Peruvian avocado and citrus exports are operating in a challenging environment. Volumes are high, margins are tight, and market demands are strict.
"This is an 'on-year' for Peruvian avocado. Peruvian exports have increased by up to 30% over 2024, which has generated pressure in the main markets. Fruchincha, a company that exports 1,100 to 1,200 containers annually (700 of which are filled with only avocados), is keeping volumes the same as last year. It's been a very challenging season. There is more competition from Mexico, California, and Colombia. Europe has received 30% more volume than last year, which has forced a drop in prices," stated Francisco Camino, CEO of Fruchincha.
© Fruchincha
"Currently, avocado prices in Europe range between 5 and 8.5 euros per box, well below the 10 to 12 euros recorded in the same week of 2024." July is traditionally the most critical month. "It is the peak of the season, and if we send more fruit than the market can absorb, prices fall," he said. The silver lining is that low prices allow more consumers to try avocado, boosting future consumption, he added.
It's also been a difficult season for citrus. "The early varieties, such as Satsuma and Primosole, were affected by overlapping harvests from California and Morocco. In addition, Peruvian production grew by 87% in Satsuma and 200% in Primosole, compared to 2024," he stressed.
© Fruchincha
"Late varieties, including W. Murcott, Tango, and Orri, had a slower start due to unfavorable weather conditions. Until week 26, exports were 35% lower than in the same period last year. Despite this, we expect to end up with similar volumes to 2024. The fruit has good quality, color, Brix levels, and firmness," he said.
Logistics costs continue to be the biggest obstacle. "The 10% tariff on exports to the U.S. means up to 10 cents of a dollar per kilo in additional costs. That's a significant blow to growers," Camino stressed. As a result, growers are switching to other crops. "There are no new citrus crops. Some growers are migrating to avocado, grape, or pomegranate."
Finally, Camino advocates for better cooperation and coordination. "We need to better align supply with demand to avoid surpluses. We also need public policies that guarantee sustainability, safety in the field, and access to basic services."
Fruchincha, which operates in Europe, the United States, and Asia, is committed to consolidating late varieties and continues to integrate producers from the mountains to offer Peruvian avocado all year round.
For more information:
Francisco Camino
Fruchincha
Peru
Tel: +51 958 795 841
Email: [email protected]
https://fruchincha.com.pe/
