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October 5, 2005
Free Trade in Avocadoes: Good for Mexican and U.S. Producers
The Los Angeles Times reports that avocadoes are pouring into the United States from Mexico:
. . . a river of avocados [is] flooding the United States from Mexico, where exports have more than doubled in volume this year over last. The reason? Growers finally have attained unimpeded entree to the U.S. market after eight decades of barriers. Many packing houses are working multiple shifts to feed U.S. avocado demand, which is growing 15% a year. . . .
What's driving growth in avocado exports is the elimination of trade barriers and sanitary bans that for most of the last century kept the U.S. market off limits to Mexican fruit. The boost also is thanks to the surprisingly strong growth in U.S. consumption. According to the Irvine-based California Avocado Commission, the state industry's marketing arm, total U.S. avocado sales will reach 440,000 tons this year, an 80% increase from the total consumed in 2000. . . .
The U.S. avocado industry is not complaining, notes the Times:
Despite the avalanche of foreign fruit from Mexico, Chile and elsewhere, California growers do not seem to have suffered. Prices and total acreage of the state's orchards have remained stable over the last decade. Valetta Weaver, chief financial officer of the California Avocado Commission, says the U.S. market has room to grow, as non-Latinos, who eat only one-eighth as much in avocados per capita per year as Mexican Americans, catch up. . . .
To further develop their business, U.S. growers (and Mexican ones, as well, no doubt) have China in their sights, where avocadoes are barely known.
Domestic producers of any good must be constantly developing new markets for their product. If they don't, they will be the "ripe" that Ray Kroc refers to, and no protection that Washington can concoct will be able to save them.
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