Mexican avocados help grow U.S. economy, study says
Mexican Hass avocado imports into the U.S. are now worth $4 billion and are contributing directly to the economy by generating millions of dollars in taxes and labor income, a new study by Texas A&M University has found.
During the 2021-22 fiscal year, the sector generated $11 billion in spending and contributed $6 billion to the U.S. GDP. This represents an increase of 560% and 410% respectively from 2012.
The study, funded by the Mexican Hass Avocado Importer Association (MHAIA), used an economic contribution analysis methodology to determine the key role played by these imports to the U.S. economy.
“When aggregated over time, the contributions of Mexican Hass avocado imports to the U.S. economy are not only impressive but economically important”, the study notes.
In recent years, avocados have established themselves as a healthy option and a diet-friendly ally. Its consumption took off in 1989-90 and skyrocketed by 612% during 2021-21. This adds up to an almost 10% average annual growth rate over said period.
Per capita consumption now stands at 9.05lb, with various contributing factors. The growing U.S Hispanic and Caribbean population, along with the inclusion of avocados in both fast-food and white tablecloth dining options, are all quoted by the study as possible reasons for the increase. The increasing consumer health awareness is another important element in Mexican Hass avocado’s success.
A multi-billion dollar business
Presently, more than two dozen varieties of avocados are grown commercially in the U.S. However, Hass avocados now comprise about 95% of all U.S. avocado consumption. On top of that, they are the most widely available, have a superior quality and longer shelf-life.
As avocados move from U.S. ports of entry to wholesalers, distributors, processors, and final retail end points, they generate economic growth. In other words, Mexican Hass avocado imports to the US. stimulate economic activity within the fruit’s supply chain itself and others that intersect with it.
Regarding the labor market, 58,299 jobs were created by the Mexican Hass avocado industry during last season. Additionally, the U.S. made $4 billion in labor income and $1 billion in tax revenues. This comprises federal, local, and state-level taxes.
The study projects that both the impact and scope of the “green gold” industry will continue to grow over the years.