The Texas Tropics

What a difference a year makes—that’s the song they’re singing in the Rio Grande Valley these days.

We took an in-depth look at this Texas region last January and found the four-county area, which had been suffering from economic doldrums, was enjoying robust growth. Things have improved even more since last year, so read on to find out why, exploring this region’s increasing trade and status as an international produce hub.

Location, Location, Location
Location makes the Rio Grande Valley a major player in the produce industry. Over a third of all fruits and two-thirds of the vegetables consumed in the United States are imported from Mexico according to the U.S. Department of Agriculture (USDA), and many of these imports make their way from Mexico through Texas land ports.

Indeed, the Texas International Produce Association (TIPA) cites 59 percent of all produce imports from Mexico cross into the United States over the Pharr-Reynosa International Bridge.

The numbers are impressive: $3.4 billion in fresh and frozen produce was shipped from Mexico into the United States through Texas land ports in 2014. That’s about 172,000 truckloads of produce per year, a number expected to double over the next five years. This phenomenal surge to meet consumer demand for year-round fresh produce is a noble endeavor—not only does it provide fresh fruits and vegetables to an increasingly health-conscious nation, but it employs thousands and helps businesses throughout the industry thrive.

Produce is Booming
“The volume of fresh produce from Mexico through Texas ports is rising, and that’s a trend we see continuing,” confirms Bret Erickson, TIPA’s president, based in Mission, TX. “In The Valley, we’re in a perfect geographic location to provide both a domestic and imported supply of fresh produce.”

Robert Diaz, director of operations at Hidalgo-based Fresh Imports, agrees. He points out that many companies on the East and West Coasts receive their product from Mexico, but don’t maintain a presence in The Valley. This, of course, gives companies like his a leg up on the competition in terms of trend-watching and hot new commodities, as well as keeping the costs of doing business low.

“We’re able to be in tune and see what’s going on because we’re based here,” Diaz explains. “The Valley is growing, the economy is good, the cost of living and everything else is good. And the average salary is lower, so it’s cost effective. I don’t have to pay California salaries.”