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Peruvian Hass avocado production is expected to increase this season

Overview of the Peruvian avocado supply, complemented by charts from Agronometrics.

Original published in on February 09, 2021 

According to the director of the Association of Hass Avocado Producers of Peru (ProHass), Daniel Bustamante Canny, the new agrarian law will affect investments to establish new Hass avocado plantations. Bustamante said that 1,000 to 1,500 new hectares of avocados were installed in the country each year under the previous Agrarian Promotion Law (which was repealed by Congress in December 2020). However, he said, now there are very few companies investing. The companies that had investment plans have canceled them and the few hectares that will be completed are the ones where the companies can't reverse their investments.

Origins of avocados in the US Market
Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

"The companies have stopped investing. The only ones that will continue investing are the few that had already made some disbursements they haven't recovered yet and will have to move forward to recover them. However, there is no doubt this new law has hindered investments," he said.

In addition, the companies' capacity will be affected by logistical and labor issues (displacement of people) generated by the quarantine.

Hass avocado production increases

Bustamante said that they were finishing counting the fruit to make this season's first estimate, regarding the total volumes expected and the time when the fruit will be harvested.

"The first estimate should be ready in 10 days so the markets can know how much Peruvian avocado there will be," he said.

He also said they expected an increase in volume over the 2020 campaign when the country shipped 365,000 tons of Hass avocado.

Volumes (in Kg) of avocados from Perú in the US Market
Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

They expect this increase because the young plantations (2,3,4 years old) will produce more than last year due to their regular cycle.

The News in Charts is a collection of stories from the industry complemented by charts from Agronometrics to help better tell their story.

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