ASSISTANCE FOR INVESTING IN PERU
Promoting international businesses with Peru is one of our goals. We promote the country, regions, sectors and investment opportunities in events at domestic and international level, as well as organizing study tours and visits to comprehensive contacts in the private and public sectors.
We provide services for the investment decision making process, such as market research, feasibility studies, legal and financial advice.
We support the implementation process with project design and management, assistance on paperwork and organization, legal and financial representation, general project management.
We may facilitate potential foreign investors to find business opportunities in Peru as well as local entreprenuers to research foreign markets for their products and or services.
INVESTING IN PERU
SECTORS:
ECOTOURISM
The eco-tourism industry, which is growing rapidly, has emerged as one of the most important sectors of the international tourism industry, making up 7 percent of the world tourism market (see figure). In the Asia-Pacific region alone, eco-tour operators report growth rates of 10 percent to 25 percent a year. Demand for quality eco-tourism destinations will continue to grow as urban congestion, pollution, crowding, and concern for the natural environment all increase.
More money. Many developing countries with established eco-tourism destinations have seen the number of eco-tourists, and the money they spend during their visits, dramatically increase over the last several years. In Costa Rica, the number of foreign tourists visiting national parks rose 330 percent in the six years between 1985 and 1991. Zimbabwe's international tourist arrivals, dominated by eco-tourists, have increased threefold, while receipts from tourism quadrupled between 1985 and 1994. Direct economic contributions from park entrance fees in developing countries have been conservatively estimated to be between $2 billion and $12 billion annually. When indirect expenditures on such items as hotel rooms, rental cars, and food are included, eco-tourists spend between $93 billion and $233 billion annually in developing countries.
Many developing countries, boasting large, intact tropical ecosystems, pristine beaches, and archeological ruins, are eager to carve out a niche in this multibillion-dollar industry. Countries are investing in eco-tourism as a means of attracting foreign capital to propel economic development.
Conservation consession
Is a contractual agreement between the government and an agency of civil society, perhaps a Non-governmental Organization (NGO), an enterprise, or a community. The government confers management responsibility for ecosystem and biodiversity conservation through a concession agreement with a non-governmental institution. As such, it is recognition that the task of ecosystem management and biodiversity conservation is not just the responsibility of the government, but of society as a whole.
By sharing this responsibility the government of Peru has created a mechanism that will facilitate new investment. Most importantly, conservation concessions are an instrument that will catalyze new ideas, leading to better management and discoveries for the development of Peru and human civilization.
At the heart of the conservation concession concept is the understanding that ecosystems harbor a diversity of values, and generate an array of ecosystems services. These services, in turn, can attract a diversity of investment and lead to sound management and sustainable productivity.
Peru is an attractive place for investing in the Tourism Sector, since it offers the following favorable conditions: Marked increase in the demand for tourist services in view of the ongoing increase of international tourist arrival. Great tourism sector potential to generate investments, aimed at creating new and varied tourist offer, given the abundant and varied tourist heritage of the country in cultural, historical and archaeological terms, as well as for its living cultures and gastronomy, besides the mega-diversity of the Peruvian territory that makes it possible to have adventure tourism and ecotourism. Dynamism in promoting Peru as a great tourist destination in the most important world tourist issuing market, an aspect that has been favoring the increase of international tourist arrival.
Active State initiative to support tourism sector development, implementing improvements in power, road, airport, port and telecommunication infrastructure in the different geographic regions of the country.
Legal and institutional framework providing a favorable treatment to tourist activities and measures to protect investments and access to property for both domestic and foreign investors.
Existence of a tourist promotion policy based upon sustainability principles, increasing participation of private investments, quality culture and development of tourist products agreeing with international tourist market trends. PENTUR—the National Tourism Strategic Plan for 2005-2015—has come into effect as the guidelines responsible for directing sustainable and competitive development of tourist activity in Peru, and which also identifies the needs for public and private investments in the short, mid and long terms.
