Michoacán agrees to resume its avocado shipments to the U.S.

November 5

Starting this Thursday, November 5th, avocado processing operations will resume in the state of Michoacán. The restart of activities stems from an agreement between packing plants and workers, announced by Mexico's Ministry of Agriculture and Rural Development. This consensus resolves the conflict caused by low prices that had impacted the avocado harvest.

However, the recovery of supply will depend on how the return to the orchards materializes. In its November 4 update, Markon Cooperative noted that while the agreement allows the harvest to resume, the participation of growers and the volumes that could be obtained remain to be confirmed.

An agreement to unblock operations

The center of the strike was the low prices farmers received per kilo of avocados. According to the Secretary of Agriculture, Columba López, in some areas they were paid 13 Mexican pesos per kilogram and did not exceed 20 pesos.

This price range, according to the producers, was insufficient to cover production costs, a difficulty that also affected the wages of day laborers and cutters.

Columba López reported that the agreement was reached on the night of November 3 and that exports will resume on the 5th. However, the reports consulted do not specify what price the producers will receive or whether their request to establish a minimum value per kilogram was accepted.

Restarting the harvest does not immediately replenish inventories.

During the widespread harvest shutdown in Michoacán, Jalisco continued operating normally. However, according to Markon's update, its volumes were insufficient to offset the reduced availability, and U.S. inventories suffered a significant decline.

Although Jalisco continued to operate normally, the volume was insufficient to compensate for the reduced availability.

Once harvesting resumes, the fruit will need to go through picking, packing, transport, ripening, and distribution. This process will take several days before availability begins to recover, the cooperative warns. Therefore, the focus will be on the continuity of operations and how much volume can be incorporated into the supply chain.

Prices could remain firm

The Marko cooperative anticipates that prices will remain high in the short term, even with the resumption of the harvest. Their analysis links this downward pressure on prices to reduced inventories, limited activity in the fields, and rising avocado prices in Mexico.

For buyers, the cooperative recommends placing orders in advance, especially for ripened fruit programs, and maintaining flexibility regarding sizes and specifications.

The agreement allows shipments from Michoacán to resume. However, the recovery of supply in the United States will be gradual, depending on how many producers return to harvesting and how much fruit reaches the packing plants and can be shipped to the U.S. market.