off, then went up again after the freeze happened in Florida,” he says. “We’re expecting to have a strong finish to our season, which will probably go until June.”

The company has seen good but not great production out of west Mexico, he says.

“We are expecting good pricing and good order flow,” he adds.

Quality was looking good for new items now coming out of Hermosillo, Guaymas and Obregon in Sonora, he says. But the same could not be said for the tail end of the deal out of Sinaloa, which will wrap up around the end of March.

“Prices are high, quality is fair,” out of Sinaloa, he says.

“We’re running into issues here and there,” Duarte adds. “We’re not looking at diamonds, but they’re the same amount of money as if they were diamonds.”

Volume at Rich River Produce should be a bit higher than last year because growers were not sending out as much product a year ago because of low markets.

“Right now, with the situation the way it is, they’re sending us everything because they’re getting really good prices for it,” he says.

MAS Melons & Grapes

Rio Rico-based MAS Melons & Grapes will kick off its new honeydew program around April 1 and start watermelons the week of April 12, says Miguel Suarez Jr., sales manager. Good weather should bring on good quality, he says. Volume should be about the same as last year.

“Markets and quality are all pointing in a positive direction,” he says.

Honeydews and watermelons will continue to be shipped out of southern Mexico until the end of March and into April.

“That will take us into our northern Mexico deal probably pretty flawlessly,” he says.

The company also ships butternut squash and kabocha squash.

“The workhorse definitely in the summer is our watermelon and honeydew programs,” Suarez says.

The company has pulled back a bit from table grapes. The Mexican grape deal traditionally has been 10 to 12 weeks in the spring and summer, he says, but that has shrunk to about eight weeks.

“The majority of our acreage was in Caborca, which is the later part of the deal, which is becoming a little bit of a challenge,” he says.

Also, retailers tend to seek out year-round suppliers.

“We were basically a boutique grape company,” he says.

But Suarez is optimistic for the future.

“I do believe the boutique grape will be back at one point,” he says.

Your next read:
$3B in Losses Estimated in Florida Freeze

The Packer logo (567x120)
Related Stories
The companies, which have worked together for the past four years, plan to officially unify operations under the Classic Fruit label.
As Mexico evolves from a high-volume supplier to a strategic powerhouse, exporting $18 billion in fresh fruits and vegetables globally, IFPA’s Jessica Keller reveals why the country matters to the produce industry now more than ever.
With favorable crop conditions reported for California fruits like berries, citrus and melons, some major grower-shippers in the state are gearing up for promotions to help boost summer sales.
Read Next
Rising fuel costs and retaliatory tariffs are forcing growers, marketers and shippers to navigate a chaotic market where losing international share means immediate price drops at home.
Get Daily News
GET MARKET ALERTS
Get News & Markets App