Policies for the Future of Farming and Food in Peru

Peru is the sixth-largest economy in Latin America, as measured by gross domestic product (GDP) (IMF, 2023[1]). It is an upper-middle-income country, with a GDP per capita of USD 18 335. Following important fluctuations in the 1970s-90s, Peru has had a high level of macroeconomic stability in the period 2000-25, with an average GDP growth of 4.1% (OECD, 2023[2]). In 2024, the country had an estimated population of 34 million inhabitants, reflecting a growing population over the past two decades.

The period 2000-20 was marked by low inflation, with an average inflation rate of 2.66% (World Bank, 2025[5]). From 2021 to 2023, however, the pandemic fuelled a sharp increase in inflation, which peaked at 7.9% in 2022. This has reverted to pre-pandemic levels, with an inflation rate of 1.9% projected for 2025 (Figure 1.1).

Peru’s unemployment rate reached an all-time high during the pandemic, at 13% in 2020, up from 6.6% in 2019 (World Bank, 2025[5]). During the second quarter of 2020, known as the peak of the pandemic, around 6.7 million jobs were lost. Unemployment rates reverted to pre-pandemic levels in 2024, reaching a national rate of 6.8%. The COVID-19 pandemic had a severe impact on both lives and livelihoods, resulting in higher excess mortality and a sharper economic contraction than most countries in the world. The pandemic also caused increases in poverty and widespread learning disruptions (OECD, 2023[2]).

In 2024, around 71% of the population was in informal employment (INEI, 2025[7]). Activities of the informal sector represented 18.3% of Peru’s GDP, one of the highest levels seen in Latin America (INEI, 2024[8]). Around 56.5% of the workforce is informally employed within the informal sector, while 14.7% have informal employment within the formal sector. This leaves around 28.8% of the workforce with formal employment.

Informal employment has significant social repercussions, as it provides no employment protection or access to contributory social protection such as pensions and employment benefits. Informal workers have limited opportunities to formally prove or upgrade their skills through employer-provided training or public programmes, resulting in substantial skill mismatches in the economy (OECD, 2024[9]). This hampers productivity levels as well as the adoption of new technologies. The high rate of informal work also limits the taxes collected by the government and thus the available funding for public services. Peru faces a high rate of tax non-compliance, approximately costing Peru 6.7% of its GDP in 2022 (El Peruano, 2024[10]).

Peru has an open and transparent legal regime for foreign investment (OECD, 2025[11]). Foreign Direct Investment (FDI) inflows have remained positive and have increased in volume over the last 10 years, with an average of USD 6.37 billion per year. However, there has been an increased volatility over the last five years, with negative quarters being measured in 2019, 2020, 2021 and 2023. These coincide with periods of global shocks such as the pandemic, turmoil in global markets, dips in demand and domestic political instability. In 2023, foreign direct investment inflows totalled USD 4.9 billion, equivalent to approximately 2% of GDP.

Peru has a surface area of 1.28 million square kilometres (km²), making it the country with the third‑largest surface area in South America after Brazil and Argentina and the 19^th largest country in the world in terms of land area. With a population of around 34 million people in 2024, Peru is the fifth most populous country in Latin America after Brazil, Mexico, Colombia and Argentina (World Bank, 2025[12]).

Most of Peru’s population is concentrated in the coastal regions (Costa), capturing around 60% of the population, particularly in and around the city of Lima (INEI, 2024[13]). Around 26% lived in the Andean highlands (Sierra) and 14% in the Amazon rainforest (Selva). The Costa region has a high population density, while the Sierra region is less densely populated and is characterised by cities and towns located in the highlands of the Andes mountains. The Selva region in the Amazon is known for its scattered settlements of Indigenous Communities.

The average national population density has increased mainly due to population growth and urbanisation, from 17.6 inhabitants/km² in 1993 to 26 inhabitants/km² in 2024 (INEI, 2024[13]). Moreover, as in all Latin American countries, Peru experienced profound changes in population distribution during the 20^th century. For instance, while in 1940, 64.6% of Peru’s population lived in rural areas,1 by 2024 this had decreased to 16.9% (INEI, 2024[13]).

The fertility rate has declined in the past 30 years, primarily due to increased access to education and family services, alongside a shift in cultural norms and societal expectations. For instance, Peru had a fertility rate of 5 births per woman in 1980, which declined to 2.2 births per woman by 2022 (World Bank, 2023[14]). Changes in fertility patterns have led to the ageing of the population in Peru. It is expected that the percentage of the population aged 60 and over will have doubled from 2010 to 2030 and will quadruple by 2050 (INEI, 2023[15]).

In terms of education, Peru had a literacy rate of 95.2% in 2023 (INEI, 2024[13]). Whilst this remained relatively unchanged in urban areas over the last decade, rural areas saw a decrease in illiteracy from 15.9% in 2012 to 11.3% in 2023. Peru had a high share of youth not in employment, education or training (NEET), representing 20.8%2 in 2023, compared to the OECD average of 12.5% (OECD, 2024[16]).

