Peruvian Fruit and Vegetable Exports Set to Surge Until 2023

Fruits

Vegetables

Peru

Published May 23, 2022

Peruvian fruit and vegetable exports increased by 940% from 2003 to 2021, reaching USD 8.84B annually. Predictions indicate that Peruvian fruit and vegetable exports will increase further in 2022 to USD 10.49B and to USD 11.55B in 2023. After reaching a peak in 2023, exports are forecast to decrease due to high production costs and lack of investments due to political instability.

From 2003 to 2021, Peruvian fruit and vegetable exports have increased by 940%. According to the Association of Agricultural Producers Guilds of Peru (AGAP), Peruvian fruit and vegetable exports reached USD 8.84B in 2021. Predictions indicate that fruit and vegetable exports will reach USD 10.49B in 2022, representing an 18.67% YoY growth, and continue with a positive export trend until 2023, reaching USD 11.55B.

Source: AGAP

Predictions state that in 2023, Peru will lead exports of 9 products: blueberries, organic bananas, artichokes, ginger, asparagus, tangerines, grapes, avocado, and mango. These products have increased their exports over the past 20 years, improving their positioning in the global market. For example, in 2003, organic bananas ranked 68th, avocados ranked 8th, tangerines ranked 22nd, and grapes ranked 19th. Forecasts also indicate that Peruvian garlic, onion, and pomegranate will rank 5th in 2023.

Peru will open new export markets in 2022 and 2023. Grapes from Peru will be exported to new markets in South Africa, Chile, the Philippines, and Japan. Blueberries will be shipped to South Africa, South Korea, Japan, Vietnam, and Indonesia. Peruvian mangoes will open export markets to Argentina, Iran, Malaysia, Taiwan, Morocco, and South Africa. Peruvian asparagus producers will start exports to New Zealand and Israel, while ginger will be sent to Mexico and dragon fruit to China and the United States.

Despite increasing exports, Peruvian producers have not faced increased income. Peruvian fruit and vegetable producers have been facing challenges over the past years. Since the COVID-19 pandemic erupted, production costs have risen due to increased costs in labor, fertilizers, packing materials, and freight costs. Peruvian producers are improving their processes and technology to ensure a better production output. Technology implementation and automatization will reduce manual labor, reducing production costs. Fruit and vegetable exports are expected to reach a peak in 2023 at USD 11.55B and then drop due to the current lack of investment.

According to AGAP, political instability has also become a threat to Peruvian agriculture since it will affect the agricultural industry. Political instability prevents national investments in agriculture that help maintain and expand local crops. The last investments in agriculture were made in 2019 and 2020, before the imposition of the latest agricultural law, which will be crucial in aiding industry growth until 2023. AGAP and producers are worried that the lack of investment will negatively affect the industry and decrease national exports of fruits and vegetables. A lack of investment will make Peru loose its competitive advantage as other Latin American countries make investments in technology and resources for the agricultural sector to improve production and exports.