World Business

Mexico Deploys Troops as US Halts Avocado Imports Over Security Threat

Mexico Deploys Troops as US Halts Avocado Imports Over Security Threat

MEXICO CITY — Mexico has dispatched 1,500 additional troops to the western state of Michoacan, a day after the United States suspended government operations there, including crucial avocado inspections, citing a non-specific threat to U.S. interests. The move halts the flow of Mexican avocados to the U.S. market, a critical trade valued at billions of dollars.

Security Boost to Resume Exports

Mexican President Claudia Sheinbaum announced the increased security presence in the avocado-producing areas on Thursday, emphasizing the goal of resuming exports as swiftly as possible. The administration aims to mitigate any significant economic repercussions for Mexico and ensure the continued supply to the U.S. consumer base.

The United States relies heavily on Mexican avocados, with over 80% of its consumption originating from its southern neighbor. In 2025, these exports represented $3.7 billion in sales for Mexico. The U.S. Department of Agriculture inspectors are mandated to verify the quality of the fruit on-site to prevent the introduction of pests into the country. Without these inspections, imports cease, potentially leading to price increases in the U.S.

Cartel Activity and Past Disruptions

The agricultural inspections were suspended on Wednesday due to security concerns in Michoacan, the primary avocado-producing state and a region known for high cartel activity. This is not the first instance of export disruptions; a similar pause occurred in early 2022, just before the Super Bowl, lasting a week. However, that earlier halt did not affect Super Bowl guacamole consumption as the avocados had already been shipped.

Michoacan is home to numerous cartels that engage in drug production and trafficking, as well as violence and extortion across various industries, including the avocado sector. Payments to these cartels can influence the final price of the fruit.

Escalation of Security Concerns

Previous suspensions of avocado exports were triggered by direct violence against U.S. inspectors. In 2024, two USDA employees were assaulted and temporarily detained by assailants in Michoacan. This current suspension, however, was described as a ‘preventive’ measure by Michoacan authorities, following recent arrests linked to extortion cases, rather than a specific reported incident against inspectors.

The California Avocado Commission, advocating for the state’s domestic avocado industry, has called for enhanced monitoring of fruit destined for the U.S. following a reported pest issue at a Mexican packinghouse. The commission’s president, Ken Melban, stated that cartels should not be permitted to interfere with the industry, adding that the Trump administration’s actions to protect American personnel and confront cartels are justified. He further asserted that cartels must not be allowed to exploit the United States-Mexico-Canada Agreement (USMCA) to undermine American growers and damage domestic production.

Economic Impact and Cartel Leverage

Avocado consumption in the United States has seen a significant increase in recent decades, with California’s production meeting only a fraction of the demand. Mexican analyst David Saucedo suggests that issues surrounding avocado exports are among the factors contributing to the Trump administration’s designation of four cartels operating in Michoacan as terrorist organizations.

While the current suspension specifically targets avocados from Michoacan, it is worth noting that only one other Mexican state, Jalisco, is authorized by the USDA to export to the U.S. since 2022, and its export volume is considerably smaller. Typically, such export pauses are resolved within a few days, as they negatively impact both Mexico and the U.S., as well as the cartels themselves. In Michoacan, the avocado industry provides employment for approximately 200,000 people. Prolonged interruptions could lead to shortages and price hikes. Furthermore, if avocados are not being exported, criminal organizations cannot collect their extortion payments.

A producer from Michoacan, speaking anonymously due to safety concerns, revealed that he pays 1 peso per kilogram exported in extortion fees, processing about 90 metric tons daily, which amounts to over $5,000 in daily payments. When inspections are halted, Mexican authorities commonly respond by offering enhanced security measures, as demonstrated by President Sheinbaum’s announcement. She also proposed that Mexican officials could conduct the inspections themselves, an option that has been considered previously. However, the USDA has maintained its authority over verifications, though often with accompanying Mexican security forces.

Despite the general trend of swift resolutions, producers indicate that the underlying issue of extortion persists. The deployment of additional troops signifies Mexico’s commitment to addressing the security situation and facilitating the resumption of vital avocado trade with the United States.

This article was generated with AI assistance based on public financial sources. Information may contain inaccuracies. This is not financial advice. Always consult a qualified financial advisor before making investment decisions.
Tags: avocado cartels mexico security trade

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