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Peru set to maintain avocado export level despite El Niño

According to SUNAT and the Peruvian Avocado Commission (PAC), last year 27% of Peru’s avocado exports went to the US and 65% to the EU. Exports to the US are expected to total about 45,000 tons this year.

Peru is set to produce about 180,000 tons of avocados for export this year, an amount roughly equal to last year,

According to a USDA GAIN report, this is despite the 2015-16 El Niño Southern Oscillation (ENSO) weather phenomena delaying the country’s avocado harvest.

However, while Peru’s avocado production in April – which along with May and June is when its production is at its heaviest  – was roughly equivalent to April last year, at about at 44,000 tons, it is about 17% down on 2014’s production of about 53,000 tons.

The report says that Peru’s Hass avocado producers’ association (PROHASS) attributes a bloom drop in the northern growing areas to El Niño-related warmer than normal temperatures, accompanied by higher humidity and rains.

At the same time, lower than normal temperatures accompanied by drier conditions brought the harvest in earlier than anticipated in the south-central growing areas.

According to GAIN sources, export control measures contributed to delaying the harvest by one month.

“Despite the lower production numbers, SUNAT (Peru’s customs and tax authority) reports 40% higher export volumes and a 50% increase in export values for the January-April 2016 period compared to 2015’s figures. This might be due to avocados grown for local consumption being shifted to the export channel,” the report says.

According to SUNAT and the Peruvian Avocado Commission (PAC), last year 27% of Peru’s avocado exports went to the US and 65% to the EU. Exports to the US are expected to total about 45,000 tons this year.

In August 2015, Peru won approval to ship Hass avocados to Japan and China and is this year expected to ship about 5,000 tons to these two markets.

Source: Peru: El Niño and Export Controls Delay Peru’s Avocado Harvest
Image: Hass avocado by sandid via Pixabay (CC0 Public Domain)

 

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Peru, Partner Country of Macfrut 2016

Being held September 14-16 in the Rimini Fiera, Macfrut will feature a focus on Peru, with show cooking and events to promote Peruvian fresh produce and its major fruit and vegetable producers, all organised in collaboration with Promperù.

Peru has been chosen as the partner country of the 2016 edition of Macfrut, the international trade fair for the fruit and vegetable sector.

Being held September 14-16 in the pavilions of Rimini Fiera, Macfrut will thus feature a focus on this South American market, with show cooking and events to promote fresh produce from Peru and its major fruit and vegetable producers, all organised in collaboration with Promperú.

In a press release, Macfruit organisers Cesena Fiera said that with a GDP growth rate of 6.1% over the last decade and 5.5% forecast for 2016-17, Peru is one of South America’s most dynamic countries.

Last year, Peru’s fruit and vegetable production exceeded 8 million tons. As well as a leading producer and exporter of artichokes and asparagus, it is one of the world’s top exporters of table grapes, organic bananas, avocados, small fruits, citrus fruit and mango.

Peru exports mainly to the US, Asia and Europe, in particular to the Netherlands, the UK and Spain.

“There is also a growing interest in the Italian market, in fact, over the last five years there has been an increase in trade by about 15% per year,” the release said.

Macfrut president Renzo Piraccini said Peru is one of the most interesting countries in the international fruit and vegetable industry.

“In the last few years, thanks to extremely favourable pedoclimatic conditions and substantial foreign investments, its production has grown considerably.

“We are therefore honoured that Peru, which last year was able to experience the relaunch of Macfrut, has accepted, this year, our invitation to be the trade fair’s partner country.

“Leading associations and major fruit and vegetable producers from Peru will be attending the event. This proves that there is a growing interest in the exhibition and Italy as a target market for Peru’s produce but also in importing packaging and innovative technologies, a field in which we are world leaders,” Piraccini said.

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Regular shipments to China of Peru’s Hass avocados

Since mid-June a large batch of Peruvian Hass avocados has entered China under the Disney brand, after the inauguration of the modern theme park in Shanghai.

China has shown significant growth in the consumption of avocados, with a 160% increase in consumption over the last two years. In 2015 avocado imports totaled 15,000 tons. Right now, Mexico is the main supplying country but, recently, also the Peruvian Hass avocados obtained the authorization to access the Chinese market at the end of the 2015 season, and regular shipments to that market have started in April of this year 2016. Peru will compete in this interesting market with four fundamental strengths: a good number of professional and experienced exporters, good product quality, excellent period of arrivals and tariff benefits under the free trade agreement with China.

So far during this season, Peru has already shipped the first group containers of Hass avocados to China. Shipments are supposed to continue until end July. Although the main markets are in the big cities, such as Shanghai, Guangzhou and Beijing, recently there has been a growing demand in inland cities like Hangzhou, Nanjing and Chongqing.

