Posts Tagged “avocado imports”
DALLAS — Imports of Mexican Hass avocados continue to make substantial contributions to the U.S. and Mexican economies according to the latest economic contribution analysis conducted by Texas A&M University1 during the 2021-2022 growing season. Since 1997, the avocado supply from Mexico in the U.S. has jumped to more than 2 billion pounds annually1, and more than 4 billion pounds in the last two years alone2 – fueled by consumers’ love of the healthful fruit while also positively benefiting U.S. national and state economies.
The economic analysis1 identifies numerous contributions from U.S. imports of Mexican Hass avocados to the U.S. economy as avocado trades move through the food supply chain and stimulate various market activities. The contributions include:
- $11.2 billion in economic output
- $6.1 billion to the U.S. GDP (value-added)
- 58,299 U.S. jobs
- $3.9 billion in labor income
- $1.3 billion in taxes
“The new data is a testimony to the positive impact the trade relationship between the two countries can have on the overall economies,” said Ron Campbell, Executive Director of the Mexican Hass Avocado Importers Association (MHAIA). “The analysis by Texas A&M University clearly shows how the collaboration between the Association of Avocado Exporting Producers and Packers of Mexico (APEAM) and MHAIA is contributing not only to the economic growth of both nations, but also to a localized impact within communities through added jobs, labor income and taxes.”
When comparing results from previous years, this new report reveals the persistent growth and importance of Mexican avocado imports to the U.S. economy. The contribution to total U.S. output increased nearly 560% from $1.7 billion in 2012 to $11.2 billion in 2022. At the same time, the contribution to U.S. GDP (value added) has increased by nearly 410% from $1.2 billion in 2012 to $6.1 billion in FY 2022. The contributions to U.S. labor income, U.S. tax revenues, and employment from 2012 to FY 2022 have also registered dramatic increases3 (465%, 665%, and 418%, respectively).
“The avocado import growth is attributed to two factors – dramatic growth in U.S. demand for avocados and equally dramatic growth in U.S. import supply,” said Dr. Gary Williams, Emeritus Professor at Texas A&M University. “U.S. per capita consumption of avocado fruit has grown to more than 9 pounds1 and promotion programs like Avocados From Mexico have been instrumental in increasing avocado consumption in the U.S.”
The growth of Mexican avocado imports has also had a positive impact on growers in the U.S. and Mexico. The Texas A&M University analysis shows domestic avocado growers have benefited from higher price points and a larger market for their products. In Mexico, avocado farming continues to be a feasible and reliable business venture as the Mexican avocado industry creates approximately 78,000 direct and permanent jobs and more than 300,000 indirect and seasonal jobs, with more than 30,000 growers and 74 packers.
“It’s rewarding to see the economic impact Mexico’s strong partnership with the U.S. has had in meeting the ever-increasing demand for Avocados From Mexico. This partnership has become an economic engine that supplies the growing demand for avocados in the U.S. and opens opportunities for small avocado farmers in Mexico that allows them and their families to thrive,” said Alvaro Luque, CEO of Avocados From Mexico (AFM).
Avocados From Mexico represents a unique collaboration between the two countries: AFM is a non-profit marketing organization that brings together the Mexican Hass Avocado Importers Association (MHAIA) and the Association of Avocado Exporting Producers and Packers of Mexico (APEAM) to promote the consumption of Mexican avocados in the U.S. This has helped fuel the United States’ love for the avocado fruit and builds a bond which benefits both countries economically.
This partnership also benefits consumers. Through AFM, consumers receive healthful avocados that are the freshest, arriving from Mexico in three to five days, and are the highest quality product, with every avocado exported to the U.S. meeting strict dry matter testing requirements. The dry matter test ensures avocados in the U.S. have an adequate oil percentage, which provides the fruit with optimal consistency and delicious taste. The microclimate, volcanic soil and timely rainfall of Michoacán, Mexico, allows avocado trees to bloom year-round in Michoacán, the only region sending Hass avocados to the U.S. 365 days a year. Now, with the recent addition of avocados from the Mexican state of Jalisco, the industry’s ability to meet year-round demand of avocados in the U.S. is further enhancing. Hass avocados now comprise about 95% of all U.S. avocado consumption and are the most widely available1.
A deep dive into all facets of the Mexican avocado industry is available at the Avocado Institute. The one-stop digital resource was created by the parent organizations of AFM, the Association of Avocado Exporting Producers and Packers of Mexico (APEAM) and Mexican Hass Avocado Importers Association (MHAIA).
About Avocados From Mexico
Avocados From Mexico (AFM) is a wholly-owned subsidiary of the Mexican Hass Avocado Importers Association (MHAIA), formed for the purpose of advertising, promotion, public relations and research for all stakeholders of Avocados From Mexico. Under agreements, MHAIA and the Association of Avocado Exporting Producers & Packers of Mexico (APEAM) have combined resources to fund and manage AFM, with the intent to provide a focused, highly- effective and efficient marketing program in the United States. AFM is headquartered in Irving, Texas.
