This article was originally published in Chinese in the Chinese trade media FishFirst, in October 2020. 

This column was written by Cayetana Aljovín, Chairman of the Board of Peru's National Fishery Society (SNP Perú).

 Since the arrival of COVID-19 six months ago, Peru has been facing the most difficult stage in its recent history. On the one hand, there was evidence of the deterioration that had been going through the health system, which is making the necessary efforts to care for the thousands of Peruvians affected by this virus; and on the other hand, our economy is impacted and at risk of going backwards over the past 10 years.

In this difficult scenario, having successfully completed the first fishing season in the north central part of the country, is an extremely important achievement as it is the result of the effort and commitment of the workers and entrepreneurs of the Peruvian fishing industry.

The challenges to achieving this goal were neither few nor easy. Thus, we were the pioneers in designing and implementing strict biosecurity protocols, which demanded an investment of more than 41.3 million soles (the Peruvian currency), and which became benchmarks for other economic sectors. In addition, in order to verify the proper compliance with our safety protocols in the operation, we agree to voluntarily hire the international certification company SGS Peru, to audit all companies producing marine ingredients, members of the National Fishery Society (SNP).

In addition to meeting the allocated quota of 2.4 million metric tons, workers received more than 430 million soles in remuneration and the generation of fishmeal and fish oil exports is planned for $1 billion, a key contribution to the revival of the Peruvian economy.

But the contribution of the fisheries sector does not stop here. Over the past six months, the fishing industry has also made a commitment to serve its employees, the communities in their areas of influence; and also contribute to Peruvian society with a support and social support network that borders 20 million soles nationally, benefiting more than 450,000 people.

 This important support has been realized through the fisheries guild, and its decentralized arms (APROS), and in other cases, as an initiative of each company. One of Peru's most recent donations has been a medicinal oxygenplant for the city of Chimbote – one of Peru's main fishing ports – which will demand an investment of almost half a million soles, and which is being made possible by the contribution of the companies Pesquera Centinela, CFG Investment-Copeinca, Pesquera Exalmar and TASA.

As we can see, anchovy industrial fishing has been one of the sectors that led Peru's economic revival following the impact of COVID-19. However, this contribution is not conjunctural but permanent.

Thus, according to a recent report of the firm Apoyo Consultoría it is noted that, in a good year, fisheries GDP can account for 1.8% of national GDP. Of this important contribution, industrial anchovy fishing accounts for two-thirds, with 504 million soles, or 0.1% of GDP, for every half million tonnes caught. Hence the need to maintain a policy where fishing quotas are set in a technical manner, in order to preserve the resource and continue to contribute to the economy. Most importantly, however, this contribution of fisheries to GDP is not static, but dynamizing of the economy.

On the other hand, it is important to remember that industrial fishing generates more than 113 thousand jobs located along the Peruvian coast, where there is also an increase in the real income and expenditures of the inhabitants. In addition, according to a study by the Peruvian Institute of Economics, three indirect ones are generated for each direct employment in fisheries. Today that we see the loss of thousands of jobs, this is critical.

Another very positive impact of the sector is the currencies it generates. Thus, in a good year, fisheries contribute US$ 3.3 billion in foreign exchange, accounting for 7% of Peru's total exports; occupying the export of fishmeal and fish oil third in our economy's traditional exports.

On the other hand, the tax company also benefits from the contribution of the fisheries sector through the taxes it pays. Thus, in 2019 alone, 1,246 million soles was reached, an amount that exceeded the Minsterio budget (PRODUCE) in the same period in 415 million soles.

In short, fishing has been and is an engine of the Peruvian economy, and in this fight against the pandemic, its solidarity and commitment has been more than demonstrated.

Cayetana Aljovin

About the author

Lawyer at the Catholic University of Peru and MBA at Adolfo Ibáñez University in Chile. She has extensive experience in the private sector and public administration, having held the positions of Minister of Development and Social Inclusion, Minister of Energy and Mines and Chancellor of the Republic. She worked as a lawyer specializing in regulatory issues in the law firm Miranda & Amado where she became a partner. She is currently President of the Board of Trustees of the National Society of PrivateIty; Chairman of the board of Azerta Comunicación Estratégica Perú S.A.C.; Member of the Board of Interbank, IFS, TecnoFast, ECLAC, and Vice-President of the Amcham Arbitral Tribunal.