Peru

GIEWS Country Brief: Peru 11-May-2021

Format
News and Press Release
Source
Posted
Originally published
Origin
View original

Attachments

FOOD SECURITY SNAPSHOT

  • Harvesting of 2021 main season paddy crop ongoing

  • Cereal production in 2020 estimated at near‑average level

  • Cereal import requirements forecast at record levels in 2021

  • Prices of rice decreased seasonally in March and were similar to year earlier

Harvesting of 2021 main season paddy crop ongoing

Harvesting of the paddy crop takes place throughout the year and the bulk of the annual harvest is concentrated in the March‑July period. Where the harvest is currently ongoing, weather conditions are generally favourable. The planted area between September 2020 and February 2021 that will be harvested in the first half of 2021 is estimated at slightly below the previous five‑year average. The reduced sowings are due to below‑average precipitation amounts between September and November 2020 in the key producing northern region. According to satellite imagery, crop conditions were favourable as of mid‑April (see ASIS map), reflecting improved weather conditions since February.

Cereal production in 2020 estimated at near‑average level

According to official estimates, cereal production in 2020 is estimated at a near‑average level of 5.32 million tonnes. The 2020 paddy output is estimated at 3.43 million tonnes, about 7 percent above the average, mainly reflecting good yields in key producing regions of La Libertad, Lambayeque, Piura and San Martín. Maize production in 2020 is estimated at a below‑average level of 1.45 million tonnes, as low prices prompted farmers to reduce sowings.

Cereal import requirements forecast at record levels in 2021

Cereal imports in the 2021 marketing year (January/December) are forecast at a record of 6.6 million tonnes. Maize imports, which account for 60 percent of the total annual cereal imports have been on the rise during the past ten years due to strong demand of yellow maize for feed by the poultry sector. With the highest per capita consumption of chicken meat in Latin America, the domestic poultry sector has been growing steadily during the last two decades. Wheat imports, which account for more than 30 percent of the total annual cereal imports, are estimated at slightly above‑average levels, mainly reflecting the increasing demand for human consumption due to population growth.

Prices of rice decreased seasonally in April and lower year on year

Wholesale prices of rice declined in April for the second consecutive month as the start of the 2021 harvest has improved market availabilities. Prices were more than 10 percent lower year on year reflecting abundant supplies by the above‑average 2020 output. After the short‑lived decline in the previous month, prices of yellow maize increased in April and were about 25 percent higher than a year earlier due to the elevated prices of the grain in the international markets. Similarly, prices of wheat flour increased in the first quarter of 2021 following the rise in wheat prices of the country’s main supplier, Canada. The depreciation of the Nuevo Sol (national currency), which lost about 9 percent of its value over the last 12 months, provided additional upward pressure on prices. As of April 2021, prices of wheat flour were more than 5 percent higher than their year‑earlier levels.