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Peru’s Avocado Exports Drop 9% in July 2024, but Revenue Soars Due to Higher Prices

by Tatyana Ivanovich
September 17, 2024
in News, Vegetables
0
Peru’s Avocado Exports Drop 9% in July 2024, but Revenue Soars Due to Higher Prices

In July 2024, Peru, one of the world’s top avocado exporters, saw its avocado shipments decrease by 9% compared to the same month in 2023, totaling 114,182 tons. Despite this dip in volume, the value of avocado exports surged by 32%, reaching a total of USD 245.2 million, thanks to a sharp 45% rise in average prices, which climbed to USD 2.15 per kilogram.

Market Analysis by Region

The Netherlands remained Peru’s largest avocado export destination, absorbing 30% of the total shipments. Interestingly, while the quantity sent to the Dutch market increased by 12% to 32,410 tons, the real standout was the value of these exports, which skyrocketed by 48% to USD 73.4 million. This was driven by a significant 68% rise in price, with the average cost reaching USD 2.27 per kilogram in the Dutch market. The demand for high-quality Peruvian avocados continues to grow in the Netherlands, with retailers and consumers willing to pay a premium price for this popular fruit.

In contrast, the United States, the second-largest importer of Peruvian avocados (accounting for 22.5% of total exports), experienced a 21% drop in volume, with only 24,235 tons shipped in July 2024. However, the export value to the U.S. market rose by 4%, hitting USD 55.3 million, as prices rose by 32% to USD 2.28 per kilogram. Despite the decline in quantity, the strong demand and increased price indicate a solid market for premium Peruvian avocados in the U.S., particularly amid inflationary pressures and supply chain fluctuations in the agricultural sector.

Spain, the third largest market for Peruvian avocados, was unique in experiencing an increase in volume during this period. Shipments to Spain rose by 14%, totaling 23,909 tons, which contributed to a remarkable 77% increase in export value, reaching USD 51.5 million. This growth was driven by a 55% surge in prices, with the average price per kilogram jumping from USD 1.38 to USD 2.15. Spain’s growing appetite for avocados is noteworthy, and the country’s role in Europe’s avocado trade is likely to expand further as demand rises.

Factors Driving Price Increases

Several factors contributed to the sharp increase in avocado prices in 2024. Unfavorable weather conditions in major growing regions, coupled with logistical challenges in global supply chains, have constrained avocado availability. Additionally, rising production costs, including labor and transportation expenses, have forced exporters to increase prices to maintain profitability.

The demand for avocados, particularly in European and North American markets, remains robust due to the fruit’s rising popularity as a healthy and versatile ingredient. This steady demand, even in the face of higher prices, is a positive indicator for Peru’s export sector.

Peru’s avocado industry has demonstrated remarkable resilience in the face of declining export volumes, managing to offset losses through strategic pricing in key markets. The strong demand for avocados, especially in the Netherlands, the U.S., and Spain, highlights the importance of maintaining quality and reliability in export markets. Moving forward, Peruvian exporters will need to focus on improving production efficiencies and navigating global supply chain issues to remain competitive. The significant price increases in 2024 signal a shift in the market that could offer long-term benefits to Peruvian producers, provided they continue to meet the evolving demands of global consumers.

Tags: avocado market trendsavocado productionexport market analysisglobal avocado pricesNetherlands avocado importsPeru Avocado ExportsPeruvian AgricultureSpain avocado demandsupply chain challengesU.S. avocado trade
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