Mexico’s orange producers face difficult season
Infoagro Exhibition México postponed until July 1-3
The COVID-19 pandemic has led the organisers of the first Infoagro Exhibition Mexico to postpone the event to guarantee the health of exhibitors and visitors. Originally scheduled to take place from May 6 to 8, it will now be held from July 1 to 3, 2020, when it is hoped the situation will have improved enough to allow the first international fair for intensive agriculture and auxiliary industry in Latin America to go ahead.
US dependent on Mexican citrus
Consumption of fresh citrus on the US market totalled 3.9 million tons in 2018. Oranges only account for 47% of total citrus consumption and soft citrus represents only 19%. Instead, market share is higher than in the EU for lime (13%), lemon (13%) and grapefruit (8%). In 2017, US imports of citrus totalled 944,000 tons, having climbed steadily from 580,000 in 2008. Around 43% of imported citrus to the US is sourced from neighbouring Mexico, with the next largest supplier being Chile (29%), followed by South Africa (7.7%), Peru (6%) and Morocco (5.4%).
US imposes 17.5% tariff on Mexican tomatoes
It’s not just Chinese imports that are subject to US tariff hikes. As of Tuesday 7th May, the US has imposed a 17.5% tariff on Mexican tomato imports. The move comes following unsuccessful negotiations to renew a 2013 agreement that suspended a US anti-dumping investigation. The US Commerce Department said in February that the US would halt the investigation as long as Mexican producers sold their tomatoes above a pre-set price.
US to exit tomato trade agreement with Mexico
Mexico’s citrus forecast to rise in 2018/19
Mexico’s citrus crop is production in Mexico is expected to rise in 2018/19, thanks to excellent weather conditions and improved productivity. The country’s orange and lime harvest is predicted to be higher, with total orange output reaching 4.6 million tons, according to USDA data. Exports of oranges for processing have also increased, due to Florida’s drop in orange output. Planted area of oranges will remain fairly stable at 341,000 hectares. Productivity is up to around 14.3 tons per hectare, from 13.9 tons per hectare in 2017/18, which was affected by weather issues.
Mexico’s citrus crop up 3% in 2018/19
Citrus production in Mexico is expected to increase in 2018/19 thanks to optimal weather conditions and improved yields. Fresh orange and lime production is forecast to continue to grow. Due to the decrease in orange production in Florida, fresh fruit exports to the US for processing from the north of Mexico have increased. Orange producers indicate a strong demand from processors due to attractive orange juice future prices.
Mexico’s berry exports reach US$2.1 billion
Mexican tomato production forecast at 3.4 million tons in 2018/19 campaign
Mexico’s fresh tomato production for 2018/19 is expected to be 3.4 million metric tons, assuming favourable weather conditions. The production area has been declining in recent times, but yields have increased due to a shift from open-field planting to protected agriculture areas. Protected agriculture is thriving in Mexico as producers become aware of the benefits in production, quality, pest control, and reduced risk exposure to climate change. The tomato planted area for 2018/19 is forecast at 49,600 hectares, which is slightly lower than in 2017/18.
Slowdown of expansion of Mexican protected agriculture
Mexico’s tomato production is expected to remain stable in 2018/19 at 3.4 million tons. However, there has been a shift in recent years from open field production to higher-yielding protected agriculture. Nevertheless, despite growing rapidly over the past few years to 15,200 ha in 2016/17, Mexico’s greenhouse tomato production has begun to slow, with less than 1,000 ha added last year.