AGP Executive Report

Gamarra Crackdown: Gamarra’s micro and small garment traders in La Victoria say municipal inspections are hitting tiny 1-square-meter stalls with repeated fines that can shut businesses—reporting that about 7,000 have already been closed and calling for proportionality and due process. El Niño Readiness: Peru’s Navy will deploy vessels along the coast as El Niño-linked heavy rains approach, with President Fujimori briefing on the response plan and logistics support. Amazon Geothermal Mystery: Peru’s “Boiling River” in the Amazon (Shanay-Timpishka) is reported at up to 86°C over kilometers, with researchers pointing to heated groundwater rising through faults despite no nearby volcano. Mining Services Update: Major Drilling says all director nominees were elected at its AGM, with voting participation above 79%. Fintech Expansion: UIN’s BehaviorOS platform says it processed 300M+ transactions and generated 10M+ monthly behavioral triggers across Peru and other LatAm markets after a US$2M seed round. Insurance Ratings: AM Best affirmed AVLA Re and AVLA Perú’s ratings as stable, citing strong balance sheets and group support.

El Niño Hits Peru’s Fisheries: Peru’s anchovy catch has collapsed as warming seas disrupt distribution, with the first-season quota (1.91M tons) yielding only ~470,000 tons by early June; the Ministry of Production suspended central/northern fishing and industry warns the second season may also fail. Energy & Infrastructure: SES will deliver managed multi-orbit satellite connectivity for Peruvian Navy bases, aircraft and vessels, including secure encryption and operational control, with use aboard B.A.P. “UNIÓN” during VIEX-2026. Trade & Macroeconomy: Peru’s 2Q 2026 exports totaled US$109.413B, with BCR citing stronger traditional exports driven by higher prices and gold shipments. Mining & Metals Watch: Copper prices hold gains amid supply risks, including Chile/Peru output weakness and El Niño-linked disruptions. Construction/Industry Deal: Saint-Gobain moves into Peru’s construction chemicals market via acquisition of a local firm. Fresh Food Supply Chain: Norvento expands Latin America energy storage, while SIMFLO lands a Central America municipal pump project (El Salvador), signaling continued investment in utilities.

Peru Security & Organized Crime: Peru’s government says it arrested “Jhonsson Pulpo” in Bolivia, a major alleged leader of the “Pulpos” gang, after months of joint work with Bolivian police plus the FBI and DEA—an action that may disrupt leadership but won’t quickly end Peru’s extortion crisis. Diplomacy & Trade: The U.S. backed Peru’s decision to cut diplomatic ties with Iran, citing Peru’s concerns over “democratic deterioration” and risks to global trade via the Strait of Hormuz. Fresh Industries & Farming Resilience: Peru’s new president is pushing El Niño prevention measures in Piura, including delivering 20 water pumps to district mayors and urging Congress to speed up powers to tackle crime and instability. Climate Risk for Food Systems: Reports warn a “super El Niño” is intensifying extremes across the Pacific, with Peru’s fisheries already seeing anchovy disruptions as warm waters replace nutrient-rich currents. Digital Health: A new commentary argues cancer prevention is shifting toward hybrid delivery, with education and psychosocial support increasingly suited to digital platforms.

El Niño Risk for Peru’s Water and Food: Peru’s glacier loss is accelerating, with Inaigem warning the country has shed 59% of glacier surface in six decades—raising flood and water-supply risks for communities and agriculture. Climate + Fisheries Pressure: Industry voices warn El Niño is already hammering Peru’s anchovy fishing, with knock-on effects for marine feed supply. Shrimp Feed Crunch: DSM-firmenich flags a looming marine ingredient gap for shrimp aquaculture—estimating a 400,000 MT shortfall by 2028 as Peruvian anchovy supply is disrupted. Mining Finance in Peru: Precore Gold closed an oversubscribed C$6m private placement, pointing to Peru’s Arikepay Project as a key driver. Construction Sector Deal: Saint-Gobain is acquiring a Peruvian construction chemicals company, signaling continued investment in local building materials. Defense Connectivity: SES and the Peruvian Navy expanded multi-orbit satellite connectivity to strengthen maritime communications and operational control. Digital Finance Expansion: Plenti’s $3m seed round (led by Tether) will fund expansion into Peru and Bolivia, targeting cross-border payments and investments. Culture Meets Competition: “Aura farming” is taking off in Lima, with real-world dance battles built around online fame.

