Generally, when we talk about crops we do it highlighting the main actors, which are the producers. Then we stop at the experts and researchers, making their work visible. When we touch on the commercial aspects we do so by publishing statistics emanating from business or marketing agencies. However, there are other actors that make it possible to materialize the marketing of products, which is the main objective of the industry, we refer to the logistics sector. 

We spoke with Paul Vargas Machuca, commercial director of AVM Soluciones Logísticas, to find out the level of impact they have had to face with the current global pandemic and to learn about their vision regarding the future of the industry.

He tells us that the main difficulties in carrying out his work, during the first week of quarantine, were at the time and operational cost level. Then, the biggest problem occurred in the port of Callao, which, after confirming positive cases of covid-19 among its personnel, had to take measures that affected the hours of operation of imports and exports, which resulted in immobilization of around 700 containers per day, increases in transportation rates, delays in exports, as well as cost overruns for warehouses and overstays.

What measures should be implemented, at the state or other levels, to facilitate your work to support foreign trade?

• New measures are being implemented, but I think they should come not only from the executive part, that is, from the Government and its ministries, but also from the operational part, since many times those measures, such as the facilitation of imports and exports, are being affected by the lesser number of people who are working in public and private entities. In our sector, many procedures are required to be carried out online. Importers and exporters urgently require the freezing of cost overruns, such as extra storage in ports or extra-port terminals, as well as overstays with shipping lines.

How has the shipment of Peruvian fruit to international markets been affected and what consequences have there been?

• The productive process in Peruvian agriculture has not stopped. Seasonal campaigns continue. The agroindustries that have their own packing are operating, while those that outsource packing are having some problems due to the reduction of personnel. A more worrisome problem is the allocation of empty reefer containers from shipping companies, currently there is a shortage of them and this is because there is not a regular return flow of empty containers from foreign ports.

What changes have you observed in the Peruvian fruit exporting industry in this context?

• More than a change, what we see is a process of adaptation, since agro-exporters are forced to abide by the provisions that the government dictates almost daily. 

What has been the logistics and reception situation in the destination markets?

• In the case of international markets, ports have continued to operate. In some places in Europe, like Italy and Spain, there are problems with the Covid-19. There are also some problems in the Latam region, such as in Brazil, Chile and other countries in the region. In the Asia area, China is currently recovering and its demand is increasing, as logistics operations are normalizing. For this reason it is important that we are in constant communication with our partners, suppliers, clients and agents abroad, in order to be able to monitor foreign trade in other countries in near real time.

How do you see the future of your post COVID 19 work and what prospects do you see for the industry in general?

• We know that this will be a difficult year since many of the projects of companies related to the agribusiness sector have been paralyzed or diminished due to uncertainty. In the case of Peru, the actions by the Ministry of Economy and Finance are gradually being transmitted and carried out. From the first week of quarantine, subsidies, early provisions of retirement funds, refinancing and debt restructuring for individuals and companies were activated. Likewise, the Reactiva Peru plan was finalized, a plan that will allow companies to access bank loans at lower interest rates than usual to be able to mainly comply with payment obligations of personnel and suppliers, and thus not break the payment chain.On the part of the Ministry of Foreign Trade and Tourism, measures have been taken to facilitate foreign trade operations. However, more actions need to be taken at the operational level with ports, extraport terminals, shipping companies, maritime agencies, cargo agencies and Customs, and other foreign trade actors, so that together they can really facilitate and streamline operations through mechanisms that allow procedures to be carried out online, so as not to put people at risk and, on the other hand, not to generate greater cost overruns to companies, and therefore to the final consumer.Finally, I think that this pandemic has put us in check from one moment to another, however, it has given us the opportunity to improve and / or correct our internal processes in the management of our work teams, as well as the relationship with other entities. public and private, so that our companies can generate greater value to the chain of agro-export of fruits and import of inputs and field materials.