Required Report - public distribution

**Date:** 4/11/2006

**GAIN Report Number:** PE6005

PE6005

**Peru**

**HRI Food Service Sector**

**Report**

**2006**

**Approved by:**

![](media/image1.wmf)Melinda D. Sallyards

U.S. Embassy

**Prepared by:**

Violeta Gutierrez

**Report Highlights:**

In Peru, the food service sector is estimated at \$184 million, 37
percent of which corresponds to food imports. Growth is steady at five
percent in the last three years. Trade opportunities for U.S. food
products will effectively increase after the implementation of the Trade
Promotion Agreement (TPA) between the United States and Peru, which is
expected for early 2007. Products for the food service that will be
benefited from the TPA include food ingredients, fruits, cheeses,
processed fruits and vegetables, meats and specialties.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Lima \[PE1\]

\[PE\]

**Table of Contents**

Section I. Market Summary *[Page 3 of 22]{.underline}*

Section II. Road Map for Market Entry *[Page 4 of 22]{.underline}*

A.  Entry Strategy

B.  Market Structure

C.  Sub-Sector Profiles

> C.1. Hotels
>
> C.2. Restaurants
>
> C.3. Institutional Contractors

Section III. Competition *[Page 14 of 22]{.underline}*

Section IV. Best Product Prospects *[Page 16 of 22]{.underline}*

A.  Products present in the market which have good sales potential

B.  Products not present in significant quantities, but which have good
    sales potential

C.  Products not present because they face significant barriers

    **Section I. Market Summary**

In 2004, food service sales represented \$184 million approximately,
considering the formal sector that is measurable. More than 60 percent
of this amount corresponds to high-end food service. Growth remains
steady at five percent in the last three years. In 2005, total food
service imports were estimated at \$68 million, 37 percent of total food
service sales.

**Estimated Food Service Sales by Sub-sector (\$ million)**

+--------------------------------+------+------+------+------+------+
| **Sub-Sector**                 | Food |      |      |      |      |
|                                | S    |      |      |      |      |
|                                | ales |      |      |      |      |
|                                | (\$  |      |      |      |      |
|                                | mill |      |      |      |      |
|                                | ion) |      |      |      |      |
+--------------------------------+------+------+------+------+------+
|                                | **20 | **20 | **20 | **20 | **20 |
|                                | 01** | 02** | 03** | 04** | 05** |
+--------------------------------+------+------+------+------+------+
| Hotels                         | 33   | 35   | 37   | 39   | 40   |
|                                |      |      |      |      |      |
| *Restaurants and catering*     |      |      |      |      |      |
+--------------------------------+------+------+------+------+------+
| Restaurants                    | 97   | 102  | 107  | 112  | 119  |
|                                |      |      |      |      |      |
| *Fast food, family style,      |      |      |      |      |      |
| coffee shops*                  |      |      |      |      |      |
+--------------------------------+------+------+------+------+------+
| Institutional contractors      | 20   | 21   | 22   | 23   | 25   |
|                                |      |      |      |      |      |
| *Caterers*                     |      |      |      |      |      |
+--------------------------------+------+------+------+------+------+
| ####### Total                  | **1  | **1  | **1  | **1  | **1  |
|                                | 50** | 58** | 66** | 74** | 84** |
+--------------------------------+------+------+------+------+------+

![](media/image2.wmf){width="4.020833333333333in" height="3.0in"}

Source: Peruvian newspapers El Comercio and Gestion.

The niche market for U.S. exporters in this sector include high-end
hotels and restaurants, family style restaurants, fast food chains and
coffee shops. Fast food chains present the fastest annual growth with
approximately eight percent in the last five years.

Trade opportunities for U.S. food products will effectively increase
after the implementation of the Trade Promotion Agreement (TPA) between
the United States and Peru, which is expected for early 2007. Products
for the food service that will be benefited from the TPA with lower or
duty free tariffs include food ingredients, fruits, cheeses, processed
fruits and vegetables, meats and specialties.

Lima is the major market for consumer-oriented foods with almost one
third of total population and more than 60 percent of the national
income. High and middle-income consumers, currently the main market for
U.S. food sales, reach around 1.6 million inhabitants and have a monthly
family income on average of \$1,000. Of this income, 32 percent is spent
on food (12 percent on eating outside home).

Social factors that affect the food service market include the growth of
tourism (seven percent per year), urban expansion, more participation of
woman in the workforce (38 percent) and increasing percentage of young
population that demand eating fast food or prepared food outside home.

# Advantages and Challenges of U.S. products to Peru's Food Service Sector

+-----------------------------------+-----------------------------------+
| **Advantages**                    | **Challenges**                    |
+-----------------------------------+-----------------------------------+
| -   Expected implementation of    | -   Peruvians prefer meals based  |
|     the TPA for early 2007.       |     on fresh products.            |
|                                   |                                   |
| -   Economic stability.           | -   European specialties are      |
|                                   |     preferred due to higher       |
| -   Appreciation for U.S. food    |     quality perception.           |
|     quality and culture.          |                                   |
|                                   | -   Low purchasing power; 76      |
| -   Fast food chains are          |     percent of Peruvian           |
|     expanding in Lima suburbs and |     population are low-income     |
|     in major cities (Arequipa,    |     consumers.                    |
|     Trujillo, Chiclayo and        |                                   |
|     Piura).                       | -   Peruvian food is tasty. U.S.  |
|                                   |     exporters need to incorporate |
| -   Peru's government fund to     |     food ingredients in           |
|     promote tourism.              |     international and traditional |
|                                   |     menus.                        |
| -   High-end hotels are           |                                   |
|     associated with international | -   Limited infrastructure and    |
|     chains and foreign operators  |     low quality service           |
|     to expand and assure high     |     discourage longer stays of    |
|     occupancy levels.             |     international tourists.       |
+-----------------------------------+-----------------------------------+

**Section II. Road Map for Market Entry**

######## Entry Strategy

-   U.S. exporters can approach the Peruvian food service market through
    a large importer, wholesaler/distributor or a specialized importer.
    Most food service companies buy imported goods from local
    intermediaries.

-   Personal visits are highly recommended. The local partner should be
    well known by the U.S. company before any permanent contractual
    arrangement is made.

-   The local company should be able to provide updated information on
    market consumer trends, current market development and trade
    business practices.

-   In addition, it is recommended that U.S. exporters work with chefs
    and local importers in performing innovative marketing activities in
    the high-end food service sector to:

```{=html}
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-   Incorporate U.S. food ingredients in local and international menus.

-   Break down local preference for European specialties. U.S. food
    products strength in this market is that they are considered to be
    of superior quality, taste and presentation.

######## Market Structure

-   Food service sources are mainly domestic due to strong local
    preferences for fresh food products at lower prices.

-   Food service importers are also suppliers for the retail market,
    which represents in most of the cases more than 70 percent of their
    profits.

-   Almost all food service businesses purchase through intermediaries
    (97 percent). However, high-end restaurants and hotels import
    equipment directly.

-   International franchises (KFC, Pizza Hut, Burger King, Mc Donalds)
    and the local Bembos reach enough volumes to import some of their
    food ingredients directly.

######## Sub-sector Profiles

1.  **Hotels**

**Number of Hotels in Peru by Categories in 2004**

  ------------------- ----------- ------------ ------------ ------------ ---------------
  **Hotel Category**  **Number of **Number of  **Number of  **Outlet     
                      Outlets**   Rooms**      Beds**       Location**   

                                                            **Lima**     **Provinces**

  Five-stars          25          3,151        6,133        20           5

  Four-stars          22          1,584        2,999        16           6

  Three stars         473         13,409       25,802       81           392

  Lodges              43          767          1,914        6            37

  Two-stars           890         17,557       31,604       182          708

  One-stars           453         8,496        14,852       125          328

  **Total**           **1,906**   **44,964**   **83,304**   **430**      **1,476**
  ------------------- ----------- ------------ ------------ ------------ ---------------

Source: Ministry of Foreign Commerce and Tourism (Mincetur)

-   The niche market for U.S. exporters in this sub-sector is high-end
    hotels, mainly four and five-stars, that use higher proportions of
    imported food products.

