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Peru Agribusiness Report Q1 2014

Peru Agribusiness Market: New market analysis released

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2014-02-07 23:50:04 - Peru Agribusiness Report Q1 2014 - a new market research report on

Our outlook for Peru´s agricultural sector remains positive. The livestock sector is very dynamic, and investment into the country´s ethanol sector is boosting sugar production. Export crops, such as coffee and cocoa, are hampered by a lack of infrastructure and investment, but there is scope for strong growth in both, particularly as Peru is becoming increasingly recognised for organic and speciality crops.

We caution that a lack of profitability threatens to weaken the dairy sector; this could be further exacerbated by the forthcoming entry into force of the free trade agreement with the EU.

Grains & Livestock On Top Peru - Market Value By Commodity (% of total) Note: The Market Value is an addition of all domestically produced commodities´ value (calculated



by multiplying the production with the international benchmark prices, converted in US$/tonne); f = BMI forecast. Key Forecasts

- Poultry production growth to 2016/17: 19.8% to 1.4mn tonnes. Ongoing investment and the availability of cheaper imported feed will support growth in the sector.

- Sugar production growth to 2016/17: 30.2% to 1.4mn tonnes. The rapid expansion of the ethanol sector will see increasing investment in sugar cane.

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Mike King
Phone: London: +44 (0) 203 086 8600

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