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: