Two of the sector’s leading companies, Mission Produce and Westfalia Fruit, have declared force majeure in response to the shortage of Mexican avocados and the rapid escalation of costs.
The situation comes as Mexico moves into the final stage of its avocado season, when available volumes are already naturally lower. However, according to industry operators, the current imbalance has intensified sharply in recent weeks, with growers withholding harvests and packers competing for the limited fruit still available.
Mexican supply under pressure
In a communication to buyers, Raina Nelson, president of Westfalia Fruit North America, said that Mexican fruit supply is currently facing severe restrictions beyond the company’s control. These limitations are materially affecting the volume available from Mexico and, according to the company, could not have been foreseen or avoided through commercially reasonable measures.
Westfalia said it expects delays and reduced fulfilment on orders sourced from Mexico. At the same time, its global sourcing teams are working to redirect volumes from Peru, Colombia and California, while also sourcing fruit on the spot market in an effort to meet customer programmes wherever possible.
Field prices rise as competition intensifies
Mission Produce has also warned customers of a rapid deterioration in supply conditions over the past two weeks. Galen Johnson, sales director at Mission Produce, said the market has changed quickly as Mexico approaches the end of its crop cycle.
According to the company, some growers are actively holding back harvests, while field prices are increasing at a very fast pace as packers compete for the remaining fruit. Mission expects the shortage to continue for around the next two months, based on the current crop outlook.
US demand remains strong
The shortage is being aggravated by firm demand in the United States, where consumption remains high despite rising prices. The combination of limited availability and strong buying interest is adding further pressure to an already tight market.
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Foodservice procurement company Produce Alliance also warned that volatility is likely to continue throughout June as supply tightens further and competition for available fruit increases.
According to the company, all growers and shippers are being affected by the situation, which remains outside their control. Mission and Westfalia are expected to continue packing as much fruit as possible to support programme distributors over the coming weeks, although overall industry supply is unlikely to be sufficient to meet current US demand.
Alternative origins gain importance
With Mexican availability constrained, alternative sources are becoming increasingly important for the North American market. Peru, Colombia and California are expected to help ease part of the pressure, although their volumes may not fully compensate for the shortage from Mexico.
The situation highlights the sensitivity of the avocado market to supply disruptions at the end of the Mexican season, particularly when demand in the United States remains strong and buyers are competing for limited fruit.
A volatile market outlook
For importers, distributors and retailers, the coming weeks are expected to remain challenging. Reduced fulfilment, price volatility and the need to adjust sourcing strategies will likely define the short-term outlook for the avocado category in North America.
The force majeure declarations by Mission Produce and Westfalia Fruit underline the severity of the current supply imbalance and point to a market that will remain under pressure until new volumes from alternative origins and the next Mexican season help restore stability.