School attendance for children of primary school age is similar across all of Peru’s regions; however, there are discrepancies in attendance in secondary schools. In 2018, around 96% of those aged 6-11 in both urban and rural areas were enrolled in primary education (OECD, 2022[17]). However, the school attendance rate of 12-16 year-olds was 87.2% in urban areas, compared to 79.1% in rural areas (OECD, 2022[17]). Although there are similar net enrolment rates for female and male teenagers, there is a higher school dropout rate among females. One of the main contributing factors is the issue of teenage pregnancies. In 2018, 6.8% of girls aged 15-17 were pregnant or mothers, and this rate was 11.9% in rural areas compared to 5.3% in urban areas (OECD, 2022[17]).

Peru is a multi-ethnic country home to an estimated 55 different ethnic groups, which represent a diverse range of Indigenous cultures, customs, languages and traditions. Around 25% of the population self-identifies as Indigenous or native, with 51 Indigenous Communities settled in the Amazon and 4 in the Andes. Forty-eight Indigenous languages are spoken in Peru, the most prominent being Quechua and Aymara. Indigenous populations face labour exclusion and discrimination. For instance, in 2021, the rate of formal employment was only around 39.5% for those who identify as Indigenous, while it was 52.2% for those who consider themselves mestizos (mixed) (INEI, 2022[18]).

The discrimination against Indigenous Populations dates back to the colonial era, when Indigenous populations were excluded from basic entitlements of citizenship, from electing the country’s political authorities and from access to land (Barrón, 2008[19]). Although Indigenous authorities exist, they have had difficulties in being included within the formal political system. Inequalities linked to agricultural development continue to exist as a result of the past exclusion of Indigenous people from land ownership, leaving them with either no land at all or the least productive lands (Barrón, 2008[19]). Although some progress has been made over the past 15 years with changes in legal frameworks, the implementation of land titling remains slow, uneven and fragmented and Indigenous land rights continue to be vulnerable due to institutional gaps, overlapping projects and conflict (Zuniga, 2022[20]; Blackman et al., 2017[21]). It is estimated that as of 2021, of the total 7 217 recognised native or peasant communities, 22%3 had no titling (Ministereo de Cultura, 2021[22]). This does not address individual land titling, only communal. Furthermore, populations that speak Indigenous or native languages from the Amazon see the highest levels of poverty (up to 51.2%).

Income inequality in Peru is higher than the OECD average, but lower than in some other Latin American countries (Figure 1.2). Peru’s Gini coefficient has improved over the past years, from 49.1 in 2000 to 40.3 in 2022 (World Bank, 2025[5]). This follows a regional trend of decreasing inequality over the past two decades, except for Brazil, Colombia and Costa Rica. Peru is comparatively one of the best-performing countries in the region in terms of inequality.

Peru experienced a stable decrease in poverty rates. In 2011, 27.8% of Peruvians lived in poverty, while 6.3% lived in extreme poverty (INEI, 2024[23]). In the following period, there was a general decrease in the country’s poverty rate and by 2019, the rate of those living in poverty was at 20.2%, with extreme poverty at 2.9%. However, in 2020, the pandemic led to a sharp increase in the nation’s poverty rates, with 30.1% of the population living in poverty (Figure ‎1.3) and 5.1% living in extreme poverty. Whilst the national average has decreased to 27.6% in 2024, the vulnerability to poverty has reached its highest level in two decades (World Bank, 2023[24]).

Poverty and vulnerability to poverty are concentrated in Peru’s rural areas. In 2024, 39.3% of households living in rural areas lived in poverty, whilst this was 24.8% in urban areas (Figure ‎1.4). However, the pandemic caused a sharp increase in poverty rates, especially in urban areas, with urban households still not having recovered to pre-pandemic levels (14.6% in 2019). This has somewhat decreased the gap between urban and rural areas.

Most of the country’s poor live in the Sierra alongside relatively high poverty rates within the Selva region. The departments of Cajamarca, Loreto, Pasco and Puno have the highest poverty rates, at above 40% in 2023 (Figure ‎1.5). The Costa region is the richest, with the lowest poverty rates seen in Ica (6.9%), followed by Moquegua (13.1%) and Arequipa (13.9%).

The Republic of Peru is a unitary, representative and decentralised democracy as stated in Article 43 of the 1993 Constitution. The President of the Republic is elected to serve a five-year term and holds the highest position of government; hence, the individual is the chief of state and the head of the government. Since April 2024, Law 31988 re-established the bicameral system of the Congress and includes 130 members who are elected for 5-year terms via proportional representation. Congress first votes on legislation; it is then approved by the President of the Republic.