El Niño Readiness in Peru: Days into her presidency, Keiko Fujimori toured Piura with bulldozers clearing riverbeds and flagged agriculture as a top priority as NOAA forecasts a 69% chance of a very strong El Niño. Fresh Food & Supply Chain: Peru’s anchovy industry is bracing for El Niño impacts, with officials warning of knock-on effects for jobs and output. Port of Chancay Shipping: Repsol completed its first bunker delivery at Peru’s Port of Chancay, supplying 740 mt of VLSFO to a container vessel—another step for fuels services in the fast-growing logistics hub. Trade & Inflation Watch: Peru’s inflation rose to 4.44% year-on-year in August, and the economy is still expected to grow faster than the Latin American average in 2026. Diplomacy: Peru cut diplomatic ties with Iran amid accusations tied to terrorism and human-rights violations, adding pressure to regional political and energy dynamics.

Diplomatic Shock: Peru severed diplomatic ties with Iran, citing Tehran’s role in escalating Middle East conflict and disruptions to maritime transit through the Strait of Hormuz—while keeping consular relations to protect nationals. Trade & Logistics: DHL Global Forwarding acquired Uruguay’s Aero Cargas, moving from a partner model to direct operations and integrating the team into its Peru-Ecuador-Argentina-Chile cluster. Shipping Pressure: CSP Abu Dhabi reported a 44% H1 2026 container volume drop as Hormuz disruption reshapes regional cargo flows, adding to broader Gulf port strain. Mining & Industry: Glencore reiterated a copper growth push tied to assets including Antamina in Peru, positioning against a structural copper deficit. Fresh & Food Supply: El Niño is hammering Peru’s anchovy fishing and raising unemployment risk, while industry officials warn of wider impacts on coastal livelihoods. Energy & Climate Risk: Scientists warn Andes glacial lake outburst flood risk could mirror Nepal’s tragedy, with Argentina, Chile and Peru flagged. Regional Policy: Peru also moved to secure legislative powers to tackle its security crisis.

El Niño Fallout for Fishing: Peru’s industrial anchovy sector says it’s better prepared this time, citing stronger liquidity, improved debt structure, and more credit lines after the 2023 season collapse; still, officials warn the intensifying El Niño could disrupt quotas and delay the 2027 start. Inflation Watch: Peru’s CPI rose 0.07% in August, bringing year-on-year inflation to 4.44%, with price pressure led by alcohol/tobacco, housing utilities, and transport, while food cooled. Diplomacy & Energy Risk: Peru’s Fujimori government broke diplomatic ties with Iran, citing democratic deterioration, repression, and Hormuz-linked trade disruption—raising supply-chain and energy-price concerns. Mining Update: Solis Minerals began maiden diamond drilling at its Cinto copper project in southern Peru to test new targets from prior geophysics and surface findings. Peru Security/Weather Response: Peru declared a 60-day state of emergency in 893 districts across 22 regions and Callao due to intense rainfall risk tied to El Niño. Tech/Trade Signal: Peru’s trade surplus trend continues, with the BCR reporting sustained growth in recent quarters.

Maritime & Ports: Repsol completed its first bunker delivery at Peru’s Port of Chancay, supplying ~740 mt of VLSFO—another sign the port is becoming a Pacific maritime hub. Shipping & Trade: Cosco Shipping Ports reported 28.5% higher H1 2026 profit, with CSP Chancay Terminal up 68.2% in throughput to 201,773 TEU. Fisheries: El Niño is hammering Peru’s anchovy catch, with May landings down sharply (32,800 mt vs 1.3m mt in May 2025), raising unemployment risks across fishmeal-linked industries. Mining: Pecoy Copper posted new drill results from its southern Peru project, including a broad South Breccia intercept (804 m grading 0.34% Cu). Energy & Data Centers: Global Power Solutions says EsSalud talks may restart a proposed 224-bed hospital project in Chiclayo. Logistics Expansion: DHL Global Forwarding acquired Uruguay’s Aero Cargas, strengthening LATAM freight coverage that includes the region’s trade corridors. Policy & Macroeconomy: Peru’s trade surplus stayed on an upward track, with 24 consecutive favorable quarters reported by the central bank.

