Asparagus in Peru

8/9/2019 Asparagus in Peru

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

Improving competitiveness and market access foragricultural exports through the development and

application of food safety and quality standards

The example of Peruvian asparagus

Tim M. OBrien Alejandra Daz Rodrguez

Inter-American Institute for Comisin para la PromocinCooperation on Agriculture - IICA de Exportaciones PROMPEX

Coronado, Costa Rica Lima, Peru

July, 2004


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CONTENTS

Acknowledgements 2

Summary 3

I. Description of the asparagus production chain 4

1.1 Perus agricultural exports 41.2 Asparagus production in Peru 41.3 Socioeconomic importance 71.4 Main problems addressed in the asparagus production chain 9

II. Elements of change in the asparagus production chain 10

2.1 Export promot ion policy 102.2 Associative Efforts 112.3 Commitment to the safety and quality of the asparagus produced 132.4 Establishment of quality standards 13

III. The role of Codex Alimentarius in the asparagus production chain 14

3.1 Participation of Perus government and private sector in the process of 14drafting Codex standard on fresh asparagus

3.2 Implementation of the standards in Peru and the level of participation 163.3 Quality costs 20

IV. Conclusions and recommendations for future projects 22

Bibliography 23


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ACKNOWLEDGEMENTS

The authors wish to thank the leaders of the various public and private institutions that have made thedevelopment of asparagus production possible in Peru, and especially the representatives of theinstitutions and companies visited, for their valuabl e support for the preparation of this document, andthe 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 ProgramFreddy Rojas, Representative in Peru

Export Promotion Commission (PROMPEX)Bernardo Muoz, Agro and Agro-industry ManagerFausto Robles, Adviser

Peruvian Asparagus and Vegetable Institute (IPEH)Jorge Pablo Fernandini, PresidentBeatriz Tubino, General Manager

Fro Areo Asociacin Civil

Jorge Checa, PresidentAlvaro Salas, General Manager

AGROPARACAS S.A.Antonia Lujan, Head of Quality AssuranceCarlos Salas, Plant Engineer

APEISARamon Aparcana, General Manager

ATHOS S.A.Jose Castilla, Operations ManagerCarlos Arana, Head of PlantMelissa Ganosa, Head of Quality Control

Complejo Agroindustrial BetaLionel Arce, General ManagerJuan Gallegos, Head of Quality

IQF DEL PERUFrancis Watson, Quality Control ManagerJoaquin Balarezo, Technical Manager

PROAGROCarmen Rosa Garcia, Head of ExportsCarlos Tellez, Head of Operations


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AN EXAMPLE OF SUCCESSFUL USE OF CODEX ALIMENTARIUS:

ASPARAGUS IN PERU

SUMMARY

Peru is currently the worlds leading asparagus exporter, having overtaken other important producerssuch 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 increasinglydemanding and competitive global market? What factors of change have made it possible to establisha sustained industry that has had a major impact on Perus economy, creating jobs and generatingforeign exchange?

Since asparagus was first grown in Peru in the early 1950s, the industry has blossomed despitehaving to contend with various climatic events, non-tariff trade barriers that affect access to certainmarkets, domestic macroeconomic measures that do little to help agriculture, the poor organization ofproducers and public institutions, and little capital investment or investment in technology. Althoughsome of these weaknesses have yet to be tackled, in 2003 asparagus exports were worth US$206.69million. Asparagus accounted for 24.41% of Perus total agricultural exports and provided jobs for over50,000 people along the coast of the country.

The Government and private enterprise encouraged the industry to address the problems that existedin the asparagus production chain by establishing cooperation mechanisms. Two organizations werecreated that are now the most important in the asparagus sector: the Peruvian Asparagus Institute andFro Areo Asociacin Civil. These organizations enable producers and exporters to pool resourceswith public institutions. With the States 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 sectorscommitment to food safety and quality, with competitiveness through quality being incorporated intostrategic business plans. The asparagus industry has made great strides in implementing goodproduction practices and food safety and quality management systems. The HACCP system clearlyhaving served as a springboard for implementing other management systems designed to ensureoverall quality.

Standard-setting for asparagus has also played a big part in making companies more competitive aswell as more efficient and transparent in the market place. A special committee is responsible forestablishing Peruvian Technical Standards for Asparagus. The fact that the process is transparent andall the stakeholders in the ch ain are involved maximizes the acceptance and voluntary implementationof new standards. In this context, the Codex Alimentarius standards play an important role, since theyare explicitly accepted as the international benchmark for food standards. In the case of the Codexstandard for Asaparagus, Peru took part in international standard-setting at the meetings of the CodexCommittee on Fresh Fruits and Vegetables (Mexico) and the Twenty-fourth Session of the CodexAlimentarius Commission (Geneva), where its delegates presented the countrys position andsafeguarded national interests. This organizational outline for establishing national standards isplanned to be adopted for use with other agricultural exports.

All the factors of change that are associated with the success of Perus asparagus industry havepromoted 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 inboth the private and public sectors. The leadership role assumed by various agricultural entrepreneursand public officials was critical to establishing consensus-building mechanisms among producers,processors, exporters and the Government. The function of these mechanisms is to ensureproductivity, quality and profitability, and to pinpoint and solve the chief problems affecting asparagusexports. These mechanisms support an export-promotion policy that encourages and supportsproducer associations, stimulates competitiveness through quality enhancement that promotescontinuous improvements within the firms involved, thus enabling them to better respond to thedynamic changes in the international market.


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I. DESCRIPTION OF THE ASPARAGUS PRODUCTION CHAIN

1.1 PERUS AGRICULTURAL EXPORTS

Agricultural exports are worth over US$800 million to the country each year , asparagus being one ofthe most important products having experienced strong growth over the years (Figure 1).

In 2003, asparagus replaced coffee as Perus biggest agricultural export earner. Figure 2 shows the

percentage breakdown of Perus agricultural exports in 2003, with asparagus and coffee accountingfor nearly half of the total.

