The USDA has temporarily suspended its inspection operations in Michoacán, Mexico's primary avocado-producing state, effectively halting avocado exports from the region. Michoacán is one of only two Mexican states authorized to ship avocados into the United States, making this suspension an immediate and significant supply disruption.
This is a major flashpoint for the North American avocado market. The U.S. has previously suspended inspection services in Michoacán — most notably in 2022 when inspectors received threats — and each time it has caused immediate supply tightening and price volatility at retail and foodservice levels. With Mexico supplying the vast majority of avocados sold in the U.S., any disruption in Michoacán ripples through the entire supply chain fast.
Watch for price movement at the shipper and wholesale level within days. Buyers with forward positions or promotional commitments on avocados should be monitoring this closely — the duration of the suspension will determine how hard the market tightens.