California’s Hass avocado growers would face new competition, but U.S. consumers could see some slightly lower prices, under a new Agriculture Department proposal to admit imports from Colombia.
In its latest market-opening move, the Agriculture Department on Thursday published for public comment the proposal that Colombia’s Hass avocados be admitted into the United States so long as a number of phytosanitary requirements are met.
“A growing U.S. population and growing Hispanic share of the population, greater awareness of the avocado’s health benefits, year-round availability of fresh, affordable Hass avocados and greater disposable income have contributed to the increased demand,” the department stated.
Annual U.S. avocado production over the last decade averaged 206,368 tons, of which California accounted for 87.5 percent.
The increase in demand over the past decade has contributed to domestic producers being able to maintain production levels despite the large increase in avocado imports.
U.S. Department of Agriculture
Most of the 4,000-plus California avocado farms are in San Diego, Ventura, Riverside and Santa Barbara counties, although some commercial production remains in the southern San Joaquin Valley.
Colombia is expected to export over 11,000 tons of Hass avocados annually to the United States, according to officials.
The Agriculture Department further estimates that U.S. “producer welfare losses” are expected to be $4 million to $6 million, while “consumer welfare gains” range from $14 million to $22 million.
“The price of fresh Hass avocados is estimated to decline by less than 2 percent,” the department stated.
The Obama administration, in 2010, admitted Hass avocado imports from Peru despite some concerns raised by California growers, who said they feared pests and disease. Earlier this year, expanding on steps first taken in the George W. Bush administration, Agriculture Department officials opened up the doors to Hass avocado imports from all of Mexico.
Mexico accounts for about one-third of the world’s Hass avocado production, while the United States holds 7 percent and Colombia about 4 percent of total production.
Michael Doyle: 202-383-6153, @MichaelDoyle10
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