The example of Peruvian asparagus

A Report by the Agricultural Health and Food Safety Program of the Inter-American Institute for Cooperation on Agriculture (IICA)

Improving competitiveness and market access for agricultural exports through the development and application of food safety and quality standards

The example of Peruvian asparagus

Tim M. O’Brien Inter -American Institute for Cooperation on Agriculture - IICA Coronado, Costa Rica

Alejandra Díaz Rodríguez Comisión para la Promoción de Exportaciones – PROMPEX Lima, Peru

July, 2004

CONTENTS

Acknowledgements

2

Summary

3

I. Description of the asparagus production chain

4

1.1 1.2 1.3 1.4

4 4 7 9

Peru’s agricultural exports Asparagus production in Peru Socioeconomic importance Main problems addressed in the asparagus production chain

II. Elements of change in the asparagus production chain

10

2.1 2.2 2.3 2.4

Export promotion policy Associative Efforts Commitment to the safety and quality of the asparagus produced Establishment of quality standards

10 11 13 13

III. The role of Codex Alimentarius in the asparagus production chain

14

3.1 Participation of Peru’s government and private sector in the process of drafting Codex standard on fresh asparagus 3.2 Implementation of the standards in Peru and the level of participation 3.3 Quality costs

14

IV. Conclusions and recommendations for future projects

22

Bibliography

23

16 20

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ACKNOWLEDGEMENTS The authors wish to thank the leaders of the various public and private institutions that have made the development of asparagus production possible in Peru, and especially the representatives of the institutions and companies visited, for their valuabl e support for the preparation of this document, and the Inter-American Institute for Cooperation on Agriculture (IICA) for its institutional support: Foreign Agriculture Service (FAS) - United States Department of Agriculture Inter-American Institute for Cooperation on Agriculture (IICA) Kevin Walker, Director, Agricultural Health and Food Safety Program Freddy Rojas, Representative in Peru Export Promotion Commission (PROMPEX) Bernardo Muñoz, Agro and Agro-industry Manager Fausto Robles, Adviser Peruvian Asparagus and Vegetable Institute (IPEH) Jorge Pablo Fernandini, President Beatriz Tubino, General Manager Frío Aéreo Asociación Civil Jorge Checa, President Alvaro Salas, General Manager AGROPARACAS S.A. Antonia Lujan, Head of Quality Assurance Carlos Salas, Plant Engineer APEISA Ramon Aparcana, General Manager ATHOS S.A. Jose Castilla, Operations Manager Carlos Arana, Head of Plant Melissa Ganosa, Head of Quality Control Complejo Agroindustrial Beta Lionel Arce, General Manager Juan Gallegos, Head of Quality IQF DEL PERU Francis Watson, Quality Control Manager Joaquin Balarezo, Technical Manager PROAGRO Carmen Rosa Garcia, Head of Exports Carlos Tellez, Head of Operations

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AN EXAMPLE OF SUCCESSFUL USE OF CODEX ALIMENTARIUS: ASPARAGUS IN PERU SUMMARY Peru is currently the world’s leading asparagus exporter, having overtaken other important producers such as China and the United States, and has gained worldwide recognition for the quality of its product. This prompts a number of questions. How has this industry been so successful in an increasingly demanding and competitive global market? What factors of change have made it possible to establish a sustained industry that has had a major impact on Peru’s economy, creating jobs and generating foreign exchange? Since asparagus was first grown in Peru in the early 1950s, the industry has blossomed despite having to contend with various climatic events , non-tariff trade barriers that affect access to certain markets, domestic macroeconomic measures that do little to help agriculture, the poor organization of producers and public institutions, and little capital investment or investment in technology. Although some of these weaknesses have yet to be tackled, in 2003 asparagus exports were worth US$206.69 million. Asparag us accounted for 24.41% of Peru’s total agricultural exports and provided jobs for over 50,000 people along the coast of the country. The Government and private enterprise encouraged the industry to address the problems that existed in the asparagus production chain by establishing cooperation mechanisms. Two organizations were created that are now the most important in the asparagus sector: the Peruvian Asparagus Institute and Frío Aéreo Asociación Civil. These organizations enable producers and exporters to pool resources with public institutions. With the State’s assistance, they engage in research, technology transfer, market studies and export drives, sanitary activities and quality promotion. Another factor of change that has contributed to the success of asparagus in Peru is the sector’s commitment to food safety and quality, with “competitiveness through quality” being incorporated into strategic business plans. The asparagus industry has made great strides in implementing good production practices and food safety and quality management systems. The HACCP system clearly having served as a springboard for implementing other management systems designed to ensure overall quality. Standard-setting for asparagus has also played a big part in making companies more competitive as well as more efficient and transparent in the market place. A special committee is responsible for establishing Peruvian Technical Standards for Asparagus. The fact that the process is transparent and all the stakeholders in the ch ain are involved maximizes the acceptance and voluntary implementation of new standards. In this context, the Codex Alimentarius standards play an important role, since they are explicitly accepted as the international benchmark for food standards. In the case of the Codex standard for Asaparagus, Peru took part in international standard-setting at the meetings of the Codex Committee on Fresh Fruits and Vegetables (Mexico) and the Twenty-fourth Session of the Codex Alimentarius Commission (Geneva), where its delegates presented the country’s position and safeguarded national interests. This organizational outline for establishing national standards is planned to be adopted for use with other agricultural exports. All the factors of change that are associated with the success of Peru’s asparagus industry have promoted public/private alliances, the creation of private sector associations, capital investments and the introduction of modern technology and quality assurance, all sustained by strong leadership in both the private and public sectors. The leadership role assumed by various agricultural entrepreneurs and public officials was critical to establishing consensus-building mechanisms among producers, processors, exporters and the Government. The function of these mechanisms is to ensure productivity, quality and profitability, and to pinpoint and solve the chief problems affecting asparagus exports. These mechanisms support an export-promotion policy that encourages and supports producer associations, stimulates competitiveness through quality enhancement that promotes continuous improvements within the firms involved , thus enabling them to better respond to the dynamic changes in the international market.

