CANNED ASPARAGUS

Scientific or Latin name: Asparagus officinalis Family: Liliaceae. TARIFF CLASSIFICATION:

SECTION IV INDUSTRIES FOOD PRODUCTS, BEVERAGES, SPIRITS AND VINEGAR; SNUFF AND SNUFF SUBSTITUTES, MADE CHAPTER: 20 Preparations of vegetables, fruits, nuts or other parts of plants

Heading:

2005600000 Peru is a mega diverse country with 84 recognized the 104 areas in the world. This and the diversity of ecological, gives the advantage of virtually any product and grow throughout the year. Peru has about 8 million hectares with a capacity of agricultural crops, 17.9 million hectares for pasture and 48.7 million hectares suitable for forestry. During 2004, exports reached U.S. $ 12 434.9 million, the highest level in the country's economic history. Also, exports rose an impressive 37.8% from the previous year.

Today Peru is the leading exporter of asparagus in the world, having been moved to major producers such as China and the United States and be recognized worldwide for the quality of their product.

GENERAL DESCRIPTION

Asparagus (Asparragus officialis) is a vegetable native to Asia, of which the tender seedling named "Turion is for consumption. Frequently used in special preparations "haute cuisine" and is a major source of compounds that contribute to proper blood circulation. It is one of the vegetables that have more developed, mainly in the fresh-chilled, coming to occupy

areas of planting close to 20 thousand 20 thousand hectares and yields kilos per hectare. Currently, this product represents 21.8% of exports, 1.7% of VBP and 1.5% annual employment.

USES AND PROPERTIES

From the time of Galen, physicians have sung the praises of asparagus for its laxative properties and regulators because they contain lots of fiber plant. They are great for improving kidney function and have a beneficial effect on the heart muscle.

From a nutritional point of view contribute water to the body, vitamins B1 and C, iron, calcium, essential amino acids and plant proteins of very good quality. Vegetables is one of the poorest in nutrients and are therefore recommended in slimming diets.

The studs have a thousand uses. Can be used in appetizers, sandwiches, pastries, fruit purees, cream soups, as a garnish for fish or meat, or just cold accompanied by a sauce. CANNED ASPARAGUS The "Asparagus, prepared or preserved, not frozen (processed) increased their share in overall exports increased from asparagus for 36 percent of the total between January and August 2010 to 44 percent over the same period this year (Adex) . In the first seven months of 2010 total asparagus exports totaled U.S. $ 187.8 million and recorded a growth of 52 percent compared to the same period last year. In the second game corresponds to the export of processed asparagus was exported 81 million 893 thousand U.S. dollars increased by 75 percent over the first seven months of 2010. The amount exported by this item accounted for 48.4 percent of the total, while in the same period last year accounted for 53 percent.

ADVANTAGES

The first advantage is its long shelf life preserved, allowing eat asparagus throughout the year, outside of campaign periods. The second advantage of the preserve is the safety of their preparation from the point of view of

consumer health. The third advantage of the preserve is its convenience: it is practical to store and ready for consumption.

CONSUMER NATIONAL MARKET

This vegetable, destined mainly for export, has a low level of national consumption, less than a kilogram per year. This is due to the absence of consumption patterns for this product. In 1994, after a rapid rise in the quantities consumed per capita consumption of asparagus has decreased considerably. Asparagus is traded on the market, mainly as fresh and canned. In general, the price of the former is higher than the second for the cost of air freight. Taking as a basis for analyzing the average FOB prices in Peru, international prices have gone through three stages: a) promotion that took place during '80, b) between the years 1990-93 witnessed a period of readjustment and price stabilization, and c) from '94 to '95 there was a recovery in international prices, which are then marked by sharp fluctuations depending on the destination markets. For example, 1999 was not favorable for the countries that supply of asparagus to the U.S.: the price suffered a precipitous drop.

