• Like
International Commerce of Organic Products - Situation, Perspectives and Experiences of Peru
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

International Commerce of Organic Products - Situation, Perspectives and Experiences of Peru

  • 764 views
Published

Sectorial Report - February 2009

Sectorial Report - February 2009

Published in Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
764
On SlideShare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
14
Comments
0
Likes
1

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Sectorial Report February 2009WARNING The opinions, estimates, forecasts, statements and recommendations which figure in this document are a result of the research and studies made by the Coordination based on available public information. PROMPERU is not responsible for any mistake, omission or inaccuracy of these results. This report is referential and does not constitute a recommendation of investment. This document does not necessarily represent PROMPERU’s opinion. International Commerce of Organic Products Situation, Perspectives and Experiences of Peru F. Javier Martinez R. (jmartinez@promperu.gob.pe) Index World’s Organic Products Sales (e)1. International Context Sales Growth Year Billion US$ Rate2. Peruvian Situation 2009 53 12,77% 2.1 Generalities 2008 47 14,63% 2.2 Organic Production Area 2.3 Farmers 2007 41 17,14%3. Peruvian Exports of Organic Products 2006 35 16,67% 3.1 Commercial Trends 2005 30 11,11% 3.2 Destinies 2004 27 10,20% 3.3 Products 2003 24,54. International Customers (e) Estimates5. Methodology Source: Ecor, Internacional Trade Center – ITC, Organic Monitor6. Conclusions Elaborated by: PROMPERU __________ World’s Organic Products Market By market 2008 (e)1. International Context Japan 4% Others United States 3%The international commerce of organic products 30%follows its growing trend mainly in Germany,England, Sweden, Italy and France although theinflationary problems and the contraction of thedemand originated by the world-wide oil andfinancial (real state) crises. EuropeAlthough is hard to know the world’s negotiated 63% (e) Estimatesamount in organic products, it is estimated that Source: Ecor, Internacional Trade Center – ITC, Organic Monitorin the years 2006 and 2007 the sales reached Elaborated by: PROMPERUUS$ 35 and US$ 41 billions, respectively. The main reasons which have permitted theFor the following years 2008 and 2009 it is development of the organic products market are:estimated that this commerce will reach US$ 47and US$ 53 billions, respectively, with an By the demand:average growth of 14%. • A biggest uncertainty and concern about theWe have to point that mainly the demand for problems related with food:organic products comes from European o Contaminants (agrochemicals)countries, the United States and Japan which o Diseases (Avian influenza, Mad-Cowaltogether concentrate around 97% of the Disease)consumption. o Genetically modified organisms, etc • A bigger interest and conscience in ecologicalNevertheless, the organic products trend in other issues, resources sustainable management,regions such as the Southeast Asia and India are climate change, etc.becoming stronger really fast. • Social Responsibility. -1-Coordinación General de Información y Av. República de Panamá 3647 Negocios Electrónicos San Isidro PROMPERU: Promoting Business of T (51-1) 222 1 222 Exportation Sub Dirección de Inteligencia y F (51-1) 421 3179 ecom@promperu.gob.pe Prospectiva Comercial www.promperu.gob.pe
  • 2. Sectorial Report February 2009• Increase of the population and high acquisitive power consume sector. The organic production in Peru incorporates not• More interest in health and nutrition. only “environmental” (sustainability) criteria, it also considers relevant some others likeBy the supply: “biodiversity” (rainforest, friendly) and “social and economic responsibility” (fair trade); even• More availability of organic products in: Bio- other specific niches (Kosher, Halal) which supermarkets, supermarkets, conventional have facilitated the revenue to the markets. markets, discount stores, etc• More advertising and marketing of organic The results reached by Peru in organic products (Goverments campaigns). production are being “recognised”• Increasing use in food, cosmetic and textile internationally: industries. - 1st World’s exporter of Organic Coffee• Incorporation of biodiversity criteria - 2nd World’s exporter of Organic Cocoa (rainforest, friendly), social responsibility - 5th World’s exporter of Organic Banana (fair trade), and other specific niches (Kosher, - 7th Country with the largest number of Halal, etc.) farmers who are implementing organic• Higher prices: on average 20% more production systems. - Megadiverse Country, it possesses 84 from comparing to conventional products. 