Hoosier farming execs see potential partner in Peru as country’s ag minister visits Indiana
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The interconnected nature of the global economy was on display Monday as Peru’s Minister of Agrarian Development and Irrigation was in Indianapolis.
During his visit, Minster Angel Manero Campos met with representatives of Indiana’s agricultural industry and Gov. Elect-Mike Braun as Manero looks to ramp up Peru’s food-related exports in the coming years.
That’s because Peru and China have recently signed an expanded trade agreement that will soon see the South American country increase its agriculture exports to Chinese markets by as much as 20% in the next decade or so.
In an interview Monday with Inside Indiana Business, Manero said Peru has traditionally exported fruit, but now it’s looking to ship pork, chicken and beef to Asian markets.
Where Indiana farmers hope they fit into that equation is by supplying Peru more corn and soybean as feed for the livestock the country will need to meet its goals.
“Peru is going to be increasing exports with this new relationship with Asia,” Manero said through a translator. “So we’re going to be exporting meats, all different types of meats, so we’re going to require more corn and more soy.”
According to numbers from the U.S. Department of Agriculture, Indiana exported a little over $5 million worth of ag products to Peru in 2023. Through October of this year, that number is already $6.3 million with animal feed, processed food and pork being the most common exports.
Don Lamb, director of the Indiana State Department of Agriculture, met with Manero on Monday, along with executives from a variety of Hoosier agricultural organizations. Lamb said initial conversations between the two contingents were promising due to the fact that Indiana has products Peru will need in the near future.
“There’s a lot of potential for growth,” said Lamb. “If you’re going to export a meat product, you’re going to need corn and soybeans to feed those animals to create that product. It’s partly because they’re an expanding market within themselves and we want to come alongside them and help them expand.”
Global food chains
Peru has been a relatively attractive exporting partner for U.S. food producers. The U.S. was the second-largest food supplier to Peru in 2022, per the U.S. Department of Agriculture. That same year saw Peru as the second-largest export market for U.S. agricultural products in South America at around $1 billion. Trade between the two counties is aided by the U.S.-Peru Trade Promotion Agreement signed in 2009.
Around that time, Peru also signed a similar trade agreement with China and quickly became the leading supplier of avocados and blueberries to the Asian superpower.
The relationship between Peru and China is now deepening with the massive Chancay Port project that opened within the last month. The Chancay Port is a deep-water port just north of Peru’s capital city Lima that was built with $1.3 billion worth of Chinese investment.
According to national news reports, the new port eliminates the need for Peruvian products to be shipped to the Panama Canal before they travel across the Pacific Ocean, saving a significant amount of travel time.
Lamb said the trade arrangements might seem strange, but he’s focused on how Indiana farmers can benefit from Peru’s strategy.
“In this situation, China’s made an investment in Peru,” Lamb said. “Sometimes we might think of ourselves in competition with that market. But that’s when you take those opportunities and you figure out where your part of that equation is and you fit into that.”
As Peru begins to ramp up its meat production to ship to China, Manero said he’s interested in Indiana’s agricultural offerings due to the efficiency and technology the state has demonstrated.
“Technology,” Manero said through a translator when asked what has impressed him about Indiana’s ag sector. “Indiana has advanced a lot in precision agriculture and that’s a big point for us.”
Manero was scheduled to meet with Braun on Monday afternoon. He said he planned to speak with the Gov.-elect on potential partnerships with Indiana companies to develop water infrastructure projects for Peru.