```{=html}
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```
-   From all food served in hotels, food imports represent approximately
    12 percent on average.

```{=html}
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```
-   Marketing efforts in this sub-sector should target activities to
    introduce U.S. food ingredients and U.S. gourmet products in
    high-end hotel restaurants of local and international cuisine.

-   Major high-end hotels are located in Lima (76 percent), the center
    of business activities.

-   Along the 90's decade, hotel capacity in Lima doubled, mainly in
    four and five star hotels. These hotels benefit from the sales
    forces of tour-operators to assure high levels of occupancy (65
    percent in average).

-   Many hotels are developing strategic alliances with international
    hotel chains or important local groups, intending to count on a
    hotel facility in every important tourist destiny in Peru (Lima,
    Cuzco, Arequipa and Puno).

-   International tourist arrivals have grown seven percent annually in
    the last five years. In 2004, 1.3 million tourists visited Peru
    representing \$1 billion, 2.5 percent of the GDP. In addition, two
    million local visitors traveled within the country, creating demand
    for food services.

-   In 2004, most of the tourists were from Chile (27 percent), the
    United States (22 percent) and the European Union (11 percent,
    mainly from Spain, Holland, France and England).

-   Peru's government is promoting tourism in major countries. In 2005,
    Peru was declared official destination for China. Peru hopes to
    boost the number of Chinese tourists from the current 4,000 to
    40,000 per year.

![](media/image6.wmf){width="5.010416666666667in"
height="3.0416666666666665in"}

> Source: Mincetur

-   According to Mincetur, international visitors has the following
    profile:

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```
-   Tourists stay in Peru for 15 days, spending in food and beverages an
    average of \$26.

-   Around 70 percent are aged between 25 to 54 years old, being 32
    percent of this group between 25 to 34 years old.

-   Male visitors constitute 66 percent of the total.

-   Purpose of visit: vacations (61 percent), business (19 percent),
    visit family or friends (10 percent), attending seminars (4
    percent).

-   Types of tourism: urban (93 percent), cultural (70 percent),
    ecological (47 percent), adventure (36 percent, for example,
    trekking), live cultures (32 percent) and thermal bathing (22
    percent). Tourists perform one or more of these types of tourism
    during their stay.

-   Restaurant preferences: Peruvian style (79 percent), seafood (41
    percent) and meat (37 percent). Tourists visit one or more types of
    restaurants during their stop.

-   Accommodations: for vacations, three star hotels (80 percent); for
    business, five star hotels (44 percent) and four-star hotels (31
    percent); for seminar attendance, five-star hotels (30 percent),
    four-star hotels (29 percent) and three-star hotels (34 percent).

-   Visitor's social-economic profile: 82 percent own a professional
    degree and 68 percent a full-time job. On their family income, 24
    percent of the visitors earn between \$15 to 35 thousand and 21
    percent, \$35 to 60 thousand annually.

**Major Hotel Profiles (2004)**

+----------------------------------+-------+--------+-----------------+
| **Name of Hotel**                | **No. | *      | **City**        |
|                                  | of    | *Total |                 |
|                                  | Outl  | Sales  |                 |
|                                  | ets** | (      |                 |
|                                  |       | \$mill |                 |
|                                  |       | ion)** |                 |
+----------------------------------+-------+--------+-----------------+
| J.W. Marriott                    | 1     | 16.49  | Lima            |
|                                  |       |        |                 |
| Inversiones La Rioja S.A. ^1/^   |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Country Club Lima Hotel          | 3     | 14.42  | Lima, Piura,    |
|                                  |       |        | Tarma           |
| Los Portales Hotels              |       |        |                 |
|                                  |       |        |                 |
| Los Portales S.A. ^2/^           |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Libertador Hotels                | 11    | 12.63  | Lima, Trujillo, |
|                                  |       |        | Cuzco, Puno     |
| Inversiones Nacionales de        |       |        |                 |
| Turismo S.A.                     |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Sonesta Posadas del Inca         | 6     | 9.74   | Lima, Arequipa, |
|                                  |       |        | Cuzco           |
| Inmobiliaria de Turismo S.A.     |       |        |                 |
| ^1/^                             |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Swissotel                        | 1     | 9.59   | Lima            |
|                                  |       |        |                 |
| Hotelera Costa del Pacífico S.A. |       |        |                 |
| ^1/^                             |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Miraflores Park                  | 3     | 6.04   | Lima, Cuzco     |
|                                  |       |        |                 |
| Orient-Express Peru S.A.         |       |        |                 |
|                                  |       |        |                 |
| Inversiones Malecon de la        |       |        |                 |
| Reserva S.A. ^1/^                |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Los Delfines Summit Hotel &      | 1     | 5.97   | Lima            |
| Casino                           |       |        |                 |
|                                  |       |        |                 |
| Hoteles Sheraton del Peru S.A.   |       |        |                 |
| ^1/^                             |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Sheraton Lima Hotel & Casino     | 1     | 4.57   | Lima            |
|                                  |       |        |                 |
| Hoteles Sheraton del Peru S.A.   |       |        |                 |
| ^1/^                             |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Melia Hotel                      | 1     | 4.14   | Lima            |
|                                  |       |        |                 |
| Corporacion Hotelera Metor S.A.  |       |        |                 |
| ^1/^                             |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Apart Hotel El Golf Los Incas    | 1     | 3.90   | Lima            |
|                                  |       |        |                 |
| Suites El Golf Los Incas S.A.    |       |        |                 |
| ^3/^                             |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Maria Angola                     | 1     | 3.90   | Lima            |
|                                  |       |        |                 |
| Hotel La Paz S.A. ^3/^           |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Doubletree El Pardo Hotel        | 1     | 3.25   | Lima            |
|                                  |       |        |                 |
| Inversiones Brade S.A. ^1/^      |       |        |                 |
+----------------------------------+-------+--------+-----------------+

+----------------------------------+-------+--------+-----------------+
| **Name of Hotel**                | **No. | *      | **City**        |
|                                  | of    | *Total |                 |
|                                  | Outl  | Sales  |                 |
|                                  | ets** | (      |                 |
|                                  |       | \$mill |                 |
|                                  |       | ion)** |                 |
+----------------------------------+-------+--------+-----------------+
| Inka Terra Hotels                | 3     | 2.87   | Cuzco,          |
|                                  |       |        | Tambopata       |
| Inka Terra Peru S.A.C. ^1/^      |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Las Dunas Sun Resort             | 1     | 2.99   | Ica             |
|                                  |       |        |                 |
| Inversiones en Turismo S.A.      |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Hotel & Suites Las Americas      | 4     | 2.79   | Lima            |
|                                  |       |        |                 |
| La Caja, Servicio de Hoteles     |       |        |                 |
| S.A.C. ^1/^                      |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| La Hacienda Hotel (Best Western) | 1     | 2.6    | Lima            |
|                                  |       |        |                 |
| Hotel Restaurant La Hacienda     |       |        |                 |
| S.A. ^3/^                        |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Hotel Jose Antonio               | 3     | 2.39   | Lima, Cuzco     |
|                                  |       |        |                 |
| Cartir Peru S.R.L. ^1/^          |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Hotel Bruce                      | 1     | 2.35   | Lima            |
|                                  |       |        |                 |
| Bruce Grupo Diversion S.A.C.     |       |        |                 |
| ^1/^                             |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Hotel Paracas                    | 1     | 1.96   | Ica             |
|                                  |       |        |                 |
| Compañia Hotel Paracas S.A. ^1/^ |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Novotel                          | 1     | 1.94   | Cuzco           |
|                                  |       |        |                 |
| Corporacion Hotelera del Cuzco   |       |        |                 |
| S.A. ^1/^                        |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Prince Hotel Business & Spa      | 1     | 1.75   | Lima            |
|                                  |       |        |                 |
| Figtur S.A. ^1/^                 |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Costa del Sol Hotel              | 4     | 1.68   | Tumbes, Piura,  |
|                                  |       |        | Cajamarca,      |
| Costa del Sol S.A.               |       |        | Chiclayo        |
|                                  |       |        |                 |
| Turismo Costa del Sol S.A. ^1/^  |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Royal Park Hotel & Suites        | 2     | 1.65   | Lima            |
| (Sofitel)                        |       |        |                 |
|                                  |       |        |                 |
| Corporacion Hotelera Camino Real |       |        |                 |
| S.A. ^1/^                        |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Plaza del Bosque Apart Hotel     | 1     | 1.66   | Lima            |
|                                  |       |        |                 |
| Hotelera del Pilar S.A.C. ^1/^   |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| San Agustin Hotel                | 5     | 1.63   | Lima, Cuzco     |
|                                  |       |        |                 |
| Teguise Turistica Peru S.A. ^1/^ |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Los Tallanes Hotel & Suites      | 1     | 1.42   | Lima            |
|                                  |       |        |                 |
| Turismo Los Algarrobos S.A. ^1/^ |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Hotel Silmar                     | 1     | 1.09   | Ica             |
|                                  |       |        |                 |
| Hotel Silmar S.A.C. ^1/^         |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| El Condado Suites                | 2     | 0.94   | Lima            |
|                                  |       |        |                 |
| Turismo Costa Sur S.A.           |       |        |                 |
+----------------------------------+-------+--------+-----------------+
| Apart Hotel Las Palmeras de San  | 1     | 0.76   | Lima            |
| Isidro                           |       |        |                 |
|                                  |       |        |                 |
| Consorcio Hotelero Las Palmeras  |       |        |                 |
| S.A.C. ^1/^                      |       |        |                 |
+----------------------------------+-------+--------+-----------------+

*Notes:*

*1/ Total sales 2003.*

*2/ Total value including other than food service businesses.*

*3/ Estimated values 2003.*

Source: The 10,000 Major Companies in Peru

**2. Restaurants**

**Estimated Number of Major Restaurants in Lima (2004)**

  ---------------------------------- ------------------------------------
  **Category**                       **Number of Outlets**

  Five Forks                         40

  Four Forks                         24

  **Total**                          **64**
  ---------------------------------- ------------------------------------

-   Total restaurants in Peru can be divided between the following
    categories:

    ![](media/image7.wmf){width="4.166666666666667in" height="2.6875in"}

    Source: Gestion Newspaper

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-   The U.S. niche market is constituted by high-end restaurants, some
    family style restaurants, coffee shops and fast food chains.

-   High-end restaurants purchase imported products from wholesalers,
    distributors or retailers.

-   These restaurants commonly purchase between 10 to 20 percent of
    imported food products, usually in food ingredients (sauces, meats,
    processed fruit and vegetables, cheeses), specialties (pork
    products), wine and liquors.

```{=html}
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```
-   There is a growing trend to offer tourists a variety of dishes made
    from Andean products called the "Novoandina" cuisine.

-   Bembos, a local food franchise, has grown 10 percent annually in the
    last five years. Bembos is positioned as the local taste hamburger
    of high quality. This franchise uses imported food ingredients to
    keep a standardized product. With 28 outlets, Bembos reaches \$14
    million, half of the total annual hamburger market.