Peru exports fresh and canned asparagus, the latter representing the highest percentage of foreign currency for the country. The value of exports in both sectors has been increasing over the past five years. In 2008, exports of canned asparagus totaled $ 82 million. Fresh asparagus has steadily increased its share in the total value of exports of this product reaching $ 108 million in the last year. In terms of export volumes, canned asparagus keeps the last 5 years in amounts up to 69 000 tonnes, unlike the fresh asparagus that exceed 30 million tons in 1999 to 74 million tons by the year 2008.

NATIONAL CROP CALENDAR

Peru produces asparagus all year round. We are the second largest producer of asparagus in the world, exceeded only by China, who focuses most of its production to supply domestic demand.

Another important advantage is that as much asparagus season occurs in August / September to December / January, which we favor, as much as asparagus is exported to Europe are processed and these are generated precisely the green asparagus. NATIONAL PERFORMANCE VS. GLOBAL INCOME Peru has a comparative advantage relative to the rest of the world, our returns exceed by more than 100% at our largest competitor like China, an advantage that has allowed us to be competitive globally, however, if not improved competitive advantages, that difference will be diminished in the medium term. PRODUCTION PROCESS

Below are all the steps involved in the export chain Asparagus: The process starts in the field including seed selection, planting, transplanting in the field, cultural work. Then comes the harvest selected. Once harvested, the product is conveyed in their respective trays maintaining the proper temperature until their arrival at the processing plant. At the time this reaches the processing plant is carried out and weighing the respective download immediately after are washed to remove dirt and impurities and cool the asparagus, then is disinfected with chlorine. Then the product passes to select the asparagus bands according to their size.

Canned asparagus: Pour off the husk covering the asparagus and then cut into pieces evenly according to the type of presentation, then it undergoes a process of blanching and cooling. Once this process is done in packaging that can be in glass bottles or cans which are filled with a solution prepared from water, salt, sugar and citric acid.

The necessary machinery for the production of asparagus are:

 Washing vegetables  Can for blanching vegetables  pasteurizing equipment  a big refrigerator plant

 cutting machines

PRODUCTION AREAS

The main production areas are located on the coast, in the departments of La Libertad, Ica, Lima and Ancash, due to the nature of the climate of this region. The production is a large scale, mainly for export, covering areas larger than 10 ha. on average.

Earlier in the north coast of white asparagus were planted especially in La Libertad, and green asparagus grown between Lima and the southern city of Arequipa, however, now planted in our entire coast white and green asparagus. There is currently nationally 21.961 has asparagus, La Libertad is a department that has the largest area installed, the extensions that have meaning in the last year Camposol areas (founded Gloria), Danper, UPAO and Razzeto.

COUNTRY OF DESTINATION: BRAZIL MARKET CHARACTERISTICS

The profile of the culture of asparagus changes resulting from technological additions and geographic reorientation. Thus, currently, the People's Republic of China is the world's largest producer of asparagus, while Peru is the world's largest exporter of fresh asparagus and the second largest exporter of processed asparagus. Peru is also the second largest producer of asparagus. The development of Peru's asparagus industry can be divided into three periods, according to factors other than expansion. The first time, around 1950, corresponds to the start of activities, when to promote the cultivation of small and medium properties, which was facilitated by the favorable climate. The second phase, between 1980 and 1990, is related to the development of drip irrigation techniques and strengthening the production of white asparagus for processing. Finally, we verify the recent expansion of cultivation of green asparagus, fresh, whose main export destination is the U.S. This phase is also characterized by the adoption of standardization and certification methods. This third period, which began in mid-1990, is characterized by gains in quality, productivity, integration of the channels of production, processing and export, as well as

advances in logistics. This favorable combination enabled the Peruvian asparagus was recognized internationally, as was mentioned, even by the national President Luiz Lula da Silva who, in recent pronouncement in Lima, emphasized the need to "find a way to get things produced quality here, like asparagus, are sold with a fair price in the consuming countries asparagus, as Europeans or Americans "asparagus are currently the twelfth point of the pattern Peruvian exports, totaling U.S. $ 391 million in 2007.

