Annual Report 2009 - Camposol

Annual Report 2009


Casilda Calcina Yunganina 

Shift Leader 

Pepper Area – Plant. 

“I have been working in Camposol for ten years. I came from the city of Juliaca in the Department of 

Puno to visit my family and they told me there was a company that was looking for workers. I was interested, 

I applied and they hired me in the Pepper area. I entered Camposol as an operative, I worked 

for two months as a packer, then they promoted me to quality controller and then after one year to I 

took over the position of General Supervisor of the Pepper Area. 

Approximately 3 years later I was placed on the staff payroll and after five years appointed shift leader. 

My main function is to lead the team of 400 people that I am responsible for. First I have to organize 

myself, train the people, teach them what I know and what I have been taught here. It is important to 

share things with them and to respect the rights of each worker. 

I dream that the company will be a world leader in all the products we export such as fruit and vegetables 

and I would also like to know the products of the other areas. 

In Camposol one can improve not only in the professional sense but also as a person. What I appreciate 

most is the integration, the team work and the commitment that employees have with the 

company.”

CONTENTS 

1 

Letter from CEO 10 

5 

Key Investment Considerations 42 

2Overview 14 

2.1 Vision 

2.2 Mission 

2.3 Values 

2.4 Business Principles 

2.5 Our People 

2.6 Board of Directors 

2.7 Management Team 

2.8 Organizational Chart 

2.9 Legal Structure 

2.10 Brief History 

6 

Corporate Governance 46 

3 

Products & Categories 26 

7 

Board of Directors’ Report 62 

4 

Management´s Report 30 

4.1 Main Activities 

4.2 Market Situation 

4.3 Company Strategy 

4.4 Summary of the Year 

4.5 Operations 

4.6 Working Environment 

4.7 Research & Development 

4.8 Social Responsibility 

4.9 Financial Results 

4.10 Allocation of Net Income 

4.11 Shares and Shareholders 

4.12 Branches & New Offices 

4.13 Contingency Plan, Risk Management and 

Uncertainties 

4.14 Financial Calendar 

4.15 Future Prospects 

4.16 Auditors 

8 

Independent Auditors’ Report 

and Audited Financial 

Statements 62

KEY HIGHLIGHTS 2009 

Ever since its creation in 1997, CAMPOSOL has experienced a fast and steady level of growth in sales 

(over 32% CAGR -Compound Annual Growth-). However, due to the effects of the international financial 

crisis experienced since the fall of Lehman Brothers in October 2008, growth was no longer the first 

concern for the Company. 

2009 was thus a year of transition for CAMPOSOL, in which it worked hard on gaining major efficiencies, 

reducing overall risk, increasing internal control and improving management information systems in order 

to better support additional growth in the years to come. 

Nonetheless, it is worth noting that the Company planted an additional 1,200 has. of avocado and is 

confident that 2010 will bring a more favorable scenario and new opportunities to continue growing in a 

more profitable way. 

Main 2009 achievements were: 

• Strengthened operations in Europe and the opening of a commercial branch in the Netherlands to 

reinforce focus on fresh products. 

• First harvest and sale of Grapes to Asia & Europe. 

• Start of SAP implementation in fields and Human Resources payroll to complete integration of all areas 

under an ERP platform. 

• Initiated the Sustainable Agriculture Program and will present our first Sustainability Report in 2009. 

• Changes in top management team: In December 2009 Juan Jose Gal’Lino resigned from the Chief 

Executive Officer (CEO) position and in January 2010 Fabio Matarazzo was appointed as new CEO.

1Letter from CEO 

Times of crisis are also times of opportunity 

Moving into 2009, CAMPOSOL faced extraordinary uncertainty with regards to how 

our main markets where going to develop. Our two most important markets, the US and 

Spain, were especially hurt by the tough economic conditions that evolved during 2008. 

At the same time CAMPOSOL struggled with an unfinished expansion plan, new fields 

with low yields and high costs, as well as high inventory levels – especially in preserved 

asparagus. High levels of inventories built up throughout the entire distribution chain did 

not make the situation easier. Our preserved white asparagus became hard to move, even 

at reduced prices. In addition we were servicing an important bank debt. 

Fortunately our team, with the support of our directors and shareholders, found opportunities 

in such turbulent times and these opportunities were found inside the company: When 

growth is the primary concern, efficiencies sometimes are not. The team shifted focus to 

corrective measures and set a goal of making CAMPOSOL profitable even with so called 

“recession prices” on our products. This focus was necessary in both short term cash flow 

and long term sustainability of the company. But focus on effectiveness and profitability 

should also improve operational leverage. When prices improve in the future CAMPOSOL 

is ready to deliver attractive margins and results. 

