Avocados to Get Even More Expensive as U.S. Halts Imports Amid Threats -Breaking
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© Reuters. Avocados to Get Even More Expensive as U.S. Under Threats, Imports are Halted(Bloomberg) — Avocados could get even more expensive as the U.S. temporarily suspends imports from the world’s biggest producing region in Mexico.
The U.S. has paused shipments from Michoacán pending an investigation into a threatening phone call made to one of its inspectors in the city of Uruapan. Mexico is investigating this issue at the moment, President Andres Miguel Lopez Obrador stated in a press conference on Monday. There are some who don’t want the Mexican avocado to enter the United States for economic and political reasons, he said.
“We could see a significant reduction in availability” of avocados in the U.S. and higher prices as a result, said David Magana, senior analyst for Rabobank International in Fresno, California.
More: Guacamole Prices Reach Record Levels Before Super Bowl: Supplies Lines
Avocados are already the most expensive for this time of year in government data going back two decades due to the labor shortfalls, higher production costs and wage hikes that have plagued the broader economy. It’s one of the many products that’s helping to push global food prices closer to a record high.
At the same time, demand for the fruit is booming as Americans eat more guacamole than ever. Per-capita consumption doubled in the 10 years through 2020 to 9 pounds, and could surpass 11 pounds by 2026, Magana said, citing industry projections.
The Haas Avocado Board data shows that Mexican avocados are responsible for approximately 80% of U.S. consumer consumption. California is home to about 16%.
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