The Los Angeles Times ran the story, “Inside the bloody cartel war for Mexico’s multibillion-dollar avocado industry,” November 24, and the Mexican Avocado Producers & Packers Association released the following statement regarding the economic benefits of the avocado industry:
Avocado exports to United States are working under normal circumstances with 22,000 tons (44 million pounds) of exports every week.
Additionally, jobs in Michoacan generated by the avocado industry have increased 106% from 2013 to 2018. This has helped many local residents make a decent salary far from crime and giving them a reason to stay in Mexico and not migrating to the United States.
From their versatility to ample health benefits, there are plenty of reasons to love avocados. Researchers at Texas A&M University have uncovered that avocados are also doing good from an economic standpoint.
The 2018 study concluded that Mexican avocado imports positively impact the American economy and will continue to stimulate economic growth, barring any changes to the state of the import industry.
The Study Setup
Researchers grounded their approach in economic contribution analysis, or the idea that money spent in one region stimulates additional economic activity as it circulates through the economy. They analyzed direct, indirect, and induced effects of Mexican avocado imports on the American economy as a whole using input–output analysis. This technique estimates the economic effects of one industry on state and national economies.
The study measured:
• Jobs added to the American national and state economies.
• The effect of business spending on local household incomes in designated areas throughout the states, or national and state labor income.
• U.S. and state gross domestic product.
• U.S. national and state economic output.
• Taxes paid at the U.S. national and state levels.
Key Findings
• Mexican avocado imports have positively contributed to the American economy.
Avocado imports from Mexico contributed the following to the American national economy during 2017:
• 28,251 U.S. jobs.
• $1.9 billion in U.S. labor income.
• $3.4 billion in U.S. GDP.
• $5.5 billion in economic output.
• $932 million in U.S. taxes.
• Avocado imports create job positions as they make their way through the supply chain.
Avocados generate economic growth as they move inland from U.S. ports through the supply chain. From inspection to advertising, avocados touch many business sectors on their way to consumers, creating jobs as they go.
• Densely populated border states especially felt the positive economic effects of avocado imports.
California added 3,856 jobs and $514 million to its state GDP as a result of avocado imports from Mexico. In Texas, these imports generated 2,313 jobs and contributed $294.6 million to the state GDP.
• Mexican imports are not depressing the price and production of California-grown avocados.
Mexican imports are not causing the prices of California-grown avocados to drop. Instead, they help California meet a consumer demand that it cannot fulfill independently due to water, land, climate, and resource limitations.
Looking Ahead
As long as trade relations between the U.S. and Mexico remain stable, we can expect these economic effects to continue — which means more jobs will be created, and the industry will continue to funnel money into national and state economies.
Note: A previous version of this story had comments from APEAM which were retracted due to some content and translation issues.
