TIPA keeping busy with Viva Fresh, other action items

The Texas International Produce Association is prepping for the 2023 Viva Fresh Expo in late March, but that is far from all the group is working on, says Dante Galeazzi, the association's president and CEO.

The March 30-April 1 Viva Fresh Expo will be at the Gaylord Texan Resort and Convention Center in Grapevine, Texas.  The event shines the spotlight on Texas as an important trade corridor and production zone for fresh fruits and vegetables and how it also has become known for its focus on promoting healthy eating.

Galeazzi said in late January that this year’s Viva Fresh should have more attendees than ever, with a huge buyer presence expected. Through late January, retail and foodservice signups were already nearly matching last year’s total, and two months remained before the event.

“Knowing that we've still got 60 days [before] the event, I feel very confident that we are going to have a record attendance in terms of the number of buyers visiting Viva Fresh,” he said.

Galeazzi said the event tries to make the show floor more and more regional.

“We continue to push to make sure that the exhibitors on our floor are folks representing the region,” he said.

That means exhibitors are growing in Texas or a surrounding state or use Texas as an arrival point for produce bound for the U.S., he said.

“We are going to have 200 exhibitors; we're going to have a great lineup [of events],” Galeazzi said.

The show is bringing back the virtual field tour element, he said.

In addition, Galeazzi said there will be networking receptions with that “Texas vibe” that attendees love. A tour of local wineries and a golf tournament are also options.

“We're going to have a relaxed schedule, and we are going to make sure that we focus on hospitality and quality of the event,” he said. “Most importantly, we want to make sure that everybody has plenty of time and opportunity to network with the people they came to see.”

Other issues

Beyond the expo, Galeazzi said the Texas International Produce Association is working on educating Texas legislators about industry issues. The state's legislature was seated in January for its two-year term.

Beyond that, produce shipments from Mexico and Texas were running at strong levels in late January and early February, he said, and suppliers were dealing with higher input costs for items like pallets, labor, packaging, cartons and more.

“Your basic essentials for the packing side of the business all have increased, and they will remain elevated,” Galeazzi said.

With retailers now trying to tamp down inflation, there is resistance from the buying side for any further increases in fob prices, Galeazzi said.

“There isn't much [upward] movement on the fob price anymore, and there is even pressure for it to go down,” he said.

Growers and shippers have faced input price increases of 25% or so, while retail produce prices are up only about 10%. That 15% difference between grower price increases and retail price jumps is where the supply side of the industry is seeking to make up.

“Where's that 15% going to come from? Because there's only so much cost savings you can do," Galeazzi said. "I think a lot of these companies have really tightened their belts as far as they can tighten them, starting all the way back to the first days of COVID."

Galeazzi said suppliers may try to push up their prices because of necessity. 

Issues of importance

In March last year, Texas Gov. Greg Abbott instituted new inspections conducted by state troopers for commercial vehicles crossing from Mexico, aiming to stop illegal immigration and illicit drugs. Before the governor called off the inspections, the action caused a 10-day slowdown in border traffic. 

“It was a tragic event,” Galeazzi he said. The fresh produce industry probably lost about $240 million worth of worth of product during that 10-day period, he said, noting that about $30 million of fresh produce typically crosses Mexico into Texas every day. During the period of the state’s inspections, trucks were stuck in line for as long as 10 days, causing loads to spoil after fuel ran out in their reefer units.

Galeazzi said he doesn’t’ expect a repeat of that crisis.

“We don't believe that there's reason that the governor would do that again,” he said. While the state has an interest in stopping human smuggling, Galeazzi said he doesn’t expect any action by the state that would shut down commercial traffic.

Volume up

Shipments of produce overall from Mexico went down slightly in 2022, lower by 1.5% compared with the previous year. However, Galeazzi noted that truckload volume of Mexican produce coming through Texas grew by about 3% year over year.

Taking into account transportation rates, Galeazzi said that Texas, in many cases, is the best crossing point for fresh produce coming from Mexico into the U.S. or coming from Mexico and bound for the Canadian market.

“Texas really puts [shippers] at a strategic logistical advantage compared with many of the other crossing points,” he said. 

Infrastructure improvements

Galeazzi said the infrastructure for produce shipments from Mexico continues to expand in Texas. The Pharr International Bridge is expanding by virtually doubling the size of that bridge, he said.

“They are currently at four lanes, north to south, and they're going to expand to eight,” he said.

In addition, there is an ongoing project to build out refrigerated inspection spaces from about five or six trucks to about 30 trucks.

The border bridge in Progresso Texas has expanded its overweight corridor so trucks carrying up to 120,000 pounds can pass through that area.

Laredo also is expanding its World Trade Bridge, Galeazzi said, and the city of McAllen has announced it is expanding a bridge to handle car traffic.

“That's important because we do have workers that come back and forth every day, and the more bridges that we can have down here that can grow and accommodate the continued expansion of the industry of not just fresh produce, but everything that's happening here, is really going to be essential so we can keep up and don't hit choke points," he said.

Infrastructure projects for the freeways for the overpasses are ongoing as well, he said. 

“We continue to have expansion projects in south Texas for additional roads that are going to bring the trucks around the cities, and that will not only speed up transit, but it will make for safer road conditions, which is huge for trying to save money on insurance, which we all know is a big, big challenge in the transportation industry right now," he said.

The Port of Houston is also expanding to increase the volume of refrigerated container business.

“Bringing your product to Texas means that you are able to hit the Midwest, the West Coast and East Coast, all from a single arrival point at a fairly competitive rate,” Galeazzi said.