As part of the webinar “Peruvian Agroexports 2024”, organized by Fluctuante, space was provided to analyze the Peruvian avocado industry. During the session, the general manager of ProHass, Arturo Medina, was responsible for analyzing the figures.
He began by explaining the global outlook of Hass avocado production, where Mexico is the main player with a total of 243,000 hectares (ha); Peru is in second place with 77,000 ha, followed by Colombia with 39,000 ha, Chile with 27,000 ha, and California with 20,000 ha.
Based on this, Medina stated that the countries with which Peru shares the same commercial sales are Mexico, Colombia, the United States, Kenya, and Australia.
He added that in recent years, the sector has not seen significant growth in terms of cultivated hectares, but rather “has experienced small growths”. However, he specified that there is an increase in avocado growing in the Peruvian highlands.
Another point discussed aligns with the unique characteristics of the Peruvian avocado industry. There are 29,000 Hass avocado producers, with “the most complex and challenging issue being that 26,000 producers have less than 5 hectares, and 21,000 of them have less than 1 hectare”, he said.
Regarding production, Medina indicated that last year, Peru’s total production exceeded 500,000 tons. “However, we must consider that there are nearly 10,000 hectares that have not yet entered production. This means that production growth will continue to rise”, he explained.
He also added that there are 21,000 hectares that are six years old, so their production can continue to increase.
Peruvian Avocado Industry
In terms of production, the main production areas are La Libertad with 18,000 hectares, Lima and Ica with 13,000, and Lambayeque with 12,000.
According to Medina, there are other relevant areas such as Ancash, Ayacucho, and Huancavelica, “which have been growing gradually, but are important due to their nature and climate; they are the ones that begin harvesting first”.
He explained that in 2024, they exported 503,000 tons, with an average yield of 10 tons per hectare. Medina also mentioned that some companies project to reach 37 tons per hectare.
“Last year was a year of smaller sizes, with less fruit, but good returns, although very complex and difficult. I believe we are ready for this type of challenge and to move forward”, he stated.
Projection
The Peruvian avocado industry is not stopping in terms of cultivated hectares and production, which is why business projections are essential to create new strategies and maintain profitability.
From this perspective, Medina indicated that they made a projection for the next 5 years. “For this year, we estimate that we will have growth, surpassing 500,000 tons, with a 20% increase. I am honest, I think it will be much more”.
He was clear in stating: “Based on the projection, we believe that by 2030, we will reach one billion kilos”.
In that sense, he pointed out that “there is no need to worry”, but he recommended carefully considering what the industry will do with such an increased volume. He said: “We need to figure out what we are going to do with so much fruit.”
He was categorical in stating that the sector cannot forget that other countries also produce avocados, and that “the only way we can differentiate ourselves when we enter the market is in the quality. And quality starts with the dry matter”.
From 2011 to 2024, the cultivation volume in Peru grew by 619%.
Peruvian Avocado in the World
Considering that Peru is an important player in global avocado exports, Medina analyzed the destination markets. He mentioned that over the last three years, Europe has maintained its leadership in exports, with a 62% share, followed by the United States, which accounts for 13%. In the case of Latin America, he considers Chile to be a “tremendous market, and I always say it is our local market”.
He emphasized the specific situation of 2024, stating that “we had a -10% production compared to 2023, so we sent 11% less to the United States; to Chile we sent -8%, and shipments to China dropped by -28%.
The ProHass manager posed the following question: What happened? He answered the audience, explaining that prices in Europe were very good “and many people started sending less to Asia due to the distance”.
The industry is clear on the importance of the European market. Medina commented: “The consumption of Peruvian avocado in Europe is spectacular. They consider us the best, and prices drove the 2024 shipments; a lot more was shipped to Europe, and other destinations were neglected. I don’t think this year will be the same”.
He added that the peak of the Peruvian campaign is in June, July, and August. “During those months, 70% of Peru’s volume reaches Europe. That is when we need to do a better job, be more organized, and focus on having a good campaign because we are all looking for good returns”.
United States and Other Destinations
The main supplier of avocados to the United States is Mexico, which accounts for 80% of the volume that reaches the market, followed by the local maket with 12%, and Peru has a 5% share.
Given this context, Medina explained that “we are trying to gain more space; it is very challenging due to quality issues, but we are gradually progressing. We believe this year will be a very good year, with great fruit and excellent sizes”.
Analyzing Asia, he commented that 2024 was not the best year, “as shipments dropped by 29%, which was due to many people preferring to send their fruit to Europe, given the good prices”.
The decrease in shipments did not occur evenly throughout the year. Medina specified that at the beginning of the previous campaign, a lot of fruit was sent to Asia, “but unfortunately, there were exporters who didn’t pay attention to the dry matter, and fruit that arrived in China didn’t have the appropriate dry matter, so many importers ended up rejecting that fruit”.
Peruvian avocados also reach other parts of the world, including Japan, Thailand, and India, among others.
Medina also analyzed the Chilean market. He stated that “it is a really important market, it is our neighbor, and it has a big advantage, which is its high consumption. We fit perfectly with Chile when they are finishing their production campaign, and that is when Peruvian avocados come in”.
Currently, Peruvian avocados have access to 67 markets. “We hope to see how it goes this year with the Port of Chancay, which we expect will help reduce transit times by half to many of these destinations”.
Peru continues to work on gaining access to Taiwan, Vietnam, Philippines, Australia, and New Zealand.
Source: PortalFruticola.com
