Consultative Group on International Agricultural Research  eGR   1
@ CGIAR
Study Paper Number 12
Peru and the CGlAR Centers
A Study of Their Collaboration in Agricultural Research
Luis J. Paz Silva
!S  ral l _~~~~~~~~~03
_  i~~L






Peru and the CGIAR Centers



CGIAR Study Papers
No. 1     Technological Innovation in Agriculture: The Political Economy of Its Rate and
Bias
No. 2     Modem Varieties, Intemational Agricultural Research, and the Poor
No. 3     Plant Genetic Resources: The Impact of the Intemational Agricultural Research
Centers
No. 4     Costa Rica and the CGIAR Centers: A Study of Their Collaboration in Agricultural
Research
No. 5     Guatemala and the CGIAR Centers: A Study of Their Collaboration in Agricultural
Research
No. 6     Zimbabwe and the CGIAR Centers: A Study of Their Collaboration in Agricultural
Research
No. 7     Nepal and the CGIAR Centers: A Study of Their Collaboration in Agricultural
Research
No. 8     Bangladesh and the CGIAR Centers: A Study of Their Collaboration in
Agricultural Research
No. 9     Brazil and the CGIAR Centers: A Study of Their Collaboration in Agricultural
Research
No. 10    Indonesia and the CGIAR Centers: A Study of Their Collaboration in Agricultural
Research
No. 11    Ecuador and the CGIAR Centers: A Study of Their Collaboration in Agricultural
Research



Consultative Group on International Agricultural Research
CGIAR
Study Paper Number 12
Peru and the CGIAR Centers
A Study of Their Collaboration in Agricultural Research
Luis J. Paz Silva
The World Bank
Washington, D.C.



Copyright (© 1986
The Intemational Bank for Reconstruction
and Development/THE WORLD BANK
1818 H Street, N.W.
Washington, D.C. 20433, U.S.A.
First printing September 1986
All rights reserved
Manufactured in the United States of America
At its annual meeting in November 1983 the Consultative Group on Intemational
Agricultural Research (CGIAR) commissioned a wide-ranging impact study of the
results of the activities of the international agricultural research oganizations under its
sponsorship. An Advisory Committee was appointed to oversee the study and to
present the principal findings at the annual meeetings of the CGIAR in October 1985.
The impact study director was given responsibility for preparing the main report and
conummissioning a series of papers on particular research issues and on the work of the
centers in selected countries. This paper is one of that series.
The judgments expressed herein are those of the author(s). They do not necessarily
reflect the views of the World Bank, of affiliated organizations, including the CGIAR
Secretariat, of the international agricultural research centers supported by the CGIAR,
of the donors to the CGIAR, or of any individual acting on their behalf. Staff of many
national and international organizations provided valued information, but neither they
nor their institutions are responsible for the views expressed in this paper. Neither are
the views necessarily consistent with those expressed in the main and summary reports,
and they should not be attributed to the Advisory Corrmmittee or the study director.
This paper has been prepared and published informally in order to share the
information with the least possible delay.
Luis J. Paz Silva is president of the National Development Foundation of Peru and
head of the Department of Economics of the National Agrarian University, La Molina.
Library of Congress Cataloging-in-Publication Data
Paz Silva, Luis J., 1931-
Peru and the CGIAR centers.
(CGIAR study paper, ISSN 0257-3148 ; no. 12)
1. Agriculture--Research--Peru. 2. Consultative
Group on International Agricultural Research.
2. Agriculture--Research--International cooperation.
I. Title. II. Series: Study paper (Consultative
Group on International Agricultural Research) ; no. 12.
S542.P4P39  1986           630'.72085          86-19214
ISBN 0-8213-0788-6



v
Summary
The Peruvian economy is subject to the dynamics of the world
economy. Domestically, this has resulted in an uncoordinated and
underdeveloped economic structure and in wide inequalities among
social groups and between regions of the country. These
characteristics -- underdevelopment, little economic coordination
and subordination to the world economy -- are particularly
manifest in the rural sector. Except for the agricultural export
sector, which is now in severe crisis, and the agribusiness sector
in the northern Costa, the agricultural sector is characterized
by traditional forms of organization, low levels of crop and
livestock production, high rates of farm consumption,
underdevelopment of other productive sectors, low levels of
income and satisfaction of essential needs, shortage of land,
very small farms and farm-to-city migration. The agrarian reform
program in the 1970s eliminated some features of the system of
very large and very small farms and improved social justice.
However, the hoped-for results of increased development and
production were not realized.
Also, in 1950-82, farm output grew at an average annual rate
of 2.1 percent -- less than the population increase.  The
percentage share of agriculture in the GDP during that period
dropped from 23.5 to 12.7 percent. However, almost 40 percent of
the population continued farming in that period, an indirect
indicator of the poverty of most campesinos.



vi
The National Farm Research, Extension and Education System
was given a high priority in the late sixties, but deteriorated
In the seventies, losing much of its staff and budget.  Research
activities over the last two decades were mainly designed to meet
the requirements of the Costa.  The main crops investigated were
sugarcane, cotton, rice, maize, beans, potatoes and sweet
potatoes. The private sector had an excellent research infra-
structure for sugarcane and cotton. Livestock research was
neglected, with the main work in this area being done in
universities (San Marcos-Ivita and La Molina).
In the seventies, the Peruvian Government assigned top
priority to agrarian reform, so professional personnel
(particularly extension agents) and budget resources were
allocated to this work and research support was cut
substantially. In this period, research on sugarcane and cotton
halted, and the Experimental Stations of the Farmers Associations
were placed under the new agrarian organizations. The private
sector no longer assigned priority to research.
With the establishment of the Agricultural Promotion and
Research Institution (INIPA) in 1981, efforts were made to use
allocated resources more efficiently by concentrating on a small
number of products. Five national priority programs were
established: potatoes, maize, rice, grain (wheat, barley and
oats) and grain legumes. These five products are also the focus



viil
of the three international centers in Latin America -- CIAT,
CIMMYT and CIP. The National Livestock Program was started in
1985. The farm research system in Peru provides for coordination
and support between the five national programs for individual
products. Each program has a national leader located in the
major experimental station for the product involved and a
co-leader assigned by the international center for each product.
The clear assignment of priority to these five products and
the relationship established with the international centers is
enabling Peru to train scientific staff rapidly and make use of
the genetic findings of the international centers. This is
saving Peru many years of scientific work and enabling it to make
up for ground lost in the seventies.
Obviously, the priority assigned to these activities has been
reflected in personnel training and the production of improved
seeds adaptable to the various characteristics of the regions in
Peru. Due primarily to the work of the INIPA. the constant
efforts of the National Agrarian University and the support of
international research centers, substantial improvements have now
been made in producing seed varieties with resistance or
tolerance to adverse factors and with high productivity.
Individual observations on the impact of the international
centers include the following:
(1) increased production requires establishing a system for



producing and distributing seeds. reducing transportation costs
and developing agribusiness alternatives, identifying and
promoting markets to provide better incomes for farmers, and
developing information services on markets and prices;
(2) the international agricultural research centers (IARCs)
should rank their activities by priority and focus on those that
have comparative advantage;
(3) IARC reports should expand on and give priority to factors
limiting farmers' output and income;
(4) more effort is needed on research on water and soil
management and on over-irrigation and soil erosion;
(5) research based on agroecology zones is valuable;
(6) research on true potato seeds will help eliminate the risk of
a shortage of seed potatoes in times of drought;
(7) increased dissemination of research methods and increased
opportunities for training would be beneficial; and
(8) improved systems for distributing publications are encouraged.
In-depth discussions of five products, rice, maize,
potatoes, beans and wheat include international cooperation,
indicators of crop production, improved varieties and improved
cultivation techniques, commercial varieties and price policies.



ix
Contents
1    Highlights of the Peruvian Farm Sector                         1
1.1  The country                                              1
1.1.1  Natural features and political divisions          1
1.1.2  Population                                        7
1.1.3  Economy                                           9
1.2  The farm sector                                         11
1.2.1  Structure                                        11
1.2.2  Infrastructure and institutional
organization:  public and private               19
1.2.3  History of product prices                        23
1.2.4  Performance in the past and the present          27
1.2.5  Policy factors that directly or
indirectly affect the market                   32
2    National Agricultural Research System                         35
3    Impact of International Agricultural Research Centers
on the National Agricultural Research System                43
4    Impact of Research on Farm Production                         53
4.1  Rice                                                    53
4.1.1  International cooperation in rice                54
4.1.2  Geographic distribution of rice production    55
4.1.3  Objectives of improved rice technology           55
4.1.4  Improved varieties                               59
4.1.5  Improved cultivation technology                  64
4.1.6  Agricultural extension service and
transfer of technology to the farmer           65
4.1.7  Analysis of trends in unit yields of rice        67
4.1.8  Commercial rice varieties at the
present time                                   72
4.1.9  Price policy for rice                            72
4.2  Maize                                                   74
4.2.1  International cooperation in maize programs   75
4.2.2  Chronological highlights of genetic
improvement of maize                           76
4.2.3  Main indicators of Peruvian maize production  79
4.2.4  Criteria for improved maize technology           80
4.2.5  The major technological innovations
contributed by research                        82
4.2.6  Current commercial varieties                     83
4.2.7  Extension service and technology transfer        85
4.2.8  Changes in unit yields of maize                  86
4.2.9  Maize price policy                               91
4.3  Potatoes                                                92
4.3.1  International potato improvement cooperation  96
4.3.2  National potato production                       97
4.3.3  The main technical problems and constraints
in potato growing                              98
4.3.4  Major technology advances in Peruvian
potato research                               100
4.3.5  Genetic improvement                             101
4.3.6  Varieties now grown                             105



x
4.3.7  Extension services and technology transfer   106
4.3.8  Changes in unit yields of potatoes in Peru   107
4.4  Beans (frijoles)                                       107
4.4.1  Indicators of bean production                   109
4.4.2  General legume indicators                       112
4.4.3  Analysis of unit yields of beans                113
4.4.4  The main problems with bean production in
Peru                                           118
4.4.5  Bean research goals                             119
4.4.6  Varieties                                       119
4.4.7  Varietal improvement                            119
4.4.8  International cooperation                       119
4.4.9  Technology transfer                             122
4.4.10 Bean price policy                               122
11.5  Wheat                                                 123
4.5.1  International technical cooperation on wheat 124
4.5.2  Chronological outline of varietal
improvement of wheat                           124
4.5.3  The criteria applied for genetic improvement
of wheat                                       127
4.5.4  Improved cultivation technology                 127
4.5.5  Main technology innovations                     127
11.5.6  Extension service and technology transfer    127
14.5.7  Analysis of changes in unit yields of wheat  128
4.5.8  International commercial classification
of wheat                                       129
41.5.9  Wheat price policy                             129
5    Conclusions                                                  133
5.1  Rice                                                   135
5.2  Maize                                                   135
5.3  Potatoes                                               136
5.4  Beans                                                   136
5.5  Wheat                                                  136



xi
Abbreviations
AFATER    Special Project for Expanding the Agricultural Frontier
by Modernizing Irrigation
CCP       Cempesino Confederation of Peru
CENECAMP  National Center for Campesino Enterprises
CENFOR    Forest and Livestock Centers
CESPAC    Special Project for a Services Center on Audiovisual
Training for Teachers
CGCP      General Confederation of Peruvian Campesinos
CIPA      Agricultural Research and Promotion Centers
CNA       National Agrarian Confederation
CODEAGRO  Committee for the Defense of Small and Medium Farmers
CONAP     National Supply Corporation
CRIA      Regional Centers for Agricultural Research
ECASA     Rice Marketing Corporation
EGASA     Amazon Livestock Corporation
EMCOPESA  Corporation for Marketing Livestock Products
EMDEPALMA Corporation for the Development and Exploitation of
Oil Palm
EMMSA     Corporation for Wholesale Markets
ENACO     National Cocoa Corporation
ENCI      National Company for Marketing Inputs
EPCHAP    State Company for Marketing Fish Meal and Oil
EPSAP     Public Company for Agricultural and Fisheries Services
(known as EPSA since 1971)
FAR       Rural Action Front
IDB       Inter-American Development Bank
INAF      National Institute for Expanding the Agricultural
Frontier
INDA      National Institute on Agribusiness Development
INFOR     National Forestry and Wildlife Institute
INIPA     National Agricultural Research and Development
Institute
JURPAL    Metropolitan Lima Food Price Control Board
MT        Metric Tonne



xii
ONA       National Agrarian Organization
ONERN     Oficina Nacional de Evaluacion de Recursos Nacional
PADI      Agricultural Policy and Institutional Development
PRIDI     Private Project for Comprehensive Development
PROCOMPRA Special Project for a Comprehensive Program on
Marketing Farm Products
REHATIC   Special Project on Land Rehabilitation in the Costa
UNA       National Agrarian University
USAID     United States Agency for International Development
CGIAR-supported centers
CIAT      Centro Internacional de Agricultura Tropical
CIMMYT    Centro Internacional de Mejoramiento de Maiz y Trigo
CIP       Centro Internacional de la Papa
IBPGR     International Board for Plant Genetic Resources
ICARDA    International Center for Agricultural Research in
the Dry Areas
ICRISAT   International Crops Research Institute for the Semi-
Arid Tropics
IFPRI     International Food Policy Research Institute
IITA      International Institute of Tropical Agriculture
ILCA      International Livestock Center for Africa
ILRAD     International Laboratory for Research on Animal
Diseases
IRRI      International Rice Research Institute
ISNAR     International Service for National Agricultural
Research
WARDA     West Africa Rice Development Association



1
1 Highlights of the Peruvian Farm Sector
1.1 The country
1.1.1 Natural features and political divisions
Peru is in the western part of South America between 0002?
and 180211033" south and 69039127" west. It is bordered on the
north by Ecuador and Colombia, on the east by Brazil and Bolivia.
on the south by Chile, and on the west by the Pacific Ocean. It
is 1,285.215 km2 in area. The Andes cross Peru from southeast to
northwest, paralleling the coast. They comprise two mountain
ranges, which divide the country into three natural regions.
Coaatal plain (the Costa)
The Peruvian Costa is approximately 3.080 km long and varies
considerably in width, from over 100 km in the Department of
Piura to less than 1 km in the Department of Arequipa. The
highest elevation is estimated at 1,000 m above sea level.
Except for the area north of Piura, the Costa is arid, and
its climate is dominated by the effects of the Peru Current, the
Andes and the anticyclone circulation of the South Pacific. The
thermal inversion generated in its atmosphere results in meager
rainfall, dry soil, heavy clouds throughout the year. high
humidity (average 70 to 80 percent) and median annual tempera-
tures from 17 to 260C.
While the climate of the Costa is similar throughout its
length. there are climate differences in the interior, depending
on the latitude. The major difference is in the north (Tumbes-
Piura), because of it-s proximity to the equatorial region and the
seasonal influence of the El Niflo Current, which shifts to the
south in the summer, producing a subtropical climate with
abundant seasonal rain.



2
Mount;in reglon (th Sierra)
This region averages 4,000 m above sea level. The lowest
altitude is estimated at 1,000 m, and the highest peaks are over
6,000 m. The lowest level of the Andes is the western versant
(1,000 to 2,000 m), a desert area. At intervals, torrential
rivers, the main drainage channels of the Andes, cut narrow east-
west valleys. On the eastern versant, the climate promotes heavy
vegetation, and there are numerous torrential rivers.
The middle Andean region, approximately 2,000 to 3,000 m in
altitude, has similar features on both versants.  At this level,
there has been deep erosion, producing imposing Andean canyons
such as those of the Majes, Canete, Rimac, Chillon, and Canon del
Pato rivers on the west versant, and the Paucartambo, Urubamba,
Apurimac, and Mantaro canyons on the east, as well as the canyon
formed by the Maranon river. At this level of the Andes, some
valleys comprise well-defined farming areas like the Arequipa and
the Callejon de Huaylas areas on the western versant. On the
eastern versant are the Cajamarca valley and the valleys formed
by the following rivers: Huallaga (in Huanuco) Mantaro (in
Junin), Pampas (in Ayacucho) and Urubamba (in Cusco).
The highest Andean region is over 3,500 m above sea level.
From this level to 4,500 m is the plateau area known as Punas.
It is a gently rolling area mostly covered with the graminaea
grass ichu. From 2,000 to 3,500 m above sea level, the climate
is temperate, with an average annual rainfall of 300 to 1,200 mm.
The temperature ranges from 2 to 25°C, varying substantially
from day to night and also with the altitude. The climate in
this region makes it one of the best suited for human habitation.
Most of the plateaus from 3,500 to 4,500 m are covered with
graminaea, so they are a natural pastureland for cattle, sheep
and the camelidae (alpacas, llamas, et al.).
T=e A_az9n and Jvnse region (the Sglva)
This region comprises three areas, differing mainly in their
morphology and the characteristics of their rivers: Ceja de
Selva ("brow of the mountain"), the High Selva and the Low Selva.



3
The Ceja de Selva is a region of broken topography. with deep,
narrow, steep-sided gorges. The climate is temperate and
overcast, with heavy rains in the summer.
The morphology of the High Selva consists mainly of the high
Andean foothills. which sometimes reach 2,000 m. separated by
long, narrow valleys that often form large gorges (known as
"pongos"), through which the major rivers of the Selva flow.
Large areas of the High Selva consist of river terraces at
various levels. The lowest terraces which border the current
riverbeds, are subject to brief floodingt highly fertile and
constitute valuable farm land. While the middle-level terraces
are not as fertile as the lowlands, they can be farmed and are
not subject to flooding.
The Amazonian tropical plains (Low Selva) begin where the
Andean foothills leave off, and often this area coincides with
the end of the area of large gorges. Extensive areas of the Low
Selva are temporarily flooded by the large rivers comprising the
Amazon hydrographic system. The region has important forest
resources. Permanent farming is limited to the higher regions
and to some mud flats suitable for intensive seasonal farming
with crops that tolerate wet soil.
Soil resource
For the most parts Peruvian soils have low natural
fertility, are deficient in nutrients, are frequently arid and
have little organic matter. Another characteristic is the steep
slope of large areas of land, which results in shallow unstable
soils susceptible to erosion. There are also soils seriously
deficient in water (in the Costa) and soils subject to periodic
flooding, aggravated by poor drainage in the Selva.
The estimated area of soils suitable for agriculture,
pasture and forestry is 74.2219000 ha (58 percent of the
country's area), which is distributed as follows:



4
Temporary cropping                       4,902,000 ha (3.8%)
Permanent cropping                       2,707,000 ha (2.1%)
Subtotal (includes the 3.5
million ha now being farmed)       7,609,000 ha (5.9%)
Pastureland                             17,916,000 ha (13.9%)
Forestland                              48,2L,QQ La (57g2)
Total                             74,221,000 ha (57.7%)
With 3.5 million ha now being farmed, the country could
more than double its current agricultural land.  Most of the
unused potential is in the Selva (about 4 million ha), but these
lands are scattered along rivers, and major markets are not
easily accessible.  Farm management practices suitable for this
delicate ecosystem should be used.
The area now under cultivation in the Costa (about 800,000
ha) could be doubled, depending mainly on the water supply.  In
the Sierra. the potential is negative, that is, land is being
used that is not suitable for farming (mostly steep slopes
subject to erosion).  An estimated 10 percent of the area now
under cultivation in the Sierra should not be farmed.
iWgtrr resources
Water is generally scarce in the Costa, relatively abundant
in the Sierra and overabundant in the Selva. Runoff water in the
country has been estimated by the Oficina Nacional de Evaluacion
de Recursos Nacional (ONERN) at a little over 2 billion m3, with
the Atlantic basin accounting for 98 percent. According to
currently known potential. the controllable water volume is 5
million m3, 40 percent of which is on the Pacific versant. 58
percent on the Atlantic versant, and 2 percent in the Lake
Titicaca basin.
Currently the regulated volume nationwide is nearly
5 billion m3, in 186 lagoons and 23 dammed reservoirs. Sixty
percent of the dammed water is on the Pacific versant, and
33 percent on the Atlantic side. A large portion of the regu-



5
lated volume on the Atlantic versant is brought to the Pacific
side through trans-Andean diversions. Nearly 24 billion m3 of
water are consumed in the country. of which about 95 percent is
for agriculture and more than two-thirds is used in the Costa.
Forest resources
An estimated 74 million ha, or 58 percent of Peru's total
area is natural forest land. Current timber production is
5 million m3, which could be increased to an estimated
150 million with available resources.
There are two types of forests: homogeneous and mixed.
Mixed forests cover 90 percent of the wooded areas and have a
large number of species per unit of area. These forests are
mainly in the Departments of Loreto, Ucayali, San Martin and
Madre de Dios, and to a lesser extent in the High Selva Depart-
ments of Amazonas, Huanuco, Pasco, Junin and Cusco.
Homogeneous forests cover 10 percent of the wooded area in
the country, and certain predominant species differentiate
one forest from the others. These include:
Forests subject to flooding, about 6 million ha in
the Selva floodplains near the major rivers (Maranon,
Ucayali, Napo. Putamayo and Amazonas). Most of these
forests are in the Department of Loreto.
Podocarpus forests. which cover about 700,000 ha
located mainly in the Department of Cajamarca (Jaen San
Ignacio). The Podocarpus is a conifer that is important
because of its extensive use in carpentry and paper manu-
facture.
Arid forests cover a total of over 750.000 ha, dis-
tributed in the Departments of Lambayeque, Piura and
Tumbes. The most common species here are guayocan
(cesalpinia melanocarpa), cow trees (palo de vaca),
hualtaco, ceibo (erythrina cristagalle), and algarrobo
(ceratonia siliqua). The first three are important for
the manufacture of furniture and parquet. Most of these
forests are degraded as a result of indiscriminate use
(industrial, fuel and forage) and improper management.



6
Energy resource
Peru's energy potential is about 5,600 billion kilocalories,
of which approximately 70 percent comes from hydropower,
17 percent from petroleum. 10 percent from coal and 3 percent
from gas. Howevert consumption breaks down as follows:
petroleum provides about 60 percent of energy requirements. while
hydropower contributes only 16 percent.  This is an irrational
use of available resources. particularly since hydraulic
resources are renewable, while petroleum is not.
The hydropower potential in Peru is estimated at 58.000 MW,
of which 11.000 MW is on the Pacific versant and 47,000 MW on the
Atlantic side. The latter includes 250 MW for the Titicaca Lake
Basin.  Peru's geographical conformation and the availability of
water should make it possible to meet the country's energy demand
mainly from hydropower.
Petroleum resources are mainly located in the coastal
Department of Piura (including the submarine sill) and the
eastern Amazon Basin. The latter includes the provinces of
Loreto, Requena and Coronel Portillo. Proven reserves are
estimated at 800 million barrels, with a 10-to-1 ratio of
reserves to current production. Proven petroleum reserves are
estimated at 10 billion barrels, of which 90 percent are in the
eastern Amazon Basin.  Natural gas reserves are mostly associated
with petroleum, so their location is similar.
Proven gas reserves are estimated at 1.3 billion cubic feet.
Current production comes mostly from the north of the country and
totals 4 percent of proven reserves.
The country has a large variety of coal, from the highest
quality (anthracite) to the lowest (lignite and peat).  The main
anthracite coal deposits are in La Libertad, Ancash and
Cajamarca; bituminous coal in Lima and Junin; and lignite in
Tumbes. Estimates to date are that less than 1 percent of the
total coal potential has been used out of about 1 billion tons of
possible reserves.