One obvious need was to reduce fixed costs. Through tough and well-considered decisions 

the company reduced its annualized fixed cost base by USD 2.5 MM. Other areas of 

importance were process efficiency and procurement. We made process improvements 

in certain fields such as packing and administration and, by better negotiations with our 

suppliers, we achieved lower prices and improved payment terms. To support these 

operational efforts, the slogan “to do more with less” was institutionalized internally. 

The impacts on the turnover of our operating working capital were evident and allowed 

us to obtain the liquidity needed to finish the avocado new plantings and to reduce debt. 

This will be discussed in further detail in the financial results section of this annual report. 

Despite challenging work with cost cutting and operational improvements, the team also 

prioritized strategic work. During the year it became clearer to the team that CAMPOSOL’s 

competitive advantages within the fresh product market are substantial and make it 

possible to become an important player in the sector. Energy was therefore redirected 

towards the area, especially in asparagus. A new branch in the Netherlands was also 

opened to be closer to the fresh products market and to better serve existing costumers, 

as well as to develop commercial relationships with new ones. The consequence was to 

take a few steps back from the preserved line. 

Today we are even stronger in our faith that CAMPOSOL is capable of creating substantial 

value in a rapidly growing fresh market, a market that offers good opportunities to 

differentiate from other players. The preserved-product market on the other hand is, as 

we know, a highly mature market with lower entry barriers. It also faces competition from 

China and we need to be prepared. 

As a result of increased strategic focus on the fresh-product market, CAMPOSOL 

increased its volume sold of fresh white asparagus by more than 45% in 2009 compared 

with 2008. It made a strong contribution to the year’s results. 

We also achieved important milestones in our people, on our culture and 

our technological platform. We became active members of the Global 

Compact, established continuous improvement programs in the fields and in 

packing, implemented programs for Managerial Capabilities and completed 

the implementation of SAP in the entire company by incorporating Human 

Resources and Fields. 

When I joined the company in January 2010, it was a pleasure to hear these 

achievements made in 2009 from my team in our first meeting. I am sure 

the company did the right things during 2009 and that CAMPOSOL today is 

a more solid, more efficient company, driven by a highly motivated team. I 

now have the challenge to lead this team to even higher achievements and 

I am looking forward to talking to you about them in our next Annual Review. 

With regards, 

Fabio Matarazzo di Licosa 

CEO

2Overview

16 

camposol annual report 2009 

Overview 

Product & 

categories 

Management’s 

Report 

Key Investment 

Considerations 

Corporate 

Governance 


and Audited Financial Statements 

CAMPOSOL’s is the leading agroindustrial 

company in Peru and the 

largest asparagus exporter in the world. 

The Company owns all the fields where 

its products are harvested, having total 

control of the growing, harvesting and 

packing phases of its final products. 

The CAMPOSOL products’ portfolio 

include: White & Green Asparagus, 

Piquillo and Sweet Peppers, Avocados, 

Mangoes, Grapes and Citrus (tangerines), 

which are packed fresh, frozen or 

preserved, and exported to the world. 

By being vertically integrated, from the 

growing fields to the finished products, 

CAMPOSOL guarantees that only 

products of the highest quality are 

offered to our wide range of customers. 

2.1 Vision 

To be world leaders in the growing, 

processing and sale of top quality fruit and 

vegetables by means of an ethical and 

efficient management that ensures the 

long term sustainability of our business. 

2.2 Mission 

To reliably satisfy the fruit and vegetables 

needs of our clients and consumers 

around the world with efficiency, quality 

and responsibility. 

2.3 Values 

CAMPOSOL has established the 

following corporate values: 

Integrity 

We are trustworthy, we honor our 

commitments and we are responsible for 

the consequences of our actions, always 

contemplating the triple bottom line: 

economic, social and environmental. 

Respect 

We appreciate and esteem people 

and we foster good relations within an 

environment where ideas and feedback 

are highly appreciated. 

Team work 

We share our objectives and strategies 

and we strive to be communicative 

and transparent, creating an open 

and flexible atmosphere where team 

objectives take precedence over 

personal goals. 

Excellence 

We all work to attain the highest standards 

of performance, innovation and quality 

in all areas of our processes, activities 

and products. We give great attention 

to detail and endeavor to comply with 

the demands and expectancies of the 

international market. 

Austerity 

We work towards achieving efficiency 

along the whole value chain while 

maintaining strict discipline on our cost 

management and implementing policies 

that impede questionable spending. 

2.4 Business Principles 

CAMPOSOL abides by four Business 

Principles which guide the work it 

carries out and the way it interacts with 

society: 

Human Resources Management 

CAMPOSOL recognizes its commitment 

to its employees by establishing the 

best working conditions to enable 

professional and personal wellbeing and 

development, in a friendly atmosphere, 

with the aim of fulfilling our vision, 

mission and values. It further provides 

training opportunities on an ongoing 

basis and identifies and recognizes 

outstanding employees. 

