Why Mexican avocado exports to the US have been stopped

Key Points:

• Mexico is deploying 1,500 additional troops to Michoacan to enhance security in avocado-producing areas following the U.S. suspension of government operations, including avocado inspections, due to a non-specific threat to U.S. interests.
• The U.S. is a major consumer of Mexican avocados, with over 80% of avocados consumed there coming from Mexico, representing $3.7 billion in sales projected for 2025; suspension of inspections halts imports and could raise U.S. prices.
• Cartel violence and extortion in Michoacan, the main avocado-producing state, have previously caused export pauses, with recent preventive suspension linked to arrests related to extortion cases rather than a specific incident.
• Export suspensions typically last only a few days as they negatively impact both Mexican producers, who pay extortion fees to cartels, and U.S. consumers, while Mexican authorities respond by increasing security and considering conducting inspections themselves.
• Only avocados from Michoacan are affected by the suspension; Jalisco is the other Mexican state authorized to export avocados to the U.S., but its export volume is much smaller.