Posts Tagged “Peruvian avocado exports”
Peruvian avocado exports started in January, but the 2024 crop experienced small volumes of fruit from the inter-Andean valleys, especially compared to the large volumes that are estimated to leave the country in April and May, according the Association of Hass Avocado Producers and Exporters of Peru (ProHass).
As reported by Agraria, about 93 percent of the avocados exported from Peru are the Hass variety, the most exported in the world. In 2022, 554,000 tons of Peruvian Hass avocados were exported; in 2023, there were 558,000; reflecting growth of about 1 percent.
This year Peru expects to export about 468,000 tons of Hass avocados, which would mean a drop of 16 percent compared to last year, although it could be larger. There have been unfavorable weather conditions for cultivation.
Since there are no longer new areas of expansion, each climatic blow will be felt in the export figures; when it is growing. The adverse weather events are hidden by the new hectares that enter, but Peru is no longer expanding as it did.
There are several factors that are contributing to less overall volume this season. Mexico is already finishing its heavy volume of the season, with less production; California comes with smaller fruit and a drop of between 20-30 percent; Chile is no longer a player that moves the needle anywhere in the world, as they consume everything they produce and have problems with the availability of water; Spain volume is being impacted because of a water issue; Portugal has already stopped its growth, they also had problems with water availability; Some African countries such as Senegal, Tanzania, Morocco, and South Africa are growing, but they do not compete with the Peruvian avocado, as they go to other destinations such as the Middle East, they also go to Europe.
Between January and September of 2023, the Peruvian avocados were exported to 36 different countries with a total market value of $953 million. Compared to the previous year, this was a 9% increase from the $874 million reached in 2022, according to The Peruvian Exporters Association (ADEX).
In terms of volume during this period, 594,778 tons were exported, 3.3% more year-on-year.
The industry struggled with challenging weather conditions during August, which reduced the month’s harvest volume year-on-year from 48,401 tons to 45,041 tons. However, regions like Pasco and Ica experienced more than an 85% increase in production volume.
The United States stands as the third main destination of Peruvian avocados this year, with a total import value of $135 million. Only The Netherlands and Spain have a bigger share of the market with $293 million and $185 million in total value, respectively.
Chile and the U.K. finish the top five list of Peruvian avocado importers with a shared import value of $97 million, according to ADEX.
Leading export companies were Avocado Packing Company S.A.C., Westfalia Fruit Perú S.A.C., Camposol S.A., Virú S.A., Sociedad Agrícola Drokasa S.A., Agrícola Cerro Prieto S.A., and Agrícola Pampa Baja S.A.C.
A reduction in the projection of exports of Peruvian avocados has been lowered to 598,344 tons in 2023. The Hass Avocado Producers Association of Peru (ProHass) reduced the forecast after estimating shipments of more than 630,000 in March, according to La Republica.
This decline is even less than the 624,000 tons that ProHass announced in January and represents only 8 percent more than the 554,299 tons that were shipped in 2022. Until a few months ago, a growth of 14 percent was expected for the current year.
Juan Carlos Paredes, president of ProHass, attributed this setback to a harvest with fruits between 10-15 percent smaller due to the effects of the La Niña phenomenon in 2022. The estimate for shipments to Europe in 2023 had already gone from 358,685 to 341,850 tons.
“During the last few years, we have had a very large growth in avocado exports to the world. This year we expect to close at close to 600,000 tons, an advance of 8 percent compared to 2022,” Paredes said at a press conference.
ProHass expects export growth in the order of 10 percent by 2024. By 2023, it anticipates that demand growth will remain between 6-8 percent per year nationally and internationally.
“Initially, growth was projected at 14 percent, but we have reduced the figure due to a smaller fruit size. It is equally important, with Peru being the second exporter worldwide,” said Paredes.
It is not the only obstacle that the sector has encountered this year. The transit time to Asian countries –one of the markets most sought after by producers — has not yet recovered its pre-pandemic levels. Insurers also do not cover port diversion delays.
Consequently, the avocado is no longer exported to prevent it from spoiling along the way, and with this, the entry with larger volumes to still incipient markets for the Peruvian Hass avocado such as India, Japan, Korea, and China is lost. The latter has been multiplying the number of containers it receives.
“Transit times are long, which makes trade with countries on this continent difficult,” Paredes added.
Currently, Peru has around 60,000 hectares of Hass avocado, managed by a total of 23,675 producers. It is the second largest global exporter, only behind Mexico, to the point that 80 percent of the avocado consumed in the countries of Europe in summer is Peruvian.
Oxnard, CA– Westfalia Fruit, the market leader in growing, ripening, handling, and distributing quality avocados, announces the start of its Peruvian avocado season with supply available now through mid-September.
Westfalia began exporting Peruvian avocados in 2016 and is now the 2nd largest exporter, with a presence in 15 regions across the country and a growing area spanning over 4,600 hectares. Westfalia operates 4 avocado nurseries in Peru in addition to a brand-new state-of-the-art packinghouse in Canete, located in southern Lima.
“We operate 4 experimental and teaching orchards located in strategic areas across Peru,” said David Fausset, Business Development Director at Westfalia Fruit. “These orchards empower our growers to optimize crop management and teach sustainable production methodologies that support our social and sustainable responsibilities.”
