• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Guacamole’s Days Are Numbered as USDA Maintains Ban

Guacamole’s Days Are Numbered as USDA Maintains Ban

guacamole
Chips and guacamole. Photo: Getty.
February 18, 2022
Bloomberg

Avocados will soon run out at smaller restaurants that don’t have the buying power of Chipotle Mexican Grill Inc.

For example, Salsarita’s Mexican-themed restaurants won’t be able to make any more guacamole in about a week — 10 days maybe if they can stretch it. The 75-unit chain isn’t optimistic about getting any more avocado supplies for a while amid a suspension on imports from Mexico, which accounts for 80% of U.S. supply. So the inventory is what it is, according to Chief Executive Officer Phil Friedman. 

“We’ll use what we have. I’m not going to look for any type of alternative, we’re just going to announce to our customers that guacamole is not available until further notice,” he said in an interview. 

The avocado crunch is just the latest disruption in the food supply chain, which has been roiled by the pandemic with labor shortfalls, and shipping and logistics headaches. It’s part of what’s behind the fastest pace of inflation for consumers in four decades. 

Small restaurants are bearing the brunt of the supply chain turmoil. Businesses like Salsarita’s can’t negotiate large-order discounts, and don’t always have the cash reserves to pay premiums when competition for a product heats up. Costs are “horrendous,” Friedman said, noting that in addition to avocados, cups are hard to get currently. 

“Everything we’ve gone through, every week, is constant change with supply chain,” he said.

Even Chipotle, which recently opened its 3,000th location, said it has just “several weeks” of supply of avocados, and it can pull from other regions such as Peru.

“Our supply chain is hot on the path and working every angle, I assure you,” Chief Restaurant Officer Scott Boatwright said in an interview. 

Read more: Avocado Spat Brews After U.S. Inspector Is Threatened in Mexico

The U.S. Department of Agriculture’s halt on avocado imports from Michoacán, a coastal state just west of Mexico City, went into effect Feb. 11. A supervisor had received a threatening call because an inspector refused to certify an avocado shipment, the U.S. Department of Agriculture said in an emailed statement to Bloomberg on Thursday. The agency said it won’t lift the ban until it’s sure employees are safe.

“We must have assurances that our employees’ lives are not at risk,” the statement said.

Avocado prices are soaring in the meantime, with Mexican prices nearly triple that of a year ago, according to Mexican government data.

Some businesses are looking for alternative avocado sources. The week after the Super Bowl is usually slow, but J.R. Simplot Co. has seen about a 20% uptick in buyer interest from food service clients for its frozen and pre-packaged guacamole products, which have a longer shelf life than fresh avocados, said company spokesperson Josh Jordan. 

Mexican-inspired restaurant El Barrio in Birmingham, Alabama, usually pays between $30 to $40 dollars for a case of 48 avocados, said co-owner and chef Neville Baay. Now, the price has jumped to $65 dollars. If the price gets high enough, they might have to pull it from the menu, even though guacamole is a best-selling item.

“The Chipotles and Taco Bells of the world can ride with the current,” said Baay. “We have to take our lumps and hope it doesn’t get too bad.”

RELATED CONTENT

RELATED VIDEOS

Global Supply Chain Management Global Trade & Economics Supply Chain Security & Risk Mgmt Supply Chains in Crisis Food & Beverage Latin America North America
  • Related Articles

    New Orleans Faces Days Without Power as Repair Work Begins

    Indonesia Threatens to Ban European Goods as Palm Row Escalates

Bloomberg

Amazon Aims to Sublet, End Warehouse Leases as Online Sales Cool

More from this author

Wake up to live
“Supply Chains in Crisis”
updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Medical drone

    Amazon May Be Proof That Delivery Drones Aren’t Practical

    Last Mile Delivery
  • ESG Guide

    Confronting the ESG Imperative in Supply Chains

  • SEC building seal

    Get Ready for the Next Phase of ESG: Mandatory Corporate Due Diligence

    Regulation & Compliance
  • Heat Wave Triggers Blackouts

    Vast Swath of U.S. at Risk of Summer Blackouts, Regulator Warns

    Supply Chain Security & Risk Mgmt
  • Worker using tablet

    Podcast | Stitching Together the Physical and Digital Supply Chain

    Technology

Digital Edition

Scb may 2022 sm

2022 Supply Chain ESG Guide

VIEW THE LATEST ISSUE

Case Studies

  • 3PL Doubles Productivity With Robots to Fulfill Medical Supply Orders

  • E-Commerce Company Cuts Order Fulfillment Time by 40%

  • Fashion Retailer Halves Fulfillment Time With Omichannel Automation

  • Distributor Scales Business by Integrating Warehouse Automaton Software

  • Fast-Growing Fashion Brand Scales E-Commerce Fulfillment With Whiplash

Visit Our Sponsors

Yang Ming Alithya Barcoding
Blue Yonder BNSF Logistics Generix
GEP GIB USA GreyOrange
Here Honeywell Intelligrated Inmar
Keelvar Kinaxis Korber
Liberty SBF Locus Robotics Lucas Systems
Nvidia Old Dominion Parsyl
Redwood Logistics Saddle Creek Logistics Schneider Dedicated
Setlog Holding AG Ship4WD Shipwell
Tecsys TGW Systems Thomson Reuters
Tive Trailer Bridge Vecna Robotics
Whiplash    
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2022 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing