Labor Cost
Climate Change
Seasonality
Traditional Export Supply Chain: Depends on the region.
Growers in the Northern region of Mexico begin to harvest from November to May. The planting season starts from late June to July. These growers also employ technological advances to increase their yield. Large-scale growers prefer to cooperate under program contract deals, as they receive highly valuable inputs from buyers during the planting season. And they do not prefer to engage in fixed pricing. Harvested volumes are consigned to the buyer/importer. Terms of payments depend on the amounts of inputs the consignee provided.
Target Countries:
- Almost 99% of export production are heading to the USA and the remaining volume goes to Canada (2020)
US ranks 1st in Chili Pepper import
Target Countries: Canada
The varieties in order of preference in the US are: Jalapeno, Serrano, Anaheim, Fresno, Caribe (yellow chili)
Domestic harvest period: All year long, each region in Mexico has a different harvesting season making the product all year round.
As of 2020, the total annual production of chili pepper in Mexico reached 3,200,000 tons.
The development of agro-industrial technology increased the production 3 folds (from 1.8 kg/ m2 in 2019 to 12.3 kg / m2 in 2020). The largest area harvested in Mexico for 2019 was Zacatecas covering 23.7%. Of Mexico’s total chili production land.
Sinaloa also had the largest area of chili cultivation using agro-industrial agriculture, with 793 hectares in 2019.
Growers in Mexico's harvest volume range from 4 tons/ha to 54 tons/ ha (2019).
USA: Chile Pepper Overview
MY 2019/2020 US market trends: USDA vegetable summary report on 2019 , presented last 2020 indicated the following market overview:
MY2020/21 trends:
Production in California was delayed due to colder weather but was able to recover.