Saturday, March 8, 2014

Made a graphic to show why Chipotle is concerned about the supply of avocados. Maybe we DO need to be worried after you see this.

I pieced together two maps (sources cited below) to show why the Chipotle restaurant chain has expressed some concern about its supply chain in regards to avocados.

California produces 86% of the avocado crop in the US. Roughly 390 million pounds.

Chipotle uses about 35 million pounds of Avocados per year, or 9% of the total crop by itself.

Any reduction in the crop due to drought loss would have a negative impact on the over-all supply.  Hence rationing by price would be the order of the day.

Might be a good time to get into the futures market for Avocados....IF there is one!?!?!
Drought Map from Washington Post.  The avocado map from Mission Avacado

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