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I. DESCRIPTION OF THE ASPARAGUS PRODUCTION CHAIN 1.1 PERU’S AGRICULTURAL EXPORTS Agricultural exports are worth over US$800 million to the country each year , a sparagus being one of the m ost important products having experienced strong growth over the years (Figure 1). In 2003, asparagus replaced coffee as Peru’s biggest agricultural export earner. Figure 2 shows the percentage breakdown of Peru’s agricultural exports in 2003, with asparagus and coffee accounting for nearly half of the total. FIGURE 1. EVOLUTION OF AGRICULTURAL AND ASPARAGUS EXPORTS 900.00

FIGURE 2. PERCENTAGE BREAKDOWN OF PERU’S AGRICULTURAL EXPORTS 250.00

800.00 US$ x million

600.00 150.00

500.00 400.00

100.00

300.00 200.00

50.00

100.00 0.00

0.00 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Agricultural Exports

US$ x million

200.00

700.00

Vegetables 3% Peppers 3% Grape 3%

Sugar 2%

Evaporated Milk 2% Avocado 2%

Others 36%

Mango 4% Coffee 21% Asparagus 24%

Asparagus

Source: Peru Customs Service: Prepared by – PROMPEX

Source: Peru Customs Service: Prepared by - PROMPEX

1.2 ASPARAGUS PRODUCTION IN PERU ASPARAGUS IN PERU Asparagus growing in Peru dates from the early 1950s. The first crops were planted in the Viru valley, as part of a small family project to export canned white asparagus to Denm ark. Growth was slow, limited to the department of La Libertad and fragmented after 1972 following agrarian reform. Asparagus production began to take off in earnest from 1985 onwards. The Ica Farmers’ Association was keen to replace traditional crops with export crops, and, with funding from the U.S. Agency for International Development (USAID), explored the opportunities in the southern United States. Based on its observations, the Association evaluated a number of promising crops at its San Camilo Expe rimental Station (melons, paprika, green beans and asparagus). Asparagus was the most interesting, given the prices that could be obtained when the product was not in season in North America. The farmers were then invited to take part in an associative project involving the cultivation of 500 ha of green asparagus. The Association would oversee the project, build and operate the 1 packing plant, and export all the production . USAID paid the fees of experts who provided advice. The first step was a visit by a specialist from the University of California, Davis, who had recently created the UC-157 variety. He confirmed the viability of the project and provided information about how to manage the crop. This was followed by a visit from a vegetable crop expert who helped the technical staff of the Association’s experimental station set up the seedbeds and gave the producers advice about crop management, packing and exporting. At the same time, the Association made the necessary contacts for the design and management of a packing plant. Seeds of the new UC-157 hybrid variety, in F1, were imported from California Asparagus Seed and Transplants, Inc., and the seedlings were planted in a 1.8 ha field at the San Camilo Experimental Station. For the first time in Peru, seeds were planted in high beds irrigated by micro-sprinklers, to obtain seedlings. The results were excellent; a very high percentage of the seeds germinated and the seedlings were very homogeneous. The seedbed was the biggest of its kind ever 2 seen in the world . 1 2

Robles 1997. Robles 1997.

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The quality standards set were based on those of California but even more demanding, to ensure acceptance. When harvesting began in mid-November 1986, 70% of the production was exported as planned and excellent prices were obtained in the North American market. Following the optimal results obtained by green asparagus producers in Ica, producers in other valleys became interested in replicating the experience. Crops were planted in the Chincha, Nasca, Cañete and Huaura valleys, and other valleys and irrigated savannah along the coast. A real boom in exports ensued. Packing plants were set up and the asparagus that was not exported as fresh produce began to be frozen and canned, also for export. In the Chincha and Cañete valleys, a Spanish canning company installed a processing plant and signed contracts with farmers for the production of canned white asparagus for the European market, especially Spain. The acreage planted with white asparagus in the department of La Libertad increased considerably, where the new Chavimochic irrigation project developed important areas. Desert pampas in this region are now used for agriculture. The yields obtained for both green and white asparagus were very high from the outset, thanks to the excellent climatic conditions and loose soils of the Peruvian coast, which is the world’s largest natural greenhouse. Two harvests per ye ar are possible in some valleys and three harvests in two years in others. Production of up to 20,000 kg pe r hectare per year has been achieved. As the acreage increased, Peru rapidly overtook rival exporting countries, including traditional producers such as Mexico, Spain, the United States and China. Furthermore, Peru overtook these countries with less than half their acreage, because it had the highest yields in the world - an average of over 9000 kg per hectare. 3

The total asparagus acreage in Peru is now roughly 20,000 hectares divided equally between white and green asparagus. Over 95% of national production is concentrated in Ica, Lima and La Libertad (Figure 3). There are now various private sector asparagus groups in Peru. Included are the Peruvian Asparagus and Vegetable Institute (IPEH), which represents the industry, and Frío Aéreo Asociación Civil, which has a center for perishable produce with modern cold storage facilities at Jorge Chavez international airport, which handles 80% of fresh asparagus exports. Peru also has the world’s largest asparagus freezing company and packing plant, and the en tire industry is owned by national capital. The industry applies sets of national standards that make it possible to provide products of satisfactory quality, as demonstrated by the permanent international demand. The asparagus is processed in plants with adequate infrastructure, and products of the highest quality are exported to the world’s most demanding markets. With assistance from the State, every effort is made to ensure the products’ safety and quality, with the goal to establish the HACCP system t hroughout the national food industry. To meet HACCP requirements, the asparagus firms are implementing good agricultural practices and other management systems to guarantee safety and quality from farm -to-table and exercise social responsibility throughout the chain. They have demonstrated a great capacity to bring the asparagus industry into line with the various standards and regulations required by international trade. FIGURE 3. ASPARAGUS-GROWING AREAS

LA LIBERTAD Trujillo

ANCASH Huarmey Huaur a

LIMA

Cañete Chincha Pisco

ICA

3

(Photo: F. Robles) Ministry of Agriculture.

