Ban On Avocado Imports From Mexico Could Mean Higher Prices At Bay Area Grocery Stores
SAN FRANCISCO (KPIX) -- Avocado lovers may soon see a price jump at the supermarket. A threat on a worker has prompted a ban on avocados imported from Mexico.
The current inventory and price of avocados in the US should remain stable for at least a week, as the suspension of imports from Mexico enters its fourth day.
"I would think the more proactive retailers will begin to adjust prices or take action, during this week," said Mark Campbell Co-Founder of ProduceIQ, an online marketplace for fresh produce.
The US Department of Agriculture Animal and Plant Health Inspection Service (USDA-APHIS) suspended the imports of avocados from Michoacan beginning February 11, after an employee received a "threatening call" on their "official work phone." No other details about the verbal threat were made public.
"We are working with the Mexican government to guarantee security conditions that would allow our personnel in Michoacan to resume operations," the agency said.
The U.S. imports its vast majority of avocados, about 80%, from Michoacan. And the suspension has significant implications on the industry, as activity from 300,000 workers exporting 3 billion pounds a year, have largely grinded to a halt.
"The suspension will remain in place for as long as necessary to ensure the appropriate actions are taken to secure the safety of APHIS personnel working in Mexico," said APHIS.
According David Magaña, Vice President and Senior Analyst at Rabo Research, specializing in fresh produce and tree nuts, the avocados will stay unharvested on the tree, where they can be stored safely for several weeks.
"We will not see fruit going bad on the tree. However, it will have an impact in terms of the income for the families that depend on the industry," said Magaña.
Magaña said his sources in the Mexico indicate many interested parties are working behind the scenes to restart the imports within two weeks.
"The industry is expected to solve the situation soon. Probably we will see higher availability of avocados later. If not this month, next month," said Magaña.
On Monday at Safeway in Willow Glen, large avocados from Mexico were for two for $5. At Whole Foods in Campbell, medium Hass avocados from Mexico were $1.79 each.
After the current US inventory is purchased and consumed, supply will begin to tighten, and prices will trend upward. Specialty or high-end retailers will carry domestically grown avocados, but at a premium, on top of historically high prices.
"This suspension will exacerbate the problem further, and will be able to test what the avocado market can do and what the consumer will bear, or what the chef will be willing to pay," said Campbell. "If you're an avocado lover, it certainly would make sense to stock up. Though, I don't know that I need to be pushing a run on avocados right now. I would generally say everyone should be eating more produce."
