Research
Trends in Mexico’s Greenhouse Vegetable Industry
Mexico’s production and exports of protected-agriculture vine vegetables such as tomatoes, cucumbers, and bell peppers, have grown significantly in recent decades. This is thanks to the country’s competitive advantages such as favorable climatic conditions and labor availability.
Growth had also benefited from government support programs, price premiums for field production, and competitive labor costs. These allowed new businesses to emerge, including small family-owned greenhouses, but have kept the industry largely fragmented.
This scenario is now on the verge of change and is becoming more favorable for larger operations. In an environment of increased competition, rising labor and inputs costs, a stronger Mexican peso, deeper integration with the US market, and foreign direct investment flows and partnerships, Mexico’s system of protected agriculture should brace itself for a wave of consolidation and innovation.
Vertically integrated fresh produce multinationals, greenhouse-specific input suppliers, and post-harvest technology and solutions providers can count on sustained growth in greenhouse vine vegetable production south of the US border for years to come.