Peru Aims for $40 Billion in Agricultural Exports by 2040

Peru targets $40 billion in agricultural exports by 2040, aiming to surpass mining as the primary economic driver. Agriculture Minister Angel Manero highlights a 22% increase in exports in 2024, supported by expanded irrigation projects and new trade agreements with China. Proposed tax reforms are expected to further boost investment in the sector.

Peru aims to significantly increase its agricultural exports, targeting $40 billion by the year 2040. Agriculture Minister Angel Manero outlined that the sector experienced a 22% rise in agricultural exports in 2024, reaching approximately $12.5 billion. It is anticipated that the industry will continue to expand by an additional $2 billion annually through diversified agricultural products, particularly meat exports to China.

Minister Manero mentioned plans to start exporting beef and pork to China, following discussions between President Dina Boluarte and Chinese President Xi Jinping. This move is supported by a deepened free trade agreement with China, initially established in 2009. Additionally, there are efforts to export poultry in the future and expand reach into the United States and European markets.

To achieve these ambitious export targets, a large-scale irrigation project is in progress, expected to create 250,000 hectares of new farmland this year, with a long-term goal of 500,000 hectares by mid-2026. The government is also focusing on legal reforms to enhance land productivity on deforested areas while maintaining forest preservation.

Furthermore, a proposed change to the income tax rate for the agricultural sector from 29.5% to 15% could stimulate investment, with expectations of generating $1 billion in investment by the year 2025. Additional initiatives include expanding African palm oil plantations and strengthening local coffee and cacao production in the Amazon.

The Peruvian economy is historically driven by its mining sector, particularly copper exports. However, the government is recognizing the potential of agriculture as an equally significant economic contributor. With a robust increase in agricultural exports and targeted initiatives, Peru seeks to capitalize on global market demand, especially for meat products. The collaboration with China, a major import market, indicates a strategic push to expand agricultural trade.

In conclusion, Peru is strategically positioning itself to become a leading agricultural exporter by 2040, aiming for $40 billion in agricultural exports. With ongoing efforts to improve irrigation and tax reforms, as well as expanding market access, Peru intends to enhance its agricultural output while balancing forest conservation. These initiatives, along with a focus on meat exports, reflect a strong commitment to evolving its economic landscape.

Original Source: dunyanews.tv