TABLE OF CONTENTS 1. Peru 1.1. Peru Milk Market Introduction 1.1.1. Peru Cow Milk Market Production and Fluid Milk Consumption by Volume, 1.1.2. Peru Milk Cow Numbers and Milk Production per Cow, 1.2. Peru Dairy Products Market Introduction 1.2.1. Peru Dairy Products Market Production by Volume, 1.2.2. Peru Dairy Product Market Production by Volume, 1.2.2.1. Butter 1.2.2.2. Cheese 1.2.2.3. Skim Milk Powder 1.2.2.4. Condensed MilK 1.2.2.5. Others (Milk Drinks & Fermented Products, Cream & Whey Powder) 1.2.3. Peru Dairy Product Market Consumption by Volume, 1.2.3.1. Butter 1.2.3.2. Cheese 1.2.3.3. Skim Milk Powder 1.2.3.4. Whole Milk Powder 1.2.4. Peru Dairy Product Market Net Trade by Volume, 1.2.4.1. Butter 1.2.4.2. Cheese 1.2.4.3. Skim Milk Powder 1.2.4.4. Whole Milk Powder 1.3. Trends and Developments in Peru Milk and Dairy Products Market 1.4. Competitive Landscape 1.5. Peru Milk and Dairy Products Market Future Outlook 1.6. Peru Macro Economic Indicators: Current and Projections 1.6.1. Population, 2
1.6.2. GDP, 1.6.3. Inflation, 1.6.4. Unemployment Rate as a % of Labour Force, 1.6.5. Demographic Distribution of Population on the basis of Age, 29-21 2. Appendix 2.1. Market Definition 2.2. Abbreviations 2.3. Research Methodology Data Collection Methods Approach 2.4. Disclaimer 3
LIST OF FIGURES Figure 1: Peru Cow Milk Production and Fluid Milk Consumption along with Manufacturing Use by Volume in Thousand Tonnes, Figure 2: Peru Milk Cow Numbers in Thousand Head and Milk Production per Cow in Kilograms, Figure 3: Peru Total Dairy Products Market Production by Volume in Thousand Tonnes, Figure 4: Peru Butter Market Production by Volume in Thousand Tonnes, Figure 5: Peru Cheese Market Production by Volume in Thousand Tonnes, Figure 6: Peru Skim Milk Powder Market Production by Volume in Thousand Tonnes, 27-215 Figure 7: Peru Condensed Milk Market Production by Volume in Thousand Tonnes, 27-215 Figure 8: Peru Others (Milk Drinks & Fermented Products, Cream, Whole Milk Powder & Whey Powder) Market Production by Volume in Thousand Tonnes, Figure 9: Peru Butter Market Consumption by Volume in Thousand Tonnes, Figure 1: Peru Cheese Market Consumption by Volume in Thousand Tonnes, Figure 11: Peru Skim Milk Powder Market Consumption by Volume in Thousand Tonnes, Figure 12: Peru Whole Milk Powder Market Consumption by Volume in Thousand Tonnes, Figure 13: Peru Butter Market Net Trade by Volume in Thousand Tonnes, Figure 14: Peru Cheese Market Net Trade by Volume in Thousand Tonnes, Figure 15: Peru Skim Milk Powder Market Net Trade by Volume in Thousand Tonnes, 27-215 Figure 16: Peru Whole Milk Powder Market Net Trade by Volume in Thousand Tonnes, Figure 17: Peru Population Trend in Million, Figure 18: Peru Gross Domestic Product in USD Billion, Figure 19: Peru Inflation, Average Consumer Prices in Percentage, 4
Figure 2: Peru Unemployment Rate as a Percentage of Labour Force, 5
LIST OF TABLES Table 1: Peru Cow Milk Production and Fluid Milk Consumption along with Manufacturing Use by Volume in Thousand Tonnes, Table 2: Peru Milk Cow Numbers in Thousand Head and Milk Production per Cow in Kilograms, Table 3: Competitive Landscape of Major Dairy Products Companies (Gloria, Nestle and Alicorp) in Peru Table 4: Demographic Distribution of Population in Peru on the basis of Age and Gender, in Million, 29-21 6
PERU PERU MILK MARKET INTRODUCTION PERU COW MILK MARKET PRODUCTION AND FLUID MILK CONSUMPTION BY VOLUME, Cow milk production in Peru increased at high CAGR of 16.2% during the historical period from 27-29. The production increased in 28 by 13.9% as well as in 29 by 18.6%. In terms of volume, the production increased from 1,391 thousand tonnes in 27 to 1,878 thousand tonnes in 29. In the forecasted period, the production is expected to rise at a CAGR of 8.1%. The production will increase from 1,878 thousand tonnes in 29 to 2,99 thousand tonnes in 215. Figure: Peru Cow Milk Production and Fluid Milk Consumption along with Manufacturing Use by Volume in Thousand Tonnes, Milk Market Size ('s Tonnes) 3,5 3, 2,5 2, 1,5 1, 5 27 28 29 21 211 212 213 214 215 Cow Milk Production Fluid Milk Consumption Manufacturing Use PERU MILK COW NUMBERS AND MILK PRODUCTION PER COW, The milk cow numbers have increased at a high CAGR of 13.2% during the period from 27-29. The cow numbers increased from 691 thousand head in 27 to 785 thousand 7
