United States lifts Mexican avocado ban — averting what could have been a costly crisis (2024)

For foodies, workers, restaurant owners and investors on both sides of the Rio Grande border, Friday brought a sigh of relief after the United States lifted its temporary ban on imports of Mexican avocados.

The week-long pause — albeit a short one — had fueled concerns in the avocado industry, from the workers who pick the fruit in Mexico to consumers worrying about a potential shortage of a staple in the diets of many Americans.

Mexico supplies about 80 percent of the avocados eaten in the United States. The import ban — stemming from purported threats to a U.S. inspector in the Latin American country — shook a billion-dollar industry. Not only did the commotion showcase the law enforcement issues that growers are frequently subjected to in Mexico, but experts said it underscored the importance of one of the strongest and most successful bilateral trade agreements.

Avocado prices could spike as U.S. suspends imports from Mexico

Before being smeared into toast or squashed into guacamole, the avocado’s life begins in an orchard in Michoacán — a western Mexican state over a thousand miles away from the border and the only one allowed to send over avocados to the United States. From a bright-green fruit hanging atop trees to its final stage inside American kitchens, the avocado’s journey from seed to food encompasses different phases of inspections and agreements between the two nations — which suddenly took a hit.

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Last week, a plant safety inspector from the U.S. Agriculture Department’s Animal and Plant Health Inspection Service was inspecting avocados in Michoacán, when he saw some avocados that looked suspiciously like they came from another state, according to USDA and other industry experts. He raised a red flag and soon after, he received a voice-mail threat. Then the USDA announced it was shutting down imports until it could be assured its agents were safe.

The ban on avocados from Mexico could be bruising, the longer it goes on

The potential of an impending shortage quickly rippled across the industry — one that came shortly before the Super Bowl, one of the avocado’s biggest events. Soon, food establishments and groceries began worrying about keeping up with a demand that has exponentially increased throughout the past decade.

Prices for the fruit deemed “green gold” were already 100 percent higher than the previous year, said David Magaña, a senior analyst for RaboResearch Food & Agribusiness. But the year-long availability of avocados had also increased as well — indicating that a surge in demand can be attributed to different factors, he said.

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For one, avocados, with their versatility and healthy fat attributes, became a food trend and Internet obsession. At the same time, the Hispanic population booms across the country — with a larger share of Latinos among Gen Z — have been “one of the major forces pulling the demand for avocados,” the analyst said.

But behind all those green juices and avocado Instagram-worthy photos is the partnership between Mexico and the United States — which has played a crucial role in enabling the market to expand.

In 1995 — a time when “fat-free” food staples ruled the market — the United States did not have much of a taste for avocados. The majority of the consumed fruit was produced in California. Avocado imports that year totaled $14.7 million, of which $700,000 came from Mexico, said David Orden, a professor in the department of agricultural and applied economics at Virginia Tech.

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Mexico’s avocados had been banned in the decades before the North American Free Trade Agreement from 1994, Orden said — mostly out of a concern that weevils, scabs and other pests could enter U.S. orchards from imported products. The trade agreement opened the door for the incremental expansion of avocados.

How avocados shape Americans’ views on trade policy

In establishing a system in which U.S. inspectors verify that avocados are pest-free — from when they are growing in orchards to the moment they are packed into sealed trucks — Mexico has been allowed to ship its agricultural product. It started with an approved wintertime stock in Alaska back in the ’90s that has turned into a current year-long supply in all states.

“So that’s all very encouraging and great story about growth and trade agreements, and something the U.S. is trying to do in other countries as well,” Orden said.

The agreement has contributed to economic progress in both sides of the border. Last year, “the two-way food and agricultural trade reached $65 billion, including $2.8 billion in Mexican avocado exports to the United States,” U.S. Ambassador to Mexico Ken Salazar said in a statement. In Michoacán, some 300,000 workers depend on the avocado industry — including those doing the picking, the packing and the transporting of the fruit.

But their livelihoods have been threatened by encumbering cartels, who see the booming industry as a golden hen for profit, Orden said.

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“It has attracted the attention of these gangs in an area where the cartels are not under control,” he said. “That’s where this story takes on a shadier color. But that’s really a law enforcement issue, and one that affects all of our relationships with Mexico.”

The USDA’s Animal and Plant Health Inspection Service said in a statement that it had worked with the Mexican government and the Association of Avocado Exporting Producers and Packers of Mexico to enact “additional measures” to safeguard the safety of its inspectors.

While the agency did not disclose what such measures encompass, they served to avert what could have been a costly avocado crisis — one that would had impacted plenty, from those picking the fruit to those biting into their avocado toasts.

“With this we ensure the exportation of fruit and provide economic certainty to farmers and day laborers,” Michoacán Gov. Alfredo Ramírez Bedolla tweeted Friday.

United States lifts Mexican avocado ban — averting what could have been a costly crisis (2024)

FAQs

United States lifts Mexican avocado ban — averting what could have been a costly crisis? ›

United States lifts Mexican avocado ban — averting what could have been a costly crisis. For foodies, workers, restaurant owners and investors on both sides of the Rio Grande border, Friday brought a sigh of relief after the United States lifted its temporary ban on imports of Mexican avocados.

