So... wonder if CMG will pull back on this. US suspends Mexican avocado imports after threat to inspector Avocado exports are the latest victim of the drug cartel turf battles and extortion of avocado growers in the state of Michoacan. Mexico has acknowledged on Feb. 13, 2022, that the U.S. government has suspended all imports of Mexican avocados after a U.S. plant safety inspector in Mexico received a threat. Feb. 13, 2022, 5:49 PM UTC By The Associated Press MEXICO CITY — Mexico has acknowledged that the U.S. government has suspended all imports of Mexican avocados after a U.S. plant safety inspector in Mexico received a threat. The surprise suspension was confirmed late Saturday on the eve of the Super Bowl, the biggest sales opportunity of the year for Mexican avocado growers. Avocado exports are the latest victim of the drug cartel turf battles and extortion of avocado growers in the western state of Michoacan, the only state in Mexico fully authorized to export to the U.S. market. The U.S. government suspended all imports of Mexican avocados “until further notice” after a U.S. plant safety inspector in Mexico received a threatening message, Mexico’s Agriculture Department said in a statement. “U.S. health authorities ... made the decision after one of their officials, who was carrying out inspections in Uruapan, Michoacan, received a threatening message on his official cellphone,” the department wrote. The import ban came on the day that the Mexican avocado growers and packers association unveiled its Super Bowl ad for this year. Mexican exporters have taken out the pricey ads for almost a decade in a bid to associate guacamole as a Super Bowl tradition. ++++++++++++++++++++++++++++++++++++ One might think "big deal" but: ++++++++++++++++++++++++++++++++++++ Pounds and pounds and pounds of avocados Chipotle customers really love their guac — enough to pay extra for it when ordering a taco, burrito, or bowl — and all those orders of creamy, chunky avocados really add up. But the precise amount of avocados needed might actually blow your mind. According to Nasdaq, that figure is 35 million pounds of the creamy green fruit per year, or 97,000 pounds per day. Chipotle restaurants make their guac in batches, each of which uses 60 avocados, according to Nasdaq. According to the Philadelphia Inquirer, Chipotle sources most of its avocados from Mexico, which is by far the world's largest supplier of the fruit. But in recent years, the prices of these coveted avocados has surged, leading the chain to expand its importation from areas including California, Chile, Peru, and Colombia. As for us, we don't really care where those avocados come from: All we know is that we want that guac, whether we eat it out or make it at home. ++++++++++++++++++++++++++++++++++++++ So 97,000 pounds/day. Quick math using the serving size on their website: $3.05/ 4oz serving ===> $1.2MM/day=====>$108MM/quarter $1.6B revenue last quarter====> 6.75% hit to revenue. Obviously they'll source elsewhere, but this will matter.
Avocados are a good example of inflation. Prices are way up. Have you see the price of lemons? OMG. $1.29 per here in the city.. Chpotle has been slinging plant-based crap. Maybe they can fake the avocado. If we all would cut back we could tamper this inflation.
“U.S. health authorities ... made the decision after one of their officials, who was carrying out inspections in Uruapan, Michoacan, received a threatening message on his official cellphone,” the department wrote. Worst job in America? Ah Jimmy we are sending you out to Uruapan, Michoacan cell phone service not so good....
Mission Produce Inc.<-- Do these guys grow their own? AVO Alert Last Updated: Feb 11, 2022 4:00 p.m. EST Delayed quote $ 13.40
Van these guys process HESS<-- Slowdown don't Hess come from Mexico? Major competitive or other industry participants include: Calavo Growers (CVGW) Fresh Del Monte Produce (FDP)
Van there is an Avocado short here somewhere- CVGW- A Company In Turmoil From the jump, it's important to distinguish between Calavo and rivals such as Mission Produce (AVO) and Dole (DOLE). The latter two cultivate much of the produce that they sell. Meanwhile, Calavo is not actually primarily engaged in farming... And probably a LONG DOLE<----------
I expect DOLE to outperform this contraction due to their higher-growth exposure and superior scale. FDP also noted two primary margin pressures were soft banana demand (38% of revenue vs 27% for DOLE) and having sizes of pineapples not demanded by retailers (11% of revenue vs 4% for DOLE). Avocado specialists Calavo Growers (CVGW) and Mission Produce (AVO) also experienced Q3 EBITDA contraction, despite 5.4% and 4.4% Y/Y revenue growth, respectively. Mission Produce noted their vertical integration, diverse sourcing, and owned production mitigated cost pressures. Avocado Pure Play looks like Mission..... AVO $ IDEA FOR NEXT WEEK -!
For short candidates, wouldn’t growth companies with low or no real earnings be a good play for a little trend down? You should expect them to get an extra kick down due to the rate hike stories. Or would this be too obvious?
Isabella isabella eso es lo bonito del hilo la interaccion entre estos dos disfruta el entretenimiento y las ganancias.