I think there are a few things that will create more opportunity like seed varieties. You’ll see more shelf-ready packaging coming out of Mexico, more produce going into clamshells or different kinds of bagging options. Because of labor advantages, they might be more able to do that.
As for other things, the berry category has exploded, more pineapples are coming out of Mexico, and bananas have always been grown there, as well as dragon fruit, cranberries, lettuces, broccoli, cauliflower, and carrots.
Just about anything that can be grown in the United States, you can find a place to grow in Mexico. In West Mexico, in particular, you have such a wide range of microclimates and different types of growers. You’ll see nearly everything grown in California grown in West Mexico, and tropicals and other things you can’t grow in California.
What are some of the more significant challenges facing these firms in the next few years?
Jungmeyer: Everyone in the produce industry is waiting for the Food Safety Modernization Act. Mexico is pretty far along on some of the challenges; in general, produce is going to have to clear sanitary standards. Mexico has different bugs, pests, and insects the United States doesn’t want and these challenges will have to be overcome.
Would you say we’re near the point of not referring to this segment as ‘the Hispanic produce market’—that it has become so normalized, it’s the de facto standard for the produce industry?
Jungmeyer: It’s a gradual process. Ten years ago, you might have considered avocados to be a “Hispanic” item. Clearly, that is no longer the case. In the future we could see the same with papaya, mango, and others. Some items, like tomatillos, and certain chile peppers, will always be considered “Hispanic.”
How has trading with Mexico impacted the flow of Hispanic produce in the United States and Canada over the past decade?
Jungmeyer: There are a few trade treaties being negotiated now like the Trans-Pacific Partnership, a high profile partnership with Asian and Latin American countries and Canada. Depending on what happens, you might see some reforms.
The United States and Mexico have also started to enter into higher level regulatory cooperative councils. This is where you might have customs agencies in the United States and Mexico come together and say, “What can we do to harmonize regulations to make two-way trade easier?” In the end, hopefully we will have less red tape at the border. From a trading perspective, it’s hugely important.
The Tomato Suspension Agreement (setting different price floors at different times of year for tomatoes coming from Mexico) provides greater controls with a much higher floor price. We’re hopeful this agreement will stay in place and allow the United States and Mexico to have peaceful trade relations. Last year, and early this year, we were very worried the United States and Mexico would have an all-out trade war over this issue.
