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Government subsidies are also attracting new farmers, especially in tomatoes, while more established growers are using technology to increase production. Other commodities enjoying surges in demand include the aforementioned avocado, as well as berries, citrus (especially limes), mangos, and papaya. Fresh fruit exports from Mexico to the United States doubled from 2006 to 2010, and continue to rise an average of 10 percent annually, rising from $2.4 billion in 2010 to $3.8 billion in 2014.
Not all exports are grown in Mexico, however, as it serves as a conduit for trade from Central and South American countries as well. Other significant suppliers include Peru (avocados), Costa Rica (cassava and chayote), and the Dominican Republic (jicama).
Shipping & Logistics
Better transportation options, including construction of new roadways and bridges as well as state-of-the-art reefers, are also boosting trade volume. “There are better highways,” agrees Lopez, and most importantly for perishables, “there is better control of temperature.” Lopez has seen a number of improvements in truck shipments from three years ago, when Alamo first established a U.S. presence.
A big factor: the 1,300-foot high Baluarte Bridge, now connecting Sinaloa and Durango along the Durango Mazatlan highway. This span of steel shaves half a day or more off transport time from Sinaloa. Another factor is Mexico’s investment of $1 billion into Highway 15, the major North-South roadway. “This is a major, major improvement,” Jungmeyer points out.
Phytosanitary Requirements
Even after fruit and vegetables are grown, packed, and shipped to the border—there’s no guarantee these perishables will reach U.S. or Canadian retailers and ultimately consumers. Stringent pest and disease regulations, especially for fruit, limit availability of Hispanic mainlines and specialties alike. Currently, the USDA limits Mexican avocado imports to those grown in Michoacán, but the agency has proposed opening the door to imports from any Mexican state that can meet phytosanitary requirements for entry.
Volume from qualifying Jalisco growers would be enough to help maintain avocado quantities for better year-round supply. Jungmeyer says the FPAA has “commented in support of [the USDA’s] proposal,” and is anticipating approval of the measure. Other interested parties, such as industry powerhouse Calavo Growers, Inc., based in Santa Paula, CA, announced it would construct a 70,000-square-foot avocado packing plant in Guzmán, Jalisco to get a jump on production and shipping.
For mango exports, fruit flies remain the top concern impeding access to U.S. and Canadian markets. Shippers are required to run fruit through hot water baths (for 65 to 90 minutes, at temperatures above 115°F), then depending on ripeness, they are sent to either ripening rooms or direct to retailers.