Peru's Agriculture: Set to Overtake Mining by 2050

Peru's agriculture sector is projected to surpass mining as the main economic driver by 2050, thanks to increased exports and investment initiatives. The government is planning significant agricultural expansion through tax incentives and large-scale irrigation, with a focus on exporting meat products to China, the U.S., and Europe.


Devdiscourse News Desk | Updated: 31-01-2025 16:37 IST | Created: 31-01-2025 16:37 IST
Peru's Agriculture: Set to Overtake Mining by 2050

Peru is gearing up for a monumental shift in its economic landscape, with agriculture poised to outpace mining as the principal economic engine by 2050. According to Agriculture Minister Angel Manero, the sector recorded a 22% rise in exports in 2024, reaching $12.5 billion, and is expected to grow by $2 billion annually. The government's ambitions are anchored on boosting tax incentives and extensive irrigation initiatives to broaden agricultural lands.

Key to this transformation is the prospective launch of beef, pork, and poultry exports to China. This follows a recent agreement deepening the trade pact between the two countries. Peru also eyes expansion into U.S. and European markets and is currently in discussions to finalize a trade deal with India. These strategies are expected to elevate agro-exports to $40 billion by 2040.

Infrastructure improvements underpin these export goals, with plans to develop 500,000 hectares of farmland along the coast by 2026. Efforts also include revising forestry laws to enhance productivity on deforested land and potentially expanding African palm oil, coffee, and cacao plantations. Manero anticipates a new agrarian law reducing income tax to stimulate $1 billion in sector investment by 2025.

(With inputs from agencies.)

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