The avocado industry faced a major setback when two US avocado inspectors were assaulted and detained at a police roadblock in Michoacán, Mexico. This incident caused the US to halt avocado imports from the region for over a week, leading to significant financial losses for Mexican growers and a 40% spike in US avocado prices.
After intense negotiations between diplomats and agricultural officials from both countries, new security guidelines were established, allowing avocado exports to resume. However, this episode highlighted the fragile nature of the avocado industry and the significant risks associated with it.
Avocados: The 'Green Gold' of Mexico
Avocados, often referred to as "green gold," are a lucrative business. In 2023, Mexico produced nearly 2.7 million metric tons of avocados, with 81% of the exports heading to the US, valued at $2.7 billion. Michoacán, a state known for its fertile volcanic soil, produces nearly three-quarters of Mexico's avocados. However, this region is also plagued by cartel violence and corruption.
Cartels and Corruption in Michoacán
The avocado market in Michoacán has long been intertwined with violent cartels and corrupt officials. Cartels extort producers through protection schemes, while local police and militias provide security for avocado farms. This complex relationship allows criminal groups to profit from the avocado industry.
Recent Incidents and Security Concerns
In June, two US inspectors were detained by police protesting pay issues. While Mexican officials downplayed the incident, US authorities reported that the inspectors were assaulted. This led to a temporary halt in avocado imports, echoing a similar incident in 2022 when exports were stopped due to a threatening phone call to a US inspector.
Rethinking Inspection Processes
Following these incidents, Mexican leaders have proposed allowing the Mexican government to take over the inspection process. However, US officials and industry groups are skeptical, fearing that such a change could compromise the integrity of avocado certifications and harm US farmers.
Addressing Illegal Deforestation
Discussions have also resumed around blocking the export of avocados grown on illegally cleared lands. Advocacy groups have used satellite imagery to document widespread deforestation in Michoacán, prompting calls for stricter regulations. However, finding a legal mechanism to enforce such a policy remains challenging.
Future of the Avocado Trade
As demand for avocados continues to rise, both US and Mexican officials are working to improve the security and integrity of the avocado supply chain. With new security measures and ongoing discussions about regulatory changes, the goal is to ensure a stable and safe flow of avocados from Mexico to the US.
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