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Peru: Grapes dominate ag exports as industry struggles with weather

March 05 , 2024

A report by Fluctuante, the largest export and import information system in the world, reported that Peruvian agriculture exports grew 2% year-on-year, despite the sector struggling in 2023 with harsh weather conditions and challenging political regulations. 

David Sandoval, general manager of Fluctuante, says the moderate growth came amid high temperatures caused by the El Niño phenomenon and problems with crop yields.

On a positive note, the industry saw a historic increase in job creation, rising 4.4%, Sandoval said. The growth was led by demand for labor in the processing and export of blueberries, avocados, grapes, and asparagus.

Looking into 2024, Gabriel Amaro, president of the Association of Agricultural Producers of Peru (AGAP) said, "The outlook for the agro-export sector is not so encouraging, since the year could close with figures similar to those of 2023, a year that, in itself, meant a considerable setback."

Unfavorable regulations

The president of AGAP says Peruvian exports are facing an even greater challenge, the new agricultural law 31110 that regulates worker rights. 

"This regulation does not encourage growth in agriculture, nor investment in the area and less-so promotes formality and the integration of small family farming into modern chains," Amaro said. "This situation is not only a risk for agro-exports but also harms all of our agriculture, whose expected growth could be greater if regulations were adopted to promote its activity and not, as is currently the case, to discourage it."  

In contrast to the reported rise in agriculture jobs, Amaro said the law also contributed to the loss of more than 100,000 formal jobs in agriculture in 2023. In 2022, he said 400,000 jobs in the industry were lost. The situation has hindered competitiveness, affecting profits and sustainability, he added.

AGAP reported that the agricultural yield declined by 2.9% last year. Mango production was the most affected with a 89.87% drop. Other declines were seen in table grapes with a drop of 11.98%, asparagus with 7.20%, and watermelon with 44%. 

Main export products

The main exported fruits were grapes, with a FOB value of $1.8 billion, an increase of 30% year-on-year, displacing blueberries, which occupied second place with an FOB value of $1.5 billion, a 6% increase.

In third place is avocado, with a total of $1.031 billion, a share of 10%, and a growth of 3%. This is followed by mango, with a total of $254 million, down 16% and representing a 3% share. Finally, bananas totaled $110 million, with a 1% share, a 6% drop.

Out of the total 654,000 tons of table grape exports in 2023, 49% of shipments were to the United States, followed by the Netherlands with 11% and Mexico with 7%.

Blueberries, the second most exported fruit, reached 207,595 tons. They were shipped mainly to three markets: the United States with 57%, the Netherlands with 22%, and China with 7% of the total share.

One of the products that caused the most concern in 2023 was mango, with exports dropping 16% in 2023. 

A total of 198,560 tons were exported, of which the United States received 30%, the Netherlands 30%, and Spain 11%.

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