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The Big Picture:
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Agricultural Producers are seeing significantly
higher costs of inputs
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Labor – green chile is hand harvested, the
grower is very concerned about the supply and
quality of the labor pool for harvesting the
chile crop
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Energy – a major use of energy is in pumping
water, all energy costs are up significantly on
the farm creating an environment in which the
grower needs and is demanding higher pricing
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Fertilizer – fertilizer costs are tied to
natural gas prices and are up to double what
they were a year ago
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Alternative crops – prices are up considerably,
growers can avoid the headaches of harvesting
labor for the chile crop and almost guarantee
their profitability by planting alternative
crops such as alfalfa and small grains.
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New
Demand – with food for fuel, there is a growing
awareness of the increasing value of farm land.
This translates into a desire by the growers to
increase the returns. With more alternatives
than they have had previously, growers are
demanding and receiving higher prices for the
inputs they provide.
Tomatillos
At Border Foods,
our pack season is nearly complete – we will not
see additional tomatillos until late summer or
early fall. The just completed campaign found
supplies and quality to be very good to
excellent. Pricing on tomatillos is steady to
firm.
Jalapenos
There are adequate supplies currently available
although the window on these supplies will be
closing early March. Current supplies are
priced higher than we have seen in recent
history.
Looking forward, jalapeno crops are transplanted
and that process is just underway and will
continue for approximately sixty days. Given
normal growing conditions, the newly
transplanted jalapenos will begin to be
harvested in early June and will continue
through November.
The quality of jalapenos available today is very
good, supplies are adequate, and prices are very
firm and definitely higher than they were a year
ago.
Green Chile
There are some supplies currently available
outside of our normal growing areas. Pricing on
the current supplies is twice what we paid
during the harvest. We are comfortable in
having existing supplies to cover our sales
commitments, new demand will necessitate
reaching into the spot market and buyers will
have sticker shock at the “new” pricing.
Regardless, if you need chile prior to the NM
harvest, we would be delighted to help you with
your sourcing needs. The available “off season”
availability is very limited.
Locally, seeding
will begin in approximately two weeks. With
higher prices for land, energy and labor inputs,
pricing on 2008 harvested chile will be
significantly higher than we offered in 2007.
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