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virola exporters are worried over low prices
|Peru's virola exporters are worried because FOB
prices are so low. About 90% of the exported virola goes to Mexico but lately the FOB
price fell to US$ 300.00 per cubic metre compared to US$ 350.00 registered the last month
The reduction in prices is because many new exporters have entered the business according to local analysts. The new exporters are desperate to enter the international market and ate therefore, offering prices that are said to be almost at the level of their production cost.
Other factors affecting prices say analysts is the recent visit to Peru of many Mexican
importers who came looking for virola and have been buying huge volumes and, in some
cases, signing exclusivity agreements with Peruvian companies to lock up all their
production for the Mexican market.
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