When comparing the dynamics of exports of non-traditional agricultural products in Chile and Peru with those of the Dominican Republic, one has to wonder what factors were at work in moving the latter away from the label "Eminently agricultural country" which was given decades ago. It has always been pointed out that the Dominican Republic is one of the Caribbean economies with the greatest potential for growth, driven by the expansion of exports of non-traditional agricultural products. What has happened, however, is that its growth, one of the highest in the region, appears to have never been associated with the dynamics of non-traditional agricultural exports. The country has almost always grown, driven by consumption, some years by investments and some others by the net export of goods and services (exports-imports), in others. But when analysed in detail, the contribution of net exports of non-traditional agricultural products has been insignificant.
The strong dependence of the Chilean economy on mining, mainly copper, is well known. In the period from 2003 to 2015, 57% of Chile's exports were of minerals, with copper accounting for 52.4% of the total. Despite this, Chile has managed to add a growing number of non-traditional agricultural and industrialised products (in the form of food and beverages), which have penetrated, not only Latin American borders, but also those of North America and Asia. In 2016, Chile's non-traditional agricultural exports were worth US$ 5,387 million, excluding exports of food and beverages, which amounted to US$ 10,242 million. In its basket of non-traditional agricultural products, Chile currently has 18 products with exported value higher than US$ 50 million. The most noteworthy are grapes, worth US$ 1,347 million in 2015, apples, worth US$ 562 million, blueberries, worth US$ 548 million, cherries (US$ 510 million), walnuts and almonds (US$ 445 million), kiwis (US$ 211 million), avocados, (US$ 209 million), plums (US$ 132 million), pears (US$ 132 million) and mandarins (US$ 101 million).
Although not as impressive a performance in this area as Chile's, Peru has been experiencing a spectacular dynamism in exports of non-traditional agricultural products. Last year, exports reached a value of US$ 4,630 million, registering an average annual growth of 16.7% in the period from 2003 to 2016, the highest in the region. Peru has 17 non-traditional agricultural products with annual exports worth more than US$ 50 million, with the most important being grapes, worth US$ 700 million in 2015, asparagus, worth US$ 586 million, avocados (US $305 million), mangoes (US$ 275 million), bananas (US$ 145 million), quinoa (US$ 144 million), artichokes (US$ 88 million), mandarins (US$ 66 million), onions (US$ 64 million), paprika (US$ 52 million) and blueberries, whose exports went from US$ 97 million in 2015 to over US$ 200 million in 2016.
The dynamism of Peruvian non-traditional agricultural exports becomes clear when taking into account, for example, that while the country's avocado exports in 2003 (US $ 15.7 million) did not differ much from the Dominican ones (US$ 9.5 million), but were far from Chile's (US$ 182 million), in 2015 they amounted to US$ 305 million, surpassing Chile (US$ 208 million) and the Dominican Republic (US$ 16.6). Something similar happens with mangoes. Peruvian mango exports have gone from US$ 31 million in 2003 to US$ 275 million in 2015. The Dominican Republic, however, exported only US$ 15.7 million in 2015.
The rapid growth of Peru's non-traditional agricultural exports, if maintained in the coming years, could make Peru the main exporter of some fruits which in recent years have been a symbol of the Chilean agro-export success, such as fresh grapes and blueberries. In 2003, Chile's fresh grape exports were 32.6 times greater than Peru's. In 2015, the ratio fell to 1.9. Under the "Peru Berries" program, which was launched in 2011, Peruvians are showing what can be achieved when both the private and public sectors stick to a set of rules and policies to promote the entry into new, highly profitable export niches. Until 2011, Peru had never exported blueberries. In 2012, Peruvian blueberry exports were worth US$ 0.46 million. Last year, as earlier pointed out, they surpassed US$ 200 million.
The performance of non-traditional agricultural exports from the Dominican Republic leaves much to be desired. In 2015, according to the Central Bank, they were worth US$ 554.2 million, of which 55% was generated by banana exports. In the category of non-traditional agricultural products, the Dominican Republic has only one item with an export value of more than US$ 50 million: bananas. In 2015, according to the Ministry of Agriculture, this fruit's exports were worth US $ 223.7 million. The Central Bank, however, estimated the value of these shipments at US$ 307.1 million.
When one looks at the use of machinery and high-end equipment for agricultural processes in Chile and Peru, including tractors that send information about the activity they are involved with in real time and the use of drones to send images to data gathering centres, it becomes clear that their public policies have attracted private investors, who have learned about the potentially high profitability of agriculture oriented towards exports. Many Chilean and Peruvian agricultural companies don't see the United States as the only potential buyer. In recent years, many have been placing special emphasis on the growing Asian market, especially on China, especially after the entry into force on 1 March 2010 of the Free Trade Agreement between Peru and China. Thanks to this agreement, Peruvian table grapes, for example, started reaching this destination subject to zero tariffs from 1 January 2015, and prospects point to Peru taking Chile's place as China's largest grape supplier in the short term.
Source: elcaribe.com.do
