Peruvian Economy VII: Sugar Exports

Early Development of the Sugar Industry

Sugar played an important role in the economic history of Peru, especially during the 19th and early 20th centuries. Large sugar plantations developed along the coastal valleys of La Libertad and Lambayeque, where irrigation and fertile land supported extensive sugar cane farming. By the late 1800s, sugar had become one of Peru’s major agricultural exports, alongside cotton and guano.

Labor and Plantation Economy

During the colonial period under the Spain Empire, sugar production relied heavily on enslaved African labor. After slavery ended in the 19th century, plantation owners recruited thousands of workers from China through contract labor systems. These workers became central to the expansion of Peru’s sugar estates and export economy.

Major Sugar Companies

Several large agro-industrial companies dominated Peru’s sugar trade. Among the most important were Casa Grande and Cartavio, both located in the La Libertad region. By 2006, Casa Grande and Cartavio together produced around 260,000 tons of sugar, representing about 32% of the Peruvian sugar market.

Cartavio, founded in 1891, later expanded into ethanol and alcohol production.

Growth of Sugar Exports

By the late 19th century, Peru exported sugar mainly to the United Kingdom and the United States. Export revenues helped finance railways, ports, and industrial infrastructure. Sugar exports became an important source of foreign income and contributed to the modernization of Peru’s coastal economy.

Decline in Economic Importance

In the 20th century, Peru’s sugar industry faced challenges from international competition, economic reforms, and changes in land ownership. Agrarian reforms in the 1960s and 1970s redistributed many large plantations and weakened the traditional hacienda system.

Today, sugar represents less than 1% of Peru’s total exports, as mining products dominate the economy. According to international trade data, Peru exported about US$108 million worth of sugar and sugar confectionery products in 2024. The United States imported more than US$55 million of Peruvian sugar products during that year. 

Source: web

Photo: Channel 1 Los Angeles