US Broccoli Production Decrease Benefits Mexican Exports

Published 2022년 6월 29일

During the first quarter of 2022, US imports of Mexican broccoli recorded a 23.3% increase in value over the previous year. The increase in Mexican exports comes off the back of the Californianbroccoli harvest facing significant challenges. Water shortages and weather constraints have caused substantial decreases in the domestic supply. In addition, due to its seasonality, US imports of fresh-headed broccoli compete directly with domestic production throughout the year. However, this year, Mexican exports have registered much more significant growth in value than in volume due to the price increase that has been seen in the market.

According to data from the Economic Research Service from the US Department of Agriculture (USDA-ERS), US imports of Mexican broccoli in the first quarter of 2022 were valued at USD 94.3 million, while for the same period in 2021, the value was USD 76.5 million, an increase of 23.3% YoY. In quantity terms, the US imported 195.9 million lbs of fresh broccoli from Mexico, representing a slight increase of 3.7% compared to 188.9 million lbs for the same period in 2021.

The broccoli production in California, where 90% of the domestic output is produced, faces significant challenges due to water shortages, which, combined with rising temperatures, has caused the broccoli supply to decrease significantly. In fact, the decrease in production has benefited Arizona farmers, the other state that complements US broccoli production with a smaller volume. Also, other supplying countries have seen broccoli exports to the US increase.

Due to its seasonality, imports of fresh-headed broccoli compete directly with domestic production throughout the year. However, this year, according to the released data from the USDA, broccoli imports to the US have benefited more from the price increases caused by the supply shortage than from the volume imported. With 195.9 million lbs of fresh broccoli imported from Mexico in the first quarter of the year, the increase from last year was only a slight 3.7%, while in value, the increase was 23.3%.

The reason for the difference is shortages. The price increase that the Mexican broccoli has had in the year so far is caused by the shortage in California production. According to Tridge’s price chart, the price for Mexican broccoli in the Philadelphia wholesale market at the end of Feb-22 registered a 52.2% YoY increase when it reached its higher value in the year at USD 2.49/kg. The substantial increase was mainly due to the shortage supply of both Mexican and US broccoli in the market. However, by March, the Mexican harvest started to arrive in the US market in large quantities. As a result, by W3 of March-22, prices began to decrease but still recorded a considerable 40% YoY increase as the price went down to USD 2.13/kg.

Mexico is the leading supplier of fresh broccoli to the US, a position it has consolidated over the last few years, as broccoli shipments to the US market have seen an overall increase. In the previous five years, the highest value for fresh Mexican broccoli shipped to the US market was recorded in 2017 with USD 248.3 million, although the highest volume was in 2021 with 524.9 million lbs.

Another important broccoli supplier to the US during the first quarter of 2022 was Guatemala, with an imported value of USD 5.6 million, a 19.3% YoY increase. Guatemala has also benefited from the US broccoli production shortage and the increasing demand. In fact, it has surpassed Canada as the second broccoli supplier to the US since 2020.

The peak season for Mexican broccoli exports is in the months of November and December, so most of the shipments occur during the last quarter of the year. Therefore, to asses this year’s Mexican broccoli exports, it is necessary to wait until the last quarter. However, from the official trade data that has been unfolded so far, it looks like 2022 will be a record-breaking year in value for Mexican broccoli exports.