The majority of the U.S. avocado supply originates from Mexico.
Since 2001, U.S. avocado consumption has more than tripled, making avocados a staple in American society, served at both fast-food outlets and fine dining establishments.
The seeds of that growth are firmly planted in Mexico.
In 2024, the USDA estimates that 90% of all avocados consumed in the US are imported from Mexico, amounting to $2.7 billion in imports.
The majority of U.S. avocado production occurs in California, accounting for approximately 90% of domestic production. Hawaii and Florida contribute the remaining percentage. However, California's industry does not fully meet the immense demand for avocados.
Mary Lu Arpaia, a subtropical horticulture extension specialist at the University of California, Riverside, stated, "We're merely a small part of the larger picture."
Since the early 2000s, California's avocado production has decreased in both acreage and yield, as stated by the CAC.
"Arpaia stated that the production cost in California is extremely high due to limited water resources and poor water quality. Additionally, real estate is very expensive."
U.S. agriculture production has been declining, and for the first time in history, imports are surpassing exports.
Richard Sexton, a professor of agricultural and resource economics at the University of California, Davis, stated that Mexico will typically be a productive and cost-effective country.
The avocado industry in Mexico is still growing, with more than 80% of its exports going to the U.S. In 2022, Jalisco became the second Mexican state to meet certain requirements, allowing it to trade its avocados with the U.S. This opened up more opportunities for other farms and additional fruit to flood the market.
Watch the video to learn more.
Business News
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