U.S. paprika and chili harvest is starting this week and will continue for the rest of the year. In spite of a rough start to the season due to weather related issues, the growing conditions have been very favorable for the last two months. We expect the U.S. crop to deliver volume as planned.
The chili crop is now in the most critical period and the weather in the harvest months is important to get the product to the factory gate. The overall costs for the 2019 crop are expected to be higher because of increasing grower costs related to inputs, gas and labor costs.
Due to the tight inventory situation in 2019, more area is under production with slight expansion of growing into the Northern Mexico region. This area is reporting a close to normal crop despite a mid-season weather scare.
Organic paprika and chili production in the U.S. is also progressing well, with an increase in acreage in 2019 to support the increasing demand for U.S. origin organic paprika and chili peppers with farm-to-fork traceability.
As always, U.S. paprika and chilies remain the most reliable and traceable source of products in the industry. U.S. paprika has minimal issues with toxins (Aflatoxin and Ochratoxin), pesticides and do not use banned chemicals like Chlormequat in the growing process.