Macroeconomic stability that places Peru among the economies with the greatest growth perspective and less country risk indexes.
The domestic labor market offers tourism sector abundant human resources.
Favorable prospects for tourism investments
Around 1 700 000 tourists are estimated to arrive in 2006, which accounts for an increase of more than 70% only in three years after having overcome the one million hurdle in 2003. The Ministry of Foreign Trade and Tourism (MINCETUR) foresees that tourist demand will substantially increase in the coming years, exceeding 3 million tourists in 2010. In case that result is achieved, tourist arrival will have more than tripled in seven years.
The greatest tourist attractions Peru is identified with worldwide are the citadel of Machu Picchu and Cusco, which ever more tourists want to visit. However, there is also a great potential to profit from throughout our country. Tourism sector development should not be solely based upon the many and varied areas with tourism potential, it should also transform these places into tourism products. Taking full advantage of a tourism resource means public and private investments to be able to achieve the excellent service solvent tourists require.
As for the economic impact of this sector in the Peruvian economy, tourism accounted for US$ 1 438 million in 2005 and contributed 5.9% to the GDP. Foreseen increase in foreign tourist arrivals, added to the development of domestic tourism, will have a great impact on employment, income distribution and accelerated development in many regions of the country.
Investment Opportunities
Tourist service demand projected growth will call for an increase and diversification of our offer and the necessary infrastructure. The development of road, energy and telecommunication infrastructure that the government is promoting will contribute to develop the sector in different geographic regions of the country which have an already identified tourist potential.
Besides the progress made by the State in preserving and enhancing our tourism heritage through public investment, a large number of private investment projects are required. They can be complementary to public efforts or, even, participate in infrastructure works required to consolidate new tourism circuits. In fact, there can be mutual reinforcement, as for example in the case of a public-private investment in a certain road that contributes to enhance some tourism resource, which makes it more interesting to then invest in hotel infrastructure, which in turn increases attraction to that tourist destination, therefore increasing tourist flow and hence passenger transportation, generating a more intense use of the infrastructure works. In seeking this kind of synergies, orderly progress of short, medium and long term projects is critical. Such projects have already been identified in the National Tourism Strategic Plan (PENTUR), led by MINCETUR.
Taking into account that destinations attracting most foreign tourist arrivals are mainly related to culture and nature, these will likely be tourism modalities to prioritize from the start. Hence the importance of driving private investment into several tourist concession services. There are important projects being promoted, which are related to archaeological sites, such as Kuélap in Amazonas, Huaca Rajada in Lambayeque, the citadel of Caral in Lima, and Baños del Inca in Cajamarca, among others.
FISHING AND AQUACULTURE
Peru is the second fisheries country in the world and the main fish oil and fishmeal producer.
There are several fishing resources to be profited from in the Peruvian sea, besides excellent conditions for aquaculture both in high upwelling marine zones and in continental areas free of pollution and with stable weathers along the year.
In 2005, Peru exported to 104 countries, out of which 80 acquired direct human consumption products and 62 bought fishmeal and fish oil.
Aquaculture activity is regulated by the Law Promoting Aquaculture Development, which grants income tax reductions, suspension of payment for “aquaculture fees”, facilitation of income recovery and personnel hiring, among other benefits.
Fishmeal availability, especially in the super prime quality due to its nutritional properties, position the country as an excellent space for aquaculture development, since this input is indispensable for preparing balanced food for species with a higher value in the international market.
Most Peruvian fisheries products enter free of duties to the European Union and the United States. At CAN and ALADI level, most preserved and frozen products have tariff preferences. Peru has been a member of APEC since 1998.
There are numerous alternatives to produce value out of products based upon fishing and aquaculture resources, be they for exports or for internal or regional consumption.
Exports are not taxed with the general sales tax (IGV) and can use incentives such as drawbacks (with the exception of fishmeal and fish oil), temporary admission and reposition of franchised merchandise.