Peru’s territorial and administrative organisation includes departments, districts, municipalities and Indigenous entities. Peru’s territorial and administrative organisation is divided into 24 departments, 196 provinces4 and 1 800 districts. The 1993 Constitution promotes the decentralisation of government functions and establishes local government as an essential component of the national administration. This is highlighted in Article 194 of the Constitution. The autonomy of local governments is further highlighted in Article 197, which specifies that they have the right to manage their own resources and participate in the decisions related to the allocation and use of national resources intended for local development.

Peru also has a decentralised fiscal framework, with regional and local government budgets highly dependent on transfers from the central government. This includes natural resource-based transfers, comprising (i) the Canon, which is financed 50% by corporate income taxes and (ii) royalties levied on natural resource production, primarily mining (IMF, 2025[26]).

Infrastructure continues to be a challenge for the economic development of the country. Peru’s quality of infrastructure ranks below the world average according to the Global Competitiveness Index (CGI), scoring 50.1 on a 0-100 scale (WEF, 2024[27]). Only 41% of households in Peru had access to all four main basic services in 2021, which include access to piped water, sanitation, electricity and the Internet (World Bank, 2023[24]). As of 2024, Peru’s road network contained 174 709 kilometres of roads, which is relatively low for the country’s size (MTC, 2024[28]).

Nevertheless, in the period 2004-21, infrastructure improvements were made throughout Peru. For instance, during this period, the share of households with access to drinking water increased from 67% to 86% (World Bank, 2023[24]), whilst the households with overall access to water reached 90.4% in 2024 (INEI, 2025[29]). However, only 39% of households have access to safe water and a Peruvian household, on average only has access to water 74% of the time (World Bank, 2023[24]). Access to electricity also expanded, especially in rural areas, which increased from 71.4% of households with electricity access in 2015 to 82.9% in 2024 (INEI, 2025[29]).

Peru’s broadband market has seen significant improvements in recent years, with growth in the number of broadband subscriptions led by mobile services. Mobile broadband penetration has risen sharply from 47.9 subscriptions per 100 inhabitants in 2014, to 95 in 2024, representing a 98% growth (OECD Broadband Statistics). Fixed broadband subscriptions have also seen a 129% growth over the same period, although levels in Peru are one third of the levels across the OECD (see Chapter 4).

Despite these improvements, disparities remain between those living in urban and rural areas. For instance, in 2021, more than half of urban households had access to all four of the basic services in question, while only 6% of rural households did (World Bank, 2023[24]). Looking at sanitation services, 88.6% of urban households had access to some form of sanitation service in 2024, whilst this was only 44.8% for rural areas (INEI, 2025[29]). This highlights how access to infrastructure within rural regions remains a challenge in Peru.

Peru is a mega-diverse country with a large ecosystem and genetic variability.5 It concentrates 84 of the 104 life zones on the planet, and its different altitudes and climates generate exceptional conditions for the development of diverse crops and species. It has 79 million ha of forests and ranks second in Latin America and fourth in the world in terms of tropical forest extension. The paramos and punas (high, cold and arid plateau in the Andes), with a surface area of 22 million ha, are ecosystems of great importance at a global level due to their biodiversity. Peru is ranked eighth in the world in terms of the number of species. It is estimated that Peru hosts about 26 253 different species, of which 33% are endemic. This includes around 20 375 species of flora, 569 mammals (5th in the world), 1 897 birds (3rd in the world), 663 amphibians (4th in the world), 510 reptiles, 2 422 fish (1st in the world) and 4 000 butterflies (1st in the world) (INEI, 2024[30]) (UNDP, 2025[31]).

However, Peru’s geographical location over the Nazca Plate within the Pacific Ring of Fire (a region where over 80% of the world’s earthquakes occur) makes the country particularly vulnerable to natural disasters. And Peru is becoming more and more vulnerable to natural disasters due to climate change. In the period 2012-23, the number of natural hazards increased by 350%, reaching a record of 12 058 events in 2023 (CEPLAN, 2024[32]). In the past years, Peru has seen a significant increase in heavy rains (El Niño) and changing temperatures.

Climate change projections estimate that by 2050, precipitation will decline by 40% and temperatures will increase by 3.5°C. Moreover, the poor and vulnerable will face the greatest variations in climate, leading to an increase in climate-induced inequality (World Bank, 2023[24]). Those living in districts with the largest shares of poor and vulnerable populations are likely to see the sharpest increases in temperature and the greatest reductions in rainfall.

Peru is ranked eighth in the world for its volume of freshwater resources and third in Latin America, after Brazil and Colombia (OECD, 2021[33]). In Peru, groundwater sources account for 25% of available water resources, of which the majority originates from surface water sources. Despite the country’s vast freshwater resources, the distribution of and access to freshwater are very unequal. The country has three main hydrographic regions. The largest is the Hydrographic Region of the Amazon, which is home to 99% of freshwater, followed by the Hydrographic Region of the Pacific (0.9%), then the Hydrographic Region of the Titicaca (0.1%). Almost two-thirds (65%) of the population and most of the country’s economic activities are in the Hydrographic Region of the Pacific.

