Camposol Perú coping with the challenges of Covid-19
Like almost all companies of the agriculture sector, Camposol was affected by the sudden logistics challenges caused by Covid-19.
After the experience with its operations in China since the end of February, with ports and distribution channels being closed and employees working from home, Camposol, the leading agro-industrial company in Peru, immediately focused on identifying the main risks in the supply chain for all its markets and decided to concentrate the commercialization of its products on the channels and clients with the least risk.
A resilient supply chain was established, from the field to the end customer, by adding more options for transportation routes, packaging plants, ports of destination, and distribution centers.
The demand for products considered “super foods," such as blueberries, avocados and citrus, increased in supermarkets, benefiting some of Camposol’s key products. Currently, the markets for healthy and convenience products are fairly stable. Many consumers buy more and higher quality food at the supermarket to eat at home as a result of the pandemic.
Avocados are among Camposol’s products that are most consumed outside the home and were affected by the closure of the restaurants. The increased demand of the retail sector partially compensated for this situation, and with the re-openings of restaurants in the recent months, the impact was attenuated.
In recent years, Camposol has invested heavily in the geographical expansion of the avocado business.
“Since 2017, we set ourselves the strategic goal of becoming a year-round player,” said Jorge Ramirez, chief executive officer of Camposol. “For avocados, this is possible with supplies from Colombia and Peru. We have grown very fast in Colombia where we surpassed the initial goal of 2,000 hectares in less than three years. This gives us an important critical mass, together with our 2.6 thousand hectares in Peru.“
Also in the blueberry sector, business investments have been affected by the pandemic. Even so, Peru has consolidated itself as the main exporter of blueberries in the world. According to estimates of the Peruvian growers’ association ProArándanos, exports will reach approximately 160,000 tons in 2020, which means a significant increase.
Camposol started its investments in Uruguay for two main reasons. The production model it had optimized for years in Peru would serve to improve the productivity and quality of the fruit from the mature areas that they bought, and new areas are planted with “easy peelers” and seedless varieties that the market demands.
“With the combination of Uruguay and Peru, we have covered the Southern Hemisphere window of seedless tangerines,” said Ramirez. “This year we have had very encouraging results, which show us that we are on the right track with our citrus crops, but we need to see how things will develop over time.“
With a view to future developments, Camposol is strengthening the commercial and logistics platforms in the United States, Europe and China, in addition to focusing on the gradual integration of ripening services, special packaging options and new distribution channels such as on-line sales.
Finally, the company is also evaluating the opportunities of increasing its market penetration on the U.S. West Coast, the United Kingdom and Spain, among others.
Key on-trend products
The value proposition of Camposol includes a high-quality portfolio of on-trend, branded, fresh food products with a perspective of year-round supply in the medium-term.
Currently Camposol concentrates its product range on 5 items:
• Blueberries: Camposol’s most important product in terms of value, available almost all-year-round, in fresh and frozen IQF.
• Avocados: From Peruvian and Colombian production, working toward year-round availability, in fresh and frozen IQF.
• Mandarins: Seedless varieties from Peruvian production complemented by recent investments in Uruguay to extend the marketing window.
• Grapes: Important marketing window during the last quarter of the year, before the start of the main season from the Southern Hemisphere.
• Mangos: Strongly developing product, in fresh and frozen IQF.
As a vertically integrated company, Camposol guarantees total control from farm to retailers. Sustainable farming methods emphasize a socially responsible and environmentally friendly business model that ensures food safety, product traceability and the well being of employees and communities, according to the company philosophy, “CCFFTF – Camposol Cares From Farm to Family.”