Peru has 3 080 km of coasts and around 900 000 km of jurisdictional sea with very high volumes of marine species and other multiple resources.
90 % of the pelagic resources are used in the industrial production of fishmeal and oil. The other pelagic plus demersal, coastal, coastal fish and crustaceans, mollusks and cephalopods are aimed at consumption or export as fresh, frozen, preserved or salted products. Tilapia and surimi filets, “easy-opening” canned filets,, king crab and anchovies preserves, as well as value added products from giant squid, different pre-formed products, crab pulp, preserved tuna and mackerel, etc, have been added to the traditional supply, increasing exports.
Ornamental fish exports are another important option due to the variety of species, especially in the Amazon region, some of which are unique of Peru and due to the great expansion possibilities presented by this activity.
This rich diversity is attributed to the different marine environments made up by the conjunction of warm waters coming from Panama and the cold coastal waters of the Peruvian Current.
Fisheries is one of the main economic activities in Peru and generates around 10% of national exports. In 2005 Peruvian fisheries exports exceeded US$ 1.7 million dollars per year, mainly for fishmeal sales.
BIODIVERSITY
Peru is known as one of the world’s 10 “megadiverse” countries, for its rich diversity in ecosystems, species, genetic resources and culture. Peru’s biodiversity is one of the pillars of its national economy, plays a direct role in sustaining a large part of the population, has an important role for culture, science and technology and provides essential environmental services in terms of soil fertility, air quality and water supply. Peru hosts about 25,000 plant species (10% of the world total) with 30% endemism. Of these, 4,400 species have known properties and are used by the population. In terms of fauna, Peru is first in number of fish species (close to 2,000 species, 10% of the world total); second in bird fauna (1,736 species); third in amphibians (332 species); third in mammals (460 species); and fifth in reptiles (365 species). There are about 5,528 plant species and 760 animal species endemic to Peru. There are a total of 222 endangered species of which, 31 are facing extinction, 89 are classified as vulnerable, 22 are rare species and 80 have an indefinite status. Peru is also rich in ecosystem biodiversity with the major biomes being marine, mountain, forest, freshwater and agricultural ecosystems. Peru also has very high cultural diversity with 14 linguistic families, and 44 distinct ethnic groups, of which, 42 are found in the Amazon.
Biodiversity yields many sustainable development benefits such as food products, clean air, medicine and many more. Involvement in the proactive protection of biodiversity is a growing trend in many industries. This trend is making a positive contribution to the corporate image of many companies and organizations.
FORESTRY
Great tropical forest extension in the country only exceeded by Brazil in Latin America.
Numerous lumberable species with great international demand, including several with high quality and price. Different slopes and deforested areas excellent for developing forestry plantations.
Special legal regimes concerning concessions for sustainable management, as well as the benefits of agricultural activity in the forestry plantations. Increasing forestry and lumberable product exports.
Potential to export some US$ 3 billion per year of wood and by-products to a world market that exceeds US$ 100 billion. Quick response for the North American market as compared with Asian market producers.
Peru is a country with great conditions for forestry development, given its natural characteristics that place it as the ninth country with the greatest forest surface in the world, and the second in Latin America after Brazil. Our country is located in the Tropical South American sub-region, which concentrates the largest tropical rainforest in the world. Peru has 78.8 million hectares of natural forests and more than 8 million hectares of land favorable for reforestation, which accounts for 68% of the country’s territory.
The growth capacity of the country in the forestry sector is very high. The country is estimated to be able to reach annual exports for US$ 3 billion in wood and by-products to a world market with a demand exceeding US$ 100 billion, providing permanent jobs to more than 400,000 people.
Most forestry resources in Peru are located in the Amazon Forest, which weather is optimum for developing numerous species. According to INRENA’s estimation, total investment required by the exploitation of the 12 million hectares (ha) of production forests (offered in concession to private operators) would amount to US$ 4.6 billion, that is, US$ 383.8 per ha.
