The price of avocados in Chile has risen to nearly 5,000 pesos per kilo this season, widely exceeding the export price. In Chile, producers sell a kilo of avocados for 3,300 to 3,500 pesos, not including VAT; with the dollar's decline in recent weeks, this is equivalent to 4.5-4.8 dollars per kilo, according to La Segunda. In Europe, the main export destination for Chilean avocados, prices stand at 2.5 - 3 dollars per kilo, i.e. 1,840 to 2,200 Chilean pesos.
Prices in Chilean supermarkets are even higher. A kilo of the top-notch export variety is being sold for 4,890 pesos in Jumbo, and for 4,790 pesos in the Lider supermarket chains.
As a result, producers are choosing to direct their products to the domestic market.
Why are prices so high?
One of the main reasons avocado prices are so high in the country is the sharp drop in production due to the scarcity of water in the country. In addition to the drought that has affected production for a decade, last year the temperatures affected the setting of the fruit, stated Carmen Gloria Lüttges, Agricom's avocado unit manager.
“There will be 40% fewer avocados this season,” stated Miguel Allamand, president of Subsole. "Internal prices had never been so high on this date," added Pamela Rojas, Subsole's internal market manager. "Prices had an important increase at the end of the season, from March onwards."
According to the Exporters Association, the country has already exported 67 million kilos of avocados. Estimates are that the season will end with just over 70 million boxes; a volume that is much lower than the 135 million boxes exported in the 2019/20 campaign, the 144 million of the 2018/19 campaign, and the 157 million of the 2017/18 campaign.