One of the advantages of Mexican Chili pepper is labor cost which is cheaper than in the US. Climate change also plays a role, but experienced growers who know how to overcome the issue can explore the opportunities in the market. Seasonality also guarantees sales at competitive prices throughout the season.
Labor Cost
- One of the advantage that Mexican chili pepper has over its biggest competitor (USA) is the cost of labor. Mexico is cheaper compared to US, and there is no apparent shortage of it (except recently due to COVID).
- Pricing is more competitive.
Mexican chili pepper is highly preferred by industries that uses fresh chili pepper for processing and consumes the biggest share of chilis in the market.
Climate Change
- Hard rain or even hurricane have a selective effect on volume and pricing. Too much rain can create breeding grounds for chili pepper pests.
- Experienced growers knows how to apply pesticide appropriately without exceeding the US MRL, likewise, other growers tends to struggle with this issue.
- Experienced growers can monopolize the market.
Seasonality
- Guarantees sales at competitive prices all throughout the season.