Three companies engaged in the import and sale of Mexican avocados will have to lay off more than 120 workers in the next two weeks because of the ban on imports of avocado produced in Mexico.
The order to close the border to avocados from Mexico was given by the State Phytosanitary Service (SFE) in early May, amid fears that the disease known as sunblotch, which affects Mexican avocados, would expand.
EF consulted Pure Fruit SA, Interfrutd Corporation and Contracts Fruteros SA to know what contingency measures they would take due to the decision taken by the phytosanitary authorities.
Fall in business
The answer in all three cases was that they were conducting studies and analysing the impact that the ban would have on their business.
However, the companies already have clear numbers on how this ban will affect their finances, which would result in layoffs of workers devoted to the management of avocado in each of the firms.
Randall Benavides, CEO of Pure Fruit said that 60% of their income depended on avocado.
Therefore, he said, if the situation does not improve in the import and sale of fruit, we will have to layoff 50% of our employees in the next two weeks.
Donald Garcia, manager of Interfrutd, said that between 25% and 30% of the company's revenues depended on the avocado.
If the border closure ordered by the Government persists, he said, the company might have to fire at least 100 workers in mid June.
"We are doing an analysis, we still haven't taken a decision because we are waiting to see how to face this situation," he said.
Meanwhile, Loaiziga Manrique, manager of Fruteros Contracts, said the suspension of imports of avocados by the SFE affected 40% of his company's revenues.
"We still have nine tons of avocado in inventory, and that won't last until Monday," lamented the entrepreneur.
Loaiziga's company already fired three people because of the ban and they could fire seven to ten more employees over the next two weeks.
Alternatives
The entrepreneurs said they were evaluating importing avocado from Peru due to the ban on avocado imports from Mexico.
However, they said, while a freight coming by land from Mexico is priced at $3,500, a freight by sea, from Peru, would cost $6,500, which would also hit the finances of their companies.
Source: elfinancierocr.com