Guatemala prepares to boost avocado exports amidst tariffs and delays

In recent months, Guatemala has been preparing to enter the U.S. avocado market following the U.S. government's approval to import avocados from the country. Despite receiving the green light around six months ago, the Central American nation has not yet shipped any avocados due to ongoing regulatory approvals and logistical challenges. The Guatemalan president, Bernardo Arévalo, emphasized the potential for rural development linked to the high-demand fruit during the unveiling of a significant new avocado packing facility built by Mission Produce, a major player in the avocado industry. This facility is expected to employ hundreds of locals and is seen as a crucial step towards expanding avocado production and trade in Guatemala. Currently, approximately 17,300 acres are planted with avocados in Guatemala, with aspirations to grow this area to nearly 75,000 acres in the next decade. Early projections from the country's agricultural ministry suggested an initial export capacity of 1,700 tons, with hopes to ramp up to 15,000 tons by 2030. However, the U.S. government's imposition of a 10% tariff on dozens of trade partners, including Guatemala, has introduced uncertainties in these forecasts, particularly as Guatemala aims to compete in a market dominated by Mexico, which leads avocado exports with 1.4 million tons annually without facing tariffs. The avocado industry in Guatemala has been gaining traction, with more trees being planted each year, making avocado one of the most cultivated crops after rubber and palm trees. Nevertheless, there are environmental concerns surrounding this rapid expansion, particularly regarding deforestation and water usage for irrigation. The Guatemalan agricultural ministry has acknowledged the lack of regulations governing water use for avocado orchards and has noted that larger companies typically utilize drip irrigation techniques to optimize their water resources. As Guatemala navigates its entry into the U.S. avocado market, it is crucial to implement good agricultural practices that ensure environmental sustainability while capitalizing on the growing demand for avocados. Despite the challenges posed by tariffs and market competition, Guatemala's proximity to the U.S. and experience in exporting to Europe could enable it to emerge as a significant player in the international avocado industry, promoting rural economic growth and sustainable agricultural practices.