Mexico-Texas Border Blockade Causes Fresh Produce Transport Delays

Fruits

Vegetables

Mexico

United States

Published Apr 28, 2022

A blockade on the Pharr-Reynosa international bridge at the Mexican-US border in early April-22 has caused supply chain disruptions of several fresh fruit and vegetable products coming into the US market. The bridge is considered to be the most important entry point for berries, avocados, bell peppers, cabbage, and carrots and second-most-important for tomatoes and peppers. As a result, the blockade has caused delays in US supply, potentially increasing prices at a time of an already rampant agricultural inflation.

Commercial trucks stopped at the Mexican border waiting to be inspected before crossing into the US are expected to delay the arrival of some imported goods, including fresh produce. The border blockage comes after the Texas government announced on the 6th of April-22 a series of actions that would secure the border between Texas and Mexico after the federal government decided to end a previous policy that refused asylum requests of those crossing the US-Mexico border during the pandemic. The measure caused truckers to block the Pharr-Reynosa international bridge as a sign of protest.

Damage and Delays for Mexican Fresh Produce Exports

According to Customs Border Protection, truckers on the Mexico side of the Pharr-Reynosa International Bridge ended the blockade on the 14th of April-22. However, the border blockade went on for a week-long, which was enough to create delays and shortages in the weeks ahead. The commercial products that were more affected by the blockade were fresh fruits and vegetables being exported to the US market as border delays limited their shelf-life.

Border inspections limit land freight cargo to lengthen the time of each trip, as well as to damage and lower the quantities of fruits and vegetables arriving in the United States. Therefore, some of the fresh produce that was destined for US consumers will have to be destroyed because of the perishable nature of the products. Furthermore, the Pharr-Reynosa international bridge affects specific fruits and vegetables for which it is the dominant entry point to the US.

Additionally, there is a significant concern about the blockade extending to Port Laredo due to its proximity to the Pharr bridge and its location in Texas state as well. The Port Laredo cross-border accounts for 37% of all US-Mexico trade this year, including perishables and other leading sectors within Mexico. Even without a blockade, Port Laredo was already experiencing delays related to the inspections at the border.

Products Most Likely to be Affected

The Pharr-Reynosa international bridge is considered to be the most important entry point for berries, avocados, bell peppers, cabbage, and carrots and second-most-important for tomatoes and peppers. According to the USDA, about 75% of all berries entering the US this year are entering from Mexico, and the Pharr-Reynosa crossing point along with Port Laredo accounts for 57% of all those US imports.

For avocados, pineapples, figs, and dates, the Pharr-Reynosa bridge accounts for 43% of all imports, making it the most important cross border point for these products. Prices for products in the category had already registered substantial increases in Q1-22, with avocados registering the most significant increase of about an 80% YoY increase in March-22. The blockade is expected to affect prices in the avocado US market towards the end of Apr-22 and the beginning of May-22.

Bell peppers, cabbage, and carrots are other vegetables commonly exported through the Pharr-Reynos border. Along with Port Laredo, the two account for 48% of total US imports. The price for bell peppers, in particular, had also registered substantial increases during Q1-22. In fact, the price of Mexican fresh bell pepper rose by 168.5% YoY in W4 of Jan-22, and although prices have stabilized since then, it has stayed above the average price throughout the year.