Alicorp expands Peru plant anticipating increased demand for flour products

PERU — Alicorp, the largest miller of flour in Peru has expanded the flour capacity of its Callao plant by 50% in anticipation of increased demand for flour products in the country.

The flour business is an important part of Alicorp’s B2B segment which includes industrial baking flour, industrial oil and shortenings and accounts for about 20% of the company’s sales.

Consumption of wheat in the country has been on the incline since 2010 and amounted to 2.23 million metric tons, up by 1.13 percent compared to 2.21 million metric tons of the year before, according to data from Statista.

In addition to heightened demand, Oscar Narvaez, project engineering manager for Alicorp sighted the bid to “improve our product quality and customer service,” as prompting the expansion.

Stefan Stern, supply chain vice president said with the additional flour mill production capacity in Callao, Alicorp “will still be able to supply more flour variety to our customers’’.

This expansion represents a 500-ton increase in production, bringing the daily total up to 1,580 tons of flour (wheat equivalent).

The expansion of the nine-floor, 1,700-square-meter facility was completed in a year and includes a new milling line that features fully automated Bühler equipment.

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This, according to Narvaez, is poised to increase milling yield while keeping energy usage at a minimum.

Additionally, wheat storage silos were constructed, concrete silos for wheat conditioning were erected, and a truck filling station for flour and byproducts was installed.

Peru’s primarily hilly terrain makes wheat a minor production crop in the country. As a result, Alicorp imports almost all of its wheat.

Narvaez said the majority of the wheat Alicorp imports are from the European Union, Canada, the United States and Argentina. 

Together with the newly constructed new milling line, Alicorp is increasing its wheat storage capacity, with additional grain silos expected to be installed by November 2022, increasing storage by about 20,000 tonnes.

The expansion was an environmentally conscious undertaking. “We were able to reduce our carbon footprint through the use of more environmentally-friendly energies and reduction of electrical consumption,” said Navarez.

The Callao district plant is one of seven strategically located plants across Peru that allow the corporation to maximize its operations and adequately serve its customers.

With the expansion of the Callao plant, the combined daily flour production capacity of the seven mills averages 4,000 tons.

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