Peru Security: Peru says a kidnapped mining businessman in Trujillo was released and four alleged perpetrators were arrested after criminals disguised as police killed four companions during the abduction. Fresh Produce & Logistics: Vaighai Agro set up a Peru subsidiary to support commercial berry growers, while Peruvian blueberry operators expanded packing capacity and shipping dispatches as global demand keeps rising. Mining & Energy: Peru is moving forward with major electricity and irrigation projects worth over US$7B, and the country also issued updates tied to drilling permits for the Pucamayo project. Climate & Fisheries: New research links stronger El Niño conditions to hotter seas and shifting marine life, raising risks for fishing activity and seafood supply chains that include Peru. Culture & Heritage: LiDAR work at Machu Picchu uncovered a 2.5 km Inca trail tied to a ritual-use sacred mountain area. Governance: Fujimori sought parliamentary powers to push reforms across multiple areas.

Peru Retail Momentum: Chile’s Ripley Group says its Q2 profit jumped 59.8%, driven by Peru, where retail sales rose 13.5% in the quarter and up to 15% in the first half of fiscal 2026. Mining Security Shock: Peru opened an investigation into the kidnapping of a mining businessman in Trujillo and the execution of four companions after a fake police checkpoint. Agri Exports Watch: Peru’s mango sector faces a tough stretch—lower flowering from climate impacts, weak tech transfer, and long-running farm profitability stress—pushing calls for more R&D, training, and a “Marca Perú Mango” quality seal. Blueberry Growth Signals: Global projections put blueberry production at 3.4M tonnes by 2029, with Peru highlighted as a key growth engine alongside China. Food & Trade Disruption: El Niño-linked drought is forcing the Panama Canal to cut daily transits and impose draught limits, a direct headwind for regional shipping and fresh exports. Capital Markets: Boliden’s $1.3B deal to gain control of Nexa Resources adds major zinc and silver exposure across Peru and Brazil.

Mining Security Shock: A Peruvian mining businessman was kidnapped in Trujillo; attackers dressed as police intercepted his vehicle and killed four companions, including his partner, in front of Dirincri—raising fresh alarms about organized-crime infiltration. Mining Deals: Boliden agreed to buy Votorantim’s 64.68% stake in Nexa Resources for about $1.31B, creating a larger zinc-silver player with assets in Brazil and Peru, with closing targeted for Q1 2027. Agribusiness & Exports: Peru’s blueberry push stays in focus as dispatch capacity reportedly doubles to 30 containers per day, while growers prepare for the mango season under El Niño-linked weather risk. Policy & Governance: Peru’s government is moving to seek legislative powers to tackle the security crisis, while Fujimori also requests reform authority from Congress. Public Health Risk: Bird flu coverage highlights spillover threats to wildlife and mammals, including reported cases affecting sea lions in Peru and Chile.

Mining Deal: Boliden agreed to buy Votorantim’s 64.68% controlling stake in Nexa Resources for about $1.31B, creating a trans-Atlantic zinc-and-silver leader with Peru and Brazil assets; closing is targeted for Q1 2027. Security & Organized Crime: Colombia captured a senior Tren de Aragua leader, Luis Saúl Pérez Nieto, described as the gang’s main Peru coordinator, with U.S. DEA and SOUTHCOM backing. Peru Policy: Peru’s government is seeking legislative powers to tackle the security crisis, while Fujimori requested authority from Congress to push reforms across multiple areas. Fresh Food & Exports: Peru’s mango season is gearing up for 2026–27 amid El Niño pressure and weaker flowering, and Peruvian blueberry dispatch capacity reportedly doubled to 30 containers per day. Ports & Logistics: Peru-U.S. space cooperation was announced, and Peru’s shipping ecosystem also saw renewed focus on connectivity and capacity.

