Required Report - public distribution

**Date:** 11/6/2006

**GAIN Report Number:** PE6022

PE6022

**Peru**

**Exporter Guide**

**Annual**

**2006**

**Approved by:**

![](media/image1.wmf)Eugene Philhower

U.S. Embassy

**Prepared by:**

Violeta Gutierrez

**Report Highlights:**

Peru\'s economy is one of the most vibrant in Latin America today. The
U.S. - Peru Trade Promotion Agreement (TPA), pending U.S. Congressional
approval will offer duty preferences for U.S. exporters of high-value
products such as meats, cheeses, snacks, fresh fruits, prepared fruits
and vegetables, pet foods and food ingredients. This report summarizes
key trade and market conditions to help U.S. importers make the most of
the U.S. - Peru TPA opportunities.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Lima \[PE1\]

\[PE\]

**Table of Contents**

Section I. Market Overview *[Page 3 of 13]{.underline}*

Section II. Exporter Business Tips *[Page 4 of 13]{.underline}*

Section III. Market Sector Structure and Trends *[Page 6 of
13]{.underline}*

Section IV. Best High-Value Product Prospects *[Page 7 of
13]{.underline}*

Section V. Key Contacts and Further Information *[Page 10 of
13]{.underline}*

Table A. Key Trade & Demographic Information

Table B. Consumer Food & Edible Fishery Product Imports

Table C. Top 15 Suppliers of Consumer Foods & Edible Fishery Products

**Section I. Market Overview**

Over the past decade, Peru has been transformed by market-oriented
economic reforms and privatizations and has met many of the conditions
for long-term growth. Peru's economy is one of the most vibrant in Latin
America. In 2005, Gross Domestic Product (GDP) reached \$78.4 billion,
growing an estimated 6.4 percent, and 6.8 percent in the first three
months of 2006. GDP growth was driven by construction, mining, foreign
investment, domestic demand and exports.

  --------------------------------------- ---------- ---------- ----------
  **Domestic Economy**                    **2003**   **2004**   **2005**

  Nominal GDP (U.S. \$ billions)          60         67         78.4

  Real GDP Growth (%)                     3.8        4.5        6.4

  GDP per capita (nominal U.S. \$)        2,212      2,518      2,591

  Ave. annual exchange rate (new          3.5        3.3        3.3
  soles/\$)                                                     

  Inflation (Dec. to Dec. %)              2.5        3.5        1.7

  Central Govt. Spending (% GDP)          16.4       15.3       15

  Foreign Exchange Reserves (\$millions)  10,194     12,631     15,000
  --------------------------------------- ---------- ---------- ----------

Source: Central Reserve Bank of Peru,
[www.bcrp.gob.pe](http://www.bcrp.gob.pe/) (2003-2005)

In 2005, total food sales were estimated at \$5 billion. Total
consumer-oriented food imports reached \$339 million, growing 17 percent
over 2004. The U.S. was the fourth largest supplier (\$30 million), with
nine percent of market share, facing stiff competition from Chile (25
percent), Colombia and Argentina (12 and 13 percent respectively). Food
imports are distributed among a number of sectors, with 56 percent
directed towards the retail sector, and 24 and 20 percent directed
towards the food processing and the food service sectors, respectively.

U.S. exports to Peru in terms of total sales have traditionally been
bulk commodities - wheat, coarse grains and cotton with wheat accounting
for approximately 50 percent of sales. From 2004 to 2005, total U.S.
exports for agricultural, fish and forestry products declined 29 percent
due to a sharp decrease in wheat sales. However, sales of U.S.
consumer-oriented products increased by 21 percent.

The U.S. -- Peru Trade Promotion Agreement (TPA), pending U.S.
Congressional approval, should be implemented on January 1, 2007. The
U.S. -- Peru TPA will immediately provide duty free access for
two-thirds of U.S. food and agricultural products, including
high-quality beef, cotton, wheat, soybeans, soybean meal and crude
soybean oil; key fruits and vegetables (including apples, pears,
peaches, cherries and almonds); food ingredients and many processed food
products including frozen french fries, cookies and snack foods. Tariffs
on most remaining U.S. farm products will be phased out within 15 years,
with all tariffs eliminated in 17 years.

