AgNet DEMO

Category: Exports/Imports

  • Florida Farmer: It Needs to be Fair

    Almost a month after testifying before the U.S. International Trade Commission, Florida vegetable farmer Marie Bedner is optimistic about potential change to imports of cucumbers and squash flooding the domestic market.

    “I am optimistic. They’re listening to us. The fact that we had these hearings, the one back in August for the bell peppers and this one for the cucumbers and the squash, I am optimistic and hopeful that there will be some kind of relief for us,” Bedner said.

    Bedner was one of numerous farmers from Florida and Georgia who testified on April 8 that imports from countries like Mexico are hurting the domestic market.

    “I was glad I got to voice my opinion and then also my neighbor Dick Bowman was on the call, too. We were able to get our thoughts out there and especially dispute some of the other facts that were out there, like having hurricane damage that’s affecting our numbers and labor issues and other facts that are not true,” Bedner said. “I was very pleased with that aspect of it.”

    Ways to Help

    While the USITC is not expected to make a decision until December, Bedner already has ways that the government could help with this escalating problem.

    “It needs to be fair. It’s not a fair playing field at this point,” Bedner said. “Two of the (remedies) would be a volume control and price control. Those two triggers need to be put in place.”

    Both are factors in how imports are being dumped in the United States.

    Large quantities of imported produce, such as peppers, cucumbers or anything else, are brought into the country with no set price. They are imported to New York, for example, and the buyer sets his own price for what they’re willing to pay. Mexico is willing to sell for whatever it can get because it is backed by government subsidies.

    “We can’t compete with that. We need a minimum to get our return back on our boxes. We’re just not able to do that. It’s an ongoing problem,” said Bedner, who added that it happens weekly.

    The more the problem continues, the more likely Southeast farmers will not be able to compete and be forced to retire prematurely.

    “That’s something that we’ve said before that we’re going to be relying on a third-world country for our produce, which is sad when right where we are in Palm Beach County, we were the winter vegetable capital of the world before NAFTA. We have great land here that can grow to provide for all of the U.S,” Bedner said.

  • Imports Continue to Challenge Cucumber Market

    Florida and Georgia remain two of the leading cucumber-producing states in the country. Along with Michigan and North Carolina, they harvest more than 60% of the nation’s fresh market acres, according to USDA Vegetable and Pulses April Outlook.

    However, imports continue to challenge the two states for market supremacy, accounting for more than three-fourths of domestic availability, up from less than one-half in 2000.

    Imports of fresh cucumbers totaled 2.19 billion pounds in 2020 and are projected to increase in 2021 amid the pandemic. Mexico remains the leading source of imported cucumbers, averaging 80% of the annual volume from 2018-20. Canada provided 16% of import volume during that same timeframe.

    Imports accounted for 87% of domestic availability, up from 61% in 2010. From 2015 to 2019, cucumber imports increased by 5% every year.

    Greenhouse production accounts for 11% of the domestic cucumber production, up from 10% in 2014 and 3% in 2009. Greenhouse import share, which was 15% during 2010-12, is slowly increasing.

    Cucumbers and squash were the source of an investigation by the U.S. International Trade Commission. The hearing centered on the impact that imports are having on the domestic industry.

  • Georgia Produce Farmer: (Mexico) Doesn’t Care About Costs

    Flickr photo shows a semi-truck.

    What should be an advantage to Southeast producers against Mexico is anything but, believes Georgia vegetable farmer Dick Minor.

    Freight prices continue to spike, which has only worsened since gas prices continue to increase. But that doesn’t matter to produce originating out of Mexico, Minor added.

    “High freight rates are our friend or should be technically our friend from a business point because Mexico’s got to transport it further than we’ve got to transport it. Every time freight goes up, that should help us, give us a competitive advantage,” Minor said. “The only problem is, they’re still shipping just as much product regardless of freight costs. That tells us, they don’t care. I know for a fact they’ve got boxes into New York for $1 a box net back to them. That doesn’t even pay for the box. They’re just trying to move product.

    “If they’re making real business decisions, when freight got really high like it did in ’11, ’12, and ’13 when we had $3.50 gasoline, they should have been shut down. But no, they still shipped product regardless of freight costs.”

    Freight was one of several points of contention during the most recent U.S. International Trade Commission hearing that centered on the impact of squash and cucumber imports on the Southeast domestic market.

    Increased Freight Costs

    Increased input costs are a challenge for Southeast producers. Freight is no exception. It was established during the hearing that between 2015 and 2020, freight costs have at least doubled. There are fewer drivers and more regulations on the road. Drivers must be shut down for eight hours.