The creation of a Forestry Development Promotion Fund (FONDEBOSQUE) is also important. It aims mainly at supporting the efficient development of forestry concessions that exceed 7 million hectares to date, strengthening the private sector’s strategic vision, seeking investment alliances and opening to new markets, promoting forestry certification and, generally, fostering the development of forestry activities.
Main commercial forestry species in Iquitos, Pucallpa, Pto. Maldonado are:
Caoba (Swietenia macrophylla) Capirona (Calycophyllum spruceanum) Cachimbo (Cariniana decandra) Catahua (Hura crepitans) Cedro (Cedrela odorata) Copaiba (Coapifera officinalis) Cumala (Virola spp) Lagarto Caspi (Calophyllum brasiliense) Ishpingo (Amburana cearensis) Moena (Aniba spp) Pumaquiro (Aspidosperma macrocarpon) 1 Quinilla (Manilkara bidentata) Tornillo (Cedrelinga catenaeformis) Shihuahuaco (Dipteryx micrantha)
MINING
The Peruvian mining exports registered in 2006 an increase of 50% compared to 2005. The principal mineral exported was copper US$ 6 billion; second ranked gold with US$ 4 billion and third zinc with almost US$ 2 billion. Molybdenum exceeded US$ 800 million and placed fourth after lead, silver, tin and iron.
COPPER PRODUCTION IN EXPANSION
Between 2000 and 2006, copper production increased by 89%, exporting more than 95% of such production.
Antamina’s start of operations in 2001 and BHP Billiton Tintaya’s oxyde plant (2002), as well as the expansion of Toquepala’s concentrator (2002), owned by Southern, and restart of operations in BHP Billiton Tintaya’s sulphide plant (2003) have made it possible to reach this high production volume. In 2007, additional production of Cerro Verde resulting from the recent expansion of its production capacity of copper concentrates and the start of operations of Cerro Corona project (annual foreseen production of 30,000 tons) will add to that increase.
PERU: PRODUCTION WORLD LEADER
Peru is a country of old mining tradition, a tradition it keeps and cultivates thanks to the presence of leading international companies which during 2006 have placed Peru as the first gold, silver, zinc, lead, tin, and tellurium producer in Latin America and the second in copper, molybdenum and bismuth.
According to the U.S. Geological Survey, other metal products in which Peru has been having In outstanding position in global production were indium and selenium.
As for non metalic mining, Peru has a great potential for producing borates, diatomite, bentonite, phosphoric rock and travertine, among other products to be developed
Peru has detailed and easily accessible geologic information that has been developed by the Mining and Metallurgic Geological Institute INGEMMET and which has permitted the survey of an exhaustive geologic map of the Peruvian territory. This map is an X-ray picture of the country’s mining potential, which has been acknowledged by some of the most important mining companies in the world.
However, in spite of this geologic wealth, availability of information, facility for registering the mining claims at the National Mining Concession and Cadaster Institute INACC and the renewed interest for performing explorations in the country, larger extensions of territory are still without exploration.
Finally, an aditional advantage of becoming installed in a country with a great mining tradition is the facility of finding the necessary approach in the national market (through national or international suppliers) for developing the different mining stages and activities, as well as an industrial sector that demands ever more mineral inputs for its transformation.
PERU: FOREIGN INVESTMENT PRIVILEGED DESTINATION
There are currently first class foreign companies operating or with an important share in mining companies in Peru, such as BHP Billiton (Australia), Falconbridge (Canada), Teck-Cominco (Canada), Barrick Gold Corp (Canada), Newmont Gold (USA), Phelps Dodge Corp. (USA), Mexico Group (Mexico), Vale do Rio Doce (Brazil), Rio Tinto (England), Doe Run (USA), Shougang (China), among others.
PERU: WORLD SUPPLIER OF INCREASINGLY DEMANDED MINERAL
In 2006, mining exports reached US$ 14.8 billion, growing by 51% as compared to former years, thanks to a sustained increase of our production in the last years (silver, copper and iron, particularly) and to an increase of international metal prices.