Lima is the major market for consumer-oriented foods with almost one
third of Peru's total population and more than 60 percent of the
national income. In 2005, high and middle-income consumers, the main
market for U.S. food sales, reached around 1.8 million inhabitants, with
a monthly family income of \$1,120 on average. Middle-low income
consumers account for 2.7 million people, but constitute an important
source for future

expansion. Unemployment in Lima has increased in recent months to 9
percent, from 8.5 percent in 2005, while underemployment accounts for
more than 56 percent.

**Advantages and Challenges Facing U.S. Products in Peru**

+-----------------------------------+-----------------------------------+
| **Advantages**                    | **Challenges**                    |
+-----------------------------------+-----------------------------------+
| -   Upcoming U.S.- Peru TPA will  | -   Peru is negotiating trade     |
|     grant duty free access to     |     agreements with other         |
|     two-thirds of U.S. food and   |     countries, which could lessen |
|     agricultural products.        |     competitive advantage of the  |
|                                   |     U.S.                          |
| -   Open market for previously    |                                   |
|     banned products (beef,        | -   Consumer habits, Peruvians    |
|     offals, poultry, pork)        |     prefer meals based on fresh   |
|                                   |     products and spicy            |
| -   Growing food processing and   |     seasonings.                   |
|     HRI sectors that will demand  |                                   |
|     more food ingredients.        | -   Lack of brand awareness among |
|                                   |     consumers.                    |
| ```{=html}                        |                                   |
| <!-- -->                          | -   New local food brands         |
| ```                               |     appearing in the market at    |
| -   Proactive supermarket         |     very low prices.              |
|     industry that will result in  |                                   |
|     increased demand for          | -   Relatively small market due   |
|     high-value products.          |     to limited purchasing power;  |
|                                   |     76 percent of Peruvian        |
| ```{=html}                        |     population are low-income     |
| <!-- -->                          |     consumers.                    |
| ```                               |                                   |
| -   Increased tourism creates new | -   Supermarkets, the main source |
|     opportunities for food        |     of imported food products,    |
|     service development.          |     account for only 24 percent   |
|                                   |     of total retail food sales in |
| ```{=html}                        |     Lima.                         |
| <!-- -->                          |                                   |
| ```                               | -   Government campaign called    |
| -   Fast food chains expanding in |     "Buy Peruvian" to encourage   |
|     major cities.                 |     purchase of local products.   |
|                                   |                                   |
| -   Appreciation for U.S. food    | -   Smuggling.                    |
|     quality and culture.          |                                   |
|                                   |                                   |
| ```{=html}                        |                                   |
| <!-- -->                          |                                   |
| ```                               |                                   |
| -   People are becoming aware of  |                                   |
|     diet, lite and healthy food   |                                   |
|     products through media.       |                                   |
+-----------------------------------+-----------------------------------+

## Section II. Exporter Business Tips

-   Two-thirds of U.S. food and agricultural products will be exported
    to Peru duty free immediately. The complete list of products that
    will be benefited from the U.S. -- Peru TPA can be found at:

> <http://www.ustr.gov/Trade_Agreements/Bilateral/Peru_TPA/Section_Index.html>

-   Imported food products have tariff rates that range between 12 and
    25 percent. These tariffs will decrease or be eliminated as soon as
    the U.S.- Peru TPA is implemented.

-   All imports are subject to a 19 percent local sales tax. Wine and
    liquors are assessed an additional selective consumer tax (ISC) of
    20 percent; water and sodas, 17 percent and beer, 27.8 percent.

-   For further information on food standards and regulations, labeling
    and import procedures please refer to our latest Food and
    Agricultural Import Regulation and Standards Report PE6014.

-   **Food standards and regulations**

> Sanitary inspection, food registration, packaging and control
> regulations for food and beverages are included in the Supreme Decree
> No. 007-98-SA of September 25, 1998. The General Environmental Health
> Bureau (DIGESA), within the Ministry of Health, is the Peruvian
> counterpart to the Food and Drug Administration (FDA) regarding
> sanitary supervision and registration of food and beverages. The
> National Agricultural Sanitary and Phytosanitary Service (SENASA),
> part of the Ministry of Agriculture, is the local counterpart to the
> U.S. Department of Agriculture (USDA) concerning the development of
> sanitary and phytosanitary regulations and the inspection of animal
> and plant origin products. The National Institute for the Defense of
> Competition and for the Protection of Intellectual Property (INDECOPI)
> is the agency in charge of labeling standards, labeling control and
> trademarks.

