Inflation and logistics crisis affect avocado exports of Peru

Published 2022년 8월 19일

Tridge summary

The Peruvian Association of Hass Avocado Producers (Prohass) is facing challenges in its 2022 export season due to inflation, currency depreciation, and logistical issues, including the impact of the Ukraine war and COVID-19. High costs and uncertainty from changes in law and labor are affecting productivity and investment. The season, which started in March, is expected to end in late September, with Prohass projecting exports of around 518,000 tons. The main markets are Europe (53%) and the United States (26%), with efforts to expand to other countries. Despite challenges, particularly in China, the US market is showing growth, with Prohass planning to export around 131,000 tons, a 53% increase from the previous campaign, backed by promotional campaigns totaling US$ 4 million.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

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. This, in addition to the delays in some regions due to Covid-19 and the war in Ukraine, had a significant ...

Source: PEagronoticias