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USDA International Egg and Poultry

23 April 2014

USDA International Egg and Poultry: Peru Poultry Production to IncreaseUSDA International Egg and Poultry: Peru Poultry Production to Increase

Poultry production in Peru is expected to increase at an average annual growth rate of 2.35% between 2012 and 2020, increasing from 1.08 million metric tons in 2012 to almost 1.31 million metric tons in 202 using data from OECD-FAO’s Agricultural Outlook database.
USDA International Egg and Poultry

FAS Lima estimated that over 68% of domestically produced yellow corn goes towards chicken feed to supply the country’s 1,000 plus poultry farms. There were about 20 formal poultry operations in 2012; informal domestic poultry producers, which do not pay taxes, account for about 25% of overall poultry meat production.

Poultry meat is one of Peru’s most affordable sources of animal protein. According FAS Lima, Peru currently consumes about 48 million broilers per month; an estimated 1.25 metric tons were consumed in CY 2013. The OECD-FAO Agricultural Outlook has poultry meat per capita consumption growing from 32.6 kg in 2012 to 36.3 kg by 2020.

Peru is a net importer of poultry meat. In 2012 net poultry meat imports totaled 27,000 tons. The major supply sources are Brazil (31%), US (27%), Chile (25%). Argentina (11%), and Bolivia (6%). Brazil’s strength is the diversity of its supply, which includes offals, turkey and chicken cuts. Chile is strong in turkey cuts. Peru’s imports are mainly chicken and turkey parts.

US – Peru Trade Promotion Agreement

The US-Peru Trade Promotion Agreement (PTPA) has been instrumental in boosting bi-lateral trade in food and agricultural products between the United States and Peru. The PTPA provided duty free access for two-thirds of US food and agricultural products.

Five years after entering into force (February 1, 2009), trade between the two partners is at record highs. FAS Lima finds bilateral trade in food and agricultural products shooting upwards since the PTPA (using 2008 and 2009 base line years) entered into force. Exports of US poultry meat to Peru at $13 million and prepared foods at $25 million are up 3,000 and 110 percent respectively compared to pre-PTPA 2008 levels.

Source: USDA FAS GAIN Report The US-Peru TPA Five Years of Spectacular Growth 2/10/2014;

The Pacific Alliance

The Pacific Alliance (Chile, Colombia, Mexico, and Peru) was signed on June 6, 2012 and is showing better than expected actual progress toward trade liberalization and integration. Members aim to eliminate import duty tariffs on 92% of their trade within the next 12 months. The Pacific Alliance has avoided the pitfalls that have befallen other regional integrations attempts by setting less ambitious (political) goals, focusing more narrowly on trade liberalization. At a recent meeting Costa Rica was accepted as a full member effective 2015.

The Pacific Alliance plans to operate as a unified group in future trade negotiations with other developed economies and trade blocks: its member states are already participating jointly in food and agricultural product related trade fairs (e.g., Fruit Logistica (Berlin), SIAL (Paris), Seoul Food, World Food (Istanbul) and Food Taipei.

The Pacific Alliance accounts for roughly 36% of Latin America’s gross domestic product and around 50% of the region’s exports. Other regional actors are actively contemplating formal membership; many are already requesting observer status. The US is not adversely affected by the Pacific Alliance thanks to its own comprehensive trade agreement with its members.

Source: USDA FAS GAIN Report Pacific Alliance Prospers while Andean Community Stumbles 2/19/2014

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