Title page 1

Contents 6

Foreword 4

Acknowledgements 5

Acronyms and Abbreviations 11

Executive Summary 13

Assessment and policy recommendations 19

1. The agricultural policy context 31

1.1. Context 33

1.1.1. General features of the Peruvian economy 33

1.1.2. Demographic and social features 35

1.1.3. Political and institutional features 38

1.1.4. Natural resources and climatic conditions 39

1.2. The role of agriculture in the economy 40

1.2.1. Agriculture in GDP, employment and income 41

1.2.2. Agricultural production systems 44

1.3. Structural change in the agro-food sector 46

1.3.1. Trends in agricultural land 46

1.4. Inclusiveness of the sector concerning gender, youth, and Indigenous Peoples 48

1.4.1. Women's participation in the sector is increasing, yet barriers remain 48

1.4.2. The agricultural sector employs a large share of Indigenous workers 49

1.4.3. The working population in agriculture is ageing 50

1.5. Agricultural Productivity 50

1.5.1. Agricultural output has seen steady growth over the past decades 50

1.6. Trade and participation in global value chains 54

1.6.1. Evolution of agro-food trade 54

1.6.2. Integration of the agro-food sector in international markets 58

1.7. Upstream and downstream sectors 62

1.7.1. Farmers' access to key inputs is limited 62

1.7.2. Market integration sees high inequalities 62

1.8. Conclusions 62

References 64

Notes 68

Annex 1.A. Crop production by departments, selected crops, 2024 70

2. Trends and evaluation of agricultural policies 72

2.1. Overview of the agricultural policy framework 74

2.1.1. The agrarian reforms of the 1960s and 1970s 74

2.1.2. Economic liberalisation 75

2.1.3. The current agricultural policy framework 77

2.1.4. Institutions governing the agricultural sector 79

2.2. Domestic policies 82

2.2.1. Price support measures 83

2.2.2. Income support measures 83

2.2.3. Reduction of input costs 83

2.2.4. Agricultural infrastructure projects 87

2.2.5. Rural development programmes 89

2.2.6. Marketing 90

2.2.7. Agri-food safety measures 92

2.2.8. Preferential tax policies for farmers 93

2.3. Trade policies affecting the agricultural sector 94

2.3.1. Main objectives of agro-food trade policy 94

2.4. Risk management and resilience policies 99

2.4.1. Main resilience policies 99

2.4.2. Risk management tools in agriculture 100

2.5. Evaluation of support to agriculture 101

2.5.1. Support for agricultural producers 102

2.5.2. Support to general services for agriculture 109

2.5.3. Support to consumers of agricultural products 111

2.5.4. Total support to agriculture 112

2.6. Conclusion 114

References 115

Note 120

Annex 2.A. Organisational chart 121

Annex 2.B. Indicators of support to agriculture 122

Annex 2.C. Agricultural policies and support for selected individual commodities or groups of commodities 124

3. Natural resource management in Peru 128

3.1. Key environmental objectives and institutional framework of environmental regulations 130

3.1.1. Context and objectives 130

3.1.2. Governance of environmental sustainability 131

3.1.3. Biodiversity and ecosystems 135

3.1.4. Organic farming 140

3.1.5. Soil health 143

3.1.6. Control of animal and plant pests and diseases 146

3.1.7. Fertiliser input and nutrient balances 148

3.1.8. Ammonia emissions 149

3.2. Water management policies 150

3.2.1. Context of water policies 150

3.2.2. Water abstractions for agriculture 151

3.2.3. Water governance and management 154

3.2.4. Water quality and agriculture 157

3.3. Climate change mitigation efforts in Peruvian agriculture 157

3.3.1. Peru's greenhouse gas (GHG) emissions from agriculture 157

3.3.2. Peru's climate change commitments 160

3.3.3. Peru's domestic mitigation efforts 160

3.3.4. Overall impacts of climate change 161

3.3.5. Impacts of climate change on Peruvian agriculture 162

3.3.6. Peru's domestic adaptation efforts 163

3.4. Forest loss/deforestation situation and policies 164

3.4.1. Peru's forest landscape 164

3.4.2. Governance and policy approaches 167

3.5. Moving towards an energy-efficient and low-carbon agricultural sector 173

3.6. Conclusions 174

References 176

Notes 188

Annex 3.A. Peru's climate change adaptation measures 190

4. Agriculture Innovation System 192

4.1. General innovation system 193

4.1.1. Performance of the Peruvian innovation system 193

4.1.2. Policy approach and framework: National and regional strategies 195

4.2. Actors, institutions and governance of the Agricultural Knowledge and Innovation System, AKIS 195

4.2.1. Main actors of the AKIS and their role in agricultural innovation 195

4.2.2. EEAs are fundamental to the structure and functionality of the Peruvian AKIS 199

4.2.3. Farm advisory services 200

4.2.4. The role of the private sector in knowledge generation and transfer 202

4.3. Public and private investments in R&D&I 203

4.4. Policies and investments facilitating the flow of knowledge 205

4.4.1. Digitisation, connectivity, deployment and use of digital technologies 205

4.4.2. Using data for a transition towards a more sustainable and productive model of agriculture 208

4.4.3. Protection of intellectual property rights 208

4.4.4. Education and training 212

4.5. International co-operation in agricultural R&D 214

4.5.1. The National Agricultural Innovation project (PNIA) played a key role in developing Peru's agricultural innovation system 215