As regards the sector of asparagus to the latest estimates from the Organization of the United Nations Food and Agriculture Organization (FAO) show that there was no substantive change with reference to the five major global producers of asparagus, which, in 2006 were China (6.1 million tons), Peru (206 tons), USA (99 tons), Germany (82 thousand tons) and Mexico (60 thousand tons). It should be stressed, meanwhile, the loss of momentum in the Spanish production of asparagus (21.7% between 2000 and 2006) and the increase in the harvest of the Philippines (241.2%).

Also with regard to production profile should be emphasized that in Peruvian soil average productivity per hectare (11 325 kg) becomes more than twice the global average (5133 kg), according to FAO data for 2006 , reflecting the progress made in recent years. with a reference to the production, harvest should be noted that China is primarily geared toward domestic consumption, while the Peruvian harvest is almost entirely oriented towards foreign markets, especially U.S. and Europe. The trend of increasing global supply of the product, sometimes at a rate higher than the increase in demand is a factor of concern to market analysts. As is known, the imbalance between production and consumption in relation to agribusiness products can eventually affect the profitability of the sector as a supply exceeding demand, usually causes a reduction of consumer prices.

With regard to international trade, according to statistics from the UNCTAD / ITC / TradeMap worldwide sales of fresh or chilled asparagus (HS 0709.20) has been characterized by continuous increases in terms of value and quantity. Between 2002 and 2006, according to the aforementioned source, world exports rose from U.S. $ 456 million to U.S. $ 676 million, which represented an expansion of about 48.3%. Over the five years in the agenda, Peru held the position of world's leading exporter of the product, increasing its shipments by 122%. In quantitative terms, Peruvian exports recorded a growth of 76%, from 52 tons to 93 tons in the

period analyzed.

With reference to the international market asparagus, prepared or preserved, not frozen (HS 2005.60) ITC statistics show that they have evolved from U.S. $ 233 million to $ 319 million, signaling an expansion of 36.9% in five years from 2002 to 2006. The figure China is the world's leading exporter of the product, with shipments of $ 165 million order in 2006. That same year, Peru was second, registering exports of U.S. $ 105 million. Between 2005 and 2006, Peru's product sales recorded a growth of 23% in value terms.

China and Peru are responsible for about 85% of the global supply of asparagus prepared. It highlights the degree of market concentration, where more than of supply is controlled by two suppliers (China and Peru), characterizing a situation of apparent oligopoly, ie market profile that registers the presence of short sellers .

MAIN asparagus exporter CANNED From another perspective, world imports of fresh asparagus were led by the U.S. (U.S. $ 337 million), followed by Germany (U.S. $ 105 million), Japan (U.S. $ 72 million), Canada (U.S. $ 58 million) and UK (U.S. $ 45 million), according to statistics from the ITC. Brazil was a very discreet in this ranking, having imports totaled U.S. $ 444 thousand, according to the source above. It should be emphasized that the U.S., although listed as the third largest exporter of fresh asparagus is a net importer of the product and its purchases outside the plant outweigh exports. With reference to the 2006 data, Peruvian asparagus are responsible for 62% of U.S. foreign demand, as the second supplier is Mexico (36%). It also underlined the significant growth of the Canadian and British imports of fresh asparagus.

With reference to asparagus, prepared or preserved, world imports totaled $ 321 million in 2006. In the five years in the agenda, the observed variation was 19.5%, confirming again the dynamic of the international market asparagus. Spain held the position as a leading importer of asparagus prepared, detailing acquisitions in the order of $ 96 million in 2006, equivalent to about 30% of the world. Apart from Spain, France (U.S. $ 64 million), Germany (U.S. $ 62 million), USA (U.S. $ 29 million) and Belgium (U.S. $ 9 million), formed the role of the top five global importers canned asparagus.