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 Associationwas keen to replace traditional crops with export crops, and, with funding from the U.S. Agency forInternational Development (USAID), explored the opportunities in the southern United States. Basedon its observations, the Association evaluated a number of promising crops at its San CamiloExperimental Station (melons, paprika, green beans and asparagus). Asparagus was the mostinteresting, given the prices that could be obtained when the product was not in season in NorthAmerica. The farmers were then invited to take part in an associative project involving the cultivationof 500 ha of green asparagus. The Association would oversee the project, build and operate thepacking plant, and export all the production 1.

USAID paid the fees of experts who provided advice. The first step was a visit by a specialist from theUniversity of California, Davis, who had recently created the UC-157 variety. He confirmed the viabilityof 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 Associations experimental stationset 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 apacking plant. Seeds of the new UC-157 hybrid variety, in F1, were imported from CaliforniaAsparagus Seed and Transplants, Inc., and the seedlings were planted in a 1.8 ha field at the SanCamilo Experimental Station. For the first time in Peru, seeds were planted in high beds irrigated bymicro-sprinklers, to obtain seedlings. The results were excellent; a very high percentage of the seedsgerminated and the seedlings were very homogeneous. The seedbed was the biggest of its kind everseen in the worl d2.1Robles 1997.2Robles 1997.

Asparagus24%

Others36%

Peppers3%

21%

3%

3% Avocado2%

EvaporatedMilk

0.00100.00

200.00300.00400.00500.00600.00700.00800.00900.00

1994199519961997199819992000200120022003

US$xmillion

0.00

50.00

100.00

150.00

200.00

250.00

Agricultural Exports Asparagus

FIGURE 1. EVOLUTION OF AGRICULTURAL ANDASPARAGUS EXPORTS

FIGURE 2. PERCENTAGE BREAKDOWN OF PERUSAGRICULTURAL EXPORTS

Source: Peru Customs Service: Prepared by - PROMPEXSource: Peru Customs Service: Prepared by PROMPEX

Coffee

Grape

2%

Sugar2%

Mango4%

Vegetables

US$xmillion


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The quality standards set were based on those of California but even more demanding, to ensureacceptance. When harvesting began in mid-November 1986, 70% of the production was exported asplanned and excellent prices were obtained in the North American market.

Following the optimal results obtained by green asparagus producers in Ica, producers in other valleysbecame interested in replicating the experience. Crops were planted in the Chincha, Nasca, Caeteand Huaura valleys, and other valleys and irrigated savannah along the coast. A real boom in exportsensued. Packing plants were set up and the asparagus that was not exported as fresh produce beganto be frozen and canned, also for export.

In the Chincha and Caete valleys, a Spanish canning company installed a processing plant andsigned 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 Libertadincreased 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 theexcellent climatic conditions and loose soils of the Peruvian coast, which is the worlds largest naturalgreenhouse. Two harvests per year are possible in some valleys and three harvests in two years inothers. 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 traditionalproducers such as Mexico, Spain, the United States and China. Furthermore, Peru overtook thesecountries with less than half their acreage, because it had the highest yields in the world - an average

of over 9000 kg per hectare.The total asparagus acreage in Peru is now roughly 20,000 hectares 3 divided equally between whiteand 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 Asparagusand Vegetable Institute (IPEH), which represents the industry, and Fro Areo Asociacin Civil, whichhas a center for perishable produce with modern cold storage facilities at Jorge Chavez internationalairport, which handles 80% of fresh asparagus exports. Peru also has the worlds largest asparagusfreezing 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 satisfactoryquality, as demonstrated by the permanent international demand. The asparagus is processed inplants with adequate infrastructure, and products of the highest quality are exported to the worlds

most demanding markets. With assistance from the State, every effort is made to ensure the productssafety and quality, with the goal to establish the HACCP system throughout the national food industry.

To meet HACCP requirements, the asparagus firms are implementing good agricultural practices andother management systems to guarantee safety and quality from farm -to-table and exercise socialresponsibility throughout the chain. They have demonstrated a great capacity to bring the asparagusindustry into line with the various standards and regulations required by international trade.

FIGURE 3. ASPARAGUS-GROWING AREAS

3Ministry of Agricultu re.

Chincha

Pisco

Caete

Huarmey

Trujillo

Huaur

(Photo: F. Robles)

LA LIBERTAD

ANCASH

ICA

LIMA


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PRESENCE IN INTERNATIONAL MARKET S

Peru is currently the worlds leading asparagus exporter, having overtaken other major producers suchas China and the United States. Figure 4 shows the strong growth of Peruvian asparagus exportscompared with those of China. Perus exceptional climatic conditions and geographic location make itpossible to achieve the highest yields in the world. Peru produces practically the same amount asChina, on less than half the acreage.

FIGURE 4. EVOLUTION OF ASPARAGUS EXPORTS: CHINA AND PERU

Source: China Customs Prepared by: Agricultural Sector - PROMPEX

ASPARAGUS EXPORTS

In 2003, Perus agricultural exports were worth US$846.6 million (FOB). The asparagus industryaccounted 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 asparagusexported (Figure 5).

Exports of fresh green asparagus have grown steadily in recent years (Figure 6), unlike exports ofcanned 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 theproduct year after year, its importance as a market has been declining slowly due to the gradualgrowth of other markets. This is a positive situation reflecting a sensible exporting policy implementedby 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.

0.00

50.00

100.00

150.00

200.00

250.00

1995 1996 1997 1998 1999 2000 2001 2002 2003

US$xmillion

China

Peru

Linear (Peru)

Linear (China)

Canned40%

Frozen

FIGURE 5. EXPORTS OF PERUVIAN ASPARAGUS (2003

Source: PeruCustoms Service: Prepared by - PROMPEX

8%

52%

Fresh


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1.3 SOCIOECONOMIC IMPORTANCE

In recent years, the growth of Perus primary industries (mining and inputs for agroindustry) hasslowed, while the agricultural sector has shown strong growth. In this process, agroindustrial exportshave 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 LaLibertad have one of the highest levels of development growth in the country, based on factors suchas economic development and job opportunities, setting them apart from other areas.

