[LIMA] Powerhouse fruit producer Peru is paving the way to open new markets for its exports in Asia, hoping the continent can soon displace the US as the top buyer of one of its key agricultural products.
The Andean nation is the world’s biggest exporter of blueberries, mainly to the US where the fruit’s antioxidants have made them a popular item among health-conscious consumers. Now Agriculture Minister Angel Manero is working to change that, he said in an interview after a trip to Japan, Indonesia and South Korea. While Manero shrugs off the impact of US tariffs on Peru’s agriculture, he is aware they are the elephant in the room.
“The US gets angry when we talk about Asia, but we believe that Peru needs to diversify its supply of agricultural products,” Manero said on Friday (Aug 15). “And we believe there are great opportunities in Asia.”
Regardless of US tariffs, Peru is already in the midst of opening new trade routes with Asia, thanks in part to the new US$1.3 billion Chinese-owned Chancay port. The infrastructure was inaugurated last year by Chinese President Xi Jinping and its main advantage is that it can slash travel times to Asia, a key factor for extending the shelf life of fresh fruits.
When its full potential is unlocked in about three years, Chancay will give Peru more bargaining power with buyers by cutting down exports to the US and Europe and increasing them to Asia, the minister said. Peru still needs to sign health protocols with importing nations to allow fresh fruit.
“Asia can displace the US because they consume a lot of blueberries,” he said. “If everything goes well, this year we can launch Japan and India as new markets.”
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Agreements are already in place with Indonesia and China. South Korea remains a more distant goal.
Peru exported a record US$2.3 billion of blueberries last year, 36 per cent more than the previous year, according to the trade ministry. The industry and Manero are forecasting 20 per cent growth for the 2025 season. Such growth rates can only be sustained by opening new markets, he said.
Manero is encouraged by the recent passing of a bill that lowers income tax for agribusiness companies to 15 per cent from almost 30 per cent. The bill is controversial as critics argue that the state should not be cutting taxes on a booming sector. Manero has been a staunch defender, saying the growth of the industry and the jobs it generates outweigh those concerns.
The government has supported the bill, although President Dina Boluarte is yet to sign it into law. BLOOMBERG
