Peru agro-exportation had another booming year !

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windsportinperu
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Peru agro-exportation had another booming year !

Postby windsportinperu » Thu Jan 10, 2019 5:02 pm

The amount of selling was more than 7,000 millions of dollars ! , the increased was more than 800 millions compared to 2017

https://gestion.pe/economia/agroexporta ... tas-254606


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Re: Peru agro-exportation had another booming year !

Postby Alan » Sun Jan 13, 2019 4:28 pm

windsportinperu wrote:The amount of selling was more than 7,000 millions of dollars ! , the increased was more than 800 millions compared to 2017

https://gestion.pe/economia/agroexporta ... tas-254606



It's terrific news. This industry is also much more labor intensive than mining, so it creates lots of employment. If the country can move ahead with the irrigation projects now on hold, the bounty will be much larger still.
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Re: Peru agro-exportation had another booming year !

Postby Wiracocha » Sun Jan 13, 2019 7:07 pm

G'day Alan,

Would this possibly be because China is buying a lot more produce, since the Free Trade Agreement?

China is very,very clever. I know from how things are in Australia nowadays.( before I left to live here in Peru)

The Chinese strategy seems to be to buy up big for a year or three, get some of the bigger the farming/agro communities dependant on them...THEN, the Chinese do/try to buy the larger farms, to purely supply their own country's need of fresh,quality products.
Sounds not toooo bad....until, when they own the farms, they send over their own Chinese workers and the locals are not required....and all the profits go back to China(nett after tax), not to the local communities.
It has become so bad, that the Australian Government now has "foreign ownership" regulations and restrictions.

As I have said in a few forums over here, "learn from the mistakes of others...you will not live long enough to make them all yourself".

Be cautious about excitement of growth in this way, and to whom it goes. Look further than your current national bank account and balance of trade numbers.
It may not be too long before China wants to make a military base in Northern Peru...in return for funding major projects in Peru....and that will put Peru at odds with many countries.

Having got that off my chest....hope something sinks in to others.

Cheers,
W
Aussie in Peru.
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Re: Peru agro-exportation had another booming year !

Postby FDiH » Mon Jan 14, 2019 8:06 am

Good morning,

As a agri product exporter I may be able to shed some light on this. Ever since the superfood hype, some 10 years ago, agri products from Peru have been popular. PromPeru, an organisation that promotes Peru Tourism and Peruvian products, even uses the slogan "Superfoods from Peru" for all agri promotional activities. The slogan was actually used by my company but I am fine with them using it.
Products such as quinoa drove Peru's superfood export to record heights in 2012-2014. The other health food hype, raw food, also worked well for Peruvian products. Raw food is basically unprocessed food or processed until a certain degree/temperature/pressure. Products such as raw cacao, raw maca powder became flagship products for Peru agri promotion. Basically the same product as always, but with the 'raw' label added.
A third factor that is driving agri is the investment into coffee and cacao production. Several organizations, mostly sponsored using funds from the USA and EU, are trying to convert farmers to product cacao or coffee instead of coca. It seems a fairly successful project as over the last 5 years, cacao production has almost doubled.

The industry is growing up. The majority of exports now originates from small exporters. Exporters that approach the international marketplace through trade shows, websites, social media campaigns.

As an industry we are not there yet. On a sales, marketing and product innovation level we are still lagging behind countries such as Chile, Brazil and Argentina. But each year the industry is learning, growing and improving. It is a fun industry to work in with the many products that Peru has to offer. Hundreds, sometimes unique, products have not been commercialized yet. Especially agri products form the jungle. Out of Peru's 200 types of chili, only 3 are exported. Only 40% of all fruit types is exported, etc, etc.
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Re: Peru agro-exportation had another booming year !

Postby windsportinperu » Mon Jan 14, 2019 6:02 pm

Thanks Wira for the good information. We have to be alert about the greedy attitude of China

FDIH, good luck in Peru. The country is democratic for everyone who wants to progress in agro business. It is available for everyone no matter if is small of a big corporate company

Alan, it is exactly what Peru wants to do. Increasing the production to 10 billions of dollars a year in 2021. As you mentioned the amount of irrigable land is also boosting . It is only the beginning. There will be another 211,000 new hectares . Big irrigation land is for big companies

https://www.youtube.com/watch?v=i43JtKfavbw

P.S. How big could be 211,000 hectares ? = 2,110 km2 ; Considering that Miraflores District is about 9.5 km2, then the new avaiable land for irrigation would be moe than 200 times the size of Miraflores !
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Re: Peru agro-exportation had another booming year !

Postby Wiracocha » Mon Feb 04, 2019 1:50 pm

G'day all,

Separately from crops/agriculture and the Chinese....my other posts have warned to beware of the "Trojan Horse"concept, relating to funding and equipment given to Peru from China.
Okay, I want to sound the alarm bell AGAIN, about Peru's textile industry and the Chinese stealth tactics..

Read:(2016)
Alleged dumping of Chinese textiles into Peru threatens hundreds of thousands of jobs in Gamarra, Lima’s historic garment district.

Over 200,000 jobs have been lost and another 400,000 are at risk in the storied garment district located in La Victoria. Peru’s clothing manufacturers cannot compete with cheap Chinese imports, which they say are being unfairly priced to squeeze out competition.

