By Fresh Produce Association of the Americas
Nogales – During the recently celebrated 48th Nogales Produce Convention, on Nov. 3- Nov. 5, the Fresh Produce Association of the Americas, (FPAA) released the 2015-16 Nogales Produce Import Report.
The report shows the significant impact that fresh produce imported via Nogales has in the overall trade of fruits and vegetable in the country. During the last season, imports reached a total of 6.3 billion lbs. which represents 17% of U.S. global imports.
The report presents a five-year comparison, and it reveals what items are highest in volume and in value.
As part of the FPAA Produce Convention program, a panel of importers discussed the report, offering possible explanations for the volume variations, discussing industry trends, and talking about information impacting the upcoming season.
These importers on the panel included: Chris Ciruli, COO, Ciruli Bros. Inc.; Fried DeSchouwer, President, Greenhouse Produce Co.; Rod Sbragia, Director of Sales and Marketing, Tricar Sales Inc.; and Mikee Suarez, Sales, MAS Melons & Grapes. Moderating the panel was Lance Jungmeyer, President of FPAA.
In summary, “Tomatoes have started a new growth phase, separating themselves from watermelons, the No. 2 item in Nogales. This is reflective of the continued growth in romas, and persisting strong demand for round reds,” said Jungmeyer.
The panel said to expect more growth in grapes, as companies add varietals that perform well in the early part of the season.
“A few years ago we had only three or four white, or green, varieties of grapes with any volume in Mexico. Now, we see 10 or more varietals being grown, with interesting and new flavor profiles,” said panelist Mikee Suarez of MAS Melons and Grapes. “These grapes also fill a great gap at the beginning of the Mexican grape season, when Chilean white grapes are leaving the market.”
The panel noted how the Nogales produce deal can no longer be characterized as having a January through April peak in volume.
In fact, the statistics bear out that there is an even stronger second peak in the season in late April through June. Both grapes and watermelons contribute to the second peak.
The following graph shows the evolution and changes in the peaks in the last five seasons:
While a lack of water and labor in western U.S. states is shifting volume to Mexico, there also is a clear trend of improvements in logistics and infrastructure at the Southwest border that should enable greater product flows through Nogales.
For instance, the new Unified Cargo Inspection Program in Nogales is bringing Mexican Customs officers to the U.S. side of the border to conduct inspections. Companies with the proper security clearances can take advantage of this program to reduce their crossing times from 4-6 hours during peak season to less than an hour.
Light volume with Mexican melons, vegetables through Nogales – grossing about $3200 to Chicago.