As far as employment opportunities are concerned, asparagus production is much more importantthan that of traditional crops in the areas concerned, such as cotton, corn and rice. Including the off-

farm jobs created, the asparagus industry provides work for an estimated 50,000 people along thecoast of Peru, 60% of who are women. This is important in terms of the efforts to provide equal jobopportunities, as men account for over half of the countrys Economically Active Population (56%).

Efforts are now being made to replicate the success of the asparagus industry with other products likeartichoke and red pepper, taking advantage of the industries installed infrastructure . In 2003 alone, thegrowth of these products created more than 2400 new jobs in the countryside. The PeruvianAsparagus and Vegetable Institute (IPEH) predicts that in 2004 they will generate roughly 10,000more new jobs.

0.0

20.0

40.060.0

80.0

100.0

120.0

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

US $ FOB Vol. Kg.Spain

8.1%

8.9%

France0.5% Germany

0.5%

0102030405060708090

100

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Millions

Spain56%

France19%

Germany3%

Others7%

Netherlands

Australia

4%

FIGURE 6. EXPORTS OF FRESH ASPARAGUS FIGURE 7. PERCENTAGE BREAKDOWN OF FRESHASPARAGUS MARKETS IN 2003 (US$ x million FOB)

Source: PeruCustomsService: Prepared by - PROMPEX Source: Peru CustomsService: Prepared by - PROMPEX

Source: Peru Customs Service: Prepared by - PROMPEX Source: Peru Customs Service: Prepared by - PROMPEX

FIGURE 8. EXPORTS OF CANNED ASPARAGUSFIGURE 9. PERCENTAGE BREAKDOWN OF CANNED

ASPARAGUS MARKETS IN 2003 (US$ x million FOB)

73.6%

United States

UnitedKingdom

6.6%Netherlands

3%

Million

s

0.4% Italy

1.5%

Others

UnitedStates

8%

Vol. Kg.US $ FOB


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By implementing improved food safety standards and quality management systems, the asparaguscompanies have also generated additional social benefits . The implementation of good agriculturalpractices and social responsibility programs are also making a positive contribution to the economicand social development of the regions involved.

Incorporating the concept of social responsibility into the business strategies of asparag us companieshas 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, thegeneration of better incomes and contributes to the general well-being of society.

These efforts consist mainly of internal company policies concerning the adoption of environmentalstandards and improvements in working conditions and the well -being of the labor force. The results ofimplementing good agricultural practices have been remarkable. These practices include integratedpest management, dune forestry, biodiversity conservation practices, the safe use and managementof agrochemicals, proper waste disposal and the implementation of septic tanks and appropriatelatrines, all with a view to reducing the negative environmental impact on water, soil and air. Thesepractices are being implemented very creatively, optimizing the use of resources so that safety andquality 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 andlabor well-being. This is another important element in developing local capabilities, since it helpsreduce losses and minimizes the exposure of workers to agrochemicals and other health risks. Thishas resulted in increasing the efficiency of workers. The training also helps improve the quality of theirwork, an important factor for increasing productivity and, therefore, the firms chances of makingbigger profits.

If workers are familiar with the standards, they understand why it is necessary to work in a differentway and how the changes implemented are going to improve the overall production system. Whenthey are well trained, workers also understand that they are part of an integrated system and that theperformance of one sector affects the performance of another. Furthermore, when people work fordifferent companies that use the same standards, it is easier for them to do a good job and beefficient, because they are already familiar with the systems of work. Better working conditions interms of hygiene, quality, the minimizing of risks from agrochemicals and environmental conservationbenefit 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 regionsgeneral population.

Actual results show that the asparagus industry has developed a greater capacity to adapt to thevarious standards required in trade . This is sustained through the preventive approaches of theHACCP system and good agricultural and manufacturing practices, which provide the basis for theminimum requirements established in the current technical standards and regulations.

These characteristics of the asparagus industry provide an efficient framework for its sustainabledevelopment, i.e., development that is economically viable, respectful of the environment and sociallyequitable.

More stable employment (photo T. OBrien). More employment for women (photo T. OBrien).


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Practices for conserving biodiversity: Forested dunes The creative implementation of good agricultural practices:Photo: T. OBrien) 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 aseries of problems stemming from the trading system, which is geared to foreign markets. Thiscomplex system includes supply, product flows from the production areas to the different processingand consumption centers, and the infrastructure - the road network, transportation and processing andmarketing 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 theagricultural sector, health and safety, transportation, taxation, etc.), all of which are bound by variousnational and international standards.

The operation of this trading system depends basically on macroeconomic and sectoral policiesrelated to the prices of inputs, subsidies, tariffs, investments, exchange rates, interest rates, fiscalpolicy, 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 involvedin 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 atdifferent points in the chain adopting a business approach.

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

c. No mechanisms for building consensus between producers and the Government, due to theabsence 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 bythe pest Copitarsia incommoda.

f. Few efforts were made to promote safety and quality assurance systems, limiting thecapacity 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 integratedapproach throughout the whole chain, from field-to-table, harmonized with internationalstandards 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 existedin the asparagus production chain by establishing cooperation mechanisms. Two organizations werecreated that are now the most important in the asparagus sector: the Peruvian Asparagus Institute

4

(IPEH) and Fro Areo Asociacin Civil.

These organizations enable producers and exporters to pool resources with public institutions andcontribute to the negotiations among the associations and the Government agencies. With the Statesassistance, they engage in research, technology transfer, market studies, export drives, sanitaryactivities 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 ofForeign Trade and Tourism, was created by means of Legislative Decree No. 805, of 3 April 1996. Itsmission is to help develop Perus exports through concerted action with the countrys private sectorand the different public institutions responsible for foreign trade.

