US halts Mexican avocado inspections after cartel arrest, risking supply

The United States suspended government operations in the Mexican state of Michoacan on Wednesday, including inspections required to export avocados to the U.S., citing a threat to American interests.

Michoacan Gov. Alfredo Ramirez Bedolla said the halt was meant to protect workers following arrests linked to extortion, including the capture of cartel leader Alfonso Fernandez Magallon, known as "El Poncho," for whom the U.S. had offered a $5 million reward. Michoacan's security secretary said 300 security personnel were deployed to the region as a precaution, though no direct incidents involving avocado inspectors were reported.

Michoacan supplies roughly 80% of U.S. avocado imports and supports about 200,000 jobs tied to the crop. Mexico sold $3.65 billion worth of avocados to the U.S. in 2025, with exports up 35% in the first four months of this year compared with the same period last year. U.S. Department of Agriculture inspectors monitor Mexican plantations and packing houses for pests before shipments are approved, and threats against those inspectors have prompted suspensions in the past.

Read the full story at fortune.com.