Mexican avocado crossings through Texas expected to increase seasonally
Come check out our article to learn more about how, despite the fact that avocado exports to the US may have steadied, long-term issues are beginning to emerge.
It is no surprise that the demand for avocados has grown substantially over the years. This has been a great boon for avocado growers, but it hasn't been perfect.
Right Now, Supply and Demand Are Roughly Equal
The sheer and seemingly ever rising demand for avocados has put a strain on farmers and shippers in their traditional growing area, Mexico. Moreover, in 2021, a combination of stretched supply lines, migrant laborers' movement restrictions due to the pandemic, and the Atlantic hurricane season have all affected product exports into the US.
Like many goods that enter the US via a land border, the Texas–Mexico border is a key point of egress for avocados into the US. Mexican avocado crossings through Texas are expected to increase seasonally. Trading was moderate on all sizes with price changes occurring daily, largely decreasing as the availability of avocados continues to improve. There is still a wide range of prices, but the overall trend is downward, as volumes have been significantly higher than in prior months.
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The other main border crossing for avocados from Mexico into the US is the California–Mexico border. Movement of avocados from the South District of California is actually expected to decrease as shippers are finishing up harvest for the 2021 season. Trading here has been moderate with supplies concentrated in the hands of too few people to establish a healthy market. The final F.O.B. (Free on Board) price report has been issued for the season.
Demand for Avocados Is Growing
In 2020, the US was by far the world’s largest importer of avocados (by value). The US imported over $2.5 billion worth of avocados, with the Netherlands second at less than half that number, and France at about half as much as the Netherlands. This relatively recent massive demand for avocados has caused problems, which are most pronounced in Mexico. The demand has led to intensive farming, which in turn has led to many of the problems that intensive farming creates. These problems include massive water use—9.5 billion liters of water are used daily to produce avocados—loss of biodiversity, and soil degradation. There have even been reports of infamous Mexican drug cartels getting involved in the avocado trade.
If you manage a small or medium-sized enterprise (SME), it’s likely that your key priority when looking for suppliers will be cost. While this is absolutely understandable, the quality and stability of your suppliers are also very important. This is why many SMEs are concentrating on using organic avocados, as there is also a growing demand from consumers for organic products.
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