TEXTILE AND FIBERS
In 2006, Peruvian textile and apparel exports exceeded 1.4 billion dollars, or 15.2% more than in 2005.
The Free Trade Agreement with the United States will provide tariff free access of Peruvian apparel to the United States, a benefit already granted to Peru by the Andean Trade Preferences and Drug Enforcement Agreement (ATPDEA). Only the US Congress ratification of the agreement is pending before the FTA comes into force as the Peruvian Congress has already ratified this agreement.
Peru also enjoys tariff free benefits for its exports to the European Union and several Latin American countries, and is a member of the Asia Pacific Economic Council, APEC.
Peru specializes in full package orders and rush deliveries, including a number of complementary services for international buyers. Outstanding quality raw material is available locally, in particular extra long fiber Pima cotton and fine alpaca furs.
Workers are highly skilled while monthly salaries range from US$ 160 to US$ 300.
Air and maritime transportation services are noted for their efficiency.
Tax schemes promote exports.
PERUMODA, the international fashion show takes place in Lima every year at the end of April.
Peru is conveniently near the United States, and in the same time zone as Miami and New York.
Peru’s fine textile tradition dates back to pre-Inca times. Today it still relies on the high quality of the raw materials available, like alpaca fibers and Pima cotton. Techniques and designs for the production of textiles and garments have evolved continuously to make these two fine Peruvian products among the most highly quoted of their type worldwide.
Peru’s textile development has been made possible by careful growing of outstanding quality natural fibers like Peruvian Pima cotton (of extra long fibers) and Tangüis long fiber cotton.
Peru is the world’s largest producer of some of the finest South American camels’ fibers, most remarkably alpaca and vicuña, the latter of which produces a fleece even finer that cashmere.
The quality of Peru’s garment-making is also evident and a result of constant efforts by the industry to stay at the forefront of technological improvements, but also of the skills and seriousness of Peruvian textile workers.
Peru has earned itself international recognition as a reliable supplier of textiles and apparel, and home of a well-developed textile industry that ranges from the growing of indisputable quality cotton and breeding and shearing of vicuñas and alpacas, through yarn making, weaving, dying and finishing of inputs, to garment making, and the ability to serve timely and quickly full package orders from leading brands worldwide.
Pima Cotton
Pima cotton is characterized by its long, fine and smooth fibers that are carefully hand-picked and chosen to ensure the product's quality.
Pima cotton yarns are made with typical smoothness, uniformity and resistance characteristics that make it ideal for fine garment making, including shirts, dresses and neck ties.
Tangüis Cotton
Tangüis is among the finest long fiber varieties, and it can both either intensely bleached or color dyed.
More recently, rough cotton farming has expanded also in the Amazon area (in particular in San Martin and Ucayali departments). Additionally, thanks to its extra long fiber the Hazera hybrid variety is becoming a major player in the cotton industry, particularly in Lambayeque department. All these are varieties with great growth potential thanks to their high yields per hectare.
AGROBUSINESS
Agricultural exports have had a very dynamic upward trend in the past 5 years, going from US$ 643 million in 2000 to US$1.786 million in 2006, which meant an average annual growth rate of 18.6%. This relevant increase was achieved thanks to the development of highly diversified supply of Peruvian agriculture. Therefore, differently from former years in which just a few products exceeded US$ 10 million in exports, there were 20 products in 2006 which exports were above said amount.
The list is led by coffee (US$ 517 million) and asparagus (US$ 318 million, including fresh, preserved and frozen), followed by paprika (US$ 73 million), artichoke (US$ 66 million, including preserved and fresh), mango (US$ 59 million, including fresh, preserved and juice), piquillo pepper (US$ 50 million), grapes (US$ 48 million),sugar (US$ 43 million), avocado (US$ 38million), banana (US$ 27 million), onions (US$ 16 million), frijol (US$ 27 million), cocoa (US$ 15 million), mandarins (US$ 15 millons), nuts (US$ 12 millons) and olives (US$ 11 million).
