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T angerines and tangelos which are citrus fruits of Asian origin
have found in Peru the ideal conditions for cultivation. As a result
of high quality and variety, Peruvian citrus fruit production is
enjoyed by many international markets. Satsumas, Okitsu, Owari,
Clementine and Nova are assortments of tangerines harvested in
Peru, while Minneola is the most popular variety of tangelo found
in the Andean country.
It is important to note the key role of the Peruvian producer’s
association Procitrus, which specializes in opening commercial
channels and promoting the use of the latest technology.
Procitrus also ensures that the production meets the high
quality parameters and health standards applicable in the main
international markets.
Expansion of citrus fruits throughout the world
- The citrus family, formed by tangerines and others (including
tangelos) is one of the 5 highest selling fresh fruits in the world
with an import volume close to 2.8 million tonnes. It is also one
of the top 10 fruits produced worldwide with approximately 23
million tonnes.
- The worldwide import of tangerines and tangelos has increased
at an average rate of 4% from 1995 to 2004, only surpassed
by lemons. Oranges and family made up of bitter oranges and
grapefruit have also increased but not at such a prosperous rate.
- The six most important international markets for tangerines and
other citrus fruits are Germany (accounting for 12.8% of the total
imported worldwide in 2004), United Kingdom (11.5%), France
(11.2%), Russia (8.9%), Czech Republic (6%) and Holland (5.3%).
Currently, the principal consumers of Peruvian citrus fruits are
Holland, Canada and the UK while other markets with great
potential are the Czech Republic and Russia.
Growth in production and exports in Peru
Between 2000 and 2005, Peru experienced a yearly average
growth both in the volume of production of 9.3% and 3.1%
in cultivated lands. Out of the 12,330 hectares harvested for
tangerines and tangelos in 2005, nearly to 4,600 were export
oriented.
In the same period, the amount of citrus fruits exported by Peru
grew at an annual average rate of 98.3%, reaching 29.2 thousand
tonnes in 2005 (US$ 18 million).
Investment opportunities in Peru’s agroindustrial sector:
- High yield and quality – The performance of Peruvian citrus
fruits (an average of 21.6 tonnes/ha between 2003 - 2005)
is clearly above the worldwide average (12.3 tonnes/ha). In
addition the Peruvian producers who employ advanced
technology produce up to 60 tonnes/ha of Clementine, 80
tonnes/ha of Satsuma and 100 tonnes/ha of tangelos.
- Optimal farming conditions – The
Peruvian coast zone is devoted to citrus
production destined for export, mainly
because of the appropriate irrigation
infrastructure and optimal climate. Peru
can market their citrus fruits all year
round thanks to the excellent yield of
“early” and “very early” varieties.
- Infrastructure development – New
irrigation infrastructure, the
modernization of ports, airports,
highways and telecommunications
around the main centres of agribusiness
activity provide the possibility of
higher yields, quick distribution and
competitive production.
- High quality, low cost human
resources – Peru has low-cost skilled
human resources and investors can
benefit from excellent exchange
rates. The average daily earning,
for an 8-hour working day, is US$
5.9 for a peasant, US$ 14.6 for a
certificated agriculturist and US$
8.8 for a field technician. Thus, the
labor costs in Peru are much more
competitive than in those of its
main competitors, such as Mexico
and Chile (cost of 2 to 1 compared
to Peru), South Africa (4 to 1), Israel
and France (9 to 1), Spain (11 to 1)
and the USA (16 to 1) .
- Trade Agreements with the
world’s major markets – Peru
enjoys preferential access to the
leading international markets.
Peru has concluded a Free Trade
Agreement (FTA) with the USA; is a member of the Andean
Community; enjoys preferential treatment from the European
Union under the Generalized System of Preferences (GSP);
maintains economic complementation agreements with
most Latin American countries, including MERCOSUR, and it is
negotiating FTAs with Thailand and Singapore. Peru is also a
member of the Asia Pacific Economic Cooperation Forum (APEC).
In addition, the phytosanitary restrictions in the North American
market imposed on Peruvian citrus fruits were lifted on May
2005.
- Tax benefits – Exports from Peru are exempt from VAT, while
other tariffs on intermediate imports are fully refunded.
- Legal framework – Activities in agriculture and agribusiness
sector are fully backed by the guarantees established in the legal
framework of Peru.
1
Estimates based on ILO data
During the autumn and winter, citrus fruits are the most sought fruits due to their high
vitamin C content which strengthens the immune system to fight colds and infections.
Thanks to their antioxidant power, citrus fruits contribute to slowing down cellular
ageing and protecting against a number of respiratory illnesses. Other benefits include
positively affecting cholesterol metabolism, prevention of skin diseases and its fibre
content helps digestion and intestinal activity. Tangerines and tangelos are highly
valued by worldwide consumers for their sweet pulp, aroma, delicacy and being less
acidic than other citrus fruits.