U.S. fresh produce importers have been shifting to short-term contracts with suppliers as concerns grow over contracting demand, website Agraria.pe reported.

Universidad del Pacífico international business management director Juan Carlos Mathews, told the website the move away from specific season contracts was a preventative measure against a possible fall in local consumption.

He said the situation was not as bad as in 2008-09 when orders were cancelled or changed, but importers were still cautious and the majority have been asking for products to be delivered directly to their stores, the story reported. This means exporters have to cover Delivered Duty Paid (DDP) and carry most of the risk.

"The Americans are doing it so that the exporter has to make a bigger effort in getting closer. This is good because it obliges local businesses to diversify their markets," Mathews was quoted as saying.

Agromar Group manager Fabián Hidalgo said the U.S. crisis has forced exporters to be more flexible and versatile in their attention to clients, but this has also led to a loss of negotiation power.

"The U.S. is very important for us because they are the biggest buyers and the most punctual payers. However, a possible recession won't cause a dramatic fall in shipments because we have diversified our destinations, being the emerging countries that are becoming more involved," Hidalgo was quoted as saying.

Photo: Flickr, Jerry Michalski

www.freshfruitportal.com