 | Peru |
INVESTMENT PRESENTATION
THE PROPOSAL
Peru is presenting three investment proposals at this year's Investment Forum, targeting key agricultural subsectors. The first proposal expands the cocoa value chain by adding the coffee industry in Jaén and San Ignacio provinces, with agroforestry systems covering approximately 14,000 hectares. The second proposal centers around the Andean avocado value chain in Huancavelica, promoting direct linkages between smallholders and the country's largest agroindustry, eliminating intermediaries. Lastly, the third proposal focuses on improving agricultural production and processing capacities to enhance the native potato sector in Junin.
These investments address critical bottlenecks that hinder profitability, particularly for small-scale producers. The interventions include infrastructure and equipment development for cocoa and coffee processing, establishment of seed improvement units, potato collection and transformation centers, credit facilities, and business capacity-building. Collection and packaging infrastructure for avocados, along with rural extension services, ensure organic certifications in Churcampa, Tayacaja, and Huancavelica provinces.
The total cost of these proposals is approximately US$ 45.8 million with an estimated average internal rate of return of 28%. Peru aims to enhance productivity, profitability, and sustainable growth while promoting inclusive development throughout the country.
These investments foster sustainable growth, enhance product quality, and promote economic development while supporting smallholder farmers. Strategic alliances, collaborations, and infrastructure development contribute to the success and sustainability of initiatives within the cocoa, coffee, organic avocado and native potato value chains in Peru.
Poverty
Potential
Efficiency
COMMODITIES AND INTERVENTIONS
Native Cocoa and Organic Coffee Agroforest System
This first intervention seeks to establish four cocoa collection and primary processing centers, to make use of mucilage in Jaén and San Ignacio. It also aims to leverage fermented and dried cocoa beans for cocoa nibs’ production and cocoa husk-based biofertilizer. In the coffee value chain, the intervention focuses on establishing a biofertilizer production plant to rejuvenate soil productivity in coffee and cocoa-growing areas. With a cost of US$ 2.77 million, this proposal seeks to benefit 2,500 families directly and 12,500 indirectly and increase their incomes by 58% for cocoa producers and 30% coffee farmers, with additional improvement by collecting and credit access.
Organic Avocado
The investment proposal focuses on implementing an avocado packing and processing plant for exports, emphasizing the participation in international markets. Likewise, technical assistance and support to improve organic management is expected to be developed. Additionally, and through a partnership with the Cobriza mining company, the project facilitates economic development in the Andean avocado value chain in Huancavelica, establishing a direct link between smallholders and the agroindustry, creating a sustainable market for organic avocados in the region. This intervention will benefit 4500 families directly and 22,500 indirectly and increase their incomes by 48% as a vertical transfer of profits by collecting and increase in sales price.
Native Potatoes
The investment proposal focuses on enhancing Junín’s native potato agriculture and commercialization. The project seeks to increase the production of potatoes from 112 ha to 1000 ha by establishing a new certified seed unit to enhance potato genetics to acquire greater disease resistance, a key bottleneck in the chain, leading to a 20% efficiency increase. Moreover, by the creation of two collection centers and four processing plants, it resolves the challenge of individual bulk marketing and enables producers to add value through the transformation into native potatoes chip or potato flour increasing by 39% the product price. Finally, facilitated financial access will be provided, expanding further agricultural productive capabilities. This intervention will benefit 11,000 families directly and 30,000 indirectly in the region; and as a direct result of the primary processing plant, it is expected their incomes to increase 153%.