Things didn't improve for the Michoacán avocado industry during week 25. The U.S. Ambassador to Mexico, Ken Salazar, maintained the suspension of USDA inspectors' activities for virtually the entire week. The sector most affected by this suspension was undoubtedly the exporters and importers of Michoacán's fruit. Exporters had fruit in refrigeration ready to be shipped the weekend of June 15th; it's estimated that more than 400 shipments were awaiting shipment. Additionally, there was fruit harvested on Friday, June 14th, which was not authorized for packing and therefore remained in field bins. Importers did not receive the product they expected to fulfill their commitments, and, obviously, the price of the fruit rose considerably as demand increased both along the border and in major consumer markets. Much of that fruit that was kept in refrigeration ended up in alternative markets, mainly Canada and the domestic market at discounted prices with heavy losses for exporters, a situation that was never mentioned in the news or social media posts.

On Friday afternoon, June 21, it was announced that loading operations would be authorized to resume on Saturday, June 22, and Sunday, June 23, but only for plants located in the municipalities of Uruapan, San Juan Nuevo, and Ziracuaretiro. A total of 24 packing plants loaded 146 shipments during these two days, plus an additional 100 shipments that departed from the state of Jalisco, for a total of 246. However, this authorization only benefited slightly more than 30% of the certified packing plants in Michoacán, which have been able to resume relatively normal operations since Monday, June 24. The remaining 70% continue to operate without authorization as of Tuesday afternoon, June 25.

Despite the triumphalist and falsely optimistic speeches from both the ambassador and the governor of Michoacán, the conflict remains unresolved. The U.S. embassy's demands for the return of inspectors to all packing plants in the state are unknown, but from what has been observed in the authorized municipalities, the required measures border on the exaggerated and even the ridiculous. However, it seems there is no alternative but to comply.

The ambassador left behind an interesting list of issues after the meetings, which included security, labor, and environmental matters. The coordination capacity of the state and federal governments with the industry represented by APEAM will be tested. Each party will have to fulfill its commitments, but the government's performance will be crucial. Ultimately, ensuring the safety of inspectors and citizens in general is its sole responsibility, while labor and environmental issues are simply a matter of enforcing the law. APEAM was not created for these purposes and its involvement in these matters lacks any legal basis.

It is important to acknowledge the APEAM board, led by Julio Sahagún, for their excellent work in addressing this challenging situation. We hope that those responsible for authorizing the resumption of operations will exercise sound judgment and that this vital industry for Mexico will be fully reactivated as soon as possible.

Sergio Paz Vega

Mexico

sergio.paz@coliman.com