1 2022 Update: The Economic Benefits of U.S. Avocado Imports from Mexico
This analysis utilizes the Impact Analysis and Planning Model (IMPLAN) to measure the jobs, revenues, wages and taxes generated by the imports along the value chain on the national and state economies. IMPLAN is an input-output model of the entire U.S. economy that captures the relationships between industries and estimates the economic effects (direct, indirect, and induced). The IMPLAN model reports on four specific types of economic effects: employment contribution, labor income, value-added, and output or gross sales contribution.
2 Hass Avocado Board Volume Data
3 Economic Benefits of the Expansion of Avocado Imports from Mexico, February 2014
By Brandon Demack, ALC McAllen
On the Saturday before Super Bowl Sunday, avocado imports from Mexico into America were put to a complete halt after threatening messages were sent to a United States plant safety inspector’s official phone.
The avocado industry is another victim of the turf battle between the cartels in the western parts of Michoacán and will put a strain on avocado imports into the United States for the foreseeable future. The U.S. health inspector was carrying out inspections in Michoacán when the threat was received, but luckily for consumers, it was the day before the Super Bowl so all shipments of avocados for Super Bowl parties and restaurants were already shipped and weren’t affected.
Avocados are considered “green gold” in Mexico, as it is a multibillion-dollar business and the industry even broke records in 2020 to become the world’s largest producer of “green gold.” Unfortunately, however, as the growth continues to rise, so does the threats from the nine identified cartels operating in the area.
In response to the issues going on with cartels, farmers have been starting to arm themselves and establish self-defense groups to combat this to the reluctance of Mexican President Andrés Manuel López Obrador. This violence and issues in Michoacán will hopefully subside sooner than later.
The U.S. responded to the threatening messages by putting more security measures in place for inspectors. On February 18, 2022, it was announced that the inspection of avocados in Michoacán would resume. The rapid response to the threat shows the importance of a working supply chain between Mexico and the U.S.
It would have been hard to fill the large gap left by the lack of avocados coming from Mexico. Mexico provides around 80% of avocados consumed in the U.S. and a longer ban would have drastically impacted the supply of avocados in the U.S. With the resumption of imports, consumers do not have to worry about a shortage or price hikes and can continue to enjoy avocados.
Brandon Demack has been with the Allen Lund Company since July 2011. He first started in the Dallas office and in March of 2019 he transferred to the McAllen office becoming the operations manager of produce. Demack attended the University of North Texas with a Bachelor of Science in Logistics and Supply Chain Management.
Mexican avocado exports to American companies will hit 78,000 tons in preparation for Cinco de Mayo, the biggest Mexican celebration in the U.S.
The event is a commemoration of Mexico’s victory over France at the Battle of Puebla on May 5, 1862.
The Mexican avocado imports this year is a 25 percent increase over this time in 2018 when 58,730 tons of the fruit was imported. The big boost is being attributed primarily to greater promotions by retailers.
Mexican exports over 80 percent of their avocados to the U.S. each year.
The Mexican state of Michoacán exported 121,0908 tons of avocado to the U.S. for the Super Bowl LIII.
In the U.S., this celebration has become a time where Mexican people celebrate their heritage. It is so big and important that it gets confused with the celebration of Mexico’s Independence.
Mexican avocado, other produce through South Texas – grossing about $4900 to New York City.
Florida avocado shippers expect to harvest smaller volumes during the latter part of their season.
Peak Florida volumes are July and August although the region continues to ship fruit through February. Late season loadings will be 10% lighter than earlier season shipments.
Overall, the deal, which typically begins in early June, is expecting to ship about 1 million bushels, lower than last year’s 1.2 million bushels
Chilean avocado shipments to the U.S. should be light again this season as they were in 2014-15 season.
It was September before any Chilean avocado imports reached the U.S. About 1.1 million pounds of Chilean avocados arrived the week of Sept. 6, with 3.3 million pounds expected the week of Oct. 4 and 4.7 million boxes the week of Oct. 18.
But even when Chilean volumes hit 4.7 million boxes, they will be dwarfed by an estimated 37 million boxes that week from Mexico. with the vast majority of it crossing into South Texas. The Chileans have developed a good domestic market for avocados and have been exported more to Europe.
Mexican volumes, primarily crossing the U.S./Mexico border at McAllen, TX, will be huge throughout the season. California is expecting a big crop in its upcoming season.
In August, Mexico shipped about twice as many avocados as it did in August 2014, with September volumes forecast to be up 50%.
By the end of 2015, a projected 2.1 billion pounds of avocados will have shipped in the U.S., 14% more than last year. And with the massive growth in Mexico, shippers can meet demand even if Chile winds up taking another largely hands-off approach to the U.S. market this season.
Mexican fruit and vegetable imports through South Texas – grossing about $2100 to Atlanta.