Illustration of Avocado Industry Crisis: International Tensions and Trade Resumed

Avocado Industry Crisis: International Tensions and Trade Resumed

When two US avocado inspectors were assaulted and detained at a police roadblock in Michoacán, Mexico, last month, it triggered a significant international crisis. The US halted all avocado imports from Michoacán for over a week, causing Mexican growers to lose tens of millions of dollars and temporarily increasing the price of avocados in the US by 40%, according to RaboResearch Food & Agribusiness.

After diplomats and agricultural officials from both countries negotiated new security guidelines, the cross-border avocado trade has resumed, with the US Department of Agriculture reporting that exports returned to normal at the beginning of July. However, the incident highlighted the fragility of the avocado industry and the instability in a region heavily influenced by cartel power.

US and Mexican officials are now considering changes to the strict processes that regulate how avocados make their way to American markets. Industry groups and advocates are urging for more oversight to meet growing demand.

Avocados, often called “green gold,” are a lucrative business. Of the nearly 2.7 million metric tons grown in Mexico last year, 81% were exported to the US, valued at $2.7 billion. Nearly 75% of Mexican avocados come from Michoacán, a state with fertile volcanic soil ideal for farming, but also plagued by cartel violence and corruption.

A report from the Global Initiative Against Transnational Organized Crime noted that the avocado market in Michoacán is deeply intertwined with violent groups and corrupt officials. Criminals often burn and log protected forests and bribe officials to allow commercial activity. The report also found that cartels regularly extort producers, and local police forces often act as security for avocado farmers. Heavily armed militias known as “autodefensa” groups have also formed to patrol farms.

In response to the inspectors’ detention, Mexican officials downplayed the incident, claiming it was unrelated to organized crime. The inspectors, Mexican citizens working for the USDA Animal and Plant Health Inspection Service, were stopped by police officers protesting a pay issue, according to Michoacán’s governor. However, US Ambassador to Mexico Ken Salazar stated that the men were assaulted, and an investigation has been opened.

Since the US began importing avocados from Michoacán in 1997, APHIS employees have inspected orchards to ensure they are pest-free. Around 100 inspectors operate in the state, leaving them vulnerable to corruption and violence. In 2022, Mexican avocado exports were halted after a US inspector received a threatening phone call.

Mexican leaders have since suggested altering the bilateral agreement to allow the Mexican government to take over inspections. President Andres Manuel Lopez Obrador criticized the US decision to halt exports as “arrogance.” Mexican Agriculture Minister Victor Villalobos claimed the Mexican government was prepared to conduct inspections to avoid export interruptions.

The US State Department and USDA are considering the proposal, but critics argue that it would undermine the integrity of pest-free certifications. US and Mexican officials are also discussing a policy to block avocado exports from illegally cleared lands, but have yet to decide on a legal mechanism to enact it.

In a letter to US senators, the USDA noted that its inspectors lack the authority to certify around this issue, instead pointing to support from the US Forest Service in monitoring deforestation in priority regions.

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