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US suspends avocado inspections in Michoacan

Bloomberg Markets •
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The United States has suspended government activities in Mexico's Michoacan state, a move that could disrupt avocado exports to the US. This decision stems from an unspecified "threat against American interests," impacting the work of US Department of Agriculture (USDA) personnel responsible for inspecting avocado exports.

Michoacan Governor Alfredo Ramírez Bedolla stated that the suspension means no fruit shipments destined for export are authorized. Only avocados received and processed on Tuesday, in the presence of the USDA, will be allowed into the US. This situation arises as security forces are addressing extortion issues in the state, where cartels frequently target producers.

Mexico is working to improve security in Michoacan to resume exports. The avocado trade is vital to the state, generating over 200,000 jobs. In 2024, a similar pause occurred for over a week after two US inspectors were detained, costing Mexican growers millions and causing US prices to surge by 40 percent.