head in 28. In the future, the milk cow numbers are expected to increase from 886 thousand head in 29 to ~ thousand head in 215 at an expected CAGR of ~%. Figure: Peru Milk Cow Numbers in Thousand Head and Milk Production per Cow in Kilograms, Milk Cow Number ('s Head) 1,4 1,2 1, 8 6 4 2 27 28 29 21 211 212 213 214 215 3, 2,5 2, 1,5 1, 5 Milk Production per Cow (Kg) Milk Cow Numbers (' Head) Milk Production per Cow (Kg) Source: FAPRI, AM Mindpower Solutions PERU DAIRY PRODUCTS MARKET INTRODUCTION PERU DAIRY PRODUCTS MARKET PRODUCTION BY VOLUME, Peru s dairy market constitutes of butter, cheese, skim powder, whole milk powder, milk drinks and fermented products, cream, condensed milk and whey powder. The dairy products production although declined in the historical period from 27-29, but is expected to grow in the forecasted period. The historical period witnessed a decline from 41 thousand tonnes in 27 to 393 thousand tonnes in 29, at a negative CAGR of 2.%. In the future, the production of dairy products is expected to rise at a CAGR of ~% from 393 thousand tonnes in 29 to ~ thousand tonnes in 215. 8
Figure: Peru Total Dairy Products Market Production by Volume in Thousand Tonnes, Dairy Product Market Size ('s Tonnes) 6 5 4 3 2 1 27 28 29 21 211 212 213 214 215 Total Dairy Products Market Production PERU DAIRY PRODUCT MARKET PRODUCTION BY VOLUME, 27-215 CHEESE The production of cheese contributed just 3% of the total dairy products production in 29. The market for cheese is expected to register a decline in the future as the market is not lucrative for cheese production. Cheese is more likely to be imported from other countries as it is cheaper to import rather than to produce. The cheese production registered an increasing CAGR of 18.3% during the period from 27-29, rising from 1 thousand tonnes in 27 to 14 thousand tonnes in 29. The market is expected to increase further in 21 by 1 thousand tonnes. Henceforth, the market is expected to register a downward trend in the production. The production is expected to decline from ~ thousand tonnes in 211 to ~ thousand tonnes in 215. 9
Figure: Peru Cheese Market Production by Volume in Thousand Tonnes, Production ('s Tonnes) 16 14 12 1 8 6 4 2 27 28 29 21 211 212 213 214 215 Cheese Production PERU DAIRY PRODUCT MARKET CONSUMPTION BY VOLUME, WHOLE MILK POWDER The consumption of whole milk powder increased from 9 thousand tonnes in 27 to 13 thousand tonnes in 28, an increase of 44.4%. In 29, the consumption declined by 15.4% to reach ~ thousand tonnes. The consumption of whole milk powder will increase at a CAGR of ~% from 29-215. The consumption is projected to increase from 11 thousand tonnes in 29 to ~ thousand tonnes in 215. 1
Figure: Peru Whole Milk Powder Market Consumption by Volume in Thousand Tonnes, Consumption ('s Tonnes) 2 15 1 5 27 28 29 21 211 212 213 214 215 Whole Milk Powder Consumption PERU DAIRY PRODUCT MARKET NET TRADE BY VOLUME, 27-215 BUTTER The production of butter is less as compared to the consumption. The country is importing butter rather than producing it locally. In the year 27 and 28, the net trade for butter was inconsequential. The net trade was negative in 29 wherein the imports were 1 thousand tonnes more than the exports. In the future period, the import volume of butter is expected to be more than export volume and the difference in terms of volume is expected to remain almost the same till 212. During the period from 29-215, the net trade deficit will increase and reach ~ thousand tonnes by 215. 11
Figure: Peru Butter Market Net Trade by Volume in Thousand Tonnes, Net Trade ('s Tonnes) -1-1 -2-2 -3 27 28 29 21 211 212 213 214 215 Butter COMPETITIVE LANDSCAPE Table: Competitive Landscape of Major Dairy Products Companies (Gloria, Nestle and Alicorp) in Peru Major Players Business Overview Key Business Segments (Revenue Contribution) Financials Geographical Reach Source: Company Reports, AM Mindpower Solutions 12
PERU MILK AND DAIRY PRODUCTS MARKET FUTURE OUTLOOK Industry Factors Market Impact Comments Milk and Dairy Products one of the necessity of daily food component Technological Innovations in the processing process Increasing awareness towards healthy dairy products Cause: Effects: Cause: Effects: Cause: Effects: Rising Imports Cause: Effects: APPENDIX MARKET DEFINITION Cow Milk is defined as the raw milk produced by cows in Latin America which are processed in fluid milk and grade B milk for manufacturing use of other dairy products such as Butter, Cheese and others. Dairy products market includes Butter, Cheese, Skim Milk Powder, Milk Drinks and Fermented Products, Condensed Milk, Cream and Whey Powder segments. Milk Drinks and Fermented Products are defined as the dairy products made through microbial fermentation process using lactic acid bacteria such as Buttermilk, Sour cream, Yogurt, Kefir and Koumis. DISCLAIMER No part of this manual or any material appearing may be reproduced, stored in or transmitted on any other Web site without written permission of AM Mindpower Solutions and any payments of a specified fee. Requests to republish any material may be sent to us. 13