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PRESENCE IN INTERNATIONAL MARKET S Peru is currently the world’s leading asparagus exporter, having overtaken other major producers such as China and the United States. Figure 4 shows the strong growth of Peruvian asparagus exports compared with those of China. Peru’s exceptional climatic conditions and geographic location make it possible to achieve the highest yields in the world. Peru produces practically the same amount as China, on less than half the acreage. FIGURE 4. EVOLUTION OF ASPARAGUS EXPORTS: CHINA AND PERU 250.00

US$ x million

200.00

150.00

100.00

50.00

0.00 1995

China

1996

1997

Peru

1998

1999

Linear (Peru)

2000

2001

2002

2003

Linear (China)

Source: China Customs Prepared by: Agricultural Sector - PROMPEX

ASPARAGUS EXPORTS In 2003, Peru’s agricultural exports were worth US$846.6 million (FOB). The asparagus industry accounted for US$206.69 million, or 24.41% of the total. Asparagus is marketed in three presentations (canned, fresh and frozen). In monetary terms, the first two account for around 90% of the asparagus exported (Figure 5). FIGURE 5. EXPORTS OF PERUVIAN ASPARAGUS (2003)

Fresh 52%

Canned 40%

Frozen 8% Source: Peru Customs Service: Prepared by - PROMPEX

Exports of fresh green asparagus have grown steadily in recent years (Figure 6), unlike exports of canned asparagus (Figure 8). The United States continues to be by far the most important market, currently purchasing 73.6% of exports (Figure 7). Although the U.S. continues to import more of the product year after year, its importance as a market has been declining slowly due to the gradual growth of other markets. This is a positive situation reflecting a sensible exporting policy implemented by national packing companies. The main market for canned asparagus is Europe, particularly Spain (Figure 9), with most frozen asparagus finding its way to the United States and Spain.

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FIGURE 7. PERCENTAGE BREAKDOWN OF FRESH ASPARAGUS MARKETS IN 2003 (US$ x million FOB)

FIGURE 6. EXPORTS OF FRESH ASPARAGUS

US $ FOB

Vol. Kg.

120.0

Netherlands

100.0

Spain 8.1%

United Kingdom 6.6%

8.9%

France 0.5% Germany 0.5% Italy 0.4%

Million s

80.0

Others 1.5%

60.0 40.0 20.0

United States

0.0

73.6% 1994

1995 1996 1997 1998

1999

2000 2001 2002 2003

Source: Peru CustomsService: Prepared by - PROMPEX

Source: Peru Customs Service: Prepared by - PROMPEX

FIGURE 8. EXPORTS OF CANNED ASPARAGUS

FIGURE 9. PERCENTAGE BREAKDOWN OF CANNED ASPARAGUS MARKETS IN 2003 (US$ x million FOB)

US $ FOB

Vol. Kg. France 19%

100 90

United States 8%

Millions

80

Australia 4%

Germany 3% Netherlands 3%

70

Others 7%

60 50 40 30 20 10 0

Spain 56% 1994

1995

1996

1997

1998

1999

2000

2001

Source: Peru Customs Service: Prepared by - PROMPEX

2002

2003

Source: Peru Customs Service: Prepared by - PROMPEX

1.3 SOCIOECONOMIC IMPORTANCE In recent years, the growth of Peru’s primary industries (mining and inputs for agroindustry) has slowed, while the agricultural sector has shown strong growth. In this process, agroindustrial exports have grown and created new jobs by raising the productivity of the regions involved and, consequently, achieving better levels of development. Development in the areas where asparagus is produced is mainly due to exports of this vegetable, which have energized local economies. In socioeconomic terms, the departments of Ica and La Libertad have one of the highest levels of development growth in the country, based on factors such as economic development and job opportunities, setting them apart from other areas. As far as employment opportunities are concerned, asparagus production is much more important than that of traditional crops in the areas concerned, such as cotton, corn and rice. Including the offfarm jobs created, the asparagus industry provides work for an estimated 50,000 people along the coast of Peru, 60% of who are women. This is important in terms of the efforts to provide equal job opportunities, as men account for over half of the country’s Economically Active Population (56%). Efforts are now being made to replicate the success of the asparagus industry with other products like artichoke and red pepper, taking advantage of the industries installed infrastructure . In 2003 alone, the growth of these products created more than 2400 new jobs in the countryside. The Peruvian Asparagus and Vegetable Institute (IPEH) predicts that in 2004 they will generate roughly 10,000 more new jobs.

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More stable employment (photo T. O’Brien).

More employment for women (photo T. O’Brien).

By implementing improved food safety standards and quality management systems, the asparagus companies have also generated additional social benefits . The implementation of good agricultural practices and social responsibility programs are also making a positive contribution to the economic and social development of the regions involved. Incorporating the concept of social responsibility into the business strategies of asparag us companies has proved to be an important way of adding social value while helping to shield the industry from emerging barriers to trade. This aspect contributes to the industries further development, the generation of better incomes and contributes to the general well-being of society. These efforts consist mainly of internal company policies concerning the adoption of environmental standards and improvements in working conditions and the well -being of the labor force. The results of implementing good agricultural practices have been remarkable. These practices include integrated pest management, dune forestry, biodiversity conservation practices, the safe use and management of agrochemicals, proper waste disposal and the implementation of septic tanks and appropriate latrines, all with a view to reducing the negative environmental impact on water, soil and air. These practices are being implemented very creatively, optimizing the use of resources so that safety and quality are not exclusively the domain of large companies (see photo on page 9) . Workers receive training in standards, mainly regarding asparagus quality, hygiene, health, safety and labor well-being. This is another important element in developing local capabilities, since it helps reduce losses and minimizes the exposure of workers to agrochemicals and other health risks. This has resulted in increasing the efficiency of workers. The training also helps improve the quality of their work, an important factor for increasing productivity and, therefore, the firms’ chances of making bigger profits. If workers are familiar with the standards, they understand why it is necessary to work in a different way and how the changes implemented are going to improve the overall production system. When th ey are well trained, workers also understand that they are part of an integrated system and that the performance of one sector affects the performance of another. Furthermore, when people work for different companies that use the same standards, it is easier for them to do a good job and be efficient, because they are already familiar with the systems of work. Better working conditions in terms of hygiene, quality, the minimizing of risks from agrochemicals and environmental conservation benefit not only the asparagus business but also the workers and their communities. Obviously, educating workers helps to improve their quality of life and that of their families and in turn the region’s general population. Actual results show that the asparagus industry has developed a greater capacity to adapt to the various standards required in trade . This is sustained through the preventive approaches of the HACCP system and good agricultural and manufacturing practices, which provide the basis for the minimum requirements established in the current technical standards and regulations. These characteristics of the asparagus industry provide an efficient framework for its sustainable development, i.e., development that is economically viable, respectful of the environment and socially equitable.

