U.S.-bound shipments of Peruvian avocados should match 2015 volume

 

The United States will receive about 25 percent of the Hass avocados grown for export in Peru, with the remaining 300 million pounds destined for Europe and other markets, according to Xavier Equihua, president and chief executive officer of the Peruvian Avocado Commission, based in Washington, DC.

 

The 400 million total pounds produced in 2016 is expected to rise by 15-20 percent in 2017, as more trees mature and begin producing fruit, he said. And by 2021, total volume could approach 800 million pounds.

 

“The E.U. is the largest market for Avocados from Peru,” said Equihua. “We will ship about 260 million pounds there this year, or about 65 percent of the total exports. Asia is also becoming a big market. This marks the first year that Peruvian avocados will be shipped to Japan and China. In Japan, people love avocados and consumption is rising, because they are versatile and healthy. In China, avocados are now more of a novelty because people typically eat hot foods. But there potential is there for it to become a 2 billion-pound market.”

 

Enrique Camet, an avocado grower and the chairman of the PAC, said, “The main window for Peruvian fruit in the United States is June, July and August. Last year, our membership was very happy since Peruvian fruit was commanding a higher price than Mexican fruit for four or five weeks in July.”

 

Camet said the higher volume expected in the coming years is underlining the importance of opening new markets for Peruvian fruit.

 

“Avocado plantings in Peru have increased dramatically in the last 10 years, going from 5,000 hectares to 25,000 hectares,” said Camet. “But the most dramatic growth has occurred in the last five years, when plantings went from 10,000 hectares to 25,000 hectares. With the increased volume, we will need to open new markets, and we are currently working on Argentina, Mexico, India, the Middle East and others.”

 

Avocado grower Jimmy Bosworth, chairman of ProHass, which oversees Peruvian Hass avocado promotions and is funded by assessments paid by growers, said the season got off to a late start this year due to El Niño conditions, but he was not concerned about missing marketing opportunities.

 

“A mild winter with unusually high humidity and rain caused a bloom drop during the flowering season,” he said. “That caused a delay because we had to wait for dry matter to reach at least 23 percent before we could begin harvest. It also caused a variation in sizing of the fruit, with more small fruit in the north. But that was not such a bad thing, because importers want different sizes.”

 

ProHass was formed in 1999 and has grown steadily since that time, said Bosworth. In the first year, its members shipped 100 containers of fruit. In 2016, there are 70 members that account for 9,000 containers, representing about 60 percent of the Hass avocados grown in Peru.

 

Bosworth said the mission of ProHass is to organize members to ensure good quality product and to institute good controls to best supply the markets it serves. He said the group meets every week to review volumes and destinations.

 

“We urge our members to honor the commitments they have to supply all markets,” said Bosworth. “If our members only concentrate on getting the best price, their options will be more limited in the future when they are looking to move fruit.”

 

Peru is a relative newcomer to the U.S. market, with shipments starting just five years ago. But Bosworth is impressed at the progress that has been made in that short time.

 

Daniel Bustamante, a ProHass director, said, “It’s amazing what promotions have done to boost the profile of Peruvian fruit in the United States. It has set Peru apart from other sources. It is now the number two supplier to the U.S. behind only Mexico.”