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Plantings can’t keep up with demand:

It’s a seller’s market for Mexican vegetables

“It’s a busy time for our Mexican team and grower partners with large volumes of vegetables shipping daily from Rico Farms Facility in Rio Rico, AZ,” says Oscar Trujillo with Bridges Produce. The company is currently importing organic hard squash (Acorn, Butternut, Delicata, and Kabocha), summer squash, cucumbers, eggplant, Chile peppers, bell peppers, Tomatillos, and Roma tomatoes from three different growing regions in Mexico: Agricola Sorong in Hermosillo, Agricola Tago in Guaymas as well as Productores HRG in Culiacan.

Effect of storms
Most items are faced with a demand-exceeds-availability situation. This is especially true for cucumbers, summer squash, and eggplant. “The storms that hit during the fall season are showing their effect now as overall yields are slightly lower than normal for most if not all, growers,” commented Trujillo. Although there hasn’t been any frost so far, some slightly cooler weather has been slowing things down lately. “Cold temperatures this season, as well as pests, have caused some stress on zucchini and yellow squash plants. We are expecting the summer squash market to remain very difficult for the next two months. Although new crops are continuously being planted, we cannot keep up with demand. Something that seems to be the case throughout the industry.”


Yellow squash.

Very limited promotions
Limited supplies are reducing opportunities for ad lids. “Eggplant production for our farms is as planned, but overall demand is creating unusually high prices in the long term. As a result, we do not anticipate opportunities for promotions soon.” As for bell peppers, production is currently peaking, but slightly lower supplies industrywide have kept prices at a reasonably firm level. “We do not expect to see the aggressive low prices this season that we normally see.” While supplies of hard squash are strong and expected to continue through the winter months, overall supply and demand for the category are also making for a firm market. The only item that is abundant and promotable ongoing are hot peppers. “Strong supply and good quality make for a good time to discuss opportunities to switch from conventional merchandising to organic,” commented Trujillo.


Jalapeño peppers.

Outlook
The markets are expected to shift towards a buyer’s market as soon as the spring crops start in Hermosillo later in March. Each year, the availability of cucumber, zucchini, and yellow squash becomes more abundant around that time. “Meanwhile, it is going to be a long winter with limited availability on many items,” finished Trujillo.

For more information:
Oscar Trujillo
Bridges Produce
Tel.: (+1) 520-761-1977
oscar@bridgesproduce.com
www.bridgesproduce.com