Security Overhaul Request: Peru’s President Keiko Fujimori asked Congress for 120 days of legislative powers to tackle the country’s worst security crisis, including a proposal to classify criminal organizations as terrorist groups. Defense & Maritime Readiness: The U.S. Navy deployed the Freedom-class littoral combat ship USS Minneapolis-Saint Paul to join UNITAS 2026 off Lima, boosting multinational coastal maritime operations. Food & Retail Branding: Brasa Peruvian Kitchen rebranded as ¡BRASA! Peruvian Superfoods, positioning Peru’s superfoods at its upcoming Toronto Pearson Airport outlet. Climate Risk for Peru: El Niño is putting 1.2 million people in Peru at risk, with scientists warning this season could be unusually intense. Agribusiness Disruption: Peru’s anchovy supply shock tied to El Niño is rippling into global fish feed markets, lifting demand for alternative proteins like insect-based feed. Industry & Trade Signals: Peru’s domestic demand grew 5.2% in 2Q 2026, while the economy forecast was raised to 3.4% for 2026–2027.

EV Charging Expansion: Anari Energy says its DC fast chargers are now operating in 40+ countries, with new South America entries including Peru for its Castor DC wallbox. Governance & Security Reform: Peru’s President Keiko Fujimori has requested legislative powers from Congress for 120 days, targeting reforms in security, prisons, taxes, labor, and also productive development across sectors like agriculture, mining, energy, and industrial infrastructure. Space for Industry: Peru and the U.S. launched a bilateral space council aimed at using space tech for disaster risk management, agriculture, anti-illicit crops, and deforestation mitigation. Strategic Minerals Pact: Chile, Argentina, Bolivia, and Peru signed a declaration to coordinate on copper and lithium supply chains and boost technical cooperation for the energy-transition boom. Fresh Produce Logistics: South African fruit exporters warn that port inefficiencies and higher logistics costs are straining shipments, pushing investment in tech and efficiency. Climate & Water Risk: New warnings link glacier melt to worsening flood risk and long-term water security threats across South Asia and Tibet. Agriculture Inputs Oversight: India’s Allahabad High Court said district magistrates lack authority to supervise fertilizer distribution under the Fertilizer (Control) Order, 1985. Mining Operations Watch: Hudbay filed an early warning tied to Panoro Minerals share changes, while separate reporting points to Peru’s zinc grade affecting silver output plans.

Strategic Minerals Pact: Chile, Argentina, Bolivia and Peru signed a declaration to coordinate on copper and lithium, including shared geological work, oversight criteria and joint research calls for multilateral support. Mining Disruption Watch: Silver output missed plans in Mexico, Peru and Chile due to a mine blockade in Mexico, zinc grade issues in Peru and a Chile snowstorm—showing how local constraints can outweigh price signals. Agri-Exports & Cold Chain: Peru’s blueberry push continues as dispatch capacity doubles to 30 containers per day, while El Niño is already reshaping mango season expectations. Port & Logistics Links: South Carolina Ports added CMA CGM’s AMERXL rotation to improve reefer access to Peru and other South American markets, underscoring how shipping schedules can move fresh-produce competitiveness. Climate Risk: Authorities warn El Niño is putting 1.2 million people in Peru at risk, with glacial-flood threats also highlighted across the Andes. Mining Finance: Hudbay filed an early warning tied to Panoro Minerals share changes, while brokers highlighted Hochschild’s Peru restart plans and valuation catalysts.

Mining & Metals Dealmaking: Boliden agreed to buy Votorantim’s controlling stake in Nexa Resources in a $1.3B all-share deal, creating a larger integrated zinc-silver producer and shifting Votorantim’s exposure from direct control to a ~7% strategic holding. Peru Fresh Industries & Agrifood: Peru’s blueberry exports are reported ahead of last season, with El Niño pressures also flagged as a risk to yields and export growth. Archaeology & Tourism Tech: Archaeologists using LiDAR identified 2.5 km of hidden Inca Trail-related roads and structures near Machu Picchu, adding new material for heritage research and visitor planning. Energy Transition Context: Coverage links the Iran war’s higher fossil-fuel costs to faster renewable adoption—relevant backdrop for Peru’s energy and mining supply chains. Local Governance & Skills: Peru’s domestic demand growth is cited alongside broader infrastructure and training moves tied to industry capacity building.