Agriculture accounts for 7.1% of Peru's GDP and 25.7% of employment. Agriculture has traditionally played an important role in the Peruvian economy and is the second major source of export earnings for the country after the sale of minerals.
At the same time, despite the importance of the sector for the economy of the republic, the possibilities of its further development today are significantly limited by a number of climatic and geographical features. Most of Peru's territory is covered by tropical forests (Selva), Andean Mountains (Sierra) and coastal deserts (Costa). In this regard, agricultural land in the country occupies a relatively small area. In addition, Peru's agricultural sector is extremely vulnerable to climate change. In particular, the El Nino phenomenon has an extremely negative impact on the production of Peruvian agriculture, which periodically leads to various cataclysms, including floods and droughts.
The largest category of crop production in Peru is vegetables, root crops and tubers, the gross yields of which showed stable growth in 2018-2022. The basis of this category in the country is potatoes — in 2022, Peruvian farmers grew more than 6.0 million tons of potatoes, which is 5.6% more than in 2021. Also in Peru, cassava is produced in large volumes (in South America it is known as "yuca"), the gross harvest of which increased by 3.6% to almost 1.4 million tons in 2022. Also in 2022, 514.7 thousand tons of onions were produced in Peru, which is 14.5% less than in 2021.
The country is also a major producer of sugar cane. In 2022, the gross harvest of this crop in Peru amounted to about 9.6 million tons, a decrease of 2.6% compared to 2021. The main volumes of sugar cane are grown on plantations in the northern part of the country, where historically the most efficient irrigation systems are located. The largest Peruvian sugar factories are also located there, whose products are also exported.
Among the most significant crops from the point of view of Peru's exports, a variety of fruits and berries also stand out. Most of the production in this category is accounted for bananas, the gross harvest of which in 2022 amounted to almost 2.4 million tons, which is 2.4% higher than in 2021. Grape production in Peru in 2022 reached 918.8 thousand tons, which is 11.2% more than in 2021. Grapes, along with other berries that are gaining popularity in the world (primarily blueberries), are the main export product of Peruvian agriculture, and Peru ranks first in the world in terms of supplies of these products to the global market. The country also supplies avocados abroad in large quantities, the gross harvest of which in 2022 amounted to 866.5 thousand tons, which is 11.6% more than in 2021.
Peru annually produces more than 5 million tons of cereals, of which rice and corn account for the largest share. The gross harvest of rice in the country in 2022 amounted to 3.4 million tons, corn — 1.6 million tons.
The most developed branch of the livestock sector in Peru is poultry farming. In 2022, the country produced 1.8 million tons of poultry meat and 10.22 billion pieces of chicken eggs. Beef (192.7 thousand tons in 2022) and pork (181.4 thousand tons) are also produced in the republic. In 2022, Peruvian farmers produced 2.2 million tons of raw milk (local Gloria and Laive companies are key players in the dairy market). The main enterprises of the country's livestock sector are located on the Pacific coast, near the capital and largest city of Peru, Lima. Animals endemic to South America, including llamas and alpacas, are also bred in the republic, but the volume of meat production of these animals is relatively small.
Fishing is an important component of Peruvian agriculture. Fishing products are among the country's main export items, with Peru being the world's largest producer and supplier to the global fishmeal market. In 2022, the production of fish and seafood in the country amounted to 5.5 million tons. The main part of this volume is extracted by fishing in the waters of the Pacific Ocean, aquaculture currently accounts for a small part of production. At the same time, the source of the world's longest river, the Amazon, is located in the eastern part of Peru, and there are broad prospects for the development of both freshwater fishing and fish farming in the country as a whole.
In 2023, Peru imported agricultural products worth 6.9 billion US dollars, which is 8.6% less than the level of 2022. In 2019-2023, the volume of imports of agricultural products of the country in value terms grew annually by an average of 7.9%. In value terms, in 2023, the main agricultural products imported by Peru were corn (15.0%), soybean meal (11.1%), wheat (10.3%), and soybean oil (9.2%). In total, the 10 most demanded products accounted for 60.6% of the total volume of agricultural supplies to Peru in value terms.
