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Tex-Mex Trading: The Rio Grande Valley – Part III: Expansion & Challenges

Where bustling border crossings & expanding horizons equal success
Rio Grande_MS

Political Concerns
When we asked contributors to discuss how the results of the presidential election would impact trade and the fresh produce industry, their thoughts were varied, but with some agreement on a few prominent issues.

Camacho and Flores are both uncertain whether Trump will follow through on his campaign promises. Camacho is much more concerned about the North American Free Trade Agreement (NAFTA). “NAFTA cannot be altered; these three countries [the United States, Mexico, and Canada] depend on each other.”

FRESH FORUM
What were your toughest challenges this past year? Will you be facing the same obstacles in 2017, or are you better equipped to deal with them?

Richard Ruiz, Ruiz Sales
One of the toughest challenges in our business is procuring premium quality limes. We work hard with our grower-partners to invest and ensure they can get the best possible crop, since a great pack starts with a great grower.

Yasmani Garcia, Sweet Seasons
A lot of regulations are in the grey area and not clear. All our stuff crosses in customs—papayas are held under review and tested. Sometimes when they come back, they’re no longer good because the procedure takes longer than the shelf life of the product. This continues to be a challenge that falls out of our hands and as an industry needs to get better.

Pedro Camacho, Traveler Produce / Eagle Cold Storage
The biggest challenge was trying to keep everybody informed and involved with food safety regulations and practices, from the farm to the distribution center.

Eli Reyes, Nicho Produce
The past year our toughest challenge was having to deal with new vendors coming in to give us competition. This year, we’re better equipped to handle all the changes within the school districts and are more than capable of competing with all the new vendors.

Michael DeBerry, Villita Avocados
Space; this past year we saw a record year for production, and space was sometimes an issue. That’s why we built the new warehouse: it will provide us with all the space we need and allow us to increase our volume out of Mexico as well. We also made some additions to our facility in Michoacán to increase our packing capacity there as well. Space and capacity are challenges throughout the year, and one of the reasons for these changes.

Art Salinas, Bonanza 2001
Weather is always an issue. When speaking about the bigger picture, we all face obstacles with the weather, low demand, and dealing with too much supply. These are all obstacles we face if not once, then twice a year, and sometimes there’s a real good year when we don’t face them at all. The biggest work is at the farm—doing what’s needed for the products to be sold at a premium or just sold period. Rain was a factor last summer; rain in the right place at the wrong time.

Felipe Moreno, Moreno Produce
One of our toughest challenges is getting to know different growers and meeting ones that subscribe to how our company deals with quality. We go out and visit to see the farms, how they’re producing, and that everything is being properly set up.

Armando Flores, Ace Customs Broker, Inc.
Competition with more brokers in the market…and upgrading software to be able to communicate with Customs—they’re using ACE (automated commercial environment) software that came into effect this year­—and we’re still implementing it. It adds 34 different agencies into the software, and depending on the products imported, the required agents are notified of particular items. It’s still a learning process between Customs and ourselves, but will eventually expedite all transactions.

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