Summary: The U.S. Economic Contributions of Hass Avocado Imports from Mexico | 2024 Update

The 2024 report, prepared by Dr. Gary W. Williams and Dan Hanselka of Texas A&M University, analyzes the economic contributions of Hass avocado imports from Mexico to the U.S. economy for fiscal year 2023/24. It highlights the growing significance of Mexican avocados in the U.S. and provides a historical perspective on their impact since 2012/13. The study also includes a special focus on the state economies of California and Texas, the two largest avocado-consuming state.

Key Highlights

1. Economic Impact on the U.S. Economy:

   • Hass avocado imports from Mexico generated $7.5 billion in total output (spending), $4.2 billion in GDP (value-added), and $2.5 billion in labor income in 2023/24.

2. Consumer Demand:

   • U.S. avocado consumption has more than doubled since 2010, driven by health-conscious trends and the fruit's versatility, underscoring the growing importance of Mexican Hass avocado imports​.

3. Multiplier Effects:

   • Every dollar of Mexican Hass avocado imports generated $2.13 in U.S. economic output and $1.18 in GDP. Each $1 million of imports supported 11.9 jobs.

4. State-Specific Contributions:

   • California: Imports added $965 million in economic output, $580 million in GDP, and supported 5,281 jobs.

   • Texas: Imports contributed $469 million in economic output, $260 million in GDP, and supported 2,847 jobs.

5. Growth Trends:

   • From 2012/13 to 2023/24, the value of Mexican Hass avocado shipments to the U.S. increased by over 250%, with their contribution to U.S. output and GDP rising by 330% and 240%, respectively​.

6. Sustainability and Logistics:

   • Nearly 98% of the imports were transported through Texas border crossings. The study highlights the importance of sustainable practices and efficient logistics in supporting the growing demand.

7. Challenges and Resilience:

   • Despite fluctuations in shipment volumes due to weather and supply chain issues, demand for avocados remains robust. The report notes that small changes in supply can significantly impact prices due to strong U.S. demand​.

Citation

Williams, G. W., & Hanselka, D. (2024). The U.S. Economic Contributions of Hass Avocado Imports from Mexico. Texas A&M University. Report commissioned by the Mexican Hass Avocado Import Association (MHAIA) and the Asociación de Productores y Empacadores Exportadores de Aguacate de México (APEAM).

See the full report here.