“Peru avocado production 30% less in north but still better than 2023 campaign”

Overview of avocados from Peru in the U.S. market, complemented by charts from Agronometrics. Original published on January 22, 2024.

Peru’s 2024 avocado harvest has started with lower volumes as the industry continues to be affected by the adverse weather conditions created by the El Niño weather phenomenon. Despite this Manuel Canales, CEO and owner of the exporter Peru Mc Fruits, says there are signs of things going better than last season. “This year in Peru, we have observed 30% less production in the north, and 15% less in the south, however these results are much better than those of the 2023 campaign.”

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

As an exporter, together with their growers, Peru Mc Fruits had to plan the season very carefully says Canales. “For us, as for many, every campaign is always a challenge since it has to be organized meticulously to guarantee satisfactory arrivals at the destination. The volume with which the 2024 campaign begins was low since the dry matter was not the correct one the destination required. Last year there were several advanced shipments which did not comply with the adequate dry matter, which caused mishaps in the following businesses. For that reason we have started this week ensuring fruit of the highest quality.”

Canalis says in this year’s 2024 campaign they are starting with exports to Asian destinations. “The first destination market is China and Korea, however over the course of these weeks we will diversify to destinations such as Europe, the United States and Chile. Regarding prices, these vary per week since they depend a lot on the demand and supply of avocados, which is why we are working on a sales range by MGP and consignment.”

He says the El Niño conditions are continuing for a second year with a marked effect on the avocado trees. “The full load of Hass palm trees can vary depending on different factors. In general, avocado production is influenced by climatic conditions, the health of the trees and the agricultural practices implemented.”

These negative effects can be observed in the quality and sizing of the avocados too, explains Canales. There are more medium sized avocados with much less of the largest sizes. “The quality and size of our blades are of utmost importance to ensure customer satisfaction and meet international standards. We strive to maintain the high levels of quality at every stage, from cultivation to export. It is important to highlight that it is observed that calibers from 16 to 24 are the production that has the greatest volume, since the largest calibers from 12 to 14 are not as abundant as previous campaigns. In some sectors of Peru, the climate continues to experience rains that do not allow a good harvest to begin, affecting the post-harvest, since it is known that harvesting in rain produces oleocellosis (sometimes known as ‘oil spotting or burn’).”

This necessitates that Peruvian avocado producers and exporters adjust the pricing in order to survive this trend. “Regarding pricing, our strategy is based on a careful evaluation of international market prices to ensure that we are competitive while reflecting the value of the quality of our Hass avocados. We closely monitor price trends, considering factors such as supply and demand, competition and economic conditions, always respecting the meticulous work carried out in the production fields, taking care of the producer and valuing the work generated in each production campaign,” concludes Canales.

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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