“Five thousand businesses have closed in the last 12 months,” Diogenes Alva, a trade group president who has worked in Gamarra for over 50 years, told El Comercio. “Gamarra has had three crises: the Velasco government, terrorism and right now. This is the worst.”

So,it is happening already....wait until the locals surrender completely, then China will hike the prices up a lot. Is their standard infiltration technique. Clothing then will be difficult for normal Peruvians to buy within their family economic budget....inflation will rise.

Okay, enough said. I get the impression these warnings are falling on deaf ears.

W
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Re: Peru agro-exportation had another booming year !

Postby windsportinperu » Tue Feb 05, 2019 11:31 am

Wira,

Unfortunately, the only country in the World that actually are making the big investment in Peru is China !

No more presence of US, Canada, Europe or Japan

For example: Las Bambas Mine is a big investment started up by Canadians, but was sold to Chinese.

The mega-port in Chancay is also going to be built by China .. and so on

Shougang Mining in Marcona = chinese. They have just invested 1,100 millions dollars for enlargment of the Company

We prefer more countries to invest in Peru, but what can we do ?
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Re: Peru agro-exportation had another booming year !

Postby Slippin' Jimmy » Tue Feb 05, 2019 11:41 am

windsportinperu wrote:Wira,

Unfortunately, the only country in the World that actually are making the big investment in Peru is China !

No more presence of US, Canada, Europe or Japan

For example: Las Bambas Mine is a big investment started up by Canadians, but was sold to Chinese.

The mega-port in Chancay is also going to be built by China .. and so on

Shougang Mining in Marcona = chinese. They have just invested 1,100 millions dollars for enlargment of the Company

We prefer more countries to invest in Peru, but what can we do ?


I wouldn't be counting on China much longer either...

https://economictimes.indiatimes.com/ne ... 633558.cms

https://www.bbc.com/news/business-46941932
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Re: Peru agro-exportation had another booming year !

Postby FDiH » Tue Feb 05, 2019 1:22 pm

Wiracocha wrote:Alleged dumping of Chinese textiles into Peru threatens hundreds of thousands of jobs in Gamarra, Lima’s historic garment district.


This is actually quite strange. The import duties on clothing and footwear are quite high in Peru. Expats who order clothes from overseas complain on the various FB group about Peruvian import duties that need to be to Aduanas/Sunat. So it surprises me that even with really low prices, Chinese exporters are able to compete with local traders. Unless the sell at a loss to destroy the local market, take over the local market and raise prices again.
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Re: Peru agro-exportation had another booming year !

Postby Wiracocha » Wed Feb 06, 2019 12:31 pm

G'day Dutchy,

I understood that with Peru and China making a FTA (Free Trade Agreement) some time back, that this eliminated import duties here on Chinese products.
And , yes, they will sell at a loss for as almost as long as it takes to destroy almost all local makers....that's their tactic, and then after that, the prices escalate. It happened in my home country,Australia, so I know from experience.
Of course, it is also the fault of the actual importers here in Peru, looking for a quick dollar.
Cheers,
W
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Re: Peru agro-exportation had another booming year !

Postby FDiH » Thu Feb 07, 2019 3:29 pm

Peruvian Import duties according to the China-Peru FTA are 9% for both clothing and footwear. FTA: http://fta.mofcom.gov.cn/topic/enperu.shtml

You cannot simply blame Chinese traders for this. They see an opportunity and cash in on it. A lot of Peruvian consumers opt for cheap clothing and really do not care where or by whom it is produced. Child labor issues etc do not play a part. Sad but true.

A thing I see more and more is that Asian rip-offs are sold-off as the real thing in Peru. So you end up paying a lot of money for a fake. Phones, clothes, shoes, electrical equipment, etc.
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Re: Peru agro-exportation had another booming year !

Postby Alan » Thu Feb 07, 2019 5:40 pm

Wiracocha wrote:G'day Dutchy,

And , yes, they will sell at a loss for as almost as long as it takes to destroy almost all local makers....that's their tactic, and then after that, the prices escalate. It happened in my home country,Australia, so I know from experience.
Cheers,
W


I wonder if this is really the case. My impression is that the clothing industry is full of a ton of small and mid-sized companies, here and in China. Unless there is massive collusion between all the Chinese companies, where they all agreee to drop their prices, the strategy would fall flat, and they seem pretty competitive amongst themselves, which makes that kind of allegiance doubtful.

Now, if only one or two companies dropped their prices - taking a loss in the process - and were successful at pushing the local companies out of business, they would be opening this market for not just their goods, but the goods of other competing Chinese companies ( as well as Indian, or Vietnamese, or Bangladesh companies). Doesn't sound like a very sound strategy.

A more likely scenario is that the Chinese manufacturers benefit from huge markets of scale and that makes them more competitive. Unfortunately, the Peruvian textile industry doesn't seem to have much of a future. After all, what is our competitive advantage here? We don't produce much cotton, wages in the sector, even as low as they are, are no lower than other emerging markets (and are maybe even higher).

That said, there seems to be a niche for small lots of higher end garments that Peru produces for the US, Canadian and European markets. Let's hope that holds.

But getting back to the OP, agro seems to be the bright light... brighter than garment manufacture, brighter than fish meal, and unless this and future governments get their act together, brighter than new mining projects.

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