New Study Shows Surge of Mexican Produce into the U.S. Continuing

Posted by Frank Giles|September 2, 2021

In late August, the Florida Department of Agriculture and Consumer Services (FDACS) released a study showing the continuing damaging impact Mexican agricultural imports into the U.S. market are having. The report, prepared by the agency’s Division of Marketing and Development, showed a 10% to 20% loss in annual sales of Florida seasonal produce due to expanded Mexican imports. The economic impact resulted in an extraordinary $1.99 to $3.99 loss. This equates to between 17,870 to 35,741 jobs lost in Florida.

The 84-page report joins a long list of previous studies showing the decades-long uneven trade relationship between Mexico and Sunshine State producers that began with NAFTA and now the USMCA trade agreements.

Some key findings include:

Between 2000-2020, 580% increase of specialty crop imports from Mexico.
$23.3 billion gap currently exists between Mexican ag-exports and Florida’s total ag value.
Over the last five years, the value of all commodities imported from Mexico grew by 95% between 2015-2020 ($22.9 billion – $34.2 billion). For specialty crops, the value of imports from Mexico grew 34.2% in the last 5 years ($10.47 billion – $15.71 billion).
Florida’s farmers have 80% to 92% domestic market share for many specialty crop commodities during November to April growing season. Any unfair competitive disadvantages during this period disproportionally affects Florida.

Florida’s market share (volume) declined in each of the four primary commodities examined between 2000-2020:

Bell Peppers – Florida lost 75% Market Share between 2000 and 2020 from November – June. Mexico gained 95% Market Share during that same time frame. The change in total U.S. supply between 2000 and 2020 is 385 million pounds, an expansion of 40%.
Tomatoes, Rounds – Florida lost 1% Market Share between 2000 and 2020 from November – June. Mexico gained 102.3% Market Share during that same time frame. The change in total U.S. supply between 2000 and 2020 is 348 million pounds, a decline of 18.4%.
Strawberries – Florida lost 3% Market Share between 2000 and 2020 from November – March. Mexico gained 266% Market Share during that same time frame. The change in total U.S. supply between 2000 and 2020 is 443 million pounds, an expansion of 151%.
Blueberries – Florida lost 86% Market Share between 2000 and 2020 from November – March. Mexico gained 266% Market Share between 2010 and 2020 during those same months. The change in total U.S. supply between 2000 and 2020 is 134 million pounds, an expansion of 2,108%.

“With agriculture as Florida’s second largest industry, these unfair foreign trade practices and their devastating economic impact should be of grave concern to every single Floridian,” says Florida Agriculture Commissioner Nikki Fried. “In fact, this report found an economic impact of nearly $4 billion to our state overall due to increased Mexican imports, causing tens of thousands of Florida jobs to be lost. We know the best produce is ‘Fresh from Florida’ thanks to the best farmers, with agriculture a $137 billion industry in our state. Our Florida farmers are used to weathering challenges – from hurricanes to invasive species – and they are used to competition. But they need timely and effective relief from the federal government to level the playing field, because right now, we know Mexico and others are not fighting fair.”