In this installment of the ‘Agronometrics In Charts’ series, Sarah Ilyas studies the state of the Peruvian avocado season. Each week the series looks at a different horticultural commodity, focusing on a specific origin or topic visualizing the market factors that are driving change.

Peru has emerged as a leading supplier of avocados, particularly the popular Hass variety, in the global market. Peru’s avocado production has significantly increased over the past few years, owing partly to the painstaking devotion of Peruvian growers.

40% of the area planted with Hass avocado in Peru is in the hands of small producers, which demonstrates the widespread involvement of local communities in the industry. According to the president of the Association of Producers and Exporters of Hass Avocado of Peru (ProHass), Juan Carlos Paredes Rosales, 94% of the 23,715 Hass avocado producers in the country, i.e. 22,189 producers, are small farmers who own 0 - 5 hectares of Hass avocado.

According to Paredes, the avocado crop would grow by 13% in 2023 thanks to the important contribution of the producers from the highlands.

Source: USDA Market News via Agronometrics.

(Agronometrics users can view this chart with live updates here)

In 2022, the most significant impediments that the Peruvian avocado industry faced were the emergence of production from Colombia, the advance of classic competitors, like Mexico, and the higher logistical costs to far off markets that promoted internal production in remote areas, such as Europe.

Prices are not expected to go up this season because the international markets expect the production of Latin American competitors to grow, thus keeping the stock high in the main markets. In the meanwhile, demand for avocados is on the rise in the United States, Peru expects to have the ability to contribute more to this increasing demand.

Approximately 60,000 hectares are presently devoted to Hass avocado cultivation. Since many avocado trees are still maturing in this region, avocado production could increase considerably in the coming years.

Source: USDA Market News via Agronometrics.

(Agronometrics users can view this chart with live updates here)

Despite the success of the Peruvian avocado industry, it still faces several challenges, such as fluctuations in weather conditions, market competition, and the need for improved infrastructure. Despite projected increases in Peruvian avocado production volumes and exports to the US, the country is facing threats of drought in 2023. The Andean region is projected to have fewer rain showers this year, which could impact about 30% of avocado imports and produce smaller fruit. 

Additionally, 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 hopeful. The increasing global demand for avocados presents numerous opportunities for growth and expansion. By investing in research and development, promoting sustainable farming practices, and fostering collaboration among growers, the Peruvian avocado industry is well-positioned to continue thriving in the global market.

In our ‘In Charts’ series, we work to tell some of the stories that are moving the industry. Feel free to take a look at the other articles by clicking here.

All pricing for domestic US produce represents the spot market at Shipping Point (i.e. packing house/climate controlled warehouse, etc.). For imported fruit, the pricing data represents the spot market at Port of Entry.

You can keep track of the markets daily through Agronometrics, a data visualization tool built to help the industry make sense of the huge amounts of data that professionals need to access to make informed decisions. If you found the information and the charts from this article useful, feel free to visit us at www.agronometrics.com where you can easily access these same graphs, or explore the other 21 commodities we currently track.