According to Fresh Fruit, Peru exported 613,947 tons of avocado for 976 million dollars between January and September 2022, the period of time in which the country makes 99% of its shipments. The export volume increased by 11% but its value decreased by 10%, as the average price achieved in this campaign stood at 1.59 dollars per kilogram, one of the lowest prices in recent years.
On the production side, in the last five years, the avocado cultivated areas have more than doubled and, according to forecasts, by the end of 2022, there will be nearly 43,000 hectares devoted to this crop. During 2021, the avocado was the third most shipped Peruvian agricultural product and expectations are that, with the growth obtained in 2022, it will remain in the country's top 5 agro-export products.
Challenges at the international level
"As a result of the global logistics crisis, many of the world's major markets chose to prioritize importing products from sources that are closer to them. The European market is a great example of this. Due to this crisis, large importers -such as the Netherlands and Spain- gave more space to closer producers, such as Israel, Slovenia, and Morocco. This has generated a significant increase in competition for Peruvian avocados, which has been reflected especially in the prices paid for their product. Currently, the European market is paying about 1.44 dollars per kilogram of avocado, i.e. 26% less than last year," Fresh Fruit stated.
US Mexican avocado imports have declined due to the drop in production in Mexico's key states. In addition, the avocado produced in California, which usually accounts for 10% of American consumption, has been affected by severe droughts and heat waves.
"While it seemed this would be a good opportunity for Peruvian producers, as the US continues to be one of the markets that pay the best prices for Peruvian avocado (1.90 per kilogram), there have been some changes in its consumer's demand because of the readjustments in people's shopping habits due to inflation. Consumers are prioritizing purchasing essential goods and convenient products well above exotic products, including avocados. However, Peruvian shipments of avocado obtained positive results by increasing both their volume and their value in this market."
Main destinations
Until September 2022, the main destinations for Peruvian avocados were the Netherlands (29% share), the United States (28%), and Spain (14%).
Source: freshfruit.pe