Given the current agro-exporting drive, there is no doubt that the list will substantially increase in the following years.
In 2006, agricultural exports accounted for 7.5% of Peruvian exports (US$ 23.750).
Seasonality
The weather and edaphology diversity in Peru, not reaching extreme temperatures in different seasons as in other countries, is optimum for agricultural activity. This permits to have a very varied product supply in a good number of cases and also uniformed amounts in our supply along the year, because production can be complemented in some different areas in the country’s territory.
Trend of horticultural market
Peruvian horticultural exports are a great part of the non-traditional exports in the agricultural sector, which are those that are now defining the strong growth of agro-exporting. The future of these products is very promising given the world trend to healthy food consumption, such as vegetable consumption and, moreover, fresh and organic ones, which are preferred over other kinds of food products.
In the Peruvian case, the exported value of our horticultural exports, which in 2006 reached US$ 1 211 million, significantly grew between 2000 and 2006, to an annual average of 20.6%. The main horticultural export product is fresh asparagus (15.4% and 8.6% of exported value in 2005), followed among others by paprika (6.0%), artichoke (5.5%), mango (4.9%), preserved piquillo pepper (4.6%), preserved asparagus (4.1%), fresh grapes (4.0%), avocado (3,1%), bananas (2,2%), frozen asparagus (2,2%), frijol (1.3%) and onions (1.3%).
Weather conditions
Peruvian climate and geographic location, concerning main markets in the world, are two key aspects in for Peruvian agriculture competitiveness in the international context. Out of the 108 types of climates existing in the world, Peru’s territory shows up to 84 types, which permits the great diversity of crops, husbandry and forest species our fields offer. Besides, the coast, from which most of agro exports come out, is a “natural greenhouse” due to the effect of the cold Humboldt current and the Andes mountain range on the coastal weather.
Geographical cases
Peru’s location in the southern hemisphere is also favorable because it permits to export farming products to the large consumption market in the northern hemisphere, namely United States, European Union and Japan, taking advantage of the season contrast between both hemispheres. Likewise, the fact of being located on the central part of South America with an exit to the Pacific Ocean provides Peru with a “strategic location” for the exit or entrance of merchandise from other countries, making of Peru’s natural “HUB” to the countries making up the Pacific bases.
Labor
Another important aspect to take into account in the country’s competitiveness is the relative lesser cost of Peruvian labor in the international context. You can hire very qualified workers in Peru and pay quite lower salaries to those paid in the European Union or the United States, for example. In the cases of China and India, where labor is even less costly than in Peru, other factors in Peru counteract this advantage, such as yield per hectare and transportation cost to final market destination.
Quality management (GAPs, HACCP, Traceability)
Today’s international trade is very exacting in controlling food quality. The concept of quality not only includes complying with external and internal product aspects as before, but also complying with procedures all along the product chain from its primary origin to the consumer. In this way the food innocuousness is truly guaranteed as well as the respect for international environmental protection standards, as well as those that protect the condition in which workers perform their jobs.
This is why all producers and exporters related to agro-exports in Peru are taking care in certifying the protocols and codes that ensure compliance which international markets demand, because if they don’t do so, their products may not enter foreign markets. A number of public and private institutions appropriately guide all agents in the agro-exporting productive chain so they comply with these international standards and the companies that provide certifications (SGS Peru, Control Union Peru SAC, CERPER, David Fresh, Biolatina and Primus Labs), also participate in this guiding work.
Hence, farming producers and exporters have certifications as EUREPGAP, HACCP, ISO 9000, among many of others, nowadays. They insure compliance with good agricultural practices international standards (GAP’s) as well as the traceability of all of the product’s chain processes. They also certify compliance with standards concerning innocuousness, environment and labor laws.