Still, water scarcity risks are growing in Peru, combining high water demand from cities, particularly the capital city of Lima, and resulting from agricultural activities. In 2024, 97.5% was classified as non-consumptive use (ANA, 2024[34]), mostly for energy production, while 7.6% of water use corresponded to consumption use, most of which was agriculture (85%). Climate change will have a strong negative impact on the country’s water security, primarily due to the melting glaciers. Around 53% of glaciers in Peru, which are key freshwater sources for the Amazon River, melted from 1962 to 2023 due to climate change (INEI, 2024[30]).

The Peruvian Amazon basin is subject to widespread deforestation and soil erosion (SERFOR, 2021[35]), thereby threatening the country’s rich biodiversity. Deforestation has led to the loss of over 88 million hectares of the entire Amazon forest from 1985-2023, a loss of around 12.5% of its original forest and an area comparable to the size of Colombia (MapBiomas, 2025[36]). This is primarily fuelled by agricultural expansion. It is the primary contributor towards Peru’s GHG emissions (see Chapter 3 for more details).

The agricultural sector in Peru benefits from rich natural resource endowments, fertile soils, a variety of climates and a high level of trade openness. The sector’s contribution to GDP and employment is decreasing, in line with global trends and reflecting the country’s economic development.

Looking at the evolution of Peru’s agriculture sector’s share of GDP and employment, the share of agriculture in GDP decreased from 7.9% in 1991 to 6.8% in 2023, mostly due to other sectors’ growth, while the share of employment in the agricultural sector decreased from 41.4% in 1990 to 22.3% in the same period (Figure 1.6). This can be attributed to increased labour productivity in the agricultural sector. A similar pattern can be seen in the region as well as in the OECD average, with both the share of agriculture in GDP and the share of employment in the agricultural sector decreasing. However, Peru maintains a relatively high employment rate in agriculture compared to most regional peers, with a measurable spike during the pandemic as other sectors of the economy declined (Figure 1.7).

Trade has been gaining importance in the Peruvian economy, increasing from 36% of GDP in 2000 to 51% in 2023 (Table 1.1). Agro-food trade has also gained significance in terms of exports. The share of agro-food exports in Peru’s total exports increased from 4% in 2000 to 16% in 2023 (Figure 1.7). Agro-food imports, on the other hand, have remained relatively steady over the last two decades.

The average annual income from agriculture was USD 4 247 over the period 2015-2021 (Figure 1.8). This was much lower for smallholder farmers at USD 2 394, almost half the national average. Both incomes see a dip in 2018, likely caused by the repercussions of a particularly destructive El Niño in 2017 (see Chapter 3).

Most Peruvian farm units are located in the Sierra with 54%, followed by the Selva (Amazon) with 31.3% and the Costa (coastal areas) with 14.7% (INEI, 2023[39]). In 2024, 75.7% of farm units hired temporary and/or permanent labour (INEI, 2025[40]). It is important to note that many producers use family labour in their agricultural units (73.1%), especially in the Sierra and Selva regions.

Around 81.7% of individuals in rural areas depend on agricultural income for their livelihoods (MIDIS, 2024[41]). Looking at the share of agricultural income from total income, this is significantly higher in rural areas (65.9%) in 2021, compared to urban areas (13.8%) (Figure 1.9). A significant dip was seen across regions in 2020, likely due to the pandemic.

The share of employees in agriculture who receive a low pay rate6 was 39.8% in 2021 nationwide. However, this was much higher in rural areas (48.9%) compared to urban areas (32.1%) (while this number applies to overall employees, not only to those in agriculture, the sector is still important in rural areas). The largest discrepancies were seen in gender, where 51.6% of female farmers receive a low pay rate, compared to 35.3% for male farmers. Further, aggregating the agricultural, fisheries and mining sectors together shows a labour informality rate of 91.7% for 2024 (INEI, 2025[7]; INEI, 2024[8]). This high share of informal employment is related to the prevalence of non-commercial agriculture, which relies on informal family labour. Moreover, many farmers need to complement incomes from their own farming activities; hence, they seek other economic opportunities in addition to agricultural production. This was true for 50.3% of Peru’s agricultural producers in 2024 (INEI, 2025[40]). Those who take up additional employment (formal or informal) are likely to work in sectors such as fishing, commerce, construction, transport, textiles and hospitality.7

The Government of Peru provides social benefits to agricultural producers through various social programmes, such as food rations and cash transfers for the poorest citizens, school meals, pensions and early childhood care. In 2012, over 800 000 farmers benefited from at least one of these social programmes (INEI, 2013[42]). Around 98% of farmers did not access any type of agricultural insurance in 2024, a number that has remained unchanged over the last decade (INEI, 2023[39]; INEI, 2025[40]). The fact that almost 95% of producers who did request some type of credit also had access to it suggests that the issue lies in the initial requesting stage.

