Meal, Soybean

Outlook:

Meal, Soybean

2013/2014

2014/2015

2015/2016

Market Begin Year

Jan 2013

Jan 2014

Jan 2015

Peru

USDA Official

New Post

USDA Official

New Post

USDA Official

New Post

Crush

2

1

2

0

0

1

(1000 MT)

Extr. Rate, 999.9999

1.0000

1.0000

1.0000

0.0000

0.0000

1.0000

(PERCENT)

Beginning Stocks

18

9

20

8

0

5

(1000 MT)

Production

2

1

2

1

0

1

(1000 MT)

MY Imports

1,150

1,023

1,240

1,099

0

1,130

(1000 MT)

MY Imp. from U.S.

100

37

100

12

0

50

(1000 MT)

MY Imp. from EU

0

0

0

0

0

0

(1000 MT)

Total Supply

1,170

1,033

1,262

1,108

0

1,136

(1000 MT)

MY Exports

0

0

0

0

0

0

(1000 MT)

MY Exp. to EU

0

0

0

0

0

0

(1000 MT)

Industrial Dom. Cons.

0

0

0

0

0

0

(1000 MT)

Food Use Dom. Cons.

0

0

0

0

0

0

(1000 MT)

Feed Waste Dom. Cons.

1,150

1,025

1,240

1,103

0

1,125

(1000 MT)

Total Dom. Cons.

1,150

1,025

1,240

1,103

0

1,125

(1000 MT)

Ending Stocks

20

8

22

5

0

11

(1000 MT)

Total Distribution

1,170

1,033

1,262

1,108

0

1,136

(1000 MT)

CY Imports

1,150

1,100

1,240

1,099

0

1,130

(1000 MT)

CY Imp. from U.S.

100

100

100

0

0

50

(1000 MT)

CY Exports

0

0

0

0

0

0

(1000 MT)

CY Exp. to U.S.

0

0

0

0

0

0

(1000 MT)

SME

1,150

1,025

1,240

1,103

0

1,125

(1000 MT)

Soybean meal imports in MY 2015/15 are estimated at 1.13 MMT, up 2.8 percent compared to the previous year. Peru does not grow soybeans in commercially significant quantities, nor does it currently produce soybean meal. Peru's limited soybean crushing capabilities are dedicated solely to producing full fat soybean meal for feed purposes.

Soybean meal import demand is fueled by Peru's dynamic poultry industry. Peruvians currently consume some 53 million birds per month. Poultry meat constitutes one of Peru's most affordable sources of animal protein, and an estimated 1.4 MMT was consumed in CY 2014. Poultry consumption in Peru is estimated at 46 kilograms per capita, with consumption as high as 70 kilograms per capita in Lima. Soybean meal constitutes about 12 percent of total broiler rations in Peru's thousand plus poultry farms.

Import Trade Matrix

(Metric Tons)

Commodity

Meal, Soy

Time Period

CY 2014

Imports from:

United States

12,068

Others

Bolivia

751,160

Argentina

209,528

Paraguay

126,089

Total for Others

1,086,777

Others not Listed

224

Grand Total

1,099,069

With a 68 percent import market share, low-cost producer Bolivia remains Peru's main supplier of soybean meal, despite higher shipping costs than those offered by U.S. exporters. Soybean meal from all origins enters Peru duty-free.

Biotechnology:

Peru continues to encourage anti-biotechnology (biotech) policies. Peru published a regulation in 2012 establishing a 10-year moratorium on planting biotech crops and animals for reproductive purposes. This law eliminated the biosafety protocol, which had been drafted and cleared by the Ministries of Agriculture and Environment.

Until this measure's passage, the biosafety protocol established the legal framework for the research, production, and trade of genetically engineered (GE) crops. While the moratorium excludes commodities such corn and soybean meal, these products still must undergo a costly and unnecessary risk assessment. Although the moratorium is in place, the Ministry of Environment has not implemented the parameters of this law, including monitoring, enforcement and any penalties assessed on the local industry.

Peru's Consumer Code includes mandatory labeling requirements for GE products. The initial draft of the regulation law establishes mandatory labeling with no minimum threshold level, forcing food processors to determine the amount of GE content by input. If this regulation were approved, it would be extremely difficult to enforce. There are at least 30,000 different products currently on Peruvian supermarket shelves contain GE content. This measure will impose an excessive burden on industry.

Oil, Soybean

Outlook:

Soybean oil imports in MY 2015/16 to reach 380,000 MT, up 7 percent compared to our MY 2014/15. With a 71 percent import market share in 2014, Argentina remains Peru's main supplier of soybean oil due to price. Imported soybean oil is refined and bottled locally for retail sale.

Soybean oil consumption will continue increasing in tandem with economic expansion. Peru's gross domestic product (GDP) is expected to grow at 4.2 percent in 2015, up from 2014's 2.8 percent growth rate.

Import Trade Matrix

(Metric Tons)

Commodity

Oil, Soy

Time Period

CY 2014

Imports from:

United States

73,563

Others

Argentina

252,405

Bolivia

14,966

Paraguay

4,508

Total for Others

271,879

Others not Listed

9,227

Grand Total

354,669