PROMPEXs specific objective in the case of agricultural exports is to make both agricultural andagroindustrial products more competitive in international markets. The Commission focuses onactivities aimed at organizing producers and exporters, raising productivity and improving quality, asthese factors are considered the chief constraints to exports. Its strategy is to strive forcompetitiveness based on quality rather than price and focus on the special characteristics of thecountrys products, or how to export them with more value added.

One of PROMPEXs main activities in the agricultural sector has been to encourage and support thecreation and operation of product -specific associations or institutes. In most cases, the key has beenparticipatory strategic planning, with agreement being reached on the implementation of activities ofcommon interest identified and approved by consensus.

The Commission was responsible for promoting the creation of the two most important associations inPerus asparagus industry: the Peruvian Asparagus Institute and Fro Areo Asociacin Civil.As already mentioned, quality is another of the key aspects of the export promotion policy. PROMPEXcarries 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 thoseof 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 seekto improve their safety and quality standards and achieve maximum efficiency and effectiveness. Thisequips them to respond better to changes in international markets and recognize emerging issues thatcould 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 beeninstituted to help agricultural exporters implement good production practices , safety and qual itymanagement systems (HACCP, ISO 9000) and the principles of social responsibility.

As well as developing business expertise and the supply of export products, PROMPEX endeavors topenetrate 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 oncompetitiveness in China.

4In August 2003, in view of the success of the business model implemented by the asparagus industry, the coverage of the Peruvian AsparagusInstitute was recently expanded to include other vegetables.


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2.2. ASSOCIATIVE EFFORTS

The Peruvi an Asparagus and Vegetable Inst itu te (IPEH)

Created in 1998 with support from PROMPEX, the IPEH is anonprofit association of companies that produce and exportcanned, fresh and frozen asparagus. Prompted by the successof the asparagus industrys business model, in August last year the Institute broadened the scope ofits work to include other vegetables, especially artichoke and Spanish red pepper, to which the modelis also being applied. The IPEHs members account for 80% of asparagus exports.

The IPEH has become the communication channel that local and foreign government agencies preferto use to deal with crosscutting issues that will benefit and further the progress of the asparagusindustry. It is the only organization of agricultural exporters to have created an Association of FreshAsparagus Importers in the United States, the main market for fresh asparagus. This has enabled it toestablish 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 andexpansion 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, toensure the safety and quality of primary production. These projects include:

- Study of alternatives to the quarantine treatment of fumigating with methyl bromide, which iscurrently 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 and post-harvestmanagement, with the National Agrarian Research Institute (INIA).

The IPEH recently received special recognition for its important contribution to research for agriculturalexports.

The IPEH has an agreement with the National Agricultural Health Service (SENASA) for the jointdevelopment of IPM in pilot areas of the main valleys where asparagus is grown. The project, entitledIntegrated pest management of asparagus with emphasis on Copitarsia incommoda in the mainvalleys where Perus 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 freshasparagus for export affected by the pest Copitarsia incommoda. The organization of asparagusproducers will also be improved by setting up committees on the use of IPM, training in and thedissemination of IPM techniques, and the implementation of a computerized information system forprocessing and integrating data.

Another of the IPEHs commitments with respect to quality is standard-setting for asparagus. It playsan active part in the drafting and dissemination of the Peruvian Technical Standards for Asparagusadopted by the special committee created for that purpose.

It is also promoting the application of good agricultural practices through the project Adoption of GoodAgricultural Practices and Strengthening of the Asparagus Production Chain, with support from theInter-American Development Bank (IDB). This project aims to improve the quality of Peruvianasparagus 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 promotionof Peruvian asparagus at the most important international fairs. At the local level, it organizes twoannual events: the Symposium on Asparagus and Vegetables and Asparagus Day.


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Fro Areo Asociacin Civil

Fro Areo Asociacin Civil, created in 1998 with assistance from PROMPEX, is an association ofexporters of perishable produce (mainly fruits, vegetables and flowers). To ensure that produce forexport receives proper post-harvest handling prior to shipment, it set up a modern Perishable GoodsCenter at Jorge Chavez Airport and a logistical system that provides optimal conditions for thehandling and conservation of produce.

This cold storage facility, the largest and most modern in Latin America, has met a real need as far asoverseas shipments are concerned. Previously, produce was received and loaded onto the ramps ofplanes in the open air, with a very real risk that the cold chain would be interrupted and the producesshelf life reduced. The facility has a large room where produce is received, weighed and inspected byNational Agricultural Health Serv ice (SENASA), customs and the officials from the National AgencyAgainst Terrorism (DIRCOTE).

Some 29 firms are currently partners in Fro Areo and 85% of all air-freighted perishable exports passthrough its facilities. It is therefore playing an important role in the development of the asparagusindustry.

The asparagus industry has had to completely build a professional community to compete ininternational markets, promoting quality in every area. Nearly 80% of green asparagus exports are air-freighted, mostly to the United States. Peru is at a disadvantage because of its distance from theAmerican market. Transportation costs (airfreight) are equivalent to up to 46% of the value of theproduct. Fro Areo 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 ajoint program for purchases. There is also greater access to airlines, making it easier for exporters tofind space on flights and obtain competitive rates.

By controlling the cold chain, the industry can control the temperature from the packing plant to theplane. Fro Areo even issues a ranking of the temperatures achieved by the different exporters andairlines. The length of time that airlines leave the produce outdoors while it is being loaded is alsocontrolled. The use of thermal blankets for the pre-shipment stage ensures a correct cold chain, with avariation in temperature of no more than 1C from the cold rooms to the plane.

Furthermore, Fro Areo plays an important role in standard-setting for asparagus by participatingactively in the drafting of Peruvian Technical Standards for Asparagus (harmonized with the CodexAlimentarius standard), in quality control by adhering to the Peruvian Technical Standards forSampling 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 internationalmarket and achieving recognition of Peruvian asparagus as a high-quality product, Fro Areo isendeavoring to consolidate the application of Peruvian Technical Standard NTP 011.101:2001ASPARAGUS. Fresh asparagus requirements.

All lots entering Fro Areo are inspected for quality based on the standard, as an additional controlmeasure. The information is then disseminated among its clients through the Quality Standard forPeruvian Exports of Fresh Green Asparagus. It is used as a benchmark by exporters, and is also animportant instrument for protecting consumers and exporters alike.

This quality inspection has led to a sizable increase in exports of top -quality asparagus, according tothe classification established in the standard (Figure 10) .

Fro Areo uses the information system to give the industry a daily report of the produce exported byeach exporter to the five main destinations. With input from all the producers, it also prepares ageneral projection of exports for the entire crop year, on a week-by-week basis. This makes it possibleto program the hiring of aircraft and supplies of the various inputs. This information is shared with therecipients (clients) so they can better manage sales (see tables 1 & 2) .

The program for standard-setting and joint purchases run by Fro Areo has made it possible tostandardize packaging inputs, thereby making supplying inputs more efficient and to better organizeand negotiate purchases.


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Temperature control using thermal blankets (Photo: Fro Areo) Storage in transit (Photo: Fro Areo)

2.3 COMMITMENT TO THE SAFETY AND QUALITY OF THE ASPARA GUS PRODUCED

Safety is the most important, perhaps even the decisive, element in the quality of asparagus or anyfood product. However, food safety alone is not enough. It must be accompanied by other elements ofquality demanded by consumers that go beyond the requirements of the health authorities. Quality, inthe broad sense of the term, is vital to compete in the global marketplace.

This is one of the key concerns of Perus export promotion policy and its success depends on thesafety and quality of the food products produced. It establishes the framework for the supportprograms provided by PROMPEX to the agricultural export sector, through which standard-setting ispromoted and exporters are helped to apply good agricultural and manufacturing practices, HACCPsystems and ISO 9000 and the principles of social responsibility.

Other important elements in the asparagus chain are the actions undertaken by the Minis try ofAgriculture with regard to plant health and agricultural practices, and by the Ministry of Health, withrespect 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 forfood safety and is constructing a relatively successful global system to ensure the safety and quality ofits 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 theHACCP system; and in storage and shipping, through the control of the cold chain in the case of freshasparagus.

The asparagus industry also applies other quality systems that are compatible with the HACCPsystem, which clients are demanding to ensure quality but also that environmental management andprinciples of social responsibility are implemented. Other systems have also been set up to guaranteethe security of the logistical chain.

2.4 ESTABLISHMENT OF QUALITY STANDARDS

PROMPEX realized how important standard -setting was to make and keep companies competitiveand achieve greater efficiency and transparency in the market. The food control system also neededto be modernized as quickly as possible. The Commission therefore supported the creation of the

Asparagus Standards Technical Committee, requested by the productive sector, so that companiescould ensure minimum quality standards for asparagus.

All the sectors involved in standard -setting take part in the Asparagus Standards TechnicalCommittee, set up under the aegis of the National Institute for the Defense of Competition and theProtection of Intellectual Property (INDECOPI

5) on November 3

rd, 1998. The members are: the

Peruvian Asparag us and Vegetable Institute, Fro Areo Asociacin Civil, representatives ofAgriculture, 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 forapproving the Peruvian Techn ical Norms (NTP) for all sectors, whose application is voluntary. The NTP are prepared by the StandardsCommittees that make up INDECOPI, with support from public and private instit utions. Also, the CRT of INDECOPI is the national accreditat ionbody and is responsible for determining the technical competence of the public and private entities involved in testing, calibrating and certifying theuniformity of products and quality systems.


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Ministry of Production, the Crop Protection Committee of Limas Chamber of Commerce (PROTEC),and certification laboratories. PROMPEX operates the Committees Technical Secretariat.

The Committees mission is to establish quality specifications for asparagus based on internationalstandards. Applied in the different stages of production, these specifications ensure the quality andcompetitiveness 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 theintegration of the sectors involved in improving asparagus quality. Its main strategies are theexhaustive study of national and international standards, particularly those of Codex Alimentarius, soas to harmonize with them, and the drafting of standards by consensus and based on all the scientificand technical information available.

This Committee has been responsible for harmonizing the Peruvian Technical Standards forAsparagus with those of Codex Alimentarius. In the case of the requirements standard, it took part ininternational 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 itsdelegates presented the countrys position and worked to safeguarded national interests. Thisorganizational model for establishing national standards is set to be adopted for other agriculturalexports.

The Committees 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. AsCodex Alimentarius possesses only a limited amount of information, the Committee also referencesother technical background data, according to the procedures established for good standard-settingpractices.

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 nothave defects that could influence the results.

NTP 209.404:2003 CANNED ASPARAGUS. Determining fibrousness. This standard establishes amethod for determining the fibrousness of canned asparagus.

NTP 209.402:2003 ASPARAGUS. Good agricultural practices . Establishes good agriculturalpractices 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 bypests). Good agricultural practices combine a series of technologies and techniques that emphasizeintegrated pest management, natural resource and environmental conservation, and the minimizing ofhazards to human health.

NTP 011.109:2001 ASPARAGUS. Fresh asparagus requirements. It establishes the minimumrequirements (size, tolerances, presentation, marking and labeling, pollutants and hygiene) that freshasparagus must meet to be marketed .

NTP 209.401:2001 ASPARAGUS. Hygiene practices for processing fresh asparagus . Establisheshygiene practices for handling (cultivation and collection of the crop, washing, cutting, selection,packaging, refrigeration, storage, transportation, distribution and sale) of fresh asparagus for humanconsumption, to guarantee a safe and healthy product. The standard deals with the processing ofasparagus for marketing as fresh produce.

III. ROLE OF CODEX ALIMENTARIUS IN ASPARAGUS PRODUCTION CHAIN

3.1 PARTICIPATION OF PERUS 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 ofINDECOPI, drafts the Peruvian Technical Standards for Asparagus. The Committee comprisesrepresentatives 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 CommitteesTechnical Secretariat.

Various government agencies provide an enabling environment for the drafting of the technicalstandards. 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 standards;and help disseminate the standards, to ensure that the productive sector implements them. Aninteresting feature of the Asparagus Standards Technical Committee is that it holds decentralizedsessions 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 contributesvaluable 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 forspecific markets, and implements the guidelines contained in the Peruvian Technical Standards.Others stakeholders involved in the standard-setting process also provide technical and scientificassistance, and give analytical support through the certification laboratories represented on theCommittee.Since implementation of the Peruvian Technical Standards is largely a voluntary matter, itis important that all the stakeholders in the chain be involved in drafting them. If the process istransparent 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 nizedinternationally as the benchmark for the drafting of food standards. Accordingly, the PeruvianTechnical Standards for Asparagus are harmonized with those of Codex Alimentarius. In particular,the Peruvian Technical Standard NTP 011.109:2001 ASPARAGUS. Fresh asparagusrequirements,

reflects the Committees contribution to the international standard-setting process of CodexAlimentarius. The usual harmonization process was largely unnecessary, as Perus standardincorporated international standards that had already been approved.

The Peruvian standard drew on the draft Codex standards for asparagus prepared by the CodexCommittee on Fresh Fruits and Vegetables, including important aspects related to the quality ofPeruvian asparagus. The countrys position regarding the draft standards was stated at variousmeetings of Codex Alimentarius.

Naturally enough, the productive sector was especially interested in this process because, thanks toPerus large share of the asparagus market, it was able to parti cipate directly in the drafting of aninternational Codex standard. Peru sent a delegation to the Ninth Session of the Codex Committee onFresh Fruits and Vegetables, held 9-13 October 2000 in Mexico,comprising representatives of the productive sector (Fro Areo) andthe public sector (PROMPEX). Only a representative of the publicsector had taken part in the previous session.

At that time, the process of drafting the Codex Standard hadreached Step 6, when countries are asked to review the text prior toits adoption. Perus position, established by the AsparagusStandards Technical Committee, was set out in Working Document11 circulated during the session. Thanks to its participation, thecountry was able to secure the inclusion in the Codex Standard forAsparagus of important quality-related concerns, such as theminimum diameter of shoots and the size of green asparagus 6.

With this new point of reference, in February 2001 the AsparagusStandards Technical Committee established Peruvian TechnicalStandard NTP 011.109:2001 ASPARAGUS. Fresh asparagus

requirements7

. Using a new innovative format, this standardcontains illustrations of all the classes of asparagus, to ensureuniform interpretation of quality requirements and thus facilitatequality inspections of asparagus.

By way of the normal Codex Alimentarius process, the draft Codex Standard for Asparagus hadreached Step 8 and was due to be approved at the Twenty-fourth Session of the Codex AlimentariusCommission, held 2-7 July 2001 in Geneva, Switzerland.

6A request was made that the grade of green asparagus be measured 2.5 cm from the base of the s tem 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 Technical S tandards Committees and presented for public comment for a time definedby the regulation befo reit is approved by INDECOPI.


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Having taken part in meetings of the Codex Committee on Fresh Fruits and Vegetables, Peru knewthat some draft standards are not always adopted by the Codex Alimentarius Commission, or thatmany are modified substantially before being approved. Situations where it was important for thecountries interested in the standards in question to have played an active part in the meeting bysending a delegation. The stakeholders therefore felt it advisable that Peru participate in the July 2001session, 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 Commissioncomprised representatives of PROMPEX, General Environmental Health Directorate (DIGESA) andthe Ministry of Foreign Affairs. At that meeting, the Codex Alimentarius Commission adopted the draftCodex Standard for Asparagus8.

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 criteriathat the country proposed

- Drafting of the Peruvian Technical Standard for Fresh Asparagus, harmonized with CodexAlimentarius

- Participation of all the stakeholders in the chain, ensuring technical consistency and that thecountrys 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 countrys regulations onsanitary 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 theHACCP system. Official sanitary certificates for exports are issued only in exceptional cases and atthe exporters request. It is not a pre-shipment document nor is it required by customs to shipproducts.

The regulations call for the establishment of complementary sanitary standards to support theimplementation of the HACCP system. These standards and guidelines have not yet beenestablished, 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 systemis 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 HACCPsystem throughout the sector, to ensure safety and prevent problems in overseas markets like theones that occurred in Spain in 1997. The reaction to an alleged case of botulism was understandablystrong and certain adjustments and improvements had to be made, especially as regards heattreatment, one of the critical points in the process.

The sanitary standards met by the canned asparagus sector include the provisions contained in theregulations on sanitary surveillance and the control of foods and beverages, which adhere to theGeneral 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 ofthe 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 theparticipation of the Peruvian Asparagus Institute and PROMPEX. This was in answer to the freshasparagus sectors concerns over the Ministry of Health proposing to mandate that the industry adoptthe HACCP system for exports, or comply with other equivalent procedures if they did not

8The 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 that "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 ofpromotion that stimulated 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 surveyto determine the situation in the sector regarding the implementation of the HACCP system (how wellfirms understood it, how willing they were to implement it and how much progress they had made sofar). The companies concerned said they considered the HACCP system either very important orextremely important. In their view, the main obstacles to the implementation of the system were theambiguity of the regulations, the lack of uniformity and approaches for applying them, the lack ofadequate technical advice and the amount of time required.

Accordingly, the Commission decided to initiate a process to ensure the safe production of freshasparagus, even when it was not required by the target markets. The sector thus pre-empted anyrequirements that might be established by importing countries. The analysis also took into account theU.S. Food Safety Initiative, given the special interest in minimizing microbial risk in fresh fruits andvegetables.

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 CodexAlimentarius. 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 tohelp implement the system, while PROMPEX monitored and supervised the companies progress inimplementing it. These same companies are now satisfactorily conducting the quality audits requiredby their clients and some have opted to obtain HACCP certification through international certifiers.