-   **General import and inspection procedures**

In order to clear Customs (SUNAT) imports must have a Unique Customs
Declaration (DUA), a commercial invoice, an airway bill or bill of
lading, a packing list, an insurance letter and a food sanitary registry
for food processed products from DIGESA or a health certificate for
animals, plants or their by-products complying with SENASA's import
requirements.

Once the customs agent transmits the DUA electronically, SUNAT will
determine the type of control for the merchandise within the following
channels: green, orange and red. Channel green permits delivery of the
product once duties are paid; channel orange requires review of the
documentation and channel red requires review of the documentation and
physical inspection.

-   **Food and beverage sanitary registration**

> The importer needs to submit a sworn application to DIGESA (available
> at [www.digesa.sld.pe](http://www.digesa.sld.pe/)) accompanied by a
> certificate of free trade and use, the future label and the
> registration receipt (\$69 approximately). If the certificate is not
> available, the importer should present a document issued by the
> Peruvian Consulate in the country of origin. The sworn application
> includes the contact information of the importer's company and the
> manufacturer, his tax payer's identification (R.U.C.), the list of
> products requested and for each product the content, results of
> physical-chemical and microbiological analysis, lot code system,
> expiration date, packing material and storage conditions.
>
> This procedure will take no more than seven working days. The Sanitary
> Registration will be valid for five years from the date of issue and
> may be renewed between seven and sixty working days before the
> expiration date.

-   **Certificates for animals, plants and their by-products**

Before the product is shipped, the importer must request an import
permit from SENASA (\$25 approximately). The exporter must provide to
the importer the corresponding official health certificate of the
country of origin, including the specific certification requirements of
SENASA.

> USDA agencies that issue health certificates for Peru are the Animal
> and Plant Health Inspection Service (APHIS) for animals and plants and
> their derived products, the Food
>
> Safety and Inspection Service (FSIS) for meats and their by-products
> and the Agricultural Marketing Service (AMS) for U.S. dairy products.

-   **Labeling requirements**

> Imported packaged foods must carry a separate adhesive label before
> reaching the point of sale with a Spanish translation of the label
> including the importer/distributor's contact information and R.U.C.
> Law 28405 of November 30, 2004 requires labeling for value-added
> products other than foods (which could be included in the future).
> Imported value-added products that do not comply with the provisions
> of this law, will require to be properly label in private storages for
> customs clearance.

**Section III. Market Sector Structure and Trends**

-   In order to enter the Peruvian food market, U.S. exporters should
    contact local food processing companies,
    importers/wholesalers/distributors directly or indirectly through
    brokers, agents or representatives.

-   Regardless of which strategy is chosen, 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 partner should be able to provide updated information on
    market consumer trends, current market development (merchandising,
    point of sales and promotion activities) and trade business
    practices.

-   **Food Service Sector**

> In 2005, total food service sales accounted for approximately \$190
> millions, considering only the formal sector. More than 60 percent of
> this amount corresponded 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, 36 percent of total
> food service sales.

The niche market for U.S. exporters in this sector includes 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. The main
international food franchises represented in Peru are KFC, McDonalds,
Pizza Hut, Chili's, Domino's Pizza and Burger King. The local owned
Bembos leads the fast food sales with half of the hamburger market (\$14
million).

> International tourist arrivals have grown 7 percent annually in the
> last five years. In 2004, 1.3 million tourists spent \$1 billion
> during their visit. In addition, two million local tourists traveled
> within the country, creating demand for food services. Along with
> tourism growth, new investments in lodging of the international hotel
> chains ACCOR, Meliá, Casa Andina, Ramada, Orient Express and Marriott
> are expected.
>
> Products for the food service that will be benefited from the U.S. --
> Peru TPA with lower or duty free tariffs include food ingredients,
> fruits, cheeses, processed fruits and vegetables, meats and
> specialties.