There are three main types of agricultural production systems: subsistence agriculture, agriculture for local markets, and export-oriented agriculture. In Peru, around 79.3% of agricultural units consist of subsistence farming, which is mostly practised by the poorest social sectors in rural areas. In 2024, the Sierra region saw the highest percentage of non-commercial agriculture, accounting for 88.9% of agricultural units. The predominant crops include maize, beans, cereals, native grasslands, vegetables and other bread crops. Agriculture for local markets is prevalent in the irrigated valleys of the Costa, with the predominant crops consisting of rice, potatoes, yellow maize, sugar cane, beans, wheat, fruits and vegetables. The third type of agriculture is export-oriented, located mostly in the Costa region. Peru is one of the world’s largest exporters of asparagus, avocados, blueberries, grapes and coffee. The Costa region was the region with the highest percentage of commercial agriculture, accounting for more than 40% of the total agricultural GDP (Box 1.1).

Small-scale non-commercial agriculture8 dominates Peru’s agricultural units, making up 95.4% of total agricultural units in 2024 (INEI, 2025[40]) and supplying approximately 80% of the food consumed domestically. Only 4.6% of agricultural units engage in commercial agriculture. The majority of producers practice mixed farming (73.8% in 2024), involving both crop production and livestock farming (INEI, 2025[40]). Around 25.9% of producers are only engaged in crop production, of which the majority (82.9%) harvest two crops or more. Only 0.3% of producers are solely engaged in livestock farming, with a high degree of diversification, as 87.6% have two or more breeding stocks in their operation.

The cultivation of crops is categorised as temporary crops (with a cycle of less than a year) and permanent crops (with a cycle greater than a year). According to land area, the key temporary crops harvested in Peru are rice, potatoes and yellow maize, while permanent crops largely consist of grass or pasture and coffee (Table 1.2). The regional production patterns across Peru can be seen in Box 1.1.

Peru has around 24.6 million ha of agricultural land, with many different types of agricultural areas. These are categorised into the following areas:  land with transitional crops; land with permanent crops; fallow land; agricultural land without cultivation that will not be sown; and agricultural land at rest (MIDAGRI, 2024[44]). Looking at the Food and Agriculture Organisation (FAO) statistics, around 19.1% of Peru’s total territory is agricultural land, whilst 56.1% is forest land9 (Figure 1.11, panel a). The majority of agricultural land is permanent meadows and pastures (74.5%), followed by arable land (16.1%) and permanent crops (9.1%).

Agricultural land has increased by around 5.1% over the last two decades. In particular, permanent crops have more than doubled their share in agricultural land (Figure 1.11, panel b). This reflects an expansion of coffee, cacao and fruit tree production, a trend that is contributing to deforestation (see Chapter 3).

Farming systems in Peru are defined as agricultural units. This incorporates land used totally or partially for agricultural production and managed as an economic unit by an agricultural producer, regardless of size, tenure or legal status (INEI, 2023[39]). Agricultural units are made up of plots. A plot can be understood as a segment of land which does not have territorial continuity with the rest of the land of the agricultural unit.

Looking at crop types, pasture grass encompasses by far the largest farm sizes, led by an average of 40.57 ha for guinea, followed by setarea (20.54 ha) and brizanta (10.4 ha). Excluding pastureland, the largest average farm size is seen for palm oil (6.48 ha) in 2022, a significant decrease from 20.47 ha in 2015. This is followed by pepper (4.78 ha) and paprika (4.35 ha) in 2022.

The composition of farm structures in Peru reveals an unequal land distribution. Large farms are concentrated in the hands of a few people, while most farmers have access to small-scale lands. In 2012, the land inequality Gini coefficient was 0.93, one of the highest in the region and higher than the Latin America and Caribbean average of 0.84 (IDB, 2023[46]). For instance, in 2021, 79.3% of farms were less than 5 ha, representing 5.9% of the total agricultural area. On the other hand, 0.2% of farms were 1 000-2 500 ha or larger, representing 64.3% of the land (Figure 1.12). This concentration of land is comparable to the levels seen in the 1960s (IDB, 2023[46]; INEI, 2023[39]).

Peru has a low level of land titling (formal land rights) in agriculture. In 2024, 74% of agricultural producers did not hold a property title for at least one of the plots that make up their agricultural unit (INEI, 2025[40]). This trend has been increasing, with 59.2% of producers not holding a property title, likely due to land fragmentation, especially amongst family farming.

Considering access to infrastructure within the agricultural sector, 53.6% of agricultural units had irrigation systems in place in 2024, and these units covered 34.4% of agricultural land (INEI, 2025[40]). However, it is worth mentioning that this is an inclusive definition of irrigation systems, whilst modern systems are still largely missing from the sector (see Chapter 3). Around 71.1% of producers used both fertilisers and pesticides in 2024, with a higher usage rate seen in the Costa region (89.9%), compared to the Sierra (69.3%) and the Selva (60.3%). However, the share of producers who properly manage pesticide residues was around 29% in 2022, an increase from the 20.3% seen in 2014 (INEI, 2023[39]).