Established over 70 years ago, Westfalia markets prime-quality, ready-to-eat avocados across the globe through its vertically integrated supply chain as well as its technical and commercial expertise. Its global supply chain and distribution network allow Peruvian avocados to ship to all major North American ports of entry.
About Westfalia Fruit Group
Established over 70 years ago, Westfalia Fruit Group is a global, vertically integrated company and market leader in growing, ripening, processing, shipping and distributing the product.
A 14 percent increase over last season is forecast by The Peruvian avocado industry. If it holds this will mean a total of 630,000 tons in production for this season.
The Peruvian Association of Hass Avocado Producers (Prohass), projects a record season.
The Peruvian season occurs between March and August with about 500 to 600 containers a week.
A main cause for the production increase is the addition of 24,000 new producers, covering approximately 49,420 hectares. These growers have a maximum of four productiveacres, with a yield between 2 to 8 tons, which did not exist before.
This is in addition to the production of medium and large companies, ranging from 24 acres to more than 98,840 acres.
According to official data from Prohass, for the current season, they plan to export approximately 630,000 tons. The primary destination is Europe, followed by the United States, Asia in third place and South America, mainly Chile and Argentina, in fourth place.
The Peruvian avocado industry is looking to export an estimated 624,000 tons of the fruit in the 2023 season, an increase of nearly 13 percent, according to the Peruvian Association of Hass Avocado Producers (ProHass).
Despite political turmoil in Peru the last days of 2022, the industry managed to meet the estimates for the end of the season, recording only a delay in shipments due to the influence of La Nina on crops.
The growth in avocado production is the result of the investments the industry has made in previous years. Additionally, a significant number of trees that have reached maturity, boosting the current season’s production.
ProHass expects the huge U.S. market to have enormous potential for Peru.
The U.S. is close in proximity, although, Mexico’s closeness allows it to have the product on shelves practically two days after harvesting. This makes it a very challenging market for Peruvian avocados. However, ProHass points out its product has been well received during Mexico’s off months, from May to July, which is the peak for Peru.
Chile is also a natural market for Peruvian avocado, representing 10-15% of all exports.
This year in particular Chile has little production, so ProHass estimates 15 and 20% of its product will be exported to Chile.
Exports of avocado from Peru are expected to grow by 8 to 10 percent in 2022 compared to the previous year. Growth likely will be with exports to Europe, but supply problems in the U.S. could change these projections.
An article in Agaria.pe cites numbers from Peruvian avocado growers’ association ProHass. It notes 2021 was already a year of substantial growth, increasing 20 percent compared to 2020 to hit 483,00 tons of shipped fruit.
This increase was mainly expected to come from exports destined for the Netherlands which supply the EU.
The season for Peru avocados starts in April or early May, when it ripens enough to reach the quality for the U.S. market. According to the report, this allows Peru to get in on consumption trends associated with July 4th and the Labor Day long weekend in September.
Last year Peru’s trade minister lauded the growth registered in the value of Peru’s avocado exports. At the time it was noted 2021 exports, not including the final two months of August and September, were already up 14 percent compared to the entire 2020 season.
An estimated 460,000 metric tons (MT) of Hass avocados will be exported from Peru in the 2021 season, an increase of almost 30 percent over last season.
ProHass Peru reports this increase will represent an additional 100,000MT compared to the previous season.
New strategies have been launched this year, including opening markets while consolidating existing ones and working closely with SENASA to make sure only mature fruit is exported, ProHass reports.
The primary change will be incorporating small and medium producers to export their fruit.
“Avocado growers in the Sierra de Ayacucho, Cajamarca, Lima and Arequipa regions among others will be included, with fruit harvested and exported as early as January.
The Peruvian avocado export season is now expanded to nine months, from January to September.
Peru’s main export destinations are Europe and the U.S, with the former importing 270,000MT, and the latter with a projected volume around 100,000MT.
Asia follows with 78,000MT and then Chile with 42,000MT, a country that has increased its import of Peruvian fruit this year and is expected to have an increase for the season of around 70 percent over last year.
A 10% increase in Peruvian avocado exports for the 2021 season are estimated compared to last year.
The Peruvian avocado shipping season is from May through August.
A new report recently released by the USDA forecasts export volume will reach 450,000 metric tons (MT) in 2021, increasing 10 percent by volume compared to the previous year.
Avocado exports already increased 30 percent in 2020, in comparison to 2019, reaching a record of over 410,000 MT.
Although Peru’s avocado exports to the world increased in 2020, exports to the U.S. fell 22 percent by value and 9% by volume to $179 million and 78,665 MT.
International avocado prices in 2020 fell to US mainly due to oversupply.
This change was mostly driven by better pricing in other markets, however, the U.S. still made up 19 percent of total avocado exports last year.
The Hass avocado association Prohass of Peru expects Hass exports could increase about 10 percent next year
Website Agraria reports exports in 2021 could rise to about 400,000 metric tons (MT), up from the 365,000 MT exported this year. The crop for 2020 marked a 26 percent increase from the previous year, which was a 15 percent decline.
The increase in 2020 is due to new orchards coming into production and maturing. In 2020 around 4,942 acres of production were added onto the 79,074 acres already planted, and more are expected to be planted next year.
The new hectares are concentrated in the north of the country, in the Olmos Irrigation project.