    “Everything’s going up,” Florida farmer Sam Accursio said during the hearing. “Insurance is going up tremendously for these independent operators. Fuel has been fluctuating back and forth, but their biggest expense is tires and mechanics insurance. Their biggest complaint is insurance and tags.”

    Those same input costs are not swaying the intentions of Mexican producers who are focused on the U.S. markets. Whether it is strawberries, blueberries, squash, cucumbers, tomatoes, imports are increasing exponentially. Freight is just another factor that doesn’t seem to matter to Mexican growers.

    “The cheaper you can get the freight on a delivered price, then you can make more money,” added Georgia producer Bill Brim during the hearing. “If we take it on an open market and we ship it up there and have $6,000 in freight and they pay you $3 a pack, then you’ve lost your you know what.”

  • Florida Farmer: It’s Going to Take a Movement

    Two farmers. Two states. One message: The government needs to do more to support the American farmer.

    In an era of increasing costs and imports that continue to flood the marketplace, more and more farmers express concern about the decreasing role American farms have in feeding our country.

    “Florida specialty crops is really getting the raw end of the deal here. There are people that are making lots of money off exporting. It’s not us,” said Florida strawberry producer Dustin Grooms. “Our berries are meant to be eaten fresh right here locally and around the U.S. We can’t compete with (Mexico’s) labor. That’s one of the main things is their labor. We just can not compete with their low prices. They know that. Every time it seems that we’re starting to get somewhere with the government, we take one step forward and about 10 steps backwards. It’s a losing battle.”

    Labor Battle

    Labor is at the forefront of this battle and one that Mexico is winning. It was established during the USITC hearing on cucumbers and squash that labor rates in Mexico were just shy of $12 per day; which is comparable or even less than what some American farmers have to pay for workers per hour.

    “I just don’t understand how in America we expect the farmer to grow things under certain environmental regulations and labor regulations and that comes with a cost. If you’re going to regulate the American farmer then you’ve got to protect them against countries that don’t have similar regulations,” said Georgia blueberry farmer Russ Goodman. “If nothing’s done about it, and we’re already starting to feel the repercussions in rural communities across the country, it’s just going to get worse.”

    Increasing Frustration

    Goodman is especially frustrated about the report that says the Biden Administration plans to manage the immigration crisis by asking private U.S. companies to invest in Mexico and Central America.

    “I hope at some point in time our government will recognize it’s a national security issue,” Goodman said. “If you take anybody that has a 90% advantage over something that is 40% of their costs of doing business, they’re going to put their competitor out of business. The sad thing is that competition comes in the form of the American family farm. I just don’t know what the future holds. It’s absolutely amazing to me that our country is not trying to do something to protect farmers.”

    Food security and food awareness need to be heightened in this country. Consumers need to be made aware of how and where they get their food.

    “We need the support of the government. We also need the support of the American people to buy our products and not foreign imports,” Grooms said. “That’s what it’s going to take, a movement.”

  • Labor Shortage? Not According to Southeast Farmers, Industry Leaders

    One of the focal points of the U.S. International Trade Commission hearing on the impact imports of cucumbers and squash have on the domestic industry is labor; how much it costs and the availability of it.

    Lance Jungmeyer, president of the Fresh Produce Association of Americas, insists the lack of workers has led to a quality issue with produce grown in the Southeast.

    “Without adequate labor, Southeast growers are at a severe disadvantage for how they grow and pack. Their products result in a distinct quality disadvantage that U.S. retail customers clearly recognize,” Jungmeyer said.

    Not So Fast

    But farmers and industry leaders in Georgia and Florida scoff at the notion that there is a problem with worker availability.

    “I would dispute that,” said Florida farmer Marie Bedner. “We have the same people that return year after year. We invested in our farming future and built a state-of-the-art 400-bed facility for these employees.”

    Mike Joyner, president of the Florida Fruit and Vegetable Association (FFVA), said Florida brought in 39,000 H-2A workers last year.

    “To the labor issue, I’m concerned that there’s a theme that we have a problem and I’m just not seeing it,” Joyner said.

    Same for Georgia

    The same is true in Georgia as well.

    “Those growers that are using H-2A, we do not have a labor shortage. Generally, workers are using some domestic help, or they’re using H-2A workers. Labor shortage is not a problem,” said Charles Hall, executive director of the Georgia Fruit and Vegetable Growers Association.

