Peru leads mandarin orange exports in South America but faces water and competitive challenges

Peru is the second-largest exporter of mandarins in the Southern Hemisphere, after South Africa, and seventh globally, according to Sergio del Castillo Valderrama, general manager of ProCitrus. In overall citrus exports, the country ranks 14th worldwide and 21st as a producer.

While South Africa dominates the market in terms of volume, Peru competes on quality but faces challenges such as increased costs following the repeal of the Agricultural Promotion Law No. 27360 in 2020, impacting its competitiveness. This led to a reduction in mandarin-growing areas in regions like Lima and Ica.

No new plantations have been established for the past three years, and current growth stems from the recovery of crops affected by the 2023 climate events. Without a new agricultural law incentivizing investment, production could stagnate by 2025. Despite a good year in 2024 in terms of volume and prices, the sector still hasn't generated surpluses for reinvestment.

Furthermore, the drought in Piura, the main lemon-producing region, poses risks, affecting fruit size and prices. Widespread water scarcity across the country could further complicate the situation in the coming years.

Source: agraria.pe; Photo: elplural.com