The Covid 19 pandemic has accelerated digital transformation in many economic sectors. Agriculture is no stranger to these changes. Five years ago a Mckinsey study concluded that agriculture was the activity with the least digitization from a total of 20 activities studied (1). Therefore, the potential for the use of technology in the agricultural and agro-export sector is extremely attractive.
Agro-export in Peru
Agricultural Peruvian exports have expanded from 0.4% of GDP in 2001 to an estimated 2.7% in 2019(3)
For 2019 Peruvian agricultural exports totaled $7.5 billion dollars and the goal, before the pandemic, for 2021 was to reach $10 billion dollars (2). There is great growth potential due to the entry of Peruvian agro-exports to new markets such as China, Australia and India, countries which trade agreements are being in negotiation.
Because of the pandemic, between January and May 2020 Peruvian exports fell 25.7%. However, agro-exports grow by 2.8% in the same period (4).
Peruvian agricultural exports 2020-2021
For 2021 Peruvian agricultural exports spec to close at more than $9 billion dollars
In 2020 the number of Agro export companies in Peru was around 2,339 and 62% of export companies was small size. (8)
La Libertad is the first agro-exporting region of Peru (including chemicals derived from agriculture). In 2020, agricultural exports from La Libertad registered a record value (US $ 1,591 million) that represented 21% of the country’s total agricultural exports.
At least 50% of the largest agro-export companies in Peru already apply some degree of digitization in their processes; being the most common the use of technology to control irrigation (1).
Largest Agro-export Companies in Peru (5)
In 2020 SVG Ventures has published the annual ranking of the Top 50 growth stage AgTech companies in the industry. Recognizing companies across 6 different technology categories.
31 companies of the list are from United States.
The Peruvian competitors are represented by the company Space AG. This is a Peruvian startup that provides Agtech solutions since 2017 and has deals in 4 countries in the region. The development of startups in Peru is still slow.
Senior trade officer