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Trump's threats are already reflected in the price of avocados

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Mexico is the first exporter of this fruit, whose price grew unexpectedly in response to a possible border closure

Trump's threats are already reflected in the price of avocados

Avocados are an important asset for the Mexican economy, they are the largest exporter in the world, contributing 45% of the international fruit market. In addition, they represent a booming business, Mexico's avocado exports quadrupled between 2000 and 2011. As if that were not enough, the export of avocados from Mexico is highly dependent on the United States, which is the final destination of the 1980s. % of total Mexican production.

Leer en español: Las amenazas de Trump ya se reflejan en el precio de los aguacates

But now, with Donald Trump in power on the other side of the border, the market for avocados is threatened by threats of a border closure. The closing of the border is not speculation, since Trump declared that there is a 'good chance' that he will close the border if Mexico does not intervene to stop the migrant flow to the United States.

According to the Guardian, the closure would not only affect migrants but would complicate trade between the two countries, in which there is $137,000 million in food. In addition, according to the United States Department of Agriculture (USDA), 40% of the fruits and vegetables consumed in this country arrived imported from Mexico.

The price of avocados responds

In response to the border closure, and intensified by the absence of other sources of avocados other than Mexico in the United States, the price of this fruit grew by 34% during the last week.

This is due to the fact that, in response to a possible closure, US retailers increased their purchases of avocados to face the possible shortages that would arise after a closure at the border.

"When it is clear to everyone that there will be less food tomorrow, a bid will be made for what is available," said Lance Jungmeyer, president of the Fresh Produce Association of the United States.

According to the USDA, a box of 25 pounds of avocado was being sold this week at about $ 60, a considerable increase compared to the $ 42 last week and the $ 38 it cost last year.

Also read: Colombian Avocados: The Real Stars of the Super Bowl

The shortage in the supply of avocados could be mitigated if the United States had its own production of avocados, but this industry is only nascent in California, and, also, because of a heat wave last year, its harvest was delayed, therefore, the United States will not be able to count on its own avocados to replace those that would stop arriving from Mexico.

"You could not choose a worse time of the year because Mexico provides almost 100% of the avocados in the United States around this time. California is just beginning and they have very small harvests, they are not relevant now and they will not be for a few more months "declared Steve Barnard, president of the world's largest avocado distributor, Mission Produce, before The Guardian.

Prepare for the absence of avocados

US consumers adore avocados, with a considerable advantage being the main importer of this fruit, buying 77% of those available in the market according to data from the Mexican Ministry of Economy. Also, according to the Datassential market research firm, cited by Bloomberg, avocados appear on almost half of all menus in the United States.

According to the Guardian, after the border was closed, it would take the United States barely three weeks to exhaust all its avocados.

Other goods that could be in short supply include tomatoes, cucumbers, blackberries, and raspberries, all of which come from Mexico.

 

LatinAmerican Post | Pedro Bernal

Translated from "Las amenazas de Trump ya se reflejan en el precio de los aguacates"

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