8/8/2019 Aw Citrus Fruits

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8/8/2019 Aw Citrus Fruits

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Growth in production and exports in Peru

Between 2000 and 2005, Peru experienced a yearly average

growth both in the volume of production of 9.3% and 3.1%

in cultivated lands. Out of the 12,3 30 hectares harvested for

tangerines and tangelos in 2005, nearly to 4,600 were export

oriented.

In the same period, the amount of citrus fruits exported by Peru

grew at an annual average rate of 98.3%, reaching 29.2 thousand

tonnes in 2005 (US$ 18 million).

During the autumn and winter, citrus fruits are the most sought fruits due to their highvitamin C content which strengthens the immune system to fight colds and infections.Thanks to their antioxidant power, citrus fruits contribute to slowing down cellularageing and protecting against a number of respiratory illnesses. Other benefits includepositively affecting cholesterol metabolism, prevention of skin diseases and its fibrecontent helps digestion and intestinal activity. Tangerines and tangelos are highlyvalued by worldwide consumers for their sweet pulp, aroma, delicacy and being lessacidic than other citrus fruits.

www.proinversion.gob.pe

Tangerines and tangelos which are citrus fruits of Asian origin

have found in Peru the ideal conditions for cultivation. As a result

of high quality and variety, Peruvian citrus fruit production is

enjoyed by many international markets. Satsumas, Okitsu, Owari,

Clementine and Nova are assortments of tangerines harvested in

Peru, while Minneola is the most popular variety of tangelo foundin the Andean country.

It is important to note the key role of the Peruvian producer’s

association Procitrus, which specializes in opening commercial

channels and promoting the use of the latest technology.

Procitrus also ensures that the production meets the high

quality parameters and health standards applicable in the main

international markets.

Expansion of citrus fruits throughout the world

- The citrus family, formed by tangerines and others (including

tangelos) is one of the 5 highest selling fresh fruits in the world

with an import volume close to 2.8 million tonnes. It i s also one

of the top 10 fruits produced worldwide with approximately 23

million tonnes.

- The worldwide import of tangerines and tangelos has increased

at an average rate of 4% from 1995 to 2004, only surpassed

by lemons. Oranges and family made up of bitter oranges and

grapefruit have also increased but not at such a prosperous rate.

- The six most important international markets for tangerines and

other citrus fruits are Germany (accounting for 12.8% of the total

imported worldwide in 2004), United K ingdom (11.5%), France

(11.2%), Russia (8.9%), Czech Republic (6%) and Holland (5.3%).

Currently, the principal consumers of Peruvian citrus f ruits are

Holland, Canada and the UK while other markets with great

potential are the Czech Republic and Russia.

Investment opportunities in Peru’s agroindustrial sector:

- High yield and quality – The performance of Peruvian citrus

fruits (an average of 21.6 tonnes/ha between 2003 - 2005)

is clearly above the worldwide average (12.3 tonnes/ha). In

addition the Peruvian producers who employ advanced

technology produce up to 60 tonnes/ha of Clementine, 80

tonnes/ha of Satsuma and 100 tonnes/ha of tangelos.

- Optimal farming conditions – The

Peruvian coast zone is devoted to citrus

production destined for export, mainly

because of the appropriate irrigation

infrastructure and optimal climate. Peru

can market their citrus fruits all year

round thanks to the excellent yield of 

“early”and “very early”varieties.

- Infrastructure development – New

irrigation infrastructure, the

modernization of ports, airports,

highways and telecommunications

around the main centres of agribusiness

activity provide the possibility of 

higher yields, quick distribution and

competitive production.

- High quality, low cost human

resources – Peru has low-cost skilled

human resources and investors can

benefit from excellent exchange

rates. The average daily earning,for an 8-hour working day, is US$

5.9 for a peasant, US$ 14.6 for a

certificated agriculturist and US$

8.8 for a field technician. Thus, the

labor costs in Peru are much more

competitive than in those of its

main competitors, such as Mexico

and Chile (cost of 2 to 1 compared

to Peru), South Africa (4 to 1), Israel

and France (9 to 1), Spain (11 to 1)

and the USA (16 to 1) .

- Trade Agreements with the

world’s major markets – Peru

enjoys preferential access to the

leading international markets.

Peru has concluded a Free TradeAgreement (FTA) with the USA; is a member of the Andean

Community; enjoys preferential treatment from the European

Union under the Generalized System of Preferences (GSP);

maintains economic complementation agreements with

most Latin American countries, including MERCOSUR, and it is

negotiating FTAs with Thailand and Singapore. Peru is also a

member of the Asia Pacific Economic Cooperation Forum (APEC).

In addition, the phytosanitary restrictions in the North American

market imposed on Peruvian citrus fruits were lifted on May

2005.

- Tax benefits – Exports from Peru are exempt from VAT, while

other tariffs on intermediate imports are fully refunded.

- Legal framework – Activities in agriculture and agribusiness

sector are fully backed by the guarantees established in the legal

framework of Peru.

1 Estimates based on ILO data