This is a chronicle of guests by Craig Slate, President and CEO of Sunfed BB #: 150037:
The prices on fresh products will lead to prices and shortages of fresh and processed fruits and vegetables.
The cost of these prices will ultimately be transmitted to American consumers, while farmers will plant less due to an increased financial risk. Agriculture is a high -risk and low margin company that cannot absorb these additional costs.
Consequently, producers and shipments will adopt additional expenses or, in some cases, will choose not to plant at all, resulting in direct reduction in supply. The impact will not be limited to fresh products – prices for all forms of fruits and vegetables, including canned and frozen options, will also increase.
The figures do not lie
In 2023, the United States imported a value of $ 10.86 billion in edible fruit and nuts and $ 9.52 billion in Mexico vegetables (1). In 2021, the total value of the American farm for fruit, trees and vegetables was $ 49 billion, broken down as $ 20 billion in fruit and $ 19 billion in vegetables (2).
This means that, combined, American and Mexican, fruits, trees and vegetables represent around 70 billion dollars of agricultural value – Mexico representing around 30% of this total. When taking nuts into account, the share of Mexico increases to around 33%.
In simple terms, 30% of us and Mexican products will be subject to higher costs and reduced offer due to prices. Given that the fresh prices of fruits and vegetables are mainly motivated by supply and demand, the cost of American cultivated products will also increase.
Since the United States and Mexico provide the vast majority of fresh and processed products to American consumers, everyone – from family to restaurants – will be financially impacting.
Why the prices on products have no sense
I believe that most of the producers and shipping of fresh products support the price strategy of the United States.
However, including fresh products in the battle with Mexico and Canada is illogical.
• Mexico agricultural exports to the United States ($ 49 billion) represents only 10% of all American imports from Mexico (3).
• Canada exports to the United States totaled $ 439.6 billion in 2023, with vegetables and related products representing only $ 6.08 billion, or only 1.38% of Canada exports to the United States (3).
Frankly, Mexico and Canada are unlikely to be considerably affected by prices on fresh products. Their concentration in negotiations will be on their main export categories, not minors such as fruits and vegetables.
However, the use of products as a negotiation currency will have an immediate and serious impact on health, food access and grocery bills for American consumers.
As a American, I support efforts to eliminate illegal drugs that harm public health. But I do not claim to harm all Americans – especially those who make good health decisions for themselves and their families – making fresh food more expensive.
Reshorate fresh products? Impossible
If the objective of these prices is to encourage the relocation of the production of fresh products in the United States, it simply cannot be done.
The United States did not:
• Sufficient land for the expansion of fresh products on a large scale
• Adequate water supply for increased irrigation
• Enough labor to support new farms
• The right climate all year round to support the production of key articles for fresh products
California alone produces almost 70% of all American fruits and vegetables, followed by Washington (8%) and Florida (6.5%) – 83.5% of total American production (4). The reason why California dominates is climate stability.
Agriculture is already difficult due to unpredictable weather conditions; The products must be cultivated when the conditions are suitable, which changes throughout the year.
You cannot grow watermelons in the United States during the winter, and you cannot grow them in the same place in the United States in the spring, summer and fall. Production is constantly moving to the place where time is logical.
Although agriculture of the controlled environment (EC) has succeeded in Canada, it requires investment in massive capital and is expensive to operate. The displacement of large parts of fresh American products to agriculture of this would take years, would require substantial infrastructure and would cause prices considerably higher for consumers.
Instead of focusing on reshaping, the emphasis should be put on farmers by meeting us by meeting their most urgent needs:
• Access to water
• Slides of agricultural labor
• Reduce labor costs
• fewer regulatory charges
Meanwhile, uncertainty surrounding these prices already requires buyers in Canada to cancel contracts for cultivated American products, more injuring American farmers. This will push more American farmers to bankruptcy and reduce the internal supply.
Act now – before it’s too late
If you have read so far, thank you! Now, I urge you to pass the word – to your family, to your friends and, above all, to Washington, DC contact your member of the Congress. Use social media.
A disaster arrives in the alley of products if fresh products are included in upcoming prices in Mexico and Canada. The American consumer needs a sculpture for fresh products – and we need it before April 2.
Farmers are currently making planting decisions for this summer. Without confidence that their cultures will not be subject to prices, some will plant less – or not at all. If these prices are implemented, the cost for American grocery buyers will be nearly $ 20 billion.
• Based on retail sales 2024 billion dollars (5), a price increase of 20% on fresh products means that consumers will pay approximately $ 18.4 billion more for their grocery store.
• And this does not even include additional costs from the reduced offer, the price increases from the restaurant or increased prices for processed products.
Help protect affordable and healthy foods
Please help save American consumers to rush food costs. Contact the congress and the White House now and ask for fresh products from the prices offered on Mexico and Canada.
Time runs out. Act today.
Sources:
(1) Usimperdata.com
(2) freshfruitportal.com
(3) TRADINGECONOMICS.com
(4) GrowingProduce.com
(5) Retailwire.com (Via-Supermarket News)
