Market and Trade Data
Promotion Agreement Promises Increased Access for U.S.
also. . .
past decade, Peru has been transformed by
market-oriented economic reforms and privatization into
one of the most vibrant economies in Latin America. In
2005, GDP (gross domestic product) reached $78.4
billion, growing an estimated 6.4 percent. During the
first three months of 2006, the GDP grew 6.8 percent,
driven by construction, mining, foreign investment,
domestic demand, and exports.
calendar 2005, food sales in Peru reached an estimated
$5 billion, with consumer-oriented food imports
accounting for $339 million worth (17 percent over the
year before). With $30 million in sales (9 percent of
import market), the United States was the fourth largest
supplier of high-value food products. Chief competitors
included Chile (25 percent), Argentina (13 percent), and
Colombia (12 percent).
PTPA Opens Doors
Implementation of the PTPA (U.S.-Peru Trade
Promotion Agreement) would be the icing on
the cake for U.S. agricultural exporters
selling to Peru. Once implemented (a year
after the U.S. Congress approves it),
two-thirds of U.S. agricultural products
will enjoy duty-free status in Peru.
Products that will benefit include
high-quality beef, cotton, wheat, soybeans,
soybean meal, and crude soybean oil; key
horticultural products such as apples,
pears, peaches, cherries, and almonds; food
ingredients and many processed food products
like frozen fries, cookies, and snack foods.
Tariffs on other farm products will be
phased out within 17 years. A complete list
of products that will benefit from the PTPA
can be found at:
the PTPA (U.S.-Peru Trade Promotion Agreement), Peruís
average tariff under the World Trade Organization on
agricultural products is more than 16 percent. In
contrast, under the Generalized System of Preferences
and the Andean Trade Promotion and Drug Eradication Act,
the United States already allows over 99 percent of
imports from Peru to enter duty free. Between 2003 and
2005--with barriers in place--the United States exported
over $251 million worth of farm products to Peru each
Traditionally, U.S. exports to Peru have been bulk
commoditiesówheat (half of sales), coarse grains, and
cotton. After wheat sales dropped off sharply in 2005
(replaced by wheat imports from Canada and Argentina)
U.S. consumer-oriented products stepped up, partly
replacing bulk product sales.
Personalize Market Entry
The personal visit is important to establish business
relationships in Peru. Take time to get to know a
prospective partner before making a contractual
arrangement. Entrance to the market can be through local
food processing companies, import brokers, or
your local partner to provide information on consumer
market trends, market development, and trade business
Agencies Regulate Food Safety
Exporters to Peru need to be aware of the three agencies
responsible for food safety in the country. Similar to
the U.S. Food and Drug Administration, Peruís DIGESA
(General Environmental Health Bureau) within its
Ministry of Health supervises the safety and
registration of food and beverages.
(the National Agricultural Sanitary and Phytosanitary
Service, part of the Ministry of Agriculture) is
comparable to USDAís Animal and Plant Health Inspection
Service and Food Safety and Inspection Service. The
agency develops sanitary and phytosanitary regulations
and inspects animal and plant products. Importers must
request an import permit from SENASA before shipping and
meet specific country of origin certification
INDECOPI (National Institute for the Defense of
Competition and for the Protection of Intellectual
Property) controls and regulates labeling standards and
trademarks. Labels must be in Spanish and include the
importer/distributorís contact information and taxpayer
identification number (RUC).
Provides Niche Markets
2005, total food service sales accounted for $190
million. Of this, $68 million, or 36 percent, were
imports. The niche market in this sector includes
high-end hotels and restaurants, family-style
restaurants, fast-food chains, and coffee shops.
Fast-food chains present the fastest annual growth,
averaging 8 percent over the past five years.
number of international tourists has grown 7 percent
annually over the past five years. In 2004, 1.3 million
foreign visitors spent $1 billion traveling in Peru,
while 2 million local tourists spent $154.
service prospects that will benefit from the PTPA
include food ingredients, fruits, cheeses, processed
fruits and vegetables, meats, and specialties.
2005, total food processing sales were estimated at $3.2
billion, of which $81 million were imported. Annual
growth for this sector is estimated at 4 percent. Food
processors are concentrated in 86 companies that
represent 75 percent of sales. Major prospects in this
sector for U.S. companies include food ingredients for
the dairy, flavorings, and baked goods industries.
Leads Opportunities in Retail
Lima, with one-third of Peruís population and more than
60 percent of the countryís income, is the major market
for consumer-oriented foods, with 80 percent of the
total food retail market of $5 billion.
Supermarket chains are driving expansion, with $1
billion in sales yearly and a growth rate averaging 12
percent over the past four years. They represent 24
percent of retail sales in Lima and 20 percent
make up 5 percent of consumer-oriented products sold in
supermarkets. Good prospects include snacks, fruit and
vegetable juices, fresh and canned fruits and
vegetables, dairy products, wines, liquors, and pet
Violeta Gutierrez is an agricultural marketing
specialist with the FAS Office of Agricultural Affairs
at the U.S. Embassy in Lima, Peru. E-mail: