Peru grows more asparagus than any other nation on earth, and that presents a small, but important problem. The people of Peru, the nation that is said to have given the world the potato, don't eat much asparagus. In 2003, when Peru produced 407 million pounds of asparagus, domestic consumption was only 13.2 million pounds, barely 3% of the harvest.
If the people in Peru don't consume the local produce, the problem becomes getting asparagus to North America and Europe, where a great portion of the population views it as a high-value delicacy. The problem is exacerbated by the fact that asparagus is one of the most fragile of all agricultural commodities, sensitive to both thermal and humidity changes when shipped in its fresh state. Perhaps for that reason alone, Peru still exports almost twice as much processed [canned or frozen] asparagus than fresh product; although, much of the canned asparagus is of the white variety for sale in western Europe.
Commercial agriculture follows the same pattern in Peru as in many Latin American countries. Certain commodities with limited consumption in their home countries are grown specifically for export, says Raul Villavicencio, general manager of Hellmann Perishable Logistics USA. While asparagus from Peru provides a good example of commercial agriculture for export, bananas from many Central American nations are probably the best known crop raised almost exclusively for consumption elsewhere, he says.
Third party logistics
Unlike the banana business in which the marketing firms own much of the infrastructure for transporting their product to consumers, the asparagus business in Peru is held by a wide mix of cooperatives, large commercial agriculture businesses, and private farmers. Although these producers have a product that is highly desirable, they need third parties to reach their biggest customers of which the US may be the fastest growing.
Recent marketing studies show that US consumers prefer fresh vegetables by a two to one margin over frozen products that account for 21% or canned goods at 18%, Villavicencio says. The consumption of fresh asparagus in the US has increased by 70% in the past 13 years. One factor in this growth is year-round availability with growers in Mexico supplying the market early in the year and a harvest from California filling stores through early summer. Imports from Peru fill demand for the last half of the year. A major factor for Peruvian growers is that the climate allows two full crops a year. In 2003, Peruvian growers produced 407 million pounds of asparagus. The value of product shipped to the US in 2002 was $67.3 million with 92% of that spent on fresh asparagus. In 2004, fresh export volume was 144 million pounds packed into 13.1 million shipping boxes each weighing 11 pounds.
One organization helping make fresh asparagus constantly available in a seamless process is Hellmann Perishable Logistics. HPL is a new part of a very old company. Hellmann Worldwide Logistics is the parent of HPL. The original company was founded by Carl Heinrich Hellmann in 1871 in Osnabruck, Germany. The name changed to Hellmann Brothers in 1906. After surviving the effects of two world wars and a devastating economic depression, the company was renamed Hellmann Worldwide Logistics in 1997. It runs operations from 341 offices in 134 countries. HPL began operations in North America in 1988 as a Delaware corporation. US operations are headquartered in Miami, Florida. The company says it is the first global, multimodal freight forwarder that is committed 100% to the perishables industry.
In an interesting use of the term perishable, HPL also arranges for the transportation of farm and zoo animals. Thus, the company says it has the capability and facilities to handle a broad range of delicate items from 1,000 lb of strawberries to a single polar bear.
Maintaining the cold chain
Perishables in international trade are time-sensitive as well as temperature-sensitive. Making sure that orders are filled quickly and safely while maintaining a constant chain of temperature control is the key to consumer satisfaction, Villavicencio says. Loss of temperature control or extra time in transit both contributes to shortened shelf life and consumer acceptance. Most food producers do not have the capability to transport goods across international borders. That requires a third party with the facilities and expertise to maintain control of perishables during transit, he says.
In Peru, transportation is a third party operation, while shipping facilities are owned by the growers. Asparagus is shipped primarily by airfreight from Lima International Airport. Working together as a cooperative, the asparagus growers own and operate a refrigerated handling facility, known as Frio Aereo, on the airport grounds. Asparagus, chilled to at least 34°F, is held in a moist environment between 95% and 99% relative humidity in the secure facility until shipping. Shipments arrive at Frio Aereo an average of six hours prior to departure.
Most of Peru's asparagus grows in a temperate climate desert along the Pacific coast about 200 miles south of Lima. Although the terrain is arid, run-off from the Andes in numerous streams provides water for irrigation. Because the edible part of asparagus is actually the immature stem of the plant, it must be harvested daily during the growing season. It is graded by size, washed, and chilled in a hydrocooler to 34°F prior to packing in shipping boxes each weighing five kilograms (11 lb).
The harvest moves to the airport in refrigerated trucks, a trip of four hours or slightly more. Once at the airport, shipments get an additional sanitary inspection and undergo some customs procedures. At present, shipments must clear customs at destination rather than at the point of origin as happens with exports from some countries such as Chile. The US Department of Agriculture performs some inspections in Peru, and negotiations are underway that may allow customs clearance prior to shipping.
95% airfreight
Almost 95% of fresh Peruvian asparagus moves by air. Of the more than 14 million boxes shipped in 2004, only 1.1 million traveled by refrigerated marine container. Air service is provided by a combination of commercial passenger airlines and dedicated cargo services. Lan Chile, the Chilean airline, provides service on its regularly scheduled routes, as does UPS with its fleet of dedicated cargo aircraft. During the peak-shipping season, HPL also charters three DC-10 aircraft a week, each capable of carrying 154,000 pounds of freight.
With few exceptions, asparagus for US distribution arrives at the Miami International Airport. In fact, 69% of all perishables arriving by air in the US enter the country through Miami, Villavicencio says. Asparagus shipments are offloaded into a secure cooler for customs clearance in Miami. Following customs clearance, shipments are fumigated with methyl bromide to ensure against agricultural pests. Shipments are available for pick-up about six hours following arrival.
HPL holds about 30% market share in the shipment of asparagus out of Peru. Although shipments move worldwide, more than 75% of the total goes to the US, the United Kingdom, and Spain. Traditionally, Spain has been a large producer of asparagus, but recent winter weather has caused it to become an importer.
Moving again in 24 hours
Once shipments are released by customs, HPL springs into action, moving the produce downstream in less than 24 hours. The company has a 40,000-sq-ft refrigerated warehouse with 18 dock doors located less than 15 minutes from the airport.
HPL has two tractor-trailer combinations and two 24-ft straight trucks dedicated to the airport pick-up service. To speed operations, the trailers and straight trucks are equipped with roller floors just like those in the cargo holds of aircraft so that airfreight containers can be handled easily. HPL returns empty containers to the airlines at the next pick-up appointment. Once prepared for domestic distribution, HPL supplies retailers and wholesalers throughout the US. Many of the shipments outbound from South Florida are arranged by a brokerage owned by HPL.
Temperature control of these perishable shipments does not end at the warehouse door. Outbound shipments never leave a controlled cool chain. Outbound trailers are checked with an infrared thermometer to ensure proper pre-cooling before loading. HPL has a specialized information system to monitor time and temperature throughout the distribution process and provide easily accessible data to all parties, Villavicencio says.
Depending on consumer demand, shipment volume varies widely, anywhere from 150 to 400 shipments weekly. Shipment size can range from as few as 50 boxes for a single wholesaler to much larger loads of up to 2,000 boxes for multi-stop routes. Obviously, import volume increases as domestic production dwindles. In 2004, inbound shipments totaled only 2.7 million boxes for the first seven months of the year with the remainder of more than 13 million boxes arriving in the last five months, Villavicencio says.
