Mexico's Avocado Farms

return to the list of Cases

Mexico is a major economic power, with a dynamic economy driven by diverse sectors including manufacturing, tourism, and agriculture. Its agricultural industry, in particular, is a cornerstone of the national economy, connecting the country to global markets and supporting millions of livelihoods.

Among its exports, the avocado is arguably the most prominent. As the world's leading producer, Mexico dominates the international trade of the fruit, with the United States as its principal consumer.  This success generates substantial revenue, bolsters rural communities, and solidifies Mexico's role as a key player in global agriculture.

Mexico: Key Facts

• Capital: Mexico City
• Largest city: Mexico City (22 million)
• Population: 132 million (2025)
• Official language: Spanish
• GDP (ppp): 3.4 trillion (IMF 2025)
• GDP rank (ppp): 13
• GDP per capita (ppp): 25,463 USD
• GDP per capita rank: 77
• Export partners: USA 76%, Canada 5%, China 2%, Germany 2%, Spain 1% (2023)
• Import partners: USA 46%, China 20%, Germany 4%, Japan 3%, S. Korea 3% (2023)

Avocado Industry in Mexico

Mexico is the world’s leading producer of avocados, accounting for approximately 35% of global production. Over the past decade, Mexico’s share of the global avocado market has grown significantly, rising from around 28% to 35%, solidifying its dominance in the industry. Of the avocados harvested in Mexico, 53% are exported, with the United States being the primary destination, receiving 80% of these exports. The remaining 20% go to other countries, including Canada, Japan, and Spain, which are also major importers of Mexican avocados.

The heart of Mexico’s avocado production lies in the state of Michoacán, which is responsible for approximately 80% of the country’s total avocado output. This makes Michoacán not only the epicenter of Mexico’s avocado industry but also a critical player in the global market. Historically, Michoacán was a significant source of migrant workers to the U.S., but the avocado boom has transformed the local economy. The sector now generates approximately 78,000 direct jobs within the state, helping to reduce the outflow of workers seeking employment elsewhere. The majority of labourers in Michoacán’s avocado farms are local residents, with some workers coming from neighboring regions. This shift has contributed to a decline in migration from Michoacán to other parts of Mexico or abroad, as the industry provides viable employment opportunities locally.

However, the success of Mexico’s avocado industry comes with significant challenges. The sector is deeply integrated into a global supply chain driven by high demand from U.S. consumers. While the industry has brought economic benefits to some, it has also been criticized for its social and environmental costs. The avocado trade in Michoacán has been linked to cartel involvement, with organized crime groups monopolizing parts of the industry. Additionally, the reliance on cheap labour and the environmental degradation caused by deforestation and water overuse highlight the darker side of the avocado boom. For example, avocado farming requires significant water resources, with estimates suggesting that it takes approximately 320 liters of water to produce one kilogram of avocados. This has led to concerns about water scarcity and the long-term sustainability of the industry in Michoacán.

The Evolution of the Avocado Industry

Over the past fifty years, the avocado industry has transformed from a small-scale market into a global phenomenon. Mexico, especially the state of Michoacán, has been at the forefront of this change, evolving from a regional supplier to providing nearly a third of the world’s avocados. However, this success has come with significant challenges, including sustainability issues, labour concerns, and the impact of organized crime.

1970s: The Early Days
- Global avocado production was modest, with limited data available.
- In 1973, Mexico introduced a national plan to boost avocado farming, leading to increased cultivation, particularly in Michoacán.
- The industry was mostly local, with very few exports.

1980s: The Start of Expansion
- Global production reached about 1.1 million tons in 1980.  By 1990, it had grown to 1.9 million tons.
- In Mexico, Michoacán’s avocado farming expanded from 30,979 hectares in 1980 to 58,798 hectares by 1990.
- Mexico began to establish itself as a major producer, though its role in the global export market was still growing.

1990s: Rapid Growth
- Global production continued to rise, reaching 1.9 million tons in 1990 and increasing further by the end of the decade.
- Mexico made significant strides, developing the infrastructure needed for large-scale production and exports.
- The U.S. started to become an important market, though some states still restricted avocado imports from Mexico.

2000s: The Boom Takes Off
- Global production hit 2.7 million tons in 2000.
- Mexico cemented its status as the top producer and exporter.
- By the mid-2000s, Mexico was producing a substantial share of the world’s avocados, with Michoacán leading the charge.

2010s: Mexico Dominates the Global Market
- Global production jumped to 3.9 million tons by 2010.
- Mexico’s avocado industry grew rapidly, thanks to new technology, larger farms, and increased investment.
- By the end of the decade, Mexico was responsible for over 24% of global production.
- Demand in the U.S., Europe, and Asia soared, driving up prices and encouraging more planting.

2020s: Peak Production and Emerging Challenges
- Global avocado production skyrocketed to nearly 9 million tons by 2022.
- Mexico’s share of global production climbed to 28-30%, solidifying its position as the leading producer.
- Michoacán remained the industry’s core, though other states like Jalisco began to expand their production.
- The industry faced new hurdles, including cartel violence, deforestation, water shortages, and stricter environmental regulations.

