With U.S. president Donald Trump stating there’s a ‘good likelihood’ he will close the U.S.-Mexico border this week if Mexico doesn’t halt immigrants from reaching the U.S., avocado importers and growers are watching the situation closely.
Earlier this week, TheGuardian.com reported that one grower was concerned the U.S. would run out of avocados in three weeks if the border was closed. “You couldn’t pick a worse time of year because Mexico supplies virtually 100% of the avocados in the US right now. California is just starting and they have a very small crop, but they’re not relevant right now and won’t be for another month or so,” said Steve Barnard of Mission Produce in Oxnard, Ca. reported TheGuardian.com.
Unpredictable consequences
“If the border was to shut down--and we hope it stays open--it would be an unprecedented event for Mexican avocados,” says Keith Slattery of Stonehill Produce Inc. in Capistrano Beach. CA. “That makes it impossible to predict impacts and consequences beyond the three-week depletion of existing inventory in the U.S. market pipeline. After that it would be a massive challenge for everyone involved in the deal.”
Photo: Stonehill Produce Inc.
However, others are quick to point out the other sources of avocados. “I am not so sure the U.S. will run out of avocados in three weeks,” says Mark Hurtado of Nogales, Az.-based Harvest Dynamics. “Mexico is not the only avocado supplier. The U.S. has suppliers from Peru, Colombia, Chile, California and Florida. And right now, California has high availability and Michoacán, Mexico has low availability.”
Supplies in question?
Meanwhile at A & A Organic Farms Corp. in Watsonville, Ca., Andy Martin believes it’s anyone’s guess as to how soon the supply would run out should the border close.
“From what our grower is saying, this time of year the avocado trees with the fruit are up in the hills and it is a bit more expensive to harvest. The growers have been pushing for more money since this harvest cost them more. We see a strong market on price lists but then customers report paying much lower so it’s hard to say where the market really is,” says Martin.
He notes that A & A has sold out its last load of organic avocados and are on hold to try and assess the market before sending more avocados.
Photo: OTC Produce LLC.
Prices indeed are on the rise for avocados. “The prices today are at $60.00, but a fall is coming. I estimate that prices will stabilize at $35-$40,” says Jorge Mardones of OTC Produce LLC in McAllen, Tex.
For more information:
Keith Slattery
Stonehill Produce Inc.
Tel: +1 (949) 488-9613)
slattery@stonehillproduce.com
www.stonehillproduce.com
Mark Hurtado
Harvest Dynamics
Tel: +1 (520) 841-6743
mark@harvestdynamicsus.com
http://www.harvestdynamicsus.com/
Andy Martin
A & A Organic Farms Corp.
Tel: +1 (831) 768-0300
andy@aaorganic.com
www.aaorganic.com
Jorge Mardones
OTC Produce LLC
Tel: +1 (956) 651-4501
jmardones@otcproduce.com
http://www.otcproduce.com/