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Economy

US suspends avocado inspections in Mexico’s Michoacan

The United States suspended all avocado inspection operations in Mexico’s Michoacan state on Wednesday after a security alert cited a “threat to U.S. interests,” halting exports to the world’s largest buyer.

Source: Associated Press · August 6, 2026 at 2:54 PM · AI-assisted report

US suspends avocado inspections in Mexico’s Michoacan
Image: apnews.com

KUALA LUMPUR, 6 AUGUST 2026 —

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The United States suspended all avocado inspection operations in Mexico’s Michoacan state on Wednesday after a security alert cited a “threat to U.S. interests,” halting exports to the world’s largest buyer.

The U.S. Embassy in Mexico City did not specify the nature of the threat in its alert, but Michoacan Governor Alfredo Ramírez Bedolla said the temporary halt aims to protect workers following recent arrests linked to extortion. Inspections are mandatory for avocados to enter the U.S. and their suspension risks disrupting the $3.65 billion annual trade.

The western state supplies about 80% of U.S. avocado imports. Organized crime groups, including cartels designated terrorist organizations under the Trump administration, operate in Michoacan, generating income through extortion of the avocado industry.

Michoacan State Security Secretary Antonio Cruz named Alfonso Fernández Magallón, alias “El Poncho,” as one arrested over the weekend. U.S. Ambassador Ronald Johnson welcomed the capture, for which Washington had offered a $5 million reward.

Cruz said no direct incidents involving inspectors had been reported, but 300 security personnel were deployed to the Los Reyes region as a precaution. Governor Ramírez said the priority is to restore security so inspections can resume.

Michoacan’s avocado sector employs around 200,000 people locally. In the first four months of 2025 exports to the U.S. rose 35% year-over-year to $1.25 billion from the same period last year. The U.S. Department of Agriculture sends inspectors to monitor plantations and packing houses for pests, a process previously suspended after targeted attacks on inspectors.

Malaysia Impact

Global development — watch for knock-on effects on oil prices, the ringgit, and KLCI risk sentiment.

Reporting based on Associated Press. Figures and claims are subject to revision as the story develops. DomainFork publishes editorial context, not investment advice — see our editorial standards.