By Adam Russell
Specialty crop producers in the Rio Grande Valley are facing significant problems due to COVID-19 disruptions and market losses, said a Texas A&M AgriLife Extension Service expert.
Luis Ribera, Ph.D., AgriLife Extension economist, College Station, said specialty crops are being destroyed because they have no place to go, and prices have dropped due to high supplies and much lower demand.
Ribera said specialty crops ranging from citrus to onions have taken a hit during the COVID-19 pandemic. But how much remains to be seen.
He and other Texas A&M AgriLife Research and AgriLife Extension experts are putting together a report focused on the potential economic impact of the virus on Texas agriculture producers.
Like many other agriculture sectors, the virus has disrupted traditional supply lines and market demands. The closure of schools and demand reduction by restaurants has put some commercial specialty crops, including fruits and vegetables, in a tough spot.
“Some fresh fruits and vegetables don’t have a home to go to,” he said. “These are highly perishable products with reduced to no outlets. They can’t be stored, and prices are very low. At a certain point prices become so low the crops aren’t worth harvesting, so they disk it under.”
Specialty crops: good growing season, bad situation
Farmers in the Rio Grande Valley have already disked under crops like kale and other greens because harvests would likely sit and waste, Ribera said.
Ribera said about 40% of commercially grown produce typically goes to wholesalers who ship to retail grocers. Another 40% of their harvest go to restaurants with the remaining 20% going to market in other ways.
Sales to grocers has increased 10%-15%, but that means a significant portion of their crop has no place to go, he said. Producers reported sales were down 20%-50% in March.
Ribera said disruptions will continue to batter specialty crop producers until normalcy returns. He expects April numbers to be worse for growers because they don’t have options.
To make matters worse, the winter growing season produced above-average yields, Ribera said.
“Yields were very good, so you have good supplies and much lower demand,” he said.
There have also been disruptions to the harvest of specialty crops due to lack of labor, he said.
“There has been a shortage of harvesting crews,” he said. “That has delayed or prevented harvests. Each day a crop sits in the field or is delayed in its journey from field to consumers, the quality is reduced, and that costs producers. This is one of those ‘perfect storm’ situations.”
Quantifying specialty crop losses
Dale Murden, a grower and president of Texas Citrus Mutual in Mission, said it’s too early to tell the extent of losses to Texas specialty crop producers, but changes in markets like schools and restaurants have hurt. He suspects citrus is faring better than some crops but not being able to provide schools with juices for breakfast was a big blow to the industry.
Murden noted seeing a field of onions harvested and bagged, but with no destination. He also expressed concerns about social distancing orders’ effects on the region’s melon crop, which is approaching harvest.
“We don’t know who it’s hurting and how bad yet,” he said. “It’s a fact that kale and greens growers have plowed crops under. It’s a fact orders are being cancelled. It’s a fact that crops have no place to go, but it’s hard to quantify the dollars and cents at this point.”
AgriLife Extension district reporters compiled the following summaries: