Mexico’s Organic Program Continues to Flourish
 Tom Burfield - The Packer
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So far, organic production continues to thrive in West Mexico, with more growers getting into the category or expanding existing organic acreage every year.
No one knows whether that growth will continue in light of the gloomy economic picture, but most Nogales distributors remain optimistic.
“The organic program in Mexico is growing by leaps and bounds,” said Miguel Crisantes, president of Sunny Valley Organics.
The company offers a full line of organic tomatoes, bell peppers and cucumbers, most of which are greenhouse grown.
Although some market analysts are projecting a move from organic to conventionally grown food as consumers look for ways to save money, Crisantes said that he had not yet seen that happening.
Those who buy organic produce usually are committed to the category because they perceive it to be more healthful and more flavorful, he said.
“They may cut down on less essential items, but not healthy eating,” he said.
New Harvest Organics LLC also continues to perform well, said Philip Ostrom, one of the company’s owners.
“We’re seeing good support on all our organic categories at this time,” he said. “We’re very optimistic.”
The company packs and ships several kinds of squash, cucumbers, green bell peppers, honeydew melons, seedless watermelons, cantaloupes, Persian limes, navel oranges and valencia oranges and is adding colored bell peppers this year.
Some of the “more exotic, high-priced” organic items may see some declines, but in general, Ostrom expects the category to continue to grow.
At Cris-P Produce Inc., general manager Ricardo Crisantes says the company has a loyal customer base that is committed to an organic lifestyle.
He is concerned, though, about “casual users who buy an item here or there who may be pressured in terms of discretionary income.”
Cris-P will ship about 1.2 million cases of organic produce over the next year of tomatoes, roma tomatoes, cucumbers, peppers, eggplant, zucchini squash, hard squash and mangoes.
During hard economic times, consumers will question any purchase that costs more than it used to, said JJ Badillo, director of diversified products in the Nogales office of Santa Paula, Calif.-based Calavo Growers Inc.
“But with organics, it involves a different belief system,” he said. “People believe in organics, and they will buy organics.”
Nevertheless, when consumers start tightening their belts, “it’s always a concern,” he said. “We’ll have to see how that goes.”
Calavo conducted trial plantings of organic tomatoes last season and will expand the program this year, Badillo said.
The company will offer a one-layer box of size 18s to 52s from March through June under the Maui Fresh label, he said, and also will offer other organic items, including pineapples and avocados.
At SunFed, which offers organic grape tomatoes, green beans and zucchini, owner and chief executive officer Danny Mandel said the weakened economy “may slow the growth in the category or it may reduce the price gap between organic and conventional.”
“Let’s hope it’s not both,” he said.
Mandel expects the category to continue to grow, but probably at a slower rate than in the past.
How the organic category performs may depend on how high prices get, said Jim Cathey, general manager and sales manager, Del Campo Supreme Inc.
Most consumers are not likely to buy organic produce at two or three times the cost of conventional, he said.
The company cut back its organic production this year.
“We weren’t real comfortable that (consumers) would buy and pay that higher (price) that it takes to grow organic product,” he said.
But Malena Produce Inc. is just getting its feet wet with a small organic program involving grape tomatoes and romas out of Culiacan, Mexico, said Gonzalo Avila, business manager.
Customers have been asking for organic product for two or three years, Avila said.
“We’re playing it by ear,” he said. “We know we can grow it, but the challenge is, will they pay the right price for it?”
Growers also see the organic category growing because of recent food safety scares.
Besides strict certification standards enforced by the Mexican government, organic produce from Mexico that is sold in the U.S. must receive the same U.S. Department of Agriculture certification as domestic product, Miguel Crisantes said.
“Certification builds another layer of confidence,” Ostrom added.
He said he is not aware of an organic product that has been involved in a recall or food safety issue. |
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Business News | December 2008 
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