PERUVIAN AGRO-EXPORTS

I. INTRODUCTION

Nowadays, agroexport is one of the benefits that the country has for its
development in all areas. But not many of us know the different products we
produce in our region.
That is why, in this work will get to know the meaning of agroexport and the
importance of this for the country.

Well, Peru is not Peru 10 years ago. Agroexports have grown by 17%
annually, which has allowed it to double its value every five years. We are
positioned among the top 10 food suppliers in the world, with products such
as quinoa, asparagus, coffee, mango, maca, olives, grapes and, recently,
blueberries, all of which have an enormous value for world food security.

In recent years, the tendency in international markets to consume healthy and

nutritious Peruvian foods has increased.

The good performance has turned agroexports into the second economic
sector generating foreign currency. In fact, it’s estimated that they will reach
12,000 million dollars by the end of 2018 thanks to the opening of new
markets.

This monograph is based on the basic concepts of exports, as well as the

Peruvian operations in this ambit, the development of Peru in the agroexport
sector, knowing that it’s exported in a higher index of raw materials, its
importance for Peruvian development and the global impact of the
agroexports of this country.

We’ll review the main export concepts, the importance of exports for a country,
as well as the processes to export goods.

We’ll also review Peruvian exports and their evolution over the years.

Finally, some conclusions and recommendations are given that may be useful
for those regions that operate in the field of exports, taking into account that
exports correspond to being the main source of foreign exchange for
industrialized, developed countries, or in our case, in developmental.
II. GENERAL CONCEPTS OF EXPORTS

Exportation is the customs regime that allows the legal exit of goods from the
customs territory for use or consumption in the foreign market.

The institution responsible for authorizing the departure of goods from the
country is the National Customs Superintendence, which can only be fulfilled
by maritime, fluvial and lacustrine ports, airports and authorized customs
borders. The export of goods in our country isn’t affected by any tax

Once somebody decide to enter the export process, this must meet the
following requirements:

Count preferably with a company duly constituted and authorized to

export for which it must register in the state institutions. On the other hand, it
must have the Unique Registry of Taxpayers - RUC, which is regulated by
Decree Law No. 25732 dated 24.09.92, which is created in response to the
need to replace the deficiencies of the identification system through the Tax
Book.

The RUC is a computerized, unique and centralized registry of taxpayers and

/ or those responsible for the taxes administered by the National
Superintendency of Tax Administration - SUNAT. Exporters who obtain the
respective RUC number may obtain the authorization to issue invoices for the
export of their products.

The determination of the exportable offer must be complemented with the

description of the product in terms of its benefits, uses and types of
presentation, type of container and packaging, brands, international bar code,
appellation of origin.
It is required to know the tariff heading of the product that is going to be
exported.

It’s convenient to have referential prices, in order to allow the exporter to set
competitive prices, considering that in the international market there are many
companies that compete with similar products.

The product: the company must have quality products duly guaranteed. Also,
have the production capacity in a way that guarantees the fulfillment of
sufficient volume and continuity in the terms and conditions agreed with the
buyer.
Markets: to export it’s necessary to carry out market research, for which are
required to export promoting institutions, guilds, chambers of commerce, and
other means of indirect contact that allow buyers to meet in target markets.
Once the potential buyers are located, the following steps should be followed

III. PERUVIANS EXPORTS

International trade and especially foreign trade is very important for sustained
long-term growth and development; even more so today, it has an important
weight in the economic activity of the countries, which is demonstrated by the
evidences of the developed countries and the experiences of the "successful
countries" that have achieved their growth and economic development thanks
to the growth of the exports.

In Peru, various economic policies have been implemented, including

measures related to foreign trade and exports in particular, measures that
have often been opposed, although in spite of the fact that the governments
in power made the possible efforts by applying certain measures to increase
the quantum and the value of exports, the expected results of increasing the
value of exports in real terms and in line with the growth of the world economy
haven’t been obtained; on the contrary, we’ve a permanent and growing deficit
in the trade balance; increase of smuggling and fraud of customs revenues;
complaint to the WTO of some countries for the misapplication of mechanisms
for the return of indirect taxes to exporters; loss of competitiveness of export
prices due to over tax, financial, labor costs, etc., these negative
consequences of the 90s were caused by some uncontrollable aspects for the
Peruvian Government: the international financial crisis and its negative effects
for the Peruvian economy; “El Fenómeno del Niño” that hit the Peruvian
economy; the fall in international prices of primary products; the application of
a stabilization policy that involved reducing inflation to international levels;
assume the economic - financial obligations contracted with foreign agencies
and banks; exaggerated expenses for internal security (terrorism - the cost of
pacification) and external security (war with Ecuador); to this is added the
generalized crisis that swept the decade of the 80s, for that reason the decade
of the '90s is characterized by consolidating the bases for a sustained and
disciplined growth.
IV. PERUVIANS AGROEXPORTATIONS

Peruvian agroexports are growing significantly as well as the variety of foods that
are exported and the markets in which Peru is positioned.

Agroexports have grown by 17% annually, which has allowed it to double its value
every five years. We are positioned among the top 10 food suppliers in the world.

The agricultural sector is one of the main sectors that generate foreign exchange in
Peru and one of the most traditional export sectors of the Peruvian economy. In this
sense, according to figures for 2016, US $ 900 million were obtained from exports
of this productive sector, of which 32% are based on foreign sales of traditional
products and the remaining 68% for non-traditional products.

