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Viewing cable 07MEXICO1933, MEXICAN AVOCADO GROWERS DETERMINED TO KEEP

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Reference ID Created Released Classification Origin
07MEXICO1933 2007-04-19 15:39 2011-08-25 00:00 UNCLASSIFIED Embassy Mexico
VZCZCXRO0880
PP RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHME #1933/01 1091539
ZNR UUUUU ZZH
P 191539Z APR 07
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC PRIORITY 6512
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE PRIORITY
RUEHRC/DEPT OF AGRICULTURE WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEAWJA/DEPT OF JUSTICE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
UNCLAS SECTION 01 OF 02 MEXICO 001933 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR WHA/MEX AND EB/TPP 
STATE PASS USTR FOR MELLE AND VETTER 
USDA FOR FAS/ONA 
USDOC FOR 4320/ITA/MAC/ONAFTA/WORD 
 
E.O. 12958: N/A 
TAGS: EAGR MX
SUBJECT: MEXICAN AVOCADO GROWERS DETERMINED TO KEEP 
CALIFORNIA MARKET OPEN 
 
1. (U) This message is based on information and analysis from 
Embassy Mexico's Foreign Agricultural Service Office, 
including the November 30, 2006 USDA Global Agriculture 
Information Network Report Number MX6101. 
 
SUMMARY 
------- 
 
2. (U) The Avocado Producers and Exporters Association of 
Mexico (APEAM) is girding itself for a legal struggle to 
defeat attempts by the state of California and the California 
Avocado Commission (CAC) to close the state to imports of 
Mexican avocados.  All imported Mexican avocados come from 
Michoacan, which is President Calderon's home state and a 
leading source of out-migration to the U.S. End summary. 
 
MEXICAN AVOCADO EXPORTS ON THE RISE 
----------------------------------- 
 
3. (U) Mexico's avocado industry has made great strides in 
recent years.  Though the domestic market continues to absorb 
the majority of Mexican production, exports are growing 
rapidly, due a number of factors.  First, the USG has 
progressively opened up the U.S. market, granting Mexican 
Hass avocados access to all U.S. states except California, 
Florida, and Hawaii on a year-round basis on January 1, 2005, 
and year-round access to California, Florida, and Hawaii 
starting February 1, 2007.  Just as important, Mexican 
growers (with the support of Mexican agriculture officials) 
have generally been successful in implementing phytosanitary 
requirements and good manufacturing practices for fresh 
avocados.  Even though these practices increase production 
costs, the industry recognizes that they are key to 
maintaining access to overseas markets.  Mexican avocado 
exports to the U.S. have grown from 112,000 metric tons in 
Market Year 2004-05 to 130,000 metric tons in Market Year 
2005-06.  U.S. imports for the Market Year 2006-2007 will 
likely jump even higher, due to the combination of the freeze 
that wiped out roughly a quarter of California's production 
in January 2007 and the February 1 opening of the avocado 
markets in that state plus Florida and Hawaii. 
 
CALIFORNIA GROWERS ATTEMPT TO RE-CLOSE DOOR 
------------------------------------------- 
 
4. (U) The California legislature and the California Avocado 
Commission (CAC) are taking a number of steps to reverse the 
February 1, 2007 opening of the California market to avocados 
imported from Mexico.  This week the CAC filed a lawsuit 
against USDA seeking an injunction against Mexican imports 
based on the presence of an armored pest on Mexican avocados 
that USDA's Animal and Plant Health Inspection Service, or 
APHIS, considers to pose no phytosanitary risk.  In addition, 
members of the California state Senate recently proposed the 
California Avocado Pest and Disease Prevention Act of 2007, 
which if signed into law would give the state's avocado 
industry some degree of regulatory authority over 
out-of-state competitors.  This bill has passed the Senate 
Agriculture Committee but must successfully negotiate a 
number of other legislative steps before it becomes state law. 
 
MEXICANS FIGHTING BACK 
---------------------- 
 
5. (U) Worried about losing access to the recently opened and 
highly lucrative California market, the Avocado Producers, 
Packers, and Exporters Association of Mexico (APEAM) has 
committed considerable resources to supporting the U.S. 
Justice Department's defense of USDA's decision to open up 
the California market against the CAC suit.  If an injunction 
is granted versus imported Mexican avocados, APEAM hopes to 
be able to win status as an economically harmed party, which 
would allow APEAM to appeal any putative injunction. 
 
MICHOACAN - LEADING EXPORTER OF AVOCADOS, ILLEGAL IMMIGRANTS 
--------------------------------------------- --------------- 
 
6. (U) The state of Michoacan, just west of the state of 
Mexico, is far and away the country's leading grower of 
avocados, accounting for roughly 88 percent of national 
production.  Michoacan is also the only state in Mexico that 
has been certified by APHIS to export avocados to the United 
States.  It is also worth noting that Michoacan is one of the 
 
MEXICO 00001933  002 OF 002 
 
 
leading sources of immigrants (documented and undocumented) 
to the United States.  We have no data at this time 
suggesting how many jobs in Michoacan are directly connected 
to avocado exports to California, but it seems clear that 
many Michoacanos respond to unemployment by looking for work 
north of the border. 
 
 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity 
GARZA