A new report came out today that the U.S. government has suspended all imports of avocados from Mexico after a U.S. plant safety inspector received a threatening message. Apparently drug cartels have some interest in avocado growing and are taking advantage of avocado growers
I believe this could negatively affect the stock price of Chipotle Mexican Grill (NYSE:CMG) which uses a lot of guacamole, which has avocados in it. It has almost 3,000 stores in the U.S. and according to the Philadelphia Inquirer: “The burrito chain still gets most of its avocados from Mexico, which is by far the world’s biggest producer. But Chipotle is looking at sourcing more from California, Chile, Peru and Colombia to reduce its dependence on Mexico”
Sources:
https://www.inquirer.com/business/chipotle-avocado-mexico-shortage-20190724.html
https://ca.finance.yahoo.com/news/us-suspends-mexican-avocado-imports-164050334.html
I do not have any positions in any stocks mentioned in this article.
Devlin Demontigny 