A recently published research from Business Monitor International (BMI) states that the outlook for Peru's agricultural sector remains positive.
According to “Peru Agribusiness Report Q4 2014,” the livestock sector is very dynamic, and investment into the country's ethanol sector is boosting sugar production.
On the other hand, export crops such as coffee and cocoa are hampered by a lack of infrastructure and investment, but there is scope for strong growth in both, particularly as Peru is becoming increasingly recognized for organic and speciality crops.
Experts caution that a lack of profitability threatens to weaken the dairy sector; this could be further exacerbated by the entry into force of the free trade agreement with the European Union.
Furthermore, the country is set to benefit from cheaper food imports owing to the lower price of grains as well as the weakness in the Argentine peso, from where it imports a great deal of its grain.
The report also foresees the 2014 real GDP growth rate at 4.8%, down from 5.0% in 2013; forecast is expected to grow annually by 5.0% on average between 2013 and 2018.
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Published: 10/27/2014