U.S.-Mexican Berry Trade

Linda Calvin

USDA-Economic Research Service

Immigration Reform: Implications for

Farmers, Farm Workers, and Communities

Washington, DC—May 21-22, 2009

Potential explanations for trade flows

• Cost of delivered production

– Cost of labor

– Cost of transportation

• Weather

• Food safety problems

• Technology/varieties

• Phytosanitary issues

• Tariffs

U.S. fresh berry production and imports,

1990-92 and 2006-2008 averages

Production

Imports

1,000 lbs

Strawberries Raspberries Blueberries Blackberries

Source: ERS Fruit and Tree Nut Situation and Outlook Yearbook, U.S. Department of Commerce.

U.S. fresh berry statistics

StrawB RaspB BlueB BlackB

Percent change (1990-92 to 2006-08)

U.S. production 111 180 233 189

Per-capita consumption 81 191 303 NA

Imports 419 1,048 337 11,206

Percent (2006-2008)

Import share of cons. 8 25 44 NA

MX share of imports 99 73 0 95

Fresh strawberry production and

imports Million lbs

Production

Imports

Source: ERS Fruit and Tree Nut Situation and Outlook Yearbook.

Fresh strawberry shipments, 2008

100,000 lbs

Source: USDA, Agricultural Marketing Service, Fresh Fruit and Vegetable Shipments.

U.S.-Mexico trade in fresh strawberries Metric tons

U.S. imports from Mexico

U.S. exports to Mexico

Source: U.S. Department of Commerce.

Frozen strawberry industry statistics,

1990-92 to 2006-2008

• U.S. production up 28%

• Imports up 168%

• Import share of domestic production—46%

in 2006-08

• Mexico accounted for 69 percent of imports

in 2006-08.

Fresh raspberry production and

imports Million lbs

Source: ERS Fruit and Tree Nut Situation and Outlook Yearbook.

Production

Imports

?

Fresh raspberry imports Mt tons

Mexico

Chile

Guatemala

Source: U.S. Department of Commerce.

Fresh raspberry shipments by month,

2008 100,000 lbs

Source: USDA, Agricultural Marketing Service, Fresh Fruit and Vegetable Shipments.

Fresh blackberry production and

imports 1,000 lbs

Production

Imports

Source: ERS Fruit and Tree Nut Situation and Outlook Yearbook.

Fresh blackberry shipments, 2008

Source: USDA, Agricultural Marketing Service, Fresh Fruit and Vegetable Shipments.

Frozen blackberry imports

Kilos

Source: U.S. Department of Commerce.

U.S. fresh blueberry production and

imports

Production

Imports

Million lbs

Source: ERS Fruit and Tree Nut Situation and Outlook Yearbook.

Fresh blueberry imports Kilos

Source: U.S. Department of Commerce.

Fresh blueberry shipments, 2008 100,000 lbs

Source: USDA, Agricultural Marketing Service, Fresh Fruit and Vegetable Shipments.

Conclusions

• The U.S. imports fresh berries because we can not

produce them or do not produce enough during the

winter months, not because of cheaper labor costs.

• Total costs of production in Mexico are similar to

costs of production in the United States.

• The major change in fresh trade patterns is the

emergence of Mexico as a replacement for Chile

which has high transportation costs.

More conclusions

• Technology—developing new varieties and adopting cultural practices to new production areas has been important in trade patterns.

• Food safety has had important impacts on fresh berry trade.

• Phytosanitary and tariff issues do not seem important in explaining U.S. berry imports.

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