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Practices for conserving biodiversity: Forested dunes Photo: T. O’Brien)

The creative implementation of good agricultural practices: hand-built charcoal-insulated cold storage room (Photo: IPEH)

1.4 MAIN PROBLEMS ADDRESSED IN THE ASPARAGUS PRODUCTION CHAIN In Peru, the production chains of asparagus and other agricultural exports have had to contend with a series of problems stemming from the trading system, which is geared to foreign markets. This complex system includes supply, product flows from the production areas to the different processing and consumption centers, and the infrastructure - the road network, transportation and processing and marketing facilities (collection centers, processing plants, the cold chain, ports and airports). This system is operated by various individuals and public and private institutions (farmers, associations, collectors, manufacturers, exporters, the customs service, civil servants involved in the agricultural sector, health and safety, transportation, taxation, etc.), all of which are bound by various national and international standards. The operation of this trading system depends basically on macroeconomic and sectoral policies related to the prices of inputs, subsidies, tariffs, investments, exchange rates, interest rates, fiscal policy, and a factor that cannot be controlled - the weather. No single company, sector or ministry can solve the problems related to agricultural exports; rather, a joint effort is required from all those with a stake in the system. All it takes to halt exports or make products uncompetitive is one grave mistake or a failure on the part of only one of the parties involved in the export chain. The following are some of the difficulties that had to be overcome in the asparagus production chain. Prompt action on these matters was key to making the chain more competitive. a.

Lack of organization and business skills. This limited the ability to solve problems at different points in the chain adopting a business approach.

b.

Lack of mechanisms for building consensus between producers and manufacturers and exporters. There was a good deal of mutual mistrust and the collaboration required for export products was non-existent.

c.

No mechanisms for building consensus between producers and the Government, due to the absence of clear policies and the fact that producers had no one to speak on their behalf.

d.

Technology research and transfer was limited and no agency or institution was responsible.

e.

Little was being done to improve the plant health status of fresh asparagus exports affected by the pest Copitarsia incommoda.

f.

Few efforts were made to promote safety and quality assurance systems, limiting the capacity to demonstrate to consumers that the products were safe and of the required quality.

g.

Lack of national norms and standards designed to ensure safety and quality with an integrated approach throughout the whole chain, from field-to-table, harmonized with international standar ds and meeting the most stringent demands of the consuming countries.

h.

Problems with the cold-storage facilities for perishable produce.

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The Government and private enterprise encouraged the industry to address the problems that existed in the asparagus production chain by establishing cooperation mechanisms. Two organizations were 4 created that are now the most important in the asparagus sector: the Peruvian Asparagus Institute (IPEH) and Frío Aéreo Asociación Civil. These organizations enable producers and exporters to pool resources with public institutions and contribute to the negotiations among the associations and the Government agencies. With the State’s assistance, they engage in research, technology transfer, market studies, export drives, sanitary activities and quality promotion.

II. ELEMENTS OF CHANGE IN THE ASPARAGUS PRODUCTION CHAIN 2.1 EXPORT PROMOTION POLICY The Export Promotion Commission (PROMPEX), a state body under the wing of the Ministry of Foreign Trade and Tourism, was created by means of Legislative Decree No. 805, of 3 April 1996. Its mission is to help develop Peru’s exports through concerted action with the country’s private sector and the different public institutions responsible for foreign trade. PROMPEX’s specific objective in the case of ag ricultural exports is to make both agricultural and agroindustrial products more competitive in international markets. The Commission focuses on activities aimed at organizing producers and exporters, raising productivity and improving quality, as these factors are considered the chief constraints to exports. Its strategy is to strive for competitiveness based on quality rather than price and focus on the special characteristics of the country’s products, or how to export them with more value added. One of PROMPEX’s main activities in the agricultural sector has been to encourage and support the creation and operation of product -specific associations or institutes. In most cases, the key has been participatory strategic planning, with agreement being reached on the implementation of activities of common interest identified and approved by consensus. The Commission was responsible for promoting the creation of the two most important associations in Peru’s asparagus industry: the Peruvian Asparagus Institute and Frío Aéreo Asociación Civil. As already mentioned, quality is another of the key aspects of the export promotion policy. PROMPEX carries out a series of activities aimed at improving the quality of food products and of the management systems of export firms. For example, the Commission: -

promotes standard -setting and the harmonization of regulations, guidelines and recommendations related to food quality and safety with international norms, particularly those of the Codex Alimentarius, and

-

supports the adoption by the export firms of good agricultural and manufacturing practices, safety and quality management systems, and the principles of social responsibility.

These efforts are designed to make the companies competitive and ensure that they continually seek to improve their safety and quality standards and achieve maximum efficiency and effectiveness. This equips them to respond better to changes in international markets and recognize emerging issues that could pose a threat or offer opportunities as far as food safety and quality are concerned. As a result of these strategies, technical standards committees have been set up for asparagus and other important agroindustrial exports, and technical assistance and training programs have been instituted to help agricultural exporters implement good production practices , safety and quality management systems (HACCP, ISO 9000) and the principles of social responsibility. As well as developing business expertise and the supply of export products, PROMPEX endeavors to penetrate markets. With the IPEH, it promotes asparagus in the most important international fairs, underlining its quality. Its efforts to help consolidate and diversify markets include studies on competitiveness in China.

4

In August 2003, in view of the success of the business model implemented by the asparagus industry, the coverage of the Peruvian Asparagus Institute was recently expanded to include other vegetables.

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2.2. ASSOCIATIVE EFFORTS The Peruvian Asparagus and Vegetable Institute (IPEH) Created in 1998 with support from PROMPEX, the IPEH is a nonprofit association of companies that produce and export canned, fresh and frozen asparagus. Prompted by the success of the asparagus industry’s business model, in August last year the Institute broadened the scope of its work to include other vegetables, especially artichoke and Spanish red pepper, to which the model is also being applied. The IPEH’s members account for 80% of asparagus exports. The IPEH has become the communication channel that local and foreign government agencies prefer to use to deal with crosscutting issues that will benefit and further the progress of the asparagus industry. It is the only organization of agricultural exporters to have created an Association of Fresh Asparagus Importers in the United States, the main market for fresh asparagus. This has enabled it to establish direct contact with the American authorities and resolve problems that affect exports. It played a key role, with the Government, in the international negotiations for the renewal and expansion of the Andean Trade Promotion and Drug Eradication Act (ATPDEA). The IPEH also conducts a range of priority research projects on plant health and related topics, to ensure the safety and quality of primary production. These projects include: -

Study of alternatives to the quarantine treatment of fumigating with methyl bromide, which is currently required for Peruvian fresh asparagus entering the United States;

-

Techniques for eradicating pests on the farm, using integrated pest management (IPM); and,

-

Genetic improvement, agronomic management, plant physiology management, with the National Agrarian Research Institute (INIA).

