Adverse winter weather conditions in Mexico sting seed supplier Sierra Seed
Adverse winter weather conditions in Mexico sting seed supplier Sierra Seed
“When the season is slow, payments are slow,” said Sabrina Hallman, the owner of Sierra Seed Co. LLLP. Sierra’s accounts receivable department is facing payments “that are later than ever” on the heels of a Mexican winter growing season that slashed production with cold weather, rain, and sunshine-snuffing clouds. “When the growers lose an entire crop and don’t have product to market and they have labor and fertilizer costs, they don’t have the money to pay. Everything is tied up and they don’t have the resources to cover your debt.”
Hallman asked not to share specific numbers but the debt is staggering by any measure. She calmly noted that money management is her foremost responsibility at Sierra Seed, which has been operated by her family for 28 years. “We don’t have deep pockets and I can’t get large lines of credit. My receivables are all in Mexico,” she stressed. “We have to keep working with each other and encourage customers to manage your debt in an ethical manner. We work with people as long as they keep talking and communicating.”
With the application of frugal internal spending and watchful daily accounting, “I will pay my vendors by April 15,” Hallman said.
Despite challenges, Hallman said “We have grown and continue to grow and are able to expand and diversify with our greenhouse operation.” This greenhouse was opened in Imuris, Sonora, on Nov. 30, 2011. It is used to produce grafted seedlings for use by two major Mexican greenhouse growers. She is working with USDA to achieve phytosanitary permits to export these grafted seedlings to U.S. growers.