The qualification of traditional agricultural products elaborated by Customs includes

coffee, sugar, cotton, wool, fresh skins, coca and derivatives, molasses and
chancacas. Of these exports, 87% is explained by sales abroad of coffee, Peru's
main export agricultural product. On the other hand, in the field of non-traditional
agricultural products are the rest of existing products: fresh asparagus, canned
asparagus, mangoes, marigold flour, grapes, among others.

It should be noted that the growth of agricultural exports during the last years has
been significant. In 2016, only US $ 580 million of agricultural products were
exported, of which 70% corresponded to the traditional sector.

On the other hand, according to figures from the year 2017, agricultural exports have
increased in the last eleven years by 120% at an average annual rate of 7.4%,
amounting to US $ 950 million. This is explained by the meteoric rise of non-
traditional exports at an annual growth rate of 12.5%, which allowed them to increase
sales abroad in the last eleven years by 270%, having invested the proportion of
traditional versus non-traditional exports to 32% and 68%, respectively.

The main reason why this remarkable performance is explained is in the

diversification of the agricultural exportable offer that in turn is due to a greater flow
of private investments in the sector.

The number of agricultural exporting companies has increased progressively in

recent years, highlighting the progress of products such as asparagus and peppers
and other products through business alliances, as in the case of grapes, avocados,
oranges, tangerines and Tangelos, have found new ways to venture into external
markets.
V. IMPORTANCE OF AGROEXPORTATION IN PERU

Undoubtedly, agroexports contribute to the integral development of Peru's

growth in all its sectors. Therefore, it’s necessary that national agencies and
institutions promote different ways of exporting the products produced in the
region, from technical assistance to management for exports, as it’s
undoubtedly one of the fundamental supports for the entry of foreign currency
into our country.

So, agricultural exports are important for Peru by the following points:

 Source of currency generation that the country needs to finance its

imports.

 They contribute to economic growth, creating industries and generating

employment.

 They allow to take advantage of the competitive advantages of the

countries.

 They allow technological innovation.

 They foster international competitiveness.

 Pretend to satisfy the need of companies from other countries with

greater numbers of inhabitants and better purchasing power.

 Allows international commercial presence.

 It allows to increase sales.

 The economic leaders of the political groups agree in their proposals to

increase exports with added value (non-traditional exports)
VI. PERU AND AGROEXPORTS IN THE GLOBAL ENVIRONMENT
 VII. CONCLUSIONS

Peru has established its agroexports in the world market being highly
competitive.
So the growth of productivity and competitiveness, the result of the joint work
of the public and private sector, can be summarized in the following points:

1) The great challenge lies in the atomization of agriculture: there are 2.3
million farmers in the country, of which about 90% have land of less than five
hectares. In this scenario, the State and the private sector work on associative
strategies for the development.

2) Through numerous projects, the agricultural frontier grows: infrastructure

initiatives such as Chavimochic III, Majes Siguas, Olmos, Chinecas, among
others, represent the irrigation of 400 thousand hectares and an investment
of 3250 million dollars. For small producers, meanwhile, the “MI RIEGO”
Program has been developed, with an investment of 500 million dollars for the
construction and improvement of irrigation works above 1,000 meters above
sea level. Finally, it’s important to improve road and transport infrastructure so
that products from the most remote areas reach the markets.
3) New markets: Peruvian products reach more than 2500 million consumers.
We currently export avocados to China and Japan, blueberries to Canada and
quinoa to India, while the public and private sectors work on access to new
territories in Asia and Oceania.

4) Information: it seeks to eliminate price distortion by speculation. We’ve

developed an information system that allows you to use your cell phone to
receive text messages with the price of the main crops in the wholesale
markets.

5) Only 15% of producers have access to credit and with interest rates around
35%: to change the equation, the Peruvian State has created the Agricultural
Bank, which grants soft loans at lower rates, generating a decrease in the rate
of agricultural loans in all financial institutions.

6) Technical assistance: it has been necessary to standardize quality

standards through a transfer of knowledge to the producer, in a scheme in
which the large company provides technical assistance to the small ones so
that they achieve the standards that allow the purchase of their production to
be commercialized.

In conclusion, the Peruvian export has brought many benefits for the growth
and development of the country and in the long term has been of great
importance in economic activity so that a great political response of
stabilization arose where it had to reduce inflation, the Expenses that were
made in an exaggerated way by internal and external security.

The importance of greater complexity was the generation of foreign exchange

to finance imports, allowing to take advantage of the competitiveness of the
countries, of a technological innovation, thus also giving the products that
gave better sales in the industrialized markets such as: mining product (gold,
silver, zinc, copper, iron), fishery product, oil and derivatives, agricultural
product etc. In the last decades agroindustrial foreign trade started with
process, changes and restructuring that defined the model of economic
development for the country. So the commercial policy consisted in that the
tariff rate must be reduced without leaving aside a cost to the protection of the
rates.
 VIII. BIBLIOGRAPHY
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http://www.minag.gob.pe/comercio_exterior/com_export.shtml.

http://www.minag.gob.pe/comercio_exterior/com_ambito.shtml

http://www.minag.gob.pe/comercio_exterior/com_mecanismos.shtml.

http://www.embajadachina.org.pe/esp/xwss/t135198.htm.

http://www.infonegocio.com.pe/data/evolucion/actual/mercado.html.

http://www.infonegocio.com.pe/data/evolucion/actual/analisisselec.htm