It emphasized the significant growth of U.S. demand for that product, which recorded a growth of 880%, from $ 3 million to $ 29 million. In terms of economic blocs and, taken together, the European Union demanded about 80% of global imports of the plant. Brazil was the fourteenth position among the main importers of asparagus, with foreign purchases of around U.S. $ 1.9 million in 2006. In relative terms, domestic demand recorded a growth of 91% in the period analyzed, proving the attraction of the Brazilian market for exporters of asparagus prepared.

In short, the international market for fresh asparagus, chilled or prepared or preserved (SH 200 560 070 920 + SH) is having a substantial growth in terms of both value and quantities. In this context, total imports of both types of product totaled about U.S. $ 1 billion in 2006. The EU and the U.S. listed as major importers of this valuable plant, characterized by its subtle taste and to attract consumers with high purchasing power Another feature asparagus market refers to the recognized product sensitivity to positive changes in income of the population, they tend to boost consumption.

BRAZILIAN MARKET PROFILE

It is assumed that the cultivation of asparagus was introduced in Brazil in the 1930's, in the municipality of Pelotas, State of Rio Grande do Sul, using agricultural practices used in Europe. Subsequently, they were introduced, also American species, provided the initiative for the food industry located in Rio Grande do Sul, a few years ago, became the largest wind power company in Brazil. The main goal of cultivation was the production of raw materials (white crowns) for processing. In the 1970's, were established crops directly exploited by industries.

In 1979, he began growing product in the Northeast and North of the State of Minas Gerais. Since then, there were no significant changes in the overall picture of this plant growing in Brazil. Despite such efforts, economic factors, technological and climate were the cause that the cultivation of asparagus in Brazil do not present a great dynamism. Under these conditions, the Brazilian demand has been met by increasing external product acquisitions, both fresh and prepared. There are now about 800 hectares cultivated asparagus in Brazil. In the semi-arid Northeast, which is the main producer, there are 450 ha and in the State of Rio Grande do Sul,

about 250 ha.

Although no statistics are available, one can say that per capita consumption of the product in Brazil is much lower than developed countries, a U.S. example, where it reaches 500 grams of fresh asparagus per year, strong growth trend over the coming years.

Under these conditions, from the time series data on imports of this country, we can state that there are good opportunities in Brazil, for Peruvian exporters of fresh or canned asparagus. For both, it is worth remembering that the marketing campaigns can help promote Peruvian asparagus exports to Brazil.

The advertising campaigns can make use of appropriate channels such as magazines and television programs specializing in culinary, with emphasis on differential Peruvian product. Increases the level of income of the Brazilian consumer, as above, may contribute also to increase consumption. Regarding the geographical distribution of consumption, there are no data available. However, bearing in mind the implicit characteristics of the product, we can state that the major part of the Brazilian demand is concentrated in regions with higher levels of income, ie, the South and Southeast, plus the Federal District.

PROFILE OF IMPORTS

According to data from the Ministry of Development, Industry and Foreign Trade (MDIC), Brazil's imports of fresh asparagus from U.S. $ 368 thousand in 1998 to 616 in 2007, registering an average price of $ 2.05 per quilogramo. Although the values of the acquisitions can be considered as modest, they show a trend of steady growth since August 2000, when they totaled $ 185 thousand. In the last ten years between 1998 and 2007, the Brazilian procurement of fresh asparagus totaled $ 3.2 million. Between January and July 2008, imports value of $ 485,000, a figure 55.1% higher than the same period last year. With respect to asparagus, prepared or preserved, the Brazilian foreign demand is much more significant.

In the past ten years, imports totaled U.S. $ 14.9 million, equivalent to 12 thousand tons. Brazilian purchases of the product showed an erratic, alternating moments of expansion and contraction,

recording a peak in 2007, when they totaled $ 3.1 million. With regard to 2008, data available through July show that Brazilian purchases totaled $ 1.8 million, indicating an expansion of 18.2% compared with the values of the same period last year. The two tables presented below show data on Brazilian imports of fresh or chilled asparagus and asparagus, prepared or preserved, in the last ten years.