7
bdu1biolgal reources
This aspect of the country's potential resources comprises
the communities of biological species inhabiting the ocean
waters. rivers. lakes and lagoons of Peru.  Peruvian ocean waters
are among the richest in the world because of the huge amounts of
nutrient substances brought to the surface by deep water
upwelling. Marine resource potential comprises fish,
crustaceans, mollusks, mammals, algae and other species currently
used by people in one way or another.
The northern and central coasts have the largest amount and
variety of ocean resources, although both the amount and variety
can change with shifts in the ocean currents (the Peru and
El Niflo Currents). The southern coast has the least marine
resource potential. However. Arequipa and Tana play a major role
in exploiting fisheries resources for industrial and direct
consumption.
The hydrobiological potential of inland waters mainly
consists of the fish species in the rivers, lakes and lagoons of
the Selva and the Sierra.  In the Selvat paiche (a codlike fish),
gamitano, and shad (sabalo) are the major sources of protein for
the Amazon population.  In the Sierra, trout along with other
species like suche. arnillo drum (caracha). and bream (boga) con-
tribute to the diet of the Andean people.
1.1.2 Population
According to estimates by the National Statistical Insti-
tute, the Peruvian population is approaching 19.700,000 in 1985.
In 1990, the population will rise to about 23,100,000, and in the
year 2000, to 29,600,000.
The population increased at an average annual rate of
2.1 percent between 1940 and 19609 and then accelerated to
2.9 percent between 1961 and 1972. From 1972 to 1981, the rate
declined to 2.5 percent. The breakdown by age group shows that
young people predominate in the Peruvian population. Table 1.1
shows that most of the population is under 14. and consequently
below the working age.



8
Table 1.1 Peruvian Population -- Percentage Breakdown by Age
Age Groups                     1972             1980           1990
0 - 14                            45               44             42
15 and over                       55               56             58
Total                       100             100             100
In addition to the overall growth rate and the breakdown by
age group, another important feature of the Peruvian population
is the growth in the interior of the country. The Department of
Lima and the Constitutional Province of Callao together accounted
for 30.5 percent of the country's total population in 1981.  The
other more populated departments were: Piura, Cajamarca,
La Libertad, Puno, Cuzco and Arequipa, which together comprised
32.7 percent of the total population.  Hence, 63.2 percent of the
population lived in 27 percent of the area of the country. Lima
and Callao are the most densely populated areas, with 152.7
inhabitants per km2.
Census figures for 1940-61 and 1961-80 show that, with some
variations, the population of the departments in the Costa area
(Lima, Callao, Tumbes, Lambayeque, Ica, Moqugua, and Tacna) has
increased the fastest over the last 40 years and that the
departments of the southern Sierra (Apurimac, Ayacucho and
Huancavelica) have had a slower growth. The statistics also show
that the population of the Selva, particularly Ucayali, Amazon
and Loreto, is growing rapidly, but this does not have a major
impact on the distribution of the country's total population
because of the small sizes of these populations.
Migration has been the main factor influencing the popula-
tion dynamic of the various territorial units in the country.
The Lima-Callao area, the most developed in the country, is the
main attraction for migrants because opportunities are greater



9
there than in the highlands where the standard of living is one
of the lowest in the country. Table 1.2 shows the migratory
flows by department.
1.1.3 Economy
Per capita gross domestic product (GDP) measured at 1970
prices, increased from 1970 to 1976; remained virtually the same
up to 1982; and then fell significantly in 1983 because of the
production drop resulting from the natural disasters that year.
Table 1.3 shows the per capita GDP trends in 1960-83.
In a little over 30 years, the farm sector's predominant
share of output has dropped to nearly half, and other sectors
have emerged, like mining, manufacturing and tertiary production.
which in recent years have been contributing more than 80 percent
of GDP. The tertiary or services sector accounted for 44 percent
of the employed population in 1982, followed by the farm sector,
with 38 percent. Table 1.4 breaks down GDP formation and employ-
ment absorption from 1950 to 1982 by sector.
The value of exports was US $3,015 million in 1983,
8 percent less than in 1982. This decline was mainly caused by a
US $207 million reduction in overseas sales of nontraditional
products, mainly because of insufficient dynamism in the
industrialized countries and serious liquidity problems in the
developing countries. In addition, the stronger dollar increased
the price of Peruvian products in countries whose currencies were
devalued against the U.S. dollar, causing a drop in Peru's export
sales.
Lower imports of traditional products (US $71 million) were
mainly associated with a drop in foreign sales volumes of farm,
fisheries and petroleum products, caused by the negative effect
of the El Niffo phenomenon. In contrast, while the average prices
of traditional products rose in 1983, they did not reach their
1981 levels, which can be used as a base year for comparison.



10
Table 1.2 Migration by Departments
Departments           Immigrants      Emigrants        Balance
Lima-Callao              45.1            14.4            30.7
Arequipa                  6.0             4.9              1.1
Junin                     5.9             6.1            -0.2
La Libertad               4.9             5.2             0.3
Lambayeque                4.2             3.6             0.6
Ica                       3.7             3.6             0.1
Ancash                    3.5             8.5            -5.0
Amazonas                  2.9             1.7              1.2
Cajamarca                 2.4             8.6            -6.2
Cuzco                     2.3             4.6            -2.3
Piura                     2.3             6.1            -3.8
Huanuco                   2.1             3.4            -1.3
Loreto                    2.0             2.5            -0.5
Ayacucho                  1.7             5.5            -3.8
Pasco                     1.7             2.3            -0.6
Tacna                     1.6             1.0             0.6
Puno                      1.6             6.1            -4.5
Huancavelica              1.4             4.0            -2.6
San Martin                1.3             2.1            -0.8
Moquegua                  1.2             0.9             0.3
Apurimac                  1.0             3.9            -2.9
Tumbes                    0.0             0.8             0.1
Madres de Dios            0.3             0.2             0.1
Total             100.0           100.0             00.0
Source: Boletin de Analisis Demografico No. 22. 1979. ONE.



11
Tables 1.5 and 1.6 show the performance of export volumes and
prices from 1981 to 1983.
In 1983, the value of imports dropped 27 percent from the
previous year, with a decline in purchases of various types of
commodities, except for foodstuffs, as shown in Table 1.7.  A
decrease in productive activity and the policy of gradually
increasing the real exchange rate, which raised the prices of
imports expressed in local currency, affected this result.
The banking system's international reserves fell
US $61 million in the first quarter of 1984. However, this was
significantly less than the decline in the first quarter of 1983.
A major factor in this relative improvement was the agreement
between the Peruvian Government and the international banking
system to reschedule the foreign debt.
1.2 The farm sector
1.2.1 Structure
The Peruvian economy is subject to the dynamics of the world
economy. Domestically, this has resulted in an uncoordinated and
underdeveloped economic structure and wide inequalities among
social groups (in terms of income, development level, forms of
socioeconomic organization and inclusion in the national economy)
and between regions of the country. This produces unstable
socioeconomic integration in the country.
These characteristics -- underdevelopment, little economic
coordination, and subordination to the world economy -- are
particularly manifest in the rural sector. Except for the agri-
cultural export sector (now in a severe crisis) and the agri-
business sector in the northern Costa, the sector is character-
ized by traditional forms of organization, low levels of crop and
livestock production, high rates of farm consumption, under-
development of other productive sectors, low levels of income and



12
Table 1.3 Gross Domestic Product Per Capita
GDP             Population      Per Capita GDP
Year     (SI. million 1970)  (in thousands)        (S/. 1970)
1960           140,638             9,528             14,607
1961          152,482              9,907             15,391
1962          166,245             10,192             16,311
1963          173,009             10,486             16,499
1964           185,369            10,788             17.183
1965          194.407             11,098             17,517
1966          208,112             11,418             18,227
1967          215,424             11,747             18,339
1968          215,363             12,085             17,821
1969          224,272             12,433             18,038
1970          240,666             12,791             18,815
1971          253,014             13,160             19.226
1972          267,782             13,538             19,780
1973          284,384             13,886             20,480
1974          303,879             14,242             21,337
1975          311,131             14,607             21,300
1976          321,483             14,982             21,458
1977          320,640             15,367             20,865
1978          314,969             15,761             18,984
1979          328,527             16,165             20,323
1980          337,749             16,580             20,371
1981          347,877             17,005             20,457
1982          351,059             17,442             20,127
1983          309,666             17,889             17.310
Source: Central Reserve Bank of Peru.



Table 1.4 Structure of Production and Employment* by Sector
Sector       GDP at. 973,Prices (ercentaxe)                 Employment
1950   1960   1970   1982          1950   1961  1970   1982
Agriculture* hunting
and forestry             23.5   17.2   14.7   12.7             59      53    53      38
Fishing                      0.3    1.1    2.2    0.1            *       *     *       *
Mining                       5.6    7.8    7.1    8.0             2       2      2      1
Manufacturing               18.2   22.9   24.7   23.4            13      13    14      13
Construction and Energy    3.9    3.9    3.6    5.0               3       4     5       4
Tertiary sectors           48.5   47.1   47.7   50.8             23      28    26      44
Total                100.0  100.0  100.0  100.0            100    100   100    100
S  E* S S~ V   SSV'SSXSSSSt.S' 'S VS S   '' '  5'   5 S    VS' LS    , XX<.''S.'   '   S<t    S'kL<<<v<<..u<E<<t<  '  ' S' SV'SVS_ _
Note: The agriculture, hunting and forestry sector includes the fisheries sector.
Source: National Accounts 1950-82.



14
Table 1.5 Exports, by Product Group
(in millions of US$)
1981         1982         1983
Traditional Products            2,548        2,531        2,460
Mining                        1,494        1,313        1,578
Petroleum and derivatives       689          719          544
Agriculture                     170          218          196
Fisheries                       141          202           79
Others                           54           79           63
Nontraditional Products           701          762           555
Textiles                        234          281           186
Fisheries                       107           98           80
Others                          360          383          289
TOTAL                      3,249        3,293        3,015
Source: Banco Central de Reserva del Peru.



15
Table 1.6 Price Effect of Traditional Exports: Base 1981
(in millions of US$)
1982            1983
Flour                                     -74.0            -12.8
Cotton                                    -34.4            -18.2
Coffee                                     10.3            -13.7
Copper                                    -87.3            -34.0
Iron                                        7.1             -1.1
Refined silver                            -83.6             20.0
Lead                                      -50.1              5.8
Zinc                                       -6.9             14.7
Petroleum and derivatives                 -68.7           -167.3
TOTAL                               -387.6          -198.6
Source:  Banco Central de Reserva del Peru.
Table 1.7 FOB Imports
(in millions of US$)
1981       1982      1983
Consumer goods                         603        495        366
Inputs                               1,376      1,290      1.009
Capital goods                        1,454      1,411        900
Subtotal                       3,433      3,196      2,275
Miscellaneous and adjustments          369        525        447
Total                          3,802      3,721      2.722



16
satisfaction of essential needs. shortage of land, very small
farms and farm-to-city migration. The agrarian reform program in
the 1970s eliminated some features of the system of very large
and very small farms and improved social justice. However, the
hoped-for results of increased development and production were
not realized.
Also, in 1950-82, farm output grew at an average annual rate
of 2.1 percent -- less than the population increase.  The
percentage share of agriculture in the GDP during that period
dropped from 23.5 to 12.7 percent (Table 1.4).  However, almost
40 percent of the population continued farming in that period, an
indirect indicator of the povery of most campesinos.
Only 30.5 million ha (24 percent) of the country's total
area of 128 million is devoted to agriculture, and of this
3.5 million ha is cultivated (temporary and permanent crops and
fallow land) and 27 million ha is natural pastureland as shown
in Table 1.8. This serious problem is being continuously
aggravated by the farm land loss caused by urban development,
erosion, overgrazing, salinization and poor drainage. Of the
total farm land, about 1.2 million ha is under irrigation (58
percent of this is in the Costa), while the remainder is rainfed
as shown Table 1.9. Table 1.9 also shows that 1.2 percent of
farms occupy 52.3 percent of the farm land, and at the other
extreme, 84.3 percent of farms have only 4.2 percent of the land.
Prior to the agrarian reform in the seventies, land owner-
ship showed the traditional dual structure -- large holdings
(latifundios) and small holdings (minifundios), and between them
a number of types of small and medium land holdings. Table 1.10
shows the land tenure structure in 1961.
The agrarian reform initiated in 1969 under Decree Law 17716
(previous agrarian reform laws had no substantial impact) sought
to be an instrument for both land redistribution and



17
Table 1 .8 Total Area, Agricultural Area and Crop Area of Peru
National and Regional Totals
Area                           Ha            VS           HS
Territorial Area (1)       13,594,937       100.0        10.6
Crops and Livestock (2)   1,301,836           9.6         6.9
Crops (3)                     744,117         5.5        20.2
Harvested (4)                 587,779         4.3        24.9
Territorial Area (1)       39,332,035       100.0        30.6
Crops and Livestock (2)  16,581,235          42.2        88.1
Crops (3)                   2,342,604         6.0        63.5
Harvested (4)               1.348,646         3.4        57.1
Territorial Area (1)       75,594,588       100.0        58.8
Crops and Livestock (2)       937,206         1.2         5.0
Crops (3)                     604,695          .08       16.0
Harvested (4)                 425,160         0.6        18.0
Territorial Area (1)    128,521,560         100.0       100.0
Crops and Livestock (2)  18,820,277          14.6      100.0
Crops (3)                   3,691,416         2.9       100.0
Harvested (4)               2,361,585         1.8      100.0
Notes:
(1)  Includes inland waters (rivers and lakes).
(2)  Includes cropland plus natural pastures (excludes mountains,
forests and any other type of land).
(3) Includes cropland, that is, temporary crop, permanent crop,
and fallow land. The area listed in the census as arid
land in the Costa has been transferred to the arid Sierra.
(4) Refers to area harvested in the census year (July 1, 1971
to June 30, 1972).
Abbreviations:
V%   "Vertical percentage" is the percentage of the total terri-
torial area, for each item.
H%   "Horizontal percentage" is the percentage of the total
national area, for each item.
Sources:
Ministry of Agriculture -- Office of Statistics, "Estadistica
Agraria - Peru 1968," Vol. I (Territorial Area); National Crops
and Livestock Census of 1972 (crops and livestock area, crop
area and harvested area). ONEC.



18
Table 1.9 Crop Area, by Natural Region
(in millions of ha)
Region         Irrigation            Rainfed              Total
Costa               0.7                                    0.7
Sierra              0.4                1.8*                2.2
Selva               0.1               Q      
Total         1.2                2.3                  3.5
Note: *An estimated 0.5 million ha is fallow.
Table 1.10 Number and Size of Farm Units in Peru
by Economic Category 1961 (estimated)
Farm Unit              __Size
Total          Average per
Number    S      (000 ha)     S    unit (ha)
Haciendas             10,462    1.2      13.995     52.3   1,338.1
Capitalist
farms (fundos)
and small
landholders          23,250    2.7       1,006      3.7       43.3
Self-sufficient
family farms         98,370   11.5         876      3.3        8.9
Small farms
(minifundios)       719.110   84.3        1.124      4.2        1.6
Communal
farms                 2,338    0.3       9.770     36.5   4,179.1
Total          8539530  100.0      26,771    100.0        31.8



19
comprehensive transformation of the agricultural structure, by
integrating the country's socioeconomic development policies.
As a result of agrarian reform, a new land tenure structure
has been set up in which campesino associations (farmers'
cooperatives and "social interest" farmers' associations) are the
cornerstone of the country's new agrarian structure. However, a
wide variety of technical, managerialt labor, social and
political problems gradually brought these associations to the
point of crisis, which affected the modern cooperatives and sugar
complexes as well as rudimentary, precapitalist Sierra
enterprises.
The present government has adopted land distribution as the
centerpiece of its program to meet the current crisis of
campesino enterprises. This is a complex issue and is currenly
under debate. Table 1.11 shows the progress made in agrarian
reform and the new land tenure structure in the farm sector.
1.2.2 Infrastructure and institutional organization: public and
private
The public farm sector is organized into the Department of
Agriculture, Special Projects, Decentralized Public Institutions
and Public companies.
DeDartmet of Agrigulture
The Department of Agriculture is the central agency
regulating the farm sector, and its duties are to formulate and
direct policies for the sector; and to plan, standardize,
implement, supervise and evaluate regulations for the sector.
The Department's organizational structure includes (1) top
management (Office of the Minister; and Managers); (2) control
section (General Inspection); (3) advisory sections (Farm
Planning Sector Office; Office of Legal Counsel; and General
Office of Scientific Management); (4) support agencies (General



Table 1.11 Summary of Agrarian Reform Land Allocations
by Type (Cumulative 1967-84)
1     ~Irrigationy2d
Type                   -Total -General         --Agrarian Reform1_         Irrigvation   d
Type ~__ _ _ __ _ __ _ ____              _____________________         Selva    Lande
Ent.     ha       Fam.    Ent.    ha         Fam.    Ent.   Ha    Fam.
Cooperatives       629  2,228,312  102,984   561  2.143.174   99,461   68   85,138  3,523
Campesino Groups 1,097  1,942,668   53.432 1,043  1,929,374   52,559   54   13,294    873
Communities        688  1,403.273  161,140   688  1,403,273  161.140   --         --      --
SAIS                58  2,698,156   51,126    58  2.671,464   51.126   --   26,692        -
Individual Allo-                                                                                    o
cations           --  1.089,102   66,563    --    547,267   42,723   --  541,835 23.840
Total            2.472  9,361,511  435,245 2.350  8,694,552  407,009  122  666.959 28.236
Notes:
1       Expropriated, donated and reverted farms (fundos)
2       Government land
*        Increase for SAIS Tupac Amaru
(T.N.)  Worker-owned and -managed firms funded with government
capital.
In addition. 283,147 ha was transferred to 13 social property enterprises (empresas de
propriedad social) (T.N.) and 149.042 ha to other government agencies. for example.
universities.



21
Office of Management; General Office of Rural Property
Registration; Sectoral Office of Statistics; and General Office
of Public Affairs); (5) central line agencies (General Department
of Crops and Livestock; General Department of Agribusiness and
Marketing; General Department of Forestry and Wildlife; and
General Department of Agrarian Reform and Rural Settlement); and
(6) decentralized agencies (24 Regional Offices, with one for
each department).
Ducial Drgject§
Some investment projects require special management because
of their importance to the country, size, cost, financing and/or
method of execution. To date the following have been
established:
Special Project for the Agricultural Sector Program
Special Project for a Comprehensive Program on
Marketing Farm Products (PROCOMPRA)
Private Project for Comprehensive Development (PRIDI)
Special Project for Expanding the Agricultural Frontier
by Modernizing Irrigation (AFATER)
Special Project on Land Rehabilitation in the Costa
(REHATIC Plan)
Special Project for a Services Center on Audiovisual
Training for Teachers (CESPAC)
Decentralized Dublig institutJoU
These are executive agencies of the public farm sector. The
following four have been established:
National Institute for Expanding the Agricultural
Frontier (INAF).  Responsible for implementing activities to
bring new land into production by executing projects
for irrigation. improved irrigation, land recovery and
rehabilitations and development of lands in the Selva and
Ceja de Selva.
National Agricultural Research and Development
Institute (INIPA).  Responsible for agricultural research,



22
extension, and promotion. Also promotes rural marketing of
agricultural products.
National Forestry and Wildlife Institute (INFOR).
Conducts forestry, wildlife, and forestry agribusiness
research, extension and promotion work and provides services
for these activities. Also implements special projects on
conservation and rational utilization of forest and
livestock resources.
National Institute on Agribusiness Development (INDA).
Conducts research and promotion of agroindustries.
These national institutes may have decentralized or regional
agencies such as INIPA and INFOR, under them. The INIPA has 18
agricultural research and promotion centers (CIPA) throughout the
country, working in conjunction with the corresponding national
bureaus of the Ministry of Agriculture. INFOR has forest and
livestock centers (CENFOR), which are decentralized agencies to
carry out in their assigned areas the activities required to
attain institutional objectives and targets. In addition, there
are irrigation districts in valleys or basins for distribution
and management of water resources.
Public ogmpanies
The National Company for Marketing Inputs (ENCI) represents
the government in domestic and foreign marketing of agricultural
products. farm inputs. and food products and inputs.
Other public companies connected with agriculture are
organized as state companies governed by private law and include:
Corporation for Marketing Livestock Products (EMCOPESA),
Corporation for Wholesale Markets (EMMSA), Corporation for the
Development and Exploitation of Oil Palm (EMDEPALMA S.A.), Amazon
Livestock Corporation (EGASA), Rice Marketing Corporation (ECASA)
and National Cocoa Corporation (ENACO).
The private farm sector shows two general kinds of organi-
zation: entrepreneurial producers and farmers' organizations.
Entrepreneurial organizations for producers include: agrarian



23
producers cooperatives. low-income farmers' associations,
individual farmers, agribusinesses and marketing companies.
Farmers associations take many forms and cater to a wide
range of interests. There are seven national organizations: the
Campesino Confederation of Peru (CCP); the National Center for
Campesino Enterprises (CENECAMP); the General Confederation of
Peruvian Campesinos (CGCP); the National Agrarian Confederation
(CNA); the Committee for the Defense of Small and Medium Farmers
(CODEAGRO); the Rural Action Front (FAR); and the National
Agrarian Organization (ONA). There are also 21 other national
organizations like the committees for Individual Products, the
Coffee Growers and Sugar Producers Federations, the Poultry
Raisers, and various livestock associations, among others. To
govern water use, there are Users Boards and Irrigation
Committees in the Irrigation Districts.
1.2.3 History of product prices
This chapter covers three periods: before 1968; 1969-79;
and 1980 to the present. Up to 1968, food products were subject
to special price controls. Agencies like the municipalities and
the National Supply Corporation (CONAP) performed this function.
They were assigned the specific duty to keep the cities,
especially metropolitan Lima. supplied with food at low prices.
In 1969-79, significant changes were made in the farm
product price policy through the new general economic policy,
whose farm marketing provisions can be summarized as follows:
(1) Streamline food distribution and marketing systems to ensure
that consumer interests and legitimate producer interests
are equally protected.
(2) Endeavor to enable producers to share as far as possible
in the value added of product processing and marketing.
(3) Intensify marketing structure reform by changing the
agricultural structure and its role in medium-term food
production.
(4)  Establish and improve the physical infrastructure of



24
marketing by encouraging private initiative and stepping in
to regulate the supply of farm products in which the private
sector is not interested.
(5) Expand the use of instrumentally directed policies by
extending them to a wider range of food crops.
The government's more active participation throughout the
economy is reflected in the establishment of a number of public
companies involved in production and marketing farm commodities.
To ensure urban supplies, CONAP was replaced by the Public
Company for Agricultural and Fisheries Services (EPSAP) in 1969.
The work EPSAP (known as EPSA since 1971) was to perform in
theory was to increase farm production and productivity by
facilitating the marketing of final and intermediate commodities.
It also was responsible for ensuring the supply and stabilizing
the prices of farm products. EPSA engaged in some marketing of
a number of staples. including potatoes, domestic wheat,
oilseedss flint maize and legumes, and had a monopoly on rice
marketing. In 1974, it gave the State Company for Marketing Fish
Meal and Oil (EPCHAP) responsibility for marketing exports of
cotton and coffee and for importing a number of foodstuffs like
wheat, flint maize, grain sorghum and rice.  Starting that year,
the National Company for Marketing Inputs (ENCI) had a monopoly
on marketing fertilizers.
During that period, a number of supreme. ministerial and
departmental laws and resolutions were issued to control,
regulate and/or monitor prices. Decree Law 17684 of June 6.
1969, declared beef, tuna, "canario" beans (frejol canario),
white potatoes and French bread to be controlled products. Later
it was decided that prices subject to control would be regulated
under Supreme Resolutions and would be monitored by ministerial
resolutions. Decree Law 21433 of 1976 differentiated between two
types of prices: (a) those set and adjusted by the Executive
Branch (these were subdivided into controlled and regulated). and



25
(b) those set by the market. Supreme Resolution 0034-76-AL of
March 5. 1976. approved the list of controlled and regulated
commodities and the resolution authorizing the establishment or
adjustment of prices.
Thus prices were controlled and adjusted by the following
methods:  (a) Supreme Resolutions, approved by the Council of
Ministers, (b) Other Supreme Resolutions, (c) Ministerial
Resolutions, and (d) Area Directors' Resolutions. Regulated
prices could be adjusted by Area Directors' Resolutions or by the
regulatory boards.
Decree Law 18358 of August 7, 1970, established the Metro-
politan Lima Food Price Control Board (JURPAL) to:  (a) set
commercial profit margins for wholesale foods (Lima) and retail
foods (Lima and Callao), and (b) establish periodic price lists
for all wholesale foods. The JURPAL was responsible for calcu-
lating "reasonable profit margins" (RPM) for both wholesalers and
retailers. According to the law establishing them. the RPMs con-
stitute fair remuneration for invested capital and for labor at
the wholesale and retail level.
In 1976. Decree Law 21433 of February 21 and Supreme Reso-
lution 0034-76-AL of March 5 repealed the provisions establishing
and regulating JURPAL, but did not change its duties. The new
provisions established the price control system. At the same
time, Ministerial Resolution 0151-76 PM/ONAS of August 12. 1976.
set up national price control boards. Their purpose was to fix
prices of controlled foodstuffs periodically. The main objective
was to reconcile the interests of producers. consumers and
merchants with the National Protection System that had been
created.
In practice, the price control mechanism was as follows:
JURPAL gathered data on the volume marketed in the previous week,
prices in other locations, prices in the previous period and



26
production costs. With this data, it set wholesale prices,
which, with the retailers' markup, gave the consumer price.  This
procedure was repeated weekly or every two weeks. Each depart-
ment had a JURPAL, and the list of controlled products and their
prices was issued automatically by each departmental JURPAL.
Farm prices were not set.  The concepts implicit in this
mechanism showed substantial ignorance of how farm products,
especially perishables, are produced and marketed.
These mechanisms obviously did not produce the expected
results, since the control prices set by the JURPALs seldom
reflected the actual prices paid by the consumer.
In 1980, a fundamental change was made in the approach to
price setting for farm products, especially foods. Decree Law 02
for the Promotion and Development of Agriculture, issued in
November 1981, set forth the new government's farm sector
guidelines to encourage staple food production and marketing.
Article 11 of this law states that domestic farm products and
byproducts may be marketed throughout the country, except for the
provisions of Articles 9, 10, 19, the special provision of this
law, or the laws on narcotic drugs.  Article 10 provides that, to
safeguard the preservation and proper use of plant and wildlife
species, the Ministry of Agriculture and Food may issue
regulations and restrictions on gathering, catching, hunting or
marketing them. Article 19 established that government, state-
owned or mixed companies may, when necessary, regulate the supply
or control the prices of such products.
The most specific price setting provision is contained in
Article 15 of Decree Law 02, which states: In exceptional
circumstances, the government may establish through a Supreme
Decree, with the approval of the Council of Ministers, the list
of staple food inputs and outputs that will be subject to price
control.



