Peruvian produce exports hindered by political crisis
With the country immersed in a climate of instability, the produce export sector is warning about severe logistic challenges, which could hinder shippings and damage the country’s reputation as a trustworthy provider.
According to the country’s Exporters Association (ADEX), primary agricultural shipments totaled $1.3 billion between January and November 2022.
This represents an almost 80% increase year-on-year, with the U.S. leading destination markets with 25% of total shipments and a grand total value of $303 million.
Susana Yturry Fargo, manager of agro-exports of the industry association at ADEX, told FreshFruitPortal.com that the association’s biggest concern at the moment is the harm done to their image as an exporting country.
“Our reputation as a provider with a well nourished portfolio will undoubtedly be suffering the consequences of these issues in the coming months,” the executive said.
Failing to meet the established deadlines is a big problem that can cause even greater ones for both producers and importers.
However, Yturry explained that it’s been hard for the industry to put a contingency plan in place, due to the fact that the blockades are both “intermittent and unpredictable”.
“We have very important commitments coming, such as the mango campaigns and other fresh products that are highly requested by the U.S. market. And so the priority now is to ensure that the roadblocks and protests won’t damage logistics for these products”, Yturra said.
Gabriel Amaro, executive director of the Association of Peruvian Agricultural Producers' Guilds (AGAP), told FreshFruitPortal.com that this political crisis comes precisely in a year where the industry has achieved excellent quality for fruits and vegetables.
"We are currently coordinating with the central and regional government authorities so that they free the roads, and during these days as much shipment as possible leaves, with the support of the National Agricultural Health Service (SENASA), which always collaborates with the agricultural sector," the executive said.
Amaro assured that the association will continue working on alternative transportation routes in key points such as Ica, in order to minimize the impact as much as possible.
Other destination markets that could be affected by the current situation in Peru include Germany, which imported $244 million of Peruvian goods in 2022.
Exports to other countries such as Belgium, Colombia, Sweden, Canada, Italy, the U.K., the Netherlands and South Korea could also be hindered.