Peru: "Our agricultural exports must double every five years"

24/02/2016

Peru's agricultural industry has enjoyed an 2015 year with very good results, and its growth expectations for the future are also positive. The Commission for the Promotion of Peru for Exports and Tourism, PROMPERÚ, analyzes the results.

According to figures from PROMPERÚ, all expectations have been exceeded. By mid-September, exports were expected to grow 7%, which finally reached 13%. Only in the fresh fruit and vegetables industry have they exceeded 2.000 billion dollars. Grapes, asparagus, avocados and mangoes are the most sold and exported products, as usual, although other products with less market share are added, as is the case of blueberries, with a growth of 217% with compared to the 2014-2015 season, as well as mangoes with 39% and organic bananas, with 2% growth.

The opening of several markets, especially in Asia, has led to this increase; for example, fresh mangoes to South Korea, avocados to Japan and China, blueberries to Canada and mangos to USA. UU Europe continues to be an important market.

"Our agricultural exports go in an 41% to Europe, an 40% to the United States and the rest, mainly to Asia, an 12%", explains Luis Torres, director of Promotion of Exports of PROMPERÚ. "In our strategy of penetration and positioning, we are prioritizing Asia. We have a network of very important trade agreements with China, Japan, Singapore, South Korea and Thailand. In addition, with the Trans-Pacific Economic Cooperation Agreement, new markets such as Vietnam, Brunei, Malaysia and New Zealand are added. We have a scheme of trade agreements that gives us preferential tariffs, in addition to a work agenda on health access ". He adds that Russia is a great market opportunity for Peru because of the European veto, and will take advantage of it in the most efficient way.

As for the United States, Peru already has a very good agreement, which has allowed the country to have a standard of commercial negotiation with which to negotiate future trade agreements with better conditions, as has been done with Europe.

"For us, Europe is fundamental in the export, since it is one of the most demanding markets worldwide, and that has given us prestige"says Torres, and talks about the emerging products in that market: blueberries and organic bananas. "They are in the penetration phase of the European market, with very encouraging expectations. We have a positioning in Europe, but this one asks us to move forward, to have a greater participation in the retail market through campaigns and strategies among Peruvian businessmen and European retailers, so that European consumers know better the nutritional possibilities and the health benefits they offer. our fresh products ". One example is the formation of the World Avocado Organization, chaired by Peru, which brings together the main avocado producers.

According to Torres, Peru has three very specific advantages over the competition: "The first one is the contraestation. Our neighbors have very marked dates of entry and exit from the market. For certain products, Peru enters a little before those dates and can also leave later. We offer some products almost all year round ".

"Our second strong point is variety. We are not extensive in products such as soy, rice, sugar, coffee or cocoa. We are very specific in certain product lines and we enrich them with the demands of the market. For example, the whole spectrum of organic and fair trade products that Europe wants, "he adds.

"Finally, the third great advantage that our country has is the commercial agreements". These allow that, for example, Europe usually prioritizes Peru against many other countries in the world.

Internally, Peru is also investing in logistics infrastructures to improve competitiveness, especially in port infrastructures.

Offering a low price is not everything, according to Torres: "Our commercial strategy goes through variety, specialty and quality. Our exporting entrepreneurs have learned to have a long-term vision. It is the most important thing. Whoever wants to take a market position based solely on price could be putting his investment at risk, because the market constantly changes prices, is exposed to crises, environmental changes, etc. ".

Peru is growing, both in value and in volume. "Our agricultural exports must double every five years", says Torres. For the moment, they are getting it. The crop area will also increase soon, with at least six irrigation projects along the coast of Peru in process, in addition to the sierra, where Andean grains are grown, and the jungle, where exotic fruits are grown.

"All this work is the result of a public-private partnership for the promotion of exports", concludes Torres.

Source: PromPerú