Peru has a population of 34.4 million people.[1] The majority of Peruvians, 79%, live in urban regions,[2] while only 21% lives in rural areas.[3] The agricultural sector assumes 26% of total employment in Peru.[4] A sector that represents 7% of the national GDP.[5]
Despite the prosperity Peru and its agriculture have witnessed during the last two decades, this wealth has yet to reach the country’s smallholder farmers, the majority of which lives in poverty. Smallholders make up 80% of agricultural holdings, with plots of less than 5 hectares. Although the returns on such farms are significantly low, the lack of other opportunities pushes rural inhabitants to keep on working on these family farms. Thus, only a small percentage of farmers, mostly with large holdings, enjoy the country’s newly-gained wealth from agricultural exports.[6]
The top produced crops in Peru are sugar cane, potatoes, rice, bananas and fresh cow milk. [7] Peru’s top export commodities in terms of quantity are avocados, grapes, onions and shallots, berries, and prepared fruit. [8]
Minimum Wage
The minimum wage in Peru is set by law for the private sector at 1,025 Peruvian Sol (250 EUR) per month. It is based on 8 hours per day, with at least one day of rest per week.[9] It is estimated that the national minimum wage in Peru is below the poverty income level. Furthermore, approximately 70% of the workforce is in the informal economy where wages do not reach the level of a minimum wage.[10]
The Global Living Wage Coalition has developed 2 reference value studies for rural Peru based on the Anker methodology, one for living wage and one for living income.
Living Wage
The Anker Living Wage Reference Value in rural Peru is estimated at 1,960 Peruvian Sol (477 EUR) per month. This is the wage required for workers in a typical rural area of Peru to afford a basic but decent standard of living.[11]
Living Income
The Anker Living Income Reference Value is estimated at 2,475 Peruvian Sol (603 EUR) per month for a typical rural family of 2 adults and 3 children. This is the living income estimate for a typical family in rural Peru to cover the monthly cost of a basic but decent standard of living in 2023.[12]
Living Wage Reference Value, Rural Peru 
Living wage estimate updated for workers in a typical rural area of Peru to afford a basic but decent living standard. Global Living Wage Coalition.
Living Income Reference Value, Rural Peru
Living income estimate updated for a typical family in rural Peru to afford the monthly cost of a decent standard of living. Global Living Wage Coalition, 2020.
Banana Link
An organization based in the UK which focuses on raising awareness around the hurdles to the ethical trading of bananas and pineapples.
Global Coffee Platform
The Global Coffee Platform is the leader organization in sustainable coffee and has established ten country platforms including one in Peru.
Better Livelihoods in the gold sector
This report focuses on Solidaridad’s gold programme in Ghana and Peru.
Rokbar
Rokbar is a fully traceable and CO2 neutral chocolate produced, processed, made, and owned by women.
The External Costs of Banana Production
This report focuses on putting a price in the environmental and social issues surrounding the banana sector.