The United States has suspended agricultural inspections of avocados in Mexico's Michoacan state, leading to a halt in exports. The U.S. Department of Agriculture cited a non-specific threat to its personnel as the reason for the suspension of government operations in the region.

In response, Mexico announced on Thursday it was sending 1,500 additional troops to Michoacan to bolster security and hasten the resumption of avocado inspections. Mexican President Claudia Sheinbaum stated the security increase aims to prevent significant economic impacts on both Mexico and the U.S. supply chain.

Michoacan is the primary avocado-producing state in Mexico and one of only two authorized by the USDA to export avocados to the United States. The state accounts for over 80% of the avocados consumed in the U.S., a market valued at $3.7 billion in sales for Mexico. The USDA's on-site inspections are crucial to prevent the entry of pests into the United States. Without these inspections, imports cease, potentially leading to increased prices for consumers in the U.S.

This is not the first time avocado exports have been interrupted. In early 2022, a similar pause occurred, lasting about a week. However, previous halts have sometimes been triggered by direct violence against U.S. inspectors. In 2024, two USDA employees were assaulted and temporarily detained in Michoacan. The current suspension, however, was described as a preventive measure following recent arrests linked to extortion cases, with no specific incident involving inspectors being reported.

Cartel activity is prevalent in Michoacan, where various criminal organizations are involved in drug production and trafficking, as well as violence and extortion across multiple industries, including the avocado sector. These cartels can influence fruit prices through their demands.

The California Avocado Commission has called for enhanced monitoring of avocados destined for the U.S. and raised concerns about cartel interference and the potential for pests, citing a previous incident at a Mexican packinghouse. The commission's president, Ken Melban, stated that cartels should not be permitted to exploit trade agreements to undermine domestic growers.

Mexican analyst David Saucedo suggested that issues surrounding avocado exports are among the factors leading the U.S. administration to designate four cartels operating in Michoacan as terrorist organizations. Currently, only Michoacan and Jalisco are authorized by the USDA for avocado exports to the U.S., with Jalisco's export volume being significantly smaller.

Export pauses are generally resolved within days, as they negatively affect both countries and the cartels themselves. The avocado industry in Michoacan employs approximately 200,000 people, and prolonged suspensions could result in shortages or price hikes. Furthermore, halted exports prevent cartels from collecting extortion payments.

One Michoacan producer, speaking anonymously due to safety concerns, reported paying the equivalent of over $5,000 daily in extortion fees for approximately 90 metric tons of avocados exported. Mexican authorities typically respond to inspection halts by increasing security measures, as demonstrated by President Sheinbaum's troop deployment. The possibility of Mexican officials conducting inspections has been discussed previously, but the USDA has maintained responsibility for these verifications, with Mexican security forces providing escorts.