Chancay: Driving Peruvian Agriculture towards Asia
By Jacques Diderot Julien, Researcher at the Universidad del Pacífico Research Center.
The Port of Chancay, located 80 kilometers north of Lima, plays a crucial role in the development of Peru’s agricultural sector by connecting logistical corridors and agricultural zones. It promises to facilitate international trade, especially with Asia, in a context of increasing demand for Peruvian agricultural products in markets like China, Japan, and South Korea.
This port provides agricultural entrepreneurs with a unique opportunity to reduce logistical costs, including transportation and storage. It is particularly significant for farmers in Huaral and neighboring regions, as data from the Agricultural Producers Registry (PPA) of MIDAGRI shows that currently, only 2.32% of the agricultural production from the province of Huaral—the closest to the port—is destined for international markets.
With the commencement of Chancay's operations, a significant increase in exports is expected, driven by Asian demand for products such as avocados and mandarins, which account for 24% and 14% of Huaral's agricultural area, respectively. Additionally, other key regional products, like grapes, asparagus, lemons, and corn, hold growing export potential thanks to better access to international markets.
The Lima and Ica regions together also significantly contribute to national agricultural production, especially with increasing demand for artichokes, pomegranates, and blueberries. These supply chains could greatly benefit from the connectivity offered by the Port of Chancay, enhancing local farmers' competitiveness by reducing transportation costs to international markets, particularly in Asia and North America.
Peru should also capitalize on the surge in agricultural entrepreneurship. Indeed, data from PromPerú indicates that the number of agricultural enterprises exporting to Asia grew from 2,389 in 2019 to 2,743 in 2023—a 15% increase during a period that included the pandemic's impact.
This growth reflects the sector’s consistent strengthening, economic recovery, and rising expectations for increased agricultural exports. Moreover, it fosters formality, as it is a requirement for entering international markets.
The Port of Chancay, with its proximity to Lima and connection to logistical corridors, encourages the creation of agricultural and agro-industrial businesses, enabling entrepreneurs to supply both domestic and international markets. This closeness generates additional demand for agriculture-related services, such as the provision of inputs, transportation, and sustainable packaging.
Furthermore, direct connections with international markets motivate farmers to expand operations, adopt advanced technologies, and improve practices to meet the quality and sustainability standards demanded in Asia. However, these requirements for product presentation and processing present challenges for producers, who must adapt to the specific demands of Asian consumers.
To maximize the benefits of the Port of Chancay, it is essential to develop complementary infrastructure, improve transportation routes, enhance cold storage facilities, and optimize last-mile logistics. The mega-port will not only benefit the agricultural sector but also boost job creation, increase commercial activity, and contribute to regional economic growth. Peruvian authorities have correctly highlighted this port's potential to position Peru as a key supplier of agricultural products in Asia, a region with significant economic dynamism.
In this context, it is crucial to implement improvements in logistics, technical training, and assistance for meeting international quality standards. Investment in advanced technologies will allow farmers to increase productivity and competitiveness. Likewise, access to specialized training will facilitate the adoption of sustainable practices and the achievement of certifications highly valued in Asian markets.
In conclusion, the Port of Chancay represents a turning point for the development of Peru’s agricultural sector and its commercial integration with Asia. It enables more efficient access to Asian markets, allowing agricultural entrepreneurs to reduce costs and improve product competitiveness. To fully realize its potential, investments in infrastructure, training, and technical assistance are needed, making Chancay a regional development engine that will help position Peru as a global agricultural supplier