California company invests millions into Texas avocado facility
The coveted fruit has been a focus of a proposed tariff earlier this year to pay for a border wall. For 15 years, Index Fresh, a California-based company, has moved avocados from Mexico into the U.S. Their expansion in Texas comes at a time when the Mexican, Canadian, and U.S. governments are preparing to renegotiate the North American Free Trade Agreement (NAFTA).
This makes Dana Thomas, the company’s president, feel uneasy saying, “I want a climate that is friendly to trade and also I want certainty about what the rules are going to be,” Thomas said.
The price of imported avocado has doubled compared to this time last year to an average of $30 per 22 lbs. according to data from the Mexican government, mostly due to the rising demand and shorter supply.
Any additional price hikes could further hurt business across the board. From imports to distribution to what you pay at the grocery store. Trade officials will have until August to come up with a plan that will satisfy all parties. A difficult task if it is to please everyone from the Mexican farmer to the American businessman.
source: khou.com
