Living in Peru : your everyday companion

US-based Wal-Mart, the largest retail chain in the world, is interested in opening stores and shopping centers in Peru, along with other investments, Peru’s minister of Foreign Trade and Tourism, Mercedes Aráoz, said today.

“We have met with Wal-Mart representatives and they have expressed interest in investing in the country’s trade, in the business of supermarkets and shopping centers linked to tourism, which would help to expand our services”, she said to Andina news agency.

Aráoz said that this meeting took place during her participation in the Americas Competitiveness Forum held in Atlanta (Georgia), United States from August 17-19.

She also indicated that this renowned retailer buys a significant amount of fruits and vegetables in Peru, such as citrus fruits and asparagus.

The minister commented that Wal-Mart representatives have proposed to increase their demand in products such as Peruvian clothing, coffee and cocoa.

“Even though Wal-Mart has not mentioned when it will enter the Peruvian market, we have said to them that there are plenty of investment possibilities in the country and there is also enough space to compete”, she added.

News source: ANDINA

Peru’s exports of fresh grapes totaled 42.64 million dollars during the first half of this year, a 99.3 percent increase when compared to the same period in 2007, the Commission for the Promotion of Peruvian Exports and Tourism (PromPeru) reported on Wednesday.

The main destination markets were Hong Kong (7.73 million dollars), China (6.57 million), the United States (6.38 million), the Netherlands (6.16 million) and Spain (2.39 million).

News source: ANDINA

A total of fifteen Argentine companies established and operating in Peru have so far invested more than $2 billion in the country, Argentina's ambassador to Peru, Dario Alessandro, said today.

"This is a significant investment in Peru and we are optimistic that this amount will increase significantly in the short term, but everything depends on the negotiations conducted between the business sectors of both countries", he said.

Alessandro said that the interest of Argentine businessmen in investing in Peru has greatly increased in recent years because of the good economic situation the country is going through.

Representatives from forty Argentine companies are currently participating in the seminar "Trade and Business Opportunities between Argentina and Peru" which has been organized by the Argentine Embassy and the Lima Chamber of Commerce (CCL).

"This is the most important and largest multisectoral business mission visiting Peru. This delegation plans to hold more than 400 meetings with their Peruvian counterparts", Alessandro noted.

He mentioned that most companies attending this seminar operate in the wine, food, cosmetics, legal advice and software industry.

News source: ANDINA

Peru has the potential to export 3.5 billion dollars worth of wood products, taking into account that the United Nations Food and Agricultural Organisation (FAO) has forecast that world wood demand will increase to over 5 billion cubic meters annually by the year 2010, Peru's Foreign Trade Society (ComexPerú) announced on Sunday.

Comex explained that Peru has 15,000 hectares of forest plantations for industrial purposes, and 9.2 million hectares of permanent production forests.

By 2020, it is expected that both number of hectares increase to 100,000 and 24 million, respectively.

With this increase, Peru's production will rise from 2.57 million cubic meters to 30.24 million. Comex detailed that in 2007 Peru exported $211 million worth of wood and registered a growth of 96 percent between 2003 and 2007.

The main destination markets were Mexico, the United States and China, with 33, 32 and 20 percent, respectively.

The major wood exporting countries are Canada, the United States, Finland, Sweden and Germany; while the main importers are the United States, China, Japan, Germany and the UK.

News source: ANDINA

The Peruvian-Chinese Chamber of Commerce (Capechi) estimated today that Chinese investments in Peru might reach $1 billion during the next year due to the launch of new companies and the promotion of investment opportunities during international events.

The president of Capechi, Eduardo McBride indicated that Chinese investments in Peru have suffered a kind of economic stagnation in the amount of 300 million dollars; and since the operation of Shougang mining company in the 90’s, there have not been important Chinese investments registered.

However, McBride explained this tendency would begin to change with the investments of Aluminum Corporation of China (Chinalco, in Junin’s mining project Toromocho; and Consorcio Zijin, which manages the Río Blanco Copper company in Piura’s mining project.

Furthermore, the results to be achieved by the Peruvian delegation in the Second China-Latin America Business Summit, which will take place in China next October, and the meetings held to promote investments in Peru in the framework of APEC, which the Andean country is to host, will be added to change this trend.

News source: ANDINA

France could serve as a gateway for Peruvian food products to the European market, according to studies conducted by the U.S. Foreign Agricultural Service and the Foreign Trade Committee (X.com) of the Lima Chamber of Commerce (CCL).