Ethics 

CAMPOSOL is convinced that in order 

to consolidate and develop itself, it 

must follow its business objectives and 

ethical principles and apply them in its 

relations with customers, suppliers, 

shareholders, employees and society 

in general. High standards of ethics 

and integrity ensure our credibility 

in the eyes of our stakeholders and 

CAMPOSOL expects all its employee 

to maintain the highest standards of 

ethics and integrity. 

Honesty, dignity, respect, loyalty, proper 

behavior, efficiency, transparency and 

awareness of ethical principles are the 

highest values that guide CAMPOSOL’s 

relationship with stakeholders. 

Social development and community 

relations 

CAMPOSOL is committed to balancing 

the impacts caused by the industry, 

enhancing the positive impacts that 

create value for the company and 

the society. To this end, we carry out 

actions in the localities within our area 

of influence, fostering synergic and 

ethical relations based on trust between 

the company and the inhabitants; the 

local, regional and national government; 

grassroots organizations and other 

stakeholders involved; establishing 

long-lasting relationships of ongoing 

dialogue and mutual respect with our 

neighbors. 

Quality, Environment, Safety and 

Health 

CAMPOSOL reflects its responsible 

attitude in all its activities, guaranteeing 

customer satisfaction, the health and 

safety of its employees and respect for 

the environment. 

By complying with the following 

features, CAMPOSOL undertakes to 

maintain an Integrated Management 

System of Quality, Environment, Safety 

and Occupational Health, based on 

international standards. Oriented 

towards the principle of continuous 

improvement in order to obtain highquality 

products, we ensure their 

traceability and optimize processes for 

the reduction of environmental impacts, 

satisfaction of all customers, employees, 

suppliers, communities, government 

and shareholders, as well as avoiding the 

contamination that is present in different 

activities; guaranteeing compliance with 

Efficiency, quality and 

responsibility. 

applicable legal requirements and other 

objectives to which we subscribe. 

2.5 Our people 

As in most agro-industrial companies, 

the labor intensity of CAMPOSOL’s 

activities varies throughout the year. The 

number of people employed depends 

on the season, the product and the 

volume being harvested, all of which 

have a direct impact on our operations. 

In this respect, our employees are 

organized in the field, in the plant and 

in administrative tasks, three areas 

that comprise an integrated and highly 

competent human team. At the end 

of 2009, CAMPOSOL registered 8,497 

employees in its operations in Chao/ 

Viru, Piura and Tumbes and in its offices 

in Lima. Our labor force is composed 

of around 94% operations workers and 

6% administrative staff and executives. 

17

18 


Overview 

Product & 

categories 





Corporate 

Governance 



2.6 Board of Directors 

Mimi Berdal 

Director 

Christopher Yetter 

Director 

Samuel Dyer Ampudia 

President of the Board 

Mr. Dyer Ampudia earned a degree 

in Business Administration from 

Universidad Nacional Federico 

Villareal and is a graduate of 

the Top Management Program 

– International Business- from 

Universidad de Piura. He was 

founding shareholder and 

Chairman of the Board of 

COPEINCA ASA, Galvanizadora 

Peruana S.A., Aceros y Techos S.A. 

Consorcio Latinoamericano S.A. 

and Ferreteria Dyer S.A., among 

others. He is Chairman of the Board 

of the D&C Group (Dyer and Coriat), 

one of the most successful family 

business groups in the country 

in recent years, which has begun 

its diversification into mining, 

agribusiness, real estate and 

construction businesses, through 

Apurimac Ferrum S.A. Ausinca, 

Campoinca and IC Viviendas. He is 

currently Chairman of the Board of 

CAMPOSOL. 

Ms. Berdal earned a law degree at 

the University of Oslo in 1987 and 

was admitted to the Norwegian Bar 

Association in 1990. She was a partner 

of Arntzen de Besche Law Firm in Oslo 

until 2005 and since then has worked 

as an independent legal and corporate 

counselor. Ms. Berdal is also a director 

of Itera Consulting Group ASA, 

Rocksource ASA, Gjensidige Pensjon 

og Sparing Holding AS, DnB NOR 

Eiendomsfond 1 AS, Gassco AS, Q-Free 

ASA, Infratek ASA and COPEINCA ASA. 

Gianfranco Castagnola 

Director 

Graduated in Economics from 

Universidad del Pacífico, with a 

Master’s Degree in Public Policy from 

Harvard University. He is CEO of Apoyo 

Consultoría and Chairman of the Board 

of AC Capitales SAFI. He was a Member 

of the Board of the Banco Central de 

Reserva del Peru and currently is a 

Member of the Board of Austral Group, 

Cementos Pacasmayo, Scotiabank, 

Saga Falabella and Maple Energy. 

