Opinion

How the U.S.-Mexico Produce Trade Is Going Green

Cold chain systems keep fresh produce moving, but their energy and emissions footprint is now in the spotlight.



by Federico Schaffler

Sustainability is no longer just a regulatory concern. Many U.S. retailers and foodservice organizations require their Mexican suppliers to adhere to sustainability requirements as part of their contractual obligations. Market pressure is driving producers and distributors to adopt new technologies and processes to enhance efficiency and remain competitive. 

The Mexico-U.S. trade in products is expanding and becoming increasingly complex, and sustainability is now essential to long-term competitiveness. Cold-chain environmental issues are a global concern that requires international cooperation, innovative solutions, and financial resources to address. 

One of the best aspects of this trend is that the incentives align. Stores seek cleaner supply networks. Food origin and treatment are essential to consumers. Modernization activities, including automating customs, setting emissions reduction targets, and improving infrastructure, are receiving small but growing federal and local funding. These factors enable the U.S.–Mexico goods corridor to be a sustainable agricultural logistics model. 

However, specific issues remain. Cost is a significant challenge for small and medium-sized logistics companies, as well as farmers with low revenues. Infrastructure is lacking, especially in Mexico, where stable electricity and financing can make it difficult to implement sustainable solutions. The United States-Mexico-Canada Agreement (USMCA) contains environmental provisions, but enforcement and coordination remain inconsistent. 

Meanwhile, over $15 billion in fresh produce flows annually between the U.S. and Mexico, much of it during the winter and spring when U.S. fields lie dormant. Key corridors connect farms in Michoacán, Sonora, Jalisco, and Sinaloa to entry points in Nogales and Laredo.

But the corridor’s environmental cost rises in proportion to its economic value. The cold chain utilizes diesel-powered refrigerated vehicles, energy-intensive cold storage facilities, and sometimes backed-up customs processes. The cross-border produce corridor may become greener and stronger as large U.S. merchants, institutional customers, and even individual consumers seek more environmentally friendly approaches. 

Nogales, AZ, and McAllen and Laredo, TX, are key land ports for the Mexico-U.S. fresh fruit trade. Mexican fruits and vegetables enter the U.S. market from Sonora through Nogales, which handles approximately 6.3 billion pounds of food annually. Trade in these shipments totals $3.3 billion annually, and the U.S. receives up to 60% of Mexican goods from Nogales in winter. 

Laredo, the busiest U.S. land port for commercial crossings, connects producers in central and southern Mexico with markets in Texas and the Midwest. It handles less produce than Nogales but remains vital to the trade corridor. The port imported $210 billion from Mexico last year, with total trade reaching $339 billion, according to U.S. trade figures. Many of these imports were perishable agricultural commodities. 

After harvesting, logistics begins with crop management. These hydrocooling, sorting, and packing operations happen near the fields. The vegetables are then loaded into refrigerated trucks and driven north to the border. Before entering the U.S., cargo must pass phytosanitary and customs inspection in Nogales or Laredo. Produce is swiftly transported to cold storage and distribution sites in major cities from the port of entry. 

This multi-stage journey requires precise temperature control and scheduling; delays or system failures can compromise quality, safety, and marketability. 

Although the U.S.–Mexico agricultural trade corridor is efficient, the cold chain that keeps produce fresh across borders comes with a steep environmental cost. Diesel-powered refrigerated trucks must run cooling systems continuously, making them major emissions sources. Long idling at congested border crossings adds to fuel use and the risk of spoilage. The cold chain is essential, but remains one of the trade system’s most energy-intensive elements. While some warehouses are adopting energy-efficient systems, many still rely on traditional fossil fuel-based refrigeration.

Additionally, food waste and loss persist. For sensitive commodities like berries or leafy greens, even little temperature variations during transport or inspection may result in rejection. These losses waste not only food but also water, fertilizers, and energy invested in their production. The Natural Resources Defense Council notes most losses occur post-harvest, during distribution and customs.

Despite its many issues, the cross-border cold chain is becoming more sustainable thanks to new ideas and investments. Logistics companies, farmers, and infrastructure developers on both sides of the border are testing new solutions to cut emissions, energy use, and waste in the produce corridor. 

In McAllen, Nogales, and Laredo, distribution hubs are installing energy-efficient refrigeration, thermal insulation, solar power, and LED lighting. Automation helps manage temperatures and prevent spoilage.

Transportation is also evolving. Even though diesel is still the most popular fuel, companies are testing hybrid or electric chilled cars for shorter travels between border facilities and local distribution locations. Although small, these efforts demonstrate that more people are seeking to decarbonize one of the cold chain’s most polluting components. Logistics companies utilize route optimization software and AI-powered fleet management systems to minimize idle time and expedite deliveries, thereby reducing fuel consumption. 

There are also signs of development in customs and inspection, which can be problematic. The U.S. and Mexican governments support port infrastructure enhancements that will facilitate the transfer of perishable commodities, enhancing food safety and environmental compliance. By digitizing paperwork and streamlining pre-clearance procedures, certain items can be cleared more efficiently, resulting in reduced costs and lower emissions. These advantages, although not universal, demonstrate what can happen when efforts are coordinated.

Investments in sustainability make firms more resilient, efficient, and better equipped to meet demanding market standards. While the corridor is still evolving, its success as a low-impact, high-efficiency model depends on how effectively stakeholders collaborate. 

  • Federico Schaffler holds a PhD in Public Policy and currently serves as the Foreign Trade Administrator for the City of Laredo, TX. This article expresses his personal opinions and not those of the city government.

 

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