27
In accordance with Article 15 of Decree Law 02, Supreme
Decree 249-82-EFC of August 20, 1982, was issued. It provides:
"The following are declared to be staple food inputs and outputs
subject to price control: unhulled rice, yellow and white sugars
domestically produced oilseeds (soybeans and "tarwi" - Lupinus
tarus) used for industrial oils, cottonseed, cottonseed kernels
for industrial oil, cottonseed meal, raw vegetable oil, hard
yellow maize and grain sorghum. wheat for milling and wheat
byproducts, wheat flour for bread and pastas, dry butterfat or
butter oil, fresh milk for processing plants, recombined.
evaporated milk (domestic) and fat-free milk powder (imported),
and whole powdered milk packaged and marketed by the ENCI.
The Ministry of Agriculture sets prices on farm inputs and
outputs and staple foodstuffs subject to price control, after
obtaining the opinion of the General Department of Economic
Affairs of the Ministry of Economics, Finance and Commerce.
The only special provision of Decree Law 02 provides that in
exceptional cases the government may, under a Supreme Decree in
accordance with the provisions of Articles 114 and 117 of the
State Political Constitution, establish mechanisms to regulate
or control the marketing of the main farm products and inputs.
In application of this Special Provision, and at the time of
the natural disasters that occurred in March 1983 and February
1984, Supreme Decrees 094-83-EFC and 057-84-EFC, respectively,
approved the lists of staple foodstuffs temporarily subject to
price control and indicated the maximum consumer prices.  Both
decrees were in effect for no more than 60 calendar days from
their publication in the Official Gazette "El Peruano."
1.2.4  Performance in the past and the present
In the context of the development model it has followed, the
Peruvian economy has undergone substantial changes in recent
decades. Table 1.4 shows that the farm sector steadily lost



28
ground in gross domestic product (GDP) from 1950 to 1982.
Declining from a predominant share of one-fourth of GDP in 1950,
it now contributes only 12 percent because of the emergence of
other sectors (mining, manufacturing and tertiary sectors).  This
development is due to eagerness to modernize the economy by
industrialization through import substitution, which generated
the urbanization process that resulted in the following:
Decreased farm production has steadily depopulated
rural areas by forcing unemployed and underemployed
campesinos to emigrate.
Industrialization by import substitution has produced
an uncoordinated final-goods manufacturing sector that uses
capital-intensive technology and is too dependent on
foreign capital. Nonetheless, this sector did become the
main generator of GDP -- nearly one-fourth, twice the farm
sector's share. However, because of its emphasis on tech-
nology, it did not succeed in generating the employment
hoped for.
Farm emigrants not absorbed by industry joined the
large contingent of the underemployed in unskilled tertiary
sectors.  However, these sectors' share of GDP actually
dropped by a percentage point instead of rising, probably
because of deficiencies in the national accounting system,
which does not value GDP generated outside the formal
sector of the economy.
At the same time, the mining sector nearly doubled its
output as a result of strengthening the "enclaves" that date
back to colonial times and because of using increasingly
capital-intensive technology. This explains why mining
unemployment, which is very small anyway, declined during
the period considered.
Table 1.12 summarizes the growth trends of disaggregated
sectors of GDP for several time periods from 1950 to 1980. The
table shows that GDP rose 3.5 percent a year in but slowed down
substantially in the second half of each decade over the last



Table 1.12 GDP Growth Rate by Sector (1950-82)I*
Years       Total                                                                     Electricity,
GDP   Farming  Fishing  Mining  Manufacturing  Construction  Gas, Water Others*
1950-514     6.1      2.6         6.3       8.8            9.14            114.5            8.3        5.2
1955-59      3.8       1.8       35.6       2.9           14.9            -2.0              8.2        14.5
1960-64      6.6      2.9        25.0       3.8            7.2              6.14          10.1         6.5
1965-69      3.3      3.0         5.14      14.0           3.6            -3.5              7.2        3.6
1970-74    14.6       0.9       -17.3       2.9            6.1            12.3            10.1         6.3
1975-79      1.2      0.6         9.3      11.8          -0.1             -5.0            10.0        0.8
1950-82      3.5      0.1         7.6       5.0           14.5              3.9             8.9        14.0
1950-68      5.3      2.3        17.7       6.8            7.1              3.6             9.0        14.9
1968-79      3.3       1.8       -3.1       14.8           3.14            14.4             8.9        14.1
1963-68    14.14       2.5        7.9       14.7           5.14             0.14            7.8        3.6
1968-73    14.0       2.8       -16.7       2.8           14.6              9.9             8.1        5.3
1973-79      2.7      1.0        10.0       6.6            2.14             0.1             9.5        3.1
1980-82      0.1      0.1        -0.1       0.0            0.0              0.1             0.1        0.1
Nfotes:
*Includes:  trade, transportation, finance, housing and services.
*~1979 figures are estimated.
Source:
National Accounts of Peru 1950-79, National Planning Institute, Prepared by ODR-OSPA.



30
three decades. In addition, the 3.3 percent GDP growth in
1968-79 is below the 3.5 percent long-term growth trend of
1950-82. This slower growth is due to the Peruvian recession
that started in 1974.
The growth cycles and the critical periods are largely
explained by the availability of water, which is a severe
constraint on farm output.  This explains the sharp contraction
in the drought periods of 1955-60, 1968 and starting in 1976.
Under the government's promotion and price support policies,
rice and maize output increased substantially from 1960 to 1984.
Coffee output more than doubled because of good prices in the
world market. In contrast, the wheat policy discouraged
production. Cotton was affected by a combination of factors,
such as low world prices, severe problems with cooperatives
production, and the pink bollworm. Sugar producers cooperatives
are beset with problems resulting from too little or too much
water. The same is true for other crops.
The main traditional farm exports are:  cotton, sugart
coffee, and wool. Cotton and sugar are produced in the Costa,
coffee in the Ceja de Selva, and wool in the Sierra. Except for
coffee, the importance of these products dates from the last
century because their production is closely associated with the
economy's emphasis on foreign trade.
In the first half of the 20th century, both cotton and sugar
production were characterized by heavy concentration of
ownership, foreign capital, and centralized production, causing a
sharp inequality in the distribution of wealth and income in the
rural population. Export-oriented agriculture developed
technology innovations because of the need to meet competition in
the world market. Export agriculture became receptive to
adapting technology and transmitted it to smaller-scale
agriculture for both the export and the domestic markets. For



31
example, the large sugar plantations set up agricultural research
centers, which experimented on new crop varieties and new types
of fertilizer. The stimulus of the foreign market also led to
experimentation with new varieties of cotton.
The predominance of export-oriented agriculture promoted the
spread of capitalist farming. Export agriculture also led to the
predominance of the landowning oligarchy as a dominant sector in
the power structure, but this sector was ousted in the agrarian
reform.
Although the coastal region has natural advantages for these
crops because of the high soil yield that enables it to compete
in the world market, agribusiness and production in general have
in recent decades experienced continuous cost increases, which
have resulted in a lower return from these crops. Along with
this rise in costs, the domestic market expansion in the last two
decades has led to a substantial increase in domestic demand, and
economic policy has placed constraints on prices, so in recent
years domestic prices have maintained below world price.
Along with these traditional export products there is a wide
range of nontraditional products -- cocoa beans, fresh garlic,
tara, asparagus. Annato colorant, sweet maize, raw tobacco,
Brazil nuts and chestnuts, tea, beans, onions, avocados, melons,
leaf cocoa, cochineal and other insects.
In farm imports, there has been an almost constant increase
in food imports, primarily wheat, maize, milk products. and
oilseeds. The main reason for this is the farm export model
followed, which gave priority to export-oriented production and
neglected food production for the domestic market. Thus foods
were mainly produced on marginal land on small farms, with little
technology and no access to credit.



32
However, there is a growing awareness of the need to
stimulate domestic production of foodstuffs, particularly now
when foreign exchange for food imports is increasingly difficult
to obtain because of the world market crisis.
1.2.5 Policy factors that directly or indirectly affect the
market
The food problem is of prime importance for the farm sector,
and its solution involves both production technologies and social
and political factors. This problem requires a concerted effort
by everyone, and government policy must be aimed at solving it.
Attention must be paid to increasing production; changing crop,
income distribution, and consumption patterns; economic and
political decentralization; agribusiness development; reduction
or elimination of the present agribusiness foreign dependence,
and so on.  Consequently, the following aspects, which of course
are not the only ones that must be taken into consideration, are
tied together, or to put it another way, make sense only if they
are approached as components of a comprehensive food policy.
Policy factors that have affected the sector include the
following:
Credit:  Farm credit is mainly provided by the Banco Agrario
del Peru and by lending intermediaries. The law against
mortgaging land makes it impossible to obtain loans from private
banks. The Banco Agrario serves only 14 percent of the farmers,
and most loans are made for three crops:  rice, cotton, and
potatoes. The government's participation in marketing rice and
cotton has caused problems for farmers because of excessive
delays in payment for their products. Currently, the Banco
Agrario does not have enough funds to serve its regular
borrowers. New technologies are expensive, and if financing is
not available when needed, increased production will not be
feasible.
Prices: Price controls on farm products have held down
output in the seventies. In the eighties, changes have been made



33
in this policy, and for commodities partly produced by the
government (rice and maize), the prices set have favored farmers.
Imports: The government has maintained a mistaken policy of
subsidizing imported foods (wheats maize* soybeans, milk), which
in addition to encouraging their consumption because of the lower
price has kept domestic producers from getting realistic prices.
Inputs: The protection given to domestic industry has been
prejudicial to agriculture. Farmers have had to pay higher
prices for machinery, equipment, motors, pumps, fertilizers,
etc., than they would have if they could have imported those
inputs.
Marketing:  Government market intervention has injured
cotton, wheat and maize farmers, but has benefited rice growers.
The latter have market security and priority credit support,
which has encouraged them to increase the area sown.
Lan6 Ownership:  The compulsory establishment of farmers
associations without providing advice or training to their
leaders has caused a deterioration in the technical level and
morale of those institutions' members. An accelerated land
distribution program is now under way.
Exchange Policy: Maintenance of an unrealistic exchange
rate hns been prejudicial to exports of farm products and has
encouraged imports of foodstuffs that compete unfairly with
domestic production.
Bringing New Land into Production:  Excessive priority has
been assigned to irrigation projects in the Costa and to high-
ways in the Selva to expand the agricultural frontier, but
investments and activities to increase productivity have been
neglected. In 1980. greater support and priority for research
and extension work was initiated, but this effort is still
obviously insufficient.
Soil and Water Conservation:  There is no soil and water
conservation policy. Soil salinization in the Costa and erosion
in the Sierra and the Selva are increasing.






35
2 National Agricultural Research System
The National Farm Research, Extension and Education System
was given a high priority in the late sixties, but deteriorated
in the seventies, losing much of its staff and budget.  Research
activities over the last two decades were mainly designed to meet
the requirements of the Costa. The main crops investigated were
sugarcane, cotton, rice, maize, beans, potatoes and sweet
potatoes. The private sector had an excellent research infra-
structure for sugarcane and cotton. Livestock research was
neglected, with the main work i,n this area being done in uni-
versities (San Marcos-Ivita and La Molina).
In the seventies, the Peruvian Government assigned top
priority to agrarian reform, so professional personnel
(particularly extension agents) and budget resources were
allocated to this work and research support was cut substantial-
ly. In this period, research on sugarcane and cotton was halted,
and the Experimental Stations of the Farmers Associations were
placed under the new agrarian organizations. The private
research system was virtually dismantled, and the private sector
no longer assigned priority to research.
With the establishment of the Agricultural Promotion and
Research Institution (INIPA) in 1981. efforts were made to use
allocated resources more efficiently by concentrating on a small
number of products. Five national priority programs were
established: potatoes, maize, rice, grain (wheat, barley and
oats) and grain legumes. The National Livestock Program was
started in 1985.
The INIPA is directed by a chief and two executive
directors, one for agricultural research and one for agricultural
promotion. It has control, advisory, support and line sections
(Department of Agricultural Research, Department of Agricultural
Promotion and National Farm Machinery Service), and decentralized



36
line agencies. The Centers for Agricultural Research and
Promotion (CIPA) were established as the centralized line
agencies responsible for conducting research, experimentations
extension, promotion and rural marketing work in the areas of
their jurisdiction.
In connection with the 18 CIPAs, there are 5 regional
research centers, 53 experimental stations and substationst
36 promotion regions, 227 extension agencies, 1,115 extension
sectors, and 11 farm machinery centers and laboratories.  The
18 CIPAs integrate research and extension work and cover the
territory of the country's 24 departments.
The CIPAs and the Regional Centers for Agricultural Research
(CRIA) work on a wide variety of crops, depending on the
characteristics of the farms under their jurisdiction, but
naturally their activities are concentrated in five national
programs for individual products:  potatoes, rice, grain legumes,
maize and small grain (wheat, barley and oats).  The five
national programs have main offices in the five CIPAs where the
program crop predominates and where the five CRIAs at the five
main experimental stations operate.  This organization has
substantially facilitated liaison with the international research
centers, particularly CIP, CIAT and CIMMYT.
The regional laboratories for centralized services are
located in La Molina, Yurimaguas and Chiclayo, and the remaining
eight in Cusco, Huaraz, Arequipa, Cajamarca, Tarapoto, Tingo
Maria, Huancayo and Puno.
When INIPA started up in 1981, the new director instituted
extension training and visits throughout the country. This
methodology was not adapted to the diverse conditions of Peruvian
agriculture, and duplication of efforts in the extension system
occurred in the field.



37
Local technicians and directors rejected the method because
it was difficult to apply in the way the agency was trying to
impose it. Problems with infrastructure, transportation
facilities and movements of technicians and farmers, and diverse
geographic and cultural characteristics of farmers were some of
the reasons the method was inoperative throughout most of the
country. In addition, lack of appropriate technology for
transfer to the farmers resulted in emphasizing routine and form
instead of giving information to farmers.
Private research is slowly recovering. A Foundation for the
Promotion of Cotton Raising has been set up, which directs and
coordinates virtually all cotton research. Experimental stations
such as the one at the ICA Farmers' Association are beginning to
operate again. To conduct its activities, the INIPA needs to
coordinate them with various institutions.  Since there is no
national research council, the INIPA's planning and resource
allocation has been organized quite well, but its relations with
other institutions are rather bureaucratic and unsatisfactory.
Coordination with public and private agencies is achieved
with specialized working committees and commissions.  Also, the
INIPA is represented on the boards of stockholders or directors
of some companies. However, such representation is in a personal
not an institutional capacity, according to the corporate
charters or bylaws. The chief of the INIPA is currently a member
of the board of directors of the Banco Agraria del Peru and the
Wholesale Markets Corporation (EMMSA).
The proliferation of commissions is a result of the
deficient organization and the poor direction of the Ministry of
Agriculture. At the central level, the directors are not con-
vened by the Minister or Vice Minister to discuss the activities
of their departments, institutes or public companies.  This lack
of coordination is reflected at the regional level, where the
institutions of the agricultural sector act without coordination.



38
Data in recent years show a substantial increase in the
operating the capital budget of the INIPA. In 1982, out of a
total S/.7,367 million operating budget, S/.1,567 million was
earmarked for agricultural research, and S/.3,467 million for
agricultural promotion. In 1983, these figures increased to
S/.13,516 million; S/.4,032 million; and S/.6,402 million,
respectively. In 1984, the total INIPA budget was S/.59,177
million, 8 times higher than in 1982, and more than triple the
1983 figure.  The capital budget performance was similar:  it
rose from S/.4,970 million in 1982 to S/.20,711 million in 1983
and to S/.30,723 million in 1984.
Changes in the organization of the Ministry of Agriculture
make it virtually impossible to determine the details of budget
and staff changes. Up to 1976, the Ministry of Agriculture
covered all farm products, but starting that year, it was split
into the Ministry of Agriculture and the Ministry of Food. Agri-
cultural research was concentrated mainly in the Ministry of
Food, but, because some products were regarded as non-food, some
research activities and professional staff remained in the
Ministry of Agriculture. This division, which was considered
absurd by some technical staff members, was due to political
reasons, and, because of the confusion generated, the two
ministries were recombined into one.
In 1970, there were 174 professional researchers in the
Ministry of Agriculture, and in 1976, there were 223 in the
Ministry of Food. In 1978, there were 253 professional research-
ers, of whom only 6 had a PhD and 26 had a master's degree.  In
1983, the 18 CIPAs had 221 professional agricultural researchers
and 29 fisheries researchers.
The Comprehensive Research* Extension and Education Program
was drawn up for the entire country with the direct participation
of consultants from the North Carolina State University. The
assistance of these consultants facilitated integration of USAID



39
funds with Inter-American Development Bank (IDB) and World Bank
funds.
At the outset, a 1980 agreement between USAID and the
Peruvian Government provided for $2 million in grants, $9 million
in loans and $4 million in matching funds, for a total of
$15 million. By the end of 1981, the IDB, through its sectoral
agricultural program, made a $55 million loan, of which
$26 million was earmarked for the INIPA.  In September 1982. the
World Bank extended a $40 million loan with $40 million in
Peruvian Government matching funds.  All of the loans were
designed to support and conduct the Research, Extension and Edu-
cation Program. The participation of consultants from North
Carolina State University made it possible to integrate all funds
into a single package of programs. which in addition to the five
product programs, included two regional programs (Sierra and
Selva). one agricultural program and one laboratory services
program.
Table 2.1 Financial Support to the INIPA for
Developing the IEE System in Peru
Agency             Loan     Grant    Matching Funds         Total
USAID                9        2             4                  15
WB                  40         -           40                  80
IDB                 2_ --
Total         75         2            44                121



40
For better distribution and easy control of resource use,
the agencies provided funds to the CIPAs. The World Bank
assigned funds to the five CIPAs in the north, the Agency for
International Development to the five in the central region, and
the Inter-American Development Bank to the remaining ones.  In
only a few cases did two agencies provide funds to the same CIPA.
The INIPA Comprehensive Program for Research, Extension and
Education defines the functions and integration of inter-American
agricultural research centers supporting the Research, Extension
and Education System.
Long-term consultants of nrternational centers are appointed
as co-leaders of the national programis for individual products
and serve as institutional liaison. Through the co-leaders,
these centers provide:
(1) Genetic material for selection of varieties (they conduct
genetic improvement and crossbreeding work).
(2) Training for Peruvian scientists at the headquarters of
the centers, and short-term technical assistance for
training in Peru.
In addition, the co-leader assists the Peruvian leader of
the National Product Programs in trials of varieties and in
extension services.
Thus, the international centers are part of the national
system, integrating their work with the five national programs
for individual products and North Carolina State University.
Two other USAID projects -- agricultural policy and insti-
tutional development (PADI) and the Plan Meris -- supplement the
Research, Extension and Education Program.
To date, the main problems have been financine, organi-
zation, administration, low salaries, delayed payment of matching



41
funds, technology dissemination, major changes in directives* and
the lack of a national research management unit or a national
research unit. In addition, political influence in the INIPA has
been prejudicial to staff placement and performance and has
caused work stoppages at the national level. One of these work
stoppages lasted 52 days.
In addition, the International Monetary Fund's austerity
requirements have banned staff appointments, and since only
personnel with appointments can obtain scholarships from the
Peruvian Government, those hired without appointments have little
job security.
One deficiency of the system is the lack of an adequate
library to meet researchers' needs. This is partly due to the
fact that research findings are not regarded as a phase of the
research process.






