Peru adding far less avocado hectarage this year following law reform

From Fresh Fruit Portal | 11 October 2022

Overview of avocados from Peru in the U.S. market, complemented by charts from Agronometrics. Original published on October 10, 2022. 

Peru’s multiyear growth in planted avocado hectarage will almost come to a halt this year following changes in the country’s agricultural laws, according to an industry body.

The Peruvian Association of Hass Avocado Producers (ProHass) confirmed to local media that the country will be planting almost no more hectares for growing. The development comes after changes in the agrarian promotion law and the elimination of tax incentives, according to Peruvian newspaper Gestion.

A recent forecast by ProHass estimates that 10,000 young hectares of Hass avocado will go into production in the 2022-23 season, adding to the more mature growing areas. With this, the entity expects production to rise for the season.

Juan Carlos Paredes Rosales, president of ProHass, said that avocados have not been exempt from the recent law reform.

“For example, avocado plant orders for nurseries have been practically nil this year. There are only 1 or 2 large avocado projects this year. There are no others,” he said.

Previously, between 4,000 and 5,000 hectares of avocado were planted yearly for production.

Consequently, many Peruvian and international producers are choosing to invest in other countries such as Colombia and Ecuador, he said.

Peru takes advantage of Mexican production problems

 Peruvian avocado shipments to the U.S. market have risen by about 30% year-on-year so far during 2022, amid production issues over recent months in Mexico.

“Mexico has supply problems, so Peruvian avocado has entered with more strength,” he said. Up to Sep. 10 of this year, 125,000 tons of Peruvian avocados have arrived in the U.S. and were sold above the price paid by the European market, he said.

avocado volumes by histo 21

Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

The News in Charts is a collection of stories from the industry complemented by charts from Agronometrics to help better tell their story.

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