Lima braced for Eurofruit congress in November

The Southern Hemisphere's leading fresh produce conference event, Eurofruit Congress Southern Hemisphere takes place in Lima, Peru, on 9-11 November and promises to be another premier event following on from last year's edition, which saw over 220 delegates from 21 countries convene in Uruguay.

This year's conference programme will feature a supplier spotlight on host nation Peru, with speakers set to discuss what the country's rapidly developing fresh produce industry has to offer the Northern Hemisphere market, fruitnet.com reported.

Leading the discussion will be Fernando Cillóniz from Inform@cción, the Lima-based research and consultancy agency, which provides information on Peru's agricultural sector.

A delegation of senior-level, international speakers will also offer tips on how to stay ahead in the highly competitive retail sourcing and marketing arena, plus an insight into what the major markets are demanding from growers and exporters when it comes to sustainability, logistics and packaging.

Other hot topics up for discussion will include a look at the opportunities for new growth in certain product categories and market sectors within traditional export destinations like North America and Europe, as well as the potential to supply alternative markets in Asia, Eastern Europe and Russia.

Staying ahead of the game with the most up-to-date and comprehensive knowledge is vital in today's competitive global market. Long-term business success also comes down to the ability to make the right kind of relationships with the right kind of people.

Eurofruit Congress Southern Hemisphere offers ample networking opportunities to ensure participants make lasting contacts with the best fresh produce business professionals in the region and beyond.

The 2010 Eurofruit Congress Southern Hemisphere was held in Uruguay’s renowned sea resort Punta del Este last December. That was the first time the annual conference and exhibition event for the region’s fresh produce industry came to Uruguay. (Andina)

IDB says Peru’s economy “robust” in face of global crisis

Peru’s economy is “robust” in the face of any international crisis like that affecting the United States and Europe, the Inter-American Development Bank (IDB) has said.

IDB representative in Peru, Fidel Jaramillo, stated that Latin America is well prepared to handle the effects of a global recession.

Jaramillo noted that Latin America has done an excellent job with the macroeconomic and financial management, thus accumulating a large amount of forex reserves.

"This is clear in the case of Peru, where all its indicators show great strength," he told Andina.

However, Jaramillo pointed out that "according to some IDB studies, one of the possible scenarios includes a slowdown in developed countries and a decrease in economic growth rates in other nations."

In this regard, he noted that "the challenge of the Peruvian government will be to strengthen the counter-cyclical policies to mitigate the financial crisis' impact on growth, but in the case of Peru, it will remain robust." (Andina)

Andean Community to strengthen integration during Lima meeting

Representatives of the Andean Community (CAN) will meet today in Lima to evaluate a “re-engineering” of the Andean group which allows to strengthen the sub-regional integration process.

Colombian Foreign Minister Maria Angela Holguin is to chair the meeting which will address social issues such as the participation of Afro-descendant communities, Andean cooperation and specific environmental and agricultural projects.

Moreover, the four-nation bloc will discuss Spain’s request to participate as an observer of the Andean Community and the implementation of the Andean Council of Culture Ministers.

The foreign ministers of Bolivia, Ecuador, Colombia and Peru will also take part in the 34th Extraordinary Meeting of the Andean Council to be held at the CAN headquarters in Lima, where they will discuss ways to restructure the sub-regional bloc and prepare a new strategic agenda.

The ministers of foreign trade will also attend the meeting to analyze proposals related to statistics, public health, customs and energy.

The Andean Community is a trade bloc of four countries, Bolivia, Colombia, Ecuador and Peru. Chile Argentina, Brazil, Paraguay and Uruguay are associated while Panama and Mexico are Observers. (Andina)

Peruvian Sol Bonds Post Longest Winning Streak Since 2006 on Inflation

Peruvian bonds posted their longest winning streak since 2006 as traders bet a slowdown in the global economy will spread to the Andean nation and help contain inflation.

The yield on Peru’s benchmark 7.84 percent sol-denominated bond due August 2020 declined four basis points, or 0.04 percentage point, to 5.90 percent at 2:57 p.m. in New York, according to prices compiled by Bloomberg. The bond’s price rose 0.25 centimo to 113.32 centimos per sol.

Bond yields have fallen for nine straight days, the longest streak since the period ending Dec. 18, 2006, when yields also fell for nine days. Yields shed 12 basis points this week.

Investors are betting Peruvian inflation will ease as slower growth in Europe and the U.S. dim growth prospects for the South American country and cause international food and fuel prices to fall, said Siobhan Morden, head of Latin American strategy at RBS Securities Inc. in Stamford, Connecticut.

“Inflation expectations have collapsed,” Morden said. “It’s not a liquidity crisis like we had in 2008, but more the traditional global slowdown. Emerging markets aren’t heading into crisis, but there are certainly slower growth prospects.”

The deceleration in the world economy and domestic activity in Peru led the country’s central bank Aug. 11 to keep interest rates unchanged for a third month.

Inflation will ease after hitting a three-year high in July, the central bank’s research director Adrian Armas said Aug. 12.

