Mexican imports extremely important to Texas deal
Mexican imports extremely important to Texas deal
Most major players in the southern Texas produce industry are almost by definition importers of Mexican product.
"I do not know of a major [Rio Grande Valley] Texas shipper that isn't working both sides of the border," said John McClung, president of the Texas Produce Association.
In fact, Mr. McClung said that the opening of the U.S. market to Mexican avocados several years ago has tipped the scales toward imports when measuring the volume of imported vs. domestic product being shipped from south Texas on an annual basis. "We were getting pretty close to 50 percent anyway and the Mexican avocado deal pushed it over the top," he said, referring to the fact that more than 50 percent of all produce from the Rio Grande Valley is now grown in Mexico.
In 2005, Mr. McClung said that more than 76,500 loads (40,000-pound equivalents) of fresh Mexican produce crossed the border in Texas and were shipped farther into the United States. As a point of reference, Arizona, which has long been the leading entry point for Mexican-grown product, checked in with just over 93,000 load-equivalents.
Fueling much of the increase in imports of Mexican product are fruits such as limes. Lime imports from Mexico represent about one-fourth of the total imported volume through Texas and have grown to the point where south Texas shippers now ship twice as many Mexican limes to their customers as Texas grapefruit and oranges combined.
But Mr. McClung said that shipments of vegetables are also increasing on an annual basis. Onions are the top imported vegetable item, but supplies of Mexican-grown tomatoes, cucumbers, leafy greens and bell peppers are also on the rise. The TPA executive said that there are three equally important reasons for the increased shipments.
New production areas for Mexican tomatoes and other vegetables have come into play in the eastern half of the country, which are closer to the Texas border than Nogales, AZ.
The highway system in Mexico has improved tremendously in recent years and is particularly good between Texas and the growing regions. "The roads and signage south of Texas [in Mexico] are as good if not better than in the United States. The signage is really very good and there is ample fuel. There are no shoulders," he quipped, "but as long as you stay on the road, they are very good."
It is a fact that a greater percentage of the U.S. population lives east of Texas rather than in the West. Consequently, it is a shorter haul to get from almost any destination east of Chicago via Texas instead of via Nogales. "Buyers east of Chicago can save $1,000 to $1,500 per load," Mr. McClung said.
Almost exclusively, products coming into Texas are broken down into smaller units and sent on to the U.S. buyer. Though laws have changed and do allow Mexican trucks to travel farther into the United States for deliveries, as a practical matter, Mr. McClung said, this just does not happen. "In the first place, almost everything coming up is in full loads and needs to be broken down. But more importantly, U.S. buyers want somebody on this side of the border to be responsible if anything happens. They want to have somebody they can call."
Mr. McClung expects Texas to continue to import more Mexican produce in the coming years. "We are seeing a 1-3 percent increase in imports every year, and I see no reason for that to change."
At some point in time -- especially in the 1990s -- the increase in Mexican imports mirrored a decrease in Texas production fairly well. But today that is not the case. Mr. McClung said that the acreage farmed and volume produced in south Texas have somewhat stabilized. The increase in imports represents an increase in business -- a concept virtually everyone in south Texas embraces.
"I do not know of a major [Rio Grande Valley] Texas shipper that isn't working both sides of the border," said John McClung, president of the Texas Produce Association.
In fact, Mr. McClung said that the opening of the U.S. market to Mexican avocados several years ago has tipped the scales toward imports when measuring the volume of imported vs. domestic product being shipped from south Texas on an annual basis. "We were getting pretty close to 50 percent anyway and the Mexican avocado deal pushed it over the top," he said, referring to the fact that more than 50 percent of all produce from the Rio Grande Valley is now grown in Mexico.
In 2005, Mr. McClung said that more than 76,500 loads (40,000-pound equivalents) of fresh Mexican produce crossed the border in Texas and were shipped farther into the United States. As a point of reference, Arizona, which has long been the leading entry point for Mexican-grown product, checked in with just over 93,000 load-equivalents.
Fueling much of the increase in imports of Mexican product are fruits such as limes. Lime imports from Mexico represent about one-fourth of the total imported volume through Texas and have grown to the point where south Texas shippers now ship twice as many Mexican limes to their customers as Texas grapefruit and oranges combined.
But Mr. McClung said that shipments of vegetables are also increasing on an annual basis. Onions are the top imported vegetable item, but supplies of Mexican-grown tomatoes, cucumbers, leafy greens and bell peppers are also on the rise. The TPA executive said that there are three equally important reasons for the increased shipments.
New production areas for Mexican tomatoes and other vegetables have come into play in the eastern half of the country, which are closer to the Texas border than Nogales, AZ.
The highway system in Mexico has improved tremendously in recent years and is particularly good between Texas and the growing regions. "The roads and signage south of Texas [in Mexico] are as good if not better than in the United States. The signage is really very good and there is ample fuel. There are no shoulders," he quipped, "but as long as you stay on the road, they are very good."
It is a fact that a greater percentage of the U.S. population lives east of Texas rather than in the West. Consequently, it is a shorter haul to get from almost any destination east of Chicago via Texas instead of via Nogales. "Buyers east of Chicago can save $1,000 to $1,500 per load," Mr. McClung said.
Almost exclusively, products coming into Texas are broken down into smaller units and sent on to the U.S. buyer. Though laws have changed and do allow Mexican trucks to travel farther into the United States for deliveries, as a practical matter, Mr. McClung said, this just does not happen. "In the first place, almost everything coming up is in full loads and needs to be broken down. But more importantly, U.S. buyers want somebody on this side of the border to be responsible if anything happens. They want to have somebody they can call."
Mr. McClung expects Texas to continue to import more Mexican produce in the coming years. "We are seeing a 1-3 percent increase in imports every year, and I see no reason for that to change."
At some point in time -- especially in the 1990s -- the increase in Mexican imports mirrored a decrease in Texas production fairly well. But today that is not the case. Mr. McClung said that the acreage farmed and volume produced in south Texas have somewhat stabilized. The increase in imports represents an increase in business -- a concept virtually everyone in south Texas embraces.
