Coca economy in the Upper Huallaga

and Government of Peru efforts to stem the flow of coca from the Upper Huallaga Valley, this report presents data on the crop"s role in the regional economy. Information covers activities directly related to coca cultivation and processing, as well as those dependent on income generated from coca production. Major findings include the following. Coca cultivation in the region is estimated at 50,000-100,000 ha, with annual dry leaf yields believed to be about 1.3 MT per ha. About 40% of production leaves the valley in paste form and about 60% as cocaine base. The total value of this production is estimated at $540 million, of which $375 million accrues to cultivators, small-scale paste producers, and wage laborers. In contrast, legitimate agriculture brings in less than $50 million. The valley"s labor force is estimated at 78,000, including about 15,000 migrant workers from surrounding provinces. While many split their time between coca and other crops, coca production accounts for the full-time equivalent of 40,000 workers. Wage laborers in coca earn about $12 per day, 2.5-8 times more than laborers in other crops. Cultivator/owners gross about $3,900 per year from a hectare planted in coca, which is 3-11 times more than the value of other crops. Recommendations for further study are provided.