IAFP to Help Navigate Produce Trade With Mexico
International Fresh Produce Association (IFPA) will bring together retailers, importers, exporters, producers and business solution providers from across the produce supply chain in Guadalajara, Mexico, on May 14-15. The Mexico Conference connects decision-makers with industry experts and includes an expo to showcase industry products and innovations.
Among the timely topics to be discussed include President Donald Trump's ever-changing tariffs on goods imported from Mexico. Most fruits and vegetables imported by the United States come from Mexico — about $20 billion worth annually, according to the U.S. Department of Agriculture.
[RELATED: Are Americans Ready for Impact of Trump's Tariffs?]
As reported by The Wall Street Journal, the nature of Trump’s approach to trade is becoming a day-to-day factor for businesses that rely on cross-border commerce, especially for food retailers. American consumers expect to see fresh produce in stores year-round, and for avocados, broccoli, peppers and mangos, that means buying from Mexico and South American countries.
According to the news outlet, retailers like Kroger are attempting to shift their purchasing of produce and other products to avoid the Trump administration’s tariffs, as well as to ward off further price increases in its stores. Fresh Del Monte Produce said in February that it’s prepared to alter its supply chains to cope with new tariffs, although expanding the countries from which the company sources avocados, bananas and pineapples could take time.
During Costco’s March 6 second-quarter earnings call, Ron Vachris, the Issaquah, Wash.-based company’s president and CEO, acknowledged some of the headwinds from foreign exchange, saying that “it is difficult to predict the impact of tariffs, but our team remains agile and our goal will be to minimize the impact of related cost increases to our members.” He noted that about a third of Costco’s U.S. sales are from items imported from other countries, and that fewer than half of those are items coming from China, Mexico and Canada.
In addition to talking about trade, IFPA’s two-day conference will feature Paulina Gross, of Euromonitor International, who will share the key global trends affecting fresh producers in the Mexican market. These insights will be informed by Euromonitor International’s global consumer trends study, which provides strategy guidance for international businesses.
“The Mexican produce industry plays an incredibly important role domestically and across the entire produce industry,” said IFPA VP of Global Relations Jessica Keller. “From food safety, to innovation and tariffs, to consumer trends, there are a lot of moving targets that are critical to the success of those looking to do business in Mexico and the rest of the region. Anyone looking to navigate these trade complexities and optimize their market strategies will be energized by the expertise and connections they will make at this year’s Mexico Conference.”
As the largest and most diverse association representing the entire fresh produce and floral supply chain, Newark, Del.-based IFPA is dedicated to advocating for policies that reduce regulatory burdens, enhance nutrition programs and improve the economic viability of fresh produce businesses.
