East Coast Snow Slows Organic Veg Demand from Mexico

In January, organic vegetable supplies from Mexico were ramping up and demand was solid, with strong markets across the board.

“And then we had the perfect storm,” said Oscar Trujillo, who is stationed at Bridges Organic Produce's office in Nogales, AZ. Snowstorms that have paralyzed the East Coast over the last week have also suspended orders and hampered logistics. “We were doing about 10 loads a day—sometimes a little more with good demand. Now it’s a buyers’ market across the board,” he said.

Oscar Trujillo, Bridges Produce

The blizzard closed Hunts Point Market in New York overnight on February 1 for one of only a handful of times in the past few decades. In addition, produce haulers that had made deliveries in the East over the last week were having trouble getting back because of the weather. Trujillo was quick to point out that he expects this to be a short-term situation, as buyers are looking for deals beyond the current supply/demand situation. “I think it’s going to look a lot different two to three weeks from now,” he said.

Hunts Point Market closed overnight on Febrary 1, a rare occurrence for the historical market

Trujillo recounted that prior to the storm both supply and demand for organic bell peppers, summer squash, hard shell winter squash, eggplant, and the other cooking vegetables that Mexico specializes in were on the rise. In general, he said year-over-year sales for all the organic veggies continue to climb. “We increase our acreage every year, and the demand is there.”

The increase in home-cooking has given a boost to organic vegetable sales as the category is mostly sold through retail. On the other hand, Trujillo noted that foodservice buyers could traditionally offer an outlet if you happened to be long on product on a particular day. “It was a nice safety net if you needed it,” he said, adding that that outlet is not available currently.

“We increase our acreage every year, and the demand is there.” – Oscar Trujillo

Alex Leon, who handles organic vegetables for Bernardi & Associates Inc. from Nogales, made the same observation about the winter weather. “The snowstorm on the East Coast has hurt the deal,” he said earlier this week. “We had good volume, and up until now, we have had good markets. But the feeling is that has changed. Demand is down, and the prices are going lower on Romas, chili peppers, bell peppers. ... Most items are headed down.”

Bridges Produce Delicata squash

Leon did point out there is still good demand on European cucumbers and the smaller Persian cucumbers. “I really don’t know why, but demand is up on those two items,” he said.

Weather has been warming up in the two Mexican states—Sonora and Sinaloa—that provide most of the winter vegetables this time of year, so supplies should also be increasing throughout February, Leon said.

Sellers of organic vegetables from Mexico this winter have noticed the same trend toward the increased popularity of packaged produce that has been on the uptick over this entire year of coronavirus-inspired changes.  “Most buyers used to be big fans of bulk sales on organics,” Leon said. “But this year they want everything in a package or a clamshell.”

Marco Serrano, Fresh Farms

Marco Serrano of Fresh Farms, which has its offices in Rio Rico, AZ, could only speak to organic squash because that is the only organic category his company handles. He had not yet felt the effects of the East Coast storms on sales. “Right now, we have normal supplies and the same business we usually have. The market is pretty good on organic zucchini and organic yellows. I’m quoting $20-$28.”

“Most buyers used to be big fans of bulk sales on organics, but this year they want everything in a package or a clamshell.” -Alex Leon

Serrano admitted he is not a good gauge of the organic market because he is limited to just a couple of items and sales to his longtime customers.  The organic squash he is selling is grown in the northern part of Mexico near Hermosillo, which gives him a freight advantage getting it to the border. Fresh Farms, he said, has tried other organic vegetables, but he said it is difficult to compete if you don’t have a full line.