An Analysis of Mexican Vegetable-Production and Marketing Potential to Supply U.S. Markets

Abstract

Mexican vegetable production and vegetable exports to the United States are affected by climate, hand-labor costs, transportation capabilities and economic factors. Low-temperature-induced seasonality of vegetable supply in the United States increases the price of warm-season vegetables during the winter. This results in the formation of "marketing windows" with optimum prices for these vegetables. Mexico exports the most vegetables during these "marketing windows". This is the basis for Mexico's success as a major fresh vegetable supplier to U.S. markets. Mexico is also affected by low temperature but to a lesser extent than the United States. Genetic resistance to chilling injury in vegetable cultivars could be helpful for early-winter Mexican production. Inexpensive and plentiful hand labor decreases the cost of production and contributes to Mexico's competitive strength in the U.S. markets. Transportation feasibility favors Mexican vegetable exports over other production areas in Central or South America. Economic factors affect the trends of Mexican vegetable exports by affecting the profitability of exports and creating an atmosphere of price uncertainty among Mexican vegetable producers.