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Jeanfromfillmore
07-15-2011, 11:10 AM
Local produce industry faces challenges
Activity at Nogales’ produce warehouses has slowed as the peak produce season comes to a close.

During the height of the season, as many as 1,800 fruit- and vegetable-laden trucks cross the border from Mexico each day.

But even with the constant northward flow of products, the industry faces some challenges, from a shortage of border inspectors to a new highway system under construction in Mexico that would divert untold millions of pounds of produce imports to ports of entry in Texas. The Nogales port of entry has traditionally been the hub for Mexican produce imports. The industry provides hundreds of jobs in trucking, warehouse work, sales and logistics throughout numerous support industries.

“One of my hopes is that Arizona will wake up and see what a good thing it has in the produce industry,” said Lance Jungmeyer, president of the Fresh Produce Association of the Americas, which represents about 110 produce importers and related businesses in the Nogales area.

A major highway construction project underway in Mexico would improve the narrow and winding roadway that links Mazatlan in the farming rich state of Sinaloa through the rugged Sierra Madres with the city of Durango. The nearly 150-mile stretch of road, the Durango-Mazatlan Highway, will complete the link that connects Mexico’s Pacific Coast with the border town of Renoysa, Tamaulipas, near the Gulf Coast.

From there, products would travel northeast to warehousing facilities in the McAllen-Edinburg-Mission metropolitan area.

For produce importers in Texas, the highway project represents a potential gold rush of produce from Mexico.

“One of the biggest concerns is cost,” said John McClung, president of Mission, Texas-based Texas Produce Association. The organization represents about 100 importers of varying size.

The west-to-east drive across Mexico en route to markets in the eastern U.S. could save considerable time and money, one reason why Texas importers are anxiously watching. McClung said importers could save as much as $2,000 in diesel fuel costs for each truckload by coming through a port of entry in southeast Texas. Much of the Texas trade makes its way to markets in the east and Midwest.

Banking on the increased trade, some importers have begun to expand or build new facilities in south Texas.

A Chicago-based importer recently announced plans to build a nearly 230,000-square-foot produce distribution plant in the region. The facility would initially employ some 200 people, with long-term plans to expand to one million square feet and 800 workers.

“Some view McAllen as a threat, others an opportunity,” Jungmeyer said.

He said many of his members have considered expanding into the Texas market.

McClung said the possibility of more produce bypassing Arizona for the Texas border should not be seen as threat to Nogales importers.

He said the volumes of produce grown in Mexico and imported to the United States have grown over the past decade. That trend continues.

“I would estimate that Arizona’s numbers will increase very similar to Texas’,” McClung said.

Arizona imports increased from about $1 billion annually in the 1990s to more than $2.5 billion today, according to Jungmeyer. He said that during peak season, about 70 percent of Mexican produce bound for American markets flows through Nogales.

Port staffing

One area that concerns both Arizona and Texas is the continued shortage of Customs Border Protection (CBP) officers manning the ports of entry.

In Nogales, the federal government is working on the nearly $200 million Mariposa Port of Entry intended to speed the flow of people and goods across the border. Reports, however, show that the current port of entry remains perpetually understaffed by as many as 250 officers.

While the country continues to expand its Border Patrol workforce, CBE hiring has languished.

Last year, 1,215 Border Patrol agents graduated from training academies but only 117 CBP officers did the same.

Fewer officers on hand to inspect inbound shipments poses problems, especially when dealing with highly perishable items like fresh produce.

“What’s going on now is essentially an impediment to trade,” Jungmeyer said.

Legislation has been proposed in recent years that would address the staffing shortage on the border. The so-called PORTS Act introduced in the previous Congress would have bumped up staffing levels by 5,000 and increase the number of agricultural inspectors by 1,220.

Arizona Sens. John McCain and Jon Kyl also proposed a 10-point plan to increase security and commerce on the border.

For Nogales produce purveyors, that’s a step in the right direction.

“We believe in securing the border,” Jungmeyer said. “We also believe in securing commerce on the border.” http://www.nogalesinternational.com/articles/2011/07/15/news/doc4e2060fe67a7b257397707.txt