Investment Analyst at QVT 

Financial LP, a New York-based 

private investment firm, where 

his investment focus is emerging 

markets with a special emphasis 

on Latin America, and he primarily 

trades public and private equities 

and sovereign credit positions. 

Previously, he was an Assistant 

Professor in the Faculty of 

Economic and Business Sciences 

of the Universidad de Navarra 

in Pamplona, Spain, among the 

top private universities in Spain, 

where he taught undergraduate 

courses focused on Capital 

Markets and Corporate Finance. 

Prior to that, he worked at the 

Morgan Stanley emerging markets 

credit and currency trading desks 

(in New York) and with the energy 

investment banking firm Petrie 

Parkman LLP (in Houston). Mr. 

Yetter holds a B.A. degree in 

Economics and Mathematics 

(magna cum laude) from Harvard 

University and an MSC degree 

in Economics and Finance (top 

honors) from the Universidad de 

Navarra. 

Frixos Savvides 

Director 

Public Accountant, associate of the Public Accountants’ Institute of England and Wales. A 

founder of the auditing firm PKF Savvides and Associates in Cyprus where he held the position 

of managing partner until 1999, the year he was appointed Minister of Health for the Republic of 

Cyprus, a position he held until 2003. He was named Director of Frontline in 2005. He is also a 

board member of Golar, Deep Sea Supply and other shipping companies listed on the Oslo Stock 

Exchange, Nasdaq and the New York Stock Exchange. 

19

20 


Overview 

Product & 

categories 





Corporate 

Governance 



Samuel Dyer Coriat 

Director 

2.7 Management Team 

Piero Dyer Coriat 

Deputy CEO 

Mr. Dyer is a Business Administrator 

with a Master’s Degree in Finance and 

Administration from the Miami University 

(Florida USA). After having obtained 

ample experience in the various aspects 

of the Peruvian fishing industry, he was 

named CEO of COPEINCA in 2002. 

Since that date, his goal has been to 

transform COPEINCA into a world 

class organization, based on principles 

of Corporate Governance and Social 

Responsibility. 

Hugo Walter Chumbez 

Director 

Bachelor’s degree in Accounting 

from Universidad Ricardo Palma, 

with studies in banking, finance, 

management and administration from 

INCAE Business School (Costa Rica). 

Experience in Ernst & Young and other 

Peruvian audit companies. Over 20 

years of experience in the Peruvian and 

International banking sector, (Lloyds 

Bank PLC, Banco del Sur, Banco del 

Libertador (Group Luksik Chile), Banco 

de Lima and others). He has been the 

Director of Carbolan (Pelikan Peru) and 

of Copeinca. Since 2004, he has been 

an associate and Director of Intelfilm 

S.A. He was appointed Director of 

CAMPOSOL last year. 

Fabio Matarazzo di Licosa 

Chief Executive Officer (CEO) 

Fabio is an accomplished business 

leader with extensive global experience 

spanning Latin America, Europe and 

Asia, primarily in leading Agribusiness 

and fast moving consulting groups, 

multi-national companies like IRFM, 

The Coca-Cola Company and Del 

Monte Foods. He has strong General 

Management, Operations and 

Commercial Marketing expertise in 

both emerging and mature markets. 

In addition he has worked on a wide 

range of food industry rationalization, 

integration, acquisition and turnaround 

projects. Before joining CAMPOSOL 

as CEO, his latest assignment in SEA 

was to acquire first hand expertise 

on the Philippines, India, China and 

Singapore FMCG markets, having 

successfully lead the regional Del 

Monte Pacific Company to an 

enhanced professional level. Fabio 

holds a B.A. with a Major in Economic 

Theory coupled with numerous post 

graduate specialized Marketing & 

Sales courses. He is fluent in Italian, 

Portuguese, French and Spanish. 

Jorge Ramírez 

Chief Financial Officer (CFO) 

He holds a Master’s Degree in 

Business Administration and a 

Bachelor of Science Degree in 

Mechanical Engineering from 

University of Miami (Florida 

USA). He worked as technical 

and financial analyst for the 

D&C Group, in the new projects 

division and General Manager 

of Apurímac Ferrum, an Iron Ore 

Exploration Project. He joined 

CAMPOSOL in 2008 as CFO 

and is a member of the Board of 

Copeinca ASA. 

