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There is a lack of connectivity and security

Peru: Rains hinder normal development of exports

The rains and mudslides in recent weeks that have affected infrastructure works, have hindered the country's connectivity, preventing the normal development of the sector's activities. In addition, there are security issues that concern entrepreneurs, stated the Association of Exporters (ADEX).
 
The union's president, Juan Varilias Velasquez, asked the municipal central government and regional governments to implement preventive actions regarding the consequences of extreme climate change.
 
He stated that the governments should work on urban planning, drainage systems, early warning systems (gauges, etc.), strengthening research areas related to disaster prevention, promote new seed varieties that were resistant to moisture, and control the location of housing in insecure areas (near riverbeds for example), among other things.


 
Impact on the sector
ADEX partners from different parts of the country reported the need to restore connectivity and strengthen safety, as there have been cases of looting. Several truckloads of merchandise were raided in Huarmey.
 
According to another company, the road between Caraz and Lima continues to be interrupted, so producers can't transfer raw materials, or output their export offer, which entails the loss of perishable products. In addition, the lack of internet in Huaraz and Caraz makes it impossible for them to conduct bank transfers, which could cause problems with banks and financial institutions.
 
Agribusinesses that are provided with inputs for small farmers, an important part of the agricultural export chain, have also been affected. A company that exports cocoa stated that the cooperative that provides them with that product was unable to do so because it was giving priority to the recovery of its headquarters and distribution center, which were flooded by the rains.
 
"The roads linking farmers with the cooperative have been seriously damaged, so they are incommunicado," stated another exporter of cocoa who no longer has raw material.
 
The companies in the northern part of the country request the urgent rehabilitation of the Viru Liberty bridge and of the bridge over the river La Leche (on the way to Jayanca) to move their agroindustrial supply. They also stressed the need for information from the authorities on both works to plan their shipments.
 
Meanwhile, a company that supplies input de la Selva said that given the poor state of the roads, a cargo that was usually transported in two days now takes up to a week, which consequently increases prices and decreases supplies.
 
Senasa Inspectors
An agroindustrial company from Piura said that Senasa inspectors were unable to move to some areas of the region to continue with their inspections. Another company said they had seeds stored in the airport of Piura and that, due to the current situation, they would continue to keep them there until further notice, as they can't be moved.
 
Several companies suggested Customs reduced their storage rates, which are more expensive than other companies and which are at the limit of their capacity.
 
The lack of water also affects the fruit crops. A company that processes fruit pulp stated that Santa Rosa, which is north of Lima, hasn't had water for a week and that the fruits were falling from the trees and there was a risk of losing the crop. Another issue is security, as several trucks and the area's market have been attacked by looters.
 
Floods in Carapongo
The flooding of the Rimac River in Carapongo de Chosica seriously affected the AvendaƱo Trading Company SAC, which is associated to ADEX, as much of its facilities were destroyed by the waters. Losses are estimated at up to 7 million.
 
"The water entered the plant, flooded the whole area, and swept away the products," stated Rene AvendaƱo, the owner of the company, who was only able to salvage 18 of the 200 tons of quinoa he was ready to export.
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