Avocado toast craze really caught up with many American millennials, who were and are still willing to throw away some good money at the guacamole makers.
But they might have to save a little much more for the fruit as America would run out of avocados in three weeks if Trump shuts down the U.S.-Mexico border. President Trump said there is a high chance he would close the border this week if Mexico did not stop immigrants from reaching the United States.
A shutdown of the border would disrupt millions of legal border crossings and the effect will take a toll on billions of dollars food imports business.
“When a border is closed or barriers to trade are put in place, I absolutely expect there would be an impact on consumers. We’re absolutely going to see higher prices. This is a very real and very relevant concern for American consumers,” said a consultancy specialist in American agricultural issues and trade.”
To meet their consumer demand, US has been dependent on Mexico for a constant supply of fresh fruit and vegetables. Data from the United States Department of Agriculture reveals that about 40% of its imported fruit and vegetables are grown in Mexico. In addition to avocados, the majority of its tomatoes, cucumbers, blackberries, and raspberries come from Mexico.
Following the threat to shut the border, Mexican avocado prices jumped to 34 percent as on Tuesday the biggest one day gain in the guacamole business since 2009. Avocado prices could easily double or triple if the threat is executed With the US relying on 100 percent of the avocados from Mexico, its California farm might take forever to catch up with the exploding demand.
For Mexico, a big importer of U.S. refined fuels like diesel and gasoline they might have to find a way to get these supplies without disruptions.