    Last August, Veronica Nigh, an economist with American Farm Bureau Federation, said H-2A applications were processed effectively and in a timely manner even during the early onset of COVID-19. She noted that Florida was the largest user of the H-2A program during the year’s first three quarters. It listed 28,005 certified positions. Georgia listed a little more than 23,000 certified positions.

    What Southeast producers may be most concerned with is Mexico dumping produce, or exporting a product at a price below the price charged in the country of origin.

    “Our growers are paying well above minimum wage by the time you add in all the travel, housing. That labor is costing $15, $16 an hour,” said Gene McAvoy, University of Florida/IFAS Regional Vegetable Extension Agent IV Emeritus. “If you look at the cost of labor being about 30% of our cost of production and the break-even price on squash is $8.50 a box, take $3 off of it, and that’s $5.50. It’s still hard to see how Mexico could put squash into the U.S. market in recent weeks at $3.98 a box. There’s just no way it could be done.

    “Tractors (there) cost as much as they do in the United States. Boxes cost as much as they do in the United States. Chemicals cost as much as they do in the United States. Even if you subtract labor, there’s no way that product is coming into the market without dumping occurring.”

  • Mexico Tops List of Importing Countries

    Imports of fresh fruits and vegetables continue to flood the U.S. markets and it is only increasing. According to the USDA Economic Research Service, Mexico was the top importer of fresh or frozen fruits as well as fresh or frozen vegetables.

    Its fruit imports tallied $3.21 billion from October 2020 to February 2021. Its an increase from the $3.03 billion it recorded the prior year. February’s data indicates $746 million compared to $693 million in February 2020.

    In fresh or frozen vegetables, Mexico’s three-month output from October 2020 to February 2020 was $3.8 billion, compared to $3.58 billion the prior year.

    The top 10 importers of fresh and frozen fruits include: Mexico, Peru, Chile, Guatemala, Costa Rica, Ecuador, Canada, Honduras, Colombia and Brazil. The world total for the October to February timeframe was $6.82 billion, an increase from the $6.5 billion the prior year.

    The top 10 importers of fresh and frozen vegetables include: Mexico, Canada, European Union-27, Peru, Guatemala, China, Costa Rica, Ecuador, Honduras and the Dominican Republic. The world total for the October to February timeframe was $5.73 billion, compared to $5.44 billion.

  • Market Manipulation: Vegetable Farmers Vulnerable to Increasing Imports

    United States of America and Mexico waving flag

    The vegetable and specialty crop sector is vulnerable to market manipulation. That makes what Mexico is accomplishing through its increased imports of cucumbers and squash dangerous for the future of the American farmer, claims Georgia farmer Dick Minor.

    “In 2018, the combined acres planted into fresh market cucumbers of the top five producing states was less than 30,000 acres,” Minor said. “A simple 10% increase in production is enough to totally devastate the marketing window and eliminate any chance of profitability.

    “Mexico, over the last 10 years has dramatically increased production of cucumbers and squash. They have expanded production with no regard for other production areas or without regard for probability of making a profit.”

    Competitive Disadvantage

    Minor produces eight different vegetable crops, which include cucumbers and zucchini squash. It is very common to produce both crops. But it’s also becoming increasing challenging to produce both crops when compared to unfair competition against Mexico.

    “The last 34 years have presented many challenges to our vegetable farming operations. However, none has presented a threat near the scale of the dramatic increase in low-cost Mexican vegetable imports,” Minor said.

    Many factors led to this unfair competitive advantage, as claimed by Minor and other Florida and Georgia farmers during Thursday’s U.S. International Trade Commission hearing. Labor tops the list. Mexico can pay its workers a small fraction of what farmers like Minor pay theirs.

    “Mexico is able to offset its disadvantage in location with some of the most abundant and cheapest labor costs anywhere in the world,” Minor said.

    Government subsidies also contribute to Mexico’s workforce growing more and more produce under protected acreage. Mexico can import its produce 12 months out of the year, which directly impacts marketing windows for Southeastern farmers.

    “Florida growers understand that when Georgia starts they need to be finished harvesting and they plant accordingly. Georgia growers understand that North Carolina will start harvesting in late June, and when we plant, we also plant accordingly. Each growing area understands its window,” Minor said.. The factors that influence when and how much product they can produce and still maintain the probablilty of still maintaining a profit.”

    Supply is the main factor that affects daily prices. Fresh produce needs to be sold and sent to markets as soon as it is harvested. Markets are volatile. They can surge quickly or drop instantly, as they are sensitive to change and planted acres.

