Projected Slowdown in Peruvian Avocado Plantings and Its Implications

A recent report indicates that avocado plantings in Peru will slow over the next five years due to various challenges including profitability issues and increased competition. Despite this, it is predicted that new plantings will remain positive, urging improvements in productivity and adaptability to climate change.

The collaboration between the Hass Avocado Board and Cirad, an agricultural research institution, aims to provide a mid-term forecast of avocado production among major U.S. suppliers. This initiative assists investors, growers, and industry participants in anticipating marketing strategies. Initiated in 2019, the project examines avocado markets in key countries including Peru, Mexico, California, Chile, and Colombia, revisiting the sector to evaluate trends leading to 2030.

The report indicates that while avocado cultivation expanded steadily from 2019 to 2022, the growth rate of new plantings has significantly decreased since then. In 2024, the estimated avocado cultivation area is projected at 76,750 hectares, focusing on four main regions: Olmos, Chavimochic, Lima Valleys, and Sierra. Olmos and Chavimochic have experienced reduced planting rates, with Olmos affected by profitability issues, water scarcity, adverse weather, and disappointing yields, while Chavimochic struggles with land affordability and market saturation.

The Lima Valleys and Sierra regions are also developing but at a slower pace. The report outlines various socioeconomic, climatic, and political factors impacting the Peruvian avocado market over the past five years. Declining profitability due to rising costs, unsatisfactory yields, increased competition from the EU, market saturation, climate change, and political instability have all played a role. Nonetheless, while growth may decelerate, new plantings are expected to remain positive. The report suggests enhancing productivity through the adoption of updated rootstocks to mitigate climate change effects and improving technical practices.

The projected slowdown in Peruvian avocado plantings reflects various challenges including economic pressures, competition, and environmental concerns. However, there remains an opportunity for growth through improved agricultural practices and innovative approaches. By adapting to these changes, the avocado industry in Peru could sustain its relevance and productivity in the face of evolving market conditions.

Original Source: www.freshfruitportal.com