Peruvian agricultural exports are expected to grow 2,4% in 2020 despite the challenges posed by the coronavirus pandemic.

Introducing your new industry study, Fresh report , consulting firm FreshFruit said that agro-exports had become one of the main engines of the Peruvian economy, increasing 188% in the last decade from US $ 2.462bn in 2009 to US $ 7.112bn in 2019.

Peru's export basket has changed considerably over the last decade, with coffee and asparagus being replaced by fruits as the main engine of export growth. Last year, table grapes, blueberries and avocados accounted for 34% of total exports.

FreshFruit said the change was due to increased supply and demand and the favorable reception of Peruvian products in global markets.

In an act to present the new report, Alejandro Fuentes, president of the Association of Agricultural Producers Guilds of Peru (Agap), highlighted the enormous importance of the sector for the economy, which generates 4 million jobs and represents 57% of the rural economy.

Luis Corvera, CEO of FreshFruit, said more diversification was needed to strengthen the sector. Although Peru exports more than 100 agricultural products, only three of them accounted for 34% of shipments, while the first ten accounted for 64% of the country's export volume.

The same can be said at the varietal level: more than a third of the exports of each product category are concentrated in a single variety. In table grapes, Red Globe represents 43% of shipments, while in blueberries, Ventura and Biloxi represent 81% of exports.

Eduardo Chávarri, general director of Economic Promotion of the Ministry of Foreign Affairs, suggested a collaborative approach that integrates the sector with small and medium-sized companies that help diversify Peru's agro-export basket.

The report also highlights the need for greater diversification in Peru's export markets.

In 2009, Peru reached 121 markets with its agricultural exports, with the United States and the Netherlands having a combined share of 43%.

Ten years later, despite Peru now reaching 131 markets, the volume shipped to the United States and the Netherlands has risen to 57%.

Fresh fruit pointed out that shipping such high volumes to a limited number of destinations caused markets to were overstocked and pushed prices down.

He said the problem was most acute with blueberries, where 78% of exports last year went to the US and the Netherlands, causing prices to drop from US $ 8,40. US / kg in 2017 at US $ 6,61

"This problem could cause a drop in the export value of blueberries in the coming years, so it is necessary to start looking for new markets and opportunities to obtain better prices," he said. Fresh fruit .

"These falls especially hit the new producers, who invest with the expectation of prices that they will not obtain because they themselves contribute to flood the market."

The avocado suffered from similar problems. In 2018, the Peruvian oversupply caused a 14 percent drop in prices, affecting a large number of Peruvian companies.

"To continue expanding without affecting prices, it is necessary to continue modulating the harvests and looking for new markets that offer better prices and have a growing demand," he said. Fresh fruit .

Miguel Quevedo, national head of the Senasa phytosanitary authority, said that the institution is working to help overcome this challenge by preventing the entry of quarantine pests into the country and improving the access conditions of some products such as asparagus or pomegranate.

Likewise, he pointed out that in the coming months he hopes to specify the access of Peruvian products to countries in America, Asia and Oceania.

"Peruvian products have already proven to be competitive and of high quality, the next step is to continue growing without affecting their value," summarizes the report.

“To continue developing agro-exports, it will be necessary for companies to begin to specialize, using business intelligence to identify consumer preferences, tailor their offer and identify the best opportunities offered by different markets. Diversify products, varieties and destinations. Growth will not be easy ”.