Peru: Commercial Guide of Organic Products

Situation of Organic Production in Peru

Index
Situation of Organic Production in Peru
1.- Area with Organic Production 2.- Exports according to End-markets 3.- Exports by Organic Products 4.- National Legal Framework

1. Area with Organic Production

Certified and in Transition

According to information from the National Competent Authority-SENASA, in 2005, Peru had approximately 273,754 hectares managed under the principles of organic farming (certified and transition). The major areas of production of organic crops were recorded in the departments of Cuzco and Madre de Dios in the southeast of Peru.

Certified and in Transition

According to data from 2005, organic production is in the hands of 33,474 small producers organized.
The largest area certified wild was found in the area of Madre de Dios, with more than 150,000 hectares.

Cuzco is the zone which registered the largest amount of producers with organic crops (5,163)

Area by Zones
2005 Peru: 273,754 hectares (*)

(*) Includes hectares, Certified and in Transition Source: SENASA Elaboration: SENASA

Producers by Zones
2005 Per: 33,474 Small Producers

Source: SENASA Elaboration: SENASA

2. Exports according to End-Markets

Exportable Offer
In 2006, Peruvian exports of organic products added up to US$ 100.84 million. The annual growth rate is about 49%. For 2007, exports are expected to exceed $ 150 million.

Exportable Offer
Peruvian Exports of Organic Products (*)
100 80 Million US$ 60 40 20 0 1999 2000 2001 2002 2003 2004 2005 2006 100 80 60 40 20 0 % FOB Value Yearly growth rate %
(*) Estimates Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
The main markets for Peruvian organic products are Europe and North America by concentrating 62% and 35% of exports, respectively. The main importer countries of Peruvian organic products are Germany and the United States.

Exportable Offer
Main Markets of Peruvian Organic Products
According to FOB Value 2006 (*)

A sia

Others

2.72%

0.23%

No rth A merica

34.59%

Euro pe

62.47%
(*) Estimates Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
In 2006, Peruvian exports of organic products to Europe added up to US$ 62.5 million (56.22% more than in 2005). The main end-markets in Europe were: Germany, Belgium and Holland; concentrating as a whole 92.13%.

Exportable Offer
Main Destinations of Peruvian Organic Products in Europe
According to FOB Value 2006 (*)

Sw eden 3.69% Holland 18.05%

France 2.36%

England 1.05%

Others 0.77%

Germany 47.10%

Belgium 26.98%
(*) Estimates Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
The growth over the previous year, of the Peruvian organic products exports to Germany, Belgium and Netherlands is around 50%, 117% and 50%, respectively. Nevertheless, England is the destiny that recorded the highest growth in 2006, with a rate of 169.35% compared with the previous year.

Exportable Offer
The main Peruvian organic products exported to Germany, Belgium and Holland are: coffee, bananas, cocoa, as well as their derivatives. The main Peruvian organic products exported to England are: Brazilian nuts, mango, cocoa, maca, tomato, hot chili peppers and their derivatives .

Exportable Offer
Main Peruvian Organic Products Exported to Germany
2006 (*)

Products (^) Coffee Banana Cocoa Amaranthus Tomato Mango Others TOTAL

FOB Value
US$

Share 91.44% 5.91% 1.01% 0.45% 0.28% 0.23% 0.66%

27,133,519.42 1,753,878.25 300,297.00 134,920.79 83,389.57 69,727.00 197,211.21 29,672,943.24

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
Main Peruvian Organic Products Exported to Belgium
2006 (*)

Products (^) Coffee Banana Cocoa Cotton Mango Mint Others TOTAL

FOB Value
US$

Share 63.98% 26.96% 8.90% 0.08% 0.04% 0.02% 0.02%

10,874,620.14 4,582,180.00 1,513,258.07 12,817.95 6,405.20 3,160.47 3,623.10 16,996,064.93

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
Main Peruvian Organic Products Exported to Holland
2006 (*)

Products (^) Banana Coffee Cocoa Tomato Mango Sesame Others TOTAL

FOB Value
US$

Share 50.48% 41.32% 6.12% 0.92% 0.63% 0.23% 0.29%

5,740,539.26 4,699,459.57 696,164.45 104,992.85 71,514.20 26,519.92 32,859.40 11,372,049.65

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
Main Peruvian Organic Products Exported to England
2006 (*)

Products (^) Brazilian nuts Mango Cocoa Maca Tomato Hot chili pepper Others TOTAL

FOB Value
US$

Share 54.19% 26.20% 10.23% 3.85% 2.80% 1.51% 1.23%

356,753.98 172,487.50 67,361.56 25,364.00 18,406.88 9,924.54 8,066.20 658,364.66

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Prepared by: Agriculture and Agroindustry Management

Exportable Offer
Also, Peruvian exports of organic products to North America added up to US$ 34.87 million (27.93% more than in 2005) The main destination is the United States, to concentrate 93.25% of exports to this market.