SUPPLIER COUNTRY As regards fresh or chilled asparagus, exporters matrix is presented as very diversified. Peru placed during the last three years, the position of leading supplier of Brazilian foreign demand for that product, taking responsibility for 91.3% of the total purchased by Brazil between 2005 and 2007. Against this background, Peruvian asparagus exporters should, inter-alia, make efforts to create a new demand for the product through advertising campaigns aimed at specific market niches. In the same vein, it would be appropriate to explore more intensely consumer sectors already conquered. It should be recalled, in this line, Chilean and Argentine exporters of wine got substantially expand its market share in Brazil, mainly through publicity campaigns and participation in fairs, exhibitions and promotional events.

With reference to asparagus prepared there was a change with respect to the array of providers. In the three years between 2005 and 2007, Brazilian imports totaled U.S. $ 5.8 million. In the three-years schedule, China held the position of main provider (61.8% - U.S. $ 3.6 million), followed by Peru (37.6% - U.S. $ 2.2 million). Other suppliers hold a marginal hand. The data make clear that there is a niche market that can be explored by Peruvian exporters of asparagus. In addition, exchange rate levels that prevailed until the date of study, tend to favor exporters of the product.

The Peruvian market is the main supplier of fresh asparagus from Brazil. Between 1998 and 2007, the Brazilian acquisitions originating from Peru totaled $ 2.4 million, equivalent to 1,129 tons. Since 2004, the Brazilian acquisitions show a gradual expansion, culminating in $ 595 thousand in the last year analyzed. Until July 2008, imports of fresh asparagus had reached $ 469,000 (201 tons), with growth of 50.8% over the same period last year. With reference to asparagus, prepared or preserved, the demand is much more expressive, despite having made an erratic pattern, alternating expansions and retractions. In the last ten

years totaled $ 5.4 million, equivalent to 2.2 tons. In 2007, imports from the Peruvian market came to a more significant $ 1.5 million (543 tons.), Resulting in a 164.9% growth compared to 2006. Until July 2008, Brazilian purchases totaled $ 898,000 (250 tons).

Considering the above, we can state that exists in Brazil, a market sector that can be explored by Peruvian exporters of fresh or chilled asparagus and asparagus, prepared or preserved. Regarding the latter, China is presented as the main competitor. Considering the magnitude of the Brazilian market (more than 180 million people and average income per capita of U.S. $ 6,800) correspond to remember, again, the need to "work" claim, in order to increase per capita consumption of the product and therefore , Peru's participation in the array of providers. Another point that should be taken into account is the tendency to real increases in the Brazilian wage, admittedly, are pushing the market pattern.

LOGISTICAL ISSUES Fresh asparagus, due to their fragility and naturalized ephemeral, requiring appropriate logistics in international trade, to arrive at the destination with perfect quality, in regard to both the presentation and in regard to dehydration of the product. This requires, therefore, adequate time for transport and distribution, the perishability of the plant cycle. In Brazil, these issues are more important still, when taking into account the geographic size of the country, which has a territory of more than 8 million square kilometers. As regards imports of fresh asparagus Brazilian native Peruvian market, all the acquisitions has been carried by air, landing in So Paulo with

It should be recalled, in this. Backdrop, the importance of CEAGESP - Society of General Bonded Warehouse and the State of So Paulo with respect to the logistics of agricultural and horticultural products, especially shorter cycle. CEAGESP was established in 1969 and became a national reference on food supply. The Company currently operates a network of storage and a Bonded, ensuring a majority of supply for much of the Southeast. CEAGESP provides support services to agriculture, the merchant, consumer and exporter, including information on labeling, packaging and sorting. Also with regard to logistics, include the importance of supermarkets and hypermarkets in the distribution of the product, both fresh and prepared. These channels are gaining increasing

importance in the food sector, in response, today, for most of the turnover of the food industry in Brazil. Specifically in relation to prepared or preserved asparagus worth mentioning also the importance of specialized emporia, which focus on consumer demand with higher incomes.

