Thursday, December 4, 2008

Rio Grande Valley a key point for Ecuador, Peru

By Andy Nelson

The Rio Grande Valley continues to be a popular entry point for tropical imports — but not all of them originate from Mexico.

FoodSource Inc., Edinburg, Texas, a tropicals importer owned by C.H. Robinson Worldwide Inc., Minneapolis, expects to bring in organic and conventionally grown mangoes, lemons, coconuts and Persian and key limes this season, said Lee Moyer, sales manager. Some items, such as limes, the company supplies year-round, Moyer said. Others, including mangoes, are sourced from different countries at different times.

FoodSource began bringing in mangoes from Ecuador in late October, about the time it was beginning to phase out its Brazilian deal. Moyer reported good quality on early shipments.

Production from Ecuador is expected to be down 30-35% because of hurricane-related damage and the weak dollar, which is steering more fruit away from the U.S. and toward Europe, Moyer said. Ecuadorian fruit started at $7-8 but by the end of October had slipped to $5-6, Moyer said. “When it gets to $5, we can start promoting,” Moyer said. “No one wants the price to go down, but when it does, we can generate promotions, and promotions generate movement.” Ecuadorian fruit ships into December, when Peru begins to take over the deal. Peruvian product will likely begin shipping about Dec. 15, Moyer said.

Peru also is expected to be down — by as much as 50%, based on reports Moyer has heard. That should make demand for Peruvian mangoes even stronger, Moyer said. “Christmas and New Year’s is always a bigger time of year for us,” he said.

Mexican mangoes should begin shipping in February and wrap up in August, Moyer said. FoodSource’s organic mango deal is limited to Mexico, which ships the fruit about six months out of the year, Moyer said. “I don’t know of a lot of offshore organic mangoes,” he said.

Mexican limes shipping in mid-fall, meanwhile, were suffering the effects of a very wet and at times boiling summer, Moyer said. “When it’s raining and 115 (degrees), it’s hard on citrus,” he said. Fortunately, there are four Mexican lime crops that typically ship every year, and a new crop was set to begin in mid- to late-November, with better quality expected, Moyer said. “The fall/winter crop is more green, more solid,” he said. “It’s a better lime.” FoodSource is projecting “adequate volumes” for late fall and early winter shipments, Moyer said. The fall/winter crop should ship through about Feb. 15, he predicted.

Frontera Produce Ltd., Edinburg, began golden pineapple production in Mexico in mid-October and expects steady volumes through June, said Ken Nabal, vice president of sales and logistics. Growing in Mexico has proven to be a boon for Frontera and its customers, Nabal said. “Our fruit is harvested at its ripest stage and gold color, pick-packed and shipped to our customers in three days,” he said. “This is a distinct advantage to offshore product that has to travel much farther distances.” Frontera also ships mangoes from Mexico, beginning with ataulfos in late February, and Mexican papayas on a mixer basis, Nabal said.

The Packer, Dec 4, 2008

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