and

post-harvest

The IPEH recently received special recognition for its important contribution to research for agricultural exports. The IPEH has an agreement with the National Agricultural Health Service (SENASA) for the joint development of IPM in pilot areas of the main valleys where asparagus is grown. The project, entitled “Integrated pest management of asparagus with emphasis on Copitarsia incommoda in the main valleys where Peru’s agricultural exports are grown,” will be implemented on 600 ha of land. The objective of this project is to improve the plant health status and commercial quality of fresh asparagus for export affected by the pest Copitarsia incommoda. The organization of asparagus producers will also be improved by setting up committees on the use of IPM, training in and the dissemination of IPM techniques, and the implementation of a computerized information system for processing and integrating data. Another of the IPEH’s commitments with respect to quality is standard-setting for asparagus. It plays an active part in the drafting and dissemination of the Peruvian Technical Standards for Asparagus adopted by the special committee created for that purpose. It is also promoting the application of good agricultural practices through the project “Adoption of Good Agricultural Practices and Strengthening of the Asparagus Production Chain”, with support from the Inter-American Development Bank (IDB). This project aims to improve the quality of Peruvian asparagus by fostering the adoption of good agricultural practices on 54 asparagus farms and a total of 3800 ha of land, training specialized trainers. Other IPEH activities include statistical information, the dissemination of information via bulletins, active participation in the dissemination of U.S. regulations to combat bioterrorism, and the promotion of Peruvian asparagus at the most important international fairs. At the local level, it organizes two annual events: the Symposium on Asparagus and Vegetables and Asparagus Day.

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Frío Aéreo Asociación Civil Frío Aéreo Asociación Civil, created in 1998 with assistance from PROMPEX, is an association of exporters of perishable produce (mainly fruits, vegetables and flowers). To ensure that produce for export receives proper post- harvest handling prior to shipment, it set up a modern Perishable Goods Center at Jorge Chavez Airport and a logistical system that provides optimal conditions for the handling and conservation of produce. This cold storage facility, the largest and most modern in Latin America, has met a real need as far as overseas shipments are concerned. Previously, produce was received and loaded onto the ramps of planes in the open air, with a very real risk that the cold chain would be interrupted and the produce’s shelf life reduced. The facility has a large room where produce is received, weighed and inspected by National Agricultural Health Service (SENASA), customs and the officials from the National Agency Against Terrorism (DIRCOTE ). Some 29 firms are currently partners in Frío Aéreo and 85% of all air-freighted perishable exports pass through its facilities. It is therefore playing an important role in the development of the asparagus industry. The asparagus industry has had to completely build a professional community to compete in international markets, promoting quality in every area. Nearly 80% of green asparagus exports are airfreighted, mostly to the United States. Peru is at a disadvantage because of its distance from the American market. Transportation costs (airfreight) are equivalent to up to 46% of the value of the product. Frío Aéreo has enabled the asparagus industry to achieve progress in a number of areas. It can now control all stages of the cold chain and product quality, and has an information system and a joint program for purchases. There is also greater access to airlines, making it easier for exporters to find space on flights and obtain competitive rates. By controlling the cold chain, the industry can control the temperature from the packing plant to the plane. Frío Aéreo even issues a ranking of the temperatures achieved by the different exporters and airlines . The length of time that airlines leave the produce outdoors while it is being loaded is also controlled. The use of thermal blankets for the pre-shipment stage ensures a correct cold chain, with a variation in temperature of no more than 1°C from the cold rooms to the plane. Furthermore, Frío Aéreo plays an important role in standard-setting for asparagus by participating actively in the drafting of Peruvian Technical Standards for Asparagus (harmonized with the Codex Alimentarius standard), in quality control by adhering to the Peruvian Technical Standards for Sampling and Fresh Asparagus, and in the daily information on quality controls at the export terminals. In order to develop a new export culture, which is very important for competing in the international market and achieving recognition of Peruvian asparagus as a high-quality product, Frío Aéreo is endeavoring to consolidate the application of Peruvian Technical Standard NTP 011.101:2001 ASPARAGUS. Fresh asparagus r equirements. All lots entering Frío Aéreo are inspected for quality based on the standard, as an additional control measure. The information is then disseminated among its clients through the Quality Standard for Peruvian Exports of Fresh Green Asparagus. It is used as a benchmark by exporters, and is also an important instrument for protecting consumers and exporters alike. This quality inspection has led to a sizable increase in exports of top -quality asparagus, according to the classification established in the standard (Figure 10) . Frío Aéreo uses the information system to give the industry a daily report of the produce exported by each exporter to the five main destinations. With input from all the producers, it also prepares a general projection of exports for the entire crop year, on a week-by-week basis. This makes it possible to program the hiring of aircraft and supplies of the various inputs. This information is shared with the recipients (clients) so they can better manage sales (see tables 1 & 2) . The program for standard-setting and joint purchases run by Frío Aéreo has made it possible to standardize packaging inputs, thereby making supplying inputs more efficient and to better organize and negotiate purchases.

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Temperature control using thermal blankets (Photo: Frío Aéreo)

Storage in transit ( Photo: Frío Aéreo)

2.3 COMMITMENT TO THE SAFETY AND QUALITY OF THE ASPARAGUS PRODUCED Safety is the most important, perhaps even the decisive, element in the quality of asparagus or any food product. However, food safety alone is not enou gh. It must be accompanied by other elements of quality demanded by consumers that go beyond the requirements of the health authorities. Quality, in the broad sense of the term, is vital to compete in the global marketplace. This is one of the key concerns of Peru’s export promotion policy and its success depends on the safety and quality of the food products produced. It establishes the framework for the support programs provided by PROMPEX to the agricultural export sector, through which standard-setting is promoted and exporters are helped to apply good agricultural and manufacturing practices, HACCP systems and ISO 9000 and the principles of social responsibility. Other important elements in the asparagus chain are the actions undertaken by the Minis try of Agriculture with regard to plant health and agricultural practices, and by the Ministry of Health, with respect to the surveillance and control of production in packing and processing plants. These elements complement the commitment of the productive sector, which is directly responsible for food safety and is constructing a relatively successful global system to ensure the safety and quality of its asparagus. This global approach ensures the safety and quality of Peruvian asparagus throughout the chain: on the farm, with the implementation of good agricultural practices; in the processing stage, through the HACCP system; and in storage and shipping, through the control of the cold chain in the case of fresh asparagus. The asparagus industry also applies other quality systems that are compatible with the HACCP system, which clients are demanding to ensure quality but also that environmental management and principles of social responsibility are implemented. Other systems have also been set up to guarantee the security of the logistical chain.

