Hero or not, with both growing and harvest costs less expensive in Mexico and many wholesalers turning southward for supply, some Lone Star State growers are deciding to get out altogether or switch to less labor-intensive crops.
Manifest Mexico: High-Value Trade
Although Texas-Mexico trade encompasses a vast array of goods, such as the successful maquiladora manufacturing programs (where parts or assembly take place in Mexico but products are ultimately sold in the United States), the buying and selling of fresh fruits and vegetables remains very big business.
Perhaps the very basis for this reciprocity comes from the state’s name, derived from a Native American Caddo word, teyshas, which translates to ‘friends’ or ‘allies.’ For Texas, this rising reliance on trade, especially imports, has become critical to keeping up with demand for fresh produce. Although there is certainly reliance on trade, and growing in the state has fallen in some areas, it does not mean there’s a total downward spiral.
It is true a combination of factors, from rising population growth and urban sprawl to the declining interest of younger farmers, continues to impact Lone Star production acreage with some growers shifting operations to Mexico and beyond. The trend, however, is not new—as both U.S. and Canadian suppliers continue to establish growing operations south of the border.
It is difficult to dismiss Mexico’s heightened economic advantages, including less expensive and plentiful labor and a surge in protected agriculture for consistency and quality. Such benefits make partnering with Texas’ southerly neighbor hard to resist.
Leaping Imports
When it comes to imports, volume tells the story. Lone Star State imports have continued to grow a whopping 108 percent over the past eight years, according to figures released by Texas A&M University’s Center for North American Studies.
With the most of any state, Texas has 29 official ports of entry, with a generous sprinkling along the border. These ports are a busy conduit for $4.6 billion in fresh fruit and vegetable shipments from Mexico in 2015, with 2016 expected to be even higher, though the political climate may have an impact.
The explosion in volume is aided by the completion of superhighways and port improvements, which have streamlined the inspection and movement of commodities. “Since roads were put in from Culiacán [in the northwestern state of Sinaloa], the freight savings is huge,” confirms Scott Blanchard, who heads up Latin grower relations at the Tomato Management Corporation in Houston.
Leadbetter agrees; Majestic imports jumbo carrots, lemons, limes, cabbage, and watermelon from Mexico to augment its homegrown supply.
For Gladys Moreno, chief executive officer at Dominguez Fresh Produce, LLC in McAllen, the distributor’s biggest imports include cilantro, jalapeños, sapote, tomatillos, broccoli, and nopales (pads from the prickly pear cactus).
All three importers acknowledge the importance of ongoing trade partnerships with Mexican grower-shippers as essential to their business and growth. This includes NAFTA (the North American Free Trade Agreement), which President Donald Trump has vowed to reconfigure in the coming months.
Images: Joel Pacheco, Valleyite12, David Litman, Laura Gunn, Sean Pavone, f11photo, Philip Lange, photo.ua,
Sean Pavone, David Litman/Shuterstock.com
Read Part II – 5/31
