Effective Marketing of Hass Avocados: The Impacts of Changing Trade Policy and Promotion/Information Programs

U.S. avocado producers faced major economic challenges in 1996, when opening of the U.S. market to Mexican avocados was approved. Fearing introduction of new pests and diseases as well as severe economic impacts, U.S producers were able to gain a phased opening of regional markets and legislation authorizing an assessment of 2.5 cents per pound on all Hass avocados sold in the U.S. to support promotion programs. Promotion programs expanded demand sufficiently to maintain real producer prices even though Mexican imports exceeded USDA forecasts by a factor of three.