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Chilean Farm Leaders Face Logistics Crisis – Produce Blue Book

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The main players in the export and import sectors are working in a coordinated manner to urgently identify effective solutions to the logistics problems that have driven up food prices around the world and have seriously affected Chile and its partners. global trade.

Significant progress has already been made, as meetings have taken place with the Ministries of Transport and Economy. This type of coordination between the public and private sectors is unprecedented in Chile.

Main players in the supply chain, including the National Chamber of Commerce (CNC), the National Corporation of Consumers and Users (Conadecus), the Food Export Council, the Association of Fruit Exporters of Chile (ASOEX), the Federation of Fruit Producers of Chile (Fedefruta) and port logistics operators, are working with transporters, drivers and workers at the ports of Valparaíso and San Antonio, who have expressed their intention to help assess and define, together with the authorities , the measures to be implemented to untangle the logistical problems that Chile is facing.

This way, Chile will be able to guarantee timely deliveries of top quality fruit to its global partners.

It was recognized that while logistical problems have further worsened due to the pandemic and the war between Russia and Ukraine, the national solution to the problem is to take short and medium-term measures to improve the efficiency of Chilean ports, solving the shortage of workers throughout the country. supply chain and finding a way to mitigate rising shipping rates, among other issues.

One of the measures envisaged is the authorization of the port of Ventanas to receive cargoes. Other measures include prioritizing food and strategic supplies in port operations, making rooming ships available at Valparaíso and Coquimbo terminals and ports in the eighth region, and changing restrictions of wave height in the port of San Antonio, which would facilitate the arrival and departure of more ships.

Chilean Economy Minister Nicolás Grau said that “there is ongoing coordination with the Ministry of Transport and Telecommunications to address these challenges ahead of the months of greatest demand between November 2022 and April 2023.” He added that “we are working to relaunch the Collaborative Logistics Plan for Foreign Trade (PLC), which involves public-private collaboration and the participation of multiple actors along the supply chain.”

Conadecus President Hernán Calderón expressed concern about the impact of this crisis on consumers. He considered that “the serious logistical crisis, which affects the whole country, endangers the prices of foodstuffs and basic necessities, affecting the entire population in an alarming inflationary context and where urgent solutions are needed. impose to protect the poorest. ”

Ronald Bown said the crisis was affecting Chile’s reputation as the world’s leading fruit supplier

For his part, the president of ASOEX, Ronald Bown, said that “the loss of fruit and the uncertainty generated by the impossibility of getting the fruit to international customers on time is generating a crisis that is affecting the image of Chile. as the world’s largest supplier”. . This seriously jeopardizes Chile’s place as the main producer-exporter of fresh fruit in the southern hemisphere and fifth in the world. Therefore, we seek urgent solutions from the joint efforts of the public and private sectors. We are off to a good start. We have all the right partners sitting at the table to resolve key issues, and we are confident that in the coming season we will return to pre-pandemic service levels.

Claudio Cilveti, President of the Food Export Council, highlighted the need to strengthen the supply chain for the recovery of the export sector which has been hit hard by the pandemic. He explained that foreign food exports reach $18 billion a year, so “a robust management model must be put in place to meet commitments with destination countries, boost foreign trade, promote production and increase supply of products, thus promoting the growth of the country, employment and the economy at a time when it is most needed.

Finally, CNC Chairman Ricardo Mewes pointed out that “increasing fuel costs, together with changes in transport routes and capacities, are putting increased pressure on freight rates, which has had an impact on the cost of imports In the commercial sector, where most products are imported, it is the final consumer, i.e. the people and their families who are already under the pressure of inflation, who are impacted.