A lot has happened in the avocado industry lately. Avocado prices hit record highs ahead of the Super Bowl last Sunday, and just a few days ago the USDA announced that avocados imported from Mexico would be suspended amid a threatening phone call, received by an official.
Flag on the play – avocado prices hit records highs
Last Sunday was the Super Bowl, one of the biggest sporting events of the year, and is also the biggest day for avocado consumption (aka guacamole dip) in the U.S. Avocado prices have recorded a 59% year-over-year price so far in February, with the average price of a Hass avocado (the most popular) at $1.24 compared to 78 cents last year, according to Freightwaves.
There are a few reasons for these record high numbers on avocados including the supply chain congestion, labor shortages, and the rise of production costs as avocado production in Mexico is down about 8% this growing season, the USDA reported. In addition, freight costs have not helped matters, as the price to ship an avocado to the U.S. is not ideal, up almost 50% for some lanes.
USDA suspends avocado imports from Mexico
Last Saturday the USDA suspended avocado imports from Mexico because a U.S. inspector received a threat on his phone, while carrying out inspection work, in the Mexican state of Michoacán. We do not know what was said in the phone call, as of now, but the avocado imports are suspended until further notice. An investigation is underway to assess the situation and figure out the necessary measures needed to take for the safety of the workers. This suspension is significant as Michoacán is one of the only two states in Mexico that has approval to export avocados to the U.S., according to Freightwaves.
This is not the first time a situation like this has occurred in Michoacán. Back in 2019, investigators for the USDA were threatened at gunpoint after they canceled the certification of an avocado farm, NPR reported. Avocados in Mexico are commonly known as “green gold” because of how much money they bring in. According to NPR, exports last year were close to $3 billion. This suspension definitely financially hurts farmers and packers, who can expect to see a significant income loss. This also has the impact for consumers in the U.S. to see less avocados. Alessandro Biggi, a co-owner of Avocaderia, told Bronx News 12 that his restaurant goes through about 4,5000 avocados daily and while he hasn’t seen a huge impact regarding this as of yet, he is preparing for the potential this could cause.
So, what happens now?
Of course, safety is the priority here and the USDA will do everything they can to make sure the safety of their inspectors comes first. It will be interesting to see how this will truly impact U.S. consumers and if avocado prices will continue to rise amidst this shortage from the suspension. Contact us today if you have an questions!
Recent Comments