SunFed expects growth in Mexican Produce, despite challenges

Rio Rico, Ariz.-based SunFed expects to move slightly more Mexican produce in 2024 compared to last year, despite weather challenges early in the year.

sunfed
sunfed
(sunfed)

Rio Rico, Ariz.-based SunFed expects to move slightly more Mexican produce in 2024 compared with last year, despite weather challenges early in the year.

SunFed has partnered with Mexican growers for a year-round supply of various items, mainly squash, cucumbers, bell peppers, eggplant, tomatoes and melons, according to Matt Mandel, vice president of finance and legal for SunFed.

“Due to weather challenges, the first third of 2024 will be significantly lower volume than 2023 though our production budget was set for a 5% to 8% growth year over year,” Mandel said.

Overall, Mandel expects SunFed will grow its Mexican produce supply from 1% to 5% in 2024, compared with 2023.

Some production-level issues that are influencing Mexican produce volume include labor and water availability, Mandel said.

“Labor and water continue to depress most growth plans in northwest Mexico and uncertainty regarding the Tomato Suspension Agreement will likely lead to fewer tomatoes planted,” he said, though he noted tomato acreage projections are speculative at this point.

Over the next several years, Mandel said the industry may see a greater percentage of Mexican produce shipments through South Texas.

The Packer logo (567x120)
Related Stories
The Union City, Calif.-based company is eyeing a potential 50% boost in sales following the first acquisition in its 63-year history, a strategic expansion engineered to master the high-stakes world of just-in-time produce logistics.
Severe drought and unseasonable spring heat in North Carolina are causing significant yield losses for specialty crops like brassicas and berries while simultaneously increasing pest pressures for regional organic growers.
The strategic transition marks a significant step forward in Thx!’s mission to prove that doing good is good business, while unlocking new opportunities for brands, retailers and consumers to create meaningful impact.
Read Next
Industry leaders outline how retailers can maximize the 90-day sweet cherry sales window through aggressive early promotions and strategic late-season displays.
Get Daily News
GET MARKET ALERTS
Get News & Markets App