How do agribusinesses boost the economy in Peru? | Business | Economy | Agriculture | Agribusiness | Peru | economy

The Peru agriculture The epidemic situation was successfully overcome. According to him Ministry of Agricultural Development and Irrigation (Midagri), the total value added of the agricultural sector – in the first quarter of 2023- totaled S/ 8,754 million (-0.2% compared to the equivalent period of 2022). Of this figure, most correspond to the agricultural subsector, which contributed a total of S/ 5,167 million (59% of the total), an increase of 0.3% compared to the same period in 2022.

In this sense, agribusiness in Peru has proven to be a fundamental pillar of the country’s economy, exemplifying a significant and sustained dynamism. “The agricultural sector not only contributes to the financial health of the country, representing approximately 15% of the Gross Domestic Product (GDP), but also plays an important role in creating employment. Even more relevant in the rural areas of the country,” explains Ernesto Gallo, Professor of the Master’s Degree in Agribusiness at the PAD – School of Management of the University of Piura.

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One of the reasons behind the success of agribusiness in Peru is the export of high intrinsic value products known as PAAVI (Productos Agrícolas de Alto Valor Intrinsico), which include blueberries, grapes, avocados, asparagus, mangoes, tangerines and organic bananas. . According to Gallo, this strategy has promoted a positive agricultural trade balance and created a series of multiplier effects in various sectors such as transport, services and inputs.

“The labor-intensive PAAVI crops have allowed us to create jobs during harvest seasons in various parts of the country, so there should be trained professionals in all agro-industrial processes. The sector,” he says.

Regarding the future development of the sector, Peru is in an enviable position in the global market due to its leadership in PAAVI production. While some key markets such as China and the US face sanitary barriers, there are opportunities to diversify and expand exports of high-intrinsic-value products to Europe and elsewhere.

“The planned entry of 40,000 hectares of irrigated land promises to increase supply, making it imperative to explore diversification through a business intelligence system. Exports of blueberries, grapes and other PAAVI stand out among the products that have had a significant impact on the sector,” affirms the author.

These products not only create a huge media impact by becoming export leaders, but also boost the local economy by harnessing labor and fostering multiplier effects throughout the value chain. The regions of La Libertad, Piura and Lima have shown significant growth in the agribusiness sector in recent times, and these regions are expected to continue to thrive in the future.

“Agribusiness encompasses a wide range of activities in the value chain, from inputs and production to logistics and marketing. The sector also includes support organizations such as universities, NGOs, banks and government, which collaborate to promote its sustainable development. The growing sophistication of the sector, from technical operations to management And there is a need for a skilled and trained workforce in various fields ranging from management to management,” Gallo concluded.

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