Mexican produce growers are pressured by short water and tight labor conditions this season, but distributors in Nogales, Ariz., and other warehouse cities continue to expand their capabilities, said Lance Jungmeyer, president of the Fresh Produce Association of the Americas.
There have been some issues with water and labor availability in the states of Sonora and Sinaloa. Growers in those regions have been in a long-term drought and some reservoirs that provide water to growers are only 20% to 30% full.
Growers of produce, grain and other crops have been hurt by the water shortfall, Jungmeyer said.
The questions about water availability have likely caused some produce growers to be conservative in the acreage they plant for the coming season. That played into a reduction in Mexican produce volume in the 2023-24 season and may likely cause a similar effect this year, Jungmeyer said.
USDA statistics indicate that U.S. imports of Mexican fruits and vegetables totaled 11.18 million metric tons from October 2023 to September 2024, down 5% from the previous season.
Labor availability also is a concern for Mexican growers. Factories being relocated from Asia to Mexico are drawing workers from rural regions.
“A lot of the Mexican migrant workers, people who are Mexican citizens and migrate from place to place in Mexico, are doing that less and less,” Jungmeyer said, which leaves less labor available in certain areas.
“I think you’re starting to see more Central American laborers in the farm workforce,” he said.
The factories also compete with farms for water, he said.
Another trend that is continuing for growers is an emphasis on social and environmental responsibility measures.
Distributors in Nogales also are expanding their warehouse capabilities, building some new facilities and rehabbing older warehouses, Jungmeyer said. Some of that capacity is helping to handle U.S. exports of apples and potatoes to Mexico, but mostly for Mexican produce coming north to the U.S.
There has been an increase in investments by private equity and foreign investors in the Mexican produce supply chain, which Jungmeyer said is a trend in many produce-growing countries.
FPAA is now representing the interest of distributors in Arizona, Texas and California, with dues based on the number of truckloads crossed in each district. Because of new growing regions and highway infrastructure, Texas ports have seen a more rapid increase in Mexican produce shipments compared with Nogales in recent years. The FPAA is representing the interests of all distributors of Mexican produce.
“I want to make sure the industry understands we’re not just a Nogales tomato association,” Jungmeyer said. “We are an association representing importers of all kinds.”
