Peru - Country Commercial Guide
Agriculture Sectors

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2021-10-07

Overview

Peruvian agricultural exports increased from $645 million in 2000 to an estimated $7.8 billion in 2020. This outstanding performance was due to optimal weather conditions in the Peruvian coastal region and investment in state-of-the-art technology and sound policies. including the adoption of the Special Labor Regime for Agriculture in 2000. Peru quadrupled its productive land devoted for high valued exports to almost 200,000 hectares. Currently, approximately four direct jobs in the field and one in the processing plants are created per hectare, which means Peru has created no less than one million formal jobs through this initiative. The agricultural legislation also created employment opportunities for women, which account for about 25% of the formal work force.

Agricultural companies’ labor requirements vary greatly throughout the year and from crop to crop, due to seasonal agricultural production patterns. The agricultural labor regulation allows, through temporary employment methods, to meet these requirements which cannot be done under the general labor regime. The agricultural labor regime also encourages formal employment in the agricultural sector, granting benefits to the 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In late 2020, after a month of tension and civil unrest by agricultural labor groups, Peru’s Congress repealed and replaced the Special Labor Regime for the agricultural sector.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 increases for workers, requires agricultural enterprises to pay tax rates on-par with other sectors of the economy, and introduced other labor and tax related changes that have, arguably, had a negative impact on the investment climate in the Agricultural sector. However, depending on the types of crops produced, and the specific companies involved in the sector, investment strategies have varied considerably. Although the changes incorporated in the new Agrarian Law will likely slow the rate of overall investment, export agriculture will continue to attract investment in the short to medium term. 

Production

Peru produces approximately 220,000 metric tons (MT) of unmilled soft wheat annually, used locally for traditional foods such soups and purees. Most wheat is processed into flour for bread and pasta. The U.S. market share in 2020 was 14%. Other important suppliers of this commodity are Argentina and Canada. Wheat imports into Peru are duty-free regardless of supplier.  An 18% value-added tax remains in place. Another export with good prospects in Peru is dried distiller’s grain. 

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

 

2017 

2018 

2019

2020

Total Local Production

215

240

191

177 

Total Exports 

0

0

0

0 

Total Imports 

1,772

2,050

2,014

2,269 

Imports from the U.S. 

385

173

301

296 

Total Market Size *

1,987

2,290

2,205

2,446 

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

Peruvian cotton textile and apparel exports are undergoing a severe crisis due to competition from other countries, such as Vietnam. The value of these exports is expected to total$1.4 billion in 2021. The PTPA grants duty-free access to Peruvian textiles. 

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

 

2017

2018

2019

2020

Total Local Production

30

32

32

30 

Total Exports 

0

1

0

0 

Total Imports 

48

52

48

34 

Imports from the U.S. 

48

52

48

34 

Total Market Size *

79

84

80

64 

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

Peru imports corn from the United States and Argentina. Corn is duty free from all origins, and a price band does not apply to the United States. However, due to the PTPA, Peru cannot assess the price band levy within the U.S.’s tariff-rate-quota (TRQ) for U.S. corn. Yellow corn in Peru is used mainly for poultry production with one of the highest per capita consumption in the region at 54 kilograms.

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

 

2017 

2018 

2019

2020

Total Local Production 

1,300

1,210

1,552

1,560 

Total Exports 

0

0

0

0 

Total Imports 

3,040

3,520

3,966

3,798 

Imports from the U.S. 

2,857

3,311

1,179

711 

Total Market Size *

4,340

4,730

5,518

5,358 

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

Peru imports soybean meal primarily for poultry feed. Bolivia was the leading soybean meal exporter to Peru in 2020. Soybean meal from all origins enters Peru duty-free. 

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

 

2017

2018

2019

2020

Total Local Production

1

1

1

1 

Total Exports 

0

0

0

0 

Total Imports 

1,255

1,305

1,345

1,414 

Imports from the U.S. 

250

204

161

302 

Total Market Size *

1,256

1,306

1,346

1,415 

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

Total whey imports grew 21% with respect 2019. The United States is the third largest supplier of whey to Peru in terms of volume. The whey market continued a variable trend over the last three years because it is price driven. Local sources report similar performance of the sector throughout 2020 based on demand from the food processing industry and animal feed growth.

Product Statistics & Data (PS&D) Code: Whey (MT)

 

2017

2018

2019

2020

Total Local Production

0

0

0

0

Total Exports

0

0

0

0

Total Imports

9,894

9,729

9,030

10,935

Imports from the U.S.

2,612

1,973

1,651

1,521

Total Market Size*

9,894

9,729

9,030

10,935

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

The food processing and food service industries are main destinations for cheese products. The consolidation of franchises and new players in the market pushed growth in this category in the last years. Imports declined 9% in 2020 due to impact of the pandemic in the Hotel, Restaurant and Institutional (HRI) sector. The United States remains Peru’s largest cheese supplier.

Product Statistics & Data (PS&D) Code: Cheese (MT)

 

2017

2018

2019

2020

Total Local Production

28,694

29,795

31,980

32,700

Total Exports

285

321

531

439

Total Imports

6,228

7,101

8,235

7,512

Imports from the U.S.

2,704

2,839

3,065

2,263

Total Market Size*

34,637

36,575

39,684

39,773

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

Peru´s beef and offal market size slightly decreased in 2020. Peru´s beef production is one of the lowest in South America at 8.3 Kg per person annually. Peru’s stellar economic performance over the last 15 years has been instrumental in driving consumer preferences towards high-quality products. The United States is the largest beef and offal supplier to Peru, accounting for 30% market share of total beef imports. 

Product Statistics & Data (PS&D) Code: Beef and Offal (MT)

 

2017

2018

2019

2020

Total Local Production

228,658

233,459

238,970

230,218

Total Exports

10

14

33

10

Total Imports

22,518

22,720

25,343

28,391

Imports from the U.S.

6,494

6,355

6,620

8,560

Total Market Size*

251,166

256,171

264,280

258,599

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

Peru’s pet food market is mainly driven by dog food brands. However, cat food is growing in popularity with a 14% market share versus 85% of dog food. Peru has currently 41 brands of dog and cat food with 18 companies in the market. Three companies have more than 50 market share combined: Nestle SA, Rinti SA, and Molitalia. 95% consisted of bagged food (pellets) and 5% were canned/wet products. Sales via delivery is an important channel for premium, therapeutic, and wet products.

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

 

2017

2018

2019

2020

Total Local Production

43,270

46,550

49,743

50,520

Total Exports

2,767

2,372

1,938

1,868

Total Imports

23,026

25,457

25,396

25,531

Imports from the U.S.

4,775

5,212

5,616

5,168

Total Market Size *

63,529

69,635

73,201

74,183

*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.

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 , Lim– 11, Peru 

Tel: (511) 423-4642 / (501) 431-0549, E-mail: agalep@infonegocio.net.pe 

Hector Guevara, Manager 

 

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) 

https://www.fas.usda.gov/

(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: 

  • Dwight Wilder, Regional Agricultural Counselor 
  • Zeke Bryant, Regional Agricultural Attaché 
  • Gaspar Nolte, Senior Agricultural Specialist 
  • Alvaro Loza, Agricultural Marketing Specialist 
  • Miluska Camacho, Agricultural Marketing Assistant 

 

U.S. Department of Agriculture 

1400 Independence Avenue, S.W. - MS 1071 

Washington, D.C. 20250 

Vacant, 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