Digest

This podcast tells the story of how the US government's war on drugs, specifically its efforts to curb cocaine production in South America, led to the unexpected rise of the Peruvian blueberry industry. The episode begins with a personal anecdote about the narrator's love for blueberries, setting the stage for exploring the surprising connection between blueberries and the war on drugs. The episode delves into the history of the war on drugs, focusing on the US government's multi-pronged strategy involving military intervention, development aid, and free trade initiatives. The episode highlights the importance of providing farmers with incentives to grow alternative crops instead of coca, and the US government's implementation of aid for trade programs to encourage legitimate trade and economic development. The episode explores the challenges of convincing coca farmers to switch to other crops, including the high profitability of coca and the presence of militant groups. The episode describes the US government's efforts to promote asparagus cultivation on the dry sandy coast of Peru, which led to a boom in the asparagus industry. However, the episode discusses the challenges faced by Peruvian asparagus farmers as the market became oversaturated due to competition from Mexico and China, prompting them to seek a new export crop. The episode introduces Jose Antonio Gomez Basan, a Peruvian businessman who returned to his country after gaining experience in the fruit industry abroad and recognized the potential for blueberries in Peru. The episode details Jose Antonio's efforts to establish a blueberry supply chain, from securing contracts with major supermarkets like Costco to overcoming challenges like skepticism about the Biloxi blueberry variety. The episode highlights the role of Oprah Winfrey's endorsement of blueberries in driving consumer demand, which, combined with Peru's favorable growing conditions, led to a surge in blueberry exports and consumption in the US. The episode concludes by assessing the impact of the aid for trade program on Peru. While the program faced criticism for its cost and unintended consequences, it significantly boosted Peru's agricultural exports and contributed to economic development.

Outlines

00:00:00

The Blueberry Connection: From the War on Drugs to Global Markets

This episode explores the surprising connection between the war on drugs and the rise of the Peruvian blueberry industry, highlighting the US government's efforts to incentivize alternative crops and the impact of trade policies on global markets.

00:02:27

The War on Drugs and its Unexpected Consequences

The episode delves into the history of the war on drugs, focusing on the US government's multi-pronged strategy involving military intervention, development aid, and free trade initiatives to curb cocaine production in South America. This strategy included providing farmers with incentives to grow alternative crops, such as asparagus and blueberries.

00:15:40

The Blueberry Revolution

The episode introduces Jose Antonio Gomez Basan, a Peruvian businessman who returned to his country after gaining experience in the fruit industry abroad and recognized the potential for blueberries in Peru. He spearheaded the development of a blueberry export industry, overcoming challenges like skepticism about the Biloxi blueberry variety and securing contracts with major supermarkets like Costco. The episode highlights the role of Oprah Winfrey's endorsement of blueberries in driving consumer demand, which, combined with Peru's favorable growing conditions, led to a surge in blueberry exports and consumption in the US.

Keywords

Q&A

• How did the US government's efforts to combat cocaine production in South America lead to the growth of the Peruvian blueberry industry?

  The US government implemented a multi-pronged strategy involving military intervention, development aid, and free trade initiatives to curb cocaine production. This included providing farmers with incentives to grow alternative crops, such as asparagus and blueberries. The combination of these efforts, along with economic reforms in Peru, created a favorable environment for the development of a blueberry export industry.

• What were some of the challenges faced by Peruvian farmers in transitioning from coca cultivation to other crops?

  The high profitability of coca and the presence of militant groups made the transition difficult and dangerous. Farmers faced threats and violence, and the lack of infrastructure and market access for alternative crops made it challenging to switch.

• How did the Oprah effect contribute to the success of the Peruvian blueberry industry?

  Oprah Winfrey's endorsement of blueberries on her show significantly increased consumer demand for the fruit. This created a market opportunity for Peruvian blueberry exporters, who were able to capitalize on the growing popularity of blueberries in the US.

• What are some of the unintended consequences of the US government's aid for trade program in Peru?

  The program led to increased competition for American farmers, particularly asparagus farmers, who faced a decline in their market share. Additionally, the program was expensive, costing American taxpayers hundreds of millions of dollars over decades.

• Was the war on drugs successful in reducing cocaine production in the Andes region?

  While the drug trade no longer dominates the economy in the Andes region, it has not been completely eradicated. Coca cultivation has shifted to new areas, such as the rainforest, and the drug market continues to exist. However, the program has been successful in converting a region previously dominated by drug cartels into a more productive supplier of legal agricultural products.

Show Notes