Texas may be known across the globe for its oil wells, vast ranches, and NASA, but the Lone Star State is also home to one of the nation’s top hubs for the produce industry.
Not only is Texas the country’s top supplier of watermelon, bringing in about $75 million per year, and the third-biggest citrus grower, it’s also a major producer of onions—to the tune of over 230 million pounds annually. Indeed, the state sends $6.5 billion in agriculture products every year to the rest of the United States and beyond.
Given that Texas’ domestic fruit and vegetable industry generates over $445 million per year, its importance to the state’s economy is undeniable. Yet produce grown in and imported from Mexico plays a substantial role as well, especially in terms of revenue and jobs.
Nearly half of all fresh fruit and vegetable imports to the United States now come from our southern neighbor, Mexico. And with the American consumer’s insatiable appetite not just for fresh produce but for new and exotic offerings—from mangosteens and rambutan to dragon fruit and nopales—this number will continue to climb.
Looking ahead to a new year of challenges and successes, many agree that the complicated issues of transportation and trade agreements need the most immediate attention.
Since its inception in 1994, the North American Free Trade Agreement (NAFTA) has become a job and revenue generator. Trade with Mexico skyrocketed to $1.3 trillion annually, with about 14 million jobs in the United States depending on that trade to continue. In Texas, nearly 5 million jobs are a direct result of NAFTA, and most hope this will continue with the new United States-Mexico-Canada Agreement.
According to Cindy Schwing, senior marketing and business development manager for Pharr-based London Fruit, Inc., there’s too much at stake for consumers and business owners alike for the Trump administration to upend the apple cart.
“I don’t think they’re going to affect an industry that exports so much to the United States,” she said. “If they do slap tariffs on produce at some point, the cost will be passed onto the consumer.”
And that would make a lot of industry folks and shoppers very unhappy.
Tony Incaviglia, vice president of sales and marketing for GR Fresh, believes the outlook for this year is pretty rosy, barring any unexpected catastrophes. And if a challenge arises, then the company deals with it head-on.
“The biggest concerns I have are about the things I can’t control like weather and transportation costs, because challenges are so often part of this business,” he said. “Whatever can go wrong will go wrong, but that doesn’t mean we don’t take the leap of faith.”
The Valley, as the region is commonly known, follows the Rio Grande River across a large swath of southern Texas, encompassing 4,872 square miles. Ironically, it is not really a valley but a floodplain, and roughly the size of Connecticut.
As far as population, the Valley is home to 1.4 million people, the vast majority of which are Hispanic, living in four counties: Hidalgo, Cameron, Starr, and Willacy.
The two smallest counties are Starr and Willacy. Hidalgo, the largest of the Valley’s four counties, includes the metropolitan area of McAllen, Edinburg, and-Mission, which is one of the fastest growing in the United States. The county’s current population is expected to reach 1 million by 2020
Interestingly, McAllen, with a population of just over 142,000, is one of only three cities (the other two being Houston and San Antonio) in the entire state with a produce terminal market. Also known as the Central de Abastos, the market serves as a critical gateway for perishable goods making their way to and from Mexico and then onto various destinations, mostly local or statewide.
No doubt the market’s location, just 3.5 miles from the Pharr-Reynosa International Bridge, is a big plus for the 200-plus trucks that stop there for pickups and dropoffs every day. The market itself boasts five buildings on 42 acres and is home to about 90 businesses.
This is an excerpt from the most recent Produce Blueprints quarterly journal. Click here to read the full supplement.
