Water shortages, increased competition and rising costs set to hit production and exports this year
Peru exported 39,689 tonnes of bananas worth US$34mn in the first quarter of 2025, representing a 12 per cent drop in volume and a 9 per cent drop in value compared to the year-earlier period.
The analysis, from FreshFruit Peru, shows that the average per-kilogram price increased slightly to US$0.87, 3 per cent more than in the same period last year, helping to partially offset the lower volume.
The consultancy said 2024 was a relatively positive year for the sector, which saw a moderate recovery in volume (8 per cent) and value (14 per cent) compared to 2023. However, the water shortage in Piura has reduced acreage in the Chira Valley, which could impact production for the rest of this year.
At the same time, the fragmented producer base in the north of the country, increased competition from other suppliers and rising production and logistics costs are compounding the challenges growers face.
Together with the 10 per cent import tariff announced by Trump – currently suspended for 90 days – the expectations for 2025 are not optimistic. The US is Peru’s second biggest market after the European Union, taking 8,137 tonnes of bananas worth almost US$8mn last year.
Analysts expect exports to fall by 2 and 7 per cent in 2025.
