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  Peru

Reference Date: 10-December-2018

FOOD SECURITY SNAPSHOT

  1. Cereal production for 2018 anticipated at above-average level

  2. Cereal import requirements in 2018 anticipated at record level driven by high demand for feed

  3. In November, prices of rice were well-below levels of year earlier

Cereal production for 2018 anticipated at above-average level

Harvesting of cereal crops occurs on a continuous basis following different calendars across the country. Official estimates point to a year-on-year increase in production of rice and maize crops during the period January-September 2018 of about 20 and 6 percent, respectively. The increase in rice output is mainly due to the enlarged area sown in the first half of 2018 and favourable weather conditions in the main rice-producing regions. Currently, rice crops are developing under favourable weather conditions in northern regions, while maize crops, mostly irrigated, are in vegetative stage in southwestern regions.

FAO estimates the aggregate 2018 cereal production at 5.4 million tonnes, 7 percent higher than the five-year average, with rice paddy production anticipated at an about well above-average level of 3.4 million tonnes. Maize production is estimated at 1.5 million tonnes, slightly higher than a year earlier, but similar to the previous five-year average.

Cereal import requirements in 2018 anticipated at record level driven by high demand for feed

Cereal import requirements in the 2018 marketing year (January/December) are anticipated at a record level of about 6.45 million tonnes, mainly reflecting the high demand of maize for feed by the poultry sector.

In November, prices of rice were well below levels of year earlier

In November, prices of wheat flour were relatively stable if compared to their levels of a year earlier, mainly reflecting adequate import flows. Prices of yellow maize slightly increased and were 5 percent higher than their levels a year earlier, sustained by strong demand from the poultry industry. Prices of rice remained mostly stable in November and were lower than a year earlier, as higher deliveries into the markets from the main producing regions more than compensated for a year-on-year decline in imports.

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