“The U.S.-Peru Trade Promotion Agreement has served to generate a continuing, symbiotic trade relationship between the United States and Peru that shows no signs of diminishing,” according to a statement published in an April 10, 2017, "Global Agricultural Information Network" (GAIN) report produced by the U.S. Department of Agriculture’s Foreign Agricultural Service (FAS).
This bold statement rings true for U.S. feed grain and value-added exports to this growing South American market, according to the U.S. Grains Council (USGC).
“The Peru trade agreement has been the major driver in growing U.S. corn imports” into Peru, Ana Maria Ballesteros, USGC co-products specialist in Latin America, noted. “The agreement also provides an opportunity for other U.S. agricultural products, such as distillers dried grains with solubles and sorghum.”
Peru's imports of U.S. corn in the first six months of the 2016-17 marketing year (September 2016 to February 2017) exceeded the five-year average for total sales, driven by attractive prices, duty-free quotas under the U.S.-Peru Trade Promotion Agreement and market development efforts by USGC and the FAS Office of Agricultural Affairs in Lima, Peru.
Corn imports into Peru for the first half of the 2016-17 marketing year totaled 1.32 million metric tons (51.97 million bu.), a 36% increase over imports of 971,000 mt (38.2 million bu.) during the same time period in 2015-16. These six months of sales outpaced the five-marketing year average total of 1.24 mmt (48.8 million bu.).
USGC reported that Peruvian buyers also purchased more ethanol, poultry, beef and pork products -- measured in corn equivalent -- and corn gluten feed than during the same time period in the prior year.
“To continue building opportunities for U.S. feed grains and value-added products with Peru’s growing poultry and dairy industries, the council is working to develop confidence in U.S. corn, offer training and information to end users, introduce other agricultural products to the market and promote and support feeding trials,” USGC said.