Imports of Avocados From Mexico Contribute $6 Billion to U.S. GDP, Generate $11.2 Billion in U.S. Economic Output
DALLAS, Sept. 29, 2022 /PRNewswire/ -- Imports of Mexican Hass avocados continue to make substantial contributions to the U.S. and Mexican economies according to the latest economic contribution analysis conducted by Texas A&M University1 during the 2021-2022 growing season. Since 1997, the avocado supply from Mexico in the U.S. has jumped to more than 2 billion pounds annually1, and more than 4 billion pounds in the last two years alone2 – fueled by consumers' love of the healthful fruit while also positively benefiting U.S. national and state economies.
The economic analysis1 identifies numerous contributions from U.S. imports of Mexican Hass avocados to the U.S. economy as avocado trades move through the food supply chain and stimulate various market activities. The contributions include:
$11.2 billion in economic output
$6.1 billion to the U.S. GDP (value-added)
58,299 U.S. jobs
$3.9 billion in labor income
$1.3 billion in taxes
"The new data is a testimony to the positive impact the trade relationship between the two countries can have on the overall economies," said Ron Campbell, Executive Director of the Mexican Hass Avocado Importers Association (MHAIA). "The analysis by Texas A&M University clearly shows how the collaboration between the Association of Avocado Exporting Producers and Packers of Mexico (APEAM) and MHAIA is contributing not only to the economic growth of both nations, but also to a localized impact within communities through added jobs, labor income and taxes."
When comparing results from previous years, this new report reveals the persistent growth and importance of Mexican avocado imports to the U.S. economy. The contribution to total U.S. output increased nearly 560% from $1.7 billion in 2012 to $11.2 billion in 2022. At the same time, the contribution to U.S. GDP (value added) has increased by nearly 410% from $1.2 billion in 2012 to $6.1 billion in FY 2022. The contributions to U.S. labor income, U.S. tax revenues, and employment from 2012 to FY 2022 have also registered dramatic increases3 (465%, 665%, and 418%, respectively).
"The avocado import growth is attributed to two factors – dramatic growth in U.S. demand for avocados and equally dramatic growth in U.S. import supply," said Dr. Gary Williams, Emeritus Professor at Texas A&M University. "U.S. per capita consumption of avocado fruit has grown to more than 9 pounds1 and promotion programs like Avocados From Mexico have been instrumental in increasing avocado consumption in the U.S."
The growth of Mexican avocado imports has also had a positive impact on growers in the U.S. and Mexico. The Texas A&M University analysis shows domestic avocado growers have benefited from higher price points and a larger market for their products. In Mexico, avocado farming continues to be a feasible and reliable business venture as the Mexican avocado industry creates approximately 78,000 direct and permanent jobs and more than 300,000 indirect and seasonal jobs, with more than 30,000 growers and 74 packers.
"It's rewarding to see the economic impact Mexico's strong partnership with the U.S. has had in meeting the ever-increasing demand for Avocados From Mexico. This partnership has become an economic engine that supplies the growing demand for avocados in the U.S. and opens opportunities for small avocado farmers in Mexico that allows them and their families to thrive," said Alvaro Luque, CEO of Avocados From Mexico (AFM).
Avocados From Mexico represents a unique collaboration between the two countries: AFM is a non-profit marketing organization that brings together the Mexican Hass Avocado Importers Association (MHAIA) and the Association of Avocado Exporting Producers and Packers of Mexico (APEAM) to promote the consumption of Mexican avocados in the U.S. This has helped fuel the United States' love for the avocado fruit and builds a bond which benefits both countries economically.
This partnership also benefits consumers. Through AFM, consumers receive healthful avocados that are the freshest, arriving from Mexico in three to five days, and are the highest quality product, with every avocado exported to the U.S. meeting strict dry matter testing requirements. The dry matter test ensures avocados in the U.S. have an adequate oil percentage, which provides the fruit with optimal consistency and delicious taste. The microclimate, volcanic soil and timely rainfall of Michoacán, Mexico, allows avocado trees to bloom year-round in Michoacán, the only region sending Hass avocados to the U.S. 365 days a year. Now, with the recent addition of avocados from the Mexican state of Jalisco, the industry's ability to meet year-round demand of avocados in the U.S. is further enhancing. Hass avocados now comprise about 95% of all U.S. avocado consumption and are the most widely available1.
A deep dive into all facets of the Mexican avocado industry is available at the Avocado Institute. The one-stop digital resource was created by the parent organizations of AFM, the Association of Avocado Exporting Producers and Packers of Mexico (APEAM) and Mexican Hass Avocado Importers Association (MHAIA).
For the full report, please visit: https://avocadoinstitute.org/newsroom/avocado-imports-achieve-record-breaking-impact-growth-on-both-sides-of-the-u-s-mexico-border/
About Avocados From Mexico
Avocados From Mexico (AFM) is a wholly-owned subsidiary of the Mexican Hass Avocado Importers Association (MHAIA), formed for the purpose of advertising, promotion, public relations and research for all stakeholders of Avocados From Mexico. Under agreements, MHAIA and the Association of Avocado Exporting Producers & Packers of Mexico (APEAM) have combined resources to fund and manage AFM, with the intent to provide a focused, highly- effective and efficient marketing program in the United States. AFM is headquartered in Irving, Texas.
1 2022 Update: The Economic Benefits of U.S. Avocado Imports from Mexico
This analysis utilizes the Impact Analysis and Planning Model (IMPLAN) to measure the jobs, revenues, wages and taxes generated by the imports along the value chain on the national and state economies. IMPLAN is an input-output model of the entire U.S. economy that captures the relationships between industries and estimates the economic effects (direct, indirect, and induced). The IMPLAN model reports on four specific types of economic effects: employment contribution, labor income, value-added, and output or gross sales contribution.
2 Hass Avocado Board Volume Data
3 Economic Benefits of the Expansion of Avocado Imports from Mexico, February 2014
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SOURCE Avocado Institute