During 2016, the global trade of asparagus (both fresh and chilled) totaled US$1.34 billion, which makes asparagus the 1574th most traded product in the world. In 2016, the largest exporters of asparagus were Peru, representing 35% or US$469 million of global exports, and Mexico, accounting for 35% or US$466 million. Simultaneously, the largest importers of fresh and chilled asparagus during 2016 were the United States, totaling 48% or US$648 million of global imports, and Germany, representing 6.9% or US$92.7 million.
Asparagus Trade and Agribusiness in Peru
More specifically, the subcategory of prepared or preserved asparagus accounted for US$309 million in international trade during 2016. That very year, the largest exporters of prepared and preserved asparagus were China, representing 48% or US$147 million of global exports, and Peru, accounting for 121% or US$466 million of this subcategory. Simultaneously, the largest importers of prepared and preserved asparagus during 2016 were Spain, totaling 36% or US$112 million of global imports, and France, representing 20% or US$61.1 million.
As Farmfolio considers both asparagus and Peru for a future investment opportunity, this article will take a look at the dynamic economy of that South American nation. Peru is a presidential republic bordering Colombia, Brazil, Ecuador, Chile, and Bolivia. With a total territory of 1.28 million square kilometers, Peru is almost the same size as Alaska. Geographically, Peru has a vast plain along its 2.414 kilometers of Pacific coastline as well as the Andes Mountains and the Amazon basin along the country’s interior.
Currently, Peru has a total population of 31.3 million citizens, with an average age of 28 years. Furthermore, about 78% of the population lives in an urban setting, notably the capital city of Lima with its 10.5 million inhabitants. The annual gross domestic product (GDP) of Peru is US$430 billion (PPP) and the national economy has experienced positive economic growth upwards of 2.0% in recent years. As of today, the national economy is divided into 8% agriculture, 33% manufacturing, and 59% services. Meanwhile, the national labor force is divided into 26% working in the agriculture industry, 17% working in the industrial sector, and 57% working in services. Similarly, the national agriculture industry utilizes about 19% of the national territory, while another 53% is forested.
In terms of natural resources, Peru has copper, silver, gold, petroleum, timber, fish, iron, coal, phosphate, hydropower, and natural gas. Within manufacturing, the national industry is focused on mining, metal fabrication, petroleum refining, natural gas liquefaction, fish processing, cement, glass, textiles, clothing, food processing, drinks, rubber, electrical machinery, and chemicals. Likewise, a significant amount of Peru’s economic activity is dependent upon tourism. Simultaneously, the country’s agricultural industry has as main products artichokes, asparagus, avocados, blueberries, coffee, cocoa, cotton, sugarcane, rice, potatoes, corn, plantains, grapes, oranges, pineapples, guavas, bananas, apples, lemons, pears, coca, tomatoes, mangoes, and barley.