Entrepreneurs see a business strategy there because they know there will be a shortage and in the coming months the value of the input will skyrocket

Food importers now set their sights on fertilizers

In recent months, there have been warnings about the shortage of food such as wheat, corn and sugar. But to what magnitude? Esteban Vargas, Dinet's Central Operations Manager, points out that large companies that used to import up to 500 containers a month with basic foods have stopped bringing between 100 and 150.

It is as a result of this that companies in this sector are looking at alternative markets and betting on the purchase of fertilizers. "They aim to change their mix," reveals the executive.

Entrepreneurs see a business strategy there because they know there will be a shortage and in the coming months the value of the input will skyrocket; "This way they hope to recoup their losses," he says.

Negotiations are being carried out with countries such as Brazil and Argentina, as there are currently no restrictions for this, he says. While organic fertilizers are an alternative, this solution might only work for small farmers, he says.

On the other hand, it is observed that imports of packaged products also suffer a fall. "It's not noticeable, but we see that (the number of containers) is down between 5% and 6% compared to the previous year," he notes.

Bonded warehouse
Despite the decrease in the number of containers entering the country in food categories, the warehouses of Dinet's distribution centers are at the top and the same happens with other logistics operators.

“We don't have excess capacity, we have clients who ask us for more space and there isn't any,” says Vargas. And it is companies in the retail sector that are beginning to increase the demand for spaces.

"We see that they import more appliances, technology, sportswear, grills, liquor, refrigerators," the executive details. This is due to the possibility of Peru qualifying for the World Cup.

“In 2020, companies imported cautiously, but when consumption rose they did not have time to react. There were sales, but not at the levels they expected,” he notes. In that sense, now they take their precautions.

Given the high demand, have the prices of the spaces increased? They remain, affirms Esteban Vargas.

"Due to political uncertainty, what we have been doing is negotiating in soles with real estate operators so that our clients are not affected by the exchange rate," he says.

Esteban Vargas assures that companies are now asking logistics operators to completely digitize their operation. “Warehouse automation is in demand. We have a retail client that has 30.000 square meters and has already requested the project from us”, says the executive.

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