Bottlenecks and opportunities in the Peruvian vegetable sector
Problems
The vegetable sector in Peru is characterized by two types of production: large-scale, export-oriented; and small-scale for the domestic market. The former includes companies using advanced technology and cultivating on extensive areas. Small-scale production accounts for more than 90% of vegetable production, is performed by individual farmers dedicated to supplying the domestic market, using rudimentary technology and on a reduced scale.
The sector faces significant challenges, including fragmentation of land ownership, limited access to technology and resources, excessive use of agrochemicals, and insufficient market access. Small producers rely on basic technologies for cultivation, such as simple nurseries and open-field farming, with limited adoption of advanced techniques such as greenhouse cultivation. Excessive use of agrochemicals poses health and environmental risks, reflecting a need for improved agricultural practices. Furthermore, the lack of studies on the sector makes it very difficult for new actors to understand and enter potential markets offered by agricultural value chains.
Solutions
The Dutch Embassy in Lima commissioned Resilience to carry out a study aimed to describe the vegetable sector in detail, its bottlenecks and potential solutions to overcome them, including business opportunities for Dutch companies. For this we interviewed and visited, in Lima, Ica and surroundings, 19 actors of the private, public and academic sector.
Impact
By leveraging their expertise in technology, infrastructure development, and market access, Dutch companies can contribute significantly to the growth and modernization of Peru’s horticulture industry. Strategic partnerships between Dutch and Peruvian firms can focus on innovation and knowledge transfer, facilitate the adoption of improved and advanced agricultural practices, and enhance productivity. Moreover, investments in areas such as seed production, artificial intelligence applications, substrate supply, and processing facilities align with the Dutch strengths in agricultural innovation and value chain management.
Peru
Team members
Timeframe
2023-2024
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