Support for IPEH from CAF and PROMPERÚ strengthens paprika exports

(Lima, February 15, 2007).- Paprika is now the second non-traditional agro-export product in Peru, after the value of exports grew from US$110,000 in 2005 to US$96 million at the end of 2007.

Of this total, NAFTA member countries (United States and Mexico) took 50% of paprika exports, representing US$55.4 million, while the European Union received 37%.

These figures were given by José Quiñones, PROMPERÚ export director, during closure of the project "Strengthening the Paprika Productive Chain to consolidate its positioning on international markets." The project was executed by the Paprika Committee of the Peruvian Institute of Asparagus and Vegetables (IPEH), which received non-reimbursable funds from the Andean Development Corporation.

Marcela Benavides, representative of the CAF Office of Public Policy and Competitiveness, explained that the project would strengthen the paprika productive chain through training in food safety and quality certification of the product at critical points of the chain to guarantee export products of uniform quality and strengthen positioning on international markets.

The CAF official said that the direct beneficiaries of this initiative were approximately 100 small- and medium-sized paprika producers in the areas of Lambayeque, La Libertad, Ancash, Lima, Ica and Arequipa and the six main paprika agro-export companies. She added that the benefits of this pilot program would apply to the entire sector through adequate dissemination of the technical documents.

For her part, Beatriz Tubino, IPEH manager, said that the project - executed in the last 21 months - covered raising awareness, training and certification in good agricultural practices in the field, and technical training for the intermediate actors in the chain. Over 100 small- and medium-sized producers have benefited from the training program offered by her organization with support from CAF and PROMPERÚ.

The project has already generated 108,000 jobs, and the aim is to replicate this example and strengthen efforts to expand destination markets.

Peruvian paprika is recognized worldwide for its excellent quality. It is mainly used as a natural pigment and condiment in the food and pharmaceutical industries. In the last three years, Peruvian paprika exports have achieved leading positions in the US and European markets, and the vegetable has become the second Peruvian agro-export product after asparagus. This export sector has also had a great impact by generating 15,000 direct and indirect jobs in the rural areas of coastal Peru.

As a result, paprika exports have grown rapidly in the last two years (100% a year) which has put strong pressure on the productive chain, and shown the need to work together for integrated development.

CAF supports this project as part of its strategy of promoting the competitiveness of non-traditional export sectors which have a high impact on employment and rural development, which is also considered a national priority, and includes components of innovation, knowledge assets, business social responsibility and building of social capital inside and outside the chain, especially linking public and private efforts.

About IPHE The Peruvian Asparagus and Vegetable Institute is formed by 50 of the largest agro-exporters of asparagus, paprika and artichokes, which have sales of US$5 to US$40 million a year.

About PROMPERÚ The Peruvian Commission for Promotion of Exports and Tourism (PROMPEX) unifies the former Export Promotion Commission (PROMPERÚ) and the Peruvian Promotion Commission (PROMPERÚ) which previously had responsibility for promoting tourism under D.S. Nº 003-2007-MINCETUR. The strengthened agency contributes to the economic and social development of Peru by promoting exports and tourism and assisting export companies, tourism operators, and the public interested in information on the country’s historical and cultural wealth.

About PAC The CAF Competitiveness Support Program (PAC) is a strategic project whose objective is to foster the productivity, competitiveness and sustainable development of the economies of Bolivia, Colombia, Ecuador, Peru and Venezuela. By providing non-reimbursable technical and financial assistance for projects, PAC supports the joint work of governments, business and members of the academic sector in an effort to create competitive advantages in the region which result in higher economic growth rates and a better quality of life for its inhabitants. Backed by CAF’s long experience, PAC identifies the factors that support and limit competitiveness in each country and, on this basis, selects and offers assistance to viable projects which have an impact on the population, in line with the characteristics and requirements of each place, actor and initiative.