Statistics from the Peruvian Ministry of Agricultural Development and Irrigation (Midagri) show that by the end of 2022, the export value of Peruvian agricultural products will reach a record 7.557 billion US dollars. Although Chile still leads the way with US$10.664 billion in exports during the same period, in the ten years from 2021 to 2022, the average annual growth rate of Peru's agricultural exports will reach 10.1%, exceeding Chile's 2.4%.

César Romero, a foreign trade expert from the Peruvian Bureau of Agriculture, said that if this momentum of development is maintained in the next few years, Peru's agricultural exports will reach US$12.21 billion in 2027, surpassing Chile's US$12.009 billion.

According to reports, Chile currently has serious water supply problems, which have affected agricultural production. Due to the privatization of water rights in Chile, people buy water rights through auctions, which leads to various irrational phenomena in the use of water resources.

Peru has water, labor and other conditions suitable for the production of agricultural products. In addition, the climate in the coastal area is similar to a "natural greenhouse", which can achieve year-round production. According to César Romero, Peru has surpassed Chile in exports of blueberries, avocados and table grapes. Although Chile is currently still the main exporter of cherries, kiwis, plums, apples, blueberries, avocados, table grapes and asparagus, Peru’s exports of blueberries, avocados, table grapes, citrus, mangoes, asparagus, olives, artichokes, garlic, coffee, cocoa and bananas continued to grow.

Peru VS Chile: Blueberries, Avocados, and Table Grapes

Statistics from the Peruvian Ministry of Agricultural Development and Irrigation show that in the past 10 years, the average annual growth rate of Peruvian blueberry exports was 123.3%, while that of Chile was only 2.6%. In 2022, Peru's blueberry exports will reach a record US$1.364 billion, while Chile's will only reach US$509 million. As early as 10 years ago, in 2012, Peru's blueberry exports were almost zero, while Chile's was 395 million US dollars. In 2018, Peru and Chile exported almost the same amount of blueberries, and Peru overtook it the following year.

From 2012 to 2022, the average annual growth rate of Peru's fresh avocado exports is 20.7%, while that of Chile is only 3.3%. In 2022, Peru's avocado exports will reach US$895 million, while Chile's will only reach US$213 million.

During the same period, the average annual growth rate of Peru's table grape exports was 14.1%, while that of Chile was only 1.9%. In 2022, Peruvian table grape exports will reach a record high of US$1.463 billion, while Chile will also hit a record high of US$1.733 billion during the same period. In 2021, the export volume of Peruvian grapes will exceed that of Chile. However, in 2022, Chile will introduce new varieties and successfully harvest them, bringing the export volume back to the top.

Peru consolidates agricultural exports

César Romero pointed out that in order to ensure the sustainable development of agricultural product exports, the Peruvian government must consolidate new agricultural land. He said the government is currently advancing two large irrigation projects, the Majes-Siguas II project in Arequipa and the Chavimochic III project in la Libertad, which can cover 38,500 hectares and 63,000 hectares of agricultural land respectively.

According to data from the Peruvian Agricultural Industry Association, currently about 60,000 hectares of land in Peru are used for exporting agricultural products. If these two projects are added, the land area has almost tripled.

The destinations of Peru’s agricultural products are relatively concentrated. Eight countries purchased 71% of Peru’s exported agricultural products. These countries are the United States, the Netherlands, Spain, the United Kingdom, Chile, China, Germany and Ecuador. Therefore, there is still a lot of room for development in markets such as Asia and Australia.

In addition, agricultural experts also emphasized technological innovation, the signing of phytosanitary agreements, and the reduction of logistics costs in order to enhance the competitiveness of Peruvian agricultural exports.

From January to May this year, Peru's total agricultural exports reached US$3.518 billion, an increase of 0.2% over the same period in 2022. If there are no trade restrictions or adverse weather effects, it is estimated that the export value of Peruvian agricultural products is expected to reach 10 billion US dollars in 2025.