Tariffs and the Peruvian avocado industry: how will they affect us?
Peru
In recent days we've experienced a real storm with the issues that are currently dominating the world. It's still unclear how this situation will develop, and I won't say it will end because it's still far from that, but we do have a clear idea of where things are headed.
The existing price difference based on the origin of avocados could help the Peruvian industry weather the storm better than other origins, as this price difference can be used to apply the 10% tariffs, if implemented, without the consumer feeling it unless supermarket buyers choose to pass it on to the producer/exporter.
Avocados from California, Mexico, and now Colombia always receive a price premium because they "ripen better" than Peruvian avocados. My opinion is that they use the Peruvian avocado's supposed poor ripening to lower average supermarket prices. That's just my opinion.
As a Peruvian industry, we've remained largely stagnant. In Europe, where transit times are almost twice as long, we don't face price penalties. Furthermore, we ripen the fruit in partnership with importers, delivering it to the market "ready to eat." Why haven't we done this in North America? I don't have an answer, or perhaps I don't want to give it, but I believe it's what needs to be done now to capitalize on the opportunity the American government is giving us to become a stronger supplier to the world's largest market.
Our Mexican friends will have a tough time in the next 4 years and we have to take advantage of this opportunity!!
To achieve this, we must be aligned as a Peruvian industry based on quality. ALL exporters must demand prices that reflect what the consumer pays, with a reasonable profit margin for all links in the chain.
Now is not the time to bow our heads as a united industry!
Alfredo Lira Chirif, Peru alfredo@agroleal.pro