What Are Import Trends for Chili Pepper in Mexico?

USA: Chile Pepper Overview

• Ironically, the biggest importer of chili pepper from Mexico is also its biggest competitor.
• Domestically produced chili pepper are mainly going to the fresh market.

MY 2019/2020 US market trends: USDA vegetable summary report on 2019 , presented last 2020 indicated the following market overview:

• California, Arizona, Florida and New Mexico state are biggest domestic producer of chili pepper in the US with a total combined production volume of 110 K MT (2019).
  
• In 2020, New Mexico became the highest producing state with 68,000 tons (8% increase from 2019).
  
• Average pricing for US chili in 2020 is $6.28/ kg.
  
• Lowest price at Q4 at $2/kg and highest during summer May - Aug at $12/kg.
  
• One major factor affecting pricing is labor costs.
  
• US chili pepper are mainly going to fresh market and food/tourism industry. Drastic 40% decrease in demand since the pandemic.

MY2020/21 trends:

• New Mexico is having issues with dry conditions and hail and current year’s production may be lower.

• Production in California was delayed due to colder weather but was able to recover.