-   **Food Processing Sector**

> In 2005, total food processing sector sales were estimated at \$3.2
> billion of which \$81 million were imported. Annual growth of this
> sector for total sales is estimated at four percent and for food
> imports at three percent.
>
> Food processors are concentrated in 86 companies, which represent 75
> percent of total sales. Local food-processing companies include
> Alicorp (dairy, snacks, food ingredients, sauces, pasta), Gloria and
> Laive (dairy products), San Fernando and Avinka (poultry meat and
> by-products), Industrias Añaños (sodas), Montana (food ingredients)
> and Destilería Peruana (alcoholic beverages).
>
> Major prospects for the U.S. in the food processing sector include
> food ingredients for the dairy, flavorings and baked goods industry.

-   **Food Retail Sector**

> In 2005, the total food retail market was estimated at \$5 billion, of
> which 80 percent is concentrated in Lima. Supermarket chains surpassed
> \$1 billion in food sales, growing 12 percent on average in the last
> four years. They represent 24 percent of the market share in Lima and
> 20 percent nationwide.
>
> Wong and Supermercados Peruanos, both Peruvian companies, are the two
> major supermarket chains. Tottus Hypermarkets is the newest one. Wong
> and Supermercados Peruanos hold 60 percent and 28 percent of the
> supermarket market share, respectively (Apoyo Consulting Group).
>
> Supermarkets are expanding quickly to peripheral areas around Lima,
> which offer significant potential for increased sales. These fast
> growing areas are constituted by low-income families, mostly concerned
> about price, and quite indifferent to brand names and quality
> concerns.
>
> Wong and Supermercados Peruanos are also developing strategies to keep
> their position in the high-end sector by renovating and re-opening
> existing high-end stores. Wong modernized its logo and is selling
> their customers the idea of better service with fair prices.
> Supermercados Peruanos is gradually re-opening its existing "Santa
> Isabel" stores offering a different brand and a more modern layout
> with supermarkets called "Vivanda" and hypermarkets called "Plaza
> Vea".
>
> The target market for supermarkets in Lima is divided into two groups:
> high and middle-income families with an average income per month of
> \$1,000 and around 1.6 million inhabitants and low income families
> whose average income per month is \$250 representing around 6.3
> million inhabitants.
>
> Five percent of the consumer-oriented products sold in supermarkets
> are imported. Although they are particularly sensitive to economic
> conditions, there is potential for U.S. food exports in snacks, fruit
> and vegetable juices, fresh fruits (especially pears, apples and
> grapes), canned fruits and vegetables, dairy products (especially
> cheeses), wines and liquors and pet foods.

### Section IV. Best High-Value Product Prospects

-   Peru gives tariff preferences to the Andean Community (Bolivia,
    Colombia, Ecuador and Venezuela), and to Mexico, Paraguay,
    Argentina, Brazil, Uruguay and Cuba.

-   Peru's trade policy is oriented to open markets. Peru has signed an
    Economic Complementation Agreement (ECA) with MERCOSUR, a major U.S.
    competitor in bulk commodities and meats, exempting dairy products
    from the negotiations. Peru recently expanded its ECA with Chile,
    Peru's major supplier of food and agricultural goods and has begun
    talks for an ECA with Mexico. Peru is a member of the Andean
    Community of Nations (CAN), which is seeking a free trade agreement
    with the E.U. Peru is also negotiating a free trade agreement with
    Thailand.

