Economists are warning that policies to certify imports as “deforestation free” could backfire on California farmers.
UC Davis Assistant Professor Mark Agerton and his graduate student studied the issue after six U.S. senators raised concerns over avocado imports in February. The Democratic lawmakers argued the Biden administration should establish certification requirements to ensure the Mexican imports are not grown on illegally deforested land.
The researchers found such a policy would likely reduce the supply and raise prices for consumers. While California avocado growers would stand to benefit during their harvest, they would be competing against the marketing. The certifications on imported products could encourage consumers to pay more for the sustainability label, similar to an organic premium.
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The burden of ensuring the supply chain is not leading to deforestation would be costly for retailers and importers as well. Rather, the economists suggest the federal government maintains the standards and the necessary monitoring.
Yet the issue grows complicated when considering the agricultural intermediaries in California that often source from Mexico to bolster the local supply. A ban on any imported avocados that lack the certification could hurt those operations. The economists instead recommend a deforestation tariff to lower the implementation costs.
