35% surge in prices for Peruvian asparagus

Agronometrics Shorts: U.S. market witnessed a 35% surge in prices for Peruvian asparagus in 2023

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Agronometrics Shorts: U.S. market witnessed a 35% surge in prices for Peruvian asparagus in 2023

Peruvian asparagus has been mired in challenges this year. In March, cyclone Yaku hit northern Peru. Later, El Nino caused heavy rains which negatively affected asparagus production, harvest, and logistics in the north. Extreme precipitation caused approximately 40% or more of the fields to undergo “regrowth” and delayed the harvest.

A comprehensive report by Fresh Fruit Peru posited that the initial decline in Peruvian supply could be attributed to the disincentive induced by escalating freight rates, particularly in air freight, during the pandemic. This phenomenon significantly eroded profit margins. Furthermore, stringent fumigation requirements imposed by U.S. health authorities created formidable barriers for numerous producers seeking contracts with importers in this pivotal market. This regulatory imposition not only hindered market access but also inflated the overall cost structure, diminishing the allure of asparagus cultivation within the nation.

Compounding these challenges, new plantings stagnated as discerning producers, confronted with diminishing profitability, opted to replace asparagus crops with more lucrative alternatives. The trend gained momentum in 2022 when heightened production levels in Mexico and Europe led to a sharp decline in international asparagus prices. However, in 2023, both Mexico and Peru witnessed unusual weather patterns which meant that both suppliers did not have the capacity to flood the market and owing to this reason, prices remained high.

Consequently, the growth trajectory of Peruvian asparagus in 2023 did not manifest in increased volume (-19%) but rather in elevated prices (+35%). Initiatives are underway to create new entry points and extend market reach further north in the United States. As stakeholders navigate this dynamic landscape, strategic considerations and adaptability become paramount in harnessing the potential for growth in the Peruvian asparagus sector.


Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

 

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