Economic Outlook

Peru’s export revenue is likely to fall next year as global demand for its metals declines, Finance Minister Miguel Castilla said Aug. 8. The $153 billion economy will expand 6 percent to 6.5 percent this year, after growing 7.7 percent in the first half, he said.

“If metal prices were to plummet, Peru’s economy could contract in 2012, due to its heavy reliance on mining investments,” Nomura Securities Inc. said today in an e-mailed report. “Under this scenario, we would expect the central bank to cut rates aggressively and for the government to increase spending in order to jump-start the economy.”

Peru is the world’s biggest silver producer, third largest in copper and zinc, and sixth in gold.

The sol strengthened 0.3 percent to 2.7340 per U.S. dollar, from 2.7414 yesterday. That’s the currency’s strongest level since April 2008.

The extra yield investors demand to own Peruvian government bonds instead of U.S. Treasuries fell six basis points to 210, according to JPMorgan Chase & Co.

John Quigley - Bloomberg

To contact the reporter on this story: John Quigley in Lima at jquigley8@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

World Bank electricity use project to remote areas expand to seven Peruvian departments

The World Bank approved the expansion of the Productive Use of Electricity (UPE) project to remote areas in seven departments of Peru, following the success of the Cusco, Junin and Lima pilots, the Ministry of Energy and Mines reported.

The General Directorate of Rural Electrification (DGER) of MEM explained that Piura and Tumbes departments are benefited in the electrified rural area of the Empresa Regional de Servicio Público de Electricidad Electro Noroeste (Enosa).

Meanwhile, Lambayeque and San Ignacio, Jaen, Cutervo, Santa Cruz, Chota provinces, as well as and Hualgayoc in Cajamarca department are benefited in the electrified area of Electricidad del Norte (ENSA) electricity distribution company.

Also, other provinces of Cajamarca, such as Contumaza, Celendin, San Marcos and Cajabamba, are in the electrified rural area of Electro Norte Medio (Hidrandina).

In addition, the expansion project includes Ancash department in the electrified rural area of Electro Norte Medio and Ucayali in the one of Electro Ucayali.

He said that UPE aims is to achieve a more intensive use of electricity in electrified rural communities to help increase productivity and provide other benefits to businesses, improving the quality of life in rural communities by having better incomes. (Andina)

Peru among three most attractive countries for investments

Peru ranks among the three most attractive countries for investors who regard Latin America as a safe option amid a global crisis that is shaking markets in the United States and Europe, stated Santiago-based brokerage firm Celfin Capital.

“Since the current crisis is different from the one in 2008 as it affects countries more than companies, emerging countries are now seen as attractive places to make investments despite all the risks,” said Hedmon Rios, an economist at Celfin Capital.

Rios noted that observing recent evaluations of sovereign credit ratings, some Latin American countries could easily be mistaken with developed countries.

“Peru, Chile and Colombia are the countries that attract more capital flows in Latin America as their macroeconomic indexes guarantee a proper economic management,” he said.

Rios went on to say that these three countries have reacted with such a flexibility that they have proven to be strong economies.

Among these countries, Peru could be the most attractive one for investments because of its expected high growth rates and strong investments in infrastructure to be carried out in the next months. (Andina)

Today in Peru

Over 1,500 businessmen to meet in Lima for APEC SME summit

In order to enter world markets, more than 1,500 entrepreneurs will meet in Lima on August 25 for the Asia Pacific Economic Cooperation (APEC) Small and Medium Enterprises (SME) Summit 2011.

The summit is organized by the country’s foreign trade association (ComexPeru) as Peruvian Secretariat of the APEC Business Advisory Council.

“In this event, we’ll give the SMEs tools to reach markets around the world and face globalization through different information technologies such as websites, social networks, e-commerce platforms, among others,” president of ComexPeru Alfonso Garcia said.

On this regard, general manager of ComexPeru Patricia Teullet mentioned that within the framework of the ABAC meeting in Lima, to take place from August 22-24, the SME Summit will seize the opportunity to create a space for large companies to share their successful experiences with the SMEs.

According to the latest National Economic Census (2008), 94.5 percent of the total companies in Peru are micro enterprises, 4.8 percent are small enterprises and only 0.6 percent are medium and large enterprises.

Despite these numbers, the SMEs account for 20 percent of the country’s Gross Domestic Product. (Andina)

Today in Peru

Duran Ventures reports latest positive results from Aguila drill program

Duran Ventures Inc. provided additional results from the ongoing resource drilling program at the company's 100% owned Aguila Porphyry Copper and Molybdenum Project in Peru.

All drill holes are located on The Aguila Project, located in the Department of Ancash in north central Peru, some 400 kilometres northwest of Lima.

It said more than 8,500 metres had been drilled as of July 29 with 17 holes completed and four in progress.

A fourth drill rig, which was previously working on the company's Corongo Project, was mobilized to Aguila on July 15 in order to accelerate the drilling program.

"Company geologists believe that the Aguila Project is comparable in terms of style and grade of mineralization and geological setting to the nearby Magistral deposit but that Aguila may offer greater tonnage potential," it said. (Andina)

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Xstrata sees no threat to investments under Peru's new government

Anglo-Swiss mining group Xstrata sees no threat to the company's investments in Peru following the recent change in government, according to CEO Mick Davis.

