Peruvian blueberries oversupplied, average price down 11.9%

Peruvian blueberry exports in the first 10 months of 2022 have already exceeded the entire year of 2021, while Peruvian blueberries have become oversupplied on the global market, with average prices falling by 11.9%, according to blueberry industry website Blueberries Consulting.

The share of blueberry exports in Peru’s total agricultural exports increased from 0.7% in 2014 to 15.2% in 2021, making it the second largest foreign exchange earner in the country’s agricultural sector. Peruvian berry production has grown exponentially over the last decade. between 2016 and 2022, the blueberry industry grew at an average annual rate of 53.1%, a sustained upward trend that demonstrates Peru’s undisputed position as the world’s largest berry exporter.

The latest data released by the Central Reserve Bank of Peru (BCRP) in December 2022 shows that Peruvian blueberry exports reached 210,000 tons between January and October 2022. Blueberry exports in these 10 months alone already exceeded the total amount of blueberries exported from Peru to overseas markets in the whole of 2021 (207,000 tons), an increase of 36.4% year-on-year.

As of October 2022, Peru’s blueberry exports for the year were $1.112 billion, up 20.2% from the same period in 2021. The main export markets continue to be the United States (52.2%) and the Netherlands (22.3%), with the port of Rotterdam in the Netherlands serving as a gateway to the continent for Peruvian fruit.

The BCRP reported that the average price of Peruvian blueberries fell by 11.9% due to an oversupply on the world market. This news alarmed trade associations, but did not cause concern for all producers.

Blueberries Consulting now has China as the third largest export destination for Peruvian blueberries, according to data released by the Central Reserve Bank of Peru in December 2022, with prices for blueberry exports to China at $7/kg in 2019 and $6.3/kg in 2022, and exports to China growing from 8,000 tons to 18,000 tons. In the same period, the export price of Peruvian blueberries to the United States decreased from $7.1/kg to $5.2/kg and to the Netherlands from $6.9/kg to $4.9/kg.

Exports from La Libertad and Lambayeque, Peru’s main blueberry producing regions, increased by 40.3% and 45.5% respectively. Some companies decided to replace older varieties with newer blueberry varieties that have lower production costs and higher yields, and the resulting increase in production has led to an oversupply.

Although lower prices may affect the profitability of producers of lower-yielding varieties, producers who have switched to new varieties can offset the impact of lower prices by reducing production costs and by selling more product to foreign retailers.

Source: International Fruit and Vegetable Report

Post time: Feb-02-2023