Fans of the fast food restaurant Chipotle know that it costs extra to get guacamole added to their order. Due to supply chain issues, guacamole everywhere is now expected to come at a heftier price.
According to Bloomberg, avocados from Michoacan – Mexico’s biggest harvester of the green-fleshed fruit – were more expensive as of Thursday than they have been in two decades at this time of year. They cost around $26 for an approximately 20-lb. box, said the outlet.
Prices for avocados typically surge in February since they are used for guacamole, a Super Bowl snack staple. In fact, the Super Bowl is the biggest day for overall consumption in the U.S.
While Americans still don’t eat as many avocados as Mexicans, consumption of the fruit doubled in the U.S. over the past decade and is expected continue growing.
As demand rises even more this month, COVID-19 pandemic-related supply chain issues such as labor shortages, high production costs and wage hikes could add to the price of the popular dip.
“These higher prices will test how strong the demand for avocados really is,” said David Magana, senior analyst for Rabobank International in Fresno, California, according to Bloomberg.
One silver lining is that there should be plenty of avocados in stock. Shipments from Mexico are expected to be plentiful. Areas suitable for cultivation of avocados are also are expected to expand globally in the future, according to a study published last month.
“If we continue to see higher prices despite better availability in the next couple of months, that’ll tell us the demand is there – not just for Super Bowl weekend, but year-round,” Magana said.
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