Report: Mexican avocado import contributions to U.S. output rise 273%
U.S. imports of Mexican hass avocados have contributed significantly to the U.S. economy as the fruit travels the supply chain and stimulates market activities, according to a September report by Gary W. Williams and Daniel Hanselka of Texas A&M University.
According to the report, contributions include:
- $6.5 billion in output or spending;
- $4.0 billion to the U.S. GDP (value-added);
- 33,051 jobs for American workers;
- $2.2 billion in labor income; and
- $1.1 billion in taxes.
The data shows the rise of this commodity is sharp compared to prior years.
The contribution of avocado imports to total U.S. output increased 273%, from $1.7 billion in 2012 to $6.5 billion in fiscal year 2019-20, according to the report.
At the same time, the contribution of those imports to U.S. GDP (value added) has increased by nearly 230%, from $1.2 billion to $3.99 billion.
The contributions to U.S. labor income, U.S. tax revenues and employment have also registered dramatic increases: 219%, 558% and 194%, respectively.
U.S. growers have also benefited from higher price points and a larger market for their products as a result of the growing demand for avocados, the report showed.
“The numbers of the report show the expansive growth in economic benefits that avocado imports from Mexico have provided to the U.S.,” Alvaro Luque, CEO of Avocados From Mexico, said in the release. “Despite the challenges rocking the foodservice industry this year, the avocado category has continued to grow in volume and economic value.”
The record-breaking volume year for avocado imports is driven by the skyrocketing demand: avocado consumption has grown more than 600% between 1989-90 and 2019-20, a 10% average annual growth rate over that period, according to the report.
The unique microclimate, volcanic soil and timely rainfall of Michoacán, Mexico, allows avocados to be grown year-round, which is why its orchards supply nearly 82% of the avocado imports into the U.S.
