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Peru Farm Exports at Risk from El Niño Weather

Bloomberg Markets •
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Peru's agricultural export industry faces potential disruption from El Niño weather patterns that could cut this year's farm shipment revenue to just over $15 billion, down from the $16 billion initially projected. Gabriel Amaro, head of agribusiness group AGAP, warned that heat and heavy rains could damage crops including avocados, citrus, pomegranates, and blueberries during harvest season.

Despite the weather threat, exports would still surpass the 2023 record of $14.5 billion. The industry has grown accustomed to double-digit annual growth rates, making Peru the world's top exporter of grapes and blueberries while becoming a major supplier of mangoes, asparagus, and avocados to the US, Europe, and China. This year's El Niño pattern caught exporters by surprise, but contingency plans including drainage systems are now being activated.

Crop diversification has made the sector less vulnerable than in past El Niño events. Blueberries, once concentrated in Peru's northern region, are now grown in southern and highland areas after heat devastated production by 25% during the 2017 event. The Peruvian state agency predicts weak to moderate El Niño intensity this year, with potential extreme events on the northern coast. Recent heavy rains have already caused 20% price jumps for local products like potatoes and onions.