Mexico has reached an agreement with the U.S. to provide security guarantees to U.S. inspectors that will certify Mexican avocados for export. Inspections were stopped last week following a threat to one of the U.S. inspectors in Michaoacan’s western state. There, growers are regularly extorted by drug cartels.
The U.S. Department of Agriculture provided more information Thursday about the threat. The U.S. Department of Agriculture released more details Thursday about the threat to an inspector.
According to the USDA statement, the inspector “questioned the integrity of a shipment and refused to certify them based on concrete problems.” To verify that Mexican avocados don’t contain pests that could damage California avocado orchards, the inspectors have arrived in Mexico.
Only Michoacan in Mexico is certified pest-free and can export avocados to America. Many reports have indicated that Mexican packers are trying to claim they are from Michoacan by buying avocados from non-certified states.
It is the honest growers and their workers who are suffering.
After losing their jobs, avocado pickers gathered on the roadside of Uruapan in Michoacan to ask for donations. They held signs that read “Voluntary donations” or “We make our livelihood from avocado picking,” and waited for motorists who would drop their spare change in the buckets they had.
One worker said, “Since Wednesday last week we haven’t picked anything,” referring to the violence in the state. He refused to identify himself. “In the meantime you die from hunger.”
Avocados that have been inspected may still be shipped north. However, signs were seen Thursday that supplies could tighten. Companies that import avocados might need to look beyond Mexico which supplies approximately 80% of U.S. fruit imports.
Miguel Gomez, professor of applied economy and management at Cornell SC Johnson College of Business, stated that he believes it will increase the prices in the United States.
Jack Hartung, chief financial officer at Chipotle, stated in a statement, “We are working closely with suppliers to navigate this challenge.” We have inventory from several of our sourcing partners, so we will continue to monitor the situation and adjust plans accordingly.
Gomez believes that any shortage will be temporary.
Gomez stated that “I believe the disruption to the market will be short” because avocados from Peru will arrive in late March or early April. He also said that they were going to do everything necessary to begin shipping avocados earlier, perhaps even in March.
Avocados are already being shipped to the United States by Chile, Colombia, and Peru. However, these quantities are only a fraction of Mexico’s. This could change.
“I was speaking with some avocado buyers domestically and I moved on to the future. Gomez said that they are aware they must diversify their suppliers. They realized it was very risky to rely on one source.
This week, the avocado growers association and Michoacan officials met with U.S. officials in order to discuss security measures for U.S. inspectors.
Michoacan Gov. wrote, “We are working hard to restore avocado exports as quickly as possible.” Alfredo Ramirez Bedolla.
However, the situation is not good for avocado growers in Michoacan. Avocados can be left on trees for a limited time, but once harvested, they must be shipped quickly.
“We have the uncertainty. If it (the export product) goes into the Mexican market, all the way to Mexico, prices will fall,” stated Jose Manuel Garcia Tovar, avocado buyer and distributor. “So, we’re in a situation where growers may want to harvest.
It remains to be seen how Americans will react to rising prices. Although there are concerns about deforestation and violence from the avocado boom, the fruit is now a staple in the United States. The per capita avocado consumption has tripled to 8 pounds per person since 2001.
“The moment you eat avocado toast from someone at brunch, it’s like hitting the heart of many American families who rely on Sunday brunch. “So all of a sudden we’re getting kind of question as to… where the priorities here?” stated Desiree LeClercq of Cornell’s School of Industrial and Labor Relations.
This raises the question of whether Americans are willing to pay more for avocados that aren’t associated with violence, drug cartels, or deforestation.
LeClercq said, “It’s asking Americans to ask themselves, are they willing to pay more for a high-quality product or do their values dictate that they can slice their toast according to the recipe?” “And I believe that consumers are becoming more informed about how these products are made. However, it remains to be seen if this will trickle down to consumer behavior.