The project to institute the HACCP system also paved the way for the implementation of the ExportQuality Program - PROMPEX. This program has developed important management tools formonitoring and supervising the firms progress in implementing quality systems. The instrumentsavailable include quality profiles of every firm that make it possible to evaluate and determine theprogress of the project in a systematic and objective way. This profile can also be used to pinpointelements that require urgent action to ensure product safety and quality, and to reorient the activitiesduring the project. Thanks to the excellent organization and work of this program, the EuropeanUnion-PROMPEX9 Agreement on Exports secured ISO 9000 certification.

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

9Diaz 1999.

Control of shelf life of fresh asparagus(Photo: T. OBrien)


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IMPLEMENTATION OF OTHER QUALITY SYSTEMS

When the companies decided to implement the HACCP system, they realized the importance ofapplying the system starting on the farm, keeping exact records of pesticide application and usingintegrated pest management to minimize the use of chemical products, controlling pathogens at thefertilization stage and adopting other agr icultural practices at the primary production level.

Based on the requirements of the HACCP system, the companies applied good agricultural practicesin a systematized way. To satisfy the requirements of the main supermarkets in Europe, they recentlyopted for the EUREPGAP certification developed by EUREP (Euro Retailer Group), an association oflarge European supermarkets that dominate the food sector.

The companies have also opted for other certifications to promote product safety and quality evenmore, 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 HACCPsystem 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, aneffective and documented quality management system and control of environmental standards in theplant, 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 controlmanagement 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 forthe implementation of other management systems to guarantee all aspects of safety and quality, andrespect for the principles of social responsibility.

Therefore when the need arises to apply new harmonized standards that are internationallyrecognized to reduce certification costs , the asparagus industry has shown a remarkable capacity toadapt to the various standards required for trade and good practices in primary production, as they arebased on the HACCP system.

In a survey of clients of Perus asparagus industry, 100% of the respondents highlighted theimportance of safety and quality, and of the certification of the systems implemented. Exporters alsosaid 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. FRESHASPARAGUS REQUIREMENTS

This standard is implemented mostly by Fro Areo.

Since the 2001 farming year, Fro Areo has implemented quality control for fresh asparagus basedon NTP 011.101, passing this valuable information on to all its clients through the Peruvian QualityStandard for Fresh Green Asparagus Exports, which is now the main instrument for protectingconsumers and exporters.

The Sampling Plan for Quality Inspections of Fresh Green Asparagus was established based on NTP011.101 and the Peruvian technical standard for sampling to inspect the quality of produce.

All lots of fresh green asparagus that enter Fro Areo are inspected for quality. This control measureis in addition to temperature control and the recording of information about the general conditions of allincoming shipments. As a result of this inspection, every two weeks exporters are ranked according tothe quality of their products and how much of each class of asparagus they exported. Each firmreceives details of their own rankings but not those of its competitors. The object is to make eachcompany 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 top-quality asparagus (based on the classes established in the s tandard). Asparagus of Less than ClassII was all but eliminated in the last farming year. Roughly 70% of asparagus exports now fall into theExtra and Class I categories (Figure 10).


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FIGURE 10. EXPORTS OF FRESH GREEN ASPARAGUS BY CLASS

Source: Fro Areo.

Fro Areo realized the importance of differentiating between the target markets according to theirdifferent quality requirements. Since 2003, it has ranked asparagus exports by quality and targetmarket. The United States and Europe are Perus main markets (see tables 1 and 2).

A similar system is used for the cold chain. Fro Areo issues a ranking of temperatures for the entireindustry, listing the average temperature of the produce of all the exporters at the moment it isreceived. This prompts exporters to try to improve their cold chain.

In its continuing desire to do everything possible to support the development of exports, Fro Areo willsoon be implementing a quality seal program. INDECOPI will certify and approve the process. Thequality seal will be a great boon to exporters, as clients will be able to request a quality certificate forthe product at the point of origin, thus enabling exporters to obtain a higher price. Fro Areos threemain processes (quality, operations and information) have ISO 9001:2000 certification, whichguarantees that they are managed to a high standard.

20

30

4050

60

70

80

2000 2001 2002 2003Years

Extra + Class I

Class IClass II

Figura 3F R I O A E R E O

Qualit y Ranking - U SA Asociacin Civil

From : Jan/01/2003 00:00 to : Dec/31/2003 23:59

Pto Exporter E I II


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F R I O A E R E O Ranking de Calidad - E U ROPA Asociacin Civil

Del : 01/Ene/2003 00:00 Hasta : 31/D ic/ 2003 23: 59

Pto Exportador E I II


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In this improvement process, it is very important to know the costs of qua lity10 that firms can incur,which may be greater than the benefits , and a factor that may determine whether a company stays inor withdraws from the market. Studies conducted in sectors and companies with stable qualitysystems suggest that the impact of quality costs on the solvency of firms is significant, although theyvary a great deal from sector to sector and according to the quality systems level of development andthe method of data collection11. Generally speaking, firms have traditional costing systems that do nottake the effects of non-conformance into account. As a result, they are unable to evaluatecomprehensively the improvements they introduce.

In Peru, research was carried out on the design and testing of a system for measuring non-qualitycosts and their impact on the viability of small and medium enterprises (SMEs), with a view todeveloping and validating a tool to support the firms quality management and the latters impact onthe viability of SMEs that export or have export potential. A test was conducted among SMEs in twoproductive sectors (agroindustry and manufacturing) to evaluate the impact of quality costs12 on thecompanies viability and develop a proposal for applying the results of the cost measurement systemas part of short- and medium-term improvement processes.

The research suggests that Peruvian businesses urgently need to implement quality managementsystems and make improvements to reduce the impact of non -quality costs, which in the casescovered by the research have reached over 20% (internal and external failures ).

The research also confirmed trends and pinpointed the factors that most affect companiesperformance, depending on how far they have gotten in implementing a quality management system 13.Thus, for companies in the agroindustrial sector that have no formal system (i.e., the system is at a

very early stage in its development), the costs of external failures increase. Those same costs tend tofall as the development of the quality management system progresses, notably so when companiesarrive at an approximation of the formal system.

