Tariffs and the Rising Cost of ‘Fresh’: Tactics for the Tomato Wars

tomato tariffs battle

THE HUMBLE TOMATO has become a high-profile emblem of the tariffs controversy, and grocers are faced with delivering dual bad news to shoppers: Prices are likely to rise; quality and availability could suffer.

With the announced imposition by the White House of a 17 percent tariff on Mexican tomato imports beginning July 14, the food industry was thrust further into pricing and operational uncertainty. Tomatoes have been the stars of recent media attention, but the broader issue of tariffs on food imports presents a complex set of challenges for retailers, growers, distributors and packaged food manufacturers.

Politics aside, sweeping food import levies would create a cascade of market effects. Price increases may be expected to depress demand. Transportation from southern border ports of entry would decrease proportionately. Domestically-farmed substitutes, such as those in Florida and California, may travel greater distances to the points of consumption and remain in cold storage for longer periods. The demand for seasonal farm workers could rise. Dependent manufacturing sectors, like the $7 billion U.S. frozen pizza industry, may need to absorb or pass along increased ingredient costs.

That’s just tomatoes. Thanks to its favorable soil, climate and proximity, Mexico has also become an important supplier of avocados, bell peppers, eggplant, spring table grapes and citrus fruits to American consumers, a circumstance initially made possible by the favorable rules of the 1994 NAFTA agreement, later superseded by the 2018 United States-Mexico-Canada Agreement (USMCA).

Read more

Eye-Opening Short Film on Food Security

Watch 'Man in the Maze' on Vimeo

THOSE OF US who live close to the Nogales port of entry (about 90 miles south of Tucson) are at least dimly aware of the colossal flow of fresh produce that crosses the border from Mexico every day. The food helps sustain us, but there is also an appalling amount wasted that could improve the lives of people in need of improved food security.

Today I became aware of a short documentary film that explores several facets of this reality. The film-makers did such a fine job that they were honored with a Short Film Challenge award from the Sundance Institute.

I learned about this remarkable piece of story-telling from a great article on Tucson.com by Kathleen Allen. She did solid job of collecting relevant links and comments about the film.

Although not addressed directly in the film or article, I think part of the challenge may relate to long and costly delays at the border crossing. I wrote about this issue here in a 2009 Tirade, “Watching the Wheels.”

© Copyright 2015 James Tenser