GRAIN AND FLOUR MARKET IN PERU AND CHILE

 production in Peru is primarily comprised of rice and . According to data of United States Department of , Foreign Agriculture Service (USDA FAS), Peru which produces 1,9 million tons rice in 2015/16 season is expected to rise 2 million tons in 2016/17. In Chile,  is the most produced product. Chile produced 1,7 million tons wheat in 2015/16 season, it is estimated to decreased 1,3 million tons in 2016/17 season. Production of corn in Chile is close to , corn production in 2016/17 is realized 1,1 million tons.

ulke - GRAIN AND FLOUR MARKET IN PERU AND CHILE

Although grain production in Peru is mainly dominated by rice and corn, in Chile, wheat and corn are the primary product in production and consumption of . The commercial economy of Peru, the third largest country in the South American continent, is largely based on minerals,  products, industrial products and fisheries. The main crops grown in the country are cotton, sugar beet, coffee, rice, potatoes, beans, corn,  and tobacco.

The agricultural sector accounts for 3.6 per cent of Chile’s Gross Domestic Product and employs 9.5 per cent of its workforce. Since the 1980s, modernization studies in agriculture have been continuing. In the last 10 years, production areas of fruit and animal feed plants have expanded considerably; grain, vegetable and industrial plant production has declined. Chile is one of the leading exporters of certified seeds.

PLACE OF PERU IN GLOBAL GRAIN PRODUCTION
Grain production in Peru is primarily comprised of rice and corn. According to data of United States Department of Agriculture, Foreign Agriculture Service (USDA FAS), rice production in Peru was recorded at 2,1 million tons in 2013/14, and 1,9 million tons in 2014/15. Rice production which remained same in 2015/16, it is expected to rise 2 million tons in 2016/17.

Another important product produced by Peru is corn. Peru produced 1,5 million tons of corn in 2013/14 and 2014/15, and the production was increased to 1,6 million tons in 2015/16. In 2016/17, Peru is expected to produce 1,7 million tons of corn. Barley is another important grain grown in this country. Peru produced 220,000-240,000 tons of barley in 2015/16 and 2016/17 seasons. It is estimated that Peru produced 205,000 tons wheat in 2015/16 and 200,000 tons wheat in 2016/17.

The main product in grain consumption in Peru is corn. According to USDA data, Peru consumed 3,8-4,3 million tons of corn in 2013/14 and 2015/16, and it is estimated to consume 4,6 million tons in 2016/17. In terms of consumption of rice, the numbers are estimated around 2,2 million tons between 2013/14 and 2015/16. The estimated consumption amount in 2016/17 is remained same. Consumption of barley in Peru was around 325,000-350,000 tons from 2013/14 to 2015/16. The estimated consumption amount in 2016/17 is 330,000 tons

PLACE OF CHILE IN GLOBAL GRAIN PRODUCTION
Grain production in Chile is primarily comprised of wheat and corn. Chile which produces 1,3 million tons wheat in 2013/14 season, increased their production to 1,7 million tons in 2015/16 sason. It is estimated that Chile produced 1,3 million tons wheat in 2016/17 season. In terms of production of grains, corn is the second most produced product. From 2013/14 to 2016/17, production of corn is around 1,1 million tons. Production of oat is 420-610 tons and production of rice is between 86 and 112 tons in Chile.

The grain product that is most consumed in Chile is corn and wheat. Consumption of corn was 2,6 million tons in 2013/14, and 2,9 million tons in 2014/15. It is estimated that Chile had same corn consumption amount in 2015/16 and 2016/17 seasons. The amount of wheat consumption is seen to be around 2,3 million tons between 201/14 and 2016/17. Consumption of oat is between 355-570 thousand tons in Chile and 225,000-240,000 tons rice are consumed in Chile between 2013/14 and 2016/17 seasons.

PERU AND CHILE IN GLOBAL TRADE OF GRAIN
Peru does not suffice itself with its corn and wheat production, so resorts to imports, particularly to supply corn and wheat. According to USDA data, 2,2 million tons of corn was imported in 2013/14, which rose to 2,7 million tons in 2014/15, and to 2,9 million tons in 2015/16. It is estimated that the same amount of wheat is imported in 2016/17. Peru which imported 2,1 million tons wheat in 2013/14 season, is estimated to import 2,9 million tons wheat in 2016/17.

On the other hand, in Chile, imports of grains are primarily based on corn. Chile imported 1,4 million tons of corn in 2013/14, which rose to 1,6 million tons in 2015/16. Chile is estimated to import 1,8 million tons corn in 2016/17 season. Chile imported 841,000 – 850,000 tons of wheat from 2013/14 to 2016/17.

FLOUR INDUSTRY IN PERU AND CHILE
According to gain report of United States Department of Agriculture, Foreign Agriculture Service (USDA FAS), for Peru, Wheat is a minor crop in Peru, concentrated mostly in the temperate southern highlands at between 2,800 and 3,500 meters above sea level. Wheat production is rudimentary and cultivation remains limited by mountainous geography. Wheat production is limited to mostly soft wheat, which is often consumed as purees or as a soup ingredient and not good for milling. Peru produces about 1.4 MMT of wheat flour per year. Of this amount 63 percent is used by the local baking industry, 20 percent goes to pasta manufacturing, 12 percent to the cookies and crackers sector and 5 percent for domestic use. Roughly 70 percent of domestic flour is sold through traditional markets, while only 30 percent of flour is sold in supermarkets.

According to gain report for Chile, total human consumption of wheat has been rather stagnant and in line with population growth during the last few years. According to the local  association, FECHIPAN, Chileans consume an average 80 kilos of  per capita per year, making them the second largest consumers of bread in Latin-America next to Mexico. Approximately 25,000 persons are employed by the milling and bakery industry. The  is Chile’s main wheat destination. An estimated 85 percent of Chile’s total wheat supply (domestic production plus imports) is milled for flour. An estimated 80 percent of wheat flour is sold directly and produced by 71 milling facilities nationwide.

FLOUR TRADE IN PERU AND CHILE
According to the data of United Nations Food and Agriculture Organization (FAO), exports of wheat flour by Peru varied between 3,4 million to 12,4 million tons in 2010-2013. Peru exported 3,4 million tons of wheat flour in 2011, and the number rose to 12,4 million tons in 2013 with record rising. Import of wheat flour by Peru was 1,5 million tons to 15,2 million tons in 2010-2013. Peru imported 15,2 million tons of wheat flour in 2011, and the number decreased to 1,5 million tons in 2013.

According to FAO data, the numbers about Chile’s wheat flour export are not official. Chile imported 10,3-10,9 million tons wheat flour in 2010-2011. But this decreased 57 tons in 2012 and 10 tons in 2013. Chile’s consumption relies on imports. Country’s import numbers show declining. 1,000 to 21,000 tons of wheat flour was imported between 2010 and 2013. Wheat flour import was at 21,000 tons in 2010, which decreased to 1,000 tons in 2011. Wheat flour import increased some in 2012 and 2013, and it is realized as 2,000 tons.

Source: https://millermagazine.com/english/grain-and-flour-market-in-peru-and-chile/.html

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