The avocado in Chile and its importance
Peru
When advising an avocado-producing agribusiness on the Iberian Peninsula, we emphasized the importance of maintaining a consistent supply to markets 365 days a year. This allows us to strengthen relationships with European supermarkets and deliver the quality and condition they demand.
To achieve this goal, it is essential to supply fruit during the harvest windows in Peru (April-August) and Chile (September-December). While the situation in Peru is well-known, the case of Chile presents a unique challenge. In addition to labor costs, production costs, and access to water-rich land, we must consider the competition from domestic demand for avocados and the prices paid in the local market.
The problem arises when the domestic price is higher than what we could obtain by exporting the fruit to our markets. In this case, we must make strategic decisions to maintain our business in the long term. It's not just about maximizing short-term profits, but about ensuring that our different origins have a market and that the business is sustainable.
It's worth noting that per capita avocado consumption in Chile is incredibly high, which challenges us to make some difficult decisions. We could choose to forgo short-term profits to maintain our market presence by cultivating in different areas. Another option is to transplant more avocados than we need in terms of land area, allowing us to supply the local market with sufficient volume and capitalize on this opportunity.
This is why exporting avocados from Chile is a challenge that requires a careful strategy. We must balance our short- and long-term objectives, considering the competition from domestic demand and the prices paid in the local market.
We will be sharing more information about our decisions in the future.
Alfredo Lira Chirif, Peru alfredo@agroleal.pro
