The Pacific Basin: Notes on Japanese Investments in Peru
Sklar, Joe
Japan is now the fourth largest investor in Latin America, ranking after the United States, West Germany and Britain. In trade volume with Latin America, Japan ranks third, having surpassed...
...31 - 237.4 375.2 600.3 391.7 306.9 Total distribution 1,542.5 1,707.9 2,191.2 2,522.2 2,002.5 'Preliminary...
...Japanese penetration of the Latin American economy is particularly apparent in Peru, where the Japanese are beginning to compete with the Americans for control of key ectors of the Peruvian economy -- mining and fishmeal...
...Two Japanese companies, Marubeni Iida and Japan Gasoline, built the state-owned refinery at La Pampilla, and the Nippon Electric Company built the Lurin satellite communication center...
...Sin soltar prenda15 Peru's Output, Export of Fishmeal In 1969 fishmeal supplies in Peru-the world's major sup- plier and the leading competitor for U.S...
...West German imports of fishmeal are expected to decline significantly this year...
...n fact, Japanese consumer goods seem to be growing in popularity in Peru...
...West Germany emerged as the largest single country market in 1969, accounting for 384,200 tons or over 23 percent of all Peruvian exports, compared with 396,900 tons or 19 percent in 1968...
...13) March 30, 1970, p. 13...
...For example, over half of Peru's iron ore is sold to Japan...
...Sociedad Nacional de Pesqueria and other sources...
...VIII, No...
...and its subsidiary, Cerro de Pasco), American Smelting and Refining Co., Marcona (a subsidiary of Cyprus Mines and Utah Mining and Construction), Phelps Dodge, and Anaconda...
...interests and one by Japanese (Taiyo Fishing...
...The annual average price at $177 per ton in 1969 was markedly above the $134 average for 1968 and was the highest since 1966...
...Luisa Co...
...Reprinted from U.S...
...European ports, rose sharply from a low of about $137 per ton in January to a high of nearly $228 per ton in November...
...companies...
...Of the twenty-six largest fishmeal producers, eight are controlled by U.S...
...OIGA, Lima...
...I __ 260.5 237.4 375.2 600.3 391.7 Production -- 1,282.0 1,470.5 1,816.0 1,921.9 1,610.8 Total supply - 1,542.5 1,707.9 2,191.2 2,522.2 2,002.5 Exports . 1,260.0 1,304.5 1,560.9 2,083.2 1,655.6 Apparent consump- tion m_ 45.1 28.2 30.0 47.3 40.0 Stocks, Dec...
...In trade volume with Latin America, Japan ranks third, having surpassed Britain...
...exports of soybean meal-declined by 519,700 metric tons, equivalent to the crude protein content of 35.9 million bushels of soybeans...
...5 and 6 (September and October, 1969...
...For background on the current situation in Peru, see NACLA Newsletter, Vol...
...There are, however, indications that fish meal is considered to be a vital ingredient in some poultry rations despite its extremely high price relative to other meals...
...III, Nos...
...Fishmeal Production and Consumption (in tons) Peru Production 1966 1,470,500 1967 1,550,000 1968 1,992,000 Japan Consumption 28,000 35,000 47,424 Pro- Consumpduction tion 285,000 363,000 330,000 432,000 280,000 420,000 Source: The Peruvian Times, March, 1969...
...of Agriculture, Foreign Agriculture (Vol...
...Other Western Europe _ 556.0 26.7 595.5 36.0 Eastern Europe...
...Japan has not neglected the manufacturing sector eitner...
...Thus, while Peruvians suffer protein deficiency, the high-protein fishmeal produced in their country is sent abroad to feed the livestock of major industrial nations (note that the reprint following this piece indicates Peru's fishmeal exports are the leading competitor for U.S...
...Peruvian supplies and exports in 1969 amounted to 2.0 million and 1.7 million tons, respectively...
...There are now assembly plants for Nissan and Isuzu Motors, Toyota Company, Honda and Suzuki motorcycles, and Nivico products...
...The decline resulted in a sharp increase in prices and exports fell by 427,600 tons-the equivalent of 29.5 million bushels of soybeans...
...Originally, Peruvian fishing and fishmeal companies were indigenously controlled operations...
...Dept...
...of Peru and is mining zinc and lead...