PREFERENCE LEVEL

The level of international market preference varies between green and white asparagus. In Brazil, the preference is for this latter type, having less interest for green asparagus. A sample of the most demanding consumer markets, the Brazilian shoots preferred size larger and sharper. With reference to fresh asparagus, the preference is for vegetable hydrated and in good presentation.

ADMINISTRATIVE MANAGEMENT According to Normative Instruction n 40, 30/6/2008, import operations fall into three categories, with respect to administrative treatment: a) products exempt from licensing; b) products subject to automatic licensing, c) goods subject to non-automatic licensing. As a rule, Brazilian imports are exempt from licensing, importers must simply make the registration of the Import Declaration (DI) in the Information System for Foreign Trade (Siscomex) in order to start customs clearance procedures at the Local Unit of the Federal Revenue Secretariat of Brazil - RFB.

In terms of the Ministerial Secex n 36, published in the Official Journal of the Union (DOU) of 26/11/2007, to verify the products subject to automatic licensing and not automatic, and other requirements in force in the realization of import table should be consulted Administrative Siscomex Treatment. The information is also available at the website of the MDIC for consultation. In the case of prepared or preserved asparagus product is subject to non-automatic licensing. The authorizing body is ANVISA (www.anvisa.gov.br) - National Health Surveillance Agency. ANVISA, through Resolution RDC / Anvisa No 350/05, as amended by Resolution RDC / Anvisa No 217/2006 lays down the following procedure (5.1.) On the import of this product: Food imports in a raw material, semi-finished product, bulk product or industrial product, according to the classification of goods available on the Web site of the ANVISA, registration shall be subject to Import License SISCOMEX, submitting to the control the health authority prior to customs clearance. You should also gather the required documents for submission to the health authority where the goods will be released.

With regard to fresh asparagus in relation to the Import License (LI) in accordance with Normative Instruction n 40/08 MAP, for purposes of disease control, plant health, animal health and quality of imported agricultural products will adopted the following procedure:

Procedure I: Products subject to the granting of the license import Siscomex after the conference documentation, inspection and health inspection, phytosanitary and quality. The audit and inspection will be held on the occasion of the arrival of the goods and before customs clearance. The LI will only be granted after compliance with the requirements established by MAPA - Ministry of Agriculture, Livestock and Supply (www.agricultura.gov.br) The product is subject to prior import DSV - Department of Plant MAP, which makes available a list of Authorized Import Plant Products. In the specific case, where a native of Peru, the acquisition of fresh asparagus is allowed provided that all formalities are completed.

PERUVIAN EXPORT COMPANIES Brazilian entrepreneurs interested in doing business with Peru will have access to information and any lists of Peruvian exporters in trade promotion portal "Commission for Export Promotion Prompex" ((http://www.prompex.gob.PE) . Because of its importance is given below a list of Peruvian asparagus exporters, obtained on the website of the Prompex Agroinversiones Chavin SA. Address - Lt 11 Mz. Urb D Pro Ninth Sector 2 da Stage S.M.P Lima 31 - Peru E-mail - mosalazar@agchavin.com Website - www.agchavin.com Import & Export INTIPA S.A.C flowers Address - Street Huancabamba N 124 Floor 2 Private Extension Benavides Surco - Lima 33 - Peru E-mail: intipaf@terra.com.pe Web Site - www.intipaflower.com LS Andina S.A; Address: Avenida Juan de Aliaga N 332

Magdalena - Lima 17 - Peru Email - aloebl@lsandean.com Website - www.lsandean.com

BRAZILIAN IMPORTERS With reference to the universe of companies importing the products in question, presented below, the list received from the MDIC containing the role of Brazilian companies importing fresh asparagus and asparagus prepared for 2007, in descending order of import value. The MDIC be making available a list containing the full address of the related firms. It has also a complete list of Brazilian imports by country of origin or by importing states.