Market Profile - Peru

Supply/Demand Basics

  • #5 import market for U.S. corn in MY 2015/2016.
  • Total corn demand is 4.6 MMT, of which 3 MMT is imported.
  • Peru currently produces 55 million broilers/month.
  • About 70% of yellow corn goes toward chicken feed to supply its 1,000 plus poultry farms.

Country Overview

  • Population: 30.7 million
  • Population growth: 0.96%
  • Urban %: 78.6%
  • Urban growth: 1.69%
  • GDP: $389.1 billion
  • GDP growth: 3.3%
  • GDP per capita: $12,200
  • The Peruvian economy grew by an average of 5.6% from 2009-13 with a stable exchange rate a nd low inflation, due partly to high international prices for its metals and minerals exports, which account for almost 60% of the country's total exports. Growth slipped in 2014 and 2015, due to weaker world prices for these resources.
  • Dependence on minerals and metals exports and imported foodstuffs makes the economy vulne rable to fluctuations in worl d prices.

Trade and Market Share Issues

  • Since the U.S.-Peru Trade Promotion Agreement entered into force in February 2009, total trade between Peru and the U.S. has doubled.
  • U.S., Peru are currently in 9th year of FTA. U.S. corn will receive duty free TRQ for 797 TMT in 2017. TRQ increases 5% per year until phased out in 2021.
  • When Peru implements the recommendations and ruling of the WTO in the price band dispute regarding agricultural commodities may hinder U.S. price competitiveness in country.

Policy Issues

  • Peru had its presidential election in 2016, with little-to-no challenges to its agricultural structure and export focus.
  • Bureaucratic ineffectiveness and corruption are major challenges in Peru.