In 2023, Peru's fresh onion sector experienced significant challenges. Supply was chaotic worldwide due to climatic adversities in the main producing countries. Despite the shortages in international markets, quality standards remained firm. This is a challenge for Peruvian production, characterized by lower-caliber batches and quality issues. As a result, Peru exported 259,419 tons of fresh onions for US$104 million, i.e. 14% less volume and 2% less value than in the previous year. The average FOB price reached US$0.4 per kilogram, i.e. 13% more than in 2022 but insufficient to compensate for the drop in volume.
The container crisis in 2020, coupled with overproduction and increased freight costs, has led Peruvian producers to limit their investments in this crop. Ica leads production with 51% of the total, followed by La Libertad (23%), and Arequipa (13%).
The United States continued to be the main destination for Peruvian onions, although there were limitations to supply the US due to the lack of rainfall. Mexico and Canada also experienced difficulties, which -despite improving prices to US$0.48 per kilogram- led to a 24% reduction in the volume of shipments to the United States. Europe became the most attractive destination in 2023, with a 41% increase in export volumes and an average price of US$0.54 per kilogram. This increase was achieved thanks to the ban on Egyptian exports and the fall in production in Spain and Italy.
Shipments to Latin America decreased, affected by the redirection of products to Europe and Peru's limited supply. Shipments to Colombia, a historically important destination, decreased by 28% and achieved an average price of US$0.22 per kilogram, i.e. 1% less than in 2022.
Source: agraria.pe /Fresh Fruit