Exportable Offer
Main Destinations of Peruvian Organic Products in North America
According to FOB Value 2006 (*)

Canada 6.11%

Mexico 0.64%

United States 93.25%

(*) Estimates Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
Exports of Peruvian organic products to the United States grew 32% over the previous year. The main exported products to the United States are: coffee, bananas, cocoa, Brazilian nuts, hearts of palm, pecan nuts and their derivatives.

Exportable Offer
Main Peruvian Organic Products Exported to United States
2006 (*)

Products (^) Coffee Banana Cocoa Brazilian nuts Heart of palm Pecan nuts Others TOTAL

FOB Value
US$

Share 51.71% 37.55% 3.24% 2.12% 1.28% 1.13% 2.97%

16,818,015.81 12,213,189.60 1,052,334.00 689,381.36 415,751.25 368,372.19 967,592.71 32,524,636.92

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
Peruvian exports of organic products to Asia added up to US$ 2.74 million (29% more than in 2005) The main destination is Japan to concentrate 95% of exports to this market.

Exportable Offer
Main Destinations of Peruvian Organic Products in Asia
According to FOB Value 2006 (*)

China 1.74% Taiw an 2.71% Others

Japan 95.21%
(*) Estimates Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
Exports of organic products from Peru to Japan had a growth of 26.5% over the previous year. Nevertheless, in this market, Korea and Taiwan had the highest growths to record, in 2006, rates of 195.71% and 155.56% respectively.

Exportable Offer
The supply of organic products from Peru exported to Japan is made up of: bananas, maca, cotton, tomato, broccoli, amaranth (kiwicha), yacn, in addition to their derivatives. The products exported to Taiwan and Korea are coffee, maca and their derivatives.

Exportable Offer
Main Peruvian Organic Products Exported to Japan
2006 (*)

Products (^) Banana Maca Cotton Tomato Broccoli Amaranthus Yacon TOTAL

FOB Value
US$

Share 79.82% 8.81% 5.26% 3.33% 2.61% 0.13% 0.04%

2,084,179.36 230,174.00 137,410.31 87,016.39 68,100.00 3,342.80 1,000.00 2,611,222.86

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
Main Peruvian Organic Products Exported to Taiwan
2006 (*)

Products (^) Coffee Maca TOTAL

FOB Value
US$

Share 83.64% 16.36%

62,196.80 12,163.00 74,359.80

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
Main Peruvian Organic Products Exported to Korea
2006 (*)

Products (^) Maca TOTAL

FOB Value
US$

Share 100.00%

6,210.00 6,210.00

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

3. Exports by Organic Products

Exportable Offer
The exportable supply of organic products from Peru is made up of: Coffee and Cocoa Fruits olives, bananas, camu camu, lucuma, mango and their derivatives. Brazilian nuts, pecan nuts and their derivatives.

Exportable Offer
Vegetables hot chili pepper, algarroba, broccoli, onion, corn, asparagus, heart of palm, panela, pepper, tomato and their derivatives. Cereal, grains and beans sesame, amaranthus (kiwicha), quinoa and their derivatives.

Exportable Offer
Spices and Condiments Ginger, oregano Natural Products Herb louise, maca, purple corn, marjoram, mint, rosmarine, thyme, cat claw, yacon, medicinal plants and their derivatives Fibers cotton

Exportable Offer
The main organic product export is coffee. In 2006, its sales exceeded $ 65 million (64.92%). The main destination for organic Coffee is Germany by concentrating 41.44% of exports. It is followed by the United States with 25.69% and Belgium with 16.61% Peru has become the 1st largest exporter of organic coffee in the world.

Exportable Offer
Peruvian Exports of Organic Coffee
According to FOB Value 2006 (*) (^)

Sweden 3.55% Holland 7.18%

Canada 2.94%

Others 2.58%

Germany 41.44%

Belgium 16.61%

United States 25.69%

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
At followed largest coffee, bananas, cocoa and brazil nuts which accounted in 2006, 26.32%, 3.82% and 1.35% of exports of organic products, respectively. The main destination of the organic banana is the United States (46.01%). In addition, cocoa is Belgium (39.31%) and brazil nuts is the United States (50.67%).

Exportable Offer
Exports of Organic Products of Peru
According to FOB Value 2006 (*) (^)

Cocoa 3.82%

Brazilian nuts 1.35%

Others 3.59%

Banana 26.32%

Coffee 64.92%

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
Main Destinations of Exports of Organic Bananas of Peru
2006 (*) (^)

Products (^) United States Holland Belgium Japan Germany Spain Others TOTAL

FOB Value
US$

Share 46.01% 21.63% 17.26% 7.85% 6.61% 0.31% 0.33%

12,213,189.60 5,740,539.26 4,582,180.00 2,084,179.36 1,753,878.25 81,006.46 87,441.24 26,542,414.17

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
Main Destinations of Exports of Organic Cocoa of Peru
2006 (*) (^)

Products (^) Belgium United States Holland Germany Italy England Others TOTAL

FOB Value
US$

Share 39.31% 27.33% 18.08% 7.80% 3.91% 1.75% 1.82%

1,513,258.07 1,052,334.00 696,164.45 300,297.00 150,544.13 67,361.56 70,017.60 3,849,976.81

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
Main Destinations of Exports of Organic Brazilian Nuts of Peru
2006 (*) (^)

Products (^) United States England Italy Germany Canada TOTAL

FOB Value
US$

Share 50.67% 26.22% 16.04% 4.11% 2.95%

689,381.36 356,753.98 218,197.00 55,930.00 40,157.00 1,360,419.34

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
Exports of organic products from Peru that grew the most, compared to the previous year, are: chilies, cocoa, amaranth (kiwicha) lcuma, purple corn, mango, palm and pecanas. On average, the growth rate for these products is around 260%.