Mr. Ramirez graduated in Business Administration 

with a Master’s Degree in Finance from Loyola 

University, New Orleans, USA, and with an MBA 

from ITESM (México) - ESPOL (Ecuador). He has 

vast international experience in Strategic Planning, 

Corporate Finance, Mergers & Acquisitions and 

International Affairs. Mr. Ramirez previously worked 

for Amanco Group (1995-2008), holding various 

positions in Ecuador, Costa Rica and Brazil, his last 

one being CFO for Latin America. 

21

22 


Overview 

Product & 

categories 





Corporate 

Governance 



Gustavo Guerrero Paretto 

Operations Manager 

Guillermo Lohmann 

General Counsel 

He graduated from the Universidad 

Nacional Agraria La Molina as an 

Agronomist with postgraduate studies in 

Soils and Fertilizers. His work has been 

related to agro-exports since 1987. He 

worked in Roots Peru S.A. and Talsa and in 

2001 was appointed Agricultural Production 

Manager of CAMPOSOL for Asparagus 

Pepper and Artichokes. Since 2008 he has 

been responsible for implementing and 

preparing all the company’s production 

areas, which includes fields, industrial 

production facilities and the quality 

assurance systems. 

He graduated as a lawyer from the 

Pontificia Universidad Católica del 

Perú. He was part of the law firm 

Rodrigo, Elias & Medrano, from 

January 2005, acquiring the status 

of associate in January 2007. He 

has ample experience in the areas 

of commercial arbitration and civil 

litigation. He participated in the training 

program in negotiations in accordance 

with the Harvard University Model. In 

December 2007 he joined CAMPOSOL 

to form and develop the Legal Affairs 

Department as the Company’s General 

Counsel. 

Michael Horney 

Commercial Manager 

Graduated in Business Administration from Universidad 

del Pacífico with an MBA from ESAN (Graduate School of 

Business Administration). He has vast experience in the 

agro-industrial sector, focused on the commercialization of 

agricultural products in developed markets. He was Export 

Manager in Procesos Agroindustriales S.A, General Manager 

of Agro Exportadora Del Colca S.A.C, General Manager of 

Procesos AQR S.A.C. and General Manager of Gourmet 

Trading Peru S.R.L. 

Edwin Alvarado 

Administration Manager 

An Industrial Engineer graduated from 

Universidad Nacional de Trujillo and a MBA 

from ESAN with a mention in Finance. He has 

experience in accounts, costing, budgeting, 

evaluation of financing alternatives, economic 

analysis, credit management and foreign 

trade. He has worked for Southern Peru and 

for Orion Bank. He joined CAMPOSOL in 2001 

where he has worked as head of areas such as 

Accounting, Systems, Finance, Budgeting and 

Management Control. 

Miguel Caldas 

Human Resources Manager 

Holding an MBA with a major in Strategic Planning, Mr. Caldas is a 

lawyer with postgraduate studies in Taxation, Human Resources and 

Negotiations. He is a consultant and business advisor with more than 

26 years’ experience in the field. He has worked as Human Resources 

Manager for Lima and Central Regions of Backus and Johnson S.A. 

– Unión de Cervecerías Peruanas. He has been President of the 

Labor Commission of the Peruvian Association of Human Resources 

(APERHU) and a member of the Consultative Commission of the 

Ministry of Labor and Promotion of Employment. 

23

24 


Overview 

Product & 

categories 





Corporate 

Governance 



2.8 Organizational Chart 

Angel Suarez 

Internal Auditor 

BOARD OF DIRECTORS 

Francesca Carnesella 

Corporate Affairs Manager 

Public Accountant graduated from 

the Pontificia Universidad Católica 

del Peru (PUCP) with a specialization 

in Financial Auditing. He has ample 

experience in financial and internal 

auditing, accounting and controllership 

in leading transnational companies in 

the mass consumption industry and in 

financial, tax and business consulting; 

orienting the improvement in company 

management on the basis of business 

process management focuses, 

risk management assurance and 

management information systems. He 

has worked for PricewaterhouseCoopers, 

Embotelladora Latinoamericana S.A.- 

Coca Cola and Deloitte & Touche. 

HUMAN RESOURCES MANAGER 

Miguel Caldas 

ADMINISTRATION MANAGER 

Edwin Alvarado 

CHIEF EXECUTIVE OFFICER 

Fabio Matarazzo Di Licosa 

DEPUTY CHIEF EXECUTIVE OFFICER 

Piero Dyer Coriat 

CHIEF AUDIT EXECUTIVE 

Angel Suárez 

CORPORATE AFFAIRS MANAGER 

Francesca Carnesella 

LEGAL COUNSEL 

Guillermo Lohmann 

Economist from Universidad del Pacífico with an MBA from Universidad de Piura 

and post-graduate studies in Communications at the Pontificia Universidad 

Católica del Perú. She has broad experience in the areas of corporate image, 

communications, public administration and institutional relations. She has served 

as advisor to the Minister of Economy and Finance, the Minister of Energy and 

Mines, the President of the Commission for the Promotion of Private Investment 

and was appointed Press & Communications Director of the Ministry of Foreign 

Affairs. She was the Manager of Image and Communications of BBVA Banco 

Continental and Manager of the Fundacion BBVA, as well as Corporate Image and 

Public Relations Director at TIM Peru (now Claro). 

