Peru’s Agricultural Ambitions: A $40 Billion Export Vision for 2040

Peru’s agricultural sector is poised for remarkable growth, according to Agriculture Minister Ángel Manero. In a recent interview with Reuters, Manero unveiled ambitious plans to boost agricultural exports to $40 billion by 2040.

This projection represents a significant increase from the current export value of $12.5 billion in 2024. The country’s agricultural exports saw a 22% surge in 2024 compared to the previous year.

Manero expects the industry to grow by an additional $2 billion annually moving forward. This steady growth could potentially position agriculture as Peru’s primary economic driver by 2050, surpassing the mining sector.

Peru, currently the world’s second-largest copper exporter, is diversifying its economic portfolio. The government aims to expand its agricultural reach by entering new markets and introducing new products.

Manero announced plans to begin exporting beef, pork, and chicken this year, with China as a key target market. The groundwork for these exports was laid during a state visit in June.

During the visit, President Dina Boluarte discussed the matter with Chinese President Xi Jinping. Peru and China recently signed an agreement deepening their Free Trade Agreement, originally established in 2009.

Peru’s Agricultural Ambitions

To achieve these lofty goals, Peru is implementing several strategic initiatives. Large-scale irrigation projects along the coast will add 250,000 hectares of new agricultural land this year. The government aims to increase this to 500,000 hectares by June 2026.

Recent changes to forestry laws aim to facilitate property titles and increase productivity on 12 million hectares of deforested land. Manero emphasized the importance of sustainable development, stating, “We want to maintain our 67 million hectares of forests.”

The government is also focusing on expanding specific crops. African palm oil plantations could triple from 100,000 to 300,000 hectares. Additionally, coffee and cocoa plantations in Amazonian regions will be strengthened.

To attract investment, a new agrarian law is expected to be approved this year. This law will reduce the income tax rate from 29.5% to 15%, potentially boosting sector investment to $1 billion by 2025.

Peru’s agricultural ambitions extend beyond China. While the United States remains Peru’s largest agricultural export market, followed by Europe, the country aims to finalize a free trade agreement with India soon and expand into Southeast Asian markets.

As Peru sets its sights on becoming an agricultural powerhouse, the world watches with interest. The success of these initiatives could reshape Peru’s economic landscape and its role in global agriculture.