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Mexico: Exports to the United States are not adversely affected despite a 20% fall in production

The nearly 20 percent drop in avocado production in the 2016-2017 season in the state has not affected exports, said Salvador Abud Mirabent, a delegate of the Ministry of Economy in Michoacan.

After stating that Michoacan's avocado export processes to the United States was flowing normally, Abud Mirabent said that the deficiency in supply was due to a cyclical decrease in avocado production, and to the increasing demand for this fruit in the US market.

"More and more dishes in the United States include avocado or guacamole so per capita consumption is increasing. In addition, this was a low production year. As a result of these factors prices skyrocketed," said Salvador Abud.

In the national market, these circumstances translate into the population having difficult accessing avocados, as they are being sold at up to 90 pesos per kilogram. Meanwhile, the increase in costs has not reduced consumption in the US market. 

He said he was confident that, with the start of the 2017-2018 season, prices at local points of sale would balance and that they would be able to satisfy both domestic and international demand. He also said that other parts of the country, which aspire to be part of the export chain to the United States, also produced avocado, which would reduce the pressure on Michoacan orchards. 

"Communications are working well and the market is robust," said Salvador Abud. 

About 85 percent of the nearly 750 thousand tons of Mexican avocado exported to the United States comes from Michoacan, which represents about 2 billion dollars per year for the state.

Michoacan's avocado sector has to get ready for hard times 
Even though this season's low production is due to a cyclical phenomenon that should not generate concern for the state's economy, the entity must prepare for a decrease in avocado production that can compromise the subsistence of the families that currently depend on this economic activity, said the local delegate of the SE. 

An eventual hard season for the avocado sector in Michoacan could be caused by a pest or by natural phenomena such as hailstorms or droughts that affect the avocado production and deprive the state of income. 

"It is necessary for Michoacan to use the 2 billion dollars income made from avocado exports in agricultural projects to face eventual hardships, as we can quickly lose the production that is intended for export because of different events, such as hail, drought, or a pest," Abud Mirabent stated. 

He also reiterated that the state needed companies that add value to the avocado's primary production to continue being competitive and economically profitable.


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