GIEWS Country Briefs: Peru, 01-March-2010

News and Press Release
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  • Heavy rainfalls affect Northern departments
  • 2010 maize planted area expected to increase
  • Stabilizing trend of prices of major staple food
Floods in the Northern part of the country

Since last December to the end of February, the country has been affected by heavy rainfalls that caused floods and landslides in the departments of Apurimac, Ayacucho, Cusco, Lima, Huancavelica, Junín, Puno and Huanuco. About 65 000 people have been affected and some localized damage to food and cash crops is reported.

Expecetd increase in 2010 area planted with maize

Planting of 2010 yellow maize crop has started in the departments of Cajamarca, Apurímac and Cuzco while planting of the bulk of 2010 white maize crop has been completed. Due to the growth of the poultry industry, maize planted area is expected to increase reaching 520 000 hectares.

Planting of 2010 rice crop is underway in the Northern departments of Piura and Lambayeque. At national level, planted area is forecast at 385 000 hectares, about 4 percent less than the record level of 2009. This reduction in area is mainly due to the gradual reduction of producer prices caused by previous year's bumper harvest of 2.9 million tonnes.

Cereal import requirements still increasing

Despite the 2009 record cereal production of about 4.9 million tonnes, import requirements for the commercial year 2010 (January/December) are provitionally estimated at the high level of 3.2 million tonnes. The significant increase in consumpetion is essentially due to the growth of the poultry industry, which absorbs the majority of imported yellow maize, as a result of the increase and diversification in consumption patterns of the population is also being a contributing factor.

Prices continue to show a stable trend

Average nominal retail prices of rice gradually decreased after the peak recorded in May 2008. In the last quarter, quotations continued to show a downward trend reaching the level of 2.43 Nuevos Soles/Kg.

Retail prices of potatoes have also been decreasing by aproximatley 30 percent compared the the record level reached in January 2009.