Product supply chain hit by road closures

The closure of roads throughout the country and the strike of groups of workers demanding lower prices and an end to corruption are impacting the operation of the product supply chain.

The first symptoms reports La Prensa are the shortage of agricultural products, a slowdown in retail business, and the loss of reservations in the hotel industry.

 Luis Frauca, president of the Industrial Union of Panama (SIP) said: “We already have members with problems receiving supplies and distributing what they have in their warehouses.”

There are industries that have closed production lines and sent staff on vacation, at a time when the industrial sector has just reported that it had recovered the level of employment prior to the pandemic.

Frauca mentioned that the situation of lack of confidence in the Government caused citizens discomfort, but at the same time it demands that free transit be guaranteed.

The industrial sector is closely linked to other activities, such as construction and tourism, which usually demand the products supplied by the industry.

Vegetable shortage
“There is a shortage of all vegetables in Merca Panama,” said Yoris Morales, president of the Association of Merca Panama Merchants, who warned that the existing inventory is not enough to meet the demand of restaurants, hotels and large industries since it has been impossible to receive products normally since last Friday.

Morales explained said the situation has worsened over the days. The first products that began to be scarce in the wholesale galleys were those that are harvested in Tierras Altas, Chiriquí. On Friday, July 8, the carriers decided not to travel in the face of so much uncertainty. “Then, during Saturday the 9th and Sunday the 10th of July, the situation was zero harvest shipments to Panama City.”

Chiriquí is known as the granary of Panama since 80% of the country’s agricultural production comes from that province.

The situation that was already being experienced with shipments from the Highlands was joined by the dispatches from the Caisán and Río Sereno sectors, in Chiriquí. “Then nothing comes. There are no eggplants, lettuce, cabbage, carrot, broccoli, or bell peppers.”

Since Tuesday, July 12, there began to be a shortage of bananas grown in Bocas del Toro, while there are already delivery problems with vegetables harvested in central provinces. We are talking about cassava, yams, or squash,” said the merchant.

Morales calculates that more than 140 mule trucks and trucks that supply the market daily are stopped, producers stop receiving $1.5 million in daily transactions, while restaurants and hotels are already beginning to show signs of concern about the possibility of running out of food.