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Daniel Falla Hernández, Agrícola Don Nicolás:

Multi-origin avocado oversupply puts pressure on prices in Europe

"It's been a challenging season for us. The European market has presented a particularly challenging scenario, as the supply of fruit from Israel, Morocco, and Spain has generated significant pressure on prices. In previous seasons, there was less supply in the international market from other origins," stated Daniel Falla Hernández, operations manager of Agrícola Don Nicolás.

Despite having a stable production volume, the company's export tactics were more conservative. "We sent a lower volume because there was already enough fruit at the destination. Faced with this greater supply from other origins, the company decided to delay shipments, prioritizing product quality and dry matter," he said. This conservative approach responds to this season's circumstances and also to the company's philosophy: "We always take our best quality fruit to fight in very competitive markets," he stressed.

© Agrícola Don Nicolás

The impact of these decisions reflects the company's pursuit of high standards and commitment to sustainability. "Agrícola Don Nicolás works to ensure that the exported fruit's taste, texture, and freshness meet the end consumer's expectations. This approach seeks to protect the value of the entire production and operational chain, generating economic benefits in Peru and strengthening the confidence of international customers," he stressed.

"Europe has become a difficult terrain this season, but the company has found opportunities in other emerging markets where it's been well appreciated," stated Falla, highlighting the need to diversify destinations and adapt to demand.

© Agrícola Don Nicolás

At the same time, the company is starting the citrus campaign, focusing on the W. Murcott and Tango mandarins. Exports will begin in week 23, with shipments to the United States and Latin America. "The volume in the north and south of Peru is quite small in the first weeks. The American market, in particular, demands higher quality, seedless fruit with a full T1 or T2 color. We are meeting these standards to ensure the competitiveness of our fruit," he said.

"We expect high mandarin prices at the beginning of the season, even though this year Chile is not facing the water issues that affected supply and prices in the United States last year. In the North American market, we'll compete with origins such as Chile and South Africa," he stated.

© Agrícola Don Nicolás

An additional difficulty in this market is the tariffs imposed by Donald Trump's government. "We are waiting and hoping for a good government-to-government agreement," stated Falla. Distributors in the United States want to shift the 10% tariff to producers, which would directly affect us in this market, he added.

For more information:
Agrícola Don Nicolás
Av. Alfredo Benavides 1944, Piso 9. El Rosedal, Miraflores.
Lima-Perú
Tel.: +51 974110195
Email: [email protected]
www.agricoladonnicolas.com

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