"Mexican horticulture thrives like never before"

More than a year ago, during the horticultural exhibition Expo Agrialimentaria in Irapuato, Mexico, people became nervous when Donald Trump unexpectedly won the US election. The future of Mexico was unclear due to possible import restrictions, the construction of the border wall and the 'America First' policy. Sixteen months later, however, the mood is calm and horticulture in Mexico is booming like never before. But what is the situation in the surrounding countries, such as North America itself? Jungle Talks made a short market analysis.

Mexico is the only country, next to Canada, that borders on the US. The border wall is not there yet and even if it comes, it is still unknown what the impact will be on the Mexican export of vegetables. In terms of logistics, Mexico still has a huge advantage over other countries for the time being, and that advantage only seems to be increasing.

Central America
There is hardly any competition from Central America. The most serious countries to take into account are Honduras and Guatemala, but their market share is actually decreasing. It's not expected that major changes will happen here, unless external capital finds a way to the north of Central America.

The Caribbean
Cuba still has a very long way to go and it is unlikely that the country will really be able to develop into a competitor for Mexico. It is simply too hot and the country lags too far behind. If Cuba wants to compete, it will take at least five years. For the Dominican Republic the situation is different. There are elevated plains there with cultivation areas at a height of around 1,000 meters. The first projects are already in place. Nevertheless, in the best case the Dominicans can take only a small piece of the Mexican market share.

South America
Colombia is the closest to North America after Central America. But internal logistics in Colombia are poorly developed and costly. Transport by air would only be possible if the top segment of the North American market could be served, but that is unlikely in the coming years. Chances are that Colombia will grow as a producer of greenhouse vegetables, but mainly focused on the local market and, at most, exporting to certain parts of the Caribbean. And then there is Peru, a country where a lot has happened in recent years. But can Peru be labeled as Mexico's bold competitor? Unlikely. Transportation costs are considerable compared to Mexico and the transport time is relatively long. Melons? Who knows. Greenhouse vegetables? A lot less likely in the short term.

North America
Homegrown, America First. But in the end the price tag is often decisive when the quality is comparable. The production in greenhouses of medicinal cannabis is increasing enormously and replaces many traditional crops including vegetables. In addition, the current policy towards (illegal) aliens is causing higher labor costs and worker shortages. So it is very questionable whether Trump's policy will lead to the consumption of more locally produced vegetables. The opposite could very well be the case. It is of course important that Mexico is on the market, particularly in the winter, and that during the transitional periods the market is mainly determined by the so-called 'suspension agreement' that sets a minimum price for Mexican products. In the summer, the market is dominated by greenhouse vegetables from Canada and the US. Finally, organic products grown on coco substrate are booming in the US and offers opportunities for Mexican growers, as well as labor-intensive specialties.

Conclusion
The above briefly depicts how the market developed in recent years. The conclusion is that Mexico should definitely be taken more seriously. And that can lead to opportunities. Reason enough for Jungle Talks to organize a trade mission to Mexico for the fifth time. It will take place in November 2018 during the week of the Irapuato show, the Expo Agroalimentaria. During this trade trip, Guatemala will also be visited and investing in floriculture in this country is central, including visits to the Dutch-Guatemalan joint ventures Holland Orchids and Ter Laak AmericaS.

Trade mission and webinar
In cooperation with Rabobank, Jungle Talks organizes a trade trip to both countries from 12 to 19 November 2018. It is possible to choose only one country, although a visit to Mexico is a 'must' when visiting Guatemala. Additional information about this trade mission can be found here. Click here for the preliminary program. Costs for participation amount to € 1,900 and can be paid for 50% with a mission voucher if you qualify. Registration is done with this form.

On May 24, Jungle Talks is organizing an informative webinar about 'vegetable world power' Mexico and 'new kid on the block' Guatemala. This includes zooming in on the motives of companies such as Star Orchids, Ter Laak Orchids and Levarht to set up their own production activities in this part of the world. The Agriculture Council in Mexico will also explain what the government can contribute and Rabobank will discuss the importance of having a local presence in Mexico and Guatemala.

Those interested can join the Jungle Talks webinar free of charge on 24 May, starting at 7:30 PM Dutch time. You can sign up via this link.

For more information:
Jungle Talks
Ed Smit
ideas@ideavelop.biz
www.jungletalks.com