Cinco de Mayo saw US avocado prices soaring

Last week, prices for a carton of 48 Hass avocados hit a high of about $78.75 on average. That reflects the price for avocados coming into the United States from Mexico at the Texas border.

Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

“It’s been high all year … and it’s maintained historic highs,” said Mark Campbell, CEO of ProduceIQ. A number of factors have led to higher prices this year, he said. In February, the US briefly suspended imports from Mexico’s western state of Michoacan after a US official received a threat. Although imports were quickly reinstated, the brief disruption still drove prices up.

Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

A few months later, Texas governor Greg Abbott required “enhanced safety inspections” of commercial vehicles entering Texas for a week. That disruption resulted in hundreds of millions of lost dollars and delays in shipments — and raised avocado prices. That’s on top of less rain in the region, which has resulted in lower yields and smaller avocados, said Campbell.

The good news is that prices have already eased off their highs, and could continue to fall.

The News in Charts is a collection of stories from the industry complemented by charts from Agronometrics to help better tell their story.

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