104 Life Zones at the World what permits itIn this context, the current uncertainty on the to have at the same time a high biological diversity.financial markets and the stagnation of theprincipal economies, it is expected a smallergrowth rate in the sales of organic products The strategic importance of the organic agriculture in Peru has created a state-private(13%) increasing the competition in the sector institutionality (MINAG, CONAPO, SENASA,and by stimulating the improvement of theefficiency of the productive processes and of MINCETUR, PROMPERU, MINAM, ANPE, RAE, RAAA, International Cooperation,exportation besides establishing strategic Farmer Guilds, companies) interested, involvedalliances that allow sharing the benefits of the and compromised in “consolidated it” as anmarket. alternative for the small producer.2. Peruvian Situation Today, Peru owns a “legal framework” (Law of Organic Production, Technical Regulation for2.1 Generalities Organic Products, State Competent Authority) to “control” and “guarantee” the fulfilment ofThe agriculture in Peru is leaded, mainly, by the organic production norms.small producers who, by their economic scale,do not use agrochemicals or pesticides, In Peru the organic production is “promoted”consequently their products fulfil the “basic” trough:requirements of the organic products market. - Its participation in the local market.Its ancestral agrarian tradition, from selection o BioFair, BioStoreand manage of diverse vegetables species andanimals has permitted to “domesticate” and o Ecological areas in supermarkets o Delivery service of organic products“develop” a wide diversity of products, lots of o Diffusion and journalistic articlesthem still native, facilitating staggered crops anda sustainable production all year long. - Its participation in the international market. o Biofach, Anuga - GermanyOn another hand, Peru possesses favourable o All Things Organic, Fancy Food - USAenvironmental conditions (temperature, o Trends and market reports.humidity, day light, etc) and valuable resources(phosphoric rock, island guano, etc) to“foment” and “develop” the organic 2.2 Organic Production Areaagriculture. -2-Coordinación General de Información y Av. República de Panamá 3647 Negocios Electrónicos San Isidro PROMPERU: Promoting Business of T (51-1) 222 1 222 Exportation Sub Dirección de Inteligencia y F (51-1) 421 3179 ecom@promperu.gob.pe Prospectiva Comercial www.promperu.gob.pe
  • 3. Sectorial Report February 2009The organic production is an activity which ispractised throughout all Peru. Peru: Exports of Organic Products By FOB value (e) 240,00 240In 2005, the cultivated area under the organicproduction principles reached 273,754 hectares. 200 194,22 161,32 160 Millones US$ Peru: Harvest Area with Organic Production By zones 120 2005 (d) (e) 100,85 80 69,87 44,37 33,23 40 21,90 9,80 15,16 6,14 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 (e) Estimates Source: ADUANAS Elaborated by: PROMPERU The main reason of this performance has been the development of strategic alliances, which has allowed the motivation of the international industry to consider in the labelling of the organic products, the origin Peru. This situation is allowing positioning the image of Peru on the international market as the principal supplier of organic products.