Agriculture is one of the most dynamic sectors of the Peruvian production and exports and, certainly, has a huge potential in the future. Over the last 10 years, modern agriculture has created more than 400,000 direct formal jobs and over 900,000 indirect jobs.
Furthermore, modern agriculture has opened important development hubs throughout several regions of Peru, where poverty rates have simultaneously and systematically declined, compared to the last decade; in the coastal regions, rates have fallen from 69% to 28% with regard to dependent farmers. The expansion of agricultural activity is not limited to geography and quantification but new products are included every year in the export basket and there are more markets demanding local crop quality.
However, it is worth noting that while this activity has experienced a good level of production and shipments to international markets, it has yet to be consolidated, as only 18.5% of the agriculture at national level (oriented to both domestic and foreign markets) is formal. For that reason, it is very important that more companies, in particular the small ones, may benefit from the Agricultural Promotion Law, which will greatly facilitate on solid basis its eventual development, generating a relevant productive and social inclusion.
This study carried out by APOYO Consultoria S.A., at the request of AGAP, explains in an analytical manner, the contribution of modern agriculture to the economic and social development of the country, applying variables such as employment, poverty reduction, social inclusion, decentralization, greater productivity and investments and quality export.
Agricultural producers work constantly on improving the agricultural supply and strengthening their reputation in the markets where they offer their products. They are concerned about aspects such as technological development, investment, extension of agricultural border, diversification of crops, and they seek to improve production competitiveness. To that effect, it is important to maintain the legal stability of the rules governing the productive and business activity, as well as further development of national infrastructure in transportation and communication services, irrigation works and sanitation control services and market access service and export services in intelligence and business promotion.
On behalf of AGAP, we are willing to provide our support and capacity to integrate ourselves into a sustained and responsible work with all the stakeholders of the productive and agro-export chain and all those State institutions that make it possible to achieve a common objective, the national responsible development from an economic, social and eco-friendly environmental point of view. We are a trade association open to dialogue that promotes the national agricultural development.