Agri-exports pulling Peruvians out of poverty, study shows

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Agri-exports pulling Peruvians out of poverty, study shows

A recent study has found Peru's boom in modern agriculture is helping pull farmers out of poverty, with the potential to create hundreds of thousands of jobs over the coming years.

The results of the 'Contribution and impacts of modern agriculture to Peruvian development' study were revealed last week at a conference organized by the Association of Peruvian Farmer Grower Unions (AGAP).

The study, conducted by Apoyo Consultoría, found the advances of the last decade have reduced the rate of extreme poverty among farming workers by 10%.

The country's horticultural exports have quintrupled over the last 10 years with asparagus, avocados and grapes as strong growth drivers.

AGAP director Ana María Deustua applauded the efforts of the Peruvian government to open up trade agreements with countries in Asia and Europe.

Peru has signed a Multiparty Trade Agreement with the European Union, which is the leading buyer of Peruvian produce and accounts for around US$954 million in annual agricultural purchases from the Andean nation.

20 years ago the value added component of Peruvian agriculture was minimal, but since 2007 around 75% of the sector has seen better salaries that are above the minimum wage, or what is called the Minimum Vital Remuneration.

A representative from governmental marketing agency Promperú said the country's agri-export boom has dispelled the myth of large company dominance in agriculture.

There are now 1,600 agri-export companies in Peru, of which 80% are micro or small companies that have sales of less than US$100,000 a year. Last year 70 new companies joined the industry.

The agency expects that over the short term more companies will break the threshold to become medium-sized, with companies growing at an accelerated rate.

If the current growth rate continues and if the 200,000 hectares of available land is incorporated into the sector, this could generate 400,000 direct jobs and 600,000 indirect jobs by 2021.

The study also highlighted the agricultural sector had around 50% female employment, which meant women were getting better access to health services and had improved security.

Camposol, Sociedad Agrícola Virú, Damper Trujillo and Complejo Agroindustrial Beta are among the main agricultural employers.

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