Peru: Onion exports fall due to low margins

Published Oct 1, 2022

Tridge summary

Peru's onion exports have experienced a decline in 2022 due to a decrease in cultivation and high logistics costs, leading to a 11% reduction in volume and a 7% decrease in value. This has relegated the country to 14th place in the world for onion exports, just outside the Top 10. Despite a decrease in European imports due to high costs and reduced production, Peru has pivoted to focusing on Latin American markets, particularly Colombia, to mitigate the impact. The United States remains the primary destination for Peruvian onions, with a 65% share of total exports, followed by Colombia and Spain. The United States' demand for large and giant-sized onions has necessitated a shift in Peru's export strategy, targeting markets with lower quality requirements to ensure market access.

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

Original content

The onion is a common product, which is grown practically all over the planet. This reduces its commercial interest and it is usually a product with a very low price per kilogram. Even so, and given the extension of its cultivation in the country, it is a product that has been exported. In 2021, it ranked 14th among the products that Peru destined for foreign markets. In addition, the country was only one place away from entering the Top 10 of the world's main onion exporters. But this relatively favorable trend may be affected in 2022. According to reports from the Ministry of Agriculture (MIDAGRI), onion crops showed a reduction of more than 670 hectares due to the decision to replace them with more profitable crops. In addition, until August of this year, only 123,319 tons worth US$ 42 million have been shipped, that is, 11% less in volume and 7% less in value. The first fall in the last 6 years. The main reason for this phenomenon is the high logistics cost that has been ...

Source: Freshfruit.pe