Agro-export sector improves its labor competitiveness with CAF support

(Lima, October 22, 2007).– CAF representative Eleonora Silva Pardo, and the president of the Peruvian Coalition of Agro Export Associations (AGAP), Guillermo Van Oordt, today signed a technical cooperation agreement which will finance the Competitiveness Strengthening Program for the agro-export sector, through good labor practices and social responsibility.

After explaining that the project aims to create awareness, provide training and implement minimum standards of social responsibility and good work practices, Silva Pardo said that competitiveness in a sector as labor intensive as agro-export had to be understood in an integrated way, achieving progress in technology, productivity and economic and social inclusion of workers and their families, combined with increased participation on international markets.

The non-traditional agro-export sector has grown exponentially in recent years from $350 million? in exports in 2000 to $1,300 million? in 2006, the CAF representative added.

"This growth has led to increased investment, expansion of areas of cultivation, better productivity and above all a substantial increase in the labor force employed in rural areas. An estimated 600,000 workers are currently directly employed in this activity. With this project CAF is promoting the business view of sustainable competitiveness which can be replicated in more enterprises in the sector and in other economic activities," Silva Pardo said.

Van Oordt said the agreement signed with CAF was for a major project in the valleys of Huaura, Huaral, Cañete, Chincha, Pisco, Ica and Nazca, with coverage of 60 companies and direct impact on 28,000 workers.

"The organizations associated with AGAP are looking to the project to strengthen basic aspects of good labor practices to set a standard in the agro-export sector. These improvements will guarantee fair relations and social peace with the workers, which will result in a general improvement in the competitiveness of the sector," Van Oordt added.

AGAP has 300 members from the entire agro-exporter chain from field to final destintation. The following organizations are members of the association: PROVID, PROHASS (avocados), PROLUCUMA, PROCITRUS, APECAP (onions), EMPA (mangos), IPEH (asparagus, paprika, pepper, piquillo and artichoke), JNC (coffee), APPCACAO and PROLIMON.