Why New Mexico is so hot about its chile peppers

It claims that its centuries-old cash crop is the one and only, but outside competition is rising. The state isn't taking that lightly.

By Bruce Kennedy Mar 7, 2013 10:46AM

Stock photo of a woman gathering red chile peppers (© John Lund/Marc Romanelli/Getty Images)Lots of states have a signature cash crop: potatoes in Idaho, oranges in Florida, apples in Washington, peaches in Georgia, corn in Kansas. For New Mexico, it's world-class chile peppers -- cultivated there for centuries and spelled with an "e" to distinguish them from out-of-state chili peppers.


But increasingly stiff international competition has a lot of people in New Mexico -- where the official state question is "red or green?" -- getting their backs up to defend their 2,000 beloved varieties of scorching goodness.


In spite of the ongoing drought still gripping the Southwest, New Mexico had a relatively good chile crop last year, with an overall value of $65.4 million. The drought did increase reliance on drip irrigation, which along with the rising costs of fuel, fertilizer and other agricultural essentials, hiked the price of chile peppers by about 20% last year.


But only 9,600 acres of chiles were harvested in New Mexico in 2012, down from 34,500 acres in 1992. According to The New York Times, consumption of pepper products has more than doubled in the U.S. since the mid-1990s, but most of those products are imported. And that's why New Mexico's chile industry faces tough challenges from outside the state's borders.


The New Mexico Chile Association says imports from China, Mexico and other countries currently account for about 82% of all chiles consumed in the U.S. It also says China is trying to corner the world oleoresin (or essential oils) market, which currently includes 30% of the chiles grown in New Mexico.


So, the state is striking back, aggressively marketing New Mexico chiles while ensuring its brand is protected. The New Mexico Chile Commission collects funds from the industry to support those research, marketing and promotion efforts.


And the New Mexico Chile Advertising Act, which went into effect in June 2011, makes it unlawful for a person to "knowingly advertise, describe, label, or offer for sale a product as containing New Mexico chile, unless the chile peppers or chile peppers in the product were grown in New Mexico."


In addition, a state representative recently introduced a bill that would require chiles and chile products grown elsewhere to say on their labels that they're "not made in New Mexico."


More on moneyNOW

4Comments
Mar 7, 2013 12:20PM
avatar
Mexican food made with Chinese peppers? The thought is revolting!
Mar 8, 2013 11:11AM
avatar
Why would the U.S. import peppers from anywhere ??  They are a cheap food source or flavoring.
Mar 8, 2013 11:09AM
avatar

CHILE peppers, probably came from Chile,SA....Centuries ago ??

Probably still do..

Mar 8, 2013 11:04AM
avatar

I can raise any kind of Chili or Chile pepper in my Garden...And have.

In fact any kind of Pepper, period.

 

From a Sweet Bell, or Hungarian Wax to a Banana or a Habenaro(sp)

Other Chili's and Jalapenas..

 

We are a long ways from New Mexico..

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

Trending NOW

What’s this?

MARKET UPDATE

[BRIEFING.COM] The major averages ended the midweek session on a flat note after spending the day inside narrow ranges. The S&P 500 hovered near the 2,000 mark for the majority of the trading day, but slumped to new lows during the last hour of action. The index then returned to its flat line, where it settled for the day. For the third day in a row, participation left a lot to be desired with just 487 million shares changing hands at the NYSE.

Equity indices opened with slim gains, ... More

MSN MONEY'S