Peruvian Agriculture Minister Angel Manero recently announced a comprehensive plan to invest approximately $24 billion in irrigation projects nationwide. This ambitious initiative, primarily funded through public-private partnerships, aims to expand Peru’s agricultural land by about one million hectares (3,860 square miles), an area larger than the island of Puerto Rico.
The investment will be allocated over three to seven years and focus on 22 projects across Peru’s diverse regions, including the coast, highlands, and Amazon basin. These projects are expected to be awarded between 2025 and mid-2026.
The centrepiece of this initiative is the “Trasvase Maranon” project, valued at around $7 billion. This massive undertaking involves transporting water from the Maranon River to the Pacific coast, potentially irrigating over 300,000 hectares. The package includes the Chinecas project on the northern coast, estimated at $3.5 billion, and the Pampas Verdes project in the south, expected to cost about $4 billion.
Peru’s agricultural sector has experienced significant growth, with exports increasing by over 20% last year to reach approximately $12.8 billion, primarily driven by fruits like blueberries. The government is targeting $40 billion in agricultural exports by 2040, bolstered by planned beef and pork shipments to China. This strategic expansion is part of a broader vision to make agriculture the country’s leading economic sector by 2050, potentially surpassing mining, for which Peru is currently the world’s third-largest copper supplier.
In January 2025, Minister Manero outlined plans for large-scale irrigation projects along the coast, aiming to add 250,000 hectares of new farmland this year and an additional 500,000 hectares by June 2026. The Peruvian government is optimistic that these initiatives will boost agricultural productivity, create jobs, and enhance economic stability despite potential challenges such as environmental concerns and engineering complexities.
Economy Minister Jose Salardi highlighted that over 85% of these projects will be developed through public-private partnerships, a proven successful model in Peru’s past agricultural developments. The country’s central bank has noted that the impact of new U.S. tariffs on Peru’s fruit exports should be limited, as these exports complement seasonal supplies unavailable in North America. Overall, Peru’s agricultural ambitions are set to redefine its economic landscape and position it as a major player in global agriculture.
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