Inflation and logistics crisis affect avocado exports of Peru
Fresh Avocado
Peru
Published Aug 19, 2022
Tridge summary
High inflation, with cost overruns and fertilizer price hikes, has had a direct impact on avocado exports. Juan Carlos Paredes, president of the Association of Hass Avocado Producers of Peru (Prohass) said: "Inflation in the prices of fertilizers, fuels, and other raw materials in the industry made our costs resoundingly more expensive." “The depreciation of the Peruvian currency in 2021 so far this year has reversed and we have appreciated 5% at the end of July, with which revenues are affected when converting them from the dollar to the sol. However, for companies with debt in dollars, it is somewhat beneficial, and I believe that this type of financing is the standard for the fruit industry." On how the logistics crisis has impacted the 2022 avocado season, Paredes pointed out: “Transportation costs have had a huge impact on the industry and also in the case of avocados.
Original content
This, in addition to the delays in some regions due to Covid-19 and the war in Ukraine, had a significant impact on the regularity of arrivals in our destination markets.” Regarding the Agrarian Promotion Law, approved in 2020 and which modified the agricultural scenario in Peru, Paredes commented: “The uncertainty that has existed in the political environment added to the changes in the law create a lot of noise and paralyze investments, in addition to many times without a technical increase in productivity we are forced to higher labor costs”. Campaign 2022: Projections and key data The 2022 Peruvian avocado campaign began in March, despite the fact that in January they started with very small volumes, according to Juan Carlos Paredes. "We estimate to finish the last week of September," he added. This season Prohass plans to export around 518,000 tons. “The departure time of world origins was different. This caused congestion in some windows where before the Peruvian avocado did ...
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes.
To learn more about our cookies, please read our Privacy Policy.