Jungmeyer goes on to say that FSMA “means major changes for how the industry operates, primarily from a legal and liability standpoint.” Nogales-based distributors and shippers are “now responsible for ensuring the integrity of food safety in Mexico or wherever else they’re importing from.”
In March 2016 hundreds of top industry officials from both sides of the border met for FPAA’s annual Spring Policy Summit in Tubac, and food safety was the primary topic of discussion. The two-day event featured informational workshops and interactive discussions about the Nogales produce industry.
Havel says Mexican growers are now focusing on three key areas: social responsibility, traceability, and fair trade. He believes Mexico leads the industry in food safety. “Mexican growers take food safety and certification very seriously; they’re working to grow premier product, pack it professionally, and make it the safest in the world.”
Labor Woes
Nogales produce businesses are also contending with labor shortages, and not just in the United States. “Labor continues to be an issue on both sides of the border,” Ciruli says. “Retaining good people is becoming an operational challenge in the United States as well as Mexico.”
November’s passage of a new minimum wage in Arizona, $12 per hour, is also making waves. Labor is still scarce, with thousands of ag workers needed each year, and fewer people showing up. According to a study by the Partnership for a New American Economy, the decline in farm workers is reducing U.S. fruit and vegetable production by 9.5 percent or $3.1 billion a year.
Politics: After the Elections
Local, state, and national election results produced a few surprises and game changers for the produce industry. Only time will tell how much impact the Trump Administration will have on the buying and selling of perishables, both domestically and crossing the border.
Obregon believes, “It’s too soon to tell the repercussions the election results might have on our business. I just hope the flow of fruit and vegetables between Mexico, Canada, and the United States continues as it has up to now. Trade barriers would translate into higher fruit and vegetable costs for the U.S. consumer,” he observes. “In a time when healthy eating is a must, trade barriers would be irresponsible.”
Higueral’s Duarte is more optimistic, and begins his thoughts with a familiar refrain. “People have to eat, so I don’t think it will affect us in a bad way. The Hispanic market is one of our big consumer bases. We handle a lot of chili peppers and items like that—hopefully, they’ll stay here in the United States and keep consuming our products, as long as the immigration status and deportation issues don’t change.
“What we’ve been seeing in the news lately, things are going back to normal. There’s not as much talk about mass deportation, which had everyone really scared before. I don’t see anything changing drastically anytime soon,” Duarte concludes.