2.4 ESTABLISHMENT OF QUALITY STANDARDS PROMPEX realized how important standard -setting was to make and keep companies competitive and achieve greater efficiency and transparency in the market. The food control system also needed to be modernized as quickly as pos sible. The Commission therefore supported the creation of the Asparagus Standards Technical Committee, requested by the productive sector, so that companies could ensure minimum quality standards for asparagus. All the sectors involved in standard -setting take part in the Asparagus Standards Technical Committee, set up under the aegis of the National Institute for the Defense of Competition and the 5 rd Protection of Intellectual Property (INDECOPI ) on November 3 , 1998. The members are: the Peruvian Asparag us and Vegetable Institute, Frío Aéreo Asociación Civil, representatives of Agriculture, the General Environmental Health Directorate (DIGESA) of the Ministry of Health, the 5

INDECOPI, through the Commission on Technical and Trade Regulations (CRT), is the national standard- setting body and is responsible for approving the Peruvian Technical Norms (NTP) for all sectors, whose application is voluntary. The NTP are prepared by the Standards Committees that make up INDECOPI, with support from public and private institutions. Also, the CRT of INDECOPI is the national accreditation body and is responsible for determining the technical competence of the pu blic and private entities invol ved in testing, calibrating and certifying the uniformity of products and quality systems.

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Ministry of Production, the Crop Protection Committee of Lima’s Chamber of Commerce (PROTEC), and certification laboratories. PROMPEX operates the Committee’s Technical Secretariat. The Committee’s mission is to establish quality specifications for asparagus based on international standards. Applied in the different stages of production, these specifications ensure the quality and competitiveness of Peruvian asparagus, so that products can be marketed at home and abroad. The Committee drafts the “Peruvian Technical Standards for Fresh, Frozen and Canned Asparagus”; lays the groundwork for the voluntary application of technical standards; and strengthens the integration of the sectors involved in improving asparagus quality. Its main strategies are the exhaustive study of national and international standards, particularly those of Codex Alimentarius, so as to harmonize with them, and the drafting of standards by consensus and based on all the scientific and technical information available. This Committee has been responsible for harmonizing the Peruvian Technical Standards for Asparagus with those of Codex Alimentarius. In the case of the requirements standard, it took part in international standard-setting at the meetings of the Codex Committee on Fresh Fruits and Vegetables (Mexico) and the Twenty-fourth Session of the Codex Alimentarius Commission (Geneva), where its delegates presented the country’s position and worked to safeguarded national interests. This organizational model for establishing national standards is set to be adopted for other agricultural exports. The Committee’s standard-setting efforts are based on the requirements of the productive sector, which has the most guidelines and recommendations for the application of good agricultural practices and methods for evaluating the biological stability of canned asparagus and other testing methods. As Codex Alimentarius possesses only a limited amount of information, the Committee also references other technical background data, according to the procedures established for good standard-setting practices. So far, the following Peruvian Technical Standards for Asparagus have been established: NTP 209.403:2003 ASPARAGUS. Control of the stability of canned vegetables. Routine method. Establishes a routine method for evaluating the biological stability of units taken from a lot that do not have defects that could influence the results. NTP 209.404:2003 CANNED ASPARAGUS. Determining fibrousness. This standard establishes a method for determining the fibrousness of canned asparagus. NTP 209.402:2003 ASPARAGUS. Good agricultural practices . Establishes good agricultural practices for asparagus production that will ensure a safe and healthy product, free from pollutants that could harm consumers and from sanitary problems (presence of and/or damage caused by pests). Good agricultural practices combine a series of technologies and techniques that emphasize integrated pest management, natural resource and environmental conservation, an d the minimizing of hazards to human health. NTP 011.109:2 001 ASPARAGUS. Fresh asparagus requirements. It establishes the minimum requirements (size, tolerances, presentation, marking and labeling, pollutants and hygiene) that fresh asparagus must meet to be marketed. NTP 209.401:2001 ASPARAGUS. Hygiene practices for processing fresh asparagus . Establishes hygiene practices for handling (cultivation and collection of the crop, washing, cutting, selection, packaging, refrigeration, storage, transportation, distribution and sale) of fresh asparagus for human consumption, to guarantee a safe and healthy product. The standard deals with the processing of asparagus for marketing as fresh produce.

III. ROLE OF CODEX ALIMENTARIUS IN ASPARAGUS PRODUCTION CHAIN 3.1 PARTICIPATION OF PERU’S GOVERNMENT AND PRIVATE SECTOR IN THE PROCESS OF DRAFTING CODEX STANDARDS ON FRESH ASPARAGUS As already mentioned, the Asparagus Standards Technical Committee, set up under the aegis of INDECOPI, drafts the Peruvian Technical Standards for Asparagus. The Committee comprises representatives of all the sectors involved in setting standards for asparagus (i.e., the production, consumption and technical sub -sectors ), to ensure that decisions are reached by consensus and the

