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Peru’s Avocado Exports in 2024: Why a 12% Volume Drop Still Led to an 11% Value Increase

by Tatyana Ivanovich
September 21, 2024
in News, Vegetables
0
Peru’s Avocado Exports in 2024: Why a 12% Volume Drop Still Led to an 11% Value Increase

Peru has solidified its place as a major player in the global avocado market, but 2024 has brought some unexpected developments. From the 1st to the 33rd week of 2024, Peru exported 499,000 tons of avocados, representing a 12% decrease in volume compared to the same period in 2023. However, despite this decline, the value of these exports rose by 11%, reaching a remarkable $1.044 billion. This anomaly is largely attributed to a significant rise in avocado prices, which averaged $2.16 per kg, a 31% increase from the previous year, according to Agraria.pe.

Key Export Markets: Navigating Shifts in Demand

Peru’s avocados reached 35 international markets during the analyzed period. The Netherlands, Spain, the United States, Chile, and the United Kingdom were among the top destinations for these exports.

The Netherlands: As the largest importer of Peruvian avocados, the Netherlands purchased 160,000 tons, accounting for 32% of the total export volume. However, this represents a 12% decline from 2023 figures. Despite the volume drop, the value of exports to the Netherlands increased due to the rise in global avocado prices.

Spain: The second-largest market, Spain, imported 101,000 tons, which made up 20% of Peru’s total avocado exports. Like the Netherlands, Spain also saw a slight decline in volume, down by 3%. Yet, the increase in the price per kilogram boosted the overall value of avocado exports to the country, reinforcing its strong presence in the European market.

United States: Peru’s avocado exports to the U.S. also decreased, with 67,000 tons shipped, representing a 10% decline. Nevertheless, the U.S. remains a key trading partner, accounting for 13% of total avocado exports. The price surge helped offset the decline in volume, keeping the U.S. an essential market.

Chile: Closer to home, Chile absorbed 12% of Peru’s avocado exports. The South American nation continues to be a critical regional partner for Peru’s agricultural exports.

United Kingdom: One of the few markets to report a drop in both volume and value was the United Kingdom. The UK accounted for 7% of Peru’s avocado export volume, but its market conditions did not support the price increases seen elsewhere, leading to a decrease in the total value of exports.

The Role of Price in Sustaining Export Value

The 11% rise in export value, despite the 12% drop in quantity, was driven primarily by higher avocado prices. The global avocado market has seen increased demand, particularly in Europe and North America, where consumers are willing to pay more for this nutrient-rich fruit. Prices averaged $2.16 per kg in 2024, up from $1.65 per kg in 2023, representing a 31% increase. This price surge helped offset the reduced export volumes, enabling Peru to maintain and even grow the value of its avocado trade.

Challenges and Market Outlook

While Peru’s avocado industry has shown resilience, challenges remain. Reduced export volumes indicate potential production constraints, possibly linked to climatic factors, increased input costs, or shifts in global demand. However, the continued rise in avocado prices could sustain the industry’s profitability, even with lower yields.

The UK’s decline in both volume and value stands out as a rare exception in the broader trend of rising prices. This suggests that certain markets may have more limited tolerance for price increases, which could influence future export strategies.

Looking ahead, Peru’s avocado producers will need to balance production challenges with shifting global demand. Diversifying export markets and investing in efficient production techniques may help Peru maintain its strong position in the avocado industry.

Peru’s avocado exports in 2024 tell a complex story of shifting dynamics in global trade. While export volumes dropped by 12%, a significant increase in prices helped drive up the overall value by 11%. Key markets such as the Netherlands, Spain, and the United States played crucial roles in maintaining demand for Peruvian avocados, while the UK’s market challenges highlight the need for flexibility in export strategies. As the global appetite for avocados continues to grow, Peru remains well-positioned to adapt and thrive in this evolving market.

Tags: Agricultural Tradeavocado market trendsavocado productionExport Challengesglobal avocado pricesInternational AgriculturePeru Avocado Exports
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