4.5.2. Other international partnerships are contributing to agricultural innovation 216

4.6. R&D performance 217

4.6.1. Outputs of R&D investment in agro-food science (publications and patents) 217

4.6.2. Innovation for sustainability 220

4.7. Conclusions 220

References 222

Note 227

Annex 4.A. SINACTI and CONCYTEC 228

5. Food systems 230

5.1. General landscape of the generic agricultural supply chain, including market concentration 231

5.1.1. Distribution of value added across the agro-food supply chain 232

5.1.2. Market concentration in processing and retail 232

5.1.3. Co-operation and initiatives to improve farmers' position in the value chain 233

5.1.4. Logistics and integration into global value chains 236

5.1.5. Responsible agriculture supply chains 240

5.2. General landscape of food system policies, including market regulations 240

5.2.1. Food assistance programmes 241

5.2.2. Market regulation and competition issues 245

5.2.3. Food waste 246

5.3. Demand-side policies for healthy diet and consumption choices, and the sustainability of food systems 248

5.3.1. Selected dietary risks 248

5.3.2. Policies to encourage healthier and sustainable food choices 251

5.4. Inclusive processes for navigating the triple challenge 255

5.4.1. Policy assessment and evaluation 256

5.4.2. Engagement at the international level 258

5.5. Conclusions 259

References 261

Notes 269

6. Agricultural policy performance in achieving national objectives 270

6.1. Policy objectives and outcomes performance 271

6.1.1. Policy objectives 271

6.2. Benchmarking productivity and environmental sustainability performance compared with other OECD countries 272

6.2.1. Agricultural productivity growth 272

6.2.2. Sustainability productivity growth 275

6.3. Conclusions 277

References 278

Notes 278

Table 1.1. Economic and agricultural indicators in Peru, 2000-2024 33

Table 1.2. Share of major crops harvested in Peru, 2022 44

Table 1.3. Changes in the composition of agricultural production 51

Table 1.4. Agriculture and food sectors forward and backward linkages, 2000, 2010 and 2020 60

Table 1.5. Evolution of the services' value-added content of exports, 2000, 2010 and 2020 61

Table 2.1. National Agricultural Policy 2021-2030 78

Table 2.2. Water price rates according to use and availability, 2024 86

Table 2.3. Peru's major rural development programmes 90

Table 2.4. Agricultural MFN tariffs in selected countries, 2023 96

Table 2.5. Peru: Agricultural Support Estimates 103

Table 2.6. Peru: Agricultural Support Estimates 104

Table 3.1. Categories of protected natural areas in Peru, 2025 138

Table 3.2. Agrobiodiversity zones in Peru 139

Table 3.3. Distribution of water availability across Peru 151

Table 3.4. Water stress levels across Peru 151

Table 3.5. Public-private partnerships in agriculture and irrigation in Peru 155

Table 3.6. Peru's greenhouse gas emissions by sector, 2021 158

Table 3.7. Agriculture mitigation measures in Peru's NDCs under the Paris Agreement 161

Table 3.8. Land-use and forestry mitigation measures in Peru's NDCs under the Paris Agreement 161

Table 3.9. Distribution of forest coverage by region in Peru 164

Table 3.10. Forest licence titles by category in Peru in 2023 171

Table 4.1. PNIA main achievements and key limitations 215

Table 5.1. Peru's policy mix to encourage healthier food choices 252

Table 5.2. Areas where further policy action in Peru could be explored 254

Table 5.3. The five key objectives of Peru's National Plan for Food and Nutrition Security 256

Boxes 10

Box 1.1. Agricultural activities across Peru's natural regions 45

Box 1.2. Coca leaf production in Peru 52

Box 1.3. Peru leads global exports of blueberries 56

Box 1.4. Indicators to measure engagement in global value chains and identify value adding pathways in agriculture and food trade 59

Box 2.1. The co-ordination of agricultural policies 81

Box 2.2. Modifications to the Peruvian Price Band System 98

Box 2.3. OECD's system of classification of budgetary expenditures 110

Box 3.1. Main legislation and strategies regulating the environmental impacts of agriculture in Peru 133

Box 3.2. Indigenous land conservation in Peru 140

Box 3.3. Traditional methods of water harvesting 156

Box 3.4. Community-based forest monitoring 169

Box 3.5. Legislative changes to the Forestry and Wildlife Law 170

Box 4.1. Potato crop development and research in Peru 211

Box 5.1. Peru's agricultural co-operatives under the agrarian reforms 234

Box 5.2. The OECD five-track policy approach encourages healthier food choices 251

Annex Table 4.A.1. Stakeholders within Peru's National System of Science, Technology and Innovation (SINACTI) 228

Annex Table 4.A.2. CONCYTEC's strategic objectives and policy guidelines for the development of science, technology and innovation, STI in Peru, 2024 229