"It's been a challenging year. We've had volatile prices and logistics costs continue to be a determining factor. Profitability has been lower than in 2024, mainly due to an adjustment in global supply and persistent high transportation costs," stated José Luis Heredia, president of Progranada Peru.
Peru's pomegranate production peaked at 47,000 tons in 2022, dropping to 29,000 tons in 2024. A further 21% drop in exports is expected this season. "The harvest will start two or three weeks later than last year. But in the second half we expect a recovery, with 18% more fruit," Heredia stated.
However, this reduction in production also responds to a strategic market adjustment. An oversupply in recent years has led to market saturation and depressed prices. As a result, some growers have switched to more profitable crops such as grapes and blueberries. The decrease in production is now creating a more stable balance between supply and demand and preventing sharp price drops.
"Prices are ranging between $12 and $15 per box, but they could decrease as the harvest increases. The EU continues to be our main destination, absorbing 80% of Peruvian pomegranates, followed by the UK, Russia, Canada, and the US. However, the US poses a challenge due to mandatory irradiation requirements, which make the product more expensive and limit export capacity," Heredia stated.
One of the main challenges has been phytosanitary control. "Pests and diseases have increased production costs, as additional treatments are needed to meet the strict requirements of Europe and Asia. Cold treatment, which stores fruit at 5°C for 36 days, has already been approved and would open the door to the Chinese market once it is officially published," he stated.
In addition to China, this technique also offers opportunities for export to the US and new markets such as Taiwan, Thailand, and South Korea.
Freight costs continue to be a key factor. "High freight rates continue to be a considerable obstacle for exporters. The high volume of grape, mango, and blueberry shipments have increased freight rates from $2,500 to $5,000 per container, affecting competitiveness," Heredia stated.
The industry is looking for strategies to improve its competitiveness by 2026. "We must focus on differentiating our product, optimizing costs, and exploring new markets. Introducing new varieties, such as the Kingdom variety, which offers higher productivity and better color, will be key to achieving these goals. We are also working on strengthening financing for small-scale producers, who have replaced part of the supply of large companies that left the market," he added.
Decreasing production and having a market stabilization strategy have mitigated price falls and improved profitability. "The challenge is finding the balance between production, quality, and profitability in an increasingly demanding market," Heredia stressed.
For more information:
José Luis Heredia
Progranada Peru
Tel:+51 987 989 623
www.progranada.pe