(d) Includes Certified and in Transition hectares 3.2 Destinies(e) EstimatesFuente: SENASAElaborated by: SENASA The main market for Peruvian Exports of Organic Products is Europe (60.54%), followedIn 2007, it is estimated that this surface reached by America and Asia with 35.57% and 3.01%,275 thousand hectares representing respectively.approximately 15% of the country total. Peru: Exports of Organic Products By marketsThe organic certified area is 85% and the 2008 (e)transition area 15%. Asia Others 3,01% 0,88%2.3 Farmers Am erica 35,57%In 2008, the Peruvian farmers who implementthe organic products system in their farms arearound 35,000.3. Peruvian Exports of Organic Products Europe 60,54% (e) Estimates3.1 Commercial Trends Source: ADUANAS Elaborated by: PROMPERUThe Peruvian exports of organic products In Europe stood out: Germany, Holland,reached, in 2007 and 2008, US$ 161.32 and Belgium and Sweden which concentrateUS$ 194.22 millions, respectively. together 84.88% of the exports to this market.For the year 2009, it is expected that the exportswill reach US$ 240 millions maintaining itsaverage growth rate of 45% yearly. -3-Coordinación General de Información y Av. República de Panamá 3647 Negocios Electrónicos San Isidro PROMPERU: Promoting Business of T (51-1) 222 1 222 Exportation Sub Dirección de Inteligencia y F (51-1) 421 3179 ecom@promperu.gob.pe Prospectiva Comercial www.promperu.gob.pe
  • 4. Sectorial Report February 2009 Peru: Exports of Organic Products to Europe Maca By destinies Noni 2008 (e) Guatemala Tuna Countries % Cats clow Yacon Germany 30,04% Indonesia Cotton Holland 22,08% Singapore Maca Belgium 21,72% South Africa Cotton Thailand Cotton Sweden 11,04% Uruguay Cotton England 6,56% Yemen Cotton Others 8,56%(e) EstimatesSource: ADUANAS 3.3 ProductsElaborated by: PROMPERU The Peruvian agro-exporter basket of OrganicIn America, United States and Canada Products is positioning itself in the internationalconcentrate 93.87% of the exports and, and in market; however, it becomes necessary toAsia, Japan and Thailand, 98.82%. advance in the transformation chain of the product, presentations and packing in order to Peru: Exports of Organic Products to America commercialize not only raw materials or By destinies 2008 (e) ingredients but final products, ready for ist Countries % consumption. United States 82,67% Canada 11,20% This way, Coffee and Cocoa has made a big step because since the year 2009 there are going Mexico 3,71% to make the first exports of instant coffee and Chile 0,73% dark chocolate. Costa Rica 0,42% Others 1,27% Other products like Andean grains (quinoa,(e) Estimates amaranth) are advancing in order to takeSource: ADUANASElaborated by: PROMPERU advantage, of the campaigns of nutritive breakfast and, on the other hand, by developing Peru: Exports of Organic Products to Asia energy bars. By destinies 2008 (e) Countries % It is important to stand out how could the same Peruvian products merge between them: Japan 89,49% chocolates with quinoa, banana slices or Thailand 5,35% Brazilian nuts covered with chocolate, cookies Hong Kong 2,54% with sesame and amaranth, energy bars, etc to fulfil the tastes and preferences of the Korea 1,29% consumers. Singapore 0,83% Others 0,49% Even, the new products like Pisco, snacks, sacha(e) Estimates inchi, lucuma, etc have lots of opportunitiesSource: ADUANASElaborated by: PROMPERU given the present situation our gastronomy is going through.The new destinies that Peru had reached in theyear 2008 were: The exportable supply of Peruvian Organics Products is constituted, mainly, by: Fruits Countries Products banana, camu camu, lucuma, mango, etc Saudi Arabia Cotton Brazilian nuts, pecans United Arab Emirates Cotton Philippines Cotton Coffee and Cocoa Greece Cotton -4-Coordinación General de Información y Av. República de Panamá 3647 Negocios Electrónicos San Isidro PROMPERU: Promoting Business of T (51-1) 222 1 222 Exportation Sub Dirección de Inteligencia y F (51-1) 421 3179 ecom@promperu.gob.pe Prospectiva Comercial www.promperu.gob.pe
