Overview

Peruvian agricultural exports increased from $645 million in 2000 to an estimated $9.2 billion in 2021.  This outstanding performance is due to optimal weather conditions in the Peruvian coastal region, investment in state-of-the-art technology, and sound policies, including the Special Labor Regime for Agriculture regulation. As a result, Peru has quadrupled its production land devoted to high-value exports to almost 200,000 hectares.  The sector creates approximately four direct jobs in the field and one in the processing plants per hectare, which means Peru has created no less than one million formal jobs.  The legislation also created employment opportunities for women, who account for about 25% of the workforce. 

Agricultural companies’ labor requirements vary significantly throughout the year and from crop to crop due to seasonal agricultural production patterns.  The agricultural labor regulation allows temporary employment methods, which are prohibited under the general labor regime, to meet these requirements.  The agricultural labor regime also encourages formal employment in the agricultural sector, granting benefits to workers that otherwise would occur.

In late 2020, after a month of tension and civil unrest by agricultural labor groups, Peru’s Congress repealed and replaced the Special Labor Regime for the agricultural sector.  The newly adopted Agrarian Law established a 30% wage increase for workers, required agricultural enterprises to pay tax rates on par with other sectors of the economy, and introduced additional labor and tax-related changes.  The new law has arguably harmed the investment climate in the agricultural sector.  However, investment strategies have varied considerably depending on the types of crops produced and the specific companies involved. Although the changes incorporated in the new Agrarian Law will likely slow the overall investment rate, export agriculture will continue to attract investment in the short to medium term.  After the initial concerns from the private sector and major agricultural exporters, no concrete actions have taken place under the Second Agrarian reform, primarily due to the significant changes in Ministers of Agriculture. 

Production

Overview

Peru produces approximately 220,000 metric tons (M.T.) of unmilled soft wheat annually, used locally for traditional foods such as soups and purees.  All wheat is processed into flour for bread and pasta.  The U.S. market share in 2021 was 11%.  Other important suppliers are Argentina and Canada.  Wheat imports into Peru are duty-free.  However, an 18% value-added tax remains in place. 

*Total Market Size = (Total Local Production + Imports) – Exports  

Peruvian cotton textile and apparel exports are recovering from an economic setback due to competition from other countries such as Vietnam.  The value of exports reached $1.2 billion in 2021.  The United States - Peru Trade Promotion Agreement (PTPA) grants duty-free access to Peruvian textiles. 

Product Statistics & Data (PS&D) Code: Cotton (1000 MT)  

*Total Market Size = (Total Local Production + Imports) – Exports  

Peru imports corn from the United States and Argentina.  Corn is duty-free from all origins, but Peru does implement a price band system on corn.  However, due to the PTPA, Peru cannot assess the price band levy on U.S. corn.  Yellow corn in Peru is used mainly for poultry production.  At about 54 kilograms annually per capita, the consumption rate of poultry is one of the highest in the region.  Another good export prospect are distiller’s dried grains with solubles (DDGS). 

 Product Statistics & Data (PS&D) Code: Yellow Corn (1000 MT)  

*Total Market Size = (Total Local Production + Imports) – Exports  

Total whey imports grew 5% in 2021.  The United States is the second largest supplier of whey to Peru in terms of volume, and U.S. exports have recovered to pre-pandemic levels.  The whey market has continued a variable trend over the last three years, mainly driven by price.  Local sources report a similar sector performance throughout 2021 based on demand from the food processing industry and animal feed growth.

*Total Market Size = (Total Local Production + Imports) – Exports 

The food processing and food service industries are the leading destinations for cheese products.  The consolidation of franchises and new players in the market drove the growth of this category as U.S. exports to Peru increased 35% in 2021.  The United States remains the largest cheese supplier.

*Total Market Size = (Total Local Production + Imports) – Exports 

Peru’s beef and offal market rebounded in 2021.  Peru’s beef production is one of the lowest in South America, with an annual per person consumption rate of 8.3 Kg.  However, Peru’s stellar economic performance over the last 15 years has driven consumer preferences toward high-quality products.  The United States is the largest beef and offal supplier, accounting for 32% market share of total beef imports in terms of volume.

*Total Market Size = (Total Local Production + Imports) – Exports 

Dog food brands drive Peru’s pet food market.  However, cat food is growing in popularity with a 22% market share versus 76% for dog food and 2% for others (bird, fish, and small mammal/reptile).  Peru currently has 42 dog and cat food brands with 22 companies in the market.  Three companies hold approximately a 60% market share: Rinti SA, Nestlé SA, and Empresas Carozzi.  Bagged food (pellets) represents 95% of market sales, with the remaining 5% being canned/wet products.  Sales via delivery is an essential channel for premium, therapeutic, and wet products.

 

Product Statistics & Data (PS&D) Code: Pet Food (MT) 

*Total Market Size = (Total Local Production + Imports) – Exports 

Resources 

Asociación Peruana de Porcicultores (Pork Producers Association)  

Pomalca 351 Urb. Centro Comercial Monterrico, Surco Lima – 33, Perú 

Tel.: (511) 436-3729, 436-4168 

E-mail: info@asoporci.org.pe 

Guillermo Vidal, President; Ana Maria Trelles, General Manager 

 

Asociación Peruana de Avicultura (Poultry Producers Association) 

Av. Esmeralda 255 Chacarilla del Estanque, San Borja Lima – 33, Perú 

Tel.: (511) 372-1540 

E-mail: apacomunicationes@apa.org.pe 

Julio Favre, President; Mario Berrocal, General Manager

 

Asociación de Ganaderos Lecheros del Peru (AGALEP) (Dairy Producers Association) 

Mateo Pumacahua No. 877, Oficina 306 Jesus Maria Lima– 11, Peru 

Tel: (511) 423-4642 / (501) 431-0549 

E-mail: agalep@infonegocio.net.pe 

Nivia Vargas, President

 

Comité de Molinos de Trigo (Wheat Millers Committee) 

Los Laureles 365 San Isidro Lima – 27, Peru 

Tel.: (511) 616 4444, ext. 131 and (511) 442-2460 

E-mail: adaly@sni.org.pe 

Alejandro Daly, President 

 

U.S. Department of Agriculture/ Foreign Agricultural Service (FAS) 

(U.S. Embassy Lima, Peru) 

Unit 3230, Box 381 

DPO AA 34031 

Tel: (511) 618-2491, 434-3042 l Fax: (511) 434-3043 

Email: Aglima@fas.usda.gov 

Staff:

Wilder, Regional Agricultural Counselor 

Bryant, Regional Agricultural Attaché 

Nolte, Senior Agricultural Specialist 

Loza, Agricultural Marketing Specialist 

Camacho, Agricultural Marketing Assistant 

 

U.S. Department of Agriculture 

1400 Independence Avenue, S.W. - MS 1071 

Washington, D.C. 20250 

Western Hemisphere Area Director, Office of Foreign Service Operations 

Tel: (202) 720-3223; Fax: (202) 720-5183 

 

U.S. Department of Agriculture/ Foreign Agricultural Service 

Trade Assistance and Promotion Office 

Tel: (202) 720-3935