In 2023, the volume of purchases of soybean meal increased most noticeably (+6.1% or +43.7 million US dollars), meat and poultry by-products (+8.3% or +12.0 million US dollars), as well as beet and cane sugar (+5.9% or +10.7 million US dollars). At the same time, there was a significant reduction in the country's purchases of corn (-20.3% or -262.4 million US dollars), wheat (-19.3% or -170.0 million US dollars), soybean oil (-17.7% or -135.9 million US dollars) and soybeans (-29.1% or -54.1 million US dollars).
The main supplier of agricultural products in Peru is Argentina — in 2023, the share of Argentine products in imports amounted to 24.4%. The top 3 exporting countries for the year also included the United States (12.4%) and Bolivia (11.4%). In total, the 10 largest supplier countries accounted for 80.5% of agricultural imports in value terms.
Exports of agricultural products to Peru from Brazil (+40.2% or +148.9 million US dollars) and Paraguay (2.1 times or +123.9 million US dollars) increased most noticeably in 2023. Compared with the level of 2022, Brazil increased the supply of soybean oil by 91.4% (from 31.8 million US dollars to 60.9 million US dollars), beet and cane sugar by 2.6 times (from 13.7 million US dollars to 36.0 million US dollars), and also resumed the supply of soybeans in the amount of 33.5 million USD. Paraguay exported 2.1 times more oilcake and soybean meal (from 47.2 million US dollars to 97.1 million US dollars) and 2.9 times more corn (from 32.6 million US dollars to 93.3 million US dollars).
At the same time, in 2023, Peru's imports from Argentina (-26.6% or -609.7 million US dollars) and Bolivia (-27.2% or -293.9 million US dollars) significantly decreased. Argentina reduced corn exports by 30.3% (from 1.2 billion US dollars to 819.4 million US dollars) and wheat exports by 77.3% (from 283.5 million US dollars to 64.5 million US dollars). Bolivia reduced the supply of soybean meal to Peru by 24.4% (from 580.0 million US dollars to 438.7 million US dollars) and soybean oil by 35.5% (from 247.6 million US dollars to 159.6 million US dollars).
In 2023, the value of exports of agricultural products of Peru amounted to 13.1 billion US dollars, decreasing by 5.4% compared to the level of 2022. In 2019-2023, the exports of agricultural products of the country in value terms grew annually by an average of 5.8%.
The basis of exports of agricultural products from Peru in 2023 were fresh grapes (13.3%), as well as cranberries, blueberries and other vaccinium berries (12.8%). In terms of the volume of supplies of these products to the world market, Peru occupies a leading position. In total, the top 10 exported types of agricultural goods accounted for 62.2% of the country's agricultural exports in value terms. Exports of fresh grapes from Peru increased most noticeably in 2023 (+29.5% or +397.6 million US dollars), cranberries, blueberries and other vaccinium berries (+26.6% or +352.6 million US dollars), as well as shellfish (+24.2% or +133.0 million US dollars). At the same time, exports from Peru of fish flour (-49.6% or -911.5 million US dollars), coffee (-32.9% or -406.9 million US dollars), as well as vegetables cooked or canned without vinegar (-11.7% or -56.9 million US dollars) significantly decreased in 2023.
The main importer of agricultural products from Peru in 2023 was the United States (29.8% of exports in value terms). The top three importing countries also included China (12.1%) and the Netherlands (11.4%). In total, by the end of 2023, the 10 largest importers accounted for 77.5% of exports of Peruvian agricultural products.
In comparison with 2022, the USA (+5.4% or +199.5 million US dollars) and Mexico (+18.2% or +57.9 million US dollars) demonstrated the most significant increase in the volume of purchases of agricultural products from Peru. The United States increased purchases of cranberries, blueberries and other vaccinium berries by 38.0% (from 693.5 million US dollars to 957.3 million US dollars), and also increased imports of fresh grapes by 32.1% (from 640.7 million US dollars to 846.3 million US dollars). Mexico also imported 77.7% more fresh grapes in 2023 (from 73.2 million US dollars to 130.1 million US dollars). At the same time, in 2023, Peru's agricultural exports to China decreased (-25.9% or -552.1 million US dollars) and Ecuador (-15.4% or -92.3 million US dollars). Both countries significantly reduced purchases of fish flour: China — by 48.5% (from 1.4 billion US dollars to 732.3 million US dollars); Ecuador — by 44.1% (from 116.2 million US dollars to 65.0 million US dollars).
