Peru s fresh produce exports: new and better opportunities for sourcing

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2 Peru s fresh produce exports: new and better opportunities for sourcing Jaime Cardenas Director Trade and Investment Office Embassy of Peru in the UK

3 Competitive Advantage: Macroeconomic Stability

4 Competitive Advantage: Preferential Access to the World s Largest Markets

5 Comparative Advantage: Natural Conditions Agricultural Tradition: 10,000 years of history, one of the origins of agriculture and important centre for domestication of species Megadiverse Country: Different geographical zones (Humboldt current, cost, Andes, Amazon) create a variety of microclimates (72% of the world) and ecosystems (88% of the world). More than 184 domesticated plants provided to the world, many endemic to Peru and scarcely known outside the country Potatoes, squash, tomatoes, maca, yacon, chilies and peppers Quinoa, maize, and other Andean grains Peanuts, sacha Inchi and Brasilian nuts

6 Comparative Advantage: Strategic Geographic location Natural Greenhouse effect in the Peruvian Coast: Location in the tropics, effect of the Humboldt current and el Niño current -> No extreme temperatures or rainfall, long harvest season. Quality: Intense solar radiation (tropics) promotes photosynthesis, giving products better flavor and color (quality) Northern Hemisfere, 91.5% of global population. Seasonal opportunity window to supply most markets.

7 Competitive Advantage: High Average Yields Peru is among the countries with highest average productivity in many agricultural crops. Sugarcane (2nd), Asparagus, Olives (3rd), Artichokes (4th), Grapes (6th) and Avocado (11th). Asparrag us 11.0 t/ha Sugar cane /h Clementi nes 21.6 t/ha Paprika 5.7 t/ha Limes 11.5 t/ha

8 Agricultural Land in Peru Non Agricultural and Agricultura Land in Peru (ha) National Territory: 128,521,500 Pastures and Arable + Permanent Crop Land in Peru (ha) Agricultural Land: 38,742,465 ha [CATEGORY NAME] [VALUE] Agricultural land 38,742,465 [CATEGORY NAME] [VALUE] Pacific Coast 4,455,383 [CATEGORY NAME] [VALUE] [CATEGORY NAME] [VALUE] Arable + Permanent Crop Land 7,125,007 [CATEGORY NAME] [VALUE] [CATEGORY NAME] [VALUE] [CATEGORY NAME] [VALUE] 10% more Agricultural Land than in 11% of Arable + Permanent Crop Land not in use - Agricultural land refers to the share of land area that is arable, under permanent crops, and under permanent pastures. - Arable land includes land defined by the FAO as land under temporary crops (double-cropped areas are counted once), temporary meadows for mowing or for pasture, land under market or kitchen gardens, and land temporarily fallow. Land abandoned as a result of shifting cultivation is excluded. - Land under permanent crops is land cultivated with crops that occupy the land for long periods and need not be replanted after each harvest, such as cocoa, coffee, and rubber. - Permanent pasture is land used for five or more years for forage, including natural and cultivated crops.

9 Access to Irrigation Infrestructure Arable + Permanent Crop Land (7,125,007 ha) 4,545, ,579, % of Land under irrigation in the coastal area, where technified export oriented agricultura takes place. 30% of Agricultural land with acces to irrigation systems not in use (771,597 ha) 88% of Land irrigated by gravity, 7% drop irrigation, 5% sprinkling Land Under Irrigation Rainfed Agriculture

10 Agricultural Frontier Expansion: Irrigation Projects in the Coast

11 Export Oriented Agriculture Approximately 130,000 ha of land currently devoted to agricultural exports expected to more than triple as a result of large agricultural irrigation and expansion of existing projects More than US$ billion in exports of fresh and processed products to more than 150 countries Organic and Natural Products with high export potential. Important list of products and varieties not known in the markets Top Agricultural Export Products Product 2013 * 2014 * % Coffee % Grapes % Asparrag us % Avocado % Cocoa % Quinoa % Mango % Bananas % Artichoke % Source: Adex *FOB US$ Million Tangerin es %

12 Agricultural Exports (US$ FOB Millions) FRESH FRUIT AND VEGETABLES PROCESSED FRUITS AND VEGETABLES COFFEE 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 OTHER VEGETABLE PRODUCTS OTHER INDUSTRY FOOD PRODUCTS ANIMAL PRODUCTS (EXCL. FISH) ,1 25 1,2 62 1, ,9 % % 2, % Source: ADUANAS PERU

13 Exports of Fresh Fruits and Vegetables (US$ Million) , Forecasts US$ Millions 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, ,323 2,890 2, , % 1, % 31 1,525 % 861 1,125 % 1, , , Source: ADUANAS, AGAP

14 Peru Exports into the UK Total shipments this year are anticipated to grow at the same rate as 2014 when Peru s agricultural exports to the UK rose by 8.7% to US$199 million ( 132 million), up from US$183 million ( 122 million) in 60,000, ,000,000 40,000,000 30,000,000 20,000,000 10,000,

15 Availability Chart

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