Agriculture
From The Report: Peru 2014
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Increased domestic consumption, exports and investment have led to consistent sector growth since 2004, averaging 4.2% per year in GDP terms from 2003-12. In 2012 the agriculture and livestock sector grew 5.1%, with agricultural activity comprising 60% of the sector’s total growth, though its contribution to GDP declined to 7.2% as the pace of growth in other sectors rose. In the first half of 2013 agricultural production expanded by another 1.9% year-on-year. Most key agricultural exports experienced growth, except for coffee, which fell by 7.3% due to a combination of adverse climatic conditions and a drop in global prices. In the short term, growing domestic demand alongside expansion of the amount of irrigated land and improved production techniques should help support output growth. In addition, upward movement of prices for export produce, the commercialisation of which is facilitated by a rising number of FTAs, bodes well for revenues.

Articles from this Chapter

Overview

The roots of success: A key economic driver and major employer, the sector looks set for continued growth
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Ever since the heyday of the Inca Empire, agriculture has played a central role in Peru’s economic structure. Home to the origins of irrigated farmland and more than 7000 domesticated species of fruits and vegetables, including several thousand types of potatoes, an innovative agricultural approach has brought regional and international fame. Close proximity to the equator, favourable climatic conditions, a rapidly expanding irrigated surface and investment incentives have allowed for diversification…

Analysis

Net losses: A reduction in fishing quotas is designed to help stabilise the local anchovy population
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Fishermen in Peru are facing choppy waters as supplies of anchovy, the industry’s prime catalyst, have fallen to one of the lowest levels in the last 20 years. In 2012 more than $2bn in export revenues – 66% of the sector total – was generated by anchovy-based fishmeal, oil and omega-3 supplements, commanding high prices on the international market. Producing around 40% of world supply, Peru is the leading global exporter of fishmeal. This is predominantly sold to China, where it is used for…

Analysis

Water works: Irrigation schemes are increasing the amount of land available for cultivation
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In a bid to anchor and expand the success of agro-exports along Peru’s coastal land, national and regional authorities have initiated work on a range of vast irrigation projects. However, while commercial farmers are eager to tap into the country’s thriving agro-exports business, auctions of irrigated land have elicited varying levels of interest in the recent past. Chavimochic One of the most promising projects is the third phase of the Chavimochic scheme, in the north-western region of La…

Interview

OBG talks to Milton von Hesse, Minister of Agriculture and Irrigation
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Interview:Milton von Hesse Most large-scale agricultural projects and investments have been focused on the coast. What about developments in the highlands and jungle? MILTON VON HESSE: There is still substantial potential for additional development along the coast. In fact, in the next two years there should be around an additional 150,000 ha that will be made available for agricultural projects due to large-scale irrigation projects currently under way. Thus, the coast will continue to see…

Analysis

Going with the grain: Quinoa exports are rising at a rapid pace
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There’s a new kid on the block in Peru’s increasingly diversified mix of lucrative export produce; rich in protein content, low in gluten and with options for application in everything from the food, pharmaceuticals and cosmetic industries, quinoa, locally known as the golden grain, is establishing a place at the top end of the international market. In 2013 the US Department of Agriculture reported that Peru’s global quinoa exports, at a value of just over $34.37m, had risen by more than 750%…