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South Texas has a long history of fruit and vegetable production. The main horticultural crops are citrus, onions, cantaloupes, honeydew melons, watermelons, carrots, cabbage, and fresh greens. A large number of other fruit, vegetable, and speciality crops are grown in relatively small acreages. The bulk of this production is in the irrigated portions of the Lower Rio Grande Valley and the Winter Garden (southwest of San Antonio).
Horticultural crops are somewhat unique because of their perishable nature and their role as food products. The value of fresh produce (and processed vegetable, to a lesser extent) is extremely sensitive to variations in quality and grade. There is therefore an extremely high degree of production risk because field or transportation conditions can affect the quality of fresh produce. Horticultural crops can vary considerably in price due to relatively small changes in supply or demand. Horticultural producers therefore face considerable price risk as well.
South Texas Fruits and Vegetable Markets. There are a number of marketing alternatives for horticultural crops. Much of the fresh produce grown in South Texas is brought to local packing sheds after harvest. After grading, sorting, and packing, the crops can be shipped either to wholesale outlets or shipped directly to retail grocery firms or food service firms across the U.S. and abroad. Other horticultural crops are grown, packed, and shipped to processing plants located in South Texas or elsewhere. In either case, growers are typically paid a contracted price for the amount of their production that meets certain grades or standards.
In addition to these outlets, some horticultural produce are also sold directly to consumers in local markets such as fruit stands, farmer's markets, and pick-your-own operations.
South Texas fruit and vegetable growers are basically in competition with their fellow local growers as well as growers in Florida, California, and other regions of the U.S., as well as Latin American and other foreign countries. This competition forces growers to become reliable suppliers of quality fruit and vegetables as cheaply as possible. The prices that South Texas growers receive can be strongly influence by events, such as weather, that influence the supply of horticultural crops in competing regions like Florida, California, or Mexico. Prices can also be influenced by news events that changes consumer demand for specific items.
The fruit and vegetable market situation depends on the individual crop and the time of the growing season. Growers and shippers may sell at higher prices during certain key periods, but these higher prices may drop as more production comes on line (sometimes within a matter of days or weeks). Average price and income data for the previous two years can be obtained from Texas Agricultural Statistics Service. In general, the Spring 2001 price situation was, on average, better than the previous two years for major South Texas vegetables, while the citrus deal was generally poorer. Current production and marketing information about selected fruit and vegetables or citrus are available from Texas A&M University. The USDA also has monthly situation and outlook reports about vegetable and specialty crops as well as fruit and orchard crops.
Q. What is the economic value of South Texas vegetable crops?
Q. How many acres of fruits and vegetables are produced in my county or region?
Q. How much does it typically cost per acre to grow fruits and vegetables in South Texas?
Vegetable Production and Marketing News edited by Dr. Frank Dainello-Texas A&M Extension Horticulturist
Information about horticultural production and many other topics can be found at the Aggie Horticulture site. For citrus information or vegetable information, you can find a number of extension resources within this site. In particular, you can find information about strategic planning for the South Texas produce industry and other related topics.
Marketing Organizations and Strategies and Price Risk Fact Sheets: a collection of articles describing the impact of marketing techniques on managing risk in agricultural enterprises.