43
3 Impact of International Agricultural Research Centers
on the National Agricultural Research System
The National Agricultural Research System encountered many
obstacles in the seventies. Changes in the land tenure system
affected both public and private agricultural research. Exten-
sion services were replaced by agrarian reform work.  Research
budgets were cut, and many scientists and technicians changed
jobs or emigrated.
One favorable agrarian reform feature, which was not fully
utilized, was land grants for the Ministry of Agriculture Experi-
mental Stations. However, only one land grant was actually made
-- to the station in Vista Florida, which now has the best
facilities and land endowment in the country.  The farmers,
associations were virtually eliminated, and their experimental
stations were expropriated.
In 1980, the research and extension services were merged,
and the INIPA National Institute for Agrarian Research and Pro-
motion was established. In 1982, the national programs for
individual products were started for the following: potatoes,
maize, wheat, grain legumes and rice.  These products have been
assigned priority by Peru and are the same as those of the three
international research centers in Latin America:  CIAT, CIMMYT
and CIP.
The farm research system in Peru provides for coordination
and support between the five national programs for individual
products. Each program has a national leader located in the
major experimental station for the product involved, and a co-
leader assigned by the international center for each product.
The clear assignment of priority to these five products and
the relationship established with the international centers is
enabling Peru to train scientific staff rapidly and make use of



44
the genetic findings of the international centers. This is
saving Peru many years of scientific work and enabling it to make
up for the ground lost in the seventies.
Obviously, the priority assigned to these activities has
been reflected in personnel training and the production of
improved seeds adaptable to the various characteristics of the
regions in Peru.  Due primarily to the work of the INIPA, the
constant efforts of the National Agrarian University, and the
support of international research centers, substantial improve-
ments have now been made in producing seed varieties with
resistance or tolerance to adverse factors and with high produc-
tivity.
These first results have brought with them new problems and
concerns among technicians, farmers and scientists.  Some
products require the establishment of a system for producing
and marketing seeds; studies of ways to reduce transport costs
and develop agribusiness alternatives; identification and promo-
tion of markets for products that provide better income for
farmers, such as yellow potatoes, red potatoes and other tubers,
or Urubamba white maize; and the development of an information
service on markets and prices and on sowing and harvests.
The international research centers should rank their
activities by priority and focus on those that have comparative
advantage. However, they should also recognize that with their
worldwide scope they are in a better position to provide support
rather than scientific research on varieties and research tech-
niques for each crop.
If international centers do not support these activities, at
least their reports should expand on and give priority to factors
limiting farmers' output and income.  There is no point in a
country having good rice and maize varieties if it raises rice on



45
salinated soil and maize on erodabe slopes, or if it increases
production without being able to sell the output, and so on.
International centers cannot study and solve all production.
marketing and consumption problems for each products but at least
they can identify the minimal requirements or the main factors
affecting farmers' production and income. If they do not do so,
they may be devoting much scientific and economic resources to
projects or research that are not really of priority for the
country involved.
However, some research findings lead or may lead to results
of greater scope than expected. For example. potato researchers
and producers feel that a tissue culture laboratory for producing
plants in vitro and using them to accelerate the production of
virus- and disease-free seed would eliminate farmers' dependence
on the central region of the country for seed. In addition.
there are high expectations for the future potential of plant
seed.
While researchers realize the value of genetic material
resistant to Phytophtora Infestans, frost and nematodes, and of
accelerated methods for producing seed potatoes, some feel that
marketing deficiencies, limited processing. and consumption
habits are major constraints on expanding potato production.
They believe the National Potato Program should study, with CIP
support, the possibilities of pureed yellow potatoes. pureed
white potatoes (as storage alternatives), starch, dried potatoes.
potato starch (chuno). etc., and include sweet potatoes and
ulluco in its research projects. Also, preparation of blended
foods should be continued.
It is a cause for concern that little importance has been
attached in Peru to research on water and soil management.
despite the fact that all cropland in the Costa is under irri-



46
gation and that the entire Sierra and much of the Selva show
substantial erosion.
Development of high-yield rice varieties has made it
possible to increase production sharply, but over-irrigation and
the use of soils unsuited to this crop are helping to speed up
soil salinization in the northern Costa. Raising maize on Selva
slopes that are suitable only for forests is causing erosion that
has many harmful consequences for the region.
The concentration by international centers on genetic
research without high-level international scientists informing
their national counterparts about the resulting damage to
agriculture and the economy gives the impression that they are
working with blinders on or that they are afraid to become
involved with the politics of the authorities of the moment.
However, their responsibility is to the country's future and not
to temporary authorities. The international centers' experts
cannot close their eyes, remain silent, and fail to educate their
colleagues about the seriousness of these problems through
national and international training and seminars. Desired plant
variety characteristics can be achieved in a few years, but the
soils will not recover for thousands of years or at a cost far
higher than the local economy could afford.
Some scientists request CIMMYT support for studies on
barley. However, the main responsibility for such work falls to
the Ministry of Agriculture, which has not assigned barley
priority despite its large crop area and the fact that it is a
staple food in the Sierra. The National Agrarian University has
obtained excellent results in its research and has received
direct assistance from CIMMYT through contributions of germplasm
and the assignment of scientists to its headquarters.
The Peruvian Experimental Stations have been working con-
tinuously on producing new disease-resistant and high-yield rice



47
varieties. The main contribution of the IRRI and CIAT centers
has been the provision of germplasm.
In Arequipa, CIP has assisted in multiplying the new early
potato (90 days) with an average yield of 25 t/ha, which could be
released as a new variety within a year.
An outstanding variety of hard yellow maize (Marginal 28
Flor Tropical). has been produced by combining three experimental
varieties from a group of 28 provided by CIMMYT. The variety is
highly adaptable and offers an alternative for farmers in
tropical areas. Choclero 101 was developed by combining 189
materials, mainly from the Cacahuazintle Group of Mexico, with
Peruvian germplasm. Canchero 301 was developed from over 200
materials provided by Mexico, Ecuador, Colombia and Peru. This
variety has a short growing period and is adaptable to widely
varying conditions in the Peruvian Sierra. A yield of up to
8.5 t/ha can be achieved with good crop management. Morocho 501
will produce up to 9 t/ha.
The National Cereal Program, with the support of CIMMYT, has
achieved significant results with wheat and barley in a
relatively short time. The ease with which the program has been
able to obtain wheat strains from CIMMYT or countries in the net-
work of CIMMYT collaborators has made it possible to achieve
results quickly. saving several years of genetic work. There are
now wheat varieties for the Costa and for the Sierra, with yields
from 3,000 to 6,000 kg/ha. Wheat yields have averaged around
1,000 kg/ha in the past.
In addition to the potential for increasing wheat production
in the traditional wheat growing areas, the productivity, disease
resistance and shorter growing period of improved strains makes
it possible to rotate wheat with other crops. Thus, in some rice
areas like Valle de Majes, some farmers have gotten good results
planting winter wheat (Cristina, Participacion) after rice. The



48
wheat can be sown in June and harvested in November, while the
rice is planted in November or December and harvested in May. In
this area, the ideal rotation would be rice with beans
(frijoles), but the shortage of labor hampers the campaign to
promote beans.  The same tractor and combine used with rice can
be used for wheat, thus helping to cut equipment costs per kilo
of output. A similar result could be achieved in other rice
areas, as well as in cotton areas that recently have been
infested with the pink bollworm. In addition, wheat has the
advantage of low water consumption (4,000 cubic meters per ha).
Now that suitable varieties are available, the main problem
in expanding wheat production is political:  prices and market
security. The prices set by the government have always been
below world prices, and farmers have never been sure that their
output will be purchased by the milling industry.  Moreover, they
have not had threshing equipment, nor assistance in producing,
threshing and delivering the product to market. Statistical data
have shown that millers in Lima -- several of them transnational
corporations -- have taken measures to oppose and impede the
development of the milling industry in the Peruvian Sierra,
specifically in the Department of Ayacucho.
Because of the availability of suitable seeds, if the
government decides to produce wheat, output could be increased
substantially in a few years. One of the less spectacular
results of the National Cereal Program, although of great
importance for production, has been the separation of Ollanta and
Cahuide seeds. These varieties have been raised in the country
for 15 to 16 years, but the seeds became so mixed that only
30 percent was actually the strain indicated.  The national
program has achieved complete seed purity for these varieties.
Work has also begun on triticale, with ICARDA providing
genetic material.  This cereal adapts well to dry areas.  CIAT
began supporting grain legumes in 1976, but its work was not put



49
to use in Peru until 1982. Much more basic seed has been
produced in a short time than can be distributed, owing to the
lack of a public or private distribution system.
With the ITA-1548 variety, the growing period of lima beans
(Phaseolus vulgaris) has been reduced from 9 to 5 months, with a
yield of 4 tons. ICRISAT has provided chickpea seeds, but
studies are in a preliminary phase. Progress has also been made
with green beans studies, but on a limited scale. Strains
resistant to mosaic disease have been developed, but the beans
are still too small (CC-7332-4-2-1-3, CM and CC-7332-4-2-3-3-M).
More work is needed in seed production: seed units should be set
up by the programs and more research is required on bean storage
and conservation.
Most; of the directors of the experimental stations consider
that basing research on agroecology zones is valuable.  Some
directors in Lima and leaders of national programs recognize the
support provided by international centers in obtaining project
financing from international or bilateral agencies.  For example,
CIP has arranged a cooperative program with the INIPA, CIP and
the Swiss Technical Cooperation Program for developing a basic
seed production system. Previous attempts to do this in Peru
have failed, but there are two reasons for hoping that this
effort will succeed: the knowledge CIP has gained in its eco-
nomic studies on the seed systems in the Andean area and the
latest techniques for rapid reproduction of disease-free
material.
Research on true potato seeds is important for Peru because
of the risk that in a drought (which is frequent in several
regions of the Sierra), there will be no seed potatoes to plant
the following year, or if there are any, they will be very expen-
sive. In addition, the high cost of transporting seed potatoes,
and the assurance provided by seed certification makes the use of
true seeds more advantageous. The technique for storing potato



50
seeds in diffuse light is being adopted by Peruvian farmers and
by the National Seed Program.
Some scientists are calling for greater research-methods
dissemination and training. They feel that significant research
changes should be made in the system for technology production
and evaluation by agricultural units.
Although the existence of an international CIP network is
mentioned, there is more information about a national network
under the leadership of the National Potato Program, especially
in maintaining genetic material and in coordinating trials, such
as the Regional trials for selecting new clones with the UNA,
accelerated multiplication of native potato seed with the Univer-
sity of Cuzco and elimination of virus, with the University of
Cajamarca, etc. The National Potato Program laid the groundwork
for training in 1982 and expanded it at all levels, using various
mechanisms: graduate theses, research assistance, 15 Master's
degrees with theses aimed at solving problems posed by CIP (up to
3 years ago there had been only two Master's degrees), 30 short-
term scholarships at CIP, and CIP staff giving courses in the
regions.  There are now 11 staff members with Master's degrees
working in Huancayo, the national program headquarters. However,
low salaries make the employment situation unstable.
Around 200 Peruvian experts have attended courses sponsored
by CIP. Training is provided at the central office or in the
regions in various areas of research and extension work. CIP has
assisted Master's degree candidates in research according to
national priorities, with the approval of national leaders. To
date, 116 have completed their graduate studies, with CIP super-
vision and partial financing. Forty-two of these degrees have
been in crossbreeding and genetics, 22 in entomology and
nematology, 21 in pathology, 15 in physiology, 12 in social
sciences and 4 in taxonomy. International courses are given
annually at the National Agrarian University with logistic



51
support from CIP. CIMMYT gives 6-month training courses twice a
year (May and December). In the last 6 years, an average of five
officials per year have attended.
There is a definite need for a suitable channel of infor-
mation on the latest technology. Pamphlets, bulletins and publi-
cations on research findings are not easily obtained. The
centers publish their activities in annual reports that may be up
to 2 years late. Because of poor national distribution,
materials do not reach the CIPAs. Although research findings
have little value if they are not published, few written research
reports have been issued. An incentive mechanism might help to
increase publication.






53
4 Impact of Research on Farm Production
Since agricultural research procedures vary with the crop,
each product will be discussed separately.
4.1 Rice
Important scientific and technological findings in experi-
mental fields and in the laboratories are often not properly
transmitted and disseminated to the masses of farmers and
campesinos and therefore do not have a tangible effect on
improving the quantity, quality, cost or other variables of pro-
duction. This does not seem to be true of rice, but the issue
should be examined.
Several factors determine the amount of rice production each
year, the most important of which are the following:
(1) Irrigation water on the Costa and the rains in the Selva:
the amount of water or intensity of rain, the dates of
delivery and withdrawal, and the distribution over time.
(2) The weather -- early frost with lows under 150C damages
the grain, producing empty seed.
(3) The greater or lesser incidence of pathogenic agents that
attack new rice, especially Pyricularia and Helmintho-
sporium fungi, as well as scale insects (quereza), the cinch
bug (chinche sogata) and the white leaf virus (hoja blanca).
(4)  The government's purchase price for unhulled rice;
obviously, the price set by a state monopoly can encourage
or discourage production.
(5) Competitiveness with other crops.
(6) Timely availability of selected seed, fertilizer and other
inputs.
(7) Timely availability of adequate farm credit.
(8) Availability of support services: machinery, threshers.
transportation.



54
(9) Availability of processing plants (grain mills) and storage
facilities. In some casess installation of these services
in new areas has expanded the rice growing areas, especially
in the Selva.
Consequently, past production swings may be due largely to
the factors indicated. but they will also be affected by techno-
logy advances being made by researchers and experimenters and
transferred to farmers through extension and demonstration
services.
4.1.1  International cooperation in rice
Two international centers -- CIAT and IRRI -- provide
technical and academic support for rice research and promotion.
IRRI's participation consists mainly of providing genetic
material. Many of the varieties introduced in the country have
varying proportions of Philippine or Asian progeny furnished by
IRRI, while others have merely been introduced and adapted, as
shown in the chronology of varietal improvement.  In addition,
visits to IRRI facilities and fields by Peruvian genetic experts
make an important contribution.
CIAT participation is more dynamic. In addition to the ex-
change of germplasm and the provision of genetic material, it
consists of active training. coordination and advisory services
for programs.   Thus, Peruvian professionals continuously attend
regular and short courses, seminars, coordinating meetings and
other events at CIAT facilities in Cali, and CIAT facilitates
visits to similar programs in other countries to promote the
exchange of experience.
These activities are developing an international network of
specialized assistance enabling the professional personnel of a
country that is outstanding in a particular discipline or tech-
nology to provide specialized expertise to other countries that
have problems in that field. In addition, CIAT supports and



55
finances local or regional courses to train field personnel at
various levels on specific subjects.
4.1.2 Geographic distribution of rice production
The traditional rice areas have always been the coastal
valley of the Tumbes, Chira, Piura, La Leche, Chancay, Sana,
Jequetepeque, Chicama, Moche and Santa rivers in the north and
the Camana, Majes, Ocona and Tambo rivers in the south.  Added to
these are the traditional rice areas in the Low Selva of Iquitos,
Yurimaguas and Pucallpa, in both the higher areas and the river
mud flats, where rudimentary technology and low yields prevail.
When colonization of Jaen and Bagua began in 1950, the High Selva
areas were increasingly brought into rice production, using
improved technologies similar to those of the Costa.
When the north-south highway connecting with the Bagua-Olmos
road was opened in the Department of San Martin, extensive areas
in the region were planted in rice, especially in 1979 and 1980,
which substantially increased the output of this area. The rate
of increase is still continuing, with new areas in Rioja, Nueva
Cajamarca, el Biabo, el Sisa and other places being brought into
production.
Colonists in these new areas have largely been farmers from
the rice areas in the northern Costa and Jaen and Bagua, who
introduced technology that raised the traditionally low yields of
the region. The percentage breakdown of the country's rice
production in 1983 is shown in Table 4.1.  Table 4.2 shows the
percentage share by department, indicating the valleys and rice
areas included in each case. In recent years, increased rice
production has been mainly due to the higher yields in the Costa
and the expanded rice areas in the Selva.
4.1.3 Objectives of improved rice technology
Improved rice technology is designed to increase produc-
tivity and overcome the problems. defects or sensitivities of the



56
plant. Thus, the main criteria considered in genetic improvement
of rice include: higher potential productivity, high response to
fertilizer, better grain quality (size, form, etc.), better
milling performance (milling yield, percentage of breakage,
appearance of end product), lower ratio of defective grain, and
early maturation. Other considerations are: short, stiff straw,
resistance to lodging, greater tillering, larger heads,
resistance to fungus diseases, particularly brown spot (mancha
carmelita -- Helminthosporium) and blast disease (Pyricularia),
resistance to early low temperatures, resistance to the virus
disease white leaf (hoja blanca) and its vector the chinch bug
(chinche sogata), and resistance to scale insects (Orthezia).
Table 4.1 Peruvian Rice Production by Region
Area Sown Volume of Production
(percent)         (percent)
Northern Costa                    43.53              50.37
Southern Costa                     5.53              10.30
Northern High Selva               31.12              29.08
South and Central High Selva       2.19               0.83
Low Selva                                            -2.42
Country Total              100.00              100.00



57
Table 4.2 Percentage Share of Rice Production
by Department and Region
Area       Volume
(percent)   (percent)
Northern Costa:
Tumbes (Tumbes)                                  0.66         0.71
Piura (Chira, Piura, San Lorenzo)                8.99         9.59
Lambayeque (Motupe, Chancay, La Leche, Saffa) 19.03          20.62
La Libertad (Jequetepeque, Chicama, Moche)   13.25           16.96
Ancash (Santa)                                   1.60         2.47
Total Northern Costa:                      43.53        50.35
Southern Costa:
Arequipa (Camana, Majes, Ocofta, Tambo)          5.53        10.30
Total Southern Costa:                       5.53        10.30
Northern High Selya:
Cajamarca (Jaen, San Ignacio)                    7.76         9.33
Amazonas (Bagua Chica, Bagua)                    7.82         8.64
San Martin (Tarapoto, Rioja, Nueva Cajamarca)15.54           11.11
Total Northern High Selva:                 31.12        29.08
Central-and.South High Selva:
Huanuco (Puerto Inca, Honoria, Tingo Maria)   0.32            0.15
Pasco (Pozuzo, Oxapampa, Puerto Bermudez)        0.24         0.08
Junin (Satipo, Chanchamayo)                      0.54         0.19
Ayacucho (San Francisco)                         0.36         0.13
Cuzco (Quillabamba, Kosnipata)                   0.64         0.25
Puno (Sandia, Carabaya)                          0.09         0.03
Total Central and South High Selva:         2.19         0.83
LDW-SelYa:
Loreto (Iquitos, Nauta, Pebas Caballococho,
Requena, Yurimaguas, Lagunas)              14.01         7.62
Ucayali (Pucallpa, Contamana, Atalaya)           2.47         1.40
Madre de Dios (Puerto Maldonado, Iberia)         1.15         0.40
Total Low Selva:                           17.63         9.42
Total General                                   100.00       99.98



58
Table 4.3  Area and Production Changes, 1963-83
1963          1983
A_,a
Costa                                    80.4           43.3
Selva                                    19.6           5k.7
100.0         100.0
Production Volume
Costa                                    76.6           60.7
Selva                                    23.4           32.3
100.0         100.0
Costa                                   100.0          100.0
Selva                                    72.0           77.0
*Average Costa yield in 1963   100.
In additiont the criteria for introducing new cultivation
techniques include:  improved sowing methods (direct or with
seedbeds and transplants; density. timing, etc.). fertilization
(adequate formulation for each variety and zone, dosage and
metering per ha, application methods and timing), irrigation
(irrigation technique. volume, frequency, allocations optimizing
water use under drought conditions). weed control (by weeding,
flooding, herbicides, control procedures and timing). mechani-
zation of cultural and harvest operations (optimal use of
threshers and combines), dryings storage and grain processing
techniques. and crop rotation techniques (optimal use of soils in
the period between two crop years).



59
4.1.4 Improved varieties
The rice varieties traditionally cultivated in Peru up to
the thirties were:
Late:           Chino Blanco, Chino Colorado and Java
Barba Azul
Mid-season:    Jamaica or Tambo, Honduras, Carolino
Dorado, Java Barba Blanca, Gigante and
Venezolano
Early:         Vialone, Blue Rose, Espanol
Chino Colorado was the most winter hardy and produced the
highest yields per hectare, but it was inferior in milling per-
formance and in final appearance, so it brought the lowest free-
market price at that time.  The other varieties were of excellent
quality and appearance. but with low farm yields.
The Lambayeque Agricultural Station was established in 1927
and began a long-range program of improving rice growing
technology and genetics. This work is still continuing and has
made substantial progress in increasing rice production. The
Agricultural Station imported foreign seeds, and after trials,
released to producers those that responded best, such as:
"Fortuna," an excellent quality late variety.
resistant to Helminthosporium and Pyriculariat but
with low yields per ha (averaging only 26 "faenas,"
or 3.560 kg).
"Carolina Blanco," a midseason variety. with better
yields but sensitive to attack from the above mentioned
fungi.
"LadyWrizght." an early variety that was not widely
accepted by farmers.
In 1938, the Lambayeque Station introduced several varieties
from India, and after rigorous selection and adaptations obtained



60
an important strain (Berhampur No. 3).  It was promising, had
excellent yields, quality and resistance and was released to the
commercial market in 1944 under the name "Minagra No. 1."  This
variety was disseminated rapidly in all rice valleys and for
18 years was the main crop produced.
It was also in the late thirties that traditional broadcast
sowing was replaced by the seedbed and transplant method, which
increased yields considerably. Cost also rose, but not as much.
In 1941, the Lambayeque Station selected an important
variety of AK-28-8 from Kuala Lumpur, Malaysia, which was
released in 1945 under the name "BirMania."  It was a large-
grained, vitreous, high-yield variety with good milling quality,
which was better adapted to the headlands of the northern rice
valleys. Its use declined when it became susceptible to the
Pyricularia and Helminthosporium fungi, as well as to lodging and
shattering.
Continuing to select and test oriental varieties, the
station obtained a good strain from Kuala Lumpur in 1942, which
was released in 1945 under the name "Radin-China." This was a
smaller-grained variety that was better adapted to hot areas like
Tumbes, Chira, Alto Piura and Jaen-Bagua.  Most of the area
recently opened up to colonizatin in Jaen and Bagua was planted
with the Minagra and Radin-China varieties.
In 1942, the two new varieties were introduced by private
individuals:   "ELJASILo3s," brought from Spain by a Chiclayo
farmer (Juan Pardo Miguel) and "Siam. Gardens" brought from
Thailand by a Pacasmayo farmer (Jorge Tay).  These varieties
became widely disseminated in their respective areas.
In 1945, the station obtained two important selections from
the many strains resulting from crossing Minagra with Birmania,
and released them in 1952 and 1953. respectivelyt under the names



61
of "Minakir_ No..Jt" and "Minabir No-. 2.1 These varieties achieve
yields of 5,200 and 5,500 kg/ha, and adapt to all the valleys
between Tumbes and Jequetepeque.  However, they are sensitive to
low temperatures, which occur after late April in some early
winters. They are also susceptible to attack from the previously
mentioned fungi. Both Minabir strains made major contributions
to production for over 14 years, gradually replacing Minagra as
the variety declined.
In 1953, strain 40 of the cross between Minabir No. 1 with
Siam Garden became an important variety. It was sown on a com-
mercial scale beginning in 1960, under the name "EAL60" and
yielded some 6,000 kg/ha. This variety was grown on large areas
of the northern valleys and the High Selva for 4 years, but then
fell into disuse when it became late maturing and susceptible to
fungi.
In 1947, the station released two early varieties called
"Lambayeque No. 1" and "Lambaveue, No. 2," from Australian
strains. The first (No. 1) is large grained, with good
appearance and good milling quality, but low yield.  The other
(No. 2) is short grained, with an excess of smutted grain and is
fragile in milling. Both varieties gained acceptance in the
Camana and Tambo valley, where they seemed to perform well,
remaining in use for over 20 years until the arrival of the IRs
in 1968.
In 1961, the station released to farmers the "Mochica"
variety, a strain selected from the cross of Fortuna and Minagra.
This variety has characteristics similar to Minabir No. 2, but
with higher yields -- on the order of 7,000 kg/ha. It has excel-
lent milling performance and end-product appearance, but has
become susceptible to the Pyricularia fungus, although it is
resistant to the chinch bug (chinche sogata), the vector of the
white leaf virus (hoja blanca).