-   Major food franchises are expanding to middle and low-purchasing
    areas in the suburbs of Lima and capitals of provinces.

```{=html}
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```
-   The fast food chains purchase local products such as chicken and
    processed bread. They import mainly meat, French fries and sauces
    from the United States, Argentina and Chile.

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```
-   Broiled chicken restaurants, locally called "pollerías", reach
    around 1,100 points of sales. Annual growth is around 10 to 15
    percent. Major "pollerías" account for seven food chains (120
    outlets). These chains compete directly with supermarkets (30
    percent of market share). Delivery accounts for 35 percent of their
    sales. Their target market is families and office employees.
    Purchases of chicken and French fries, the two most important
    ingredients, are mainly local but are good prospects for future U.S.
    exports.

-   Coffee shops use mainly local products in their menus but have
    strong potential to increase supplies of U.S. liquors.

**Major Restaurant Profile (2004)**

+------------------------------------+-------------+-------------------+
| **Name of Caterer**                | **No. of    | **Food Sales      |
|                                    | Outlets**   | (\$million)**     |
+------------------------------------+-------------+-------------------+
| La Rosa Nautica                    | 1           | 2.88              |
|                                    |             |                   |
| La Rosa Nautica S.A.               |             |                   |
+------------------------------------+-------------+-------------------+
| La Carreta                         | 2           | 2.67              |
|                                    |             |                   |
| Inversiones La Carreta S.A.        |             |                   |
+------------------------------------+-------------+-------------------+
| Backcow                            | 1           | 2.37              |
|                                    |             |                   |
| Mealcorp S.A.                      |             |                   |
+------------------------------------+-------------+-------------------+
| La Huaca                           | 1           | 1.29              |
|                                    |             |                   |
| Restaurant Huaca Pucllana S.A.C.   |             |                   |
| ^1/^                               |             |                   |
+------------------------------------+-------------+-------------------+
| Astrid y Gaston                    | 1           | 1.09              |
|                                    |             |                   |
| Astrid & Gaston S.R.L.             |             |                   |
+------------------------------------+-------------+-------------------+
| Restaurant Jose Antonio            | 2           | 1.06              |
|                                    |             |                   |
| Jose Antonio S.R.L. ^1/^           |             |                   |
+------------------------------------+-------------+-------------------+
| Chifa Lung Fung                    | 1           | 1.03              |
|                                    |             |                   |
| Restaurant Chifa Lung Fung S.A.    |             |                   |
| ^1/^                               |             |                   |
+------------------------------------+-------------+-------------------+
| Restaurant La Gloria               | 1           | 1.00              |
+------------------------------------+-------------+-------------------+
| Chifa Royal                        | 1           | 0.76              |
|                                    |             |                   |
| Restaurante Royal S.A. ^1/^        |             |                   |
+------------------------------------+-------------+-------------------+
| Restaurant Rafael                  | 1           | 0.71              |
|                                    |             |                   |
| Bridget S.A.C. ^1/^                |             |                   |
+------------------------------------+-------------+-------------------+
| Restaurant La Costa Verde          | 1           | 0.98              |
|                                    |             |                   |
| La Costa Verde S.A.C. ^2/^         |             |                   |
+------------------------------------+-------------+-------------------+

*Note: 1/ Estimated values for 2003.*

Source: The 10,000 Major Companies in Peru

**Family Style Restaurants and Coffee Shops Profiles (2004)**

+-------------------------------------+--------+-----------+----------+
| **Name of Restaurant**              | **No.  | **Food    | **City** |
|                                     | of     | Sales     |          |
|                                     | Out    | (\$m      |          |
|                                     | lets** | illion)** |          |
+-------------------------------------+--------+-----------+----------+
| Bohemia Café y Mas                  | 3      | 2.35      | Lima,    |
|                                     |        |           | Cuzco    |
| Bohemia Corp S.A. ^1/^              |        |           |          |
+-------------------------------------+--------+-----------+----------+
| Mangos ^1/^                         | 2      | 2.30      | Lima     |
+-------------------------------------+--------+-----------+----------+
| Quattro D                           | 2      | 2.13      | Lima     |
|                                     |        |           |          |
| Quattro D S.A.                      |        |           |          |
+-------------------------------------+--------+-----------+----------+
| Pasteleria San Antonio              | 4      | 2.56      | Lima     |
|                                     |        |           |          |
| Pasteleria San Antonio S.A.         |        | 1.59      |          |
|                                     |        |           |          |
| Pasteleria San Antonio de Angamos   |        |           |          |
| S.A.                                |        |           |          |
+-------------------------------------+--------+-----------+----------+
| Antica                              | 3      | 0.82      | Lima     |
|                                     |        |           |          |
| Antica Pizzeria S.A.C.              |        |           |          |
+-------------------------------------+--------+-----------+----------+
| Chili's                             | 2      | 2.69      | Lima     |
|                                     |        |           |          |
| Cindel S.A.                         |        |           |          |
+-------------------------------------+--------+-----------+----------+
| Tony Roma's                         | 2      | 1.75      | Lima     |
|                                     |        |           |          |
| Inversiones La Floresta S.A.        |        |           |          |
+-------------------------------------+--------+-----------+----------+

*Note: 1/ Estimated values for 2003.*

Source: The 10,000 Major Companies in Peru

**Fast Food Chain profiles (2005)**

+---------------+-------+--------+---------+--------+-------+---------+
| **Name of     | **No. | **Food | *       | **Im   | **C   | **Pur   |
| Restaurant**  | of    | Sales  | *Direct | ported | ity** | chasing |
|               | Outl  | (      | Food    | Pr     |       | Agent   |
|               | ets** | \$mill | Imports | oducts |       | for     |
|               |       | ion)** | (\$mil  | (%)**  |       | im      |
|               |       |        | lion)** |        |       | ports** |
+---------------+-------+--------+---------+--------+-------+---------+
| Kentucky      | 30    | 18.57  | 1.50    | 17     | Lima, | Direct  |
| Fried Chicken |       |        |         |        | Truj  |         |
|               |       |        |         |        | illo, |         |
| Delosi S.A.   |       |        |         |        | Are   |         |
|               |       |        |         |        | quipa |         |
+---------------+-------+--------+---------+--------+-------+---------+
| Burger King   | 12    | 16.50  | 0.79    | 21     | Lima, | Direct  |
|               |       |        |         |        | Truj  |         |
| Pizza Hut     | 15    |        |         |        | illo, |         |
|               |       |        |         |        | Are   |         |
| Sigdelo S.A.  |       |        |         |        | quipa |         |
+---------------+-------+--------+---------+--------+-------+---------+
| Mc Donalds    | 18    | 9.00   | 1.66    | 83     | Lima  | Direct  |
|               |       |        |         |        |       |         |
| Operaciones   |       |        |         |        |       |         |
| Arcos Dorados |       |        |         |        |       |         |
| de Peru S.A.  |       |        |         |        |       |         |
+---------------+-------+--------+---------+--------+-------+---------+
| Bembos Burger | 28    | 14.00  | 0.85    | 19     | Lima, | Direct, |
| Grill         |       |        |         |        | Truj  | i       |
|               |       |        |         |        | illo, | mporter |
| Bembos S.A.C. |       |        |         |        | Are   |         |
|               |       |        |         |        | quipa |         |
+---------------+-------+--------+---------+--------+-------+---------+
| Domino's      | 17    | 4.45   | None    | 10     | Lima, | I       |
| Pizza         |       |        |         |        | C     | mporter |
|               |       |        |         |        | allao |         |
| Com           |       |        |         |        |       |         |
| ercializadora |       |        |         |        |       |         |
| de Alimentos  |       |        |         |        |       |         |
| Latinos       |       |        |         |        |       |         |
| S.A.C.        |       |        |         |        |       |         |
+---------------+-------+--------+---------+--------+-------+---------+

> *Note: Estimated values for 2005.*
>
> Source: The 10,000 Major Companies in Peru

**3. Institutional Contractors**

-   This sub-sector is approximately 14 percent of total food service
    sales, with an estimated growth of five percent in 2005.

-   U.S. potential market is comprised of large caterers that supply
    airports, mining companies. Currently, these companies use mainly
    local products in their menus.

-   Vending machines and stores in mining camps require imported goods
    such as snacks, canned goods and confectionary that are supplied
    through local importers, wholesalers, distributors or major
    caterers.

**Major Peruvian Suppliers for the Food Service Sector (2004)**

+---------+--------+--------+---------+---------------+---------------+
| **      | *      | *      | **Type  | **Food        | **Imported    |
| Company | *Total | *Total | of      | Supply**      | Food          |
| Name**  | food   | Sales  | Co      |               | Products**    |
|         | I      | (\$    | mpany** |               |               |
|         | mports | thous  |         |               |               |
|         | (\$    | and)** |         |               |               |
|         | thous  |        |         |               |               |
|         | and)** |        |         |               |               |
+---------+--------+--------+---------+---------------+---------------+
| Alicorp | 1      | 5      | Pro     | Pasta, wheat  | Wheat, wheat  |
| S.A.    | 95,391 | 27,753 | cessor, | flour,        | flour, edible |
|         |        |        | im      | margarine,    | oils, soy     |
|         |        |        | porter, | food          | cake, sauces. |
|         |        |        | dist    | ingredients,  |               |
|         |        |        | ributor | mayonnaise,   |               |
|         |        |        |         | breakfast     |               |
|         |        |        |         | cereals,      |               |
|         |        |        |         | cookies,      |               |
|         |        |        |         | jelly, ice    |               |
|         |        |        |         | cream,        |               |
|         |        |        |         | sauces, pet   |               |
|         |        |        |         | food.         |               |
+---------+--------+--------+---------+---------------+---------------+
| Gloria  | 44,660 | 3      | Pro     | Dairy and     | Dairy         |
| S.A.    |        | 38,202 | cessor, | pork          | ingredients,  |
|         |        |        | im      | products,     | juices,       |
|         |        |        | porter, | juices,       | lactose and   |
|         |        |        | dist    | canned        | other sugars. |
|         |        |        | ributor | seafood.      |               |
+---------+--------+--------+---------+---------------+---------------+
| Nestle  | 23,879 | 1      | Pro     | Dairy         | Dairy         |
| Peru    |        | 62,043 | cessor, | products,     | ingredients,  |
| S.A.    |        |        | im      | soups and     | chocolate,    |
|         |        |        | porter, | broths,       | infant        |
|         |        |        | dist    | infant        | formula, food |
|         |        |        | ributor | formula,      | preparations, |
|         |        |        |         | instant       | baked goods,  |
|         |        |        |         | coffee and    | chicory       |
