California-based packing company DiMare said it planned by mid-August to start trucking lemons grown in Mexico through its McAllen service center in addition to its regular supply chain to increase lemon availability year-round.
Sourcing more fruit grown in Mexico rather than California is one result of the long standing drought conditions, but travel-wise it’s also less expansive. The move is meant for the fruit company to save on freight costs as it sends produce to the Midwest, the East Coast and the center of the United States.
“McAllen is strategically located and provides a value-added service that makes us more competitive in eastern markets during the seasonal gap between the coastal and desert growing regions,” wrote Woody Johnson, general manager for DiMare, in a news release.
The bulk of lemons shipments are expected through the middle of October and sales of citrus will still be handled through the Indio, California, office but will be housed in McAllen.
Shifting logistics to Mexico for goods destined for the east coast is something that local economic development corporations have suggested for years.
“Using the Mexican ports you are straight south of the middle of the United States,” said Keith Patridge, the McAllen Economic Development Corporation’s executive director.
Over the last several months, Maersk, a logistics shipping company that contracts for Wal-Mart and other major retailers has been increasing cargo shipments through the Lorenzo Cardenas port for shipments destined in the United States.
“It’s a trend that we have been recognizing,” Patridge said, “and we think will continue to develop into the future just because it’s more efficient and you can minimize inventory and provide better customer service.”
