Posts Tagged “Peruvian ag exports”
Peruvian agricultural exports totaled $1.247 billion in August 2024, 40 percent higher than in the same month of the previous year, according to Agraria.
This increase occurs in a complicated context for global trade in agriculture to the logistical difficulties on the routes that connect Southeast Asia with Europe and due to the various climatic complications in the main agricultural exporting countries.
Curiously, it was these difficulties that allowed coffee, avocado, and cocoa to find very favorable prices, and thus tip the balance towards positive results for Peru.
The most exported product by Peru in August was coffee, with 40,238 tons worth $302 million. This meant a 57 percent growth in volume and 195 percent in value compared to the same month in 2023. This increase was accompanied by an increase in price (+87 percent) which reached an average of $7.51 per kilogram. The good moment of Peruvian coffee responds to the decreasing expectations of Brazilian production and the fall in shipments of production from Vietnam, two large global suppliers.
In second place was blueberry, with a total of 22,100 tons worth $168 million, which meant a growth of 2 percent in volume, but with a fall of 1 percent in value. The country’s leading product didn’t have a positive result in the month prior to the start of the export peak (late September and October) because the price fell 3 percent, reaching an average of $7.60 per kilogram.
Avocado ranked third with 67,786 tons worth $149 million, representing a reduction of 21 percent in volume and 1 percent in value. The 25 percent increase in price almost offset the decrease in volume. A high cost ($2.20 per kilogram) in the last stage of the campaign was made possible by the reduction in the quality of Mexican avocados and the harsh weather conditions faced by domestic production in the US.
Cocoa surprised by sneaking into fourth place with 20,325 tons worth $127 million. The 74 percent growth in volume and 196 percent in value put cocoa among the leaders, something that is not common. The price shot up by more than 70 percent, being on average $6.26 per kilogram. The fall in cocoa production in West Africa and the shortage that this generated in the main markets of the world explained the rise in costs.
Finally, mandarin, with 56,012 tons worth $73 million, reached fifth place. Thanks to the boom in later varieties, an increase of almost 8 percent in volume and 13 percent in value was achieved. Regarding the price, this increased by 5 percent to reach an average of $1.30 per kilogram.
The main destination of Peruvian agricultural products in August was Europe, with almost 47 percent of the share. This prominence was due to the strong appreciation of coffee and cocoa, whose main destination is the U.S., with 31 percent of the share, but it is waiting for the takeoff of the blueberry campaign to gain more prominence; while China, with almost 4 percent of the share, is unlikely to gain more space until the grape campaign begins.
In the year-to-date, Peruvian agricultural exports total $6.65 billion, 26 percent above 2023. The price boost of some products and the gradual recovery in volumes promise a fairly positive year-end. The peaks of the blueberry and grape campaigns will mark the final result.
Peru’s agricultural exports reached $10.545 billion at the end of 2023, and they are projected to exceed $11.5 billion by the end of 2024, according to the Ministry of Agrarian Development and Irrigation (Midagri), as reported by Andina.
“Despite the unfavorable context, the excellent work of agricultural producers and exporters, joined by the (Peruvian) State, allowed for reversing this adversity and making possible for agricultural shipments in 2023 to exceed by 2.9 percent those reported a year earlier,” Midagri’s Agricultural Foreign Trade Specialist Cesar Romero told El Peruano Official Gazette.
The official highlighted that, over the last 23 years, Peruvian agricultural exports have grown at an average rate of 11.9 percent per year.
Romero said there are 20 products that account for 74.6 percent of total agricultural exports. Among these are grapes, blueberries, avocados, asparagus, mangos, citrus, coffee, cacao, bananas, artichokes, dried paprika, ginger (kion), and quinoa.
However, according to the figures managed by Midagri, there are three Peruvian ag products whose annual performance exceeds or nears $1billion: grapes, blueberries, and avocados.
Grapes currently lead Peru’s agro-exports ranking, as in 2023, 649,000 tons were exported worth $1.745 billion, 28 percent more than in 2022.
During 2023, Peruvian grapes were exported to 55 markets, most notably to the U.S. (47 percent of the total), the European Union (17 percent), and Asian countries (13 percent), mainly in Hong Kong and China.
Blueberries are the second largest Peruvian agro-export product, since by the end of 2023, shipments abroad totaled $1.676 billion, registering a 23 percent growth compared to the previous year.
Peruvian blueberries reach 44 foreign markets, with the U.S. taking 57 percent of the total, followed by the European Union (22 percent), and then there are other destinations such as China and Hong Kong.
Avocados are ranked third among Peru’s main agro-export products, considering that in 2023 shipments abroad totaled $963 million, 7.6 percent above the previous year, as they reached 599,000 tons in volume.
According to the National Agricultural Health Service (Senasa), Peruvian avocados are allowed to be exported to 73 markets around the world, with the European Union being the largest buyer, accounting for 51.8 percent of the total. In second place is the U.S. (13.9 percent); followed by Mexico, Chile, and Asian countries.