FPAA: Mexico Beats Grape Estimate

On June 14 Sonora exported its 14 millionth box, setting the industry on track to surpass the preseason total estimate of 14,171,000.  Daily crossings at Nogales, Arizona are still robust at over 300,000 boxes a day and will continue for 2 to 3 weeks.  

“Larger berry size, young vineyards producing more than normal, and diversion of volume from Mexico to the USA are the likely explanations of the variance,” says John Pandol, Director of Special Projects for Pandol Brothers and Chairman of the Grape Division of the Nogales-based Fresh Produce Association of the Americas.   

Despite the extra 15% or 20% of volume, distributors report an orderly market.  Like the 2015 season, over 50% of the volume is harvested in a three-week period, and supermarket promotions were in place at the proper times. 

“Nothing frightens a seller more than talk of a short crop”, said John Pandol.  “The distributors want to set up ads and programs; growers resist because they feel ads are unnecessary at the lower volume. Distributors respond by saying something like ‘14 million grapes won’t sell themselves.’ It seems that this year we created the necessary demand at key times.” 

Currently, Pandol puts revised crop estimates for Sonora in the 16 to 18 million box range, and he anticipates a smooth transition to Central California.                   

About the Fresh Produce Association of the Americas: 

The FPAA is a nonprofit trade association headquartered in Nogales, Arizona, that represents over 120 U.S. member companies involved in growing, packing, sales and transportation of fresh fruits and vegetables grown in Mexico.  The FPAA leverages the efforts of private companies and partner-associations to increase the consumption of fresh fruits and vegetable from Mexico. 

Source: Fresh Produce Association of the Americas