    “Today, low costs Mexican production is threatening every grower in the United States,” Minor said.

  • Secretary of Ag Discusses Timely Issues Facing Southeast Vegetable Producers

    Tom Vilsack

    Two issues at the forefront of vegetable and specialty crop producers in the Southeast is H-2A and imports from countries like Mexico. Secretary of Agriculture Tom Vilsack discussed both issues and sympathizes with growers in the Southeast.

    “We’re looking at ways in which we’re able to provide some help and assistance to them under the COVID relief packages that were not specifically targeted to them. No. 2, in terms of labor, no question, serious issues, serious challenges that agriculture faces,” Vilsack said. “That’s why I’m certainly happy to see the House of Representatives pass the Farmer Worker Modernization Act, which essentially creates an avenue for a stable, mature and predictable workforce that makes improvements to the H-2A program that makes it easier for farmers to have that stable workforce, dependable workforce. At the same time, it allows those workers the opportunity to basically come out from the shadows.”

    Vilsack said he hopes the Senate will take the legislation up, noting it is a bi-partisan issue.

    “These are the workers that folks in the Southeast are depending upon. These are folks that are essentially responsible for picking a lot of our fruits and vegetables in a number of different areas across the country. It just makes sense that farmers have that stable and secure workforce,” Vilsack added.

    Increasing Imports

    As for imports, it’s an issue that seems to worsen daily. Southeast farmers accuse Mexico of dumping produce and creating a competitive disadvantage that growers can’t compete with.

    “On the issue of imports, look, it’s always a delicate balance. We want to make sure that we are able to ensure that our producers have market opportunities. But at the same time, part of what we do, obviously, is to export. We want to make sure that there’s a balance relationship there,” Vilsack said.

  • FFVA Issues Statement Following USITC Hearing on Cucumbers, Squash

    The Florida Fruit and Vegetable Association (FFVA) issued a statement following Thursday’s U.S. International Trade Commission (ITC) hearing regarding the impact of imports on the Southeast domestic cucumber and squash crops. The statement read:

    “Today’s hearing was a positive development in our ongoing efforts to secure trade relief for Florida growers. For decades, unfair trade practices from Mexico and other foreign sources have caused immense harm to produce growers in Florida, including significant lost sales and market share, unsustainably low unfair prices, and shuttered family farms.

    “Trade relief is desperately needed, not only for our cucumber and squash growers, but for our bell pepper, strawberry, blueberry, and other Florida produce sectors that are also facing harmful impacts and a highly uncertain future due to unfair imports. We continue to see imports from Mexico crippling growers of more than 20 other specialty crops in Florida.

    “We commend the International Trade Commission for working to help solve this longstanding and growing threat to the Southeast produce industry. Effective, swift relief is needed to give our Florida produce growers a future and ensure that American families are not dependent on foreign imports for their produce supplies during the winter and spring months of the year.”

  • Florida Farmer: We Need Relief and We Need it Now

    Florida farmer Marie Bedner said it best: “We need relief, and we need it now.”

    The Florida farmer testified on Thursday during the U.S. International Trade Commission hearing regarding the impact that imports of squash and cucumbers are having on the domestic industry.

    Dumping Produce

    Bedner cited Mexico’s low labor costs and government subsidies for how Mexico can sell its produce for a fraction of what growers like Bedner need. One of her biggest gripes, though, is the act of dumping produce.

    “Our sales team has been told by one of the large buyers that truckloads of Mexican cucumbers will be delivered to his dock during our season with an open ticket. This means that a buyer can pay whatever price they want per box,” Bedner said. “Our operation cost per box of cucumbers is substantially more than what it is for growers in Mexico. A box of our produce has a set price that we simply cannot drop below because of what our expenses are to produce that box. Not surprisingly, the buyer stops purchasing American grown produce from us and takes that Mexican grown produce at a fraction of the cost of our load.

    “It’s a classic case of dumping that occurs frequently, and it’s getting much, more worse.”

    It’s gotten worse because nothing has been done to curtail the practice. Hopefully, for Florida and Georgia producers that will soon change. It needs to if American agriculture is going to survive.

    “Their costs to produce that box of produce is significantly less than ours. This puts us at an extreme disadvantage on a playing field that doesn’t come close to being level,” Bedner said. “The future of farming in our area in South Florida is very bleak. Up and down the road from our location, growers have made the decision to sell their land because they simply can’t compete.”