USDA GAIN: Oilseeds, Cotton, Sugar, Grain and Feed
12 March 2012
USDA GAIN: Peru Oilseeds and Products Annual 2012
Soybean meal imports into Peru are forecast at 1.030 MMT in MY 2012, a slight increase of 22,000 MT compared to the
previous year. U.S. soy exports dropped 80 percent, to only 20,659 MT. Fishmeal production for CY 2012 is estimated
at 1.315 MMT, remaining constant as the previous year. Total fish catch for reduction in CY 2011 was 6 MMT, about a
ten percent increase compared to the previous yearSoybean meal imports into Peru are forecast at 1.030 MMT in MY 2012, a slight increase of 22,000 MT compared to the
previous year. U.S. soy exports dropped 80 percent, to only 20,659 MT. Since Peru eliminated import duties for corn, the
U.S. lost the trade preference granted under the U.S.-Peru TRQ which significantly reduced corn shipments from the U.S.
This was a disincentive for importing U.S. soybean meal since traders usually combine corn and soybean meal in a vessel.
Due to constant pressure from anti biotechnology organizations led by the Peruvian Ministry of Environment, the Peruvian
Congress approved a ten year moratorium on genetically modified crops. Implementing regulations are still pending, but
this law could potentially disrupt trade since it requires a risk assessment on all imported GM products.
Fishmeal production for CY 2012 is estimated at 1.315 MMT, remaining constant as the previous year. Total fish catch for
reduction in CY 2011 was 6 MMT, about a ten percent increase compared to the previous year. Favorable weather
conditions, especially water temperature, caused an increase on total catch which translated in more fishmeal production.
Oil, Soybean
Soybean oil imports are forecast at 340,000 MT in CY 2012, an 8 percent increase compared to the previous year. Imports
in CY 2011 were 315,398 MT, of which 85 percent was imported from Argentina. The U.S. soybean oil exports represented
9 percent of the Peruvian market share. Soybean oil consumption in CY 2011 was 355,000 MT and is expected to continue
growing as Peru’s economy expands. Peru’s Gross Domestic Product (GDP) is expected to grow between five and seven
percent per year for the next three years.
Oil, SoybeanImported crude soybean oil is refined and bottled in Peru for retail sale. Peru does not produce any soybeans, and the
limited crushing capacity is used to produce full fat soybean meal for feed.
Meal, Soybean
Soybean meal imports into Peru are forecast at 1.030 MMT in MY 2012, a slight increase of 22,000 MT compared to the
previous year. A very dynamic poultry industry will continue driving soybean imports and consumption in Peru.
With an estimated per capita consumption of 36 kilograms in CY 2011, poultry meat is a staple product in the Peruvian
diet. Peru’s 490 million chicken-per-year poultry market is the major user of soybean meal (meal constitutes about 12
percent of broiler rations). Poultry meat continues to be one the cheapest sources of protein in the Peruvian diet, total
consumption was 880,000 MT in CY 2011. There are about 20 formal poultry operations in Peru, which control around a
thousand farms. Total market size for CY 2011 was estimated at $1.45 billion and it is expected to increase two percent in
CY 2012.
Total soybean meal imports in CY 2011 were 1,007,598 MT. Paraguay continued to be the leading soybean meal exporter
to Peru in CY 2011 with 38 percent of the market share. U.S. soy exports dropped 80 percent, to only 20,659 MT. Since
Peru eliminated import duties for corn, the U.S. lost the trade preference granted under the U.S.-Peru TRQ which
Meal, Soybeansignificantly reduced corn shipments from the U.S. This was a disincentive for importing U.S. soybean meal since traders
usually combine corn and soybean meal in a vessel.
Soybean meal imports from all origins into Peru are duty free.
Meal, Fish
Fishmeal production for CY 2012 is estimated at 1.315 MMT, remaining constant as the previous year. Total fish catch for
reduction in CY 2011 was 6 MMT, about a ten percent increase compared to the previous year. Favorable weather
conditions, especially water temperature, caused an increase on total catch which translated in more fishmeal production.
Peru’s fishing industry is tightly controlled by the government. In an effort to reduce over-fishing and enhance the
sustainability of Peruvian fisheries, the government used to establish a fishing quota, at the beginning it was 8.5 MMT per
year but it was reduced to 5 MMT. Currently, the government has established individual fishing quotas per boat and
individual processing licensing per plant. Additionally, the government sets fishing bans which depent on the size of the
fish.
Peru produces two types of fishmeal: Fair Average Quality (FAQ), with protein content between 62 and 65 percent, which is
dried by direct heat, and Prime, which is indirectly dried by steam and has a protein content of 66-67 percent. International
fishmeal prices in CY 2012 remained high, price of Prime meal averaged $1400 per MT compared to $700 a few years ago.
Currently, total industry debt is estimated at $600 million with annual financing costs of about $180 million. This debt was
generated in 1997/1998 as a result of El Niño weather phenomenon that drove the fish away from the Peruvian coast and
halted all industrial fishing activity for 18 months.
There are 90 fishmeal plants currently working in Peru. The Peruvian fishing fleet is comprised of 984 boats: 684 steel
boats with storage capacity over 500 cubic meters and 300 wooden boats with storage capacity of 110 cubic meters. Total
processing capacity is 7,500 MT per hour; about four times more than they are allowed to catch.
Consumption:
Local fishmeal consumption is insignificant and does not have a large impact on the export market. Consumption for CY 2012 is forecast at about 14,000 MT. Local consumption is expected to remain low and even decrease due to high international prices and increased demand from foreign aquaculture industries. Fish is used as a protein source in animal feed; especially shrimp farms located northern Peru.
Trade:
Peru’s fishmeal exports for CY 2012 are forecast at 1.3 MMT. China continued to be the leading export market for
Peruvian fishmeal with 58 percent of the market share in CY 2011. Other important markets are Germany (9 percent) and
Japan (7 percent).
Fishmeal exports totaled $1.8 billion in CY 2011 at an average export price of $1,365 per MT. Fishmeal is Peru’s fourth
largest export, after gold, copper, and oil.
Fish Oil Outlook
Fish oil production in CY 2011 was 338,000 MT. Post forecasts production at 340,000 MT in CY 2012. Oil extraction is
directly related to water temperatures and can vary significantly from year to year. Under normal weather conditions the oil
extraction rate should be around 8 to 10 percent, but can drop to as low as 1 percent in unusually warm waters.
Exports for CY 2012 are forecast at 320,000 MT. In 2011, Chile, Belgium and Denmark were the major importers of Peru’s
fish oil.
Consumption in CY 2011 is forecast at 20,000 MT. Domestic consumption will remain low due to increasing fish oil
demand in other countries, especially as a feed ingredient for a growing aquaculture industry
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