The Texas Tropics

“A lot of produce always came in this direction, up the eastern coast of Mexico and from Central Mexico, but now you have west coast produce coming in faster and more frequently, and that makes a big difference,” Troppy says. La Frontera, he explains, is situated less than half a mile from the Progreso International Bridge. With much of the produce coming into Texas going to East Coast receivers, freight costs can be significantly lower than loads shipping from Nogales. “Being able to come straight here cuts anywhere from $1,500 to $2,500 off the cost of freight.”

Falling Fuel Prices
Dramatically lower fuel costs have also been a benefit. As fuel hit an all-time low, freight rates fell accordingly, allowing more businesses to take advantage of the savings and funnel their product through land ports in The Valley.

“The superhighway cut fuel costs by about $500 per trip to the East Coast,” observes Ruiz of Ruiz Sales. “I foresee more and more agricultural business being directed through The Valley; there will also be plenty of opportunities.”

A Robust Economy
Construction has also benefited from an uptick in the economy—not just houses and apartment complexes, but also office buildings, business parks, and other facilities. According to the Edinburg Economic Development Council, the city of Edinburg gave its official blessing to the construction of $35.8 million in new business facilities in 2014. And that’s just in Edinburg.

A year earlier, the city of Pharr invested about $11 million in 90 acres, with the goal of subdividing it into two- and three-acre lots. The Pharr Produce Park, as it is known, will be ideal for Mexican growers, given its convenient location just minutes from the Pharr international Bridge. Like other cities in The Valley, Pharr has experienced a surge in industrial development.

More Cold Storage
As more companies establish a presence in cities throughout The Valley, more cold storage facilities will follow to accommodate the growth.

Sweet Seasons, for example, has a spacious warehouse in Hidalgo and rents space to other suppliers. “It used to be that you needed your own warehouse to get started in the business,” Garcia says. “But renting space has made it easier for people to get started. At the end of the day, though, that can wind up costing more and make you less competitive.”

While the proliferation of businesses has been a catalyst for the number of cold storage facilities, it doesn’t necessarily translate into excess availability. According to Diaz of Fresh Imports, most places don’t have a waiting list but they are running at 75 percent capacity. “There’s some room, but no cold storages down here are empty or running at less than 50 percent occupied,” he says.