Factors affecting the exports of Hass avocado from Virú (La Libertad, Peru) to the US

Abstract

The knowledge and application of marketing strategies by small and medium producers of avocado for exports in the La Libertad region of Peru is limited. Therefore, this article analyzes the business opportunity of Hass avocado (Persea americana) for the US market and aims to highlight the relevant factors that facilitate achieving profitability for the producer, through a descriptive and non-experimental quantitative study. 29 avocado producers were surveyed in Virú province, in the La Libertad region, an important producing area in Peru to identify and describe value-generating activities for exportable avocados. Authors investigated ways to develop market opportunities through communication channels and marketing. The main findings pointed out that the avocado from this region, with yields greater than 10 tons per hectare, have good fruit quality and productivity in small and medium-sized areas. Indeed, they are the best in the country to produce Hass avocado managed for export, and from its organization they could have a better productive offer. However, the traditional production system, seasonal production (March-August), farms with less than 5 hectares per producer, little knowledge about customers, their choice, use and acquisition of the product, among other factors, remain part of the benefits. Marketing strategies that adapt to the styles of the US market are necessary for organizations to grow and increase their profitability. In this case, implementing surveys by producers of the proposed marketing plan to increase profitability by expanding placement capacity and developing the avocado production chain to improve supply to the market at more competitive prices are recommended actions (i.e., marketing planning and market expansion that adapts to the needs of the target market). A net present value of US$ 3.1 million has been projected, with an internal rate of return of 93%. Statistical verification of these results modeled the increase in exporters' profits through the implementation of marketing.