Besides, Peru has well-known governmental entities to regulate the quality of products traded externally and internally (INDECOPI), regulation and phytosanitary control of foods in the field, industry and trade (SENASA) and certification of compliance with hygiene and environmental health standards in food exports (DIGESA).
Agricultural and exporting businesses: Agro-exporting chains or networks
In Peru, most of the companies developing crops for exports are logistically organized for production in the fields and in plants (if they work with processed products) and to carry out product exports. These companies can also work with small producer organizations to comply with the quantity of product required for their markets, but there are also some exporting companies that only have industrial plants and need small producer organizations in different areas to get primary product supplies.
An important characteristic of agro-exporting companies is its offer diversification as a result of both their business knowledge and of the need of using industrial plant at full capacity. Let us quote the four larger non traditional farming product exporters where horticulture products are the most relevant ones .
Camposol exports fresh, preserved and frozen asparagus, piquillo pepper and preserved chili, preserved artichokes, avocados, fresh and preserved mango, onion, as well as other preserved, frozen vegetables and other fresh fruits. Agricola Virú exports preserved asparagus, preserved artichokes, piquillo pepper and preserved chili, preserved ground garlic and other preserved fruits and vegetables. Alicorp mainly exports balanced foods, products related to the oil industry (edible oils, soaps, mayonnaise, shortening, ketchup) and products derived from the wheat milling industry (pasta, cookies and crackers, flours, wafers) and Drokasa exports fresh and frozen asparagus, grapes and figs.
ASPARAGUS
Asparagus is the Peruvian horto-fruticulture export flag product. It is the only one in this group of products that has been preeminent since 1990, being until today the leading product way ahead of other horto-fruticulture products. It is exclusively produced for exports, because there is no consumption culture of this product in Peru.
It is exported under three presentations: fresh, preserved and frozen. Fresh asparagus has the greatest contribution in all of asparagus exports (58.8%) of all the US$ 318 million exported in the three presentations of asparagus in 2006. Then comes preserved asparagus (32.7%) and frozen asparagus (8.5%). In spite of the long time it has been exported, this product is still growing, thus between 2000 and 2006 total asparagus export values increased by an annual average of 14%.
Peru is the main fresh asparagus exporting country. In 2005 it had the first place in world exports with 33.3% of the total share, by exporting 80 thousand MT in that year. The main destination market is the US, which represented 74% of total exported 2005.
Peruvian fresh asparagus is very competitive in its main destination markets. In 1999, Peru shared 18.6% of the fresh asparagus supply of the United States (including that country’s own production) and in 2005 it had a share of 54.6% with Mexico, Canada and Chile as its main competitors.
In the European market, where Spain is a relevant market for Peruvian asparagus, Peru is the main supplier with 72.7% of fresh asparagus imported by Spain in 2005. Morocco, Germany, Mexico, Argentina and Chile are among its main competitors there.
ARTICHOKES
Peruvian artichoke is a vegetable that is reaching progressive positioning among the main international markets and is a great opportunity for investments. Exponential growth of exports confirms the Peruvian product’s quality and good flavor, besides competitive production and labor costs and appropriate farming and sanitary management.
Preserved artichoke production in Peru is totally aimed at exporting. Annual exported volume increase was 101.5% in 2000-2006 and the corresponding annual increase of exported value was 107.6%, reaching US$ 66 million and 30 MT in 2006.
In 2005, Peruvian exports reached US$ 44 million, a figure that took the country to the third place of global exports with 23% of the total share.
Imports of processed artichoke grew at an average pace of 7% from 1995 to 2005 in the world, and the United States is the main world importer with close to 53% of the world’s imported value in 2005. In 2006, said country was the main destination of Peruvian artichoke exports with 62% of the total exported value. Spain (17%) and France (13%) are the two other main destinations for Peruvian preserved artichokes. Other important markets such as Italy, Germany or the United Kingdom have not been sufficiently exploited by Peruvian exporters.