...company was voided by the Peruvian government for undisclosed reasons...
...Western Hemisphere...
...The 1969-70 fishing season catch limit is currently set at 8.5 million metric tons compared with last season's catch of 10.0 million tons...
...soybean meal exports in feed...
...In terms of production, foreign-owned companies are expected to account for 40 percent of the 1969 total...
...But as this industry became more profitable, and as competition and inefficiency began to take their toll among the more marginal operations, foreign capital and technicians began to move in...
...has been negotiating with Peruvian businessmen for the opportunity to jointly develop the Gran Bretana zinc mine...
...In 1962, Peru displaced Japan as the world's leading fishing nation...
...companies, it is estimated, now control 95 percent of the Peruvian mining industry...
...If achieved, this could result in an output of 1.6 million tons of meal (see "Peruvian Fishmeal Situation," p. 14, Foreign Agriculture, Feb...
...This pattern, typical of trade relations between the developed and underdeveloping countries, is evident in the following chart which compares the amounts of fishmeal consumed domestically with the amount produced in the two countries, Peru and Japan...
...143.4 6.9 103.7 6.3 West Germany 396.9 19.1 384.2 23.2...
...This decline coincided with the early part of the 196970 fishing season, which began September 1, 1969...
...The result of foreign control over Peruvian fiShmeal companies is that almost all that almost all that Peru produces is exported--with a large share going to the United States and Japan--rather than consumed domestically...
...These companies include such corporate giants as Cerro Corp...
...Stocks during calendar 1969 dwindled from a high of over 490,000 tons on May 1 to less than 50,000 tons on September 1. In 1969, average monthly prices for Peruvian fishmeal, c.i.f...
...Exports to the United States and Canada declined by 361,400 tons in 1969-the crude protein equivalent of 25.0 million bushels of soybeans...
...2,083.2 100.0 1,655.6 100.0 Total exports excluding those to the...
...The recent changes in West Germany's mixed feed regulations will accentuate this import decline...
...Mitsui has also purchased the Sta...
...Virtually all of Peru's fishmeal is produced from anchovies, which are subject to seasonal catch limitations...
...Exports to Europe totaled 1.25 million tons in 1969, slightly above those in 1968...
...This decline, together with reduced exports to other Western Hemisphere destinations, accounted for 96 percent of the total decline...
...Prices have declined significantly since January 1970, as a result of more favorable catch results and some buildup in stocks...
...PERU'S FISHMEAL EXPORTS Area or country of destination 1968 1969 1,000 1,000 metric Per- metric Per- tons cent tons cent United States and Canada 550.9 26.4 189.5 11.4 South America...
...it reflects the reduced catches of anchovy...
...The Toho Zinc Co...
...Minas de Chapi del Peru, a copper mine, is owned by Mitsui Mining and Smelting, Nippon Mining, Toho Zinc, and the Overseas Mineral Resources Development Co...
...Peru's main iron mining operation is owned by Marcona Mining (a subsidiary of Cyprus and Utah Mining and Construction), which ships the ore to the Kawasaki Steel and Nisshin Steel Companies in ships built in the Kawasaki Ship-Building Company's yards...
...Due to additional investment by Mitsui, the facilities were expanded during 1968-69...
...Japanese mining companies, however, are beginning to make important inroads...
...As of March 5, prices were quoted at $175 per ton...
...1,388.9 66.7 1,362.4 82.3 ESTIMATED SUPPLY AND DISTRIBUTION OF PERUVIAN FISHMEAL Item 1965 1966 1967 1968 19691 1,000 1,000 1,000 1,000 1,000 metric metric metric metric metric tons tons tons tons tons Stocks, Jan...
...278.1 13.3 267.5 16.2 Japan and all others _. 157.9 7.6 115.2 6.9 Total...
...Japan also purchases a major portion of the minerals mined in Peru by U.S...
...Japanese investors have also established a stake in the Peruvian fishmeal industry...
...9, 1970...
...This latter contract was awarded to Nippon Electric after an agreement with a U.S...
...U.S...
...Interestingly, in calendar 1969, 257,700 tons or 83 percent of the decline in production and 389,600 tons or 91 percent of the decline in exports occurred in the last 4 months of the year...
Vol. 4 • April 1970 • No. 2