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standard-setting process is transparent. The state -run body PROMPEX serves as the Committee’s Technical Secretariat. Various government agencies provide an enabling environment for the drafting of the technical standards. They facilitate and promote joint efforts by the organizations involved; provide international, regional and national technical background information; play an active part in the drafting of standar ds; and help disseminate the standards, to ensure that the productive sector implements them. An interesting feature of the Asparagus Standards Technical Committee is that it holds decentralized sessions in the areas where the vegetable is grown, to encourage the productive sector to take part. The main responsibility for asparagus safety and quality rests with the productive sector. It contributes valuable information based on the experience it has gained in producing and exporting the vegetable, provides technical and scientific assistance, shares its experiences and the quality requirements for specific markets, and implements the guidelines contained in the Peruvian Technical Standards. Others stakeholders involved in the standard-setting process also provide technical and scientific assistance, and give analytical support through the certification laboratories represented on the Committee. Since implementation of the Peruvian Technical Standards is largely a voluntary matter, it is important that all th e stakeholders in the chain be involved in drafting them. If the process is transparent and standards are adopted by consensus, industry is more likely to implement them. The standards of the Codex Alimentarius play an important role, since they are recog nized internationally as the benchmark for the drafting of food standards. Accordingly, the Peruvian Technical Standards for Asparagus are harmonized with those of Codex Alimentarius. In particular, the Peruvian Technical Standard NTP 011.109:2001 ASPARAGUS. Fresh asparagus requirements, reflects the Committee’s contribution to the international standard-setting process of Codex Alimentarius. The usual harmonization process was largely unnecessary, as Peru’s standard incorporated international standards tha t had already been approved. The Peruvian standard drew on the draft Codex standards for asparagus prepared by the Codex Committee on Fresh Fruits and Vegetables, including important aspects related to the quality of Peruvian asparagus. The country’s position regarding the draft standards was stated at various meetings of Codex Alimentarius. Naturally enough, the productive sector was especially interested in this process because, thanks to Peru’s large share of the asparagus market, it was able to parti cipate directly in the drafting of an international Codex standard. Peru sent a delegation to the Ninth Session of the Codex Committee on Fresh Fruits and Vegetables, held 9-13 October 2000 in Mexico, comprising representatives of the productive sector (Frío Aéreo) and the public sector (PROMPEX). Only a representative of the public sector had taken part in the previous session. At that time, the process of drafting the Codex Standard had reached Step 6, when countries are asked to review the text prior to its adoption. Peru’s position, established by the Asparagus Standards Technical Committee, was set out in Working Document 11 circulated during the session. Thanks to its participation, the country was able to secure the inclusion in the Codex Standard for Asparagus of important quality-related concerns, such as the 6 minimum diameter of shoots and the size of green asparagus . With this new point of reference, in February 2001 the Asparagus Standards Technical Committee established Peruvian Technical Stan dard NTP 011.109:2001 ASPARAGUS. Fresh asparagus requirements7. Using a new innovative format, this standard contains illustrations of all the classes of asparagus, to ensure uniform interpretation of quality requirements and thus facilitate quality inspe ctions of asparagus. By way of the normal Codex Alimentarius process, the draft Codex Standard for Asparagus had reached Step 8 and was due to be approved at the Twenty-fourth Session of the Codex Alimentarius Commission, held 2-7 July 2001 in Geneva, Switzerland. 6

A request was made that the grade of green asparagus be measured 2.5 cm from the base of the stem rather than at the mid- point, basing same on the quality of Peruvian asparagus, which, thanks to climatic c onditions, are usually thicker and conical in shape. 7 The National Technical norms of Peru are developed by T echnical Standards Committees and presented for public comment for a time defined by the regulation before it is approved by INDECOPI.

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Having taken part in meetings of the Codex Committee on Fresh Fruits and Vegetables, Peru knew that some draft standards are not always adopted by the Codex Alimentarius Commission, or that many are modified substantially before being approved. Situations where it was important for the countries interested in the standards in question to have played an active part in the meeting by sending a delegation. The stakeholders therefore felt it advisable that Peru participate in the July 2001 session, to support the adoption of the final draft as a Codex Alimentarius standard. The Peruvian delegation to the Twenty-fourth Session of the Codex Alimentarius Commission comprised representatives of PROMPEX, General Environmental Health Directorate (DIGESA) and the Ministry of Foreign Affairs. At that meeting, the Codex Alimentarius Commission adopted the draft Codex Standard for Asparagus 8. The main results the country achieved by taking part in the drafting of Codex standards are: -

Approval of the Codex Standard for Asparagus, which includes the quality and safety criteria that the country proposed

-

Drafting of the Peruvian Technical Standard for Fresh Asparagus, harmonized with Codex Alimentarius

-

Participation of all the stakeholders in the chain, ensuring technical consistency and that the country’s interests were represented

3.2 IMPLEMENTATION OF STANDARDS IN PERU AND LEVEL OF PARTICIPATION APPLICATION OF THE HACCP SYSTEM IN THE ASPARAGUS INDUSTRY In Peru, the HACCP system is the benchmark for sanitary surveillan ce. The country’s regulations on sanitary surveillance and the control of foods and beverages are contained in D. S. N° 007-98-SA. They establish sanitary quality and safety controls for all food and beverage factories, based on the HACCP system. Official sanitary certificates for exports are issued only in exceptional cases and at the exporter’s request. It is not a pre-shipment document nor is it required by customs to ship products. The regulations call for the establishment of complementary sanitary standards to support the implementation of the HACCP system. These standards and guidelines have not yet been established, nor have deadlines been set for implementing the HACCP system in the food industry. Provisions have been introduced specifically for canned asparagus and hydrobiological products, because they are such important exports. These sectors must have sanitary clearance (an official export certificate) in order to export their products, and this can only be granted if the HACCP system is applied. • Canned asparagus Major efforts are being made to consolidate the safety of asparagus in the canned food industry, reflecting the responsible attitude of the firms involved. The objective is to establish the HACCP system throughout the sector, to ensure safety and prevent problems in overseas markets like the ones that occurred in Spain in 1997. The reaction to an alleged case of botulism was understandably strong and certain adjustments and improvements had to be made, especially as regards heat treatment, one of the critical points in the process. The sanitary standards met by the canned asparagus sector include the provisions contained in the regulations on sanitary surveillance and the control of foods and beverages, which adhere to the General Principles of Food Hygiene of the Codex Alimentarius and the Code of Hygiene Practices for the production of canned asparagus. Only DIGESA-authorized plants are allowed to export. Many of the firms concerned have opted for HACCP certification through international certifying institutions. • Fresh asparagus In January 1998, a Commission on the HACCP system for fresh asparagus was set up with the participation of the Peruvian Asparagus Institute and PROMPEX. This was in answer to the fresh asparagus sectors concerns over the Ministry of Health proposing to mandate that the industry adopt the HACCP system for exports, or comply with other equivalent procedures if they did not 8

The Commission adopted the Codex Draft Norm for Asparagus, with the following amendments: Section 2. Minimum requirements. Amended to read as follows: "free from damage caused by improper washing or soaking." Section 3.2 Determination of grade on the basis of diameter. Amended to make reference to a single point for measuring the diameter of the asparagus, stating th at "The diameter of the shoots is to be measured 2.5 cm from the base of the cutting"