|         |        |        |         | chocolate,    | extract,      |
|         |        |        |         | breakfast     | sauces, soup  |
|         |        |        |         | cereal,       | preparations. |
|         |        |        |         | cookies,      |               |
|         |        |        |         | chocolates,   |               |
|         |        |        |         | bakery goods. |               |
+---------+--------+--------+---------+---------------+---------------+
| Kraft   | 15,550 | 60,570 | Pro     | Cookies,      | Cheese,       |
| Foods   |        |        | cessor, | juices,       | sauces,       |
| Peru    |        |        | im      | cheeses.      | bakery and    |
| S.A.    |        |        | porter, |               | dairy         |
|         |        |        | dist    |               | ingredients,  |
|         |        |        | ributor |               | chocolates.   |
+---------+--------+--------+---------+---------------+---------------+
| G.W.Yi  | 10,055 | 49,658 | Im      | Canned        | Canned        |
| Chang & |        |        | porter, | fruits,       | fruits,       |
| Cia     |        |        | dist    | canned        | canned        |
| S.A.    |        |        | ributor | seafood,      | seafood,      |
|         |        |        |         | chocolate,    | chocolate,    |
|         |        |        |         | wine and      | wine and      |
|         |        |        |         | spirits.      | spirits.      |
+---------+--------+--------+---------+---------------+---------------+
| C       | 8,539  | 16,718 | Im      | Energy        | Energy        |
| lements |        |        | porter, | drinks,       | drinks,       |
| Peruana |        |        | dist    |               | breakfast     |
| S.A.    |        |        | ributor | C             | cereals,      |
|         |        |        |         | onfectionary, | canned food,  |
|         |        |        |         | breakfast     | food          |
|         |        |        |         | cereals.      | preparations. |
+---------+--------+--------+---------+---------------+---------------+
| Se      | 7,236  | 13,838 | Pro     | Processed     | Meats and     |
| rvicios |        |        | cessor, | meats, meats  | edible        |
| Frigo   |        |        | im      | and edible    | offals.       |
| rificos |        |        | porter, | offals.       |               |
| S.A.    |        |        | dist    |               |               |
|         |        |        | ributor |               |               |
+---------+--------+--------+---------+---------------+---------------+
| Química | 7,093  | 2      | Im      | Sweeteners,   | Canned food,  |
| Suiza   |        | 26,846 | porter, | fishmeal,     | food          |
| S.A.    |        |        | dist    | chocolate,    | ingredients,  |
|         |        |        | ributor | wine,         | sweeteners,   |
|         |        |        |         | processed     | animal feed.  |
|         |        |        |         | fruit.        |               |
+---------+--------+--------+---------+---------------+---------------+
| Diageo  | 6,118  | 7,643  | Im      | Liquors.      | Liquors.      |
| Peru    |        |        | porter, |               |               |
| S.A.    |        |        | dist    |               |               |
|         |        |        | ributor |               |               |
+---------+--------+--------+---------+---------------+---------------+
| **      | *      | *      | **Type  | **Food        | **Imported    |
| Company | *Total | *Total | of      | Supply**      | Food          |
| Name**  | food   | Sales  | Co      |               | Products**    |
|         | I      | (\$    | mpany** |               |               |
|         | mports | thous  |         |               |               |
|         | (\$    | and)** |         |               |               |
|         | thous  |        |         |               |               |
|         | and)** |        |         |               |               |
+---------+--------+--------+---------+---------------+---------------+
| U       | 5,999  | 78,547 | Pro     | Sauces,       | Sauces,       |
| nilever |        |        | cessor, | soups.        | soups.        |
| Andina  |        |        | i       |               |               |
| Peru    |        |        | mporter |               |               |
| S.A.    |        |        |         |               |               |
+---------+--------+--------+---------+---------------+---------------+
| Halema  | 5,580  | 8,151  | Pro     | Processed     | Meats and     |
| S.A.    |        |        | cessor, | meats, meats  | edible        |
|         |        |        | i       | and edible    | offals.       |
|         |        |        | mporter | offals.       |               |
+---------+--------+--------+---------+---------------+---------------+
| Laive   | 5,513  | 58,095 | Pro     | Dairy and     | Cheese,       |
| S.A.    |        |        | cessor, | pork          | butter and    |
|         |        |        | i       | products,     | pork          |
|         |        |        | mporter |               | products.     |
+---------+--------+--------+---------+---------------+---------------+
| Agro    | 5,180  | 9,351  | Pro     | Processed     | Meats and     |
| Corp    |        |        | cessor, | meats, meats  | edible        |
| oracion |        |        | i       | and edible    | offals.       |
| S.A.C.  |        |        | mporter | offals.       |               |
+---------+--------+--------+---------+---------------+---------------+
| Pe      | 4,362  | 49,216 | Im      | Chocolate,    | Chocolate,    |
| rufarma |        |        | porter, | c             | c             |
| S.A.    |        |        | dist    | onfectionary, | onfectionary, |
|         |        |        | ributor | wine and      | wine and      |
|         |        |        |         | liquors.      | liquors.      |
+---------+--------+--------+---------+---------------+---------------+
| Arcor   | 3,968  | 13,416 | Pro     | Chocolate,    | Chocolate,    |
| del     |        |        | cessor, | c             | c             |
| Peru    |        |        | im      | onfectionary, | onfectionary, |
| S.A.    |        |        | porter, | bakery goods, | canned fruit, |
|         |        |        | dist    | canned fruit. | bakery goods, |
|         |        |        | ributor |               | bakery        |
|         |        |        |         |               | ingredients.  |
+---------+--------+--------+---------+---------------+---------------+
| Drokasa | 3,204  | 66,223 | Im      | Wine and      | Wine and      |
| Peru    |        |        | porter, | liquors.      | liquors.      |
| S.A.    |        |        | dist    |               |               |
|         |        |        | ributor |               |               |
+---------+--------+--------+---------+---------------+---------------+
| Mayorsa | 3,103  | 17,746 | Whol    | Peas and      | Peas and      |
| S.A.    |        |        | esaler, | lentils,      | lentils,      |
|         |        |        | i       | popcorn,      | popcorn,      |
|         |        |        | mporter | canned fruit, | canned fruit, |
|         |        |        |         | starch.       | starch.       |
+---------+--------+--------+---------+---------------+---------------+
| Oregon  | 3,022  | 3,193  | Im      | Processed     | Meats and     |
| Foods   |        |        | porter, | meats, meats  | edible        |
| S.A.C.  |        |        | dist    | and edible    | offals, fresh |
|         |        |        | ributor | offals, fresh | fruits.       |
|         |        |        |         | fruits.       |               |
+---------+--------+--------+---------+---------------+---------------+
| Corp    | 3,020  | 1      | Pro     | Sodas,        | Canned fruit, |
| oracion |        | 04,646 | cessor, | juices.       | gelatin.      |
| Jose R. |        |        | im      |               |               |
| Lindley |        |        | porter. |               |               |
| S.A.    |        |        |         |               |               |
+---------+--------+--------+---------+---------------+---------------+
| Braedt  | 2,334  | 13,132 | Pro     | Pork          | Pork          |
| S.A.    |        |        | cessor, | products,     | products,     |
|         |        |        | im      | cheese.       | cheese, dairy |
|         |        |        | porter, |               | ingredients,  |
|         |        |        | distr   |               | condiments.   |
|         |        |        | ibutor. |               |               |
+---------+--------+--------+---------+---------------+---------------+
| Ind     | 2,272  | 96,885 | Pro     | Chocolates,   | Wheat.        |
| ustrias |        |        | cessor, | pasta,        |               |
| Mo      |        |        | im      | c             |               |
| litalia |        |        | porter, | onfectionary, |               |
| S.A.    |        |        | distr   | sauces.       |               |
|         |        |        | ibutor. |               |               |
+---------+--------+--------+---------+---------------+---------------+
| Delosi  | 1,404  | 18,571 | Fast    | Hamburgers,   | French fries, |
| S.A.    |        |        | food    | salads.       | bakery goods, |
|         |        |        | fr      |               | sauces,       |
|         |        |        | anchise |               | cheese.       |
+---------+--------+--------+---------+---------------+---------------+
| Rapid   | 1,132  | 1,680  | Im      | French fries, | French fries, |
| Carga   |        |        | porter, | fresh fruit,  | fresh fruit,  |
|         |        |        | dist    | cheeses.      | cheeses.      |
|         |        |        | ributor |               |               |
+---------+--------+--------+---------+---------------+---------------+
| Des     | 1,115  | 12,045 | Pro     | Wholesalers,  | Liquors.      |
| tileria |        |        | cessor, | retailers,    |               |
| Peruana |        |        | i       | food service  |               |
| S.A.    |        |        | mporter |               |               |
+---------+--------+--------+---------+---------------+---------------+
| L.S.    | 1,105  | 4,391  | Im      | French fries  | French fries  |
| Andina  |        |        | porter, | preserved,    | preserved,    |
| S.A.    |        |        | dist    | chocolates,   | chocolates,   |
|         |        |        | ributor | sweeteners,   | sweeteners,   |
|         |        |        |         | c             | c             |
|         |        |        |         | onfectionary, | onfectionary, |
|         |        |        |         | olive oil,    | olive oil,    |
|         |        |        |         | baked goods   | baked goods   |
+---------+--------+--------+---------+---------------+---------------+
| S       | 981    | 14,921 | Pro     | Sausages,     | Pork          |
| ociedad |        |        | cessor, | cheese.       | products,     |
| Suizo   |        |        | i       |               | poultry,      |
| Peruana |        |        | mporter |               | edible        |
| de      |        |        |         |               | offals,       |
| Em      |        |        |         |               | cheese        |
| butidos |        |        |         |               |               |
| S.A.    |        |        |         |               |               |
+---------+--------+--------+---------+---------------+---------------+

  ----------- ------------- ------------- ------------- ---------------- ----------------
  **Company   **Total food  **Total Sales **Type of     **Food Supply**  **Imported Food
  Name**      Imports (\$   (\$           Company**                      Products**
              thousand)**   thousand)**                                  

  Sigdelo     973           16,504        Fast food     Hamburgers,      Cheese, meat
  S.A.                                    chain         pizza            preparations,
                                                                         sauces, French
                                                                         fries,
                                                                         condiments

  K Y L       878           1,873         Importer,     Microwave        Microwave
  Import and                              distributor   popcorn, soups,  popcorn, soups,
  Export S.A.                                           baked goods      baked goods.

  L C e Hijos 878           1,566         Importer,     Wine and liquors Wine and liquors
  S.A.                                    distributor                    

  Bembos      679           10,650        Fast food     Hamburgers       French fries,
  S.A.C.                                  chain                          meat, cheeses
  ----------- ------------- ------------- ------------- ---------------- ----------------

*Note: Total food imports are distributed between the three food
sectors: HRI, Retail and Food Processing.*

Source: The 10,000 Major Companies in Peru and Peru's Customs (Sunat)

**III. Competition**

![](media/image8.wmf){width="4.458333333333333in"
height="3.1041666666666665in"}

Source: World Trade Atlas

-   Peru gives tariff preferences to the Andean Community (Bolivia,
    Colombia, Ecuador and Venezuela), and with Mexico, Paraguay,
    Argentina, Brazil, Uruguay and Cuba. Peru is an associated country
    to MERCOSUR and is also looking for bilateral free trade agreements
    with Chile and Thailand (currently in negotiations) and the European
    Union.