CHIEF COMMERCIAL OFFICER 

Michael Horney 

CORPORATE IT MANAGER 

Ramón Camminati 

CHIEF OPERATIONS OFFICER 

Gustavo Guerrero 

CHIEF FINANCIAL OFFICER 

Jorge Ramirez 

25

26 


Overview 

Product & 

categories 





Corporate 

Governance 



2.9 Legal Structure 

Grainens Ltd Blacklocust Ltd Sibourne Holding 

Inc. 

Camposol Europe 

S.L. (Spain) 

Campoinca S.A. 

Camposol Fresh 

B.V. (Netherlands) 

Camposol Holding PLC 

Marinazul S.A. 

Camposol S.A. 

Others 

40% 

Empacadora de Frutos 

Tropicales SAC (EMPAFRUT) 

Madoca Corp. 

(Panama) 

Marinasol S.A. 

LBTED 

INTERMEDIANTES 

OPERATING 

Others include: Crofton Finance S.A.C (in the process of absortion), Muelles y Servicios Paita S.R.L, Sociedad Agricola Las Dunas S.R.L, Balfass S., Prodex E.I.R.L, Preco Precio 

Economico (50%). All subsidiaries are 100% owned unless stated otherwise. 

2.10 Brief History 

CAMPOSOL is an agro-industrial 

company involved in the planting, 

harvesting, processing and exporting 

of asparagus, avocado, piquillo pepper, 

mango, grapes and citrus (tangerines). 

These products are sold fresh, frozen or 

preserved in jars or cans. 

In 1997, operations began with the 

purchase of the first strip of land. During 

the same year, further land was acquired 

through the Special Chavimochic 

Project by means of public auction. 

The Chavimochic irrigation project 

provided water to more than 47,000 

has. of desert on the northern coast of 

Peru, with a total investment of more 

than USD1,000 MM. At present, as a 

result of this project, more than 15,000 

has. have been developed in its zone of 

affluence by several companies. 

The acquisition and development of 

land in Piura began in 1998 with a 

first stage of 2,800 has. CAMPOSOL 

established its central headquarters 

in the Chavimochic area where its first 

agricultural operations began. 

At the end of 1999, the Company began 

its agro-industrial exports. These are 

processed until today in the Chao 

industrial complex located in the Viru 

province, La Libertad department. 

The vision and commitment of everyone 

involved resulted in CAMPOSOL quickly 

becoming a leading Peruvian agroindustrial 

company, annually occupying 

first place in non-traditional agroexports 

and generating, in high seasons, 

more than 8,000 direct jobs. 

Today, the Company has more than 

25,000 has. in the areas of Chao, Viru, 

Piura and Tumbes (all of them located 

in northern Peru). The CAMPOSOL 

agro-industrial complex consists of 

an industrial plant with six process 

lines, three of which are focused on 

processing preserved or glass jarred 

products (preserved), one on frozen 

products, and the rest are directed at 

the production of fresh products. 

Today, the 

Company 

has more 

than 25,000 

hectares in 

the areas of 

Chao, Viru, 

Piura and 

Tumbes 

27

3Products & 

Categories

30 


Overview 

Product Management´s & Management’s 

categories Report Report 



Corporate 

Governance 



CAMPOSOL integrally manages the agro-industrial supply chain: its own fields, packing and distribution. Its fields are 

strategically located in the irrigation areas of the Chavimochic and Chira-Piura Projects, with the following products: asparagus 

(white and green), avocado, piquillo and sweet peppers, mangoes, grapes and citrus (tangerines). 

The Company also owns a shrimp production facility in Tumbes, which is all destined for export. 

Products Categories Main destinations 

White asparagus Fresh, preserved and frozen Germany, The Netherlands, USA 

Spain, Germany, France 

Japan, Germany 

Green asparagus Fresh, preserved and frozen USA, Europe 

USA 

USA, Europe 

Avocadoes Fresh and frozen France, Spain, UK 

USA, Spain 

Mangoes Fresh, preserved and frozen USA, The Netherlands, UK 

Germany 

USA, Europe, Japan 

Grapes Fresh Russia, Europe, Asia 

Peppers Preserved Spain, Germany 

Shrimp Frozen USA 

USA 

3.1 Fresh 

• Asparagus: CAMPOSOL was the third 

largest exporter of Peru with the highest 

volume of fresh asparagus (white and 

green), totaling 6,908 MT exported and 

total sales of USD 18,8 million. 77% 

of the volume was white while 28% 

was green, consolidating our company 

as the main fresh white asparagus 

exporter in Peru. 

