Guac Fans: Stock Up on Avocados Before Price Hike
Avocados may be harder to come by in the coming months, or they may become more expensive due to bad timing on a series of unfortunate events.
California's drought takes a bulk of the blame as the state produces 95 percent of avocados in the U.S. Farmers are abandoning the fruit because water is too costly and avocados require too much of it to grow, according to news site Mic. Rising temperatures are also expected to lower California avocado production by as much as 40 percent in the next three decades, Mic reports. Outside the U.S., avocado exports from Mexico are being disrupted by gang violence.
On top of supply challenges, avocado popularity is at an all-time high, outpacing production -- similar to what happened with demand pressure on quinoa.
Earlier, fast-casual restaurant chain Chipotle (CMG) sparked jitters when it threatened to nix guacamole from its menu if avocado prices continue to rise. If current trends persist, the company's threat may become reality.