Interview with Carlos Enrique Camet, president of the Agricultural Producers Association of Guilds of Peru (AGAP).
How does AGAP evaluate the sector this year?
This is a challenging year for the agriculture sector, especially for agricultural exports, as international markets continue to be financially complicated and this affects demand. On the other hand, the offer has been losing competitiveness because of increases in production costs, especially labour, coupled with the devaluation of the dollar, significantly impacting the viability of the business.
But you will continue growing?
We expect to keep growing as a result of the investments done in the previous years, but the issue of internal costs increasingly worries us.
Is there any interest from new companies to venture into the agro sector?
There is an interest to invest from both domestic and foreign companies given that the fundamentals of climate, soil and the production window are very favourable for international markets. Similarly, agricultural entrepreneurs from Mexico, Chile, Argentina and Brazil, see in Peru an opportunity to expand their production and diversify their business risk.
What crops are they attracted by?
They are interested the most in investing in grapes in the north of the country, avocados and cranberries on the coast and mountains. Several companies are also interested in the cocoa in the forests.
Are companies interested in migrating crops?
Probably, some of the lands of asparagus will give way to fruit crops, such as avocados and citrus. The cultivation of asparagus has a lifespan of 10 years, and you can't plant asparagus on asparagus.
How do you see avocado crops this year?
The planted hectares volume of avocados has been increasing year after year. This year we expect to produce 20,000 tons more than last year, for a total of 95,000 exportable tonnes. The growth rate is 1,000 to 1,500 hectares per year.
Are you looking for new areas to cultivate?
We are searching for new areas to grow avocados, for example, the mountains. The new regions would allow us to have a longer production window and in some cases improve yields.
Currently, how many companies grow avocados?
There are more than 70 companies producing avocado in Prohass, which group about 10,000 hectares of crops. There are also other unregistered small productive units.
How much will exports grow this year?
They will be between 75,000 and 95,000 tonnes.
Source: gestion.pe