Peru increased exports to China taking advantage of Chile's problems

The lack of water and climatic difficulties reduced the Chilean supply, which is why Peru managed to increase its blueberry and avocado exports to the Asian giant by more than 70%.

In 2021, food imports by China totaled US$43,945 million, 65% above the previous year and 104% more than in 2019. Of this total, it acquired US$443 million of Peruvian fruits, vegetables and grains , which meant an increase of 43% compared to the previous year and 44% more than the pre-pandemic period. Although significant, as it is a smaller development than the global one, Peru dropped one position in the ranking of China's suppliers in 2020 and fell three places compared to 2019. It remained the eighteenth most important supplier, with a 1% share (similar to the last year). In these two years, Peru was surpassed by Cambodia, Iran and Pakistan. It should be noted that among the main suppliers of food to China were the United States, with a 24% share, and Thailand, with 19%.

The most relevant Peruvian agricultural products were blueberries, grapes and avocados, which together had a 91% share. A poorly diversified basket that limits Peru's growth in this destination.

MORE PERUVIAN BLUEBERRIES IN THE FACE OF CHILE'S PROBLEMS

China imported 31,679 tons of blueberries for US$229 million, 26% more in volume and 24% more in value compared to the previous year. The acquisitions of berry Peru totaled 24,921 tons for US$ 181 million, which meant an increase in shipments of 71% in volume and 75% in value. With this result, Peru was consolidated as the main supplier of this fruit in the Asian market, with a 79% share (21 percentage points more than the previous year). The second place in the ranking was occupied by Chile, with 20% participation (22 percentage points less).

Regarding the price, it was US$ 7.22 per kilogram on average, 1% less than the previous year. In this market, the Peruvian blueberry was quoted at US$7.25 per kilogram on average, 2% more than in 2020. The best-priced fruit in China was the American one, with US$12.75 per kilogram (84% more). It is worth mentioning that the United States barely had a 0.1% share of the country's imports. For its part, the Chilean blueberry was quoted at US$ 7.12 per kilogram, 7% less than the previous year.

Peru was able to increase its supply without affecting prices, due to the fact that Chile reduced its blueberry production due to climatic problems. Having less volume of the fruit, the South American country chose to prioritize its shipments to the United States, leaving China unattended. To this factor was added the increase in demand, which was driven by the economic recovery.

The main buyers of Peruvian blueberries in China were Zhejiang Oheng Import & Export Co. Ltd., with a 28% share, and Shanghai Hui Zhan International Trade Co. Ltd., with 26%. As for Peruvian exporters, Agrovisión Perú SAC stood out, with a 32% share, and Camposol SA, with 20%.

THE INCREASED DOMESTIC PRODUCTION OF GRAPES REDUCED IMPORTS

In 2021, Chinese grape imports totaled 194,491 tons for US$534 million, 22% less in volume and 17% less in value compared to the previous year. Purchases of fruit of Peruvian origin reached 46,478 tons for US$ 139 million, which meant a drop of 14% in volume and 2% in value. With this result, Peru was consolidated as the third largest supplier of the fruit in the Asian market, with a 24% share (3 percentage points more than the previous year). The first place in the ranking was occupied by Chile, with 41% participation (3 percentage points less); followed by Australia, with 27% (1 percentage point more).

Regarding the price of grapes, this fruit was quoted at US$ 2.75 per kilogram on average, 7% more than the previous year. In the Asian market, the Peruvian grape was quoted at US$3.00 per kilogram, 13% more. The best valued fruit in China was the Australian one, with a price of US$ 3.11 per kilogram, 11% more. Regarding the Chilean grape, this had a cost of US$ 2.29 per kilogram, 2% less.

China is not only the fifth largest importer of grapes, it is also the leading producer of the fruit in the world, with a 19% share. In recent years, the Asian country has not only increased its production, which has allowed it to export and compete with other suppliers; rather, it is covering more of its domestic demand, leaving less room for imported fruit. This has been affecting the main grape suppliers, including Peru.

The main buyers of Peruvian grapes in China were Shanghai Hui Zhan International Trade Co. Ltd., with a 30% share, and Shenzhen Oheng Import & Export Co. Ltd., with 27%. Regarding exporting companies, Complex Agroindustrial Beta SA stood out, with 31% participation, and Corporación Agrícola SAC, with 9%.

A LOWER CHILEAN SUPPLY OF AVOCADO GAVE SPACE TO PERU

Avocado imports in China totaled 40,797 tons for US$ 106 million, 48% more in volume and 49% more in value compared to the previous year. In this market, purchases of Peruvian fruit totaled 26,874 tons for US$68 million, which meant a growth of 71% in volume and 81% in value. With this result, Peru once again positioned itself as the main avocado supplier in the Chinese market, with a 66% share (9 percentage points more than the previous year). The second place in the ranking was occupied by Mexico, with 19% participation (3 percentage points more); displacing Chile, with 10% (16 percentage points less).

The price of avocado in the Asian market was US$2.61 per kilogram on average, similar to the previous year. The Peruvian blueberry in China was priced at US$2.53 per kilogram, 6% more than in 2020. The best-priced fruit in the Asian country was the Chilean one, with a price of US$3.28 per kilogram, 7% more. While the Mexican avocado was quoted at US$2.52 per kilogram, 1% less.

As in the case of blueberries, Peru was able to increase its supply without affecting prices, because Chile has been dragging production problems due to water scarcity. Having less volume of the fruit, the South American country reduced its shipments worldwide.

The main buyers of Peruvian avocado in China were Camposol Foods Trading Shanghai Co., with a 25% share, and Shanghai Mr. Avocado Co. Ltd., with 15%. As for Peruvian exporters, Camposol SA stood out, with a 25% share, and Westfalia Fruit Perú SAC, with 17%.

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