The research also suggests that the costs of conformance (prevention and appraisal) increase at thestart of the process of implementing a quality system, as do internal errors, because that is when alloccurrences begin to be recorded. Said costs decrease with the introduction of corrective andpreventive measures (depending on the discipline involved and the level of training of the personnel)aimed at moving toward the implementation of a formal quality system and as the system matures. Inreactive quality management systems, the prevention costs are bigger than the appraisal costs, whenall the systems records and documents are beginning to be implemented. Prevention costs stabilizewhen quality management systems approximate a formal system.

For all the reasons described above, the strategic planning of quality is essential if companies are toremain in the market. The reduction of quality costs and the continuous improvement of quality have adirect correlation with the market.

10 Quality costs are a measurement of the costs directly related to ensuring the quality of the product or service - including all the requirements ofthe project or services as established by the company and the contracts with customers and society (Campanella 1992).11

Ichikawa y Daz 2002.12

Ichikawa y Daz 2002: Costs of Quality: Prevention co sts, evaluation costs, costs of internal and external errors, and hidden costs.13

Ichikawaand Diaz 2002: Levels of maturity of performance: "No formal system exists:" There is no apparent systematic estimation without results, poorresults or unpredictable results. "Reactive estimation" Systematic estimation based on the problem or on prevention; few data available on theresults of improvement. "Formal estimation of stable system:" Partial systematization. "Formal stablesyst em:" Systematic approach. "Continuousimprovement approach:" Improvement process in use; good results and trend toward improvement continues.


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IV. CONCLUSIONS AND RECOMMENDATIONS FOR FUTURE PROJECTS

1. Peru is the worlds leading exporter of asparagus. This is due, among other reasons, to theindustrys dedication to maintaining the highest standards of quality and safety.

2. Competitiveness through quality is an important part of strategic business plans in the asparagussector, and is essential if firms are to maintain their presence in the market. The reduction of quality

costs and the continuous improvement of quality have a direct correlation with the market.3. Countries can advance rapidly toward quality assurance and, accordingly, the modernization of theirfood control systems, if they endeavor to harmonize national sanitary standards and regulations withthose of th e Codex Alimentarius. This lays the groundwork for agreements recognizing theequivalence of inspection and certification systems that promote and increase exports. An efficientcontrol system guarantees the signing of such agreements on equivalence.

4. The countries need to participate actively in the work of the committees of the Codex Alimentarius,whose important role at the international level is widely recognized. Perus participation in the draftingof Codex standards led to a Codex standard for asparagus that reflects the quality and safety criteriathat the country proposed.

5. The drafting and implementation of standards harmonized with those of Codex Alimentarius, whichare recognized internationally, will help the asparagus industry develop a broad capacity to adapt tothe various quality requirements for international commerce.

6. The efforts to address the problems of the asparagus production chain focused on theestablishment of cooperation mechanisms, encouraged by the Government through its exportpromotion policy, and private enterprise.

7. All the factors of change that have contributed to the success of Perus asparagus industry fostereda public/private alliance, associative undertakings, capital investments, the introduction of moderntechnology and quality assurance, spearheaded by both the private and public sectors.


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BIBLIOGRAPHY

1. Campanella, J. 1992. Principios de los costes de la calidad. Diaz de Santos, Madrid.

2. Codex Alimentarius Commission. 1999. Report of the Eighth Session of the Codex Committee onFresh Fruits and Vegetables of the Joint FAO/WHO Programme, 1-5 March 1999. Mexico.3. Codex Alimentarius Commission. 2000. Report of the Ninth Session of the Codex Committee onFresh Fruits and Vegetables, 9-13 October 2000. Mexico.4. Codex Alimentarius Commission. 2001. Report of the Twenty-fourth Meeting of the CodexAlimentarius Commission of the Joint FAO/WHO Programme, 2-7 July 2001. Geneva, Switzerland.

5. Comit Tcnico de Normalizacin de Esprragos. 2004. Plan de Negocios 2004. Lima, Peru.6. Comit Tcnico de Normalizacin de Esprragos del INDECOPI. 2001. Norma Tcnica PeruanaNTP 011.101:2001 ESPRRAGOS. Esprragos frescos. Requisitos. Peru.

7. Comit Tcnico de Normalizacin de Esprragos del INDECOPI. 2001. Norma Tcnica PeruanaNTP 209.401:2001 ESPRRAGOS. Prcticas de higiene para el procesamiento de esprrago fresco.Peru.

8. Comit Tcnico de Normalizacin de Esprragos del INDECOPI. 2003. Norma Tcnica PeruanaNTP 209.402:2003 ESPRRAGOS. Buenas prcticas agrcolas. Peru.

9. Daz, A. 1999. La Calidad en el Comercio Internacional de Alimentos. PROMPEX, European Union-PROMPEX Export Agreement.

10. Fro Areo Asociacin Civil. 2003. Casos exitosos de exportacin: Asociatividad. Presentation atPERU XPORT 2003.

11. Ichikawa, T.; Daz, A. 2002. Diseo y Ensayo de un Sistema de Medicin de los Costes de NoCalidad y su Impacto en la Viabilidad de las Pymes. PROMPEX, CONCYTEC.

12. IPEH (Instituto Peruano del Esprrago y Hortalizas). 2003. Asociatividad. Clave para el Desarrollo

de la Competitividad del Agro. Creatividad Empresarial.

13. Ministerio de Trabajo y Promocin del Empleo. 2001. El Empleo en las Regiones del Per.

14. Paz, L. 1998. La Agricultura, la Agroindustria y la Agroexportacin del Per en el Siglo XXI.PROMPEX.

15. PROMPEX 2004. Informe sobre aplicacin de la NTP 011.101 ESPRRAGOS. Esprragosfrescos. Requisitos.

16. PROMPEX. 2004. El Esprrago en el Per.

17. Robles, F. 1997. Diagnstico de la Actividad Esparraguera Nacional. Boletn FONAGRO ChinchaN 34. Chincha, Peru.

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Asparagus in Peru