When looking at the participation of women within the agricultural sector, 31.5% of agricultural producers were women in 2024, compared to 68.6% of men (INEI, 2025[40]). This reflects a steady increase in the representation of women compared to 29% in 2014 (INEI, 2023[39]). The participation of women in agriculture is the highest in the Sierra (34.2%), followed by Costa (24.8%) and Selva (23.6%) (INEI, 2025[40]).

The share of agriculture in total female employment in Peru is high compared to regional peers and OECD members (Figure 1.13). This share has slightly decreased, from 26.3% in 2010 to 22.3% in 2023, yet agriculture remains important in female employment in Peru.

Analysing land ownership in terms of gender shows that the difference in land ownership between men and women decreased in the period 2014-24; however, the gap remains wide. For instance, in 2014, 70.6% of producers who owned at least one of the plots were men (INEI, 2023[39]). In 2024, this share had decreased to 66.3% (INEI, 2025[40]).

Comparing the production patterns of men and women, women practice more subsistence farming than men, with 34.7% of female farmers’ value of crop production used for own consumption, compared to 24% for male farmers (FAO, World Bank, IFAD, 2025[38]). Women also tend to cultivate for the domestic commercial markets, while men are more active in the commercialisation of both traditional and non-traditional products for the international markets (INEI, 2019[47]). The differences in production patterns can be attributed to the differences in land access by gender. The average share of land owned by women is 4.6 ha, while for men it is 7.0 ha. Out of the 4.6 available hectares for females, 2.8 ha are for non-agricultural uses, while 1.8 ha are for agricultural uses. Within the 7.0 ha available to men, 4 ha are for non-agricultural uses, while 3.0 ha are for agricultural uses. Across all of Peru’s departments, men had a greater share of land than women in the 2012 Agricultural Census. Furthermore, the quality of land available to women is lower.

While the educational attainment of producers in Peru’s agricultural sector has not significantly changed over the past decade, women remain behind. Around 49.4% of producers had only completed primary education in 2024, with 30.3% achieving a secondary education and 9.1% a higher education (INEI, 2025[40]). Looking at gender, 22.4% of women in agriculture and 6.1% of men had not obtained any education. This also reflects broader discrepancies between men and women at all educational levels (INEI, 2023[48]).

The historical exclusion of Indigenous Peoples from land ownership during the colonial era continues to impact these communities. The indigenous workforce is, on average, more engaged in the informal sector. Around 28.2% of Peru’s population self-identified as indigenous in 2021 (INEI, 2022[18]). Within the employed population, 23.5% considered themselves to be of native origin in 2023 (INEI, 2024[13]). The participation of indigenous workers in Peru was highest in agriculture, fishing and mining, in which indigenous workers accounted for 40.9% of the total workforce. This was followed by 30% in the services sector. On the other hand, the employed population which self-identified as white or mixed saw the greatest share of workers in services, with 40.9% and 49.6%, respectively. Furthermore, a higher informality rate was measured within the indigenous employed population (83%) in 2023, compared to the white (73.8%) and mixed (63.5%) groups.

In 2022, 40.2% of agricultural workers were over the age of 60, 35.9% were aged 45-59, 21.9% were aged 30-44 and 1.9% were aged 15-29 (INEI, 2023[39]). As can be seen from Figure 1.14, the agricultural workforce has significantly aged over the last decade, with a stark increase in the share of the workforce over 60, and a reduction in all other age groups, notably the youngest.

The growth in agricultural output can be attributed to both crop and animal production. Considering the value of agricultural production, crops represent the largest share in production with 72% for the 2022‑2024 period (Table 1.3). The largest share of value added for crops was potatoes, followed by rice and coffee. Animal products make up 28% of the agricultural production value, with poultry being the largest livestock activity. (see Chapter 6 for agricultural TFP).

The production of most crops has experienced increases, with some significantly higher than others. The most significant crop production value increase is seen in blueberries, with a production that was non-existent before 2012, developing to contribute 3% of total agricultural output. Avocados and cocoa have also seen significant growth in the value of production, followed by grapes and potatoes (Figure 1.15). This follows the trend seen in the increased export of these crops, especially the high-value products (see Section 1.6). Livestock products, in particular poultry, have all seen increases in the value of production.

The yields of Peru’s three staple crops (maize, potatoes and rice) have improved in the last two decades (Figure 1.16). The yield for rice is higher than in all selected peer countries. However, the country is lagging in the case of potatoes and maize. It is important to mention that Peru has seen significant yield increases for blueberries, with a yield increase of 858% from 2012 to 2023 (FAOSTAT, 2025[50]). Whilst Peru’s high-value crops have generally seen higher yield increases over this time period, notably grapes (45%) and avocados (25%), blueberries stand out with the highest yield increases since their production began around 2012.

