Peru: the new king of “blue gold”

Peru is one of the 5 largest producers of avocado, blueberry, artichoke and asparagus, one of the 10 largest producers in the world of coffee and cocoa, one of the 15 largest producers in the world of potato and pineapple, and also has a considerable production of grape, sugarcane, rice, banana, maize and cassava; its agriculture is considerably diversified.

Peru has broken through in the world of forest fruits. The South American country has become the main exporter of blueberries on the planet, surpassing great powers such as the U.S., Canada and Chile. After being a minor competitor for the past decade, it has crowned itself the king of so-called “blue gold.”

The recipe for success has several ingredients: a perfect habitat (the coastal desert, with significant plots of land for large-scale production), the development of sophisticated irrigation systems (which have allowed for high productivity), science-based agriculture (with difficult research work in plant genetics) and a group of companies open to exploring new varieties to satisfy the market.

In 2022, the Andean country exported 287,806 tons of blueberries, worth about $1.4 billion. This figure represents a historical record — the fourth in a row for a national enterprise that, in 2012, didn’t sell any blueberries beyond its borders.

Currently, Peruvian farmers produce the fruit throughout the year, although the peak of production occurs between September and October. There are more than 20,000 hectares devoted to blueberries, which are sold in 30 nations. The country ranks third as a producer, after the US and China, it is estimated that 135,000 direct jobs have been created thanks to the success of blueberry growing in Peru.

As for the varieties, more than 65 different ones have been certified. Gereda — in collaboration with the University of Georgia — is developing new ones. “The blueberry is the last great agro-export product in the country, but it was preceded by asparagus, grapes and avocados,” explains Piero Ghezzi, founding partner of HacerPerú and a former Peruvian minister of production.

Ghezzi points out that the recent success is due to a confluence of factors. Firstly, because of the public policy decisions that the country has taken in recent decades. Among them, the development of irrigation projects along the Peruvian coast, the strengthening of Senasa — the health inspection entity in charge of opening new export markets — as well as the Agrarian Promotion Law. Passed in 2000, the legislation established a special tax and labor protocol, as well as free trade agreements signed with different markets, including the United States, China and the EU, which have allowed for duty-free exports.

The boom, however, is not without its risks. The main one is farmers expanding production too fast,. This could put pressure on margins and prices, which have already been on the decline in recent years. And then, there are other factors: competition from other countries, geopolitical tensions (such as the war in Ukraine, which has increased the costs of inputs), logistical difficulties, internal political unrest and the effects of climate change.