US Fruit and Vegetable Trade

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December 19, 2022

The US had an agricultural trade surplus in most years between 1960 and 2020 because exported farm commodities were worth more than the commodities that were imported. The US farm trade surplus has turned into a deficit in recent years as the US imports more fruits and vegetables, which are more valuable than the corn and soybeans that dominate among US farm exports.

In 2022, US farm imports of $199 billion exceeded exports of $190 billion, producing a $9 billion farm trade deficit.

The US ag trade surplus has become a deficit

The US exports about $40 billion worth of horticultural products a year, including $7 billion worth of fresh fruits and vegetables, $10 billion worth of tree nuts, and $7 billion worth of processed fruits and vegetables.

The US imports horticultural products worth $100 billion a year, for a $60 billion trade deficit. Horticultural imports include $19 billion worth of fresh fruit and $12 billion worth of fresh vegetables, that is, the US imports fresh produce worth $32 billion and exports fresh produce worth $7 billion, for a fresh produce trade deficit of $25 billion.

Half of US farm imports are horticultural products, including $30 billion worth of fresh fruits and vegetables

The US imports farm commodities worth $47 billion a year from Mexico, which provides almost a quarter of US farm imports, followed by Canada, $37 billion, Europe, $36 billion, and Asia $31 billion. Horticulture includes beer, wine, and distilled spirits. The US imported $7 billion worth of beer, $8 billion worth of wine, and $12 billion worth of spirits in 2022.

Mexico. Mexico is the source of half of US fresh fruit and three fourths of US fresh vegetable imports. The US exports fresh fruits and vegetables to Mexico, but imports far more fresh fruits and vegetables, explaining the widening fresh produce trade deficit.

The US has a widening deficit with Mexico in fresh fruit and vegetable trade

The US imported $7 billion worth of fresh fruit and $7 billion worth of fresh vegetables from Mexico in 2020. Fresh fruit imports were led by $2.2 billion worth of avocados, $1.1 billion worth of raspberries, $0.8 billion worth of strawberries, $0.5 billion worth of citrus, and $0.4 billion worth of blueberries. Since 2010, avocado imports from Mexico quadrupled, while raspberry imports increased tenfold.

Avocados account for ⅓ of US fresh fruit imports from Mexico

Fresh vegetable imports were led by $2.4 billion worth of tomatoes, $1.3 billion worth of peppers, $0.6 billion worth of cucumbers, and $0.5 billion worth of squash. Since 2010, the volume of tomato imports from Mexico rose by two-thirds, while pepper and cucumber imports doubled.

Tomatoes account for ⅓ of US fresh vegetable imports from Mexico

Individual commodities highlight the dominance of Mexican imports in US consumption. Americans consume about eight pounds of avocados a year, including 90 percent imported from Mexico. US production of avocados has remained stable, so the growth in US avocado consumption has been satisfied by imports from Mexico.

Americans consume 8 pounds of avocados a year, including over 7 pounds from Mexico

Raspberries are the most valuable fresh berry imported from Mexico, and provide most of the fresh raspberries consumed in the US. Harvest seasons increasingly overlap as Mexico extends its shipping season from the traditional months of October through June.

Mexico has been the major source of US fresh raspberries since 2016

Fresh strawberries are the most valuable US-produced berry, worth over $2.5 billion a year. US production peaked in 2012-14 before falling as imports from Mexico rose. Mexico exports fresh strawberries to the US between November and March, competing more with strawberry production in Florida than in California.

Most fresh strawberries are produced in the US, but imports from Mexico are rising

Blueberries are produced in many US states and imported from Canada, Mexico, Peru, and Chile. A rising share of the fresh blueberries consumed in the US are imported, including from Mexico, which has prompted complaints from growers in southeastern states whose spring production competes with Mexican imports.

Mexican exports of fresh blueberries to the US increased rapidly

Fresh tomatoes demonstrate Mexico’s competitive advantage. Until 2010, most of the fresh tomatoes consumed in the US were produced in CA and FL, often in open fields and picked while green and ripened with ethylene gas. Mexican and Canadian tomatoes, on the other hand, are often grown in CEA structures, under glass or plastic-covered structures that protect plants from weather and pests, raising yields and permitting year-round production and exports.

Over 60% of US fresh tomatoes are imported; most tomato imports are from Mexico

Fresh peppers tell a similar story of rising imports from CEA structures in Canada and Mexico. Imports from Mexico surpassed US production in 2015, and the Mexican share of the bell pepper market increasing; most bell peppers are harvested in Mexico between November and April.

Mexico provides most of the peppers consumed in the US

Similarly, imports of Mexican cucumbers have exceeded US production since 2007, and cucumber imports are rising while US production is falling.

Most US fresh cucumbers are imported from Mexico

For most of the fresh fruits and vegetables that are imported to the US, imports from Mexico account for 90 percent or more of both volume and value. The exceptions include blueberries, where imports from Mexico are a quarter of imports, and citrus, where imports from Mexico are half of import volume and 40 percent of import value.

Mexico accounts for over 90% of many fruit and vegetable imports

There are several major reasons for rising imports of fresh produce from Mexico. The first is free trade, including NAFTA since 1994 and USMCA since 2020, which reduced trade barriers. Second is a latecomer advantage that means many Mexican fruits and vegetables are produced in CEA structures that save on water and pesticides, facilitate organic production, and often mean higher quality commodities. Third are Mexican labor costs that average a tenth of US farm labor costs and relatively quick and cheap truck transport to US consumers.

References

Huang, Kuan-Ming, Zhengfei Guan, and AbdelMalek Hammami. 2022. The U.S. Fresh Fruit and Vegetable Industry: An Overview of Production and Trade. Agriculture.

Kenner, Bart, Hui Jiang, Dylan Russell, and James Kaufman. 2022. Outlook for U.S. Agricultural Trade. AES-122, USDA, Economic Research Service

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