Why It’s Now the Pits For Avocados

Fresh Direct told us that they eliminated the avocado pits.

But not really. It was April Fools::

However, avocados have been in the news.

This is the story.

Avocado Prices

When President Trump proclaimed that the U.S./Mexican border could close, the Hass avocado people responded logically with importers boosting their inventories. The price of a 25-pound carton soared to $60. During the previous week, it was $42:

Even before the surge, prices were rising because a heatwave delayed the California harvest. Now, Bloomberg tells us that, instead of 90%, this year we could be getting all of our Hass avocados from Mexico:

Our Bottom Line: Demand Determinants

On a supply and demand graph, the demand curve can shift for several reasons. Most typically we have a change in income that alters what consumers are willing and able to buy. Also altering what we buy, it is possible that the price of a substitute or a complementary product can change.

Here though our future expectations were the reason. Concerned about a border closing, wholesalers were increasing demand by stocking up now. As a result, the demand curve shifts to the right and price goes up:

Where are we? Yes, it could be the pits if the border closed.

My sources and more: Bloomberg and Marketwatch had the facts on avocado prices.