SunFed expects growth in Mexican Produce, despite challenges

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.