Hass avocado imports to the U.S. have increased the U.S. economic output by 340% in a little more than a decade, according to data in a new study released by the Avocado Institute of Mexico.
The 2023-2024 “Economic Report” highlights the mutual economic benefits of the Mexico-U.S. avocado trade arrangement and continued long-term growth.
The report, which started in 2012 with the help of Texas A&M University, measures the economic contributions of the Mexican avocado industry by adding up jobs, trade benefits and increases to the gross domestic produce, says Ana Ambrosi, director of the Avocado Institute of Mexico, for Avocados From Mexico. In the first report, the U.S. imported roughly 1.2 billion pounds of avocados, which was about 60% of the market share. That figure has grown to 2.5 billion with this latest report, or about 80% of the market share.
“Avocado imports from Mexico to the United States are really a growth engine that delivers economic output, jobs and trade benefits for both countries and for both avocado-producing regions in Mexico — Michoacán and Jalisco — but also in the U.S.,” Ambrosi said. “It is really something that has been driven by the growth of the avocado industry in the U.S., but specifically by the growth of Mexican avocado imports in the U.S.”
Avocados From Mexico brings together organizations that promote the consumption of Mexican avocados in the U.S. including the Mexican Hass Avocado Importers Association and the Association of Avocado Exporting Producers and Packers of Mexico.
Ambrosi said retail purchase frequency has shown a 18% increase since 2016 and a 50% increase in foodservice menu penetration since 2013. Health benefits, population changes, successful marketing campaigns and consumer trends helps fuel that growth, she said.
“The strategy for Avocados From Mexico has never been getting more market share, it is expanding the market so that the pie is bigger for everybody,” Ambrosi said.
The economic report details the impact of $3.52 billion in U.S. imports of Mexican hass avocados on the U.S. economy, which includes:
- $7.5 billion in U.S. economic output.
- $4.2 billion in U.S. GDP.
- $2.5 billion in U.S. labor income from more than 42,000 U.S. jobs for American workers.
- $1.1 billion in U.S. taxes.
“Imports of Mexican hass avocados continue to be pro-growth for the U.S. economy, and historical growth patterns indicate this will likely only intensify over the years,” Dan Hanselka, extension program specialist at Texas A&M University and co-author of the study, said in a news release. “Every dollar of Mexican hass avocado imports in the fiscal year 2023-24 generated $2.13 in economic output in the U.S., with a more concentrated impact in California and Texas, the country’s largest avocado-consuming states.”
California and Texas accounted for roughly 20% — or $1.43 billion — of the total U.S. economic output in the past year.
The report said the U.S.-Mexico trade relationship significantly impacts the Michoacán region, which has seen a higher GDP and steady jobs in the fields and packinghouses. The 35,000 Mexican avocado growers — the majority on small family farms around 3 acres — and 90 packinghouses resulted in $6 billion economic output in Mexico.
“The new data validates the positive economic impact spurred by Americans’ embrace of the fruit, the mutually beneficial relationship between our two countries, and the importance of maintaining strong trade ties,” Ron Campbell, executive director of the Mexican Hass Avocado Importers Association, said in a news release. “The avocado industry is a source of employment and economic value, and we are committed to continue working with our partners in both countries to ensure the sustainable and responsible growth of this industry.”