Exportable Offer
Peruvian exports of organic Hearts of Palm and their derivatives grew 530.3% compared to the year 2006. The main export destination is the United States, concentrating 91.73% of sales.

Exportable Offer
Main Destinations of Exports of Organic Hearts of Palm of Peru
2006 (*) (^)

Products (^) United States Mexico TOTAL

FOB Value
US$

Share 91.73% 8.27%

415,751.25 37,485.00 453,236.25

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
Peruvian exports of organic Lucuma and their derivatives grew 428.34% compared to the previous year. The main destiny of export is the United States concentrating near 50% of the sales.

Exportable Offer
Main Destinations of Exports of Organic Lucuma of Peru
2006 (*) (^)

Products (^) United States England France Holland Canada TOTAL

FOB Value
US$

Share 49.35% 36.09% 7.53% 3.66% 3.37%

6,148.00 4,496.20 937.50 456.00 420.00 12,457.70

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
Peruvian exports of organic Purple Corn and their derivatives grew 349.31 from the previous year. The main export destination is the United States.

Exportable Offer
Peruvian exports of organic Pecan Nuts grew 287.86% compared to the previous year. The main export destination is the United States concentrating 95.35% of sales.

Exportable Offer
Main Destinations of Exports of Organic Pecan Nuts of Peru
2006 (*) (^)

Products (^) United States Holland TOTAL

FOB Value
US$

Share 95.35% 4.65%

368,372.19 17,978.40 386,350.59

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
Exports of Peruvian organic Mango and their derivatives grew 162.44% from the previous year. The main export destination is England concentrating 49.25% of sales.

Exportable Offer
Main Destinations of Exports of Organic Mango of Peru
2006 (*) (^)

Products (^) England Holland Germany United States Belgium France TOTAL

FOB Value
US$

Share 49.25% 20.42% 19.91% 6.79% 1.83% 1.81%

172,487.50 71,514.20 69,727.00 23,781.60 6,405.20 6,336.00 350,251.50

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
Exports of Peruvian organic Amaranthus (Kiwicha) and their derivatives grew 136.76% compared to the previous year. The main export destination is the United States concentrating 47.67% of sales.

Exportable Offer
Main Destinations of Exports of Organic Amaranthus (Kiwicha) of Peru
2006 (*) (^)

Products (^) United States Germany Bolivia Japan Canada England Belgium TOTAL

FOB Value
US$

Share 47.67% 42.62% 7.38% 1.06% 0.77% 0.26% 0.25%

150,915.52 134,920.79 23,359.00 3,342.80 2,434.44 820.00 792.60 316,585.15

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
Exports of Peruvian organic Cocoa and their derivatives grew 136.7% compared to the previous year. The main export destination is Belgium concentrating 39.31% of sales.

Exportable Offer
Main Destinations of Exports of Organic Cocoa of Peru
2006 (*) (^)

Products (^) Belgium United States Holland Germany Italy England Others TOTAL

FOB Value
US$

Share 39.31% 27.33% 18.08% 7.80% 3.91% 1.75% 1.82%

1,513,258.07 1,052,334.00 696,164.45 300,297.00 150,544.13 67,361.56 70,017.60 3,849,976.81

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

Exportable Offer
Peruvian exports of organic Hot Chili Pepper and their derivatives grew 135.32% as compared to the previous year. The main export destination is England concentrating 55.77% of sales.

Exportable Offer
Main Destinations of Exports of Organic Hot Chili Pepper of Peru
2006 (*) (^)

Products (^) England United States TOTAL

FOB Value
US$

Share 55.77% 44.23%

9,924.54 7,871.25 17,795.79

(*) Estimates (^) Include their derivatives Source: SUNAT - ADUANAS Elaboration: Agriculture and Agroindustry Management

4. National Legal Framework

ain Index

Competent Authority
Peru has a National Competent Authority in the area of Organic Production which is the National Agrarian Health Service SENASA. The objective of the Sub-Direction for Organic Production SENASA is to generate confidence and guarantee the acceptance of organic products from Peru in the domestic and international markets.

Competent Authority
Currently SENASA is developing the following actions:
Record, monitor and punish those certification bodies, through audits and monitoring operators. Controlling markets to prevent the sale of products seudo-orgnicos.

Competent Authority
Processing agreements equivalence of National Control System with foreign governments. Sensitizing management and the general public about the existing rules and the role of the Authority in the area of organic production.

Organic Products Agriculture and Agroindustry Management

Telfono: (+51 1) 222 1222 Ext. 777 Fax: (+51 1) 421 3179

bio@promperu.gob.pe www.promperu.gob.pe