The Background of the US Avocado Crisis Amid Threats from Mexican Crime Organizations
[Asia Economy Reporter Cho Hyun-ui] The U.S. government will resume imports of Mexican avocados after a 10-day suspension.
The New York Times (NYT) reported on the 19th (local time) that the U.S. Department of Agriculture (USDA) made this decision the day before. The USDA stated in a press release, "We have strengthened safety measures for local inspectors in cooperation with the Mexican government," and announced, "Imports of Mexican avocados will resume starting on the 21st."
Earlier, on the 11th, the U.S. government suspended all local quarantine procedures after a USDA employee dispatched to Michoac?n, Mexico, to conduct quarantine work received threatening phone calls. The NYT reported, "The specific details of the threats made against the USDA employee have not been disclosed."
In the U.S., avocado prices fluctuated due to the suspension of Mexican imports. According to Bloomberg News, avocado prices in Chicago rose by 15% on the 15th. The surge in demand for avocados during the Super Bowl, combined with supply shortages caused by logistical difficulties, had already driven prices up by nearly 60 to 90%. U.S. retailers scrambled to secure California-grown avocados, which are up to 30% more expensive than Mexican ones, leading to what has been called an "avocado crisis."
Since allowing imports of Mexican avocados in the 1990s, the U.S. has conducted safety inspections in Mexico to protect domestic avocado farms from foreign infectious diseases. Only avocados that pass quarantine are imported, so the suspension of quarantine effectively means a halt in imports. In 2019, there was also a threat incident against U.S. inspectors in Michoac?n, which led the U.S. to consider suspending imports at that time.
Michoac?n is a region where drug cartels have significant influence, and criminal organizations have extended their reach into the lucrative avocado industry. The NYT explained, "As local farmers earned substantial profits from avocado production and exports, criminal organizations seeking to diversify their illegal income sources took an interest."
These criminal groups demanded protection money from avocado farmers and resorted to kidnappings and other acts if their demands were not met. Unable to endure the oppression, some farmers formed vigilante groups, armed themselves, and guarded their farms.
Hot Picks Today
"Heading for 2 Million Won": The Company the Securities Industry Says Not to Doubt [Weekend Money]
- "Do We Need to Panic Buy Again?" War Drives 30% Price Surge... Even the Bedroom Feels the Impact
- "Student ID Rentals Reach 500,000 Won... Black Market and Line-holding Services Surge"
- "Anyone Who Visited the Room Salon, Come Forward"… Gangnam Police Station Launches Full Staff Investigation After New Scandal
- Jay Y. Lee Bows His Head: "I Will Take All the Blame"... Apologizes for Samsung Labor-Management Conflict
The Mexican Association of Avocado Export Producers and Packers, which includes about 29,000 avocado farmers and 65 packing companies in Michoac?n, proposed the establishment of a security unit to support avocado exports in response to the U.S. government's decision to resume imports. Both countries agreed to this proposal, which includes security plans from the Michoac?n government, but specific details have not been disclosed.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.