Peruvian avocado exports to the US expected to grow in 2023.

The US’ demand for avocados is reaching unprecedented levels, with US avocado imports reaching a staggering value of $3.27 billion in 2022. This burgeoning admiration for this nutrient-rich fruit has made the country the second biggest market for Peru’s avocado exporting industry.

Despite only ranking as the fourth largest producer of avocados in Latin America, Peru has been positioning itself as a reliable avocado exporter to the US, although quite far from the volumes sent by Mexico.

According to data from the United States Department of Agriculture (USDA), in 2022, 269.65 million pounds of avocados from Peru were shipped to the US, a volume 69% higher than the 186.35 million pounds shipped in 2021. And according to the Peruvian Association of Hass Avocado Producers, in 2023, Peru expects to increase this volume further by 13%.

This increase in avocado exports from Peru will allow the country to play a more critical role as a supplier of this product to the US. This will become more crucial in the coming years given that US avocado consumption could climb up to 70% and reach a value of $26.2 billion by 2028, compared with the $15.4 billion market value in 2022.

Peruvian Avocados: Penetrating the US Market

It is worth mentioning that Peru was positioned as the third-largest exporter of avocados in the world in 2021, according to the most recent data from the World Trade Organization. Meanwhile, in 2022, Peru was the second-largest supplier of avocados to the US, accounting for 8.1% of total US avocado imports.

This volume corresponds to a trend of increasing avocado consumption in the US, which is expected to continue until at least 2030.

Peru expects to have the ability to contribute more to this increasing demand: the Latin American country currently has about 60,000 hectares of Hass avocado production. Many avocado trees are still maturing in this area, so avocado production volumes could increase significantly in the next few years.

This total avocado acreage represents significant increases in the avocado-growing region of the high Andean areas in Peru. For example, in a four-year period, Ayacucho grew its avocado acreage by 288% to 2,296 hectares in 2022. Meanwhile, Huancavelica’s avocado acreage climbed by 429% in the same period to 1,793 hectares.

Drought Could Affect Peruvian Avocado Exports

Despite projected increases in Peruvian avocado production volumes and exports to the US, the Latin American country is facing threats of drought in 2023. The Andean region is forecasted to have fewer rain showers this year, which could impact about 30% of avocado imports. This could mean having smaller avocado sizes this year.

And due to the developments in Peru’s agriculture in the past decades, groundwater reserves have also been depleted because more water has been used than replenished.

Despite the impending weather situation, the Peruvian Association of Hass Avocado Producers remains positive that the season can still be saved and Peru can continue its expected avocado export volumes this year.

ProducePay’s Role in the Agricultural Sector

At ProducePay, we aim to provide a better produce trade for all stakeholders in the industry. ProducePay Marketplace is an online trading platform that allows growers and buyers to find each other to fulfill their selling and buying needs. Other Marketplace solutions include:

• Market insights, such as updated reports on price, movement, and more.
• Financing solutions that ensure easy and secure access to cash flow and ensure quick payouts.
• Sustainability programs to assist with meeting their ESG goals.
• Supply chain services that link sellers with pre-vetted third-party logistics partners to ensure a trusted delivery process.

During 2022 alone, we reached more than 700 customers in 10 countries and had nearly $4 billion in transactions through our online marketplace. Contact us to learn more about how ProducePay can help you improve your fresh produce business.

Sources:

Fresh Fruit Portal. Agronometrics in Charts: Peru’s 2023 Avocado campaign may be in jeopardy

Fresh Fruit Portal. Peruvian avocado industry forecasts 13% rise in exports

Fruit Net. Peru poised for big rise in avocado shipments

Opportimes. Top 10 Avocado Exporters in the World.

Produce Blue Book. Peru’s drought puts 30% of Hass avocados at risk

USDA. Data By Commodity.