Research Category: Economic impact

Imports of food products are often seen primarily as a threat to domestic producers while the broader economic impacts are ignored. As avocado consumption in the U.S. grows, research has found that imports of avocados from Mexico have had a positive effect on the U.S. economy. In fact, in 2015 every dollar of avocado imports from Mexico generated $2.31 in U.S. output, $1.41 in U.S. GDP, and $0.79 in U.S. labor income. Additionally, 12.3 jobs were generated per $1 million of Mexican avocado imports.

“The National Economic Benefits of Food Imports: The Case of U.S. Imports of Hass Avocados”  Gary W. Williams & Oral Capps, Jr. & Daniel Hanselka, 2017. “The National Economic Benefits of Food Imports: The Case of U.S. Imports of Hass Avocados,” Reports 285241, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.

Avocados are one of the most important agricultural products in Mexico. They only grow year-round in one state – Michoacán – and most production occurs in small orchards. Mexico is the largest avocado exporter in the world and sends most of its supply to the U.S. where it owns more than 80% of the market share. As demand continues to grow, Mexican producers are looking to increase yields to meet that demand. To do this, producers are coordinating with the Association of Avocado Exporting Producers and Packers of Mexico (APEAM), to improve environmental conditions like healthier soils and access to water.

USDA Avocado Annual Report 19/20  USDA Foreign Agricultural Service