USGC Corn Promotion In Peru Yields Results

The U.S. Grains Council (USGC) invested $35,000 of Market Access Program (MAP) funds into customer servicing and marketing programs for U.S. corn in Peru during 2015. As a result of these efforts, buyers in Peru increased their purchases of U.S corn by $53 million, for a return on investment (ROI) of $1,500 for every $1 of MAP funds invested.

Peru imports approximately 2.6 million tons of corn annually for use in its livestock industry. Traditionally Peru has imported the majority of its corn from Argentina, however starting in 2014, U.S. market share began to rebound from a low of 10 percent in 2013 to 78 percent in 2015. This change in the market was driven by the favorable import duties afforded U.S. corn under the U.S. – Peru Free Trade Agreement (FTA). Taking advantage of this favorable environment, the Council undertook a strong corn promotion program in Peru that included one-on-one meetings; seminars to roll-out the Council’s annual corn quality reports; and workshops. The end-users and buyers left these event with a greater understanding of contract specifications and purchasing options as well as the advantages of buying grain from the United States.

In 2015, Peru finished the as the fifth largest purchaser of U.S. corn, taking 2.1 million metric tons (82.6 million bushels), a record for Peru. This is 15 million bushels ($53 million) more imports of U.S. corn over the previous year. Peru is an example of how U.S. government trade agreements and USDA Market Access Program (MAP) benefit the U.S. agricultural producers and exporters.