Among the products that will benefit from improved market access are drinks, cold cuts, canned foods, fruits, vegetables and dietary products.

Also, food supplements, marine and dairy products, desserts, frozen products, catering service, poultry meat, wine, food intermediates and organic ingredients.

According to experts, the wide range of opportunities is based on France’s varied patterns of consumption.

"The high consumption capacity and the increased value-added food in France are also characteristics that increase the opportunities for Peruvian food products in this market," the U.S. report highlights.

The food distribution industry in France is quite diversified and sophisticated, and is composed of six types of establishments: hypermarkets, supermarkets, discount stores, convenience stores, food courts and traditional outlets.

Over the past year, these top five categories accounted for 75 percent of sales in the country.

News source: ANDINA

According to Australia's ambassador to Chile Crispin Conroy, Australia has not recognized Pisco as an exclusive product of Chile in the recently-signed free trade agreement between both countries, the Peruvian Foreign Ministry said today.

"Australian ambassador Crispin Conroy called me this morning to clarify that the information reported by some Chilean media has been a manipulation of the bilateral agreement with Chile," said Peruvian deputy foreign minister, Gonzalo Gutierrez.

Therefore, Gutierrez pointed out that in the coming hours the Australian government will issue a written statement clarifying this issue.

Gutierrez explained that Chilean liquor company, Capel, wanted to surprise the public by stating that the trade agreement signed between Australia and Chile recognizes only the "pisco" denomination as a beverage of Chilean origin.

Capel general manager, Roberto Salinas, said yesterday that the signing of the free trade agreement authorizes only the sale of Pisco produced in Chile.

“According to the Australian ambassador's explanation, this information is absolutely false, since the Chile-Australia bilateral agreement establishes that Chileans are able to sell in Australia a product that is specifically called "Chilean pisco", said Gutierrez.

News source: ANDINA

Living in Peru
Israel J. Ruiz

The last time doña Elvira bought chicken at the corner store was five months ago, says Renzo Guerrero, a reporter for El Comercio daily.

According to Guerrero, the housewife from Trujillo has not set foot inside another corner store since she decided to go to a supermarket one day.

Doña Elvira now prefers to shop for groceries at one of the two supermarket chains that recently opened in Trujillo, one of Peru's most populous cities.

Statistics show that 34 percent of Trujillo's homemakers now prefer to shop at Tottus and Plaza Vea, which opened in the city just one year ago, instead of neighborhood stores.

According to a market study done by the University of Antenor Orrego, among the reasons listed for housewives' supermarket preference were that they had better service, were cleaner, more organized and always had products on sale.

Significant progress has been made by these supermarket chains, said Javier Bustamante, a market and opinion specialist.

He explained that in a short amount of time these supermarket chains had placed themselves among shopper's top preferences.

"This was a revelation to us," said Bustamante. "Three years ago we did a study and found that only 5 percent of homemakers went to them (supermarkets)."

Living in Peru
Israel J. Ruiz

Alpha, an industrial Mexican consortium announced on Friday it had come to an agreement to purchase Braedt, one of Peru's largest meat products companies.

According to representatives from Alpha, Braedt has the potential to make $30 million per year.

Braedt, which employs approximately 450 people, has been in Peru for the past 50 years and has a plant in Lima.

The president of Alpha, Dionisio Garza Medina explained that the acquisition was part of his company's plan to strategically expand in the region.

He affirmed that the offer was an even more attractive one due to Peru's recent economic boom and the Andean country's stability.

The traditional Peruvian company is now in Mexican hands, reported El Comercio daily.

Peru’s minister of Housing, Construction and Sanitation, Enrique Cornejo, announced Friday that some days ago he received a proposal from Chinese businessmen working out of Beijing to execute a real-estate project in the Limean district of San Isidro with an investment of 800 million dollars.

He detailed the initiative involves the acquisition of lands where the buildings of the ministries of the Interior, Production, and Foreign Trade and Tourism (Mincetur) are currently located.

It is worth noting that the Ministry of Housing has planned to carry out a public auction to sell the building of the Interior Ministry among private investors for the execution of a real-estate project, which could be done in two months.

Cornejo explained the proposal of Chinese investors will be referred to the Promotion Agency of Private Investment (ProInversión) to evaluate the possibility for declaring it of national interest and authorize its execution without being subject to a tender offer.

“This is a very interesting proposal that has a series of components such as emblematic buildings, including a hotel and offices, which would require an investment of about 800 million dollars”, he stated.

News source: ANDINA