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

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

+-------+-------+-----+-----+-----+--------------+-------------------+
| **Pr  | **M   | **I | 200 | **  | **Key        | **Market          |
| oduct | arket | mpo | 2-2 | Imp | Constraints  | Attractiveness    |
| Categ | Size  | rts | 006 | ort | over Market  | for the U.S.**    |
| ory** | 2006  | 2   |     | Tar | D            |                   |
|       | e     | 006 | **A | iff | evelopment** |                   |
|       | st.** | est | vg. | Rat |              |                   |
|       |       | .** | Ann | e** |              |                   |
|       |       |     | ual |     |              |                   |
|       |       |     | Imp |     |              |                   |
|       |       |     | ort |     |              |                   |
|       |       |     | Gr  |     |              |                   |
|       |       |     | owt |     |              |                   |
|       |       |     | h** |     |              |                   |
+-------+-------+-----+-----+-----+--------------+-------------------+
| Other | N/A   | 11, | 13  | 12% | \- Major     | \- Access under   |
| food  |       | 705 | .5% |     | competitors  | TPA: duty free.   |
| pre   |       | MT  | (re |     | are          |                   |
| para- |       |     | cov |     | neighbors:   | \- U.S. is the    |
| tions |       | (\  | eri |     | Chile (29%)  | third supplier    |
|       |       | $67 | ng) |     | and Colombia | with 14% of       |
| (HS   |       | mi  |     |     | (25%).       | market share.     |
| 2106) |       | lli |     |     |              |                   |
|       |       | on) |     |     |              | \- The market     |
|       |       |     |     |     |              | (food service and |
|       |       |     |     |     |              | food processing   |
|       |       |     |     |     |              | sectors) is open  |
|       |       |     |     |     |              | to new products   |
|       |       |     |     |     |              | such as protein   |
|       |       |     |     |     |              | concentrates and  |
|       |       |     |     |     |              | preparations for  |
|       |       |     |     |     |              | beverages.        |
+-------+-------+-----+-----+-----+--------------+-------------------+
| Snack | \$36  | 17, | 9   | 25% | \- Major     | \- Access under   |
| foods | mill  | 586 | .2% |     | suppliers    | TPA: duty free    |
|       | ion\* | MT  |     |     | are neighbor | for major U.S.    |
|       | (ext  |     | (   |     | countries    | exports           |
|       | ruded | (\$ | gro |     | Colombia     | (confectionary,   |
|       | and   | 41. | w-i |     | (32%), Chile | cookies, prepared |
|       | f     | 2mi | ng) |     | (22%) and    | potatoes); other  |
|       | ried, | lli |     |     | Ecuador      | products will     |
|       | con   | on) |     |     | (7%).        | enter 3 to 5      |
|       | fecti |     |     |     |              | years linear.     |
|       | onary |     |     |     |              |                   |
|       | is    |     |     |     |              | \- Market with    |
|       | not   |     |     |     |              | potential growth  |
|       | incl  |     |     |     |              | in HRI and        |
|       | uded) |     |     |     |              | Retail.           |
|       |       |     |     |     |              |                   |
|       |       |     |     |     |              | \- U.S. quality   |
|       |       |     |     |     |              | is appreciated.   |
+-------+-------+-----+-----+-----+--------------+-------------------+
| F     | N/A   | 45, | 9%  | 25% | \- Chile is  | \- Access under   |
| ruits |       | 903 | (   |     | the major    | TPA: duty free    |
| and   |       | TM  | gro |     | competitor   | for major U.S.    |
| veget |       |     | wth |     | (48%) due to | exports (French   |
| ables |       | (\  | is  |     | low prices.  | frozen fries,     |
| proc  |       | $40 | s   |     |              | soups and their   |
| essed |       | mi  | low |     | \-           | preparations,     |
|       |       | lli | ing |     | Netherlands  | mayonnaise);      |
|       |       | on) | do  |     | and the U.S. | other products    |
|       |       |     | wn) |     | account for  | will enter 3 to 5 |
|       |       |     |     |     | 10% each.    | years linear.     |
|       |       |     |     |     |              |                   |
|       |       |     |     |     |              | \- Consumer       |
|       |       |     |     |     |              | preferences       |
|       |       |     |     |     |              | especially for    |
|       |       |     |     |     |              | U.S. soups and    |
|       |       |     |     |     |              | sauces.           |
|       |       |     |     |     |              |                   |
|       |       |     |     |     |              | \- U.S. exports   |
|       |       |     |     |     |              | are expected to   |
|       |       |     |     |     |              | grow 30% in 2006. |
+-------+-------+-----+-----+-----+--------------+-------------------+
| Red   | 16    | 25, | 13  | 25% | \- Major     | \- Access under   |
| Meats | 5,300 | 531 | .3% |     | suppliers    | TPA: duty free    |
| f     | MT    | TM  |     |     | are big beef | for prime beef,   |
| resh, |       |     | (re |     | producers    | duty free for a   |
| chi   | (\$12 | (\  | cov |     | for the      | quota of 800 TM   |
| lled, | mil   | $33 | eri |     | region:      | for standard      |
| f     | lion) | mi  | ng) |     | Argentina    | quality beef and  |
| rozen |       | lli |     |     | (46%),       | 10,000 TM for     |
|       |       | on) |     |     | Brazil (21%) | beef offals.      |
|       |       |     |     |     | and Paraguay |                   |
|       |       |     |     |     | (19%).       |                   |
+-------+-------+-----+-----+-----+--------------+-------------------+

