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Guano Supply Chains: Historical Lessons on Agricultural Resource Dependence

Author

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  • Gilles A Paché

    (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon)

Abstract

Guano, a natural fertilizer derived from seabird excrement, is exceptionally rich in phosphates, nitrates, and potassium, essential for crop growth and soil restoration. In the nineteenth century, Peru's islands contained vast deposits that fueled intensive agriculture, particularly in Europe. Extraction relied on immigrant labor under harsh conditions and required sophisticated coordination among local producers, traders, and maritime carriers. Exposure to storms, piracy, and political conflicts demonstrated that economic strength alone could not secure export flows. Reliance on a limited number of islands made supply chains highly vulnerable, highlighting the necessity of diversifying sources and maintaining strategic reserves. The guano trade provides early evidence that resilient agricultural commodity chains depend on proactive planning, logistical flexibility, and multi-stakeholder collaboration. Lessons from this historical case offer a framework for modern agricultural systems to withstand environmental, economic, and geopolitical shocks. By emphasizing anticipation, diversification, and operational margins, the guano case illustrates how continuity of procurement and agricultural productivity can be preserved, providing actionable insights for contemporary food security, sustainable fertilizer management, and the strategic handling of critical resources.

Suggested Citation

  • Gilles A Paché, 2026. "Guano Supply Chains: Historical Lessons on Agricultural Resource Dependence," Post-Print hal-05582105, HAL.
  • Handle: RePEc:hal:journl:hal-05582105
    DOI: 10.14738/tnc.1402.20189
    Note: View the original document on HAL open archive server: https://hal.science/hal-05582105v1
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    References listed on IDEAS

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    1. Vizcarra, Catalina, 2009. "Guano, Credible Commitments, and Sovereign Debt Repayment in Nineteenth-Century Peru," The Journal of Economic History, Cambridge University Press, vol. 69(2), pages 358-387, June.
    2. Hailes, Oliver, 2023. "From Guano to green hydrogen: food security and fertilizer disputes in international energy law," LSE Research Online Documents on Economics 120985, London School of Economics and Political Science, LSE Library.
    3. Rude, Emelyn, 2024. "Fishery Collapse and the American Fertilizer Industry: A Case Study of the Pacific Guano Company," Business History Review, Cambridge University Press, vol. 98(3), pages 613-635, September.
    4. Depraiter, Lisa & Goutte, Stéphane & Porcher, Thomas, 2025. "Geopolitical risk and the global supply of rare earth permanent magnets: Insights from China’s export trends," Energy Economics, Elsevier, vol. 146(C).
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