Camposol placing Peruvian avocados for Disney Shanghai

Since mid-June a large batch of Peruvian Hass avocados has entered China under the Disney brand, after the inauguration of the modern theme park in Shanghai. The Peruvian avocados are brought to the market thanks to Camposol and Intercorp. The sales of Peruvian avocados for Disney will be implemented through an authorised importer in Shanghai. The Disney Resort was opened in week 24 with high expectations. The avocados from Peru will be sold onsite in the theme park and in top high-end supermarkets, such as Super City, Ole and RT Mart. The Disney-branded avocados will also be available via specialist fresh fruit stores and online platforms. The Chinese market looks interesting for Hass avocados from Peru, because more and more consumers are seeking fruit and healthy products.

Camposol is the leading agro industrial company in Peru and the third largest employer of the country, with more than 13,000 workers in high season. Now, the company is the top producer of avocados and soon will be also the leading producer of blueberries in the world. Involved in the harvest, processing and marketing of high quality agricultural products such as avocados, asparagus, blueberries, grapes, mangos, peppers, artichokes, tangerines, which are exported to Europe, the US and Asia, Camposol is fully committed to promoting sustainable development through social responsibility policies and projects aimed at increasing value for all its stakeholders.

Photo: Camposol manager José Antonio Gómez

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ProHass launches a seal of guarantee for Peruvian Hass avocados

Emphasising their insistence on complying with the very highest quality requirements, this year they will have a seal of guarantee for importers, ensuring that the fruit they buy from Peru has at least 22.5-23% of dry matter

Following the World Avocado Congress in Lima, Peru, successfully organised by ProHass, the Peruvian Hass avocado industry is facing new challenges in 2016.

General director Arturo Medina explained that “we don’t know how the El Niño phenomenon is going to affect the fruit. Even so, this year we are hoping for growth of 15%, reaching about 185,000 tons.” This would establish it as the second Hass avocado exporter country in the world, behind only Mexico.

Europe will be the destination for 75%, while 20% goes to the US, and this year they will be present for the first time in Asia as of the beginning of the campaign. In this regard, Medina explained that “we are faced with a challenge as we know there is a demand for smaller sizes, but in Peru we produce bigger ones.”

Emphasising their insistence on complying with the very highest quality requirements, this year they will have a seal of guarantee for importers, ensuring that the fruit they buy from Peru has at least 22.5-23% of dry matter. Although the requirements to be met by the companies are established by the association, a private company has been hired to take charge of analysis, thus guaranteeing impartiality.

The ProHass members are the first to have taken up the initiative because they wish to set themselves apart from the rest, with the result that nearly 65% of the fruit exported will be under this quality seal. 

This article appeared on page 68 of issue 142 (March/April 2016) of Eurofresh Distribution magazine. Read that edition online here.

 

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Peru a world leader in organic banana exports

Peru ranks second globally with its exports of organic bananas reaching US $73 million in the first half of last year

Peruvian banana exports totalled US $120 million in 2014, up 35% on the previous year, according to the Commission for the Promotion of Peruvian Exports and Tourism, PROMPERU. And organic bananas now account for 53% of all organic exports from Peru. The country has become the world’s second biggest exporter of organic bananas, logging trade worth US $73 million in the first half of 2015. Its main markets were the Netherlands with 42%, the US with 27% and Germany with 16%, followed by Belgium, Japan, Finland, South Korea, the UK, Canada and Chile. Shipments throughout the first half of 2015 were up 28% on the same period in 2014. Total certified organic production in Peru in 2014 covered 486,600 ha, around 7% of the total agricultural surface area. The supply mainly consists of bananas (26% growth), the most traded product, and mango (91%). The most important market for these products was the EU, which took 53% of total organic exports – shipped mainly to Holland (25%), Germany (15%), Belgium (6%) and Italy (3%) – followed by the US with a 33% share, as well as Canada, Estonia and Australia, and Asian countries such as South Korea and Japan.

Organic supply growing in value

In recent years, the global trend towards consumption of safe and healthy products has grown stronger. In keeping with this, over January– July, exports of Peruvian organic products reached US $110 million, which meant 7% growth on the same period in 2014, reports Eduardo Amorrortu, CEO of Exporters’ Association ADEX. In 2014, organic banana exports from Peru achieved turnover up 50% on 2013. Amorrortu highlighted a notable change in consumer patterns. “Today there are consumers willing to pay an additional price for these items, which is reason enough to develop and encourage special differentiation strategies.” He also added that opening up and accessing new markets is a dynamic process, driving stakeholders to continually enhance their competitive edge.

