Bloomberg/Michael Hirtzer: Mexico Hass Avocado Prices Jump 34%, Most in a Decade

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Mexico Hass Avocado Prices Jump 34%, Most in a Decade
By Michael Hirtzer
2 April 2019, 20:43 UTC
Updated on 2 April 2019, 21:42 UTC
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A gauge of Mexican avocado prices is surging the most in almost a decade as buyers weigh the latest rhetoric from Donald Trump on his threat to close the border with Mexico, the biggest supplier of the fruit.

The Hass price from Michoacan, the heartland of Mexico’s avocado production, jumped 34 percent on Tuesday. That would be the biggest one-day gain since April 13, 2009. Prices will keep rising if Trump makes good on his threat, said Roland Fumasi, vice president and senior analyst at Rabobank.

“Avocado prices could easily double or triple if we shut down the border,” Fumasi said by telephone.
Price for Mexican fruit jumps amid Trump's border threats

Prices probably spiked as importers boosted purchases ahead of any potential border issues, Fumasi said. Additionally, a heatwave last year in California delayed the harvest, making the U.S. even more reliant on Mexican supplies. “Because California is late and it’s a small crop, Mexico is accounting for nearly all of our avocados,” he said.

Mexican avocados make up 75 percent to 80 percent of U.S. consumption, and California for about 16 percent, according to data from the Haas Avocado Board. Chile and Peru supply most of the rest.

Once mainly confined to dips and salads, avocado is now seen as a super-food thanks to its nutritional characteristics and smooth texture. Some people even eat their pits roasted.
Who's buying Mexican avocados?

Americans love their guacamole

Source: Commercial Information System, Mexico's Economy Ministry

Note: Percentage out of the total exported volume in kilograms from January to August 2018

— With assistance by Sam Geier, Lydia Mulvany, and Connor Corvino

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