The U.S. has seen a notable increase in avocado consumption, with figures from the U.S. Department of Agriculture indicating a tripling of intake since 2001. This surge in demand finds its roots in Mexico, which supplies approximately 90% of the avocados consumed in the U.S., amounting to an estimated import value of $2.7 billion for 2024. Despite being a producer, U.S. contributions, led by California with 90% of domestic output, fall short of meeting the national demand.
Mary Lu Arpaia, a subtropical horticulture extension specialist at the University of California, Riverside, acknowledges California's minor role in the broader context due to high production costs, water scarcity, and expensive real estate. The state has witnessed a decline in avocado production since the early 2000s. This scenario reflects a broader trend in U.S. agriculture, with imports surpassing exports for the first time, as noted by the USDA.
Mexico's competitive advantage in avocado production is highlighted by Richard Sexton, a professor at the University of California, Davis. The growth of Mexico's avocado industry is underscored by Jalisco's recent eligibility to export to the U.S., indicating potential for increased market supply.
Source: cnbc.com