62
In 1962, the Lambayeque Station released the "Chiclayo
1.._I" variety, selected from progeny of the Thailand strain
"Puang-Ngern." This is an early variety, resistant to lodging
and fungi, but with low yield. It is used as a cover crop in
years of late flooding.
In 1966/67, the station introduced a number of seeds from
strains selected by the Philippine IRRI Institute, known
generically as the IR rices, which are early, semidwarfs (short
strawed) and have a high potential yield, with strong nitrogen
fertilizer response. These are the rices that became part of the
green revolution. IR yields of 12 to 13 t/ha are reported --
over twice the yields of the best traditional varieties.
However, the IRs are short-grained, somewhat glutinous, and
fragile in milling, with high rates of smutted grain and a poor
end-product appearance. The 'IR=8" variety of this group has
been disseminated in the Camana, Ocono and Tambo valleys.
replacing the old "Lambayeque No. 2," which has similar
characteristics.
In 1968, the farmers of Piura introduced several long-
grained varieties from Suriname (SML, Apura, Alupi and others),
but these were lost when the agrarian reform occurred. In 1969,
the station introduced an IR-8 derived strain selected by IRRI,
which was released to farmers in 1972 under the name "Naylamp."
This is a semidwarf, semi-late variety, susceptible to
Pyricularia, but resistant to the chinch bug, with strong
fertilizer response, yields of 9 to 11 t/ha, high milling yield
(71 percent) and low rates of broken grain. The grain is
translucent and large, with excellent appearance. It has been
widely disseminated throughout the rice areas of the Costa and
the High Selva.
In 1972, the "Chancay" variety was introduced, a sister
variety to the Naylamp, because it comes from a parallel IR-8
derived strain, which came from IRRI. It has characteristics



63
similar to that variety and differs from it in being early
maturing.
The "ID±itn variety, developed in 1973 from strains of the
triple cross (IR8/Minaya/Fortuna) was released in 1976.  It is
also a semidwarf, semi-late, long-grain, chinch bug resistant
rice with good milling performance, high fertilizer response.
and yields from 9 to 12 t/ha.
Starting in 1980, Colombian strains produced by CIAT began
to be introduced, especially the fIC series, which has been
disseminated in several northern valleys and Selva areas. Its
performance is variable, and it is still under observation.
In 1977, a Camana farmer introduced a strain still under
test, the BG-909 which he disseminated under the name "Pampata
From it, new selections were made at the experimental station,
and a strain was obtained that had a 15 percent higher yield than
the IR-8. with better milling performance. It was widely
disseminated in the Camana, Majes and Ocona valleys.
In 1971, the Tetep variety was introduced through IRRI from
Vietnam. Its main characteristic is resistance to attack from
the Pyricularia oryzae fungus, which causes blast disease.
Starting that year, numerous studies were made on backcrossing
existing commercial varieties with strains derived from the
Tetep. The most promising of the resulting strains were
selected and stabilized, producing the new varieties Viflor,
Tallan and Huarangopampa.
These varieties, which have high productivity, better
milling yields better resistance to blast and the chinch bug,
early development and resistance to lodging, have been in com-
mercial cultivation since 1983.  Recommended for both direct
planting and transplants are the Tallan variety for the rice
areas of Tumbes and Piura, the Viflor for Lambayeque, La Libertad



64
and Santa, and the Huarangopampa variety for the irrigated rice
areas in the High and Low Selva.
The foregoing summarizes the major attainments in genetic
improvement of rice. Obviously. each strain released for com-
mercial production involved innumerable crosses, trials, rejects,
selections, adaptations, etc. This required continuous effort by
researchers and their assistants in the laboratories and experi-
mental fields.
4.1.5  Improved cultivation technology
Along with improving the genetic varieties and strains,
better farming techniques have also been developed, particularly
those suitable for the individual variety in both the traditional
and the new rice growing areas. The first trials to replace the
traditional broadcast sowing with the seedbed and transplant
method were conducted at Lambayeque in 1936, and widespread use
of the new method was then promoted starting in 1939. By the
mid-forties, broadcast sowing was used only for early maturing
rice, such as Vialone, which is planted in low-water years.
The transplant method spread rapidly through the Costa
valleys, but not the Selva areas, where broadcast sowing still
continued until the arrival of colonists from Jaen and Bagua, and
later from Rioja and Nueva Cajamarca, who introduced the trans-
plant method in most of the High Selva area. Direct sowing is
still used in the Los Selva, especially in river mud flats, and
for early maturing varieties in other areas.
With the introduction of Philippine dwarf and semidwarf
varieties (IR lines) having high yield and strong fertilizer
response, a new technique of high dosage fertilization was
developed, and research was conducted on the best formulations of
NPK, the best dosage and distribution, etc. All of these tech-
niques have been disseminated for widespread use by farmers.
Numerous comparative trials of various fertilizer dosages have



65
been conducted to establish the best formulations for the new
varieties, depending on the quality of the soils in each area.
Other important determinants of greater productivity and
lower costs are also investigated, such as optimal sowing time by
area, optimal timing and deadlines for plants by area, optimal
age of seedlings, chemical weed control, and chemical disease and
pest control (Pyricularia, Helminthosporium, chinch bugs), irri-
gation technology, including establishment of optimal volume,
scheduling and distribution of irrigation by variety and area,
and management in periods of water scarcity. Mechanization of
cultivation, especially in sowing and harvesting, is also a
consideration. Combines have encountered resistance because of
the high investment cost and the need to maintain the labor
demand. Trials to obtain twice-yearly crops in the headlands of
coastal valleys and in Selva areas, using early maturing
varieties, have been tried. Trials of rotation with soybeans,
beans (frijoles), maize, sweet potatoes and sorghum, between rice
crops, have had variable results, according to the area.
4.1.6  Agricultural extension service and transfer of technology
to the farmer
Rice research and extension services have been adequately
coordinated with farmers, so a satisfactory level of transfer of
technology to users has so far been possible. The Vista Florida
Experimental Station, near Ferrenafe in Lambayeque, is the head-
quarters of the National Rice Program, where research is planned
and most of it is conducted. In addition, experimental stations
in other areas (like Huarangopampa in Bagua, San Ramon in
Yurimaguas, El Tambo in Arequipa) help with regional work and
local replication of experiments.
After repeated confirmation tests, satisfactory results of
experiments are released to extension agents in the CIPAs for
transfer to farmers. In addition, the stations themselves
organize field days and demonstration plots in the fields of



66
leading farmers. These show the advantages of the technologY
being disseminated and, because of the leading farmers' influ-
ence, encourage other farmers to adopt the techniques. However,
this process is slow and difficult, especially in hard-to-reach
isolated areas, so it takes several crop years for a technology
to become widespread.
The organization of farmers into associations and committees
by sector and by valley has facilitated contact with the sta-
tions, scientists and extension agents to learn new techniques.
Information bulletins and pamphlets produced for the farmers and
distributed by the committees are an effective way to expand
technology transfers and make them lasting.
Effective introduction and dissemination of new varieties or
strains requires speedy production and distribution of seeds.
This effort is supported by seed breeders and the ECASA selection
stations. The selected seed is then channeled through the
committees of the area or valley.  Under an INIPA-ECASA
agreement. descriptive pamphlets of new varieties are issued,
indicating cultivation techniques for them.  These pamphlets are
widely disseminated in the rice growing areas, and at the same
time, selected seed of such varieties are made available.
The National Rice Program periodically conducts rice-growing
training courses aimed at professionals, technicians, extension
agents and qualified personnel connected with rice production.
These 2- to 3-month courses are supplemented with field and
laboratory practice and provide up-to-date technical and academic
information. The texts are distributed widely in the rice
growing areas, and there is substantial demand and acceptance for
them. To summarize, the coordinated work of the experimental
stations, seed growers, plant selectors, extension agents and the
valley committees produces a good level of technology transfer.



67
4.1.7 Analysis of trends in unit yields of rice
Tables 4.4, 4.5 and 4.6 give a 21-year history (1963-83) for
the following variables: areas sown, in hectares, output, in
metric tons, and unit yields, in kilos per hectare. These data
are given for the country as a whole and are broken down by
region: Northern Costa, Southern Costa, North High Selva, South
and Central High Selva and Low Selva. Regression analysis of the
historic series of unit yields (Table 4.7) provides indicators
for the regional breakdown and for the national average.
The indicators for the regional breakdown and for the
national average show that the highest increases occurred in the
South Costa (Camana, Majes, Ocona and Tambo valleys) because of
the widespread use of semidwarf, high-yield varieties developed
from the original IR-8, and because of the special character-
istics of the soils in these valleys. However, the quality of
this grain is not optimal and is accepted only by the people in
the south, who are used to this type of short-grain, smutted
rice, with much breakage.
The North Costa has had a moderate increase in yields, less
than the South Costa, partly due to crop-year variability result-
ing from water availability and to the lesser use of semidwarf
varieties.
Rates of increase in the Selva are low, possibly for some of
the following reasons. Technology transfer does not reach most
farmers as easily and as quickly as necessary, and the spread of
information by trained farmers is rather slow and incomplete.
There is periodic water scarcity in some areas at crucial times.
Rapid colonization occurred on new land in the Selva, where
infrastructure is lacking and there is no information on soil
performance and on what crops are best suited for the land. The
sharp rise in the cost of fertilizers and other inputs
discourages small farmes from making adequate use of them.



Table 4.4  Rice:  Changes in Areas Sown (hectares) by Region (1963-83)
Year    North Costa  South Costa        North    South and Central    Low Selva    National
High Selva    High Selva                         Total
1963      47,820        3.130          10,460        1.980                9.180        63.390
1964      52,450        4.900          15.600        1.180                7,000        81.130
1965      46.010        3,800          17,900        1.330                6,200        75,240
1966      59.495        3.700          21,040        1.520               10,100        95,855
1967      63,245        3,900          22.260        1.500               11,600       102.505
1968      27.280        4.900          24.900        3,635               15,010        75.725
1969      53,505        4.870          28.950        3.680               18,860       109,865        0.
1970      74.850        4,600          34.845        3.780               22,300       140,375        X
1971      78,510        5.030          36.910        3,890               23,000       147,340
1972      62,470        4,740          30,905        3.640               16,300       103,385
1973      66.955       41650           27.805        3,395               15.000       117,805
1974      68.285        5.240          26,945        3.065               12,220       115,755
1975      71,050        5,495          32,001        2,035               11,900       122,481
1976      78,785        5.920          32.390        2.925               13,145       133.165
1977      78.322        7.195          26.692        2.650               19,493       134.352
1978      51.133        7.505          33,109        2,477               20,046       114.270
1979      58,324        8.444          34.397        2,439               27.836       131.440
1980      29.877        9.252          32.575        3.596               20,649        95.949
1981      71.263        9.912          36,303        3.697               28.424       149.599
1982      77,861       10,735          38,587        3,707               31,523       162,413
1983      65,191       10.750          60.521        4.101               34,950       175,513



Table 4.5  Rice:  Changes in Output by Region (MT of unhulled rice) 1963-83
North     South and Central                   National
Years   North Costa  South Costa   High Selva        High Selva        Low Selva        Total
1963      189,500       16,840         44,750             2,450          16 010        269.550
1964      247,765       22,050         64,553             1,667          13,300        349.335
1965      185,579       17,100         63,270             2,197          11.371        279,517
1966      248.109       17,590         84,518             2,398          21,257        373,872
1967      325,540       18,603         89,553             2,517          28,039        464,252
1968      117.483       25,284        106,093             5,890          31,345        286,095
1969      261.287       25,324        118,406             6,001          33,334        444.352
1970      366.278       29,900        145,301             6,542          39,220        587,241
1971      371,183       34,707        137,994             6,727          40,600        591,211
1972      295.264       35.089        117,770             6,214          28,101        482,438
1973      309,121       32,922        110,031             5,585          26,016        483,675
1974      317,577       36,994        112,819             5,119          21,728        494,237
1975      346.051       40,800        125,658             3,176          21,090        536,775
1976      368,357       44,814        128,903             5,020          23,301        570,395
1977      391.792       53,603        103,404             4,041          41,159        593,999
1978      248.369       57,909        118,373             3,932          39,545        468,128
1979      304,454       66,657        131,135             3,896          54,242        560,384
1980      163.899       74,285        137.934             6,051          38,202        420,371
1981      410,280       82,870        158,095             6,164          54,679        712,088
1982      425,739       91,566        193,507             6,077          64,540        781,429
1983      398,097       81,415        229,485             6,567          74,740        790,304



Table 4.6  Rice:  Changes in Unit Yields by Region (kilos of
unhulled rice per hectare) 1963-83
North     South and Central                   National
Year   North Costa   South Costa   High Selva          High Selva       Low Selva       Total
1963      3,963          59380         4,278            1.238             1,744         4.252
1964      4.724          4,500         4,138            1,413             1.900         4.306
1965      3.981          4.500         3,535            1,652             1.834         3.715
1966      4,170          4.755         4,017            1,578             2,105         39900
1967      5.147          4.770         4.023            1.678             2.417         4.529
1968      4.306          5.160         4.261            1,620             2.088         3.778
1969      4.883          5.200         4.090            1,631             1,767         4.044
1970      4.893          6.500         4.170            1.731             1,759         4.184o
1971      4.728          6.900         3.738            19729             1.765         4.012
1972      4.726          7.402         3.811            1.707             1,724         4.666
1973      4,617          7.080         3.957            1.645             1,734         4,106
1974      4,651          7.060         4.187            1.670             1,779        41270
1975      4.870          7.425         3.927            1.561             1.772         4,382
1976      4.675          7.570         3.980            1.716             1.773         4.283
1977      5.002          7.450         3.874            1.525             2.111         4.421
1978      4.857          7.716         3.575            1.587             1,972         4.097
1979      5,220          7.894         3.812            1.597             1.949         4,263
1980      5,485          8.029         4,234            1.683             1.851         4.381
1981      5.757          8.361         4.355            1,667             1.924         4.760
1982      5.468          8.529         59015            1.639             29047         4,811
1983      6.107          7.573         3,791            1.601             2.138         4.503



Table 4.7 Regression Analysis of Unit Yields (kg/ha)
North    South       North           South and       Low   National
Selva    Selva    High Selva    Central Selva   Selva  Average
Ab§2Im   V
Lowest                    3.963    4.500        3,535            1.238        1.724    3,715
Highest                   6,107    8.529        5.015            1.731        2.138    4.811
Adjuet  by D eRr9Xion
First year 1963           4.157    4.623         3,962           1.547        1.882    3.998
Last year 1983            5.579    8.687        4.111            1.678        1.942    4.541
Rates or lpcreps
Annual percent             1.48      3.20         0.18            0.41         0.16      0.64
Percent in the period   34.23    87.90            3.75            8.44         3.18    13.60



72
In the North High Selva, which includes Jaen, Bagua and San
Martin, the rapid growth of rice areas in San Martin where little
technology is employed lowered the regional averages. This is
also reflected in the national figures because of the Selva's
growing share, with yields substantially less than those of the
Costa.
4.1.8 Commercial rice varieties at the present time
Commercial rice varieties now used by farmers fall into two
groups: (1) traditional, long-strawed East Indian varieties and
(2) modern short-strawed or semidwarf East Indian varieties with
high nitrogen fertilizer response and high yields. The first
group includes: Radin China, Minabir No. 1, Minabir No. 2,
Mochica, Carolino, Fortuna and Siam Garden. The second group
includes: IR-8, Inti, Naylamp, Chancay and Pampata.
The area sown with modern varieties has increased continu-
ously in recent years, with a progressive decline of traditional
varieties. Semidwarf varieties account for 58.4 percent of
cultivated areas and 71.2 percent of the output, while tradi-
tional varieties account for only 41.6 percent of the area and
28.8 percent of the output.  The breakdown by variety is shown in
Table 4.8. INIPA has disseminated the CICA-8 variety in the High
Selva, with results that are still not very encouraging.
The most recent varieties introduced by the National Rice
Program are the "PA-2,"t derived from CICA_4/CICA_8/CICA_7, which
is adapted to the Central Huallaga and is resistant to the Pyri-
cularia fungus and to lodging and "PA-3," from the IRRI (Line IR-
4570) which is being disseminated in Jaen and Bagua and which is
resistant to Pyricularia and tolerant of the white leaf virus
(hoja blanca).
4.1.9  Price policy for rice
Rice marketing has been a government monopoly since 1942 and
has been successively administered by several institutions --



73
Table 4.8 Percentage Share of Varieties in Area Sown
and by Output
Modern Varieties           Area       Traditional Varieties   Area
(semidwarf)           (percent)        (long-strawed)     (percent)
Inti                       21.7       Radin China               13.5
Naylamp                    17.6       Minabir No. 2              9.4
Pampata                     4.2       Carolino                  10.2
IR-8                        6.1       Fortuna                    3.9
Chancay                     3.7       Others                    Alk
58.4                                 41.6
Output                              Output
(percent)                          (percent)
Modern Varieties           71.2       Traditional Varieties   28.8
Caja de Depositos. Banco de la Nacion, EPSA, and currently by
ECASA since 1980.
The farmers' prices per kilo of unhulled, sound. dry. clean
rice delivered to the mill are set by the Ministry of the Economy
in coordination with the Ministry of Agriculture.  Up to 1975.
one price was set for the entire rice year.  Then, because of
inflation, staggered prices were set at the beginning of the
harvests for each region. Currently, prices are adjusted
quarterly. The price for the Selva is 8 to 10 percent higher
than for the Costa to offset the higher cost of farm inputs in
that region.
Up to 1984. marketing showed negative balancest which con-
stituted subsidies for the consumer. Currentlys the progressive



74
increase in prices to the public of stockpiled rice has made it
possible to eliminate the subsidy gradually. Higher marketing
costs are a result of the short-term financing cost of crop
purchases and the slow recovery of the money from sales through-
out the year. In recent years, farm prices have usually been
high, causing a steady increase of rice cropland in new areas of
the Selva and the displacement of other crops in the Costa,
especially cotton, beans, maize, chickpeas and crops with lower
comparative yield.
Rice farmer participation in the management and the equity
of ECASA is now being proposed, which would produce a mixed
enterprise. While the subsidy has been eliminated, the enter-
prise applies different prices by quality internally, so profits
from high-grade ("superior" and "extra") rices balance losses
from regular rice. Consequently, high quality rices subsidize
regular rice.
4.2 Maize
Maize is the most widespread native crop in Peru, after
potatoes. It has been used for human consumption since pre-Inca
times. However, introduction of wheat and its later development,
and the widespread consumption of bread made from wheat flour,
gradually reduced the importance of maize as a direct consumption
food and increased dependence on foreign foods, as wheat imports
rose. The rapid development of poultry raising in the last 15
years has again stimulated domestic demand for maize to the point
that imports are required.
Maize has a high degree of agroecological adaptability, and
there are both native and improved varieties suitable for the
various climates and regions. It is the crop usually planted by
colonists settling in new areas of the Selva and is grown on
newly irrigated land in the Costa.



75
Maize technology research programs date from 1943 for the
first studies of the Ministry of Agriculture and from 1949-50 for
the National Agrarian University.  Both institutions have con-
ducted major work for more than 30 years on improved varieties.
strains and hybrids, and on cultivation technology.
Maize research is now conducted under two traditional pro-
grams: the INIPA National Maize Program and the National
Agrarian University Maize Program. The two programs are
obviously not coordinated as they should be, despite declared
good intentions. CIMMYT maintains close technical and academic
cooperation and assistance ties with the two programs, but has
not succeeded in coordinating them. In fact, each has its own
objectives and targets. which results in duplication of effort
and lack of mutual support. This situation should be corrected,
and their work should be unified.
4.2.1 International cooperation in maize programs
Both the INIPA and the National Agrarian University receive
technical and academic support from the International Maize and
Wheat Improvement Center (CIMMYT).  This support is provided as
follows:
(1) International support and excahange of genetic material,
which enriches the germplasm and provides raw material for
plant improvement studies. Most of the improved varieties
and high-yield hybrids were made possible by this support.
(2) Exchange of material is ongoing and is carried out in
accordance with appropriate plant health standards.
(3) Technical assistance for maize programs through periodic
visits of experts from Mexico and other countries. Peruvian
experts and technicians can also assist programs in other
countries with material successfully tested in Peru. This
assistance includes methodology, new techniques and evalu-
ation of results.
(4) Exchange of bibliography and technical reports.
(5) Technical and scientific training.



76
This training is conducted at various levels from middle
managers to professionals, executives, experts and scientists.
It is provided through courses of varying length conducted in the
country. or in Mexico City or other places. Groups of four to
eight Peruvian professional staff members from the INIPA and the
UNA annually attend plant improvement and production courses in
Mexico. The national programs organize regional courses for
research workers. extension agents. and technicians. which may
have foreign instructors provided by CIMMYT.
Most of the INIPA and UNA professional staff express satis-
faction at the support currently received from CIMMYT, and only
occasionally indicate the need to increase the aid and to adapt
some working models to the national and regional conditions in
Peru.
4.2.2 Chronological highlights of genetic improvement of maize
Modern genetic improvement of maize in Mexico began in 1943.
when a group of Ministry of Agriculture researchers conducted the
first inter-variety hybridization experiments at the La Molina
Experimental Station. This work culminated in 19945 with the
introduction into commercial production of the first hybrid
strains, known as "La Molina Hybrids": HLM-1, HLM-2 and HLM-3,
and later strains NS-50 and NS-54, all of which were disseminated
extensively in the coastal valleys from 1945 to 1955.
The "Top Cross de Canete" and "Sintetico Harland," produced
by experts of the Experimental Station of the National Agrarian
Society in Canete, were also widely distributed, starting in
1952. At that time, these hybrids replaced the old and declining
"Cuban yellow" strain, which had for a long time been the only
commercial variety of hard maize. These first experiences with
hybrids opened up wide possibilities in maize improvement, which
in fact were realized in subsequent years.



77
In the former La Molina National School of Agriculture,
maize research began in 1949 at the then Plant Physiology Depart-
ment.  This initial work included the following:  sowing by the
ear-to-row method, use of selected strains of ICA and Caneter
formation of selection nuclei, evaluation of pollinization
systems, and stigma receptivity, preservation and viability of
pollen, analyzing factors affecting controlled pollinization, and
environmental factors causing pollen sterility, devising methods
of determining leaf area, extraction and selection of inbred
local varieties of maize, formation of mixed strains by variety,
and development of hybridization techniques.   In 1952,
arrangements were made for Rockefeller Foundation to support
collecting Peruvian maize varieties, and the germplasm bank was
started.
In May 1953, the Maize Research Cooperative Program was
officially established at the National Agricultural School in
cooperation with the Ministry of Agriculture and the Rockefeller
Foundation. Since that time, work has been intensified, and a
network of test fields has been set up in selected areas and
valleys of the Costa and the Sierra.
In 1954, financial support was obtained from USAID and
technical and academic support from CIMMYT.  Also starting in
1954, the National Agrarian University Maize Program made its
presence felt in this field by releasing to the commercial market
strains of hybrid seed from proven-yield strains, particularly
the PM and PMS series, of which the following strains achieved
the widest dissemination: PMS-1619 PM-211, PM-204 and PM-210.
The main objectives of this program include:  (1) developing
varieties and hybrids of high-yield hard yellow maize, (2) help-
ing to reduce the country's maize deficit and achieve self-
sufficiency through improved seed and proper cultivation methods,
(3) creating high-nutrition, high-yield, sweet maize varieties
for the Sierra region, (4) creating appropriate varieties and



78
technologies for specific types of industrial-use maize and (5)
collecting, maintaining and studying the country's maize germ-
plasm.
To attain these goals, the program is organized with the
following projects:  (a) plant breeding, (b) agronomy, (c) seed
growers, (d) germplasm bank, (e) technology transfer and (f)
special projects.
The work is broken down by three natural regions, with
operations in the Costa (Piura, Lambayeque, Trujillo, Chimbote,
Huacho, Lima, Canete, Ica, Camana, Moquegua, Tacna), the Sierra
(Huaraz, Huancayo, Cusco, Arequipa), and the Selva (Iquitos,
Tarapoto, Yurimaguas, Pucallpa, Satipo).
On beginning the production of new varieties and hybrids,
the University's cooperative maize research program (PCIM)
established the following abbreviations: PMV: improved
varieties; PMS: synthetic varieties; PMC: composite varieties;
PMT: intervarietal crosses; and PM: hybrids.
The National Agrarian University Maize Program correctly
feels that the agrarian reform produced a sharp setback in the
technology for maize and other crops.  In the 1970s, closer
cooperation was established with CIMMYT, in technical and aca-
demic assistance and in the exchange of genetic material. This
produced a continuous exchange of germplasm with Mexico, Central
America, Colombia and the Caribbean countries, which enhanced
hybridization work and resulted in numerous new strains with
better yields and specific characteristics, in terms of agro-
ecological adaptation and food or industrial use. A number of
genetic strains (varieties and hybrids) were thus developed that
are adaptable to the irrigated coastal valleys, and inter-Andean
valleys whether irrigated or not, and areas of the High and Low
Selva.



