Some Florida specialty growers see hope in NAFTA renegotiation
Unfortunately for Florida growers, the state’s winter growing season coincides with Mexico’s, causing head-to-head competition and oversupply, resulting in market prices that are sometimes below production costs.
On Monday, Trump told Canadian Prime Minister Justin Trudeau that the agreement’s impact on Canada-U.S. relations is “a much less severe situation than what’s taken place on the southern border.”
“We’re going to work with Mexico,” Trump said in widely reported remarks. “We’re going to make it a fair deal for both parties.”
Zhengfei Guan, assistant professor in the Food and Resource Economics Department at the University of Florida, said: “The fruit and vegetable industry has been facing tremendous pressure from imported commodities. This is particularly true for the tomato and strawberry industries."
When NAFTA was enacted the exchange rate was three pesos to the dollar. Now it’s close to 21. The cheaper the Mexican currency, the lower its cost to produce and ship.
“Tomatoes always seem to be thrown in the spotlight,” said Tony DiMare, vice president of Homestead-based DiMare Fresh, one of the state’s largest tomato growers. “This goes beyond tomatoes. A lot of other commodities are impacted … If Mexico starts producing any item, it is only a matter of time. You don’t have any limitation and control by volume, and that is how they are destroying and taking away market share unfairly.
“We are suffering the consequences of that. It further incentivizes Mexican producers to export as much as they can to get U.S. dollars back. Trump fully understands it,” DiMare said.
“The President has addressed it. He does recognize it,” DiMare said. “Whether we can get anything done remains to be seen.”
source: mypalmbeachpost.com
