DFNet

January 12, 2026 | The Take Out |

California produces about 90% of U.S.-grown avocados, mainly in San Diego County, but domestic production faces growing challenges. Although the 2024/25 crop was valued at about US$471 million — one of the highest on record — its value fell around 10% from the previous season despite rising retail prices. Growers cite high water costs, as avocado trees require large daily water inputs, along with labor shortages worsened by restrictive migrant labor policies. Increasing production costs and strong competition from cheaper imports have forced many farmers to reduce acreage or exit the industry. Bearing avocado acreage in California has dropped from over 76,000 hectares in the late 1980s to under 50,000 today.

While California dominates domestic production, it supplies less than 10% of avocados sold in U.S. stores. About 90% are imported, mainly from Mexico, with additional supply from Peru and Colombia. Mexico alone produces over 2.5 million metric tons annually, far exceeding U.S. output. As foreign avocados remain cheaper to grow and ship, California’s role in the U.S. avocado market continues to shrink, raising concerns about the long-term viability of domestic production.

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