  • 5. Sectorial Report February 2009 Cereals, grains and stew The organic coffee exports are sent, mainly to sesame, amaranth, quinoa the United States and Germany. Together they concentrate almost 54% of the sales. Vegetables, tubers, roots and others Palm heart, panela, peppers, etc Peru: Organic Coffee Exports By destinies 2008 (d) (e) Aromatics, species and condiments Countries % ginger, aromatic herbs, etc Unired States 27,06% Germany 26,88% Natural Products maca, purple corn, yacon, etc Belgium 12,02% Sweden 11,31% Natural fibers and textile products Canada 6,05% cotton, alpaca Others 16,69%In 2008, the following organic products joined (d) Includes derivatives (e) Estimatesto the exporting basket: Source: ADUANAS Elaborated by: PROMPERU Products Countries The main destiny of the organic banana is Basil United States Holland concentrating 41.44% of the exports. Pumpkin Holland Cañihua Germany Note: A part of those exports is redistributed to other European countries. Germany United States Jojoba Holland Peru: Organic Banana Exports England By destinies Guatemala 2008 (d) (e) Noni Japan Countries % Norway Holland 41,44% Avocado England Australia United States 31,44% Trouth Belgium Belgium 9,37% Guatemala Tuna Norway Japan 9,13% Germany 6,11%Peru’s main exported organic product is coffee Others 2,52%concentrating 58.68% of the organic products (d) Includes derivativesexports. (e) Estimates Source: ADUANAS Elaborated by: PROMPERUIt is follow in importance by banana and cocoaconcentrating 21.42% and 9.56%, respectively. In this way, the main destiny of the organic cocoa is Switzerland concentrating 53.11% of Peru: Organic Products Exports By kind of product (d) the exports. 2008 (e) Cotton Mango Others Peru: Organic Cocoa Exports 5,05% By end markets 3,90% 1,38% 2008 (d) (e) Cocoa 9,56% Countries % Belgium 37,61% Holland 25,42% United States 14,43% Coffee Italy 9,89% Banana 58,68% 21,42% Germany 3,48%(d) Includes derivatives(e) Estimates Others 9,17%Source: ADUANAS (d) Includes derivativesElaborated by: PROMPERU (e) Estimates Source: ADUANAS -5-Coordinación General de Información y Av. República de Panamá 3647 Negocios Electrónicos San Isidro PROMPERU: Promoting Business of T (51-1) 222 1 222 Exportation Sub Dirección de Inteligencia y F (51-1) 421 3179 ecom@promperu.gob.pe Prospectiva Comercial www.promperu.gob.pe
  • 6. Sectorial Report February 2009Elaborated by: PROMPERU Finally, the resultant information is contrasted with farmer guilds at a national level and withNote: The exports of organic Cocoa to Belgium are onlytemporarily, the final destination is Switzerland. the main producer/exporter companies.4. International Customers 6. ConclusionsAccording to the available information for food, - The smaller growth rate in the sales ofPeru’s international customers of organic organic products (13%) will increase theproducts are mainly “wholesale” providers, competition in the sector, stimulating thespecialized in the commercialization of certain improvement of the efficiency of theproducts. productive processes and of exportation besides establishing strategic alliances that Peru: Organic Products Exports allow sharing the benefits of the market. By Customers 2008 (d) (e) - The main reason of the Peruvian performance of organic products has been the development of strategic alliances, which has allowed the motivation of the international industry to consider in the labelling of the organic products, the origin Peru. - The new organic products in the Peruvian exporter basket are: basil, pumpkin, cañihua, jojoba, noni, avocado, trouth and tuna.(d) includes derivatives(e) EstimatesSource: Vernal Consultores - The new destinies that Peru had reached withElaborated by: PROMPERU their organic products are: Saudi Arabia, United Arab Emirates, Philippines, Greece,It is necessary to highlight the effort of the Guatemala, Indonesia, Singapore, Southexporting sector to attend directly the “retail” Africa, Thailand, Uruguay and Yemen.segment, where the strategic alliances haveplayed a determinant role to commercialize not - The international customers of organiconly fruits, coffee or cocoa but also natural products of Peru are principally “wholesale”products. providers, specializ in the commercialization of certain products.5. MethodologyFor the development of this report, the Peruvianexport statistics are based in the information ofevery export operation realised by all thecompanies (DUA).Then, the export operations of organic productshave been classified. -6-Coordinación General de Información y Av. República de Panamá 3647 Negocios Electrónicos San Isidro PROMPERU: Promoting Business of T (51-1) 222 1 222 Exportation Sub Dirección de Inteligencia y F (51-1) 421 3179 ecom@promperu.gob.pe Prospectiva Comercial www.promperu.gob.pe