"President Humala, who took office last week, has underlined his government's intention to maintain Peru's economic growth and stability by re-nominating the current governor of the central bank of Peru, Julio Velarde, for another term and appointing experienced ministers to the cabinet including the Minister of Mines and Energy Carlos Herrera," Davis said.

"Other positive signals from the new administration include a commitment to respect fiscal stability agreements, currently in place for all of Xstrata's projects," he added.

In Peru, Xstrata currently fully owns and operates the Tintaya copper mine and has a 33.75% stake in the Antamina copper-zinc operation. The company is also developing the Antapaccay and Las Bambas projects.

"From initial interactions with the incoming government, we are confident that President Humala is cognizant of the mining sector's significant contribution to Peru's economic growth and the vital role of foreign investment in unlocking the nation's mineral wealth," Xstrata CEO noted.

Mining company contributions to the Peruvian government are already amongst the highest of resource-rich countries, stated Davis.

"The new government has confirmed its intention of negotiating additional fiscal contributions from the mining sector with companies. It has also recognized the importance of preserving the competitiveness of Peru's fast-growing and valuable mining industry," Davis said.

"Early indications of a willingness to consult with the mining industry to try and find a sensible way forward are encouraging," the executive went on to add. (Andina)

Today in Peru

Trade between Peru, Brazil doubled in five years to nearly US$3bln

Trade of goods and services between Peru and Brazil has doubled in the last five years since the signing of the Economic Complementation Agreement (ECA) Nº 58 within the framework of the Southern Common Market (Mercosur), going from US$1.4 billion in 2005 to nearly US$3 billion in 2010. 

Brazilian imports are mainly inputs such as copper, zinc and silver. However, these imports also include textiles, garments and agro-industrial products, BBVA Banco Continental reported Tuesday.

In turn, Peruvian purchases to the neighbouring country include crude petroleum, manufactured products of iron and steel and capital goods such as trucks, buses, trailers, and construction and mining equipment, noted the report.

The document further indicated that these figures show that trade relation between both countries is strengthening and that there is still room to continue growing stronger.

Peru exported around US$900 million to Brazil last year, while shipments doubled in the last decade.

In the first five months of 2011, Peruvian exports to Brazil soared 80 percent, reaching US$540 million in May.

Brazil has more than 150 million of consumers, becoming a market full of opportunities for Peru.(Andina)

Today in Peru

Peru Inflation Doubles Forecast as July Prices Jump Most in Three Years

Peruvian consumer prices rose at the fastest pace in more than three years in July, double what analysts were expecting, fueling speculation the central bank is getting closer to raising borrowing costs.

Inflation accelerated 0.79 percent last month, according to a statement published today in the Official Gazette. Economists expected a 0.31 percent increase, according to the median estimate of 10 analysts surveyed by Bloomberg.

Peru’s economy is expanding faster than expected even after companies scaled back spending ahead of the June 5 presidential election. President Ollanta Humala announced an investor- friendly cabinet, which will probably allow economic activity to remain “strong” in the second half of this year, sparking inflation pressures, said Carola Sandy, an economist at Credit Suisse AG.

“The slowdown doesn’t seem to be as big as people thought,” Sandy said in a phone interview from New York before the number was released. “That will translate into faster inflation and require the central bank to put the brakes on in the third quarter.”

Policy makers led by bank President Julio Velarde left Peru’s benchmark lending rate unchanged for a second straight month July 7, citing slower inflation, a deceleration in some parts of the economy and concern about global growth.

Gross domestic product rose 7.1 percent in May from the year before, according to the statistics agency. While the figure was the lowest in 15 months, it beat the 6.7 percent median estimate from 10 analysts surveyed by Bloomberg.

Humala retained Velarde as central bank president, making him the linchpin of a cabinet that include five businessmen and seven officials who served previous governments.

The government’s consumer price index is based on a survey of establishments conducted by the agency in the Lima Metropolitan area.

Bloomberg

To contact the reporter on this story: John Quigley in Lima at jquigley8@bloomberg.net

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net

New Peruvian Cabinet takes office today

Peru’s new Cabinet led by Prime Minister Salomon Lerner Ghitis will officially take over their offices on Monday.

The new Cabinet takes office with Rafael Roncagliolo as foreign minister, Daniel Mora as defense minister, Luis Miguel Castilla as finance minister, Oscar Valdes as interior minister, and Francisco Eguiguren as justice minister.

Also, Patricia Salas as educaction minister, Alberto Tejada as health minister, Miguel Caillaux as agriculture minister, Rudecindo Vega as labor minister, Jose Luis Silva as foreign trade and tourism minister, Carlos Herrera as energy and mines minister.

The list is completed by Carlos Paredes as transport and communications minister, Kurt Burneo as production minister, Rene Cornejo as housing minister, Aida Garcia as women and social development minister, Ricardo Giesecke as environment minister, and Susana Baca as culture minister. (Andina)

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