+-------+-------+-----+-----+-----+--------------+-------------------+
| **Pr  | **M   | **I | 200 | **  | **Key        | **Market          |
| oduct | arket | mpo | 2-2 | Imp | Constraints  | Attractiveness    |
| Categ | Size  | rts | 006 | ort | over Market  | for the U.S.**    |
| ory** | 2006  | 2   |     | Tar | D            |                   |
|       | e     | 006 | **A | iff | evelopment** |                   |
|       | st.** | est | vg. | Rat |              |                   |
|       |       | .** | Ann | e** |              |                   |
|       |       |     | ual |     |              |                   |
|       |       |     | Imp |     |              |                   |
|       |       |     | ort |     |              |                   |
|       |       |     | Gr  |     |              |                   |
|       |       |     | owt |     |              |                   |
|       |       |     | h** |     |              |                   |
+-------+-------+-----+-----+-----+--------------+-------------------+
| Fresh | 3,700 | 50, | 15% | 25% | \- Chilean   | \- U.S. exports   |
| f     | MT    | 119 |     |     | imports come | in a window       |
| ruits |       | MT  | (   |     | duty free.   | different from    |
|       |       |     | gro |     |              | Chile.            |
|       |       | (\  | w-i |     | \- Chile     |                   |
|       |       | $28 | ng) |     | keeps 98% of | \- U.S. pears and |
|       |       | mi  |     |     | imports and  | recently grapes   |
|       |       | lli |     |     | the U.S.     | are imported for  |
|       |       | on) |     |     | 1.7%.        | the high-end      |
|       |       |     |     |     |              | market.           |
+-------+-------+-----+-----+-----+--------------+-------------------+
| Wine  | 11.6  | 32  | 10  | 17% | \- Major     | \- Access under   |
| and   | mi    | m   | .5% |     | exporters of | TPA: duty free    |
| Beer  | llion | ill |     |     | wine are     | for beer and five |
|       | l     | ion | (   |     | Argentina    | years linear for  |
|       | iters | lit | flu |     | (28.4%) and  | wine.             |
|       | (     | ers | ctu |     | Chile (26%)  |                   |
|       | wine) |     | ati |     | and of beer  | \- There is a     |
|       |       | (\  | ng) |     | is Brazil    | niche market for  |
|       | 464   | $16 |     |     | (21%).       | quality wines on  |
|       | mi    | mi  |     |     |              | which the U.S.    |
|       | llion | lli |     |     | \- Strong    | can be            |
|       | l     | on) |     |     | promotions   | appreciated and   |
|       | iters |     |     |     | from         | price competitive |
|       | (     |     |     |     | competitors. | according to      |
|       | beer) |     |     |     |              | future benefits   |
|       |       |     |     |     | \- Only      | from the TPA.     |
|       |       |     |     |     | regular wine |                   |
|       |       |     |     |     | consumers    | \- Post promotes  |
|       |       |     |     |     | recognize    | U.S. wines taking |
|       |       |     |     |     | U.S. wine    | advantage of the  |
|       |       |     |     |     | quality.     | growing market    |
|       |       |     |     |     |              | for cheeses       |
|       |       |     |     |     |              | targeting the     |
|       |       |     |     |     |              | high-end sector.  |
|       |       |     |     |     |              |                   |
|       |       |     |     |     |              | \- Per capita     |
|       |       |     |     |     |              | annual wine       |
|       |       |     |     |     |              | consumption is    |