```{=html}
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```
-   Neighboring countries, especially Chile, Colombia, Argentina and
    Brazil are major food exporters to Peru. Chile and Colombia are
    benefited from lower transport costs. Argentina is exporting to Peru
    with competitive prices due to the devaluation in 2002.

-   In 2005, Peru's imports of consumer-oriented products reached \$339
    million. The United States was the fourth major supplier with \$30
    million (9 percent of market share).

-   In December 2005, the United States and Peru finished TPA
    negotiations. We are looking forward the implementation of this
    agreement in early 2007, which will allow lower or duty free tariffs
    for many food and agricultural products. For a complete list of
    products that will be benefited from the TPA, please check
    [www.ustr.gov](http://www.ustr.gov/).

-   The TPA will reinforce U.S. competitiveness within the Peruvian
    market. The quality on U.S. products is already appreciated among
    the high-end consumers.

# Competitive Situation facing U.S. Suppliers in the HRI Food Service Market in 2005

+---------------+---------------+---------------+---------------------+
| ### Pro       | **Major       | **Strengths   | **Advantages and    |
| duct Category | Supply        | of Key Supply | Disadvantages of    |
| / Net Imports | Sources**     | Countries**   | Local Suppliers**   |
+---------------+---------------+---------------+---------------------+
| ###### D      | Colombia:     | \- New        | -   Two companies   |
| airy Products | 19.6%         | Zealand and   |     are major       |
|               |               | Colombia are  |     producers of    |
| (excluding    | New Zealand:  | major         |     evaporated milk |
| milk powder)  | 15%           | suppliers of  |     and yogurt.     |
|               |               | dairy         |                     |
| 37,963 tons   | Mexico: 12%   | ingredients.  | -   Homemade        |
|               |               |               |     cheeses are     |
| (\$65.5       | U.S.: 9.5%    | \- Europe is  |     commonly sold.  |
| million)      |               | very well     |                     |
|               |               | positioned in |                     |
|               |               | high quality  |                     |
|               |               | cheeses.      |                     |
+---------------+---------------+---------------+---------------------+
| Fresh Fruits  | Chile: 97.8%  | \- Chile is   | -   There is an     |
|               |               | the main      |     open window     |
| 36,930 tons   | U.S.: 1.7%    | supplier      |     from November   |
|               |               | because of    |     to February for |
| (\$20         |               | proximity and |     the United      |
| million)      |               | price.        |     States.         |
|               |               |               |                     |
|               |               |               | -   Local fruit is  |
|               |               |               |     of lower        |
|               |               |               |     quality.        |
+---------------+---------------+---------------+---------------------+
| Fruits and    | U.S.: 41.7%   | \- Colombia   | \- Local brands are |
| vegetables    |               | and Chile     | well positioned in  |
| juices        | Brazil: 29.7% | have          | the market at       |
|               |               | advantages of | competitive prices. |
| 439,527 tons  | Chile: 20.1%  | tariffs and   |                     |
|               |               | proximity.    |                     |
| (\$ 0.75      |               |               |                     |
| million)      |               |               |                     |
+---------------+---------------+---------------+---------------------+
| Processed     | Chile: 49%    | -   Chile     | \- Local processors |
| Fruits and    |               |     sales     | are major           |
| Vegetables    | Netherlands:  |     with      | exporters, but      |
|               | 11%           |     cheaper   | their local variety |
| 41,092 tons   |               |     prices    | for supply is       |
|               | U.S.: 8%      |     due to    | limited.            |
| (\$38.2       |               |               |                     |
| million)      | Argentina:    |    proximity. |                     |
|               | 7.3%          |               |                     |
|               |               | \- E.U.       |                     |
|               |               | products are  |                     |
|               |               | positioned as |                     |
|               |               | of good       |                     |
|               |               | quality.      |                     |
+---------------+---------------+---------------+---------------------+
| Snack Foods   | Colombia:     | \- Tariff     | \- Local producers  |
|               | 32.2%         | preferences   | are major food      |
| 14,200 tons   |               | applied to    | processors. They    |
|               | Chile: 20.7%  | some snacks   | import food         |
| (\$34.4       |               | for           | ingredients for     |
| million)      | Ecuador:      | neighboring   | snacks and also     |
|               | 13.5%         | countries.    | snacks.             |
|               |               |               |                     |
|               | Argentina:    |               |                     |
|               | 12.9%         |               |                     |
|               |               |               |                     |
|               | U.S.: 6.8%    |               |                     |
+---------------+---------------+---------------+---------------------+
| Wine and Beer | Argentina:    | \- Proximity  | \- Major local      |
|               | 28.4%         | and           | breweries are price |
| 31,144 liters |               | recognized    | competitive and     |
|               | Chile: 26%    | quality of    | belong to           |
| (\$17.8       |               | Chilean and   | international       |
| million)      | Brazil: 20.8% | Argentinean   | companies.          |
|               |               | wines.        |                     |
|               | Spain: 10.7%  |               | \- Local wine is    |
|               |               |               | well positioned and |
|               | Italy: 3.5%   |               | price competitive,  |
|               |               |               | but does not        |
|               | U.S.: 2.9%    |               | satisfy demand.     |
+---------------+---------------+---------------+---------------------+

+---------------+---------------+---------------+---------------------+
| ### Pro       | **Major       | **Strengths   | **Advantages and    |
| duct Category | Supply        | of Key Supply | Disadvantages of    |
| / Net Imports | Sources**     | Countries**   | Local Suppliers**   |
+---------------+---------------+---------------+---------------------+
| Red Meats     | Argentina:    | \- Argentina  | \- U.S. meats are   |
| (fresh,       | 45.9%         | and Brazil    | of superior         |
| chilled or    |               | imports are   | quality.            |
| frozen)       | Brazil: 21.2% | currently     |                     |
|               |               | banned due to | \- Local meat does  |
| 25,364 tons   | Paraguay:     | FMD.          | not satisfy the     |
|               | 19.3%         |               | demand.             |
| (\$27.8       |               | \- Peru's     |                     |
| million)      |               | market for    |                     |
|               |               | the U.S. will |                     |
|               |               | be opened     |                     |
|               |               | soon.         |                     |
+---------------+---------------+---------------+---------------------+
| Red Meats     | Chile: 30.5%  | \- Chile has  | \- There is a pork  |
| (prepared,    |               | tariff        | products industry   |
| preserved)    | Argentina:    | preferences   | that also imports   |
|               | 15.8%         | and has the   | prepared meats.     |
| 804.9 tons    |               | advantage of  |                     |
|               | Italy: 15.6%  | proximity.    |                     |
| (\$2 million) |               |               |                     |
|               | Bolivia:      | \- U.S.       |                     |
|               | 11.7%         | product       |                     |
|               |               | tariffs will  |                     |
|               | U.S.: 4.5%    | go down from  |                     |
|               |               | 5 to 7 years  |                     |
|               |               | linear.       |                     |
+---------------+---------------+---------------+---------------------+
| Poultry Meat  | Brazil: 49.5% | \- U.S.       | \- Local poultry    |
|               |               | poultry       | producers are major |
| 8,393 tons    | Chile: 41%    | products will | suppliers with good |
|               |               | reopen soon.  | distribution        |
| (\$6 million) | Argentina:    |               | channels.           |
|               | 8.4%          | \- Brazil and |                     |
|               |               | Chile are     |                     |
|               | Bolivia: 0.7% | major         |                     |
|               |               | suppliers     |                     |
|               | U.S.: 0.08%   | poultry cuts. |                     |
+---------------+---------------+---------------+---------------------+

*Note: Net imports correspond to the three food sectors: Food Service,
Retail and Food Processing.*