• Avocado: Peru exported 47,000 MT of 

avocados in 2009, and CAMPOSOL 

represented 18% of that volume, 

occupying second place in the Peruvian 

export ranking, led by another company 

which accounted for 19%. The total 

revenues of this product reached USD 

12.2 MM. 

• Mango: Peru exported around 52,000 

MT of mango. CAMPOSOL occupied 

the second place in the ranking of 

Peruvian exporters with 7% of the 

volume. The total revenues from this 

product reached USD 5.6 MM. 

• Grapes: Peru exported 44,000 MT 

of fresh grapes, continuing a steady 

growth. 2009 was the first year in 

the market for CAMPOSOL with this 

product. We exported Red Globe 

variety grapes to Asia, Europe, USA 

and Central America. CAMPOSOL 

occupied the 12th place in the ranking 

of Peruvian grape exporters. The total 

revenues of this product reached USD 

1.9 MM. 

3.2 Preserved 

This product category acquainted for 55% 

of the revenues of the company in 2009, 

being preserved asparagus the main 

product, followed by peppers, mangoes 

and artichokes. 

• Asparagus: Peru exported 30,000 MT 

in 2009, and CAMPOSOL was once 

again the largest exporter of preserved 

asparagus (white and green) from Peru, 

with 12,000 MT. 

• Peppers: CAMPOSOL was the largest 

exporter of preserved peppers, with 

9,000 MT exported, which represented 

43% of Peruvian exports. 

3.3 Frozen 

This product category sold Individual 

Quick Freezing (IQF) products of green and 

white asparagus, mangoes, avocadoes, 

artichokes, and piquillo pepper during the 

whole of 2009. There were 4 thousand 

net MTs sold for a total amount of USD 

9.8 MM, which constituted 8% of total 

CAMPOSOL revenues. 

• Avocado: IQF avocado, sold in 

halves, chunks and dices, represented 

42% of the frozen product sales, 

accounting for USD 3.9 MM. Volume 

wise, this represents 63% of the total 

exports of Peru of this product. 

• Mangoes: IQF mangoes represented 

28% of the product category, and the 

volume exported totaled 1,900 MT for 

a total of USD 2.6 MM. 

Product Categories Main Characteristics Distribution Chain 

Fresh 

Preserved 

Frozen 

• Shrimps: For 2009, shrimp revenues 

amounted to USD 8.3 MM. 

3.4 Other sales 

In addition, CAMPOSOL had other 

sales of USD 5 MM, which was mainly 

organic material and sort outs, used 

in other agricultural processes or as 

cattle feed. 

Dynamic market, where post-harvest 

and logistics have an important role, and 

demand windows are opportunities were to 

focus supply. 

Mature and stable market, where long term 

programs predominate and volume is a key 

aspect. 

Growing and dynamic specialized market 

with technological barriers were programs 

predominate. 

Wholesale markets, food service, fresh-cut 

companies & retailers. 

Retailers, Foodservice, Cash & Carry, food 

distributors. 

Food Processors, Food Service, retailers. 

31

4Management´s Report

34 


Overview 

Product & 

categories 





Corporate 

Governance 



Asparagus, 

avocado, 

piquillo 

and sweet 

peppers, 

mangoes, 

grapes, and 

citrus fruits 

4.1 Main Activities 

CAMPOSOL is an agro-industrial company 

that integrally manages its supply chain: 

its own fields, processing and distribution. 

CAMPOSOL’s portfolio includes the 

following products: asparagus, avocado, 

piquillo and sweet peppers, mangoes, 

grapes, and citrus (tangerines) which are 

packed fresh, frozen or preserved, and 

exported to the world. 

The company is located in the Chao, 

Viru, Piura and Tumbes regions in Peru, 

and owns all the fields where its products 

are planted and harvested, having total 

control of the growing, harvesting and 

packing phases of its final products. 

4.2 Market Situation 

In general, CAMPOSOL’s main markets 

(Europe and North America) began the 

year with a weak interest in consumption 

of imported products and remained 

this way throughout the year. However, 

on evaluating the performance of the 

different products, one can see that 

each one behaved differently. 

During 2009 high levels of inventories of 

preserved asparagus in the distribution 

chains as well as lack of purchases 

from buyers reflected a low output 

of Chinese producers, our main 

competitors, who entered the market 

with 2008 stocks and limited volumes of 

production at low prices. The financial 

crisis strongly affected Spain, Peruvian 

preserved asparagus’s main market, 

and lack of liquidity in companies 

generated reductions in lines of credit, 

and as a result, limited the trade. The 

performance of piquillo peppers was 

not affected due to the non-existence of 

inventories in the chain. 

