Due to the current floods, the government in Bolivia has proclaimed a state of emergency, partially evacuating the province of Pando. This state of emergency has an impact on the value chain of Brazil nuts, one of Bolivia’s most important products.
Due to the fact that many factories were not able to ship their goods on time to the ports, there are already significant delivery delays in production. In addition, the local producers are currently not able to collect the products due to the floods in the rainforest, so the quality of the Brazil nuts will be impaired, says CEO Mario Ebel. “Brazil nuts only grow in the rainforest and can not be cultivated on plantations. This year we are having a lot of rain. Because of the floods, it takes an extremely long time to bring the raw nuts in the shell from the rainforest to the factories in the cities. There are significant delivery delays and backlogs in the factories.”
In addition to the delivery delays the industry must expect potential quality problems. Ebel: “The harvest season usually starts together with the rainy season, from November to the beginning of April. Due to the floods many nuts are under water and therefore inaccessible to collectors. A big risk for the industry is that collectors will mix good and rotten produce in late April or early May.”
Source – http://www.freshplaza.com