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Tex-Mex Trading: The Rio Grande Valley – Part I: Expansion & Master Plans

Where bustling border crossings & expanding horizons equal success
Rio Grande_MS

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A decade ago, the Rio Grande Valley was rarely a hot topic of discussion for produce dealers. Today, the region is a hotbed of activity, with truckloads of fresh produce arriving from Mexico each day. Join us as we find out what’s heating up the southern tip of Texas.

Location, Location, Location
The Rio Grande Valley, about the size of Connecticut, stretches along the southernmost edge of the Lone Star State. The area, known simply as El Valle or The Valley by residents, is cradled on its southern borders by the Rio Grande River and Mexico.

This buzzing multicultural and bilingual hub is comprised of four counties: Starr, Hidalgo, Willacy, and Cameron, where populations average 90 percent Hispanic. The locale’s current population is 3 million, which is projected to climb to 7 million by 2040.

The Valley’s notoriously hot weather has also given it the nickname, ‘the Texas Tropics,’ but stepping outside isn’t the only hot here—the produce market is on fire, making history with its dramatically increasing perishable imports from Mexico.

Pedro Camacho, owner of Traveler Produce and its storage services arm, Eagle Cold Storage in McAllen, believes the advantages to doing business in the Valley don’t stop there.

In addition to its proximity to Mexico and obvious freight savings, suppliers are also close to several major metropolitan areas within the Lone Star State. “We have big cities near the Rio Grande Valley such as San Antonio, Houston, and Dallas,” he notes, and these regions are “attractive markets that consume a higher percentage of Mexican produce.”

More, More, More
Everyone hailing from the Rio Grande Valley’s produce industry extol its geographic layout as a powerful lure to doing business there.

“We have a unique logistical advantage here in South Texas over our competitors in other areas,” insists Michael DeBerry who works in sales for Villita Avocados in Pharr. “There is no place in the country that we can’t deliver to in two to three days’ time,” he says. Further, he notes, “our freight rates are much cheaper due to the number of trucks that are unloading in Laredo every day.”

Not only is the benefit one of locale, but of convenience as well. “The shipping point, which gets us closer to the Midwest and Northeast, is an advantage held by the customer,” explains Art Salinas, director of operations for Bonanza 2001 in Pharr. Not only do customers “pay less freight and receive items a day-and-a-half sooner,” he explains, but it helps area businesses too, often drawing customers to “look here a little more than out West because it’s convenient.”

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