As the only region that can currently meet the ever-growing demand for avocados in the U.S., Mexico and its fresh imports are contributing to a positive economic impact in both countries. The Avocado Institute of Mexico has released its 2023-2024 Economic Report, which dives into the mutual economic benefits of the Mexico-U.S. avocado trade arrangement.
In the last fiscal year (July 2023 – June 2024 growing season), $3.52 billion of U.S. imports of Mexican Hass avocados contributed the following to the U.S. economy:
- $7.5 billion in U.S. economic output
- $4.2 billion in U.S. GDP
- $2.5 billion in U.S. labor income from more than 42,000 U.S. jobs for American workers
- $1.1 billion in U.S. taxes
There are approximately 35,000 avocado growers in Mexico, the vast majority of which are cultivating on small family farms. With more than ninety packing houses, the collective 2.4 billion pounds of Hass avocados they exported to the U.S. last year resulted in $6 billion in economic output in Mexico4.
"The new data validates the positive economic impact spurred by Americans' embrace of the fruit, the mutually beneficial relationship between our two countries, and the importance of maintaining strong trade ties," said Ron Campbell, Executive Director of the Mexican Hass Avocado Importers Association (MHAIA). "The avocado industry is a source of employment and economic value, and we are committed to continue working with our partners in both countries to ensure the sustainable and responsible growth of this industry."
Heightened economic impact in key U.S. and Mexico states
"Imports of Mexican Hass avocados continue to be pro-growth for the U.S. economy, and historical growth patterns indicate this will likely only intensify over the years," added Dan Hanselka, Extension Program Specialist at Texas A&M University and co-author of the study. "Every dollar of Mexican Hass avocado imports in the fiscal year 2023/24 generated $2.13 in economic output in the U.S., with a more concentrated impact in California and Texas, the country's largest avocado-consuming states."
Together, California and Texas accounted for roughly 20% of the total U.S. economic output in the past year with $965.2 million and $468.7 million, respectively.
The trade relationship has also had a particularly significant influence in the region of Michoacán, Mexico, which in many ways is the heart of the country's agricultural sector. The area has benefited from a higher GDP and the creation of steady jobs in both the growing fields and packing houses.
Boosting U.S. demand for Mexican avocados: A collaborative success
Avocados From Mexico acts as a connecting bridge between countries, bringing together organizations that promote the consumption of Mexican avocados in the U.S. By working with the Mexican Hass Avocado Importers Association (MHAIA) and the Association of Avocado Exporting Producers and Packers of Mexico (APEAM). The collaborative efforts have fueled demand for the fruit, leading to improved quality and record-breaking sales.
For more information:
Ana Ambrosi
Avocados From Mexico
Email: [email protected]
www.avocadosfrommexico.com