Improved Quality and Yield
The outlook for this year’s Hatch chile crop from New Mexico is significantly more positive than the previous season. Preston Mitchell of The Hatch Chile Store reports a much-improved crop this year, citing it as a return to normalcy following last year’s dismal quality and yield. The first light volumes of this season’s crop began shipping last week, with this week marking the first full week of shipments to grocery stores.
Weather and Water Conditions
One of the contributing factors to the better crop this year is the more favorable weather. Unlike last year’s extreme heat in May and June, which severely stressed the plants and delayed their maturation, this year’s weather has been much more cooperative. The crop has experienced only slight tip burn from June’s heat, a minor issue compared to last year’s severe grading losses.
Additionally, water availability has greatly improved. The winter of 2022-2023 brought an exceptional amount of snow to the watershed, resulting in better water levels in the lakes used for surface water irrigation. This improvement has reduced costs for growers and decreased the need for groundwater pumping.
Early Start and Extended Season
The crop’s earlier start can be attributed to both favorable weather conditions and advancements in crop genetics. Warmer springs have allowed for earlier transplanting, giving the plants more time to mature in the fields. Mitchell anticipates the season will continue until the first frost, usually around late October to early November. Despite a tendency for retailers to stop stocking Hatch chiles after the first week of September, Mitchell emphasizes that the best quality chiles are available in September and October.
Strong Demand and Stable Pricing
Demand for Hatch chiles remains strong, with the next three to four weeks expected to be the busiest period of the year as retailers aim to be the first to market with the seasonal product. Pricing has remained steady, similar to last year despite inflationary pressures. While labor costs have increased, other input costs have decreased. Mitchell notes that the primary cost concern moving forward is freight, with full truckloads selling in the $17.50-$18 FOB range.
Conclusion
Overall, the early start to New Mexico’s Hatch chile season is bringing much-needed optimism to growers and retailers. Improved weather, better water availability, and advancements in crop genetics are contributing to a promising season with strong demand and stable pricing.
