West Mexico industry facing new disruptions
Navigating ongoing disruptions with new disruptions has created a roller coaster effect as growers and shippers learn new ways to run their businesses. West Mexico suppliers have not been spared the ride. Supply chain troubles and rising costs of 2021 created new challenges. Now, the Russian invasion of Ukraine brings more intensity to the challenge of doing business.
The multiple global disruptions have created a mixed bag of outcomes, including freight and gas prices continuing to be high and rising.
“We did not see the effect of the Russian invasion on prices hitting us so quickly,” Chris Ciruli, chief operating officer at Ciruli Brothers said. “Since the conflict, gas prices are skyrocketing. Freight prices were moving down, but now they’re trending back to the highs of 2021. Meanwhile, other inputs, like cardboard, are arriving on time. Prices have leveled off for many of the company’s inputs.”
Even with a few bright spots, the recent prices of freight are on the rise again.
“In overland freight, we saw a 30% or so price increase over normal market prices in January and February compared to the past two to three years,” said Mikee Suarez, who works in sales at Mas Melons and Grapes. “The most challenging aspect of this past season has been the transportation piece of the supply chain.”
That sentiment is shared by fellow shippers.
“Transportation has probably been the biggest challenge,” said Steve Spence, sales manager at EarthBlend. “Costs have been higher than normal this season because of limited drivers and the uncertainty of fluctuating fuel prices. Costs have increased and expensive freight rates made last season difficult.”
Beyond freight, transportation in general has been another simultaneous disruption.
“Overseas shipments incurred delays and cancelations due to port unloading and loading delays,” Suarez said. “This happened both here and at destination. Container and labor shortages have limited the number of items we can ship.”
It’s hard to take focus off the challenges when they’re in your face every day. But most growers find ways to refocus.
“I think it’s hard not to be optimistic in this business. We sell food and we all need to eat. Food is fuel for our bodies. And that won’t change,” Suarez said. “We do hope some of these high freight rates are remedied in a larger scale soon with new technology or driver-hiring programs.”
On a smaller scale, one shipper has found a way to deal with all the disruption: work with it.
“There’s so much noise in the world right now,” said Michael DuPuis, quality control and public relations coordinator at Divine Flavor. “It helps us to continue to do what we do best. Our retailers are expecting produce from us. We can only control what’s in our ability.”
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