The country is improving its positioning in the main world markets it supplies. In 2001, Peru shared 0.2% of the preserved artichoke imports in the United States and in 2006 it had a 33.2% share, competing with countries such as Spain, Chile, Italy and China.
In the case of the Spanish market, Peru is the main supplier with 91.2% of preserved artichoke imports in 2006, competing with countries such as Egypt, France, China and the United States.
PAPRIKA
Large scale farming and production of Peruvian paprika have become a business opportunity for many exporting companies. Peru’s paprika, as well as asparagus, is a product that impacts Peruvian agribusiness sector export figures very positively. In fact, its acceptance in international markets, its sustainable growth and much better quality than the average have caused our paprika to consolidate as the third most important article in the Peruvian agro-exporting sector.
Almost all the paprika production is aimed at exports due to the low consumption of this kind of pepper in Peru. Once harvested, the fruit is dried in the field and then packed in bale to be exported. Another part of dry paprika is taken to the processing plant where, after ground, it is packed for exporting. Most paprika exports are dry. From 2000 to 2006 export value for this product went from US$ 5.9 million to US$ 73.4 million, which means an annual average growth of 52.2% (in terms of volume, growth was 56.7%, by going from 3 369 MT in 2000 to 49 853 thousand MT in 2006).
In 2004, Peruvian paprika exports reached US$ 95 million, and Peru became the 2nd world exporter of this product with 16% of world exports. World paprika imports have grown to an annual average level point of 11.7 between 2000 and 2005. And the United States has the largest share with 22% of the world value imported in 2005. In 2006, said country was the main destination of Peruvian paprika exports with 51% of the total exported value. The second destination was Spain (36%) and Mexico (6%) was the other important destination. Peru still needs to position in other relevant markets in the world such as Malaysia, Japan or South Korea.
Peruvian paprika quality imposes itself in the main markets it supplies. Peru is the main Spanish market supplier, with 77.6% of dried and ground pepper imported by Spain in 2006. Peru competes with Zimbabwe, South Africa, Morocco, China, Brazil and the United States in the Spanish market. In the case of the United States, Peru’s share went from 2.6% of US dried and ground pepper imports in 2001 to 34.83% in 2006, thus becoming the main supplier of this market. China, Mexico, India and Spain are among Peru’s main competitors in the US market.
PIQUILLO PEPPER
International market preference for quality preserved vegetables, where piquillo pepper comes out for its high A and C vitamin content, as well as calcium and a relevant presence of pepper in international cuisine have provided the base for the positioning Peruvian preserved piquillo peppers are reaching in the world.
Total preserved piquillo pepper production is aimed at exporting, which has considerately increased between 2000 and 2005 with an annual average growth of 58.48% in exported volumes. As for exports value, it reached US$ 50.16 million in 2006, with an annual average growth of 48% in the mentioned period.
In 2006 Peruvian exports reached US$ 50.16 millon, a figure that took the country to the 4th place in global pepper and other preserved vegetable exports. They accounted for 8% of total participation.
World imports of pepper and other preserved vegetables has grown at an annual average of 6% from 2002 to 2004, and Germany is the main market for this product with about 21% of world’s imports in 2005. This and other important markets such as the United Kingdom, France and Belgium have not been completely exploited by Peru yet, because the most important destinations for Peruvian piquillo in 2005 were Spain (73.5% of the exported value) and United States (16.5%).
Peruvian piquillo pepper is well positioned in the main two markets where it directs its exports, Peru is Spain’s larger supplier with 49.8% of the volume imported by this country in 2006 for piquillo pepper and other preserved vegetables. Its main competitors in the Spanish market are France, China, Turkey, Belgium, The Netherlands and Germany.
In the US market, Peru’s share went from 0.2% of preserved pepper imports in 2001 to 12.6% in 2006. Peru’s competitors with a greater participation in this market are Spain (the main supplier with 40.1% of imports in 2006), Turkey (18.1%) and Chile (9.7%.).
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