Peru’s agricultural trade flows have changed over the last few decades. Between 1995 and 2008, Peru was mostly an agro food importing country, except for 2007. However, from 2014 onwards, this shifted to Peru becoming an agro-food exporting country (Figure 1.19). This reflects Peru’s trade-open and export-oriented policy framework that has persisted since the 1990s (see Chapter 2). Although there were higher levels of imports than exports in 2012 and 2013, the value of exports has grown year by year from 2013 to 2024, resulting in Peru having an agro-trade surplus.

Looking at the share of agro-food imports and exports in total trade, the share of agro-food imports decreased from 15% in 1995 to 11% in 2024, while the share of agro-food exports increased from 12% in 1995 to 17% in 2024 (Figure 1.20). The highest share of agro-food exports in total exports was seen in 2020, when agro-food represented 20% of total exports. The highest share of agro-food imports in total imports was seen in 1998, when agro-food imports represented 18% of total imports.

Peru’s main exported products have changed over the last 30 years. The products with the highest export values in the period 1995-97 largely consisted of coffee, fruit and vegetable preparations, and other fruit and vegetables (Figure 1.21). Peru’s current agro-food exports show diversification of the country’s highest value export produce. In the period 2022-24, the exports with the highest values included fresh grapes, blueberries, avocados, other fruit and vegetables, coffee, and fruit and vegetable preparations, among other products.

Peru’s importing patterns have also changed over the past years. In the period 1995-97, the imported products with the highest values included maize, dairy products, oilcake and other solid residues, and crude soybean oil (Figure 1.23). The values of these products in the period 2022-24 had all increased, indicating that Peru was importing more produce. The share of these products of total agro-food imports had also increased, in particular spelt, common wheat and meslin; the share of dairy products decreased.

Looking at Peru’s export markets, the United States is Peru’s main export market, receiving 32.8% of its total agro-food exports 2022-2024 (Figure 1.24). Peru’s other main export partners include the Netherlands (13.7%), the People’s Republic of China (hereafter “China”) (7.1%) and Spain (5.5%). Notably, China has transitioned from being one of Peru’s smaller export markets with 2.6% in 2020, to its third-largest export market within two years.

When it comes to the imports of Peru’s agro-food products, its main suppliers are Argentina, supplying 26.6% of Peru’s total agro-food import market 2022-2024, followed by the United States (14.1%), Bolivia (12.2%) and Canada (8.7%) (Figure 1.25).

Peru’s economic growth during the 1990s can partly be attributed to its increased integration within global markets. Peru has been a member of the World Trade Organization (WTO) since 1 January 1995. Starting in 2000, Peru has progressively signed many bilateral and multilateral trade agreements.

• Bilaterally, Peru has trade agreements in force with 17 countries: Cuba (2001); Chile (2006); the United States (2009); Canada (2009); Singapore (2009); China (2010); Korea (2011); Thailand (2011); Mexico (2012); Japan (2012); Panama (2012); Costa Rica (2013); Venezuela (2013); Honduras (2017); Australia (2020); and the United Kingdom (2020). Trade agreements have also been created with Guatemala; Hong Kong (China); Indonesia; and Brazil; however, they have yet to enter into force. Discussions are underway to create trade agreements with El Salvador, India, Nicaragua and Türkiye.

• Multilaterally, Peru has agreements with the Andean Community of Nations (CAN); the Pacific Alliance; the Latin American Integration Association (LAIA); the Southern Common Market (MERCOSUR); the European Free Trade Association (EFTA); the European Union (EU); and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). As a result of the CAN agreement, there is a free trade area between Bolivia, Colombia, Ecuador and Peru. This means that goods produced within the region can be traded easily due to the adoption of common rules that govern trade among the members.

The OECD Trade in Value Added (TiVA) database considers the value added by each country in the production of goods and services that are consumed worldwide, providing a broad view of where value is created along each stage of global value chains (GVCs). An examination of international value-added flows related to the agro-food sector (Box 1.4) gives a perspective of countries’ integration into GVCs that goes beyond conventional trade data. TiVA data also reveal international flows of value added that are not captured by traditional trade statistics. In some cases, the top destinations of value-added exports and sources of value added in domestic demand differ from the top trading partners in terms of gross exports and imports.

Peru’s agriculture and food industries have generally increased their forward and backward linkages with global production networks over the last two decades (Table 1.4).

Both sectors increased their reliance on foreign demand, most significantly for agriculture, which saw its value triple from 12.4% in 2000 to 42.7% in 2020, which is comparably close to the OECD average. On the other hand, the agricultural sector’s foreign value added in exports remained relatively constant and even decreased again between 2010 to 2020.

As of 2020, the indicators concerning backward linkages with GVCs, as well as reliance on foreign demand, were lower than the OECD average. In contrast, the forward linkage for both sectors was comparatively higher across the time period. The share of Peru’s value added embodied in other countries’ exports of both sectors was high to begin with and increased significantly, with the value more than doubling for the agricultural sector, although the food industry only saw this change from 2010 onwards.