Why didn t Americans eat many avocados before Nafta? ›

Before NAFTA, the U.S. did not allow fresh avocados from Mexico, allegedly due to concerns that the fruits were infested by insects. After years of negotiations with Mexican officials, the USDA permitted avocados to be imported in 1997.

Why are avocado prices going up? ›

The price increase is partly due to weather that has affected production levels in key avocado growing regions in California, Mexico and Peru this year, said Brad Rubin, analyst at Wells Fargo's Agri-Food Institute, in an email to MarketWatch. California is expecting a smaller crop this year compared to last year ...

What is the problem with avocado production in Mexico? ›

Increased international demand led to an expansion of land dedicated to avocado production, to the detriment of forest cover, resulting in deforestation and the subsequent degradation of soil, water, and biodiversity.

What percent of avocados come from Mexico? ›

Mexico supplies 45 percent of the international avocado market. Of the 57 avocado producing countries, the other major producers are Colombia, Peru, Dominican Republic, and Kenya, in that order. Avocados growing in Oaxaca. The 'Avocado Belt of the Mexican Republic' includes Michoacán and the State of Mexico.

Why shouldn't you eat avocado? ›

Avocados contain a high amount of collagen, which may harm liver cells if not being completely digested. Hence, it is necessary for those with liver problems to limit their avocado consumption.

What is the biggest issue in avocado farming? ›

Mexican officials estimate that avocado production spurred the clearance of 2,900 to 24,700 acres of forests per year from 2010 through 2020. And it's resource intensive: Avocado trees consume four to five times more water than Michoacán's native pines, jeopardizing water resources for human consumption.

Where do the US get their avocados? ›

Mexico supplied most of the avocados imported into the United States in 2021. In 2021 the United States imported $3 billion in fresh avocados and exported approximately $31 million in fresh avocados (ERS 2021). Commercial shipments of avocados from approved orchards in Mexico can now be distributed to all 50 states.

Why did the US stop buying avocados? ›

According to the USDA, the suspension came in response to a security incident made against one of USDA's health inspectors in Mexico and will last for “as long as necessary.” The U.S. also temporarily suspended avocado imports in 2021 after an inspector received a threatening letter, causing prices to spike.

Why is there a surplus of avocados? ›

Oversupply to continue

The avocado surplus is expected to persist in the coming years due to a huge increase in production. Last year the price hit a low of $1 per piece as farmers grappled with a saturated market. Ms Nason said growers were concerned about the ongoing viability of the industry.

What is the difference between Hass avocados and green avocados? ›

Florida avocados are the larger, smooth-skinned choices. California avocados sold in supermarkets are the Hass variety, and are smaller and have a pebbly skin that turns from green to a purplish-black when ripe. The biggest nutritional difference between California and Florida avocados is their fat content.

Why does the U.S. import avocados from Mexico? ›

A vast majority of U.S. avocado imports come from Mexico, which has become the world's top producer, largely in response to the pull of rising demand from U.S. consumers. Most of Mexico's avocado production is centered in Michoacán. California produces about 90 percent of the avocados grown in the United States.

Why can't you cross avocados from Mexico? ›

Mexican officials have struggled to maintain secure conditions in Michoacan state, the biggest producer of avocados in the country, where gang violence and extortion are rampant. A ban in February 2022, triggered by a threat against an inspector, lasted a week while the Michoacan government implemented a security plan.

Which country has the best avocado? ›

Mexico. Mexico leads the way globally in both the production and export of avocados, with more than 2.5 million metric tons produced per year which represents around 30% of world production. Today, Mexican avocados are consumed in 51 countries, with the U.S.

Who buys the most avocados from Mexico? ›

In 2023, the leading country of destination for avocado exports from Mexico was the United States, with a value of 2.46 billion U.S. dollars. Ranking second was Canada, with almost 203 million U.S. dollars, followed by Japan, with over 77 million U.S. dollars.

Does the cartel run the avocado industry? ›

Avocados, AK-47s, and Narco VATs

Avocado exports from Mexico to the US amount to a $2.8 billion annual tab. In addition to limes, Mexico's infamous cartels levy taxes on the country's avocado growers, and seek to control commodity prices through price manipulation.

How did NAFTA change the way Americans eat? ›

We were able to import new foods, like avocados, for Americans to eat. 2. Why were products like avocados considered a “win-win”? Imported goods helped the Mexican and Canadian economies and Americans got new products to enjoy.

Why couldn t americans get certain produce like avocados from mexico? ›

According to the USDA, the suspension came in response to a security incident made against one of USDA's health inspectors in Mexico and will last for “as long as necessary.” The U.S. also temporarily suspended avocado imports in 2021 after an inspector received a threatening letter, causing prices to spike.

Did Native Americans eat avocados? ›

The avocado was extremely important among the indigenous people of ancient Mesoamerica, as the fruit provided sustenance and possessed mythological powers.

Is it unethical to eat avocado? ›

Eating avocados is fairly unethical. Cartels have infiltrated and corrupted much of the avocado trade in Mexico, leading to instances of violence, child labor, and forced labor. However, in many parts of the industry, Mexican avocado workers still make five times the minimum wage. Eating avocados is very unsustainable.

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