World Grain - April 2022 - 34

(International), which includes edible
oils in Bolivia and hair care products in
Argentina; and Consumer Goods (Peru)
which includes cookies and crackers,
pasta, edible oils and laundry detergents.
The Peruvian company is No. 1 in marketshare
in all those categories with the exception
of hair care products in Argentina
(No. 2) and fish feed in Chile (No. 4).
Consumer Goods is responsible for
43% of Alicorp's total revenues, 22%
of its revenues come from the Aquafeed
segment, and Crushing brings in 18%
of the company's revenues. The company's
total revenues in 2021 totaled
$2.8 billion.
Alicorp, which has 14 companies
in its corporate family, employs 4,750
throughout South America.
Alicorp's Callao mill, which can produce up to 1,580
tonnes of flour per day, is highly automated and
features Bühler's control system.
Union, Canada, the United States and Argentina.
In conjunction with adding the new milling line,
Alicorp is increasing its wheat storage capacity, with
additional grain silos expected to be installed by
November 2022. The combined storage capacity of the
new silos is 20,000 tonnes.
The plant in Callao is one of seven flour mills operated
by Alicorp, all of which are based in Peru and in
strategic locations to maximize its operations and best
serve its customers.
With the expansion of the Callao plant, which is
the company's largest mill, the combined daily flour
production capacity of the seven mills averages
4,000 tonnes.
With sustainability being one Alicorp's core principles,
the company approached the expansion with
environmental considerations in mind.
" We were able to reduce our carbon footprint through
the use of more environmentally-friendly energies and
reduction of electrical consumption, " Narvaez said.
Core business segments
Although milling always has been an important part for
Alicorp's portfolio, it represents a relatively small part
of the company's sales. Alicorp's B2B segment, which
includes industrial baking flour, industrial oil and shortenings,
accounts for about 20% of the company's sales.
Alicorp's other business segments include Crushing,
which involves the processing of soybeans and sunflower
seed; Aquafeed, which includes fish feed and shrimp
feed production in Chile and Peru; Consumer Goods
34
Stefan Stern, supply chain vice president, said the
company's roots date back to 1956 and the Industrias
Anderson, Clayton & Co., manufacturer of oils and
soaps. In 1995, La Fabril, a manufacturer of oils and
fats, was acquired.
" In 1996, we acquired Nicolini Hermanos and Molinera
Four millers dominate
Peru market
Peru's milling industry depends heavily on imported
wheat to produce its estimated 1.6 million
tonnes of flour (wheat equivalent) per year.
Total wheat consumption in the 2021-22
marketing year is estimated at 2.4 million
tonnes, an increase of 5% from the previous
year, according to a recent report from the
Foreign Agricultural Service (FAS) of the US
Department of Agriculture.
Of the flour produced each year in Peru,
63% goes to the local baking industry, 20%
goes to pasta manufacturing, 12% to the
cookies and crackers sector, and 5% is earmarked
for small-scale, family use. Approximately
70% of domestic flour is sold through
traditional markets, while the remaining 30%
is sold in supermarkets.
The wheat milling industry is highly concentrated,
with the four largest millers, which includes
Alicorp, being responsible for around
85% of annual flour production. Alicorp's accounts
for more than 60% of the country's flour
production, according to the FAS report.
April 2022 / World Grain / World-Grain.com
World Grain - April 2022

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