MEXICO

Feedback from the Trade on Their Plans and Interest in the USA Pear Season:

Although this season started with strong sales and volumes, importers have mentioned that they have had problems to receive the volumes they are wanting to import. They consider the current market conditions to be excellent to increase Northwest pears volumes, but their suppliers are not sending enough volumes. Current price at origin is motivating importers to continue increasing the volumes handled and the varieties available. For this upcoming Christmas season, they expect volumes will continue increasing due to the strong demand for other wholesale markets and traditional channels.

Expectations for Any Freight or Logistics Challenges:

Importers have reported fewer trucks available for USA Pears in the U.S. due to the Christmas tree season. They expect by early December that this situation could goes to normal, even though, importers anticipate this situation to avoid any lack of supply due this situation. This last week, a truck driver and agricultural farmer strike began in Mexico. These sectors have closed some main roads and customs facilities since November 24, and it is expected that this situation could continue up to the end of the month. This situation could cause a delay in the import procedures and the arrival from the border to the destination cities.

Opportunities in Your Market for Specific Varieties, Sizes, and Grades:

Anjou pears continue being the preferred variety in Mexico. Varieties like Bosc and Red Anjou are also requested for some importers, and the Mexican market is open to other varieties like Bartlett, Comice, Forelle and Starkrimson if the quality and price is competitive. In terms of sizes, there is a wide range of sizes that can be handled in the country, and the wholesale market, retail stores and traditional channels can handle larger or smaller sizes if the price is affordable. The same situation exists with quality grades: Mexico has different socioeconomic levels that can pay for US#1 grades or 3rd grades.

Update on the Competition in the Market:

USA Pears reported 87% pear market share at wholesale level, 86% in supermarkets, and 97% in traditional channels. Quality and sales were reported as good. Pears from Argentina were available at wholesale level, representing 5% pear market share. Quality was low with poor sales results; product available was from unsold stocks, no further shipments are expected. California pears reported 7% of pear market share at wholesale level and 6% in supermarket stores. Quality was poor, and sales were reported as low; is not expected that this origin will be available for the next period. Pears from China were available at wholesale level, representing 1% of the pear market share, while holding 8% in supermarkets and 3% in traditional channels. The quality was good, but sales were low due to their higher price and limited availability; imports will continue to supply the current demand.

Political or Economic Issues Impacting Imports, Retail, or Consumer Behavior:

Concanaco reports losses of between 3 and 6 billion pesos due to blockades by transporters and farmers. Octavio de la Torre, president of Concanaco, urged immediate dialogue between the parties and the opening of logistics corridors to protect the family economy. After three consecutive days of protests by truckers and farmers, which have resulted in the blocking of highways, railways, and customs facilities, the Confederation of National Chambers of Commerce, Services and Tourism (Concanaco Servytur) estimated economic losses of up to 6 billion Mexican pesos and demanded dialogue that does not cause harm to third parties. “Based on public reports from authorities and business organizations regarding at least 29 closures in 17 states, the Confederation conservatively estimates accumulated losses of between 3 and 6 billion pesos from November 19 to 26,” stated de la Torre.

Other Brief Comments:

Tiendas 3B opened 390 stores this year and ended September with 3,162 locations, more than double the number it had in 2021, positioning itself as the third-largest retail chain in terms of presence in Mexican territory. The same source notes that the company was just 52 stores away from matching Walmart—a gap that could soon evaporate considering the current pace and the ambition of CEO Anthony Hatoum. The company claims that the country has room for 14,000 locations, and it could even reach 20,000 in the long term. To put this in perspective: Oxxo has 24,000. According to Bloomberg, the deep-discount retailer raised its growth forecasts after reporting 3,162 locations at the close of the third quarter. “We are increasing store openings; in the first months of 2025 we opened 390 locations,” Hatoum told analysts.