NV

Peru flag map: CC BY-SA 2.5 via Wikimedia Commons

This article appeared on page 82 of edition 141, Jan/Feb 2016, of Eurofresh Distribution magazine. Read that issue online here.

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Peru’s booming grape exports

Attractive prices, numerous overseas market opportunities and a major ramp up in production are behind the major boost in  Peru’s grape exports.

Peru’s grape exports have skyrocketed in the past decade, going from practically non-existent in the year 2000 to about 280,000 tons last year, reports the USDA Global Agricultural Information Network (GAIN).

In a new report, GAIN says that grapes are now one of Peru’s main agricultural exports, totalling $646 million the 2014, up 43% on the previous year. They were also up 50% in volume to 267,270 tons.

It said this significant change has been driven by attractive prices and numerous overseas market opportunities, and a major boost in production as a result of new areas planted in Peru.

Peru’s main grape markets in 2014 were:

  • US 44,123 tons
  • Netherlands 41,908 tons
  • China 35,391 tons
  • Other important destinations: Hong Kong, Russia, the U.K.

Grape production in Peru

Grape production in Peru was estimated to reach 520,000 tons last year.

The central valleys along the coast (e.g., Ica, Lima) are where Peru’s grape growing is concentrated. However, new areas in the Piura and Lambayeque regions on the northern coast are rapidly developing. While the average grape yield in Peru was 20 tons/ha in 2014, yields in Piura were up to 34 tons/ha.

The country mostly grows Red Globe but other varieties include Crimson seedless, Flame seedless, Sugraone and Thompson seedless.

Climate challenges

Pests are one of the challenges Peru faces as it seeks to significantly increase its grape production. “Countries with colder climates do not struggle with pests such as nematodes, but due to Peru’s mild weather, this pest has become a problem,” the report says. However, in the northern region of Piura, warm temperatures permit up to two harvests per year, which helps offset the negative effects of pests. Also, Peruvian producers are working to develop more resistant varieties.

Another challenge for the industry is the potential impact of the forecasted severe El Niño. “The majority the growing areas are expected to face either flooding or droughts depending on their location. Without proper preventative measures by farmers and the government, the industry may experience losses in productivity which may take time to recuperate.”

Source: GAIN Report, Peru: Fresh Deciduous Fruit Annual (January 7, 2016)

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US to allow import of citrus from all parts of Peru

APHIS (the USDA Animal and Plant Health Inspection) has announced it s amending fruit and vegetable regulations to allow citrus fruit from any part of Peru to be imported into the continental United States, but with conditions.

APHIS (the USDA Animal and Plant Health Inspection) has announced it s amending fruit and vegetable regulations to allow citrus fruit from any part of Peru to be imported into the continental United States, but with conditions.

A fruit fly management program must be in place, including the use of bait spray applications, registration of places of production and citrus fruit shipments must be accompanied by a phytosanitary certificate, APHIS said in a recent bulletin.

Under current regulations, the importation of citrus fruit to the US is allowed from five approved citrus-producing zones in Peru, subject to a systems approach.

“However, based on the findings of a pest list and commodity import evaluation document, we have determined that this systems approach also mitigates the plant pest risk associated with citrus fruit produced in all other areas of Peru,” APHIS said. “This action will allow the importation of citrus fruit from the entire country of Peru while continuing to provide protection against the introduction of plant pests into the continental United States.”

This final rule will be effective 30 days after publication in the Federal Register and will be available as of today (Monday, September 14) at:
http://www.regulations.gov/#!docketDetail;D=APHIS-2015-0005

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Peru’s fruit and vegetable sector leads its non-traditional exports

Peruvian products have high-quality standards and are conquering new markets.

Peru produces fruit and vegetables of excellent quality throughout the year. With delicious taste, colour and aroma, they are strategically exported in off-season periods to the northern hemisphere.

The fresh fruit and vegetable industry is the most dynamic of the non-traditional export industries. Due to the nature of the market, it generates a whole chain of value in related services, including logistics, cold chain, certifications, and supplies amongst others; creating jobs and infrastructure.

Peruvian products also meet the quality and safety standards required by their customers. Companies are certified with international standards such as ISO, HACCP, TESCO and BRC. They also meet the strict standards of good agricultural practices (GLOBAL.G.A.P.) under the supervision of health authorities in the major markets. These efforts are in addition to the continued improvement of production processes and services by applying cutting-edge technology.

Meanwhile, the Ministry of Agriculture and the Ministry of Foreign Trade and Tourism of Peru recently announced the signing of the protocol for Hass avocado access to the Chinese market, which in the short term will mean additional exports of about 11,500-16,100 tons of this product. This would result in further revenues of US $30 million-50 million every year.

