The U.S. government suspended all government operations in Mexico’s western state of Michoacán on August 5, including mandatory inspections required for avocado exports to the U.S., citing a ‘threat to U.S. interests.’
In response, Mexican President Claudia Sheinbaum announced the deployment of 1,500 additional troops to Michoacán on August 7, aiming to enhance security in the state’s avocado-producing regions. The move follows a pattern of recurring disruptions to avocado trade due to cartel-related violence and security threats.
Immediate Impact on Trade
The suspension of U.S. Department of Agriculture (USDA) inspections has halted avocado exports from Michoacán, the primary source of avocados for the U.S. market, which imports over 80% of its avocados from Mexico. The U.S. consumes approximately $3.7 billion worth of Mexican avocados annually, making the disruption a significant economic concern for both nations.
While the U.S. did not specify the nature of the threat, Michoacán Governor Alfredo Ramírez Bedolla stated the suspension was a preventive measure following recent arrests of individuals linked to extortion schemes targeting avocado producers. The U.S. Embassy reiterated a Level 4 ‘Do Not Travel’ advisory for Michoacán, citing risks from terrorism and organized crime.
Background: Cartel Influence and Past Disruptions
Michoacán has long been a stronghold for multiple cartels, including the Jalisco New Generation Cartel (CJNG), designated as a terrorist organization by the U.S. Cartels in the region have historically extorted avocado businesses, with some even operating their own avocado groves. The avocado industry employs 200,000 people in Michoacán, making it a critical economic sector.
This is the third time in four years that U.S. avocado inspections have been suspended due to security concerns:
- February 2022: Inspections paused for nearly a week after a U.S. official received a threatening phone call.
- June 2024: Suspension followed the kidnapping and assault of two USDA employees.
In each prior case, inspections resumed within days, and exports were restored without long-term disruption.
U.S. and Mexican Responses
U.S. Position:
The State Department described the suspension as a precautionary measure to protect American interests, emphasizing the ongoing risks posed by organized crime in Michoacán. The U.S. has maintained a travel advisory warning of terrorism and kidnapping risks in the state.
Mexican Government Actions:
President Sheinbaum framed the troop deployment as a necessary step to restore confidence in the avocado supply chain and prevent economic harm. The Mexican Defense Ministry confirmed the additional military presence would focus on protecting avocado producers and packing plants in high-risk areas.
Economic and Consumer Implications
Analysts warn that prolonged disruptions could lead to higher avocado prices in the U.S. and financial strain on Michoacán’s agricultural sector. The avocado industry has become a lucrative target for cartels, with growers often forced to pay extortion fees or face violence. Some criminal groups have even infiltrated the supply chain by cultivating their own avocado groves.
The U.S. and Mexican governments have not indicated a timeline for the resumption of inspections, leaving the duration of the suspension uncertain. Both sides have expressed a commitment to resolving the issue swiftly to avoid lasting economic damage.