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implement the HACCP system. The Commission did lots of ground work and an excellent job of promotion that stimulate d the implementation of the HACCP system in the fresh asparagus sector. As well as conducting a sanitary evaluation of the packing plants, the Commission carried out a survey to determine the situation in the sector regarding the implementation of the HACCP system (how well firms understood it, how willing they were to implement it and how much progress they had made so far). The companies concerned said they considered the HACCP system either very important or extremely important. In their view, the main obstacles to the implementation of the system were the ambiguity of the regulations, the lack of uniformity and approaches for applying them, the lack of adequate technical advice and the amount of time required. Accordingly, the Commission decided to initiate a process ot ensure the safe production of fresh asparagus, even when it was not required by the target markets. The sector thus pre-empted any requirements that might be established by importing countries. The analysis also took into account the U.S. Food Safety Initiative, given the special interest in minimizing microbial risk in fresh fruits and vegetables. The Commission drafted the Code of Hygiene Practices for the Processing of Fresh Asparagus, geared to the application of the HACCP system in the sector and based on the standards of the Codex Alimentarius. This document gave rise to Technical Standard NTP 209.401:2001 ASPARAGUS. Hygiene practices for the processing of fresh asparagus. Having drafted the standard, the members of the Commission began implementi ng the HACCP system. This activity was funded by the European Union-PROMPEX Agreement on Exports. Implemented by the firms as a group, the project invol ved a professional from each firm who was to help implement the system , while PROMPEX monitored and supe rvised the companies’ progress in implementing it. These same companies are now satisfactorily conducting the quality audits required by their clients and some have opted to obtain HACCP certification through international certifiers. The project to insti tute the HACCP system also paved the way for the implementation of the Export Quality Program - PROMPEX. This program has developed important management tools for monitoring and supervising the firms’ progress in implementing quality systems. The instruments available include quality profiles of every firm that make it possible to evaluate and determine the progress of the project in a systematic and objective way. This profile can also be used to pinpoint elements that require urgent action to ensure product safety and quality, and to reorient the activities during the project. Thanks to the excellent organization and work of this program, the European Union-PROMPEX9 Agreement on Exports secured ISO 9000 certification.

Implementation of the HACCP system in the fresh asparagus sector (Photo: F. Robles)

9

Control of shelf life of fresh asparagus (Photo: T. O’Brien)

Diaz 1999.

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IMPLEMENTATION OF OTHER QUALITY SYSTEMS When the companies decided to implement the HACCP system, they realized the importance of applying the system starting on the farm, keeping exact records of pesticide application and using integrated pest management to minimize the use of chemical products, controlling pathogens at the fertilization stage and adopting other agricultural practices at the primary production level. Based on the requirements of the HACCP system, the companies applied good agricultural practices in a systematized way. To satisfy the requirements of the main supermarkets in Europe, they recently opted for the EUREPGAP certification developed by EUREP (Euro Retailer Group), an association of large European supermarkets that dominate the food sector. The companies have also opted for other certifications to promote product safety and quality even more, such as the SQF 2000. This allows them to label their products “SQF 2000 Quality Certified,” demonstrating to their clients their commitment and ability to produce safe food under the HACCP system and in a manner compatible with ISO 9000, verified by an independent agency. Because of the importance of the UK market, some companies also have British Retail Consortium (BRC) certification. This standard requires the adoption and implementation of the HACCP system, an effective and documented quality management system and control of environmental standards in the plant, products, processes and personnel. Another standard being implemented fairly quickly is Business Anti-Smuggling Coalition (BASC) Certification, which upholds the security and protection standards of international trade. This certification helps companies meet U.S. standards for combating bioterrorism, adding security control management in the logistical chain to their safety and quality systems. Thus, the application of the HACCP system in the asparagus industry has served as a springboard for the implementation of other management systems to guarantee all aspects of safety and quality, and respect for the principles of social responsibility. Therefore when the need arises to apply new harmonized standards that are internationally recognized to reduce certification costs , the asparagus industry has shown a remarkable capacity to adapt to the various standards required for trade and good practices in primary production, as they are based on the HACCP system . In a survey of clients of Peru’s asparagus industry, 100% of the respondents highlighted the importance of safety and quality, and of the certification of the systems implemented. Exporters also said that certifications did not necessarily signify a boost in profits but as many as 83% of the respondents confirmed that their customers preferred certified products.

IMPLEMENTATION OF PERUVIAN TECHNICAL STANDARD NTP 011.101 ASPARAGUS. FRESH ASPARAGUS REQUIREMENTS This standard is implemented mostly by Frío Aéreo. Since the 2001 farming year, Frío Aéreo has implemented quality control for fresh asparagus based on NTP 011.101, passing this valuable information on to all its clients through the Peruvian Quality Standard for Fresh Green Asparagus Exports, which is now the main instrument for protecting consumers and exporters. The Sampling Plan for Quality Inspections of Fresh Green Asparagus was established based on NTP 011.101 and the Peruvian technical standard for sampling to inspect the quality of produce. All lots of fresh green asparagus that enter Frío Aéreo are inspected for quality. This control measure is in addition to temperature control and the recording of information about the general conditions of all incoming shipments. As a result of this inspection, every two weeks exporters are ranked according to the quality of their products and how much of each class of asparagus they exported. Each firm receives details of their own rankings but not those of its competitors. The object is to make each company aware of its overall position in the industry, as a sort of benchmarking exercise. As a result of this initiative, which began in 2001, there has been a notable increase in exports of topquality asparagus (based on the classes established in the standard). Asparagus of “Less than Class II” was all but eliminated in the last farming year. Roughly 70% of asparagus exports now fall into the “Extra” and “Class I” categories (Figure 10).

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FIGURE 10. EXPORTS OF FRESH GREEN ASPARAGUS BY CLASS

Extra + Class I

Introduction of Standards

Class I

80

Class II

Millions of Kg.

70 60 50 40 30 20 2000

2001

2002

2003

Years Source: Frío Aéreo.

Frío Aéreo realized the importance of differentiating between the target markets according to their different quality requirements. Since 2003, it has ranked asparagus exports by quality and target market. The United States and Europe are Peru’s main markets (see tables 1 and 2 ). Fig ura 3

Table 1

Quality Ranking

-

From : Jan/01/2003 00:00 Pto 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Exporter

E 0.0% 0.0% 0.6% 1.0% 0.0% 0.8% 0.0% 0.3% 0.1% 0.0% 0.4% 0.4% 0.0% 0.2% 0.0% 0.0% 0.0%

FRIO AEREO

USA

Asociación Civil

Dec/31/2003 23:59

to : I 91.8% 89.7% 89.1% 87.0% 87.8% 80.1% 77.0% 71.3% 69.0% 64.5% 60.3% 59.8% 58.8% 56.9% 49.6% 47.7% 41.9%

FRIO AEREO 0.2% 62.5% * The percentages have been calculated by weight * Only exporters who shipped over 500 tons during the period in question are included

II 8.2% 10.3% 10.4% 12.0% 12.2% 19.1% 23.0% 28.4% 30.9% 35.5% 39.3% 39.7% 41.2% 42.9% 50.4% 52.3% 58.1%

37.3%