Until the 1990s, it was difficult to imagine that this area of ​​the Peruvian coastal desert, where at first glance one sees little more than dust and sea, could become a major center of agricultural production. But that is precisely what has happened along most of the Peruvian desert coast, where large plantations of non-traditional fruits such as asparagus, mangoes, blueberries, and avocados (or paltas, as they are called in Peru and Chile) have proliferated.

The vast strip of land that runs parallel to the Pacific Ocean and the Andean foothills has become an immense orchard and the epicenter of a thriving agricultural export industry. According to figures from Ministry of Agrarian Development and Irrigation of PeruPeruvian agricultural exports grew between 2010 and 2024 at an average annual rate of 11%, reaching a record figure of US$9.185 billion in 2024.

Peru has become in recent years the world's largest exporter of table grapes and of blueberriesThe fruit, which was barely produced in the country before 2008, and its ability to produce on a large scale in seasons when it is more difficult to do so in the Northern Hemisphere have led it to become one of the great agricultural exporting powers and a main supplier to the United States, Europe, China and other places

But what are the consequences? Who benefits? Is the Peruvian agricultural export boom sustainable?

Regions like Ica and northern Piura have become major centers of agricultural production. ¢ Sebastián Castañeda / Getty

How it all started

The process that would lead to the development of the Peruvian agro-export industry began in the 1990s, when the government of then-President Alberto Fujimori was promoting profound liberalizing reforms to revive a country hit by years of economic crisis and hyperinflation.

"The foundations were laid by reducing tariff barriers, promoting foreign investment in Peru, and lowering administrative costs for businesses; the aim was to boost sectors with export potential," he told BBC Mundo. César Huaroto, economist at the Peruvian University of Applied Sciences. "At first, attention was focused on the mining sector, but by the end of the century a business elite had emerged that saw the potential of the agricultural export sector."

But more favorable laws and good intentions were not enough. Large-scale agriculture in Peru had traditionally faced obstacles such as the low fertility of the Amazon rainforest soils and the rugged terrain of the Andean highlands.

Ana Sabogal, expert in plant ecology and anthropogenic changes in ecosystems of the Pontifical Catholic University of PeruHe explained to BBC Mundo that "private investment from large farmers, less risk-averse than small ones, facilitated technical innovations such as drip irrigation and the development of irrigation projects." Solving the problem of water scarcity in the desert made it possible to begin cultivating crops in an area where agriculture had not traditionally been considered, and to start exploiting its unique climatic conditions, which make it what experts describe as a "natural greenhouse."

"The area had no water, but with water it became very fertile land," Huaroto says.

All of this, combined with genetic innovations, such as the one that allowed the local cultivation of blueberries, enabled Peru to incorporate large areas of its coastal desert into its cultivable land, which expanded by around 30%, according to Sabogal's estimate.

"It was a surprising and enormous increase in the agribusiness sector," the expert summarizes. Today, regions like Ica or the northern Piura have become major centers of agricultural production, and agricultural exports are one of the driving forces of the Peruvian economy.

© Klebher Vásquez / Getty

What consequences has it had?

According to Association of Exporters ADEXAgricultural exports represented 4,6% of Peru's Gross Domestic Product (GDP) in 2024, compared to just 1,3% in 2020. The economic and environmental impact has been significant and ambivalent. Proponents emphasize the economic benefits, while critics point to the environmental costs, such as high water consumption in areas where water is scarce and the population's supply is not guaranteed.

Economist César Huaroto led a study to evaluate the agro-export boom on the Peruvian coast. "One of the things we found is that the agro-export industry acted as a driver of the local economy, increasing the level of quality employment in large areas where informality had previously prevailed, and registering an increase in average workers' incomes," he said.

However, this doesn't benefit everyone equally. "Small, independent farmers have a harder time finding workers because wages are higher, and they also have more difficulty accessing the water their fields need," he added.

Indeed, agro-exports appear to be pushing aside traditional farming practices and changing the social and land ownership structure in large areas of Peru. "Many small landowners see that their fields are no longer profitable, so they are selling them to large companies," says Huaroto. However, according to the same economist, "even many small farmers were satisfied because agribusiness had provided work for members of their families."

The agricultural export boom has driven up the cost of water and labor for small farmers. © Ernesto Benavides / Getty

The water problem

In recent years, the benefits of the agro-export business for the country have been increasingly questioned. But the main source of criticism is water. "In a context of water scarcity, where a significant portion of Peru's population lacks running water in their homes, the debate surrounding the agro-export industry has become very heated," Huaroto points out.

The local activist Rosario Huayanca He told BBC Mundo that "there's a dispute over water in Ica because there isn't enough for everyone." In this arid region, the issue of water has long been controversial. Since it hardly ever rains in Ica, much of the water is obtained underground.

While many human settlements have to make do with the water that arrives in tanker trucks and store it to meet their needs, large areas of crops destined for agro-export have guaranteed access to the water they need through wells on their farms and priority access to irrigation water that is transferred from the neighboring region of Huancavelica.

"Digging new wells is supposed to be prohibited, but when officials from the National Water Authority (ANA) "When they arrive to inspect the large exporters, they are denied access, claiming that it is private property," Huayanca denounces.

Critics point out that the agricultural export industry consumes a lot of water in a country where part of the population lacks access to it. © Martín Bernetti / Getty

In 2011, the National Water Authority established what it described as "a comprehensive monitoring and oversight process" for the use of the underground aquifer that supplies much of Ica's water, given the "imminent problem of groundwater overexploitation that is causing a continuous decline in the region's water table." But apparently, the problem persists, and local small farmers are encountering signs that the aquifer is being depleted. "Before, it was enough to dig five meters, but now you have to go down to 100 meters to find water," says Huayanca.

"Small farmers complain that they are required to pay large amounts for water, while large farms have reservoirs and large pools that they fill and whose water they then optimize with technified irrigation systems," says Huayanca.

This region cultivates the grapes used to produce the famous pisco, the brandy whose fame has become a source of national pride for Peruvians, but even that is now being questioned. "Some criticize that grapes are basically just sugar water, and if you export grapes and their derivatives, you're exporting water," Sabogal points out.

In Ica, the challenge is to make the thriving agro-export business sustainable while also protecting the environment and meeting the needs of the population. "Every time there are elections, this issue comes up, but solutions never materialize. We need to figure out how to make Ica's economy sustainable in the long term, because without water, the economy will collapse," Huayanca insists.

The challenge, in reality, affects all of Peru's agricultural export sector. "The current situation is not sustainable in the long term. It's great that there's an agricultural export industry because it generates income and foreign exchange, but only if the necessary amount of water is allocated for the population and ecosystems," Sabogal concludes.