Source: World Trade Atlas

**IV. Best Product ProspectsIV. Best Products Prospects**

![](media/image9.wmf){width="4.833333333333333in" height="2.90625in"}

Source: World Trade Atlas

**A. Products Present in the Market Which Have Good Sales Growth
Potential**

+-------+-------+------+--------+------+----------+------------------+
| **    | **M   | **I  | ##     | **Im | **Key    | **Market         |
| Produ | arket | mpor | #### A | port | Con      | Attractiveness   |
| ct/** | S     | ts** | verage | Ta   | straints | for the U.S.**   |
|       | ize** |      |        | riff | Over     |                  |
| **Pr  |       | **20 | **     | Ra   | Market   |                  |
| oduct | *     | 05** | Annual | te** | Devel    |                  |
| Categ | *2005 |      | Import |      | opment** |                  |
| ory** | e     |      | Growth |      |          |                  |
|       | st.** |      | (2001  |      |          |                  |
|       |       |      | -05)** |      |          |                  |
+-------+-------+------+--------+------+----------+------------------+
| C     | 1     | 1    | 2.4%   | 25%  | \-       | \- U.S. cheeses  |
| heese | 2,676 | ,959 |        | +    | Neighbor | are mainly used  |
|       |       | tons | (U     |      | c        | in the Food      |
| (HS   | tons  |      | neven, | P    | ountries | Processing       |
| 0406) |       | (\   | 8% in  | rice | are U.S. | Sector, but with |
|       |       | $6.5 | 2005)  | band | comp     | potential in HRI |
|       |       | mill |        |      | etitors: | and Retail Food  |
|       |       | ion) |        | TPA: | A        | Sectors.         |
|       |       |      |        |      | rgentina |                  |
|       |       |      |        | TRQ. | and      | \- In 2005, U.S. |
|       |       |      |        |      | Bolivia. | was the first    |
|       |       |      |        |      |          | supplier,        |
|       |       |      |        |      | \-       | growing 29% from |
|       |       |      |        |      | Strong   | 2004.            |
|       |       |      |        |      | pr       |                  |
|       |       |      |        |      | eference | \- TPA: TRQ of   |
|       |       |      |        |      | for      | 2,000 MT in the  |
|       |       |      |        |      | European | first year. TRQ  |
|       |       |      |        |      | cheese   | increases up to  |
|       |       |      |        |      | at the   | 17 years, when   |
|       |       |      |        |      | high-end | reaches duty     |
|       |       |      |        |      | HRI and  | free.            |
|       |       |      |        |      | Retails  |                  |
|       |       |      |        |      | Sectors. |                  |
+-------+-------+------+--------+------+----------+------------------+
| Con   | \$80  | 9    | 9.6%   | 25%  | \- Major | \- TPA: U.S.     |
| fecti | mi    | ,294 |        |      | s        | confectionary    |
| onary | llion | tons | (Rec   | TPA: | uplliers | duties will go   |
| --    |       |      | overed | Duty | are      | down to cero.    |
| non   |       | (    | from   | free | ne       |                  |
| choc  |       | \$18 | ne     |      | ighbors: |                  |
| olate |       | mill | gative |      | C        |                  |
|       |       | ion) | growth |      | olombia, |                  |
| (HS   |       |      | in     |      | Ecuador, |                  |
| 1704) |       |      | 2004)  |      | Chile.   |                  |
|       |       |      |        |      |          |                  |
|       |       |      |        |      | \- Local |                  |
|       |       |      |        |      | industry |                  |
|       |       |      |        |      | is       |                  |
|       |       |      |        |      | strong.  |                  |
|       |       |      |        |      | Major    |                  |
|       |       |      |        |      | owners   |                  |
|       |       |      |        |      | are      |                  |
|       |       |      |        |      | foreign  |                  |
|       |       |      |        |      | co       |                  |
|       |       |      |        |      | mpanies. |                  |
+-------+-------+------+--------+------+----------+------------------+
| Con   | Pr    | 2    | 2.2%   | 25%  | \- Chile | \- The U.S. is   |
| fecti | emium | ,554 |        |      | is the   | the second major |
| onary | cat   | tons | (Im    | TPA: | major    | supplier. The    |
| --    | egory |      | mature | Duty | s        | U.S. strength is |
| choc  | \$2.3 | (\   | m      | free | upplier. | in chocolate for |
| olate | mi    | $8.1 | arket, |      |          | the retail       |
|       | llion | mill | growth |      | \- Local | sector and       |
| (HS   |       | ion) | in     |      | industry | ingredients for  |
| 1806) | Total |      | 2005   |      | is       | the industry.    |
|       | M     |      | was    |      | comp     |                  |
|       | arket |      | 26%)   |      | etitive. | \- Duty free     |
|       | \$60  |      |        |      |          | with TPA.        |
|       | mi    |      |        |      |          |                  |
|       | llion |      |        |      |          |                  |
+-------+-------+------+--------+------+----------+------------------+
| Gr    | 160.6 | 809  | -45.9% | 25%  | \- Local | \- U.S. window:  |
| apes, | mi    | tons |        |      | pr       | September to     |
| fresh | llion | (\   | (      | TPA: | oduction | December.        |
|       | tons  | $0.5 | Growth | Duty | is       |                  |
| (HS   | (\$4  | mill | of 3%  | free | strong.  | \- Grapes duties |
| 08    | 6,708 | ion) | in     |      |          | with the TPA     |
| 0610) | mil   |      | 2005,  |      | \- Chile | will go down to  |
|       | lion) |      | reco   |      | is a     | cero             |
|       |       |      | vering |      | major    | inmediately.     |
|       |       |      | from a |      | i        |                  |
|       |       |      | turn   |      | mporter. |                  |
|       |       |      | down   |      |          |                  |
|       |       |      | of     |      | \- Low   |                  |
|       |       |      | four   |      | imports. |                  |
|       |       |      | years) |      |          |                  |
+-------+-------+------+--------+------+----------+------------------+
| Gr    | N/A   | 5    | -25%   | 25%  | \- There | \- Grapes        |
| apes, |       | ,204 |        |      | are no   | tariffs with the |
| ra    |       | tons | (      | TPA: | imports  | implementation   |
| isins |       |      | Growth | Duty | from the | of the TPA will  |
|       |       | (\$7 | of 47% | free | U.S.     | go down to cero. |
| (HS   |       | mill | in the |      |          |                  |
| 08    |       | ion) | last   |      | \- Chile |                  |
| 0620) |       |      | two    |      | is       |                  |
|       |       |      | years) |      | almost   |                  |
|       |       |      |        |      | the only |                  |
|       |       |      |        |      | one      |                  |
|       |       |      |        |      | s        |                  |
|       |       |      |        |      | upplier. |                  |
+-------+-------+------+--------+------+----------+------------------+

+-------+-------+------+--------+------+----------+------------------+
| **    | **M   | **I  | ##     | **Im | **Key    | **Market         |
| Produ | arket | mpor | #### A | port | Con      | Attractiveness   |
| ct/** | S     | ts** | verage | Ta   | straints | for the U.S.**   |
|       | ize** |      |        | riff | Over     |                  |
| **Pr  |       | **20 | **     | Ra   | Market   |                  |
| oduct | *     | 05** | Annual | te** | Devel    |                  |
| Categ | *2005 |      | Import |      | opment** |                  |
| ory** | e     |      | Growth |      |          |                  |
|       | st.** |      | (2001  |      |          |                  |
|       |       |      | -05)** |      |          |                  |
+-------+-------+------+--------+------+----------+------------------+
| A     | 146.7 | 32   | -0.27% | 25%  | \- Chile | \- There is an   |
| pples | mi    | ,462 |        |      | is the   | opportunity      |
| and   | llion | tons | (      | TPA: | major    | window for the   |
| Pears | tons  |      | Growth | Duty | supplier | U.S. between     |
|       | (\$2  | (    | of     | free | with 98% | November and     |
| (HS   | 8,585 | 17.7 | 9.7%   |      | of       | February.        |
| 0808) | mil   | mill | in the |      | market   |                  |
|       | lion) | ion) | last   |      | share.   | \- Tariffs with  |
|       |       |      | three  |      |          | the              |
|       |       |      | years) |      |          | implementation   |
|       |       |      |        |      |          | of the TPA will  |
|       |       |      |        |      |          | go down to cero. |
+-------+-------+------+--------+------+----------+------------------+
| Pea   | Pea   | 2    | 16.1%  | 25%  | \- Chile | \- Importer´s    |
| ches, | ches: | ,702 |        |      | is major | interest for     |
| che   | 3     | tons | (      | TPA: | supplier | U.S. peaches and |
| rries | 6,455 |      | Growth | Duty | with 99% | nectarines.      |
| and   | tons  | (\   | of 23% | free | of       |                  |
| Necta | (\$   | $1.5 | in the |      | market   | \- Will be       |
| rines | 4,446 | mill | last   |      | share.   | benefitted from  |
|       | mil   | ion) | three  |      |          | the TPA with     |
| (HS   | lion) |      | years) |      |          | zero duties.     |
| 0809) |       |      |        |      |          |                  |
+-------+-------+------+--------+------+----------+------------------+
| Prime | Total | 2    | 0.1%   | 25%  | \-       | \- The market    |
| and   | beef  | ,180 |        |      | Competes | will open for    |
| c     | and   | tons |        | TPA: | with     | U.S. Beef soon.  |
| hoice | o     | (\   |        | duty | quality  |                  |
| beef  | ffals | $4.4 |        | free | and      | \- Temporary ban |
|       | ma    | mill |        |      | higher   | for major        |
| (HS   | rket: | ion) |        |      | price    | suppliers        |
| 02    | 15    |      |        |      | with     | (Brazil and      |
| 0230) | 7,512 |      |        |      | A        | Argentina).      |
|       | tons  |      |        |      | rgentina |                  |
|       | (\    |      |        |      | (imports | \- Duty free     |
|       | $11.6 |      |        |      | c        | imports when TPA |
|       | mil   |      |        |      | urrently | will be          |
|       | lion) |      |        |      | banned)  | implemented.     |
+-------+-------+------+--------+------+----------+------------------+
| E     | Total | 3    | 0.86%  | 12%  | \- Major | \- Before the    |
| dible | beef  | ,445 |        |      | s        | ban, U.S.        |
| Beef  | and   | tons | (      | TPA: | uppliers | imports were     |
| O     | o     |      | Growth | sub  | are      | growing fast.    |
| ffals | ffals | (\$3 | in     | ject | Brazil   |                  |
|       | ma    | mill | 2005   | to   | and      | \- With the TPA  |
| (HS   | rket: | ion) | was    | TRQ  | A        | implementation   |
| 02    | 15    |      | 19%)   |      | rgentina | there would be a |
| 0621, | 7,512 |      |        |      | (imports | TRQ that will    |
|       | tons  |      |        |      | are      | allow U.S.       |
| 020   | (\    |      |        |      | c        | market share     |
| 622\) | $11.6 |      |        |      | urrently | growth.          |
|       | mil   |      |        |      | banned)  |                  |
|       | lion) |      |        |      |          |                  |
+-------+-------+------+--------+------+----------+------------------+
| Po    | \$    | 3    | 309%   | 25%  | \- There | \- Peruvians are |
| ultry | 1,000 | ,542 |        |      | is a     | major consumers  |
| meat  | mi    | tons | (U     | TPA: | strong   | of poultry.      |
| cuts  | llion |      | neven, | 10   | Poultry  |                  |
|       |       | (\   | growth | y    | industry |                  |
| (HS   |       | $2.6 | ro     | ears | in Peru. |                  |
| 02    |       | mill | cketed | li   |          |                  |
| 0711, |       | ion) | in     | near | \-       |                  |
| 02    |       |      | 2002)  |      | A        |                  |
| 0712) |       |      |        |      | rgentina |                  |
|       |       |      |        |      | and      |                  |
|       |       |      |        |      | Brazil   |                  |
|       |       |      |        |      | are      |                  |
|       |       |      |        |      | major    |                  |
|       |       |      |        |      | im       |                  |
|       |       |      |        |      | porters. |                  |
+-------+-------+------+--------+------+----------+------------------+
| Whey  | 6,520 | 6    | 22.7%  | 25%  | \- Major | \- The U.S. is   |
|       | tons  | ,520 |        |      | com      | the major        |
| (HS   | (     | tons | (34.4% | TPA: | petitors | supplier with    |
| 0404) | \$7.6 | (\   | a      | duty | are      | 23% of imports.  |
|       | mil   | $7.6 | verage | free | France   |                  |
|       | lion) | mill | annual |      | and New  | \- Growing       |
|       |       | ion) | growth |      | Zealand, | market: multiple |
|       |       |      | in the |      | and very | uses in the food |
|       |       |      | last   |      | recently | industry.        |
|       |       |      | three  |      | Chile.   |                  |
|       |       |      | years) |      |          | \- TPA will make |
|       |       |      |        |      |          | whey duties go   |
|       |       |      |        |      |          | to zero.         |
+-------+-------+------+--------+------+----------+------------------+