79
The University Maize Program has also developed a wide range
of varieties and hybrid strains adapted to the final use of the
maize. These include hard maize varieties for industrial use in
balanced mixtures for animal feed, and sweet maize for human
consumption (tender maize, popcorn, stewed maize, etc.).  In
addition, varieties with a high germ oil content have been devel-
oped for the oilseed industries, as well as others into which the
opaque-2 gene has been introduced to raise the protein content of
maize grains, especially the amino acids lysine and tryptophan,
which are low in natural maize.
In recent years, commercial firms have imported a wide
variety of seed strains with such brand names as Dekalb. Penta,
Northrup King, as well as others that have variable performance
and adaptation, but which contribute new and varied germplasm for
additional hybrids that are already. being developed.
4.2.3 Main indicators of Peruvian maize production
A total of about 400,000 ha is now planted in maize in the
country (Table 4.9). Thirty-nine percent of that area is planted
in hard yellow maize, which is divided as follows:  51 percent in
the Costa, 47 percent in the Selva and 2 percent in the Sierra.
Sweet maize is next, with 53 percent of the total area, broken
down as follows: 94 percent in the Sierra, 4 percent in the
Selva and 3 percent in the Costa. Tender maize accounts for
6 percent of the area, with the following breakdown:  66 percent
in the Sierra, 26 percent in the Costa and 8 percent in the
Selva. Finally, fodder maize accounts for the remaining
2 percent of the cultivated area, with 99 percent in the Costa
and a few areas in the Sierra. Hard yellow maize is produced in
52 percent of irrigated and 40 percent of rainfed areas. About
25 percent of sweet maize is produced in irrigated and 75 percent
in rainfed areas.
The output of grain maize is around 621,000 tons, with
66 percent hard yellow maize, and 34 percent sweet maize, occupy-



80
ing 42 percent and 58 percent of the grain maize area, respec-
tively.  Imports of hard yellow maize have increased in recent
years, with 4309777 tons in 1982, 505.000 in 1983 and 366,000 in
1984. No maize imports are expected in 1985.
Apparent domestic demand for hard yellow maize is 860.000
tons in 1984, resulting in a theoretical per capita rate of
46.5 kg/yr. including the small portion contributed by sorghum
(5 percent).  Per capita consumption of sweet maize is 11.9 kg,
and tender maize is 7.2 kg.
4.2.4  Criteria for improved maize technology
The general criteria for genetic improvement of maize are
productivity, early maturity. plant height. size of ear, grain
size, flowering rate. leaf area, ears per plant. fertilizer
response, and shattering rate.
Some specific criteria are taken into account when improve-
ment is aimed at specified uses or at given ecological areas,
such as salinity resistance, lodging resistance, pest and disease
resistance, drought resistances sugar content, and germ oil
content.
The criteria for technology improvement are aimed especially
at the following aspects for each area and each variety:  optimal
plant density per hectare, optimal sowing time. optimal
fertilizer formulations, irrigation water management, better
cultural practices and others.
The productivity-limiting factors that have the greatest
impact on commercial production are shortage or slow use of
available improved seeds, inefficient seed distribution and sales
system. and insufficient use of fertilizers (N and P) in the
Costa and Sierra, because of insufficient technical assistance,
distribution problems and the high cost of these inputs making



81
Table 4.9 Maize: Main Indicators
Area Harvested Volume of Production Unit Yield
(ha)               (MT)               (kg/ha)
Hard.Yellow Maize   157,266                408,323             2,596
Costa                 79.438               272.768             3,434
Sierra                 3.320                 5,351             1,611
Selva                 74,508               130.204             1,748
Sweet.Maize          213,771               213,134               997
Costa                  5.142                 8.590             19670
Sierra               201.587               198.099               983
Selva                  7.042                 6.445               915
Total Grain Maize   371.037                621,457             1.675
Tender Maize          22.664               129,034             5,701
Costa                  5,900                33,971             5,700
Sierra                14.994                89,155             5.947
Selva                   1,680                5,898             3.511
Fodder-Maize          13,423               443.302           33.025
Costa                 13.245               438.691           33.121
Sierra                    178                4,611            25.900
Total           407,124             1.193,783           40.401
Hectares             Rainfed              Irrigated            Total
Yellow maize          74.323                82.943           157,266
Sweet maize          159,960                53.811          213,771
Acres,(percent)
Yellow maize               48                    52             100
Sweet Maize                75                   25              100
Volume (Dercent)    Area -Dercent)
Yellow maize                         66                  42
Sweet maize                          U                   ,a
Total                         100                  100



82
the farmers unable to purchase them. There is no appreciable
response in the Selva to phosphate fertilizers, so their use is
not recommended.
For sweet maize, which is largely prduced for consumption on
subsistence farms. socioeconomic aspects have a major influence
on the design of improvement programs.
4.2.5 The major technological innovations contributed by
research
In the field of genetic improvement, there is the creation
of new varieties, synthetic, composite and topeross hybrids, for
both hard yellow and sweet maize. The University Maize Program
reports that it has established and released for production 17
improved varieties, 8 synthetics, 14 composite, 20 single-cross
hybrids. 10 double-cross hybrids, and 1 intervarietal cross. It
reports that it has processed and distributed annually 1200 tons
of improved seed. Forty thousand ha are planted with hybrids in
the Costa, and over 4.000 ha each in the Sierra and the Selva.
These crops produce 180,000 MT of hard yellow maize and
8,000 MT of sweet maize, including dried cob maize. Added to
this is 960 ha sown with protein enriched maize (opaque-2), with
an average yield of 4,000 kg/ha and an annual production of 3,840
MT, which it is proposed to expand to improve nutrition in the
Sierra.
The INIPA National Maize Program states that in recent
years it has produced numerous strains, varieties and hybrids
that have helped to improve production. The most recent being
promoted and disseminated among farmers are the following:
"Marginal-28-Tropical" yellow maize for the Selva; "Morocho 501"
hard yellow maize for the Sierra; "Canchero 301" sweet maize for
the Sierra; "Choclero 101" sweet tender maize for the Sierra; and
"Canchero 401" sweet maize for the Sierra.



83
In the agricultural field, research has determined the fol-
lowing for each maize variety or area: optimal sowing period,
fertilization formulas, optimal planting density, hilling and
weeding methods, control of army worm (cogollero) and other
pests, and irrigation management.
Substantial improvements have been made in the design of
experiments and in the evaluation of findings, as well as in the
technology of hybridization, backcrosses and mass or pedigree
selections.
4.2.6 Current commercial varieties
There are numerous hard yellow maize varieties now grown.
most of them known by abbreviations and codes based on derivation
and origin.  The hard yellow maize strains most grown in the
Costa are the following: PMC-Z, PMC-3, PM-204, PM-211, PM-212,
Penta 1070, NK-808, PMS-264, VF-1019 INIA-101, PM-701 and PMC-
747.
A wide variety of sweet maize types are grown in the Sierra,
with local names taken from the valleys place or region or the
color or other distinguishing feature. Consequently, such names
as the following are used:  "alazan mantaro," "blanco Urubamba,"
"dentado de Huaylas," "rojo canteno," etc.
The INIPA National Maize Program has developed and released
the following improved varieties for commercial use:  "Cajamarca
101," "Mal Paso 101," "Santa Ana 101," and "Cusco 101." All of
them are widely used in the Sierra as sweet maize for human con-
sumption. either as tender maize (choclo), toasted maize
(cancha), stewed maize (mote), roasted maize (chochoca) and
others.  In addition, the program has developed new varieties
with superior traits, whose seed has begun to be disseminated in
sufficient quantities for introduction in the 1984/85 crop year.
These new varieties are:  "Marginal-28-Tropical," "Morocho 501,"



84
"Canchero 301," "Canchero 401," and "Choclero 101."1 The main
characteristics of these varieties are described below.
"Margial-.28 Tropical" was developed from Mexican and
Caribbean progeny, and is an important contribution of CIMMYT.
It is suitable for tropical areas (High and Low Selva), short-
stalked (2 m), medium maturing (110 days), with red-yellow grain.
The potential yield is 8,000 kg/ha, but under actual conditions
of regional cultivation, it yields 4,000 kg. The strain responds
well to median doses of nitrogen (90 kg N/ha).
"MorocQhoQ51" is a hard yellow maize suitable for the
Sierra, developed with hard maize progeny from the Sierras of
Mexico and the Andean countries, contributed by CIMMYT.  It was
produced after 5 years of repeated selection in areas of the
northern, central and south of Peru. It is short-stalked
(1.68 m) and late maturing (195 days).  With good management, up
to 9 t/ha can be produced, using balanced fertilizer according to
soil conditions.
"Canchero 301" is a sweet maize suitable for the Sierra, for
consumption as toasted maize (cancha).  It is derived from over
200 genetic materials collected in Mexico, Colombia and Ecuador,
and early maize from the Department of Ancash, adapted to the
ecology of the north, central and south Sierra. It is short-
stalked (1.76 m), somewhat late maturing (184 days), responds
well to NPK fertilizer, and may produce yields up to 8 MT/ha.
"Canchero 401" is similar to the "Canchero 301" but late
maturing.
"Choclero 101" is a sweet tender maize (choclo) suitable for
the Sierra, derived from progeny from Cusco, Olmos, San Genonimo
del Mantaro, and Mexico.  It is medium height (1.97 m). and ears
are harvested in 140 days.  The grains are large and in uniform
rows. the cob is narrow, and the ears are elongated and cylindri-
cal. The strain responds well to NPK fertilizer and can reach
high ear yields per hectare.



85
These new varieties are being introduced through an inten-
sive campaign by the CIPAs or regional offices of the INIPA.
However, seed distribution will have to be expedited and techni-
cal assistance procedures improved to achieve effective dissemi-
nation and the hoped for impact on production.
4.2.7  Extension service and technology transfer
A comparison of research effort and achievements with direct
effects on national maize production through increased unit
yields shows that expected ratios have not been attained.
Research efforts have been extensive and successful, but progress
in increasing average yields in the country have been modest:
0.19 percent for sweet maize and 0.47 percent for hard yellow
maize.
This disproportion would seem to indicate first that the
rural extension system is not operating efficiently and second
that widespread introduction of technologies to farmers is a slow
and difficult process. The better trained farmers, able to
absorb technical know-how and to purchase improved seeds, inputs
and equipment, can make substantial progress in increasing pro-
ductivity and yields.
However, the number of these farmers is small, and most are
in the opposite situation, with little education, no money to
invest, no credit, and living in difficult-to-reach areas, etc.
Consequently technical know-how does not reach most of them, or
reaches them with great difficulty or perhaps in a distorted
form. In any case, such know-how cannot be put to use, because
means and resources are lacking. That is why most farmers have
not yet received the benefits of improved technologies and
continue subsistence farming without being able to raise their
standard of living or purchase manufactured goods.
This situation causes the increases in national average
yields to be very low. That does not prevent progressive and



86
modern farmers from making substantial individual increases,
based on localized technology innovation, whose rational use
depends largely on the ability to purchase inputs and make
investments.
This situation indicates the need to review the methods used
in the rural extension service to date and make any changes
needed to improve operational efficiency, in light of the socio-
economic conditions prevailing for most farmers. At the same
time, the coverage of farm credit must be expanded to make it
accessible to more farmers and speed up and simplify require-
ments and procedures.
4.2.8 Changes in unit yields of maize
Tables 4.10, 4.11, 4.12 and 4.13 show 20-year histories
(1964-83) for area harvesteds in ha, volume of production, in MT,
and unit yields in kg/ha. The data are broken down by sweet
maize and hard yellow maize, and the latter is broken down
regionally with figures for the Costa, the Selva and the national
total.
In contrast, national yield increases are modest -- only
0.49 percent annually and 10.25 percent during the period, due to
the Selva's share of area and volume of production, because the
yields there are substantially lower than in the Costa, whose
share of the total has been decreasing. In fact, the Costa
accounted for 83 percent of production volume in 1964 and
75.7 percent of area, with the Selva contributing 17 percent and
24.3 percent, respectively. In 1983, the Selva's share grew to
46 percent by volume and 60.7 percent by area.  In any case, the
substantial improvement in current maize production in the Selva,
mainly in the San Martin Department, represents a success for
technology. However, it would have to be supplemented with soil
protection and conservation measures to ensure continuity of this
production in the immediate future.



87
Table 4.10  Hard Yellow Maize - Costa
Years                 Area          Production             Yield
(ha)             (MT)              (kg/ha)
1964                 93.440          248,373               2.658
1965                108,550          304,417               2,805
1966                113,580          323,660               2,850
1967                113.590          314,746               2,770
1968                 89.595          292,889               3,270
1969                108,270          3179189               2.930
1970                107,050          318.505               2,975
1971                112.515          347,823               3,090
1972                110.230          345,833               3,137
1973                 94,580          314.851               3,329
1974                 90,940          3141176               3,455
1975                107,225          362,264               3,379
1976                120.960          417.444               3,451
1977                125,709          431,570               3.433
1978                 83,427          285,144               3.418
1979                 84,580          281,358               3.327
1980                 52.186          177,051               3,393
1981                 66.113          239,046               3,616
1982                 61,540          235.014               3.819
1983                 65.147          2229118               3,409



88
Table 4.11 Yard Yellow Maize - Selva
Year                  Area               Production             Yield
(ha)                 (MT)               (kg/ha)
1964                 30.000                50,665               1,535
1965                 29.000                34,709               1,195
1966                 33,850                43,316               1,280
1967                 36,530                49,200               1,347
1968                 39,830                53,976               1,355
1969                 41,145                58,604               1,424
1970                 46,650                69,552               1,491
1971                 43,915                65,999               1,503
1972                 43,340                66,442               1,533
1973                 43,510                65,596               1,508
1974                 43,920                68,144               1,552
1975                 36,560                58,449               1,599
1976                 42,910                71,300               1,662
1977                 53,003                88,045               1,661
1978                 63,694               106,298               1,669
1979                 81,550               136,649               1.676
1980                 69,308               123.810               1,786
1981                 70,683               150,774               2,133
1982                 83,114               163,366               1,966
1983                100,485               189,417               1,885



89
Table 4.12 Hard Yellow Maize - National Total
Year                  Area                Production            Yield
(ha)                  (MT)              (kg/ha)
1964                 123,440               298,038              2,414
1965                 137,550               339,126              2,465
1966                 147,430               366,976              2,489
1967                 150,120               363,946              2,424
1968                 129,425               346,865              2,680
1969                 149,415               375,793              2,515
1970                 153,700               388,057              2,525
1971                 156,430               413.822              2,645
1972                 153,570               412,275              2,685
1973                 138,090               380,447              2,755
1974                 134,860               382,320              2,835
1975                 143,785               420,713              2,926
1976                 163,870               488,744              2,983
1977                 178.712               519,615              2,908
1978                 147,121               391,442              2,661
1979                 166,130               418,007              2,516
1980                 121,474               300,861              2,477
1981                 136.796               389.820              2,850
1982                 144,654               398,380              2,754
1983                 165,632               411,535              2.485
1984                 193,045               544,580             2,821



90
Table 4.13 Sweet Maize
Year                   Area              Production             Yield
(ha)                 (MT)               (kg/ha)
1963                    --                     --                 --
1964                 220.500               202,542                923
1965                 204,800               218,045              1,065
1966                 209.490               212,032              1.020
1967                 212,280               226.629              1,070
1968                  183,715               178.970               975
1969                 218.990               213,905                975
1970                 228,405               226,562                990
1971                 217.415               202.546                930
1972                 229.375               216.048                942
1973                 228.625               219.048                958
1974                 229.210               223,312                974
1975                 218,775               213,974                978
1976                 221.575               236,915              1,069
1977                 212.218               214.258              1.010
1978                 203.787               198.572                974
1979                 204*907               203,450                993
1980                 153.445               151.800                989
1981                 173.563               196.936              1,135
1982                 203.212               232.883              1,146
1983                 174,399               173.098                993
1984                 186.815               203.034              1.087



91
The heavy increases in regional yield both in the Costa and
in the Selva, considered separately, are also a good index of the
effects of technology dissemination, both through improved
varieties and through crop management in those regions. For
sweet maize, which has been developed mostly in the Sierra,
average yield increases are much smaller, only 0.39 percent a
year and 8.30 percent during the period, which reflects the above
cited problems in disseminating technologies through extension
and transfer work.
4.2.9 Maize price policy
Up to 1982, hard yellow maize was marketed under a state
monopoly with official prices set by the ENCI. In June of that
year, prices were decontrolled in the Costa, allowing supply and
demand to control the farmers and consumer markets, with the ENCI
imposing controls only for production in the Selva.  The adjust-
ment calculations by regression in the historic series of unit
yields of maize are shown in Tables 4.14 and 4.15.
These figures show the substantial yield increase in the
Selva (2.20 percent a year, or 48.05 percent in the 20-year
period).  The rate is also significant in the Costa, although
less spectacular than in the Selva, with 1.61 percent a year and
33.41 percent during the period.  Also, users were free to
arrange their imports, but they always chose to use the ENCI as
the importing agent.
Under this system, the arrival in port of large shipments of
imported maize at the beginning of the harvest in the Costa
resulted in a drop of domestic prices and discouragement for
farmers.  To overcome these problems, reinstatement of the pre-
vious system was requested, and periodic meetings of representa-
tives of maize farmers and users (industrial plants and livestock
raisers) were held, but results were spotty.



92
4.3 Potatoes
Potatoes are the largest food crop in Peru, with some
1.8 million tons produced on over 200,000 ha. Since the plant is
native to the Peruvian Andes, the country has a substantial
reserve of wild biotypes, species and strains to provide a con-
tinuous supply of experimental germplasm for hybrids and improved
varieties. However, the national unit-yield average is low
(7,662 kg/ha in 1983) and has increased only 40.35 percent in the
last 20 years (1963-83).
Potato growing varies widely in technology, and can be clas-
sified into three groups:
(1) Empirical campesino methods that have been used for
centuries by most farmers and communities in the Sierra,
with no inputs and with yields from 1 to 5 t/ha.
These methods are used in the high Sierras and on the
slopes and small terraces, with rainfed, subsistence
agriculture producing for farm consumption.
(2) Semi-scientific farming practiced by some better
educated farmers, with selected seed, improved tillage,
and use of some inputs, including irrigation, with yields
of 8 to 15 tons.
(3) Scientific agriculture, practiced by modern farmers, with
full use of inputs, mechanization, irrigation, plant
health controls, certified seeds, etc. Production costs
are high and yields range from 20 to 30 tons or more per
hectare. This technology level is found on the best soils
of the inter-Andean valleys and the winter crops in the central
Costa valleys.



Table 4.14 Indicators of Maize Unit Yields
Hard Yellow Maize                    Sweet Maize
Costa         Selva         National Total    National Total
High and Low Yields (kg/ha)
Lowest                         2,658          1.195               2,414                  923             '0
Highest                         3,819         2,133               2,983                1,146
Adjusted by regression
First year                     2,756          1.273               2.533                   --
Middle year                     3,216         1,579               2,660                   --
Last year                       3,676         1,885               2.781                   --
Rates of increase
Percent annual                   1.61          2.20                0.49                 0.39
Percent in the period          33.41          48.05               10.25                 8.30



94
Table 4.15 Percentage Share of the Costa and the Selva
in Hard Yellow Maize Production
By Volume            By Area
19-U
Costa                        83.0                 75.7
Selva                        17.0                 24.3
1i9i
Costa                        54.0                 39.3
Selva                        46.0                 60.7
Only one-third of the country's output is sold in the
domestic markets, with two-thirds consumed on campesino subsis-
tence farms.  The Lima wholesale market handles some 300,000 tons
a year, and a similar amount is sold in regional and local
markets in the interior.  Over one million tons is consumed on
the farm and in the Sierra communities.
Price levels are sensitive to supply changes since demand is
quite stable, and prices drop below costs when small seasonal
surpluses occur.  In addition, prices rise sharply in temporary
periods of scarcity or undersupplys which may occur when roads
and highways are closed during periods of heavy rain or when
there is a time lag between the Sierra and Costa harvests.
The Sierra crop supplies the markets from January to July,
and the Costa supplies them from August to December.  Storage of
seasonal surpluses is limited because of high operating and
financing costs, the small capacity of existing refrigerated
storage facilities, and a high wastage rate.



95
Technology improvements in the potato crop were begun by
Belgian instructors who were members of the mission that founded
the old School of Agriculture in 1902. These improvements were
continued by the La Molina Experimental Station in 1930, by
regional experimental stations under the then Ministry of Agri-
culture in 1943, and by the National Agrarian University's
program in 1950.
Technology to produce high yields is now available, but two
major factors prevent widespread use of these methods by campe-
sino farmers. The high cost of input-intensive methods cannot be
borne by campesinos with little resources and no access to
credit. Campesinos produce only what they need to subsist on and
do not sell in the market. When they succeed in making substan-
tial increases in yields with available technology, they will
market large quantities. This will produce heavy surpluses that
will have to be exported or processed if they are to obtain
profitable prices. Under current conditions, any large annual
potato surpluses could not be absorbed or channeled, so increased
yields would only result in smaller crops areas.
Potato improvement is currently the responsibility of the
INIPA National Potato Program and the Agrarian University Potato
Program. The two programs are well coordinated with each other,
and receive assistance and support from the International Potato
Center (CIP).
The fact that CIP is based in Peru is an advantage for both
the country and the center, because Peru is able to make better
use of CIP technology advances and improved technical and aca-
demic coordination, while CIP has access to a wide selection of
biotypes and genetic specimens of native potatoes in the area
where this plant originated.



96
4e3.1 International potato improvement cooperation
CIP was established in Lima in 1972, and since that time has
maintained close contact with the potato improvement programs of
both the Ministry of Agriculture and the National Agrarian Uni-
versity. CIP's general objectives, which are summarized below,
take into account the interests of over 80 countries in develop-
ing their technologies. CIP maintains and enhances the world
collection of potato specimens and biotypes, with 13,000 speci-
mens of primitive native potatoes, plus innumerable varieties,
hybrids and derived lines. The center conducts genetic studies
to achieve improved and stable yields, increased frequency of
genes for desirable traits and recombinations of desirable traits
in families and populations. They are screening for improved
clones adapted to various climates such as frost resistance in
cold areas and heat tolerance in tropical areas. Other research
includes resistance to late blight (Phytophtora infestans) and
nematodes, studies on control and exclusion of virus diseasest
biological pest control, collection of potato strains suitable
for the tropics, production and handling of virus-free seed, and
post-harvest management and the use, of potatoes for food enrich-
ment.
Within these guidelines, CIP maintains ongoing coordination
with national programs, to which it provides assistance and
support by evaluating and exchanging specimens and germplasm.
supplying the new technologies developed, providing guidance for
the design and evaluation of specific research, training of tech-
nicians and researchers, furnishing bibliographic material and
making laboratories and greenhouses available for specific
studies.
Within this general framework of cooperations CIP has, under
agreements with the UNA and the INIPA, provided national programs
with over 8,000 germplasm lines, given training in advanced
courses to the best qualified professional staff of both
programst provided clones with proven resistance to frost,



97
nematodes and late blight* and continuously provided up-to-date
scientific bibliography and technical reports on potato tech-
nology.
The UNA teaching staff in research-connected fields (plant
physiology, genetics, plant pathology. entomology, fertilizers,
propagation, etc.) have research contracts with CIP and access to
its facilities and services. CIP has stressed the need for
national programs to adapt available technologies to local or
regional conditions and disseminate them to farmers.
4.3.2  National potato production
Ninety-three percent of the country's potatoes are grown in
the Sierra, which has 97 percent of the crop area (Table 4.16).
While most farming is rainfed. with crops staggered from Febru-
ary to July, some inter-Andean valleys obtain early crops
(December and January) with irrigation. The main potato-
producing areas of the Sierra are in the Departments of Junin,
Pasco, Huanuco, Cusco, Puno, Ancash and La Libertad. The Central
Sierra is the main seed supplier, and programs for genetic
improvement of varieties and clones are located there.
The main plant health problems for production in the Sierra
are: late blight, potato wilt (northern area), potato cyst nema-
tode, Premnotrips (Gorgojo de los Andes), and secondarily the
leaf miner fly, the potato stem borer and the potato flea beetle
(Epitrix). Ten percent of the crop is raised in the Costa,
especially the central valleys (Pativilca, Supe Huaura, Chancay.
Rimac, Lurin, Canete, Chincha and Ica), all of which together
account for only 5 percent of the farm area.
These farms use modern methods, have yields between 15 and
30 t/ha, and supply the market from August to December (Table
4.17). The main problems are: late blight, leaf miner flies,
nematodes, smut, soil salinity and sometimes high temperatures.
Seed used on these farms comes from the Central Sierra and is



98
frequently scarce and high priced. Also, seed supplies and
quality are uncertain.
Table 4.16 Characteristics of Potato Growing by Region
Type of                         Area    Output       Average
Region   Farming       Technology       (percent) (percent)    Yield
Sierra   Rainfed      Low                 85.8      78.6     5,628 kg
Sierra   Irrigated   Low and Medium    11.8         14.4     7,523 kg
Costa    Irrigated   Medium and High    2.4          7.0    17,850 kg
Seasonality of regional commercial potato production and
high sensitivity to price fluctuations because of seasonal sur-
pluses or scarcity often result in biennial cycles of abundance
and scarcity. Farmers react by sowing more areas after a year of
scarcity and high prices, and reducing areas in the opposite
situation.
4.3.3 The main technical problems and constraints in potato
growing
The main technical problems and constraints in potato
growing in Peru include the following:
(1)  Insufficient availability and inadequate management of seed
causes good quality potato seed to be in short supply.
Often, potato sold as seed do not meet minimum requirements
and are infected with virus.
(2)  Modern potato technology required to produce high yields per
hectare has not been put to wide-spread use, partly because
of poor extension services, and partly because of the



