Competitive Peruvian and Chilean avocado export profile

Abstract

In the last 10 years, Peru has increased planting areas and exports volume on 'Hass' avocado becoming an emerging important factor in the international market. In those conditions, it has started to compete with Chile, the second world avocado exporter. To estimate the competitive business export profile of these two countries, their importance in the international markets was analyzed using the market insertion matrix (MIM). The negotiation power of both countries was analyzed including providers and clients (importing countries), replacement threats, industry inside rivalry, and threat of newer competitors. The MIM allowed the evaluation of the dynamic of participation and the rate of growth of the exports values of the main exporting countries. Results have shown that for the 2009-2014 periods, Mexico and Chile are ahead in the competitive range determined for this purpose, followed by Peru and New Zealand. This indicates that these countries are the most competitive in the avocado export business. Peru has reached a high competitive position and presents important opportunities of export growth. This situation is mainly due to the increasing demand that avocado imports have presented and to the international trade liberalization by the FTA (Free Trade Agreements).