Threats to Labourers in Michoacán's Avocado Industry

Michoacán's avocado industry has become one of Mexico's most dangerous agricultural sectors due to its extreme profitability. Global demand has made avocado production a site of intense competition for control, where violence has become a tool used by multiple actors, including not just criminal cartels, but also landowners, local militias, and corrupt officials, to secure territory, eliminate rivals, and extract profits.

The system operates through overlapping forms of coercion. Criminal organizations extort farmers through "protection" fees (cobro de piso), sometimes seizing land outright. But the violence is not simply imposed from outside: some growers use armed groups to intimidate competitors or resolve land disputes; self-defence militias (autodefensas), originally formed to resist cartels, have in many cases become extortion operations themselves; and local officials selectively enforce laws or provide protection in exchange for payoffs. Many armed enforcers are local residents who shifted from farmwork to protection because it pays better.

Workers and small farmers exist within this system with limited agency, facing threats from multiple directions and unable to rely on legal protections. The line between legitimate business and criminal enterprise has blurred to the point where survival often requires some form of accommodation with violent actors.

Meanwhile, international consumers remain largely unaware of these dynamics. Despite occasional trade suspensions, such as the 2022 U.S. halt of inspections due to security threats, market demand remains strong, ensuring that profits continue to justify the use of violence as a business strategy.

Video

A look into the security challenges of avocado farming in Michoacán, Mexico [7m 33s]

This video reveals the violent conflict at the heart of Mexico's avocado industry, where soaring U.S. demand has made the fruit a target for organized crime. Faced with relentless extortion, kidnapping, and murder by cartels, local farmers have taken up arms, creating a self-defense force called "Pueblos Unidos." The group patrols the region and sets up roadblocks, arguing that the government has failed to protect them from the criminals who steal their land and profits.

Discussion

1. Economic Dependence: The text highlights that 80% of Mexico's avocado exports go to the United States. Discuss the potential economic risks for Mexico of being so heavily dependent on a single market. What geopolitical or trade-related events could disrupt this relationship, and what might be the consequences for the farmers in Michoacán?

2. The Paradox of Success: The avocado boom has created jobs and reduced migration from Michoacán, yet it has also attracted violent cartels and led to environmental degradation. Discuss the overall effects of the avocado boom. Have they been positive or negative for the region?

3. Consumer Responsibility: Most international consumers are unaware of the violence and environmental issues linked to the avocados they buy. Do you believe consumers have a responsibility to know where their food comes from? If so, what practical steps could be taken by consumers, retailers, or governments to promote a more ethical and sustainable avocado trade?

4. Role of Government and Self-Defense: The video shows local farmers forming self-defense groups because they feel the government has failed to protect them. What are the potential benefits and dangers of such citizen-led security forces? In what ways could the Mexican government more effectively address the issue of cartel control in the avocado industry?

Critical Thinking

1. The Cartel Involvement Paradox: The text suggests that cartels moved into the avocado industry because of its profitability, implying a simple cause-and-effect relationship. Question this assumption by considering whether the relationship might be more complex or bidirectional. Could the presence of weak institutions, existing criminal networks, or specific geographical factors have made Michoacán vulnerable to criminal infiltration regardless of which crop was grown? Examine whether framing cartels as "external forces" obscures potential complicity or interdependence between legitimate business actors and criminal organizations. What evidence would you need to determine whether the avocado boom created conditions for cartel involvement, or whether cartels would have dominated any lucrative agricultural sector in the region?

2. The Cartel Involvement Paradox: The narrative that cartels infiltrated the avocado industry as "external forces" due to its profitability suggests a clear boundary between legitimate business and criminal activity. Critically examine this assumption by exploring whether the relationship between legal and illegal actors is more complex or bidirectional. Consider whether some farm owners, exporters, or government officials might be complicit in or benefit from cartel involvement, thus blurring the line between legitimate and criminal operations. Challenge the causal inference that cartel violence is solely a byproduct of profitability by investigating whether the industry's structure, governance gaps, weak institutions, existing criminal networks, or specific geographical factors in Michoacán facilitated criminal infiltration, regardless of the crop grown. Evaluate whether the "external threat" framing serves political or economic interests by deflecting attention from institutional failures or policy choices that may have contributed to the problem. What evidence would be needed to determine whether the avocado boom specifically created conditions for cartel involvement, or if cartels would have dominated any lucrative agricultural sector in the region?

Further Investigation

1. Alternative Economic Trajectories: Examine what Michoacán's economy might have looked like under different development scenarios. Research the state's economic history before the avocado boom, including previous agricultural practices, industrial development attempts, and migration patterns. Investigate other Mexican states or international regions that have pursued different agricultural strategies or economic diversification approaches. Consider whether the concentration on avocado production has created economic resilience or vulnerability for the region, and explore policy alternatives that might have achieved job creation and export revenues through different means.

2. Security and Rural Development: Explore the relationship between economic development and security in rural Mexico more broadly. Research how other agricultural regions in Mexico have dealt with organized crime, and investigate successful and unsuccessful attempts to establish rule of law in economically valuable but institutionally weak areas. Examine the role of community self-defense groups, government security programs, and international cooperation efforts in addressing rural violence. Consider whether economic success in agriculture necessarily creates security challenges, or whether specific institutional and geographical factors make certain regions more vulnerable to criminal control.

return to the list of Cases

contact  |  quotes  |  site map

© 2025 Serdar Kaya