Cartel violence in Mexico is threatening to drive up avocado prices in the United States after the US Department of Agriculture (USDA) suspended inspections of the fruit, commonly known as “green gold,” in a key Mexican state due to security concerns.
The suspension followed an assault on two USDA inspectors in an avocado field in Michoacán, Mexico’s largest avocado-producing state. This incident prompted the USDA to halt its inspections last month, highlighting the growing danger posed by cartels.
As demand for avocados has surged in the US over the past few decades, Mexican cartels have expanded their operations beyond traditional drug and human trafficking into the lucrative avocado industry, which generates between $3 and $5 billion annually.
Last week, US Ambassador to Mexico Ken Salazar announced that inspections would gradually resume in Michoacán. However, he emphasized the need to ensure the safety of the USDA’s Animal and Plant Health Inspection Service inspectors before fully resuming operations.
“More work still needs to be done so that the inspectors are safe and can resume inspections and thereby eliminate the impediments to the trade of avocado and mango to the United States from Michoacán,” Salazar stated.
The suspension of inspections has significant financial implications for both countries. According to the report, the region stands to lose an estimated $7 to $10 million per day during the suspension.
Restaurant owners in the US are particularly concerned about the potential impact of an avocado shortage on their businesses. An interruption in the supply of avocados could lead to higher prices and reduced availability, affecting menus and profitability.
As efforts to ensure inspector safety continue, both Mexican and US parties are eager to resume normal trade operations to avoid further economic losses and stabilize avocado prices.
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