Table 4.17  Potatoes:  Area Harvested and Yields According
to the CIPAs (1981)
CIPA    Departments                   Pro-duction             Area Harvested           (Mie
(000 MT)  5             (000 ha)      5         (MT/ha)
XII   Junin, Pasco, Huancavelica        407 -  24                 42        21           9.6
XIV   Cusco, Apurimac                   222    13                30         15           7.4
XV    Puno                              202    12                 38        19           5.3
XI    Huanuco                           167    10                24         12           6.9
V     Lima                              140      8                 9         4          15.4
IV    Aneash                            120      7               16          8           7.5
III   La Libertad                       113      6                11         6          10.2             0
10
IX    Cajamarca. Amazonas                85      5                10         5           8.5
XII   Ayucucho                           69      4                 9         5           7.6
VII   Arequipa, Moquegua                 52      3                 3         1          17.9
VI    Ica                                51      3                 3         1          20.3
VIII  Tacna                              29      2                 2         1          13.5
I     Piura                              13      1                 1         1          10.3
X     San Martin                          8    <1                 <1       <1           10.8
Total                      1,678   100                199      100            8.4



100
farmers' inability to pay the high cost of such technology,
coupled with credit and marketing limitations.
(3) Frost is the major climate factor affecting the potato
areas of the Sierra and is responsible for substantial
losses from crop damage. Bitter Peruvian potatoes, used
since ancient times to make potato starch (chuno), have a
high tolerance to frost and are being used to introduce
this tolerance into improved varieties.
(4) Fungus, bacteria and virus diseases affect potato crops.
The most frequent and damaging are late blight (PhytoQ
DhtDra infestans), potato wilt (Psgudomona Solanacearum),
leaf roll virus (PLRV) -- virus Y (PVY), virus X (PVX), and
the Andean potato scab virus (APMV).
(5) Insect and nematode pests are also numerous. The insects
and nematodes that attack potato crops include Gorgojo de
los Andes (three species of the genus Premnotr$ps). leaf
miner flies (genus Liriomyza and Gnorimoschema). potato
stem borer (Ptorimaea Opperculella), potato flea beetle
(genus ERitrix), cyst nematode (Glodobera sp.), false
root knot nematode (Nacobus sp.), and true root knot
nematode (Meloidogyn& incognita).
In addition, there are climatic, technical and economic con-
straints. Rainfall is a determinant of performance in the crop
year because 85 percent of the potato crop is rainfed. Frequency
and intensity of frosts is also a major factor for many areas of
the Sierra. Insufficient coverage of extension and credit
services and the lack of money to purchase certified improved
seeds and basic inputs like fertilizers, pesticides and equipment
are technical and economic factors. In addition, there is no
efficient market and price information service nor a network of
storage facilities for seasonal surpluses.
4.3.4 Major technology advances in Peruvian potato research
Potato research in Peru aims at the following objectives,
which are closely connected with production problems: increased
productivity per ha, resistance or tolerance to frosts, control



101
of pests and diseases by chemical, cultural and biological means,
genetic resistance to disease, production of virus-free seed, and
food enrichment with potato dry matter and protein. In general,
resistance and tolerance are contributed by Andean native
biotypes, while productivity and quality derive from introduced
or improved biotypes.
4.3.5  Genetic improvement
The oldest potato varieties grown in the past that are still
grown are the Chata Blanca de Huasahuasi, la Maco, la Jiruco, la
Huagalina or Amarilla del Norte, and la Ticahuasi, obtained by
crossing Ticanel with Chata Blanca. The Mantaro and Renacimiento
varieties were released for commercial farming in 1946, and were
widely grown in the Central Sierra and the Costa valleys. The
following varieties were introduced in the years indicated:
Inti-Sipa and Porcon-Sipa in 1964, Mariva, Sipena, Merpata.
Huarena, Varena, and Antarqui in 1968; Yungay and Tomasa
Condemayta in 1970; Revolucion, Mi Peru, Participacion, and
Huancayo in 1973; Cholocday, Libertena, and Inti Raymi in 1975;
and Molinera and Cajamarca in 1977. Other good varieties are:
Ccompis for Cusco and Puno; Yana-Imilla, also known as Salamanca;
Huayro (red potato); and Amarilla Limena or Amarilla-Goniocalix.
The UNA and INIPA genetic programs continue to produce
improved varieties, and there are now biotypes and hybrids with
high productivity and other desirable featuress suitable for
various regions and areas. The seed production, dissemination
and propagation stage is due to begin soon. CIP also has a wide
range of improved biotypes and clones, which are available for
both national programs. For nutritional enrichment, there are
varieties with 36 percent more dry matter and 15 percent more
protein, unlike traditional potatoes that have only 20 and
10 percent respectively.
Field research has established the best sowing periods,
fertilizer formulas, planting density, hilling methods, cultural



102
practices to protect against frosts and pests, etc., for the
various varieties. Research techniques have been developed for
hybridization. backerosses, mass selection, etc., and raising
plantlets from primary or meristem tissues, which make it
possible to eliminate virus from clones and seeds.
The easy vegetative propagation of potatoes makes it
possible to use any biotypes as varieties, even when they are
genetically unstable or heterozygous. This method also makes it
possible to use clones of favorable mutations repeatedly or to
take advantage of the heterosis effect of crosses. In addition,
floral or botanical reproduction can be used for hybridization.
backcrosses and other properly programmed genetic procedures.
Summarized below is the presentation of Dr. Fermin de la
Puente on technology advances in other cultural aspects and plant
protection:
PhytoDathology
The most appropriate fungicides and dosages for control of
infestans  and leaf spots caused by Macropbhoma sp.,
Phyllostiota sp. and SeRtoria sp. have been selected through
tests and trials on epiphytic areas. In field evaluations.
clones and/or strains have been selected with tolerance to K
infestansx   L  erythoseDtica. 2, subterranea. &  endobioticum4 
solanacearum. among others, which will be included in future
improvement plans.
Trials repeated annually both on virus dissemination and
seed degeneration under the conditions in the Central Costa have
laid the bases for providing sustained potato seed production in
the Costa and meeting the seed requirements for early planting in
the Costa. This has made potatoes available in July and August,
a period in which they were scarce up to 2 years ago.



103
In repeated field trials, clones and/or strains have been
selected with different degrees of susceptibility, tolerance and
resistance to N_l1idgg De iDnggn  14 Glgbgdera sp., and Nggg
sp. These are more effective for both commercial use and
potentially for improvement plans.  Rotation of potatoes with
forage crops has reduced the cyst populations by 10 percent and
the viability of iQj9gSrL sp. by 40 percent which opens up the
possibility of effective biological control against this
worldwide pest.
Study of the biological cycle of tL jDgg&jt& has made it
possible to use cultural practices as effective control measures.
In addition. chemical pesticides have been studied and tested to
help control nematodes, although they cannot eradicate these
pests completely.
More than 100 species that damage potatoes have been found,
and they are estimated to cause losses of over 30 percent of the
crop. Biological. cultural and chemical methods have been
studied, developed and adapted to conditions in Peru, and
effective control measures have been found.
Study and determination of the biological cycle of flgm_
tripQ sp., along with field tests, have achieved effective
chemical control of this endemic pest in the Peruvian Sierra.
Various insects previously known generically as the "Andean
weevil" (Gorgojo de los Andes) have been identified, and an
entomophagus fungus (Beauveria bassiana). a parasite of their
larvae, pupae and adults, has been found.
Studies on population of insects beneficial and harmful to
the potato and other crops in the Costa have contributed to the
design of an integrated contingency control program at the valley
level, which has improved production and made significant



104
savings, mainly because of lower organic pesticide costs.  These
studies have been the basis of others, such as determination of
the tolerance of cultivars to L.. huidobrensis (leaf miner fly)
and integration of cultural, chemical, preventive and curative
measures for control of this pest.
Excellent weed control has been achieved with the herbicides
Patoran, Afalon and Sencor, used as pre-emergents. The latter
also gives excellent control as a post-emergent, but only if
applied in the first stages of the crop.
PhysiQloay
Nobrotan and Papadormol inhibit sprouting of potatoes for
consumption and have shown that, in the Costa, potatoes can be
stored for up to 4 months, with losses of around 7 to 10 percent.
Obtaining cultivars suitable for the High Selva is a major
technological advance. Several areas in the Selva province of
Oxapampa have now become potato producers. Applications of a
yield biostimulant (Ergostim) has resulted in variable increases
in output (up to 17 percent), depending on the cultivar used.
Fertilization
Intensive soil and fertilizer experimentation has shown that
fractionated application of nitrogen is essential for optimal
absorption by the plant, and there is no difference in the
performance of various nitrogen sources. For phosphate sources,
ammonium phosphate and single superphosphate show the same
production increases. The best procedure for selecting economic
fertilization is soil analysis.
Ecologl
Several experiments in the Costa have defined the best
cultivars for early, midseason and late sowing. In addition to
supporting better programming of planting and optimizing pro-
duction, the findings have provided an overview of entomological,



105
phytopathological. nematological, and cultural problems, and the
best disciplinary approach of research.
The Potato Seed Technology Project has made a preliminary
determination that seed quality is essential for the size and
management of the seed. The best yield is determined by the
largest number of stems, the smallest percentage of virus-
infected plants, rapid emergence and efficient photosynthesis.
After several years of research, a production regime for
basic seed has been determined, which consists of obtaining and
reproducing parent plants through indices of tubers and plants
simultaneously and in parallel with units of tubers. This scheme
made it possible to increase the approved parent plants in two
alternative crop years in the Costa and the Sierra from 15 to
96 percent.
Research on virus dissemination and seed degeneration con-
ducted under extreme conditions in the Central Costa, coupled
with high quality seeds obtained by the procedure developed have
made it possible to set up a seed production system in the Costa
to supply quality seed and cultivars adapted to early plantings
in the Costa (March-April). This supplies potatoes to the
consumer market in July and August, previously a period of
extreme shortage in Metropolitan Lima.
4.3.6 Varieties now grown
A large number of varieties are now grown. Most of them are
not widespread, since they are grown only locally for farm con-
sumption. Native varieties are characterized by low yields (10-
15 MT), good cooking quality, and wide acceptance in the market.
In the northern area of Peru, these include Huagalina, Chimbina,
Huayro, Sapa, Llamellina. Limena, Schaga, Colorada, and
Palambrena, among others. In the central area Casa Blanca, Chata
Blanca de Huasahuasi, Chata Negra, Maco Rosada, Amarilla or



106
Limena, Linco, Suito, Rosada Tarmena, Huayro, Tumbay are grown
and in the southern area Ccompis, Yana Imilla or Salamanca,
Imilla Blancat Pitiguina, Chaucha Alecaihuami, Ckellu Huaccoto,
Rucki, Pinaza, etc.
The improved varieties include: Alheli, Antarquit
Caxamarca, Cusco, Cholooday, Huancayo, Huarena, Inti-Sipa,
Mantaro, Marina, Merpata, Mi Peru. Molinera, Participacion,
Porcon-Sipa, Renacimiento, Revolucion, Roja Precoz, Sipena.
Ticahuasi o Mejicana. Tomasa Condemayta, Yungay, Collota, Ran-
rahirca, and Rayhuana. Table 4.18 summarizes the use of
varieties cultivated in Peru.
4.3.7 Extension services and technology transfer
The statements made under this heading for maize also apply
to potatoes. Yields have increased in the past 20 years only
40.35 percent, an annual rate of 1.71 percent. The advanced
production technology available, in terms of varieties, culture,
fertilization and plant health control, do not reach most of the
campesinos and community farmers in the Sierra. The main reasons
are structural deficiencies and limitations of all kinds in the
extension service, difficulty of access to many productive areas,
inefficient approaches by the extension service which produces
poor results, high cost of modern technology requiring intensive
use of inputs with costs now beyond the means of small farmers in
the Sierra, limited coverage of agricultural credit, and
marketing problems with seasonal saturation of the market, price
sensitivity, lack of storage facilities, processing or export of
surpluses. These production characteristics, problems and con-
straints make large-scale technology transfer difficult.
Major progress has been made on winter production of
potatoes in the Costa, and average yields in the Costa valleys
are approaching 18 MT/ha in favorable years. The introduction of
potato growing in the High Selva areas, with new varieties and
yields from 12 to 15 MT/ha, represents substantial progress.



107
The same is true of the Ica Valle, with improved varieties for
winter crops.
4.3.8  Changes in unit yields of potatoes in Peru
There are sharp differences in potato productivity in Peru,
depending on the level of technology used. Yields are less than
5 MT/ha for subsistence farmers in many areas of the Sierra; from
8 to 15 MT/ha for middle technology farmers; and over 20 to 25
MT/ha for the most modern farmers in the inter-Andean or coastal
valleys. Despite this wide range, the national averages of 5 to
8 MT/ha will be used in the following analysis. Table 4.19 shows
national potato production over 21 years (1963-83), indicating
volumes produced, hectares harvested and unit yields. Calcula-
tions produced the following indicators: global increase rate of
unit yields in 1963-83 is 40.35 percent, resulting annual rate is
1.71 percent, and adjusted by regression at the beginning is
5,472 and at the end is 7,680.
This shows that yield increases in the period considered are
small compared to the research effort and the technology
produced, the demographic growth of 2.6 percent a year, and the
consequent demand increase. Per capita consumption during this
Period declined from an average of 101 kg/year in 1960 to only
62 kg in 1983. The problems indicated concerning technology
transfer, marketing, credit and other support services are
largely responsible for the small increases in potato produc-
tivity nationwide.
4.4 Beans (frijoles)
The bean crop in Peru has been declining in recent years for
a variety of reasons. In 1967, it was ninth in area, with 71,500
ha, preceded by potatoes, corn, barley, coffee, cotton, rice,
alfalfa, and wheat. In 19839 it slipped to twelfth place after
sugarcane and bananas, accounting for only 459500 ha. Volumes of



108
Table 4.18 Varieties Cultivated in Peru by Regions
Native                 Percent           Improved             Percent
North Sierra:  (Departments of Piura, Cajamarca, La Libertad.
Ancash, Amazonas)
Huagalina                40.0            Mariva                 15.0
Chimbina                  10.0           Revolucion              5.0
Amarilla                   5.0           Renacimiento             4.0
Others                    15.0           Huarena                 2.0
Inti Sipa               1.0
Yungay                  0.5
Ranrahirva              0.5
Others        _2_Q
Subtotal            70.0                                   30.0
Central Sierra: (Departments of Huanuco, Pasco, Junin, Huan-
cavelica, Ayacucho)
Rosada Tarmena           30.0           Mariva                  18.0
Huayro                   10.0           Ticahuasi               10.0
Ccompis                   5.0            Revolucion              8.0
Amarilla                 10.0           Others                   4.0
Others                    5.O
Subtotal            60.0                                   40.0
Southern Sierra: (Departments of Cusco, Puno, Arequipa,
Moquegua)
Ccompis                  25.0           Mariva                   5.0
Imilla                   45.0           Revolucion               1.0
Amargas                   5.0           Others                   4.0
Others                   15.Q
Subtotal            90.0                                   10.0



109
production and per capita consumption declined correspondingly.
In 1984. the crop area increased to 58,000 ha.
Bean crops became heavily infested with root nematodes in
1971. resulting in higher costs, lower yields and smaller crop
areas. Added to this was the spread of the mosaic virus, which
aggravated the situation. These problems caused bean crops to
decline continuously in yields per hectare from 1,015 kg in 1960
to only 697 kg in 1984.
The first bean research was conducted in 1940 at the La
Molina Experimental Station and was designed to increase yields
and fusarium wilt resistance. This work continued until 1968
when the Peruvian agrarian reform began. Research was
interrupted, the scientific and technical staff was scattered.
resources were cut, and so on. As a result. the work of many
incomplete experiments was lost, along with important hybrid and
biotype lines that seemed promising.
As the damage from nematodes and mosaic virus worsened up to
19709 some research was resumed. This work produced several
strains, including the Divex of the Canario variety and the
Sanilac of the Panamito variety, which, because they showed some
resistance, were introduced in response to the spread of these
pests.
Beans are important because they are one of the main sources
of plant protein and because they improve the soil by fixing
atmospheric nitrogen through the action of Rhizobia bacteria in
root nodules.
4.4.1 Indicators of bean production
Table 4.20 gives the production trends for a 21-year period
(1964-84), indicating hectares sown, volume produced, unit
yields, and per capita consumption.  The 1960 figures are in-
cluded for comparison purposes.  The table shows that area and



110
Table 4.19 Historic Series of Potato Production in Peru
(1963-83)
Area Harvested       Production Volume        Unit Yields
Year           (ha)                   (MT)                (kg/ha)
1963        231,390                1,196,920              5,173
1964        261,500                1,531,130              5,855
1965        251,120                1.568,240              6,245
1966        254,630                1,498,930              5,885
1967        254,390                1,711,741              6,295
1968        261,500                1,526,247              6.085
1969        292,515                1,785,134              6,103
1970        315,195                1,929,470              6,120
1971        320,050                1,967,860              6,150
1972        270,935                1,713,390              6,324
1973        267,685                1,713,094              6,400
1974        267,920                1.722,374              6,429
1975        250,720                1.639.586              6,540
1976        252,810                1.667,000              6,594
1977        246,843                1,615,582              6,645
1978        247,191                1,695,324              6,858
1979        242,003                1,695,116              7,005
1980        194,142                1,379,648              7,106
1981        199,269                1,678,606              8,424
1982        217,021                1.799,640              8,292
1983        150,446                1,152.864              7.662
Average Last
5 Years     200,576                1,541,174              7,683



ill
Table 4.20 Indicators of Bean Production
Production                           Per Capita
Area Sown          Volume          Unit Yield         Consumption
Year        (ha)             (MT)              (kg/ha)           (kg/yr)
1960      36,711            37,252              1,015             3.30
1964      40,580            39,260                965             3.26
1965       45,040           40,861                905             3.25
1966       64,575           56,821                880             14.40
1967      71,530            65,290                915             4.83
1968       54,655           39,538                725             2.91
1969       65,885           49,865                755             3.57
1970       65,780           53,259                810             3.98
1971       60,750           48,083                790             4.27
1972      58,385            49,926                855             3.51
1973      60,405            51,-796               857             3.54
1974      61,94~5           53,101                857             3.52
1975       61,305           49,005                799             3.16
1976      62,555            49,934                798             3.14
1977       59,186           48,884                826             2.99
1978      55,714            47,148                845             2.80
1979       57,014           471693                836             2.76
1980      45,032            39,432                874             2.30
1981       49,586           44,963                907             2.43
1982       49,928           43,320                868             2.28
1983       45,569           35,190                772             1.82
1984      58,484            40,750                697             2.14



112
volumes of production and yields started a sustained downtrend in
1967, except for increases in some years. Per capita consumption
also dropped from 3.98 kg/yr in 1970 to only 1.82 in 1983 and
2.14 in 1984.
The average unit yield in 1984 was 68.7 percent of the 1960
yield. Per capita consumption in 1984 was only 69 percent of the
1960 figure. This performance shows the ineffectiveness of agri-
cultural research and technology transfer, as well as the market-
ing problems for beans.
Bean species and varieties adapt to the climate and soil
conditions of the three natural regions of the country. However,
the best yields are obtained in the Costa and between the Selva
and the lowest Sierra areas, mainly because of different tech-
nology levels and because beans are grown in association with
corn in most Sierra areas.
The departments with the highest bean output are:  Caja-
marca, Arequipa (Camana and Tambo valleys), Amazonas, Piura, San
Martint Lima and La Libertad. The breakdown of 1979 production,
by region, is shown in Table 4.21.  Table 4.22 shows the
production breakdown in 1979 by departments. The Department of
Cajamarca has the highest crop area, but yields are low because
beans are mostly grown in association with corn.  The highest
yields are obtained in Cuzco, Arequipa, Apurimac, Pasco,
Moquegua, Ancash, Junin and Lima.
4.4.2 General legume indicators
Some indicators for the major legumes, which are complemen-
tary crops, are shown in Tables 4.23, 4.24, 4.25 and 4.26.



113
4.4.3  Analysis of unit yields of beans
Least squares regression analysis of the historic series of
unit yields of beans in 21 years (1964-84) gives the following
indicators:
Adjusted by regression:       start     858.08
middle    835.09
end       812.11
Trend:    negative (decreasing)
Rate of decrease           year:       -0.28 percent
in the period:       -5.35 percent
These results show that yields trended downward in the
period considered. decreasing 0.28 percent a year, or 5.35
percent in the period. In absolute values, the 1984 yield is
94.3 percent of the 1964 yield.
Table 4.21 Bean Production for 1979 by Region
Costa     Sierra      Selva      Total
Area (ha)               18,805      27,906    10,303    57,014
(percent)             33          49         18        100
Production (MT)          20,538      17.505      9,650    47,693
(percent)             43          37        20         100
Average Yield (kg/ha)    1.092          627        936        836



114
Table 4.22 Area and Production by Department
Area        Yield       Production
Department                    (ha)       (kg/ha)        (MT)
Cajamarca                    13,185         537          7.080
Arequipa                      6.478        1.219         7.899
Amazonas                      5.486          405         2,219
Piura                        4,730          853          4.036
San Martin                   4.500           804         3,620
Lima                         4.291        1.090          4,677
La Libertad                   3.207          924         2.963
Huanuco                      2,640          966          2,630
Junin                        2.385        1.019          2.431
Ancash                       2.069        1.135          2.347
Loreto                       2.030        1.000          2,030
Lambayeque                    1,905         880          1.692
Ica                           1.750         860          1.505
Apurimac                        770       1.195            920
Huancavelica                    590       1,107            653
Madre de Dios                   260         700             182
Cuzco                           245       1,292            317
Ayacucho                        240         970            234
Pasco                           137       1.138             156
Moquegua                         40       1.132             45
Tumbes                           22       1.000             22
Puno                             22         589              13
Total                  57.014       20.815         47.693
1979 Data



115
Table 4.23 Percentage Production of Grain Legumes
Type                                      Volume
(percent)
Beans                                 45.8
Green beans                           19.8
Peas                                  17.4
Lupine (Chocho and Tarwi -
Lupinus tarus)                    5.0
Lima beans                             3.0
Zarandaja beans                        2.6
Chickpeas                              1.9
Castilla beans (F. de Castilla)        1.5
Lentils                                1.2
Loctao beans                           0.8
Pigeonpeas (F. de palo)                0.3
Nuna beans                             0.2
Others                                 Q^E
100.0
Table 4.24 Imports of Grain Legumes (MT)
Years          Peas       Lentils      Chickpeas    Beans       Total
1980          5,458           476            5         --       5,939
1981          7,351         3,577          311         12      11.251
1982          5.330         4.034          155         --       9.515
1983          5.800         6.790          115         --      12.700
1984          7.200         4.457          110        876      12.643



116
Table J4.25 Exports of Grain Legumes
(Loctao beans, beans, chickpeas, lima beans)
Year                          Volume (MT)
1971                            2,008
1972                            2,471
1973                            2,770
1974                            2,358
1975                              769
1976                            1 p755
1977                            1 ,870
1978                            1,108
1979                            1,411
1980                            2,349
1981                            2,583
1982                            2,333
1983                              583
1984                              592



117
Table 4.26 Historic Series of Legume Consumption
Consumption       Per Capita        Index       Protein
Year          (MT)             (kg/year)     (percent)     (gr/day)
1972         88,133             6.2             100          3.6
1973         88.879             6.1              98          3.5
1974         91.779             6.1              98          3.5
1975         88,017             5.7              92          3.3
1976         88.864             5.6              90          3.2
1977         85,962             5.3              85          3.0
1978         82,494             4.9              79          2.8
1979         879360             5.1              82          2.9
1980         81,310             4.6             714          2.7
1981         88.440             4.8              77          2.8
1982         86,657             4.6              74          2.7
1983        78,587              4.1              66          2.4
1984         87,551             4.4              71          2.6
Source:  Up to 1981 - Central Department of Agribusiness and
Marketing* Ministry of Agriculture.
1982-84 -- estimated.



