MANAGEMENT

Recently, the avocado has risen to the top of the fruit baskets in the United States. Fresh
avocados have their biggest market in the United States. Growers in the early 20th century were
the first to experiment with a new and exciting product. This industry’s 2 billion-pound market
size can be attributed to a number of key developments. Since avocados have become more
widely known in the United States and other countries, their popularity has continued to rise. As
recently as the early 20th century, avocados were virtually unknown in most of the United States.
There were a few isolated hotspots of interest. Southern California was the primary source of
supply for the West Coast, while Florida and Cuba supplied avocados for East Coast customers.
The growth of demand for avocados has been supported by imports from Mexico, the world’s
largest producer, lifted by the United States government in the late 1990s, and the influence of
labor unions.
As the country transitioned from an agricultural to an industrial economy, the
composition of the labor force in the United States shifted dramatically. Until the final decades
of the nineteenth century, the United States was largely an agricultural nation. Even skilled
craftsmen, artisans and mechanics were paid less than half as much as unskilled workers in the
early American economy. As many as 40 percent of city workers were low-wage garment
factory workers, often living in squalor (Jaffee, 2007). Children, women, and low-wage
immigrants were among those forced to work in factories as production increased. Industrial
expansion occurred in the late 19th and early 20th centuries. The California Avocado
Commission, in the 1980s and 1990s, had been successful in promoting California avocados. In
accordance with state law, growers had to contribute a percentage of their crop value to this
cause. Many Americans left their farms and small towns to work in factories, which were

MANAGEMENT 3
organized for mass production and characterized by a steep hierarchy, a heavy reliance on low-
skilled labor, and low pay. The power of labor unions grew over time in this environment.
Moreover, while organized labor is still a significant political and economic force, its
sway has dwindled significantly over the years. A shift has occurred in the balance of power
between manufacturing and the service sector. Workers with the ability to adapt to the rapid
advancements brought about by computers and other new technologies are in high demand in a
growing number of new industries. To meet the demands of a rapidly changing market, some
companies are reducing their hierarchical structure and instead employing self-directed,
interdisciplinary teams of workers (Edgell & Granter, 2020). A wide range of media outlets are
used by the associations to promote the consumption of avocado. Aside from social media,
television, and radio, these have been the most memorable. All of the major professional sports
leagues, from the National Football League to Major League Baseball, are doing well because of
their marketing strategies. When it comes to coupon campaigns, many of these organizations
have partnered with major national and regional supermarket chains (Aguirre & Goméz, 2020).
Customers have been given avocados to try as part of sampling demonstrations sponsored by the
company. Academia-related organizations participate in a variety of food and produce fairs
across the country. Avocado consumption has received increased attention from nutrition
organizations in recent years because of the health benefits that have been linked to it.
Furthermore, for 87 years, the U.S. government had imposed a ban on avocado imports
because it was deemed a threat to agriculture. A large-scale export of avocados began in 1997
after Michoacán was declared borer-worm free. The North American Free Trade Agreement
(NAFTA) had a significant impact on exports, and by 2005, Mexican avocados were found in
every supermarket in the United States, the world’s most important market for the fruit (Khan et

MANAGEMENT 4
al., 2021). In just ten years, consumption in the United States has more than doubled. Workers on
large avocado plantations and smallholder avocado farmers have been the primary targets of the
Fairtrade model until recently. This suggests that Fairtrade has not had a significant impact on
labor standards in small farms based on the limited evidence that is currently available. Studies
show that Fairtrade certification has a positive impact on the management and organization of
avocado producer cooperatives.
At times of low market prices, producers of avocados have relied on the minimum price
as a buffer. Fairtrade does not set a minimum price for some commodities, such as sugar and
some fruits and vegetables. A lack of a minimum price is usually the result of market structures
or regulations. For the first time, in 2010, Fairtrade began certifying avocados in order to address
the industry’s labor and environmental challenges and provide consumers with responsibly
produced avocados. About 70% of the Fairtrade avocados imported by the United States are
grown on small farms in Mexico (Jaffee, 2007). Fairtrade avocados are a symbol of social and
environmental responsibility. When market prices exceed the Fairtrade Minimum Price,
purchasers of Fairtrade certified produce negotiate with the producers to set a price for their
purchases. Negotiated prices must never be less than market prices in order to meet Fairtrade
standards. The product’s quality or other attributes may be used as bargaining chips by the
manufacturer or trader in order to raise the price. This price floor serves as a safety net for
farmers in difficult years, while also encouraging long-term investment by producers.
Essentially, when it comes to avocados, retailers frequently offer steep discounts, selling
the fruit for less than it is worth. Avocado farmers are caught between a rock and a hard place
because of these interrelated issues. When consumers buy Fairtrade products, they help to
empower avocado farmers and workers; the more sales they make, the more benefits they will

