Posts Tagged “Mexican tomatoes”
I you have loaded produce at one of the border crossings in California, Arizona or Texas then odds are those loadings have included Mexican tomatoes. The tomato is big business.
A new study by the University of Arizona points out Mexican tomatoes crossing the U.S. border contributed an estimated $4.8 billion in total economic activity to the American economy in 2016.
Even though Mexican tomatoes are grown and harvested south of the U.S. border, it supports economic activity jobs and income in the U.S. through forward and backward links in the supply chain.
A hypothetical decrease in the supply of fresh tomatoes from Mexico made by suppliers found a decrease as small as 5 percent could have a negative impact on consumers well-being, ranging in to hundreds of millions (of dollars) per year. Researchers for the study considered U.S. wholesale activity, grocery activity, foodservice sales and transportation.
According to the study, the $4.8 billion in total sales was generated through:
- $1 billion in direct wholesale activity;
- $816 million in direct grocery retail activity;
- $145 million in direct foodservice activity;
- $30 million in in-bound shipments to Canada;
- $2.8 billion from indirect and induced economic multiplier effects.
The study found that U.S. imports of Mexican tomatoes in 2016 were valued at $1.9 billion, while Canada’s tomato imports from Mexico totaled $255 million.
About 9.4 million pounds of tomatoes arrived daily to the U.S. from Mexico in 2016, with 90 percent of those imports coming through Nogales, AZ: Pharr, TX and Otay Mesa, CA.
U.S. imports from Mexico in 2016 included 1.7 billion pounds of round tomatoes, 1.5 billion pounds of roma tomatoes, 167 million pounds of grape tomatoes and 61 million pounds of cherry tomatoes, according to the study.
Those imports added $4.8 billion in economic activity, supported nearly 33,000 full and part-time jobs earning $1.4 billion in employee compensation.
In total, $2.9 billion in U.S. gross domestic product was directly and indirectly supported by the value chain delivering imported fresh tomatoes from Mexico to Canada and to U.S. consumers through grocery retail and foodservice industries. This resulted in over $400 million in federal tax revenue and roughly $350 million in state and local tax revenues.
From South of the border in Baja California to just above the U.S., Mexican border and then up north in the San Joaquin Valley, good volume tomato shipments are coming soon.
Although Baja California tomato shipments have been under way since April, the seasonal increase in volume of Mexican tomatoes crossing the U.S. border at Otay Mesa, CA has just started.
August is typically a slower month, primarily since growers don’t plant as much because there will be homegrown garden tomatoes and regional production in the summer. When those summer tomatoes start fading, the larger commercial farmers come back for a fall season.
Everything from conventional and organic roma tomatoes as well as heirloom tomatoes and organic round tomatoes from Baja California started in June.
Higher volume shipments from this area south of San Diego in Mexico will ramp up in mid-October and continue into mid-January.
California Tomato Shipments
Meanwhile, shipments are also is underway north of the U.S. Mexican border.
West Coast Tomato Growers LLC, of Oceanside, CA, started shipping romas and round tomatoes in July, and supplies are expected to last into November. The company has increased its roma production 50 percent this season.
A decade ago, there were a handful of tomato growers in San Diego County, but now West Coast is the lone survivor. A primary reason is land values for home and commercial real estate, combined with the increase in Baja production. Labor and production costs also are cheaper south of the border.
Although the Baja California tomato farming production continues to increase, there is competition from California’s San Joaquin Valley. The valley has bee shipping tomatoes since the second week of June and will continue until the first week of November.
Hot summer weather in northern California led to below-average yields and some quality issues, but by September more favorable weather is expected that should result in better volume and quality out of northern California.
Northern California tomatoes – grossing about $4000 to Chicago.