118
4.4.4  The main problems with bean production in Peru
High susceptibility to pests and disease has diminished bean
production. The highest incidence is from virus, rust, fusarium
wilt, nematodes, aphids, virus vectors, and the leaf worm (gusano
de hoja). Most farmers, especially in the Sierra and the Selva,
do not adopt advanced technologies, and resist improved
varieties, partly because they are uncertain about consumer
acceptance. Although some high-yield strains with resistance to
rust and nematodes have been developed, not enough of the
improved seed has been produced for commercial use.  There is
insufficient coverage of agricultural credit; as with other
crops, credit assistance continues to be poor and not always
prompt.
The Peruvian consumer prefers bean varieties with light-
colored grains, like the Panamito and particularly the Canario
varieties, which have the highest costs and bring the best prices
in the market. Lesser known varieties like Bayo, Red Kidney or
Rojo. have less acceptance, despite their lower prices. The
Caraotas variety, which has great productive potential in the
country, is not accepted by consumers, and is produced only for
export.
Production is seasonal for both beans and other grain
legumes in the Costa and Sierra, with harvests concentrated in
July, August and September. This gives rise to a surplus in the
second half of each year, and a severe shortage in the first
half, with the resulting price fluctuations. Lack of facilities,
high costs, wastage, deterioration and quality losses of stored
grain legumes discourages storing as a means of regulating
supply. The gouging of some merchants aggravates the situation
to the detriment of both farmers and consumers.  The low rates of
per capita consumption make for a small market that is sensitive
to supply and price changes. so beans are a highly elastic
product, easily replaced in the diet by grains and other foods.



119
4.4.5 Bean research goals
The following features are regarded as desirable for genetic
improvement of varieties: high yields early maturity, large leaf
area, resistance to the common bean mosaic, resistance to
fi£gSytYt RisJ rust, resistance to fusarium wilt and anthracnose
fungus, resistance to nematodes, adaptation to salinity, grain
quality (size, color, taste and protein content), weather
adaptation, and adaptation to associated crops.
4.4.6 Varieties
There are numerous species, subspecies and varieties of
beans (Table 4.27), the most widespread are in the Costa --
Canario, Panamito, Cocacho, Negro of Guindo, Blanco, Loctao,
Castilla, Piegon Peas, and Zarandaja; in the Sierra -- Caballero.
Red Kidney or Rojo; and in the Selva -- Huascaporoto, Panamito,
Canario, and Castilla.
4.4.7 Varietal improvement
The improved lines from 1960-70 include Canario, Divex,
Panamito Sanilac, Bayo Chimu, Canario Camana, Negre de Chincha,
Caballero Cajamarca, etc. The National Grain Legume Program now
has eight lines of the improved Canario variety with resistance
to virus and good yield, but has not yet promoted production of
commercial seed. Likewise, there are several improved lines for
the Sierra with Mexican progeny (Puebla 444), and local progeny
(Gloriabamba), including the Cajamarca 74/1 strain, which is
similar to the Caballero variety in appearance and quality. but
has a higher yield and is rust resistant. It will soon be made
available to farmers of Cajamarca, Junin and Cuzco.
4.4.8 International cooperation
The National Grain Legume Program has received technical and
academic support from CIAT since 1976, focusing on the following
aspects:
(1) Germplasm support -- some of the improved varieties and
strains contain genetic material from Mexican, Colombian and



Table 4.27 Most Widespread Bean Types in Peru
Type/Description    Variety   Sowing Time             Type      Vegetative       Reaction to
Period (days)      Disease
Cangrio:  yellow    Canario       Feb.Apr.      Semirunner with  150-160    Susceptible to
seed, large size    LM-2 57                     tendrils                      rust and common
mosaic
Canario     Feb.Apr.      Erect bush,        110-130    Susceptible to
Divex 8120                 without tendrils              rust and common
mosaic
Canario     Feb.Apr.      Erect bush,        110-130    Susceptible to
Divex 8130  Sep.Nov.      without tendrils               rust and common
mosaic
Panamito:  white    Panamito    Oct.Jan.        Erect bush,        80-100    Susceptible to
seed, small size    Sanilac                     without tendrils              rust and common
mosaic
Panamito    Oct.May       Semierect with   110-120    Susceptible to
Mejorado                   small tendrils                rust and common
mosaic
Nggr_os:  dark red   Negro        Feb.Mar.      Running with      150-160    Tolerant to rust
seed, large size    Chinchano                   tendrils                      and common mosaic
Caraota:  black      Caraota      Sep.Mar.      Erect with short 100-120    Resistant to rust
lusterless seed,    Negro LM-72                 tendrils                      and common mosaic
small size



Bao   spherical,   Cocacho        Feb.Mar.     Semirunner with  150-160    Tolerant to rust
large, light         LM-57                     tendrils                      and susceptible
brown seed                                                                   to common mosaic
Large red seed       Line 17      Nov.Jan.     Bush               90-100    Susceptible to
common mosaic
Red cloud   Nov.Jan.      Bush               90-100    Susceptible to
common mosaic
Small bay colored   Bayito       All year      Semierect         120-130    Susceptible to
seed                                                                         common mosaic
Medium black seed   Costa Rica  Nov.Jan.       Semierect         120-130    Susceptible to
1-8                                                     common mosaic
Porrillo    All year      Bush              110-120    Susceptible to
Sintetico                                               common mosaic
E.U.I. 546  All year      Bush              110-120    Susceptible to
common mosaic
P.I. 309-   All year      Bush              110-120    Susceptible to
804                                                     common mosaic



122
Central American progeny provided by CIAT.
(2) Training of scientific and technical personnel through
courses organized in the country at various levels, or
through scholarships at CIAT's central headquarters in Cali
or at various universities in Latin America.
(3) Exchange of documents and bibliography on bean-related
subjects.
(4) Direct assistance to the National Program through periodic
visits of experts. and lengthy visits of specialists.
4.4.9 Technology transfer
The same problems indicated for other crops apply to beans
also: technology transfer difficulties because of the
campesino's cultural level and lack of access to extension
resources and services. In addition to this, farmers resist
adopting some strains or varieties for fear they may not be
accepted by the consumer, who may be the campesino himself and
his family, for subsistence crops. or the urban consumer and
market, for commercial crops. Consequently, a new approach to
extension work for this crop must be designed.
4.4.10 Bean price policy
The prices of the various types and varieties of beans were
governed by supply and demand up to 1971. when the canario bean
was included under price control on the understanding that
control of this variety would bring with it partial automatic
control of other types and varieties of legumes. The price
frozen at S/.14.00 per kilo for 4 years discouraged planting and
reduced production, so a regulated market was set up in March
1975, and finally, the free market was restored in 1980.
Bean marketing problems also affect other legumes, because
these products are complementary or replace one another in the
diet. Peru exports varying amounts of lima beans and chickpeas,
as well as loctao beans and pigeonpeass and imports varying



123
amounts of lentils and dried peas. Beans are not imported,
except sporadically in small amounts.
4.5 Wheat
Peru's annual wheat demand is about 1 million MT. Only
10 percent is produced domestically; the remaining 90 percent is
imported. These imports, which are approaching one million tons,
represent a large foreign reserve drain. Therefore, wheat
research and promotion should be given high priority in the agri-
cultural sector. However, a number of factors have combined to
prevent this, so Peru's dependence on foreign supplies of this
staple food is continuing and worsening.
There has been a long history of productive wheat research
in the country since the time of older varieties like Maria
Escobar, La Molina 60, San Martin 28, Mentana, Galgalos,
Florencia, Aurora, Kenya, and their numerous hybrids. These
varieties supported domestic production from 1930 to 1950, as
continuous efforts were made to increase yields, improve bread
wheat, and overcome the rust problem.
The characteristics of wheat marketing, the agribusiness
oligopoly and low prices have limited domestic wheat development,
so production is only large enough to meet the local and regional
demand for direct consumption, small mills and local bread
bakers. Despite favorable regulations, promotion prices and
other measures to encourage the milling industry to buy domestic
wheat, the industry has never used more than 4,000 to 5,000 tons.
Foreign market prices, the transnational structure of the milling
industry, soft credits contingent on wheat purchases, etc., have
thus far favored massive imports, to the detriment of domestic
wheat production. However, efforts continue to increase produc-
tion where it is declining, and to show farmers in the Sierra
that wheat is a good alternative.



124
While there are varieties suitable for the Costa. wheat has
been a Sierra crop because it is better adapted to the climate
and is more rust resistant in that area. At one time. high-yield
wheat harvests were obtained in the Costa, but black stem rust
has virtually eliminated the crop in the coastal valleys.
4.5.1 International technical cooperation on wheat
CIMMYT provides important support to wheat research and pro-
motion, both with the INIPA National Cereals Program and the
Agrarian University's Wheat Program. The support is the same as
that described previously for maize:
(1) Distribution of germplasm (varieties, strains, and hybrids)
from Mexico and other countries to expand plant improvement
work in the country.
(2)  Exchange of germplasm.
(3) Visits of foreign experts to provide technical advice to
domestic programs.
(4) Exchange of technical bibliography and reports.
(5) Technical and scientific courses of various levels and
lengths.
(6) Coordination and dissemination work, such as conferences,
seminars, workshops and task forces.
A negative aspect of CIMMYT's work is that its charter con-
fines its activities to wheat and maize. Consequently. it does
not contribute support to other cereals like barley. oats and
rye, which are important domestic staple foods and are valuable
alternatives for small farmers.
4.5.2 Chronological outline of varietal improvement of wheat
After the older varieties indicated above were developed and
were used for a long period, domestic wheat researchers succes-
sively released new varieties to farmers. including the
following:
--   «QZag   (1958) Early bread wheat. resistant to black
rust, good potential yield.
--   uascHrag n (1960) Early. rust-resistant.



125
Narino (1960) Introduced from Colombia, very early.
short strawed, resistant to all races of yellow rust.
but susceptible to black rust.
Sl- ataay (1961) Early bread wheat, resistant to some
forms of both rusts.
Helvia FXron (1962) Semi-early, medium-strawed, bearded-
head, black-rust tolerant, high-yield bread wheat.
Cajabamba (1968) Suitable for the northern Sierra, semi-
earlys tolerant to the three rusts (yellow or glume rust,
black or stem rust, and brown or leaf rust), with good
yields.
Cahuide (1968) Suitable for the south Sierra, very early,
short-strawed, high-yield, white wheat for bread flour,
tolerates yellow and black rusts well.
Hel-ia. Ken (1968) Early, short-strawed, bearded-head,
white wheat for bread flour, good yield, tolerant to yellow
and black rusts.
Huancabamba (1968) Suitable for the Piura Low Sierra, late
medium-yield, large-grain bread wheat, tolerates the three
rusts well.
Huandgy (1968) Early, medium-strawed, rust-tolerant, medium
yield.
Gl-riabamba (1968) Suitable for the Cajamarca and Chacha-
poyas Sierras, early, medium-strawed, high-yield.
Ollantg (1968) Suitable for the Cuzco and Apurimac Sierras,
very early. short-strawed, high-yield, rust-tolerant bread
wheat.
TijnaJnes (1970) Suitable for the Costa valleys, all.
season, medium-strawed bread wheat, resistant to black and
brown rusts.
Helvia Li (1970) Suitable for the Costa, all-season, early,
medium-strawed, red wheat for bread flour, resistant to
black and brown rusts.
au"i (1970) Suitable for the Costa, all-season, short-
strawed, red wheat for bread flour, resistant to the three
rusts.



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Participacion (1975) Suitable for the Costa, semi-late,
medium-yield rust-tolerant spring wheat.
The following varieties are now grown in the country:
The varieties already mentioned --  iuasgran-L JHelyia Fron
Cahuide4 Helyia Kgm_, Ollanta4 Particigacion.
The other varieties obtained later, such as Huanca. Sinchi J
Mogueiuafl NIA,C,-.1 and lQ2.
New varieties now being distributed are:
C-73002. produced 3,700 kg/ha in tests in Ica.
Benito introduced by the INIPA, of Canadian origin, pro-
duced 2,700 kg/ha in tests in Cajamarca.
Coultgr, also of Canadian origin, produced 3.000 kg/ha
in tests in Cajamarca and Puquio. The two Canadian
varieties have good resistance to rusts and smut.
Salcedo-79 Variety obtained in Puno, winter wheat, yielding
about 4 MT/ha on demonstration plots, suitable for the high-
land plains.
Ill-a Similar to the preceding variety.
The following varieties of foreign-origin winter wheat,
introduced with CIMMYT support, are being tested in the highland
plains:  Mary Huntsman (England). WW-71-47 (Austria), Lely
(Netherlands), Blue boy (U.S.), Budifen (Chile), Huenerfen
(Chile), Capitole (France), Champlein (France) and Talent
(France). All of these varieties appear promising as winter
wheats for the highland plain region. where yields from 5.000 to
6,500 kg/ha have been recorded on test plots.
As can be seen, there is germplasm for continued production
of new varieties and hybrids to raise yields. but, at the same
time, an adequate solution to marketing problems will have to be
found if domestic wheat is to be used for more than a cereal con-
sumed on regional subsistence farms and processed with handicraft
methods.                                I



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4.5.3 The criteria applied for genetic improvement of wheat
The following criteria are applied for genetic improvement
of wheat: yield, early maturity, rust resistance (Puccinia),
smut resistance (Ustilago), frost and drought resistances
adaptation as winter crop, short-strawed, resistance to lodging,
quality of grain, according to use and final destination, hecto-
liter weight and fertilizer response.
4.5.4  Improved cultivation technology
Research has determined for each variety used and being dis-
seminated the best cultivation conditions for optimal realization
of the potential yield.  The following recommendations and stan-
dards are suggested for each variety: selection of suitable
soil, soil preparation, tillage, amount of seed and density of
sowing, sowing period, by area and region, sowing systems and
methods, techniques and timing of weed control, fertilizer formu-
lation, dosage and timing, irrigation, water management, volumes
and rate, disease and pest control, timing and methods of
harvesting, threshing and transportation, and conservation of
stored cereal.
4.5.5 Main technology innovations
In essences these are the main technology innovations:
varietal improvements already indicated, introduction of high-
yield dwarf varieties and their inclusion in the domestic wheat
germplasm, introduction of winter wheats for the highland plain
region, fertilizer formulation according to the response of each
variety, continued efforts to achieve rust resistance, and sowing
and cultivation techniques for each variety.
4.5.6 Extension service and technology transfer
The problems, conditions and characteristics of extension
services and technology transfer for wheat are the same as those
described for sweet maize, because both are Sierra crops that are
mostly consumed on subsistence farms.  There are a large number
of small scattered wheat farmers, with low crop output, difficult



128
access for extension agents, strong attachment to traditional
methods, meager economic resources, little or no ability to
purchase improved seeds and agrichemical inputs, not
creditworthy, etc., all of which are a major constraint on dis-
seminating technologies.
A more developed group of farmers, usually better located in
the inter-Andean valleys, are responsible to technical
information and make progress in developing their holdings.
These farmers help to improve the averages and in the medium term
also help to spread improved farming practices because their
neighbors imitate them. New and better methods will have to be
found if rural extension services are to reach the great majority
of campesinos, whose general characteristics have been described.
4.5.7 Analysis of changes in unit yields of wheat
Table 4.28 shows a 24-year series (1960-83) for domestic
wheat production, indicating areas harvested, production volumes
and unit yields (national average). The data for the last year
(1983) are estimated and were not taken into consideration in the
regression analysis.
Table 4.29 shows the changes in unit yields (national
averages) in both absolute numeric values and the linear re-
gression representation# without considering the 1983 estimated
data.
The figures show that unit yields (national averages)
increased only 14.70 percent a year from 1960-82.  The reason for
this small increase in the national average is the reduced cover-
age of agricultural extension and credit services, which bring
technology progress to only a few small farmers, so technology
transfer by imitation is slow and incomplete. A new system,
strategy and methodology for agricultural extension will have to
be designed to provide greater coverage for the masses of
campesinos in the Sierra.



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4.5.8  International commercial classification of wheat
International market development organizations have estab-
lished a commercial wheat classification for specific purposes.
according to the characteristics of seasonal production (in
simplified form): hard red wLinter -- high protein and gluten
content, good bread-flour quality; hart red sjring -- similar
characteristics and uses as the preceding one; durum -- hard
spring wheats, low in gluten. used in pasta products; whi   --
white spring wheat, used in pastry, confectionary, biscuits,
pasta products and fast breads; and soft LeA winter -- used for
the same purposes as white wheat.
Peruvian imports are almost always hard red winter wheat,
which is the highest priced in the world markets. The country is
now able to produce competitive soft wheat suitable for pasta
products and biscuits and replace imported wheat in those indus-
trial sectors, because it is an unnecessary waste of foreign
exchange to use high-priced, imported, hard winter wheat in
industries that can use other grades.
4.5.9 Wheat price policy
Domestic support prices for wheat have been in effect since
1966. They are updated periodically, supplemented by legal pro-
visions that require the milling industry to purchase at such
prices all of the domestic wheat offered to them by farmers.  In
practice, transportation difficulties, quality penalties, impuri-
ties, moisture and other factors have prevented a growth in the
flow of domestic wheat to the mills, and the highest amount
recorded is around 5,000 MT.
The transnational milling industry in Peru is not interested
in these purchases and concentrates on massive imports, because
of its commercial ties with large supplier firms and the cereal
shipping lines. The current growth rate of wheat imports is 3 to
5 percent a year, while the growth of domestic yields per hectare



130
is only 0.63 percent. and the area sown and the output volume is
sharply decreasing.



131
Table 4.28 Historic Series of Wheat Production (1960-83)
Year            Area Harvested        Output Volume      Unit Yields
(ha)                 (MT)              (kg/ha)
1960               153,868               153,460               999
1961               153,417               153,595             1,001
1962               153,800               152,666               993
1963               153,100               155,500            1,016
1964               149,300               143,150               959
1965               153,150               146,720               960
1966               156,710               145,002               925
1967               159,850               152,180               950
1968               136,040               112,912               830
1969               146,562               136,703               935
1970               136,230               125,374               920
1971               138,535               122,225               880
1972               134,910               120,080               890
1973               136,095               122,635               901
1974               137,825               127,364               924
1975               133,640               126,324              945
1976               133,925               127,497               952
1977               115,124               115,385            1,002
1978               103,610               104,060             1,008
1979                96,229               102,060            1,061
1980                68,622                77,142            1,124
1981               102,263               118,551            1,159
1982                84,352               100,800            1,195
1983*               69,340                75,056            1,084
* 1983 estimated



132
Table 4.29 Domestic Wheat Level
High and low yields (kg/ha)
lowest                    830 in 1968
highest                 1,195 in 1982
Adjusted by regression
starting year             912
middle year               979
last year               1,046
Growth rates
annual percent           0.63
percent in the period  14.70



133
5 Conclusions
In the 1970s, the Peruvian government assigned priority to
transfer of land tenure. Agricultural research and extension
were relegated to a secondary role.  So both government and
private research facilities lost property and scientists, which
set back this work substantially.
The land tenure structure established by the agrarian reform
in the seventies underwent new changes starting in 1980, with a
trend to subdividing associative enterprises.
The structure of the government agricultural sector results
in many regional institutions, with no unity of command.  There
is virtually no planning or coordination of activities among
these institutions, and because of lack of consistency in agri-
cultural policy and a small, ineffective planning system, each
institution sets its own priorities independently from the
programs of other institutions. The poor organization of the
government agricultural sector prevents clear assignment of
responsibilities.
Up to 1980, agricultural price controls had a negative
impact on output. Beginning that year, a price decontrol policy
was initiated, but the government continued to participate in
setting the prices of some products, such as rice, maize and
wheat.
Food imports, particularly wheat and maize, have been
rising, and if the productivity of those commodities could be in-
creased, both would have an extensive and ensured domestic
market.
Integration of research and extension services in 1980 and
the startup of products programs in 1982 have laid the groundwork
for a recovery in agricultural research and extension services.



134
The clear assignment of priorities to five commodities
(rice, potatoest maize, wheat and grain legumes) and the
relationship established with the international centers is
facilitating rapid training of scientific personnel and use of
the genetic findings of international centers. This is saving
Peru many years of scientific work and is making possible a
speedy recovery from the setback of the seventies.
Results in developing disease- or weather-resistant varie-
ties have been excellent, but new problems are arising, such as
deficiencies in marketing inputs and services, market uncertain-
ties because products are difficult or costly to store, lack of
agribusinesses, etc. These factors are becoming the major con-
straints for increasing production, and therefore must be given
priority, if research findings are to be effectively utilized.
In cooperation with the international centers, domestic pro-
grams have conducted training that has developed basic research
teams in a short time for the products of the various programs.
Identification of the problems that prevent using tech-
nologies and increasing production shows the need to take action
on the problem that is the main production constraint.  Continued
research on yield or disease resistance is pointless if the main
problem is poor seed distribution or poor product marketing. For
that reason, the National Product Program should not be confined
to research and extension services, but should cover all aspects
of production: inputs, services, production, marketing and con-
sumption. The solution of problems with the greatest impact on
increasing output should be given priority. Since these factors
are not static, a mechanism for timely identification of problems
is essential to change priorities of resource allocation and
avoid routinely continuing activities that no longer have high
priority.



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5.1 Rice
IRRI and CIAT have made important contributions, especially
IRRI's genetic material and CIAT's active work in training, co-
ordination and advisory services. Peru has been conducting re-
search on rice since the thirties. The IR varieties arrived in
1966, and yields quickly doubled those of domestic varieties.
Starting in 1980, CIAT began introducing strains of the CICA
series, which are still under observation. In 1983, dissemi-
nation was begun of the Viflor, Tallan and Huarangopampa varie-
ties, which are high-yield, have a greater milling yield, better
resistance to blast and the chinch bug (Chinche Sogata), early
maturity and resistance to lodging. The rice policy has helped
to promote the use of new varieties because of the certain market
for them, their high relative price, the technical assistance and
credit provided, and organization of farmers. However, subsi-
dized rice sales and delays in paying farmers for their rice has
meant a high social cost for the society as a whole.
5.2 Maize
There are now two maize programs, one at the National
Agrarian University and one at INIPA, resulting in duplication of
efforts and lack of mutual support. CIMMYT coordinates the two
programs, and supports them with genetic material, advisory
services and training. Modern genetic improvement began in Peru
in 1943 and was intensified in 1953 with the establishment of the
Cooperative Maize Research Program at the National Agrarian
School, in cooperation with the Ministry of Agriculture and the
Rockefeller Foundation. In 1954, CIMMYT began to provide
support which, despite the agrarian reform, was intensified in
the 1970s. Early, high-yield varieties are available for the
1984/85 crop year, but seed distribution and technical assistance
are poor.



136
5.3 Potatoes
As in the case of maize, there are two programs for
potatoes, one at the National Agrarian University and the other
at INIPA, but they maintain good coordination with each other and
have the assistance and support of CIP. To date, CIP has pro-
vided over 8,000 germplasm lines and has trained a substantial
number of professionals for both programs. The main difficulties
in applying research findings are: poor seed marketing, lack of
credit for the high-cost inputs required, and poor marketing of
the output.
5.4 Beans
Because of nematode and mosaic virus infestations, yields of
1,015 kg/ha in 1960 have plummeted to 697 kg in 1984.  Mosaic-
resistant varieties with yields of over 2,000 kg/ha will be re-
leased to farmers this year. Price freezes for 4 years have
undoubtedly impeded further studies and production of beans.
5.5 Wheat
The National Agrarian University and INIPA both have wheat
programs, but they are not properly coordinated. CIMMYT supports
both programs, but gives much more support to INIPA. CIMMYT sup-
port has made it possible to obtain excellent varieties in a
short period, but a policy providing market security for wheat
growers is essential.






ISSN 0257-3148
ISBN 0-8213-0788-6