by Tim Linden, The Produce News
As soon as June 27, 2016, avocados from any Mexican state will be allowed into the United States, as long as packers follow a systems approach for shipping and the protocol has been certified.
On Feb. 5, 1997, the U.S. Department of Agriculture first allowed limited shipments of Mexican avocados into the United States. Initially, those shipments had to be from the state of Michoacán and were limited to 19 Northeastern states during a very limited time period in the winter. In addition, each packingshed and each shipment had to be certified as being in compliance with the rules established by USDA’s Animal & Plant Health Inspection Service. Over the years, Michoacán gained more and more access to the U.S. market to the point where today it enjoys total access. But again, each shed and each shipment must be certified as pest free and following the protocol.
Within the last year, APHIS signaled that it would be expanding the ability to ship to any packing shed in the country as long as it again followed the rules.
On Thursday, May 26, 2016, APHIS released a pre-publication notice stating that the following day (May 27) the amended rule would be posted in the Federal Register. While it could further tweak that posting, the notice revealed that the Hass avocado shipping protocol is being amended “to allow importation of fresh Hass avocado fruit into the continental United States, Hawaii and Puerto Rico from all areas of Mexico subject to a systems approach.”
The notice states that the action “expands an already successful Hass avocado import program with Mexico.” It further states that the effective date of the new rule is June 27, noting that “commercial consignments of Hass avocados from all areas of Mexico with an approved operational work plan will be allowed into the U.S. accompanied by a phytosanitary certificate certified by the NPPO (National Plant Protection Organization) of Mexico indicating compliance with the systems approach prescribed.”
The June 27 effective date is dependent upon the actual posting in the Federal Register 30 days earlier on May 27. This action was not unexpected, only the timing was in doubt.
While this is expected to allow a greater volume of Mexican avocados the opportunity to come into the U.S. market, Michoacán is where the great majority of Mexican avocados are produced. It is widely considered that packing operations in the state of Jalisco will be the first to be able to meet the certification requirements. There is mature commercial production in that state with some packers already shipping to other export markets. Several U.S. avocado distributors have working relationships with Jalisco producers.
Mission Produce Inc. in Oxnard, CA, which does have partnerships with Jalisco producers, does not expect this to have a major impact on the global marketing of avocados. Vice President of Marketing Robb Bertels told The Produce News on May 26 that Jalisco avocados are already being marketed globally. “This ruling won’t magically increase the supply of avocados,” he said. “What it does is give Jalisco producers another market for their fruit. We expect them to follow the money and sell that fruit where it is most profitable.”
He said Mission already sources fruit from Jalisco and sells it to buyers around the world. Bertels did agree that over time there may be some avocado supplies currently sold in the national market that find their way to the generally more-lucrative global arena. But he said the price differential between those two markets has been narrowing in recent years. The Mission Produce executive did allow that the Jalisco fruit could have an impact on the general California marketing situation as the harvest time for that fruit is more aligned with the California season. However, he reiterated that the volume of fruit from Michoacán already certified as able to come into the U.S. market greatly dwarfs even the potential production from Jalisco and other states, especially in the short term.
California Avocado Commission President Tom Bellamore also does not expect a huge impact from this APHIS decision on global supply nor on the California’s crop. He said the notice indicated that the state of Michoacán has about 85 percent of Mexico’s production. Some have estimated Jalisco’s potential volume at 100 million pounds, which is about 3 percent of Mexico’s total production, and virtually all of that is already in the marketplace. Bellamore said Jalisco fruit has been shipped to Canada, Japan and Europe and there is no reason to think those relationships won’t be continued. While Jalisco does ship fruit at the same time as California, its season is said to last through the fall and into January. Certainly fruit shipped the second half of the Jalisco season would not impact California, which typically sees its supplies dwindling in late summer. Even this year’s heavy crop should see close to 90 percent of California’s fruit marketed by Sept. 1.
Source: The Produce News