Trade and production: Peru

Peru lies on the west coast of South America, north of Chile. It has a population of around 33 million. Most people live along the coast of the Pacific Ocean, where the capital, Lima, is located.

The agricultural area in Peru is relatively small as the land area is mainly made up of jungle and mountainous highlands, unsuitable for intensive livestock production or large-scale arable operations.

Peru’s top agricultural products are potatoes, rice and plantain. It imports a large number of grains, especially wheat, maize and dairy products. Agriculture represents 7% of GDP (World Bank, 2023).

Following the EU Exit, the UK and Peru signed a continuity trade agreement in 2019 to replace the previous trade agreement with the EU.

Beef

The beef industry in Peru is small, and production is mainly extensive within the highlands and jungle. Cattle are typically dual-purpose, used for both meat and milk. Often the older animals are used for beef, which results in poor-quality meat.

Beef consumption is 4.2 kg per capita. Although this is lower than average, the Peru beef industry needs to produce more to meet domestic demand. There is a huge reliance on imports to satisfy demand and provide higher-quality meats. Peru does not export beef due to the demand and small production levels.

Peru imports 6,284 t of beef annually, mainly from other South American countries and the USA. Over half of the beef imported comes from Brazil. This is because of how close the countries are and because Brazil is one of the largest beef exporters globally.

Table 1. Beef annual production and trade, 2019–2021 average (TDM)

Table 2. Beef imports 2019–2021 average

Sheep

The sheep industry in Peru is small compared to the UK and is predominantly in the mountainous regions. The primary product from sheep is wool: meat has historically been treated as a by-product from surplus lambs and older animals.

Consumption has increased over the last 20 years, so production is focusing more on meat production. Due to limited sheep production, Peru does not export any sheep meat.

Domestic production tends to satisfy demand, resulting in limited imports. However, consumption is expected to increase over the next decade, which could present opportunities for exports to Peru if production does not increase.

Table 3. Sheep annual production and trade, 2019–2021 average (TDM)

Pork

Pork is the second most consumed meat in Peru after chicken. Consumption is predicted to increase in line with economic development.  

Peru produces, on average, 173 Kt of pork each year. This amount almost satisfies domestic demand, and it only imports about 8 Kt. The key countries that export pork to Peru are the USA, Chile and Canada. There are minimal imports from Europe.

Currently, Peru does not export any pork because the industry is not free from Classical swine fever (CSF). However, Peru’s Ministry of Agriculture is implementing a programme to control and eradicate the disease. The country is looking to increase exports in future years, especially to Asia.

Table 4. Pork annual production and trade, 2019–2021 average (TDM)

Table 5. Pork imports 2019–2021 average

Dairy

There are estimated to be 906,000 head of cattle in Peru. As mentioned above (in the beef section), dairy farms are often dual-purpose; they produce beef from surplus and older cattle. Production systems are predominantly small-scale and extensive: 51% of dairy farms have less than nine milking cows, and only 12% have more than 50 cows.

The dairy industry in Peru is relatively small. It is limited by low production resulting from a lack of advanced technology. Some farms along the coast, however, benefit from up-to-date technologies and have a milk output of over 40 L per day.

Also, Peru’s cattle industry is highly dependent on imported feed. Inflation of input costs (mainly feed costs) plus the devaluation of the Peruvian sol have made it hard for businesses to be profitable.

Per capita milk consumption in Peru is 87 L per person per year. Due to limited production, Peru relies on imports of powdered milk to satisfy demand. The key exporters are the USA, Argentina and Chile.

Consumption of butter and cheese is relatively low compared to other countries. Cheese production is higher than butter because dairy producers make more profit on artisan cheeses. Most imports of cheese and butter are from the USA and other South American countries. However, the EU also exports to Peru.

Table 6. Butter annual production and trade, 2019–2021 average (TDM)

Table 7. Cheese annual production and trade, 2019–2021 average (TDM)

Table 8. Butter imports 2019–2021 average

Table 9. Cheese imports 2019–2021 average

Table 10. Peru consumption per capita