U.S.: Revenue growth beats volume rise for Nogales produce imports - FreshFruitPortal.com

U.S.: Revenue growth beats volume rise for Nogales produce imports

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U.S.: Revenue growth beats volume rise for Nogales produce imports

Mexican fresh produce imports coming through the border port of Nogales hit US$3.2 billion in 2015-16, representing a year-on-year growth rate of 15%. roma-tomatoes

According to a recent report released by the Fresh Produce Association of the Americas (FPAA), imported volume rose 6% to reach 6.3 billion pounds.

To put these figures in context, Nogales, Arizona represents 17% of U.S. fresh produce imports from around the globe. 

Tomatoes led the way on both volume and revenue at rates of 8% and 21% respectively, maintaining what has been a steady growth rate of around one fifth or higher per year in terms of sales since 2011-12.

"Tomatoes have started a new growth phase, separating themselves from watermelons, the No. 2 item in Nogales. This is reflective of the continued growth in romas, and persisting strong demand for round reds," said FPAA president Lance Jungmeyer when the report was released at the group's 48th Nogales Produce Convention held earlier this month.

Discussing the report during the convention, Mikee Suarez of MAS Melons and Grapes and others pointed to an expected rise in table grape imports as more companies add varietals that perform well in the early part of the season.

"A few years ago we had only three or four white, or green, varieties of grapes with any volume in Mexico. Now, we see 10 or more varietals being grown, with interesting and new flavor profiles," Suarez said.

"These grapes also fill a great gap at the beginning of the Mexican grape season, when Chilean white grapes are leaving the market.

Grape volume was up 5% at 308.5 million pounds, and like in tomatoes revenue growth was higher still at 22% hitting US$390.8 million. This put the category ahead of squash, which was the strongest performer volume-wise in the top 10 with a growth rate of 40% to reach 744.8 million pounds.

Watermelons and cucumbers came in second and third for volume, while bell peppers moved up to second place in terms of revenue. 

The panel noted how the Nogales produce deal can no longer be characterized as having a January through April peak in volume.

In fact, the statistics bear out that there is an even stronger second peak in the season in late April through June. Both grapes and watermelons contribute to the second peak.

The following graph shows the evolution and changes in the peaks in the last five seasons:

fpaa-graph

While a lack of water and labor in western U.S. states is shifting volume to Mexico, there also is a clear trend of improvements in logistics and infrastructure at the Southwest border that should enable greater product flows through Nogales.

For instance, the new Unified Cargo Inspection Program in Nogales is bringing Mexican Customs officers to the U.S. side of the border to conduct inspections. Companies with the proper security clearances can take advantage of this program to reduce their crossing times from four to six hours during peak season to less than an hour.

ā€œThis new Customs program has the chance to elevate the Nogales deal with improved delivery times from the farm to the warehouse, and better use of trucking capacity to move even more fresh produce,ā€ Jungmeyer said.

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