The foreign value-added (FVA) content of agricultural exports (9.2%) is below the share observed for the Peruvian economy (11%) in 2020. Compared to the peer group covered by the TiVA database, Peru’s foreign value-added share in exports for agriculture was the lowest alongside Colombia for both 2000 and 2020 (Figure 1.26). In the case of food exports, the foreign value added (21%) was almost double the share observed for the Peruvian economy in 2020. This places Peru somewhere in the middle of the peer group.

TiVA indicators also highlight the trend of “servicification” of GVCs, reflected in an increase in exports of services value added, both direct and indirect (in particular, services embodied as inputs in the exports of goods). For Peru, the total services content (domestic and foreign) was higher for the food industry (29.8%) than for agriculture (10.9%) in 2020 (Table 1.5). Both shares have remained relatively unchanged since 2000, although the food industry saw a decrease in 2010. Compared to the OECD average, both sectors in Peru have a lower total services content, although this is significantly lower for the agricultural industry.

Marketing chains connect farmers with the commercialisation of their products. The key components of marketing chains for agricultural commodities in Peru generally include agricultural input suppliers, producers, intermediaries, processors, wholesale markets and retailers. The market chain for each commodity depends on the individual characteristics of the product market. Furthermore, these components, as well as the connections between them, are subject to significant regional differences (see Chapter 5).

Upstream supply chains provide key agricultural inputs such as fertilisers, agrochemical inputs and seeds. However, a lack of robust formal sector production, in addition to limited effective distribution channels, poses significant challenges to the availability and accessibility of these critical inputs, especially for smallholder farmers. This results in low usage rates of certified, improved seeds and of chemical fertilisers. Most of the main crops cultivated come from informal seed systems, whereby smallholder farmers save and reuse seeds across growing seasons. Peru has a small but significant domestic fertiliser production industry, primarily focusing on organic fertilisers derived from natural sources such as guano. The supply of agrochemicals, on the other hand, is heavily reliant on imports, with the total fertiliser imports reaching USD 1.19 billion in 2022 (SUNAT, 2024[62]). This supplier market is heavily concentrated, with only five companies – Molinos & Cía, Gavilón, Equilibra, Ceres Perú, and SQM Vitas – accounting for 75% of these fertiliser imports.

Midstream supply chains differentiate between marketing channels aimed at agro-food exports and those intended for domestic markets. Export-oriented channels see large producers vertically integrated with the export activity, which typically includes product processing. Small-scale producers, on the other hand, only see around 33.7% of producers allocating their production for sale (INEI, 2025[40]) and rely on intermediaries to access markets. Domestic marketing chains see farmers largely selling products through local intermediaries. However, Peru suffers from high logistic costs, including transport, loading and unloading, and security. This made up around 14-22% of the export price for selected export-oriented commodities, compared to around 9-14% in Colombia and 10% in Nicaragua (World Bank, 2017[63]).

Traditional outlets – wholesale mercados, open markets and small stores – dominate Peru’s fresh-food sales, with nearly half (47%) of these wholesale markets located in Lima (FAO, European Union and CIRAD, 2022[43]). Compared to other regional peers, modern channels like supermarkets and convenience stores account for only 25% of national food sales. Overall, Peru’s food processing and retail chains sectors see high market concentration (see Chapter 5).

The agricultural sector’s contribution to GDP is decreasing but remains relatively high (6.8%), with a large share of the workforce (22.3%). Moreover, the agricultural sector also faces a high labour informality rate (91.7%).

There are high disparities between urban and rural areas concerning poverty, inequality and limited infrastructure in general. This also applies to the agricultural sector, with unequal access to domestic and international agro-food markets. Nonetheless, Peru’s infrastructure development has been improving over the last decade, and it has managed to improve its Gini coefficient.

Peru’s land reforms were effective in ensuring better land access to rural populations. However, the total agricultural land incorporating large farms is still concentrated in the hands of a few people. Most farmers are smallholders with access to a very small share of Peru’s agricultural land.

Peru’s agricultural sector encompasses a continuously ageing workforce. Although women’s position in Peru has been improving concerning education, land ownership and agricultural income, men continue to predominate in these areas. Furthermore, indigenous communities in the country face comparative disadvantages, particularly in rural areas. Indigenous workers primarily work in the agriculture, fisheries and mining sectors, and have the highest rate of informality.

Despite Peru’s rich natural resources, the country faces growing challenges related to climate change, such as increased vulnerability to natural disasters and water scarcity. These will likely affect the poor and vulnerable the most severely, increasing climate-induced inequality.

Peru diversified and upgraded its position in GVCs through the growth of high-value commodities markets. Transitioning from an agro-food importing country to an agro-food exporting country, Peru has become a key supplier of fresh grapes, green asparagus, blueberries, avocados and other fruits and vegetables to markets worldwide.

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