Peruvian agricultural exports are expected to reach $9.7 billion this year, an increase of almost 10 percent when compared to last year, according Agraria, using data from the Association of Agricultural Produces Guilds of Peru (AGAP).
Gabriel Amaro, executive director of AGAP, said in the category of fruits and vegetables, exports will go from $4.97 billion last year to $5.4 billion this year. With grape and blueberry exports continuing to be at the top once again exceeding $1 billion, while avocados would miss the $1 billion mark this season.
“Weather conditions are positive, but the issue is the cost overruns. The freights are 4 to 5 times more; in labor, raising the minimum wage for a sector that paid bonuses for productivity does not make sense, among others,” Amaro said.
Avocados finished their season in August, and while last year $1.049 billion worth of the fruit was exported, it would not reach the $1 billion mark this year.
Amaro went on to say that “the price of avocado is very low in the world. It is trading in the world at less than $2 during this period. This has made it so many of the offers made cannot be sent. Prices go down [and] under normal conditions sometimes it can be absorbed, but now all the cost overruns and the Peruvian policy, which is not competitive, this is not possible.”
