Tariffs don’t mean avocados are toast
The threat of levies on Mexican imports doesn’t seem to be bothering the market.
Avocado giant Mission Produce is on track for its biggest single-day gain since going public in 2020 after reporting record revenue numbers in the fourth quarter of 2024.
The reason? Rising prices. Prices for avocados were up 36% year over year, helping to drive the company’s year-on-year 37% growth. Revenue hit a record $354.4 million.
The fact that people were willing to pay up for the guacamole ingredient, and the company’s diversified production base among countries including Colombia, Peru, and Mexico, as well as California, are part of the reason why Mission Produce executives don’t seem particularly shook by the prospect of tariffs that the incoming Trump administration has threatened to impose on Mexican imports.
Mission Produce Chief Operating Officer John Pawlowski told analysts:
“We have really seen the consumer be resilient through both an inflationary period as well as price. Not just the price side, but also from a supply challenge perspective. And the consumer is really taking away more and at a higher price than they ever have. So, both of those two things combined, I see Mission positioned in a great spot kind of regardless of what happens on the tariff side of things.”
Avocados could provide an interesting lens through which to observe the economic impact of any Trump-administration tariffs and how consumers react. Earlier this month, Chipotle — a giant consumer of avocados — raised prices, in part to offset growing guac costs.