MANAGEMENT 5
receive (Khan et al., 2021). In order to protect themselves from falling prices, farmers of
Fairtrade avocados receive a Fairtrade Minimum Price. In order to cover the costs of sustainable
production, this price varies from region to region. There is also a Fairtrade Premium, which is
money that farmers and workers can use to invest in their own businesses and communities.
Worker rights and working conditions in large plantations where most of the world’s export
bananas are produced are safeguarded by the Fairtrade Standards, which producers commit to
when they become Fairtrade certified. In times of low conventional market prices, certified
producers have reaped the benefits of higher prices through Fairtrade certified sales.
Consequently, global collaboration in the avocado industry has been able to forge an
enormously successful organization that has significantly aided sales and maintained profitably
priced products and services. Laws that allowed massive imports from Mexico could have easily
crushed pricing at the time of this action. Produce manufacturers face the challenge of finding in
this important work an understanding that will allow sales to increase not from other produce
items but by seeing food as a replacement for protein (Ballen et al., 2022). In the produce
industry, avocados have been a huge success story. It is due to a rise in the number of people
from Mexico and other Latin American countries who live in the United States. Avocado imports
from Mexico were unrestricted after legal changes were made, allowing for a plentiful supply
that was not burdened by high transportation or tariff costs. The rise of Mexican cuisine in the
United States can be attributed to cultural shifts in the country. Avocados, for example, can now
be grown in supermarkets because they have grown in size.
Besides, for the young entrepreneurs to organize their orchard, it is a weekly business for
tracking produce. It is the job of the manager to keep track of customer orders and estimate the
amount of avocados needed to meet those orders (Rudo, 2021). Despite the fact that Fair Trade

MANAGEMENT 6
has a minimum price that all Fair Traders must pay, avocado prices have been skyrocketing in
recent years. It’s impossible to put a ceiling on the price of Fair Trade because there is no such
thing. Avocado companies purchase all avocados that are ready for harvest from a large group
that includes large and small growers. This includes all sizes and quality grades. Consolidating
purchases and grading by quality is possible because they have their packhouses. They may be
able to salvage some of the less appealing fruit. Guacamole may be on the menu. Even organic
Fair Trade organic products may be sold by the same company. Avocados purchased from
various farmers, regardless of price, size, or quality, will bring in a weekly profit. Farmers are
the primary suppliers of raw materials in this case. Any price that can be gotten is good enough
for them, as long as they do not have to put any money into the product themselves.
Ultimately, the young entrepreneurs should affirm partnership with the Fairtrade
movement is becoming increasingly popular as a supply chain management tool for businesses.
Farmers can benefit from targeted programs that help them adapt to climate change, inspire the
next generation of farmers through innovation and technology, and look for new sources of
income. Real (inflation-adjusted) prices for fresh avocados have fluctuated a lot over the last few
years, reflecting supply volatility (Green & Wang, 2020). However, the industry’s ability to
expand demand to at least keep pace with rapidly rising shipments of fresh avocados to the U.S.
market has kept real prices on average constant or slightly increased. Fairtrade Standards include
environmental requirements that must be met by both organizations and plantations, such as
water and soil management, pest control and use of pesticides, fertiliser application, and
biodiversity conservation.
In conclusion, entrepreneurs can increase worker representation through Workers
Committees in environments hostile to trade union organization but has not been as successful in

MANAGEMENT 7
promoting the wider trade union movement and has contributed to the establishment of
alternative institutions. Workers employed by smallholder members of certified small producer
organizations have received less attention in Fairtrade Standards in the past. Therefore, requiring
small farmers to raise wages and working conditions for their employees is a challenge. High
growth is expected in the global avocado market during the forecast period. Key market statistics
are provided in the Avocado report, along with key trends and opportunities in the market.

MANAGEMENT 8

References

Aguirre, J. and Goméz, M., 2020. Competitive Strategies in Contexts of Organized Crime: The
Case of the Avocado Industry in Mexico. International Journal of Criminal Justice
Sciences, 15(1), pp.114-126.
Ballen, F.H., Evans, E. and Parra-Acosta, Y.K., 2022. Consumer Preferences for Green Skin
Avocados in the US Market: The Role of Experienced Quality Attributes, Credence
Attributes, and Demographic Factors. Journal of Agricultural & Food Industrial
Organization, 20(1), pp.15-23.
Edgell, S. & Granter E. 2020. The Sociology of Work: Continuity and Change in Paid & unpaid
work. London: Sage Publications. ISBN 978-1-5264-0263-9
Green, H.S. and Wang, S.C., 2020. First report on quality and purity evaluations of avocado oil
sold in the US. Food Control, 116, p.107328.
Jaffee, D., 2007. Brewing Justice: Fairtrade Coffee, Sustainability and Survival. Berkeley;
University of California Press. ISBN 978-0-520-24959-2
Khan, N., Korac- Kakabadse, N. & Skouloudis, A. 2021 Socio-ecological resilience and
environmental sustainability: case of avocado from Mexico. International Journal of
Sustainable Development & World Ecology. 28:8, 744-758,
Rudo, J.L., 2021. Beyond the Guacamole: How Drug Organizations Became Involved in the
Avocado Industry (Doctoral dissertation, The University of West Florida).