The U.S. government has halted on-the-ground operations in Michoacán, Mexico's largest avocado-growing state, without giving a specific reason. With inspections and approvals required for U.S. exports disrupted, concerns are rising about possible avocado shortages and price increases.
On the 5th, local time, the U.S. Embassy and consulates in Mexico said they would suspend U.S. government operations in Michoacán starting that day, according to Bloomberg and CNN.
The U.S. side described the reason for the halt as a "threat to U.S. interests." It did not specify what the threat was.
Michoacán Governor Alfredo Ramírez Bedolla said the move would suspend the work of U.S. Department of Agriculture employees who inspect avocados for export to the United States.
The Association of Avocado Producers, Packers and Exporters of Mexico (APEAM) said, "Shipments of export avocados are not being approved," adding that each packing house must decide on its own whether to harvest and operate.
For now, only avocados received on the 4th can be processed, with a U.S. Department of Agriculture employee present.
The action comes as Michoacán law enforcement is cracking down on extortion crimes. According to a report released in 2024 by the Global Initiative Against Transnational Organized Crime, local criminal groups regularly demand protection money from avocado producers.
Governor Ramírez Bedolla said, "We are working together to address all concerns and quickly normalize operations," adding, "In the process, we will safeguard Michoacán's development and calm."
Michoacán public security authorities also met with U.S. Department of Agriculture officials to discuss ways to strengthen security for U.S. staff. Authorities plan to expand local public safety operations to protect residents.
Mexico is the world's largest producer and exporter of avocados. The United States also relies on Mexico for most of its import volume.
According to the U.S. Department of Agriculture, the United States imported 1.1 million tons of avocados from Mexico last year. That accounts for more than 80% of total U.S. avocado imports, with an import value of more than $3.2 billion (4.534 trillion won).
Michoacán alone accounts for about 75% to 80% of Mexico's total avocado production. The avocado industry in Michoacán supports more than 200,000 jobs.
However, the United States can also source avocados from Peru and from California. Jalisco, Mexico's second-largest avocado-producing state, can also export to the United States.
David Magaña, an analyst at Rabobank, said, "If this measure is temporary, alternative suppliers will help reduce shortages and limit price increases."
This is not the first time U.S. imports of Michoacán avocados have been suspended.
In 2024, two U.S. avocado inspectors were assaulted and detained at a police checkpoint. The United States then halted imports of avocados from Michoacán for more than a week.
According to market analysis firm RaboResearch Food & Agribusiness, Mexican producers suffered tens of millions of dollars in losses at the time, and in the United States the price of a box of avocados temporarily jumped 40%.
APEAM said it is consulting with the relevant authorities to resolve security issues and reduce industry losses. The U.S. Department of Agriculture did not immediately respond to a request for comment on the import situation.