|       |       |     |     |     |              | growing, 1 liter  |
|       |       |     |     |     |              | for wine and 30   |
|       |       |     |     |     |              | liters for beer.  |
+-------+-------+-----+-----+-----+--------------+-------------------+
| Pet   | 4     | 15, | 16% | 12% | \- Growing   | \- Access under   |
| foods | 0,000 | 040 |     |     | local pet    | TPA: duty free,   |
|       | MT    | MT  |     |     | industry.    | or 5 years linear |
|       |       |     |     |     |              | for canned pet    |
|       |       | (\  |     |     | \- There is  | food.             |
|       |       | $11 |     |     | an informal  |                   |
|       |       | mi  |     |     | industry     |                   |
|       |       | lli |     |     | arising.     |                   |
|       |       | on) |     |     |              |                   |
+-------+-------+-----+-----+-----+--------------+-------------------+
| Po    | \$    | 10, | 13  | 25% | \- Strong    | \- Access under   |
| ultry | 1,000 | 871 | .1% |     | local        | TPA: quota of     |
| meat  | mi    | MT  |     |     | poultry      | 12,000 MT for     |
|       | llion |     | (R  |     | industry,    | chicken leg       |
|       |       | (   | isi |     | imports are  | quarters, two     |
|       |       | \$8 | ng) |     | mainly       | years linear for  |
|       |       | mi  |     |     | poultry      | mechanically      |
|       |       | lli |     |     | offals.      | de-boned chicken  |
|       |       | on) |     |     |              | meat and five     |
|       |       |     |     |     |              | years linear for  |
|       |       |     |     |     |              | poultry offals.   |
|       |       |     |     |     |              |                   |
|       |       |     |     |     |              | \- Peruvians are  |
|       |       |     |     |     |              | major consumers   |
|       |       |     |     |     |              | of poultry.       |
+-------+-------+-----+-----+-----+--------------+-------------------+
| Whey  | 7,386 | 7,  | 28  | 25% | \- Major     | \- U.S. is the    |
|       | MT    | 386 | .6% |     | competitors  | major supplier    |
| (HS   |       | MT  |     |     | are France   | with 22.5% of     |
| 0404) | (\$8  |     | (sl |     | (18%) and    | market share.     |
|       | mil   | (   | ow- |     | Chile (13%), |                   |
|       | lion) | \$8 | ing |     | which is     | \- Growing        |
|       |       | mi  | sli |     | growing      | market: multiple  |
|       |       | lli | ght |     | market       | uses in the food  |
|       |       | on) | ly) |     | share.       | industry.         |
|       |       |     |     |     |              |                   |
|       |       |     |     |     | \- Included  |                   |
|       |       |     |     |     | in price     |                   |
|       |       |     |     |     | band.        |                   |
+-------+-------+-----+-----+-----+--------------+-------------------+
| La    | 1,276 | 1,  | 48  | 4%  | \- The       | \- Access under   |
| ctose | MT    | 276 | .8% |     | industry     | TPA: duty free.   |
|       |       | MT  |     |     | imports low  |                   |
|       | (\$1  |     | (sl |     | amounts from | \- The U.S.       |
|       | mil   | (   | ow- |     | Germany and  | supplies almost   |
|       | lion) | \$1 | ing |     | Netherlands. | 100% of imported  |
|       |       | mi  | do  |     |              | lactose.          |
|       |       | lli | wn) |     |              |                   |
|       |       | on) |     |     |              |                   |
+-------+-------+-----+-----+-----+--------------+-------------------+

