ANALYSIS OF THE CHILEAN AVOCADO (PALTA) AGROINDUSTRY IN THE THE INTERNATIONAL MARKET

Abstract

The price of avocado (palta) in the Chilean domestic market has steadily increased in recent years, while Chile is one the world’s major producers and exporters of this fruit. The objective of this study was to evaluate the performance of the Chilean avocado agribusiness in the period 2008-2017. The
evaluation was carried out using quantitative trade indicators, such as the methodology of Revealed Comparative Advantages (RCA), the Import Penetration Rate (IPR), and the Constant Market Share (CMS) analysis. The analyses conducted show that there is a decrease in the competitiveness of the Chilean avocado in the U.S. market, explained by higher exports to other markets. On the othe hand, Chile has lost comparative advantages derived from a decrease in the domestic production of the fruit and an increase in the volumes exported, with a slight increase in the price but below the international average price. It can be concluded that the benefits to exporters such as the recovery of the VAT, the increase in the dollar exchange rate, along with the dynamics of world trade have increased exports of this fruit, causing an impact on the price of avocado in the local market.