The Department of Agriculture (USDA) estimates that cotton production in Peru would increase by 50% to reach 38,000 metric tons this year. The USDA also forecast that cotton will disappear soon in Tangüis land of Peru.
This is a significant increase after keeping a low production of 25,000 metric tons, whereas until 2006, cotton production in Peru was important and bordering the 90,000 metric tons, noted that entity.
The projected increase for this year is mainly due to a delay in the start of the rainy season, which has encouraged farmers to replace projected rice and corn Cotton explains.
Despite the increase in local production, the USDA noted that this year is expected to amount Peru 70,000 metric tons of cotton, all from the United States, taking advantage of zero tariffs by NAFTA.
That import volume will be absorbed mostly by the growing demand of the local textile industry as a result of strong demand for international and domestic markets.
However, there is no policy of the Peruvian Government to support local production of cotton in Peru, whose producers have weaknesses, such as small farms (90% of properties are less than 5 hectares), which prevents economies of scale.
It also warns that Tangüis variety, which accounts for 80% of cotton crops in Peru, is doomed to disappear in the near future, since its cultivation period is very long (9 months), making it easy prey pest. In addition, spending on pesticides represents 50% of total production cost.
Source: Diario Gestión
