Broom Frío operates cold storage and packaging services to fruit and vegetable producers in the valley of Ovalle in Chile. With a capital contribution of USD nine million from IFU, Broom is now looking to develop its current activities and build a new cold storage facility in Peru. This will enable Broom Frío to service its already existing Chilean clients in Peru, and at the same time build a portfolio of local and international customers in the fast-growing Peruvian market.
Developing the local agro-industry
Broom Frío can service a variety of crops such as citrus fruits, avocado, grapes, blueberries and asparagus. As they have different harvest seasons, Broom can optimize its cooling and storage capacity year-round. Therefore it is also an advantage to local producers to let Broom handle the cooling and storage instead of building their own facilities, which cannot be utilized effectively.
“Offering cold storage and related services close to the fruit and vegetable producers is our core business. Time, particularly cooling immediately after harvest, is a critical factor to the fruit quality and to shelf life in the supermarkets.”
Andrés Nuñez Sørensen, CEO, Broom Frío
IFU has many years of experience investing in agribusiness companies in developing countries and emerging markets, including Latin America. By teaming up with professional partners, IFU can promote transfer of knowledge in operations as well as management.
“Chile is one of the leading fruit exporters in the world, and through our investment partnership with a competent local partner, we contribute to strengthening the competitiveness of Peru’s agriculture, and do so in a sustainable way right from the outset.”
Jakob Anker Tvede, Investment Director, IFU.
People are fundamental to success
For Broom Frío, IFU’s investment provides the necessary impetus to the company’s internationalization strategy. But equally important the partnership includes an ambition of taking Broom Frío to best in class when it comes to corporate governance, environmental and social responsibility.
In Peru, the new facility will be in the Lambayeque region, which in recent years has witnessed an increase in poverty rates. Broom Frío will bring in new jobs and in total the two operations will when fully operational create 250 full-time equivalent jobs. 95 per cent of the employees will be unskilled workers and 35 per cent female.
– Our people are fundamental to our success, and we want to do things the right way. Their safety and well-being are important on their own merits, but also to our competitiveness. Nobody needs to convince me about that. Hopefully, we can be a role model in the local community, to our customers and to our competitors, says Andrés Nuñez Sørensen.