+-------+-------+------+--------+------+----------+------------------+
| **    | **M   | **I  | ##     | **Im | **Key    | **Market         |
| Produ | arket | mpor | #### A | port | Con      | Attractiveness   |
| ct/** | S     | ts** | verage | Ta   | straints | for the U.S.**   |
|       | ize** |      |        | riff | Over     |                  |
| **Pr  |       | **20 | **     | Ra   | Market   |                  |
| oduct | *     | 05** | Annual | te** | Devel    |                  |
| Categ | *2005 |      | Import |      | opment** |                  |
| ory** | e     |      | Growth |      |          |                  |
|       | st.** |      | (2001  |      |          |                  |
|       |       |      | -05)** |      |          |                  |
+-------+-------+------+--------+------+----------+------------------+
| T     | 1     | 2    | 9%     | 25%  | \- Major | \- Peruvians are |
| urkey | 7,000 | ,706 |        |      | i        | major consumers  |
|       | tons  | tons | (U     | TPA: | mporters | of turkey at     |
| (HS   |       |      | neven. | 5    | are      | Christmas and    |
| 02    |       | (2,4 | Growth | y    | Brazil   | New Year season. |
| 0725, |       | mill | of 30% | ears | and      |                  |
| 02    |       | ion) | in     | li   | Chile.   | \- TPA will      |
| 0726, |       |      | 2005)  | near |          | benefit entry of |
| 02    |       |      |        |      | \- Local | U.S. turkey with |
| 0727) |       |      |        |      | poultry  | a five years     |
|       |       |      |        |      | industry | linear tariff    |
|       |       |      |        |      | is       | treatment.       |
|       |       |      |        |      | strong.  |                  |
+-------+-------+------+--------+------+----------+------------------+
| Fruit | N/A   | 1    | 90%    | 25%  | \- Major | \- U.S. products |
| and   |       | ,019 |        |      | s        | will be          |
| vege  |       | tons | (In    | TPA: | uppliers | benefited from   |
| table |       | (\   | mature | duty | are      | the TPA.         |
| prep. |       | $0.6 | m      | free | Chile,   |                  |
|       |       | mill | arket, | / 5  | China    |                  |
| (HS   |       | ion) | g      | y    | and the  |                  |
| 2001, |       |      | rowing | ears | U.S.     |                  |
| 2002) |       |      | si     | li   |          |                  |
|       |       |      | gnific | near |          |                  |
|       |       |      | antly) |      |          |                  |
+-------+-------+------+--------+------+----------+------------------+
| Fruit | N/A   | 440  | -1%    | 25%  | \- Major | \- U.S. products |
| and   |       | tons |        |      | s        | will be          |
| Vege  |       | (\$  | (      | TPA: | uppliers | benefited from   |
| table |       | 0.75 | uneven | duty | are      | the TPA.         |
| j     |       | mill | trend) | free | Brazil,  |                  |
| uices |       | ion) |        | / 5  | the U.S. |                  |
|       |       |      |        | y    | and      |                  |
| (HS   |       |      |        | ears | Chile.   |                  |
| 2009) |       |      |        | li   |          |                  |
|       |       |      |        | near |          |                  |
+-------+-------+------+--------+------+----------+------------------+
| Sau   | Sau   | 321  | 4.2%   | 25%  | \- Major | \- There is a    |
| sages | sages | tons |        |      | e        | high-end segment |
|       | and   |      | (in    | TPA: | xporters | for gourmet      |
| (HS   | hams  | (\$0 | mature | 5    | are      | sausages, where  |
| 1601) | ma    | .484 | m      | y    | Chile,   | the U.S. can     |
|       | rket: | mill | arket) | ears | Spain    | compete.         |
|       | \$60  | ion) |        | li   | and      |                  |
|       | mi    |      |        | near | Italy.   |                  |
|       | llion |      |        |      |          |                  |
|       | (2    |      |        |      |          |                  |
|       | 7,000 |      |        |      |          |                  |
|       | tons) |      |        |      |          |                  |
+-------+-------+------+--------+------+----------+------------------+
| Pasta | 27    | 2    | 25%    | 25%  | \- Major | \- U.S. pasta    |
|       | 7,977 | ,998 |        | /    | s        | will be          |
| (HS   | tons  | tons | (      | 12%  | uppliers | benefited from   |
| 1902) |       |      | Uneven |      | are      | the TPA.         |
|       |       | (\   | m      | TPA: | Chile,   |                  |
|       |       | $1.6 | arket) | duty | Italy    |                  |
|       |       | mill |        | free | and the  |                  |
|       |       | ion) |        | or 5 | U.S.     |                  |
|       |       |      |        | y    |          |                  |
|       |       |      |        | ears |          |                  |
|       |       |      |        | li   |          |                  |
|       |       |      |        | near |          |                  |
+-------+-------+------+--------+------+----------+------------------+
| Pota  | Proc  | 4    | 12.5%  | 25%  | \- Major | \- U.S.          |
| toes, | essed | ,478 |        |      | e        | advantage of     |
| F     | pot   | tons | (      | TPA: | xporters | duty free with   |
| rench | atoes | (\   | Growth | Duty | are      | the TPA, which   |
| fries | for   | $3.4 | of 28% | free | Neth     | will make the    |
|       | HRI:  | mill | in the |      | erlands, | U.S. more price  |
| (HS   | \$15  | ion) | last   |      | Belgium, | competitive.     |
| 20    | mi    |      | two    |      | Canada   |                  |
| 0410) | llion |      | years) |      | and the  | \- Increasing    |
|       |       |      |        |      | U.S.     | demand           |
|       |       |      |        |      |          |                  |
|       |       |      |        |      | \- Local |                  |
|       |       |      |        |      | pr       |                  |
|       |       |      |        |      | ocessors |                  |
|       |       |      |        |      | cannot   |                  |
|       |       |      |        |      | supply   |                  |
|       |       |      |        |      | the      |                  |
|       |       |      |        |      | demand.  |                  |
+-------+-------+------+--------+------+----------+------------------+
| B     | Co    | 2    | 2.4%   | 25%  | \- Major | \- U.S. products |
| read, | okies | ,035 |        |      | s        | will be          |
| pa    | (     | tons | (      | TPA: | uppliers | benefited with   |
| stry, | \$160 |      | Uneven | duty | are      | duty free with   |
| co    | mil   | (\$4 | g      | free | Chile,   | the TPA.         |
| okies | lion) | mill | rowth, | / 3  | Colombia |                  |
|       |       | ion) | rec    | y    | ad the   |                  |
| (HS   | Bread |      | overed | ears | U.S.     |                  |
| 1905) | and   |      | in     | li   |          |                  |
|       | P     |      | 2005)  | near |          |                  |
|       | astry |      |        |      |          |                  |
|       | (75   |      |        |      |          |                  |
|       | 4,000 |      |        |      |          |                  |
|       | tons) |      |        |      |          |                  |
+-------+-------+------+--------+------+----------+------------------+

+-------+-------+------+--------+------+----------+------------------+
| **    | **M   | **I  | ##     | **Im | **Key    | **Market         |
| Produ | arket | mpor | #### A | port | Con      | Attractiveness   |
| ct/** | S     | ts** | verage | Ta   | straints | for the U.S.**   |
|       | ize** |      |        | riff | Over     |                  |
| **Pr  |       | **20 | **     | Ra   | Market   |                  |
| oduct | *     | 05** | Annual | te** | Devel    |                  |
| Categ | *2005 |      | Import |      | opment** |                  |
| ory** | e     |      | Growth |      |          |                  |
|       | st.** |      | (2001  |      |          |                  |
|       |       |      | -05)** |      |          |                  |
+-------+-------+------+--------+------+----------+------------------+
| Sa    | Mayon | 3    | 3.5%   | 25%  | \- Major | \- U.S. products |
| uces, | naise | ,983 |        |      | s        | will be          |
| soups | (     | tons | (u     | TPA: | uppliers | benefited from   |
| &     | 5,500 | (\   | neven, | duty | are the  | the TPA.         |
| b     | tons) | $6.3 | annual | free | U.S. and |                  |
| roths |       | mill | growth | / 5  | Chile.   |                  |
|       |       | ion) | of 10% | y    |          |                  |
| (HS   |       |      | from   | ears |          |                  |
| 2103, |       |      | 2001   | li   |          |                  |
| 2104) |       |      | to     | near |          |                  |
|       |       |      | 2004,  |      |          |                  |
|       |       |      | d      |      |          |                  |
|       |       |      | ropped |      |          |                  |
|       |       |      | in     |      |          |                  |
|       |       |      | 2005)  |      |          |                  |
+-------+-------+------+--------+------+----------+------------------+
| Wine  | 11.1  | 5.6  | 6.4%   | 17%  | \- Chile | \- Local         |
|       |       | mil  |        |      | (41%),   | industry has 52% |
| (HS   | mi    | lion |        | TPA: | A        | of market share. |
| 2204) | llion | li   |        | 3 to | rgentina |                  |
|       |       | tres |        | 5    | (21%)    | \- There is a    |
|       | l     |      |        | y    | and      | niche market for |
|       | itres | (\   |        | ears | Spain    | quality wines on |
|       |       | $9.9 |        | li   | (19%)    | which the U.S.   |
|       |       | mill |        | near | are      | can be           |
|       |       | ion) |        |      | major    | appreciated and  |
|       |       |      |        |      | ex       | price            |
|       |       |      |        |      | porters. | competitive.     |
|       |       |      |        |      |          |                  |
|       |       |      |        |      | \-       | \- Peru's wine   |
|       |       |      |        |      | Strong   | consumption is   |
|       |       |      |        |      | pro      | growing.         |
|       |       |      |        |      | motions. |                  |
|       |       |      |        |      |          | \- Post has      |
|       |       |      |        |      | \- Only  | recently held a  |
|       |       |      |        |      | regular  | Wine & Cheese    |
|       |       |      |        |      | wine     | tasting          |
|       |       |      |        |      | c        | presenting U.S.  |
|       |       |      |        |      | onsumers | wines to major   |
|       |       |      |        |      | r        | HRI and Retail   |
|       |       |      |        |      | ecognize | suppliers.       |
|       |       |      |        |      | U.S.     |                  |
|       |       |      |        |      | wine     |                  |
|       |       |      |        |      | quality. |                  |
+-------+-------+------+--------+------+----------+------------------+

*Note: TRQ = Tariff Rate Quota, on a first-come first-serve basis.*

Source: World Trade Atlas, Ministry of Agriculture (Minag), Gestion
Newspaper.