In 2014 about 199,000 tons of Hass avocados were exported and the growth rate was 40% per year, so the signing of this protocol represents a great opportunity for farmers.

Peru has become specialised in the cultivation of fruit and vegetables that are exported fresh and processed to niche markets demanding high quality. Hence, the training of human resources in tasks such as sorting and processing is continuously improving. Thanks to these advances, Peru is the world’s leading exporter of asparagus and paprika, and occupies the top spot in other premium products.

Finally, in the case of grapes, a very important market for this fruit has been found in the Chinese market, especially during the Lunar New Year period, currently taking 13% of Peruvian exports.

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European Commission should better protect EU banana growers, says Spanish MEP

Canary Islands politician Gabriel Mato wants the European Commission to act faster if banana imports from non-EU countries such as Peru and Colombia exceed agreed limits for a preferential customs duty.

Canary Islands politician Gabriel Mato wants the European Commission to act faster if banana imports from non-EU countries such as Peru and Colombia exceed agreed limits for a preferential customs duty.

Mato, a member of Spain’s ruling party Partido Popular, said the Commission should report to the European Parliament weekly – and not just at the end of the year – so timely action can be taken if limits are exceeded.

In a press release in Spanish, Mato said it had been noted in the Parliament’s Committee on International Trade that Peru had exceeded its limit in 2013 and 2014. He said that by the time this was reported at the end of the relevant year, it was too late to implement a safeguard clause suspending the preferential customs duty.

During a meeting of the committee in Brussels on May 6 he called for more to be done to protect EU growers. If asked, they would tell the Commission they are “in a permanent state of crisis,” he said. With the signing of an agreement with Ecuador on the horizon meaning the entry of even more bananas, action on the issue is all the more important, he said.

According to the Commission, in November 2014 it appeared that the imports into the EU of fresh bananas from Peru exceeded the relevant threshold.

However, it said, imports of fresh bananas from Peru represented only 1.9 % of the total imports of fresh bananas into the EU for January-September 2014. Also, imports of fresh bananas from other traditional importing countries, notably Colombia, Costa Rica and Panama, remained largely below the thresholds defined for them in comparable stabilisation mechanisms.

It also noted that:

  • the average wholesale banana price in the EU market in October 2014 (0.98 EUR/kg) did not register notable changes compared to banana price averages for the previous months;
  • that “there is neither an indication that the stability of the Union market has been disturbed by the imports of fresh bananas from Peru in excess of the defined annual trigger import volume, nor that this had any significant impact on the situation of Union producers” and
  • “there is no threat of serious deterioration or a serious deterioration for producers in the outermost regions of the Union.”

The Commission concluded that the suspension of preferential customs duty on imports of bananas originating in Peru would not be appropriate but said it would continue to closely monitor banana imports from Peru.
 

sources:

Gabriel Mato press release: Exigimos a la CE que proteja a los productores europeos de plátano e intervenga antes cuando la entrada de banano de terceros países supere los límites fijados

COMMISSION IMPLEMENTING DECISION of 17 December 2014 determining that the temporary suspension of the preferential customs duty established under the stabilisation mechanism for bananas of the Trade Agreement between the European Union and its Member States, of the one part, and Colombia and Peru, of the other part, is not appropriate for imports of bananas originating in Peru for the year 2014

 

 

 

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US proposes accepting citrus from throughout Peru

Citrus fruit from the entire country of Peru could be imported into the continental United States under a change proposed by the U.S. Department of Agriculture’s Animal and Plant Health Inspection Services (APHIS).

Citrus fruit from the entire country of Peru could be imported into the continental United States under a change proposed by the U.S. Department of Agriculture’s Animal and Plant Health Inspection Services (APHIS).

Citrus imports are already allowed to the US from five approved citrus-producing zones in Peru subject to a ‘systems approach’. APHIS has determined this approach also mitigates the plant pest risk associated with citrus fruit produced in all other areas of Peru.

Currently, the regulations allow the import of fresh grapefruit, lime, mandarin, orange, tangerine or hybrids, sweet orange, and tangelo from the five approved citrus-producing zones in Peru.

The proposed rule would allow the import of these fruits from the entire country of Peru into the continental United States – excluding Hawaii and the U.S. Territories – under the same conditions currently in place.

APHIS said the change is expected to increase the area in Peru approved to produce citrus for export to the United States to about 1,500 hectares over 3 years. “Additional volumes of citrus expected to be shipped to the United States are 5,000 metric tons (MT) in the first year that the rule is in effect, 6,500 MT in the second year, and 8,000 MT in the third year. These quantities are equivalent to less than 1 percent of annual U.S. citrus production or U.S. citrus imports,” it said.

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