# 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: Food Processing
Ingredients Sector, Retail Food Sector and HRI Food Service Sector and
Food and Agricultural Import Regulations and Standards (FAIRS) and FAIRS
Export Certificate reports.

**Trade Associations**

*American Chamber of Commerce of Peru (AMCHAM)*

Executive Director: Aldo Defilippi

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

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

Fax: (511) 241-0709

Web site: [www.amcham.org.pe]{.underline}

E-mail: [amcham@amcham.org.pe]{.underline}

*National Society of Industries (SNI)*

President: George Schofield

Address: Los Laureles 365, San Isidro ‑ Lima 27

Phone: (511) 421-8830

Fax: (511) 442-2570

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

*Hotel and Restaurant Association (AHORA)*

President: Adolfo Perret

Address: Av. Benavides 881, Lima 18

Phone: (511) 444-7825

Fax: (511) 444-4303

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

**Ministries and Government Agencies**

*Ministry of Agriculture (MINAG)*

Minister: Eng. Jose Salazar

Address: Pasaje de Zela s/n, Piso 6 -- Lima 11

Phone: (511) 433-3034 / (511) 431-0424

Fax: (511) 431-0109

Web site: [www.minag.gob.pe]{.underline}

*The National Agricultural Sanitary and Phytosanitary Service (SENASA)*

Director: Dr. Jose Espinoza

Address: Pasaje Francisco de Zela s/n, Lima (10^th^ floor) -- Lima 11

Phone: (511) 313-3301

Fax: (511) 313-3315

Web site: [www.senasa.gob.pe]{.underline}

*General Environmental Health Bureau (DIGESA)*

General Director: Dr. Maria del Carmen Gastañaga

Address: Las Amapolas 350, Urbanizacion San Eugenio - Lima 14

Phone: (511) 442-8353 /440-0071

Fax: (511) 440-6797 / 422-6404

Web site: [www.digesa.sld.pe]{.underline}

*Customs (SUNAT)*

Superintendent: Dr. Nahil Hirsh

Address: Av. Garcilazo de la Vega 1472 -- Lima 1

Phone: (511) 315-3300

Fax: (511)315-3318

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

*National Institute for the Defense of Competition and for the
Protection of the Intellectual Property (INDECOPI)*

President: Mr. Jaime Thorne

Address: Calle de la Prosa 138 - San Borja

Phone: (511) 224-7800

Fax: (511) 224-0348

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

  -----------------------------------------------------------------------
  **APPENDIX 1. STATISTICS**

  -----------------------------------------------------------------------

**TABLE A. Key Trade & Demographic Information (2005)**

  ----------------------------------------------------------- -----------
  Agricultural Imports From All Countries (\$million)/ U.S.   1,553 / 16
  Market Share (%)^1/^                                        

  Consumer Food Imports From All Countries (\$ million)/ U.S. 327 / 8
  Market Share (%)^1/^                                        

  Edible Fishery Imports From All Countries (\$ million)/     27 / 0.2
  U.S. Market Share (%)^1/^                                   

  Total Population (Millions) / Annual Growth Rate (%)^2/^    27.2 / 1.4

  Urban Population (Millions) / Annual Growth Rate (%)^2/^    20.3 / 1.7

  Number of Major Metropolitan Areas ^2/\ 3/^                 1

  Size of the High-Middle Class (Millions) / Growth Rate      2 / 3%
  (%)^4/^                                                     

  Per Capita Gross Domestic Product (U.S. Dollars) -- 2005    1,626
  ^2/^                                                        

  Unemployment Rate -- 2003 (%)^5/^                           8.4

  Per Capita Food Expenditures (U.S. Dollars) ^6/^            131

  Percent of Females of Working Age ^2/\ 7/^                  51.1

  Exchange Rate (US\$1 = X.X local currency) ^6/^             \$1 = S/.
                                                              3.24
  ----------------------------------------------------------- -----------

> ^1/^ Source: Peru's Customs 2005.
>
> ^2/^ Source: Central Reserve Bank of Peru,
> [www.bcrp.gob.pe](http://www.bcrp.gob.pe/).
>
> ^3/^ Lima is the main city with 8.1 million inhabitants and 1.76% of
> annual growth. There are four other cities, Arequipa, Trujillo,
> Chiclayo and Piura, with more than 600,000 inhabitants.
>
> ^4/^ Source: "Peru 2003, Social Economical Levels". Apoyo consultancy.
>
> There are five social-economical levels in Peru of which A and B
> constitute the high-middle class. Family income in Lima raised 10% in
> 2005.
>
> ^5/^ Total Population in age of working (15 years or above) is
> estimated in 13.4 million. However, underemployment is 46 percent.
>
> ^6/^ High and middle class consumers expend on food \$290 per month.
>
> ^7/^ Women constitute seven million or 43 percent of the population in
> age of working. Eight percent of this amount is unemployed and 50
> percent is underemployed.
>
> ^8/^ Exchange rate as of September 2005. Local currency is the Sol.

###### 

###### TABLE B. CONSUMER FOOD & EDIBLE FISHERY PRODUCT IMPORTS

![](media/image2.wmf){width="5.997222222222222in"
height="3.563888888888889in"}

> Source: World Trade Atlas (2005)

**TABLE C. TOP 15 SUPPLIERS OF CONSUMER FOODS & EDIBLE FISHERY
PRODUCTS**

![](media/image3.wmf){width="6.333333333333333in" height="2.75in"}

Source: World Trade Atlas (2003 -- 2005)