Avocado shortage causes prices to spike

BTN11: Avocado shortage spurs price hike

GOLDEN VALLEY, Minn. - The laws of supply and demand are in full effect for avocado lovers.

A combination of some bad weather and a worker’s strike has created the perfect storm for price hikes and it's having a big effect on businesses in Minnesota and across the country.

"This is about as bad as we've seen it in years," said Eric McCabe from J&J Distributing in St. Paul. He said the company started noticing the price increase three or four weeks ago.

“And, there was a time last week we couldn't even load avocados at one point in the week, there were no avocados to be had. I think they went two weeks without picking anything in Mexico so nothing was crossing the lines and at one point I heard they left 25 million pounds on trees," recalled McCabe.

It all started with a drought in California. Then, the growers in Mexico decided to strike to help drive up prices. It worked. McCabe said a case of avocados went from roughly $30 to $45 a case to $80.

But fear not guacamole lovers, the end may be in sight.

“It is loosening up. They started picking at the end of last week so we're already seeing the market turn prices falling a little bit," said McCabe.

But, McCabe added that the demand is still high, meaning consumers shouldn’t expect a big drop at the grocery store.

"I would still expect you to be paying your $1.50 to $2.00 price point for avocados for at least a couple of weeks."

(© 2016 KARE)


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