**B. Products not Present in Significant Quantities, but Which Have Good
Sales Potential**

+--------+--------+--------+-------+-----------+--------------------+
| **Prod | **Imp  | ##     | **I   | **Key     | **Market           |
| uct/** | orts** | #### A | mport | Co        | Attractiveness for |
|        |        | verage | T     | nstraints | the U.S.**         |
| **P    | **     |        | ariff | Over      |                    |
| roduct | 2005** | **     | R     | Market    |                    |
| Cate   |        | Annual | ate** | Deve      |                    |
| gory** |        | Import |       | lopment** |                    |
|        |        | Growth |       |           |                    |
|        |        | (2001  |       |           |                    |
|        |        | -05)** |       |           |                    |
+--------+--------+--------+-------+-----------+--------------------+
| C      | 2,110  | -12.5% | 25%   | \- There  | \- TPA will        |
| hicken | tons   |        |       | is a      | benefit            |
| leg    |        | (U     | TPA:  | strong    | mechanically       |
| qu     | (\$1   | neven, | 2 to  | Poultry   | deboned meat (MDM) |
| arters | mi     | 24% of | 5     | industry  | with 2 years       |
|        | llion) | growth | years | in Peru.  | linear for duty    |
| (HS    |        | in     | li    |           | free.              |
| 0      |        | 2005)  | near; |           |                    |
| 20713, |        |        | TRQ   |           | \- TRQ for chicken |
| 0      |        |        |       |           | leg quarters when  |
| 20714, |        |        |       |           | TPA is             |
| 1      |        |        |       |           | implemented.       |
| 60232) |        |        |       |           |                    |
|        |        |        |       |           | \- The sausage     |
|        |        |        |       |           | industry is        |
|        |        |        |       |           | demanding the      |
|        |        |        |       |           | product as a lower |
|        |        |        |       |           | cost ingredient.   |
+--------+--------+--------+-------+-----------+--------------------+

+--------+--------+--------+-------+-----------+--------------------+
| **Prod | **Imp  | ##     | **I   | **Key     | **Market           |
| uct/** | orts** | #### A | mport | Co        | Attractiveness for |
|        |        | verage | T     | nstraints | the U.S.**         |
| **P    | **     |        | ariff | Over      |                    |
| roduct | 2005** | **     | R     | Market    |                    |
| Cate   |        | Annual | ate** | Deve      |                    |
| gory** |        | Import |       | lopment** |                    |
|        |        | Growth |       |           |                    |
|        |        | (2001  |       |           |                    |
|        |        | -05)** |       |           |                    |
+--------+--------+--------+-------+-----------+--------------------+
| Nuts   | 104    | 19.6%  | 25%   | \- Chile  | \- Importers       |
| and    | tons   |        |       | is the    | recognize that     |
| a      |        | (in    | TPA:  | major     | U.S. quality of    |
| lmonds | (\$0.7 | mature | Duty  | supplier. | nuts and almonds   |
|        | mi     | m      | free  |           | is better than     |
| (HS    | llion) | arket, | or 5  | \- U.S.   | Chile´s.           |
| 0802)  |        | steady | years | exports   |                    |
|        |        | growth | l     | to Peru   | \- The product     |
|        |        | since  | inear | are very  | will be benefited  |
|        |        | 2002)  |       | small     | from the TPA.      |
+--------+--------+--------+-------+-----------+--------------------+
| Citrus | 160    | -17.6% | 25%   | \- U.S.   | \- Recognized      |
|        | tons   |        |       | imports   | quality of U.S.    |
| (HS    |        | (      | TPA:  | are       | oranges and        |
| 0805)  | (\     | Growth | 5     | r         | tangerines.        |
|        | $0.123 | of 9%  | years | estricted |                    |
|        | mi     | in     |       | to        | \- Export window   |
|        | llion) | 2005)  |       | Florida   | for the U.S. is    |
|        |        |        |       | due to    | from January to    |
|        |        |        |       | sanitary  | March.             |
|        |        |        |       | issues.   |                    |
|        |        |        |       |           | \- U.S. will gain  |
|        |        |        |       | \- Chile  | competitiveness    |
|        |        |        |       | owned 84% | with TPA.          |
|        |        |        |       | of        |                    |
|        |        |        |       | imports   |                    |
|        |        |        |       | in 2005.  |                    |
+--------+--------+--------+-------+-----------+--------------------+
| Other  | 408    | 17.24% | 25%   | \- Chile  | \- The TPA will    |
| fresh  | tons   | (      |       | is major  | open opportunities |
| fruit  | (\     | growth | TPA:  | supplier  | for the U.S. not   |
|        | $0.276 | rec    | Duty  | with 94%  | only to export     |
| (HS    | mi     | overed | free  | of market | kiwis but also     |
| 0810)  | llion) | in     | or 5  | share.    | cranberries (very  |
|        |        | 2003)  | years |           | well accepted in   |
|        |        |        | l     | \-        | juice),            |
|        |        |        | inear | Imports   | strawberries, etc. |
|        |        |        |       | mainly of |                    |
|        |        |        |       | kiwi.     |                    |
+--------+--------+--------+-------+-----------+--------------------+
| Pork   | 655    | 1,731% | 25%   | \-        | \- Pork imports    |
| Meat   | tons   |        |       | Peruvians | are growing.       |
|        |        | (143%  | TPA:  | are not   |                    |
| (HS    | (\$1   | in the | 5     | used to   | \- U.S. pork will  |
| 0203)  | mi     | last   | years | eating    | be benefited from  |
|        | llion) | three  | l     | pork.     | the TPA            |
|        |        | years) | inear |           | implementation.    |
|        |        |        |       | \- Local  |                    |
|        |        |        |       | industry  |                    |
|        |        |        |       | produces  |                    |
|        |        |        |       | 103,000   |                    |
|        |        |        |       | tons.     |                    |
|        |        |        |       |           |                    |
|        |        |        |       | \- The    |                    |
|        |        |        |       | industry  |                    |
|        |        |        |       | is the    |                    |
|        |        |        |       | same as   |                    |
|        |        |        |       | p         |                    |
|        |        |        |       | oultry's. |                    |
+--------+--------+--------+-------+-----------+--------------------+
| Sa     | 321    | 4.2%   | 25%   | \- Major  | \- There is a      |
| usages | tons   |        |       | exporters | high-end segment   |
|        |        | (in    | TPA:  | are       | for gourmet        |
| HS     | (\     | mature | 5     | Chile,    | sausages, where    |
| 1601   | $0.484 | m      | years | Spain and | the U.S. can       |
|        | mi     | arket) | l     | Italy.    | compete.           |
|        | llion) |        | inear |           |                    |
+--------+--------+--------+-------+-----------+--------------------+
| Ham,   | 27     | 0.15%  | 25%   | \- Major  | \- The U.S. has    |
| pro    | tons   |        |       | suppliers | quality to         |
| cessed |        |        | TPA:  | in Spain. | introduce products |
|        | (\$0.2 |        | 7     |           | in the gourmet     |
| HS     | mi     |        | years |           | market             |
| 1      | llion) |        | l     |           |                    |
| 60241, |        |        | inear |           |                    |
| 160242 |        |        |       |           |                    |
+--------+--------+--------+-------+-----------+--------------------+
| Beer   | 8,180  | 694%   | 17%   | \- Local  | \- Growth in 2005  |
|        | liters |        |       | breweries | was 666% due to    |
| (HS    |        | (9.2%  | TPA:  | are very  | imports from       |
| 2203)  | (\$5   | of     | Duty  | strong,   | Brasil made by a   |
|        | mi     | annual | free  | owned by  | new brewery.       |
|        | llion) | growth |       | inte      |                    |
|        |        | from   |       | rnational | \- Growing         |
|        |        | 2002   |       | c         | consumption of     |
|        |        | --     |       | ompanies. | beer (28 lts per   |
|        |        | 2004)  |       |           | capita)            |
+--------+--------+--------+-------+-----------+--------------------+

*Note: TRQ = Tariff Rate Quota, on a first-come first-serve basis.*

Source: World Trade Atlas, Ministry of Agriculture (Minag), Gestion
Newspaper.

**C. Products not Present Because They Face Significant Barriers**

Poultry and pork products are currently banned due to phytosanitary
issues. However, we are looking forward the reopening of this market
soon.

# Section V. Key Contacts and Further Information 

If you have any question or comments regarding this report or need
assistance exporting to Peru, please contact the Foreign Agricultural
Service in Lima at the following address:

U.S. Embassy Lima, Foreign Agricultural Service (FAS)

Mailing Address: Office of Agricultural Affairs, Unit 3785, APO AA 34031

Address: Av. La Encalada cdra. 17, Monterrico, Lima 33

Phone: (511) 434-3042

Fax: (511) 434-3043

E-mail: <Aglima@usda.gov>

For further information, check the FAS web site
[www.fas.usda.gov](http://www.fas.usda.gov/) or our web site
[www.usdaperu.org.pe](http://www.usdaperu.org.pe/). Please, also refer
to our other current food market related reports: Exporter Guide, Food
and Agricultural Import Regulations and Standards (FAIRS), FAIRS Export
Certificate, Food Processing Ingredients Sector and Retail Food Sector.

Ministry of Foreign Trade and Tourism (MINCETUR)

Minister: Alfredo Ferrero

Address: Calle Uno Oeste 650, Urb. Corpac, San Isidro, Lima 27

Phone: (511) 513-6100

Fax: (511) 224-3362

Web site: [www.mincetur.gob.pe](http://www.mincetur.gob.pe/)

Hotel and Restaurant Association (AHORA)

President: Adolfo Perret

Address: Av. Benavides 881, Miraflores, Lima 18

Phone: (511) 444-7825

Fax: (511) 444-4303

E-mail: <ahora@infonegocio.com.pe>

Web site: [www.ahoraperu.com](http://www.ahoraperu.com/)

American Chamber of Commerce (AmCham Peru)

Executive Director: Aldo Defilippi

Address: Av. Ricardo Palma 836, Miraflores, Lima 18

Phone: (511) 241-0708 / 705-8000

Fax: (511) 241-0709

E-mail: <amcham@amcham.org.pe>

Web site: [www.amcham.org.pe](http://www.amcham.org.pe/)