In relation to frozen products, the market 

was more dynamic and CAMPOSOL 

managed to strongly position itself as 

a supplier of diverse presentations of 

mango and avocado, entering new 

countries with new presentations. 

The fresh products market – a market 

much more price sensitive to supplied 

volume – behaved differently depending 

on the product. Mango was in an “off 

year” from Peru in the 2008-2009 

periods; therefore a lack of supply 

resulted in high prices in the early part of 

the year. The season 2009-2010 started 

in November, with higher volumes from 

Peru and low prices. It was a difficult 

one with an “on” year for Peru and large 

volumes arriving in Europe. 

Avocado prices diminished during the 

second quarter of the year due to high 

volumes from Peru and South Africa 

entering a recessed European market. 

The season ended in the third quarter, 

volumes diminished and prices therefore 

recovered. 

Regarding fresh white asparagus, the 

third quarter was one reflected with 

lower volumes and price recoveries. 

Nevertheless, the last quarter brought 

a more dynamic demand, with retailers 

willing to promote the product. 

4.3 Company Strategy 

In line with the Company’s vision of 

becoming world leaders and in order 

to ensure profitability and long term 

sustainability, CAMPOSOL´s strategy is 

supported by four strategic drivers: 

• Increase participation of fresh products, 

especially in white asparagus 

• Diversify client, product and geographic 

risk 

• Focus on efficiency and technology 

• Strengthen its integral platform for 

future growth. 

4.4 Summary of the Year 

As mentioned before, 2009 was a 

transition year for CAMPOSOL, in which 

its strategy was oriented to hard work 

on gaining major efficiencies, reducing 

overall risk, increasing internal control 

and improving management information 

systems in order to better support 

additional growth in the years to come. 

In 2009, CAMPOSOL’s focus on its main 

strategic drivers allowed the company 

to successfully close the year and to 

enter 2010 with a more competitive 

structure, a stronger growth platform, a 

more professional and motivated team, 

as well as a stronger balance sheet. 

Increased participation of fresh 

packed white asparagus: 

• 32% of total white asparagus production 

was sold as fresh product. 

The company reached a volume of 

5.3 MT, which represents a 43% increase 

over 2008. 

• This was a strategic move as the 

preserved-product market was 

the most affected in both volume 

and prices due to the high level of 

stocks present during the entire 

distribution chain at the end of 2008 

and the beginning of 2009. 

• The Company also believes that the 

market for preserved products is 

mature while the fresh one will experience 

a more rapid growth due 

to global trends to consume more 

fresh and healthy products. 

• Additionally, we expect less competition 

as China does not produce 

fresh white asparagus during our 

production windows. 

Diversify client / product and 

geographic risk: 

• Reduced dependency on largest 

client which in 2007 accounted for 

25% of total sales while in 2009 

for 11%. 

• The Company started operations 

of two new subsidiaries in Europe, 

CAMPOSOL Fresh in the Netherlands 

which sold USD 1.8 MM and 

CAMPOSOL Europe, with sales of 

USD 7.1 MM that allowed us to be 

closer to the market, improve our 

service level and capture new clients. 

• The first harvest of Red Globe Table 

Grapes started on November 2009. 

This product is mainly destined to 

the Asian market. 

• Reduced collection risk, as almost 

all sales are backed up by Letters 

of Credits (L/C’s), credit insurance 

or cash in advance. 

Operational efficiencies: 

• Working capital optimization: the 

company reduced almost USD 26.0 

MM in working capital, which was 

42% of total sales in 2008 to 26% 

in 2009. 

• In Asparagus, field maintenance 

costs by hectare were reduced by 

39%, yields increased by 29% and 

total output went from 29.8 MT 

to 34.8 MT in 2009 with the same 

planted area. As a result, unit cost 

dropped by 41%. 

• Reduction of fixed costs of over 

USD 2.5 MM annualized. Even 

though restructuring is always a 

hard decision, the company improves 

its productivity and assures 

sustainability in the medium and 

long term. 

Strengthening its platform for future 

growth: 

• 1,071 new has. of Avocado were 

planted during the year reaching a 

total of 2,278 has. 

• By the year 2014, with all the has. 

at a mature stage, the Company 

expects to produce 60,000 MT of 

avocado per year. 

In addition, the company had important 

positive results in more intangible 

aspects, mainly focus on its people and 

its reputation. Among them, we would 

like to point out the following: 

• Established programs of continuous 

improvement in field and plant 

(19 ongoing projects). 

• Implemented SAP in HR (payroll) 

and started project of Fields. 

• Implemented a program for Managