War affects Peruvian avocado shipments to Russia

Peru’s avocado shipments dropped last month, year-over-year, as the conflict in Ukraine disrupts commercial markets.

As a result of multiple efforts by exporting companies, the Peruvian avocado campaign has been extended in such a way that shipments can now be made throughout the year.

This is how, in the first two months of 2022, Peru exported 18,355 tons of avocados worth $41 million, reflecting a 1 percent increase in volume and 11 percent decrease in value compared to the previous year, according to Peruvian consultancy Fresh Fruit.

But export success is heading in the wrong direction.

In January, exports had shown a growth of 24 percent in volume and 14 percent in value. However, February was complicated because fruit shipments were affected by the conflict between Russia and Ukraine, which caused a contraction of 6 percent in volume and 19 percent in value.

In February 2021, Russia had positioned itself as the third most important destination for Peruvian avocados, with an 11 percent share.

This year, in the same month, avocado shipments only totaled 989 tons for $2 million, which meant a decrease of 49 percent in volume and 34 percent in value. With this result, Russia fell to fourth place, being surpassed by China.

Other markets that were affected by the armed conflict were Spain and the Netherlands. Peruvian avocado exports to Spain totaled 1,727 tons for $4 million, 28 percent less in volume and 40 percent less in value.

To the Netherlands, 5,397 tons of avocado were shipped for $11 million, a volume similar to that of the previous year (5,166 tons) and a value 17 percent lower.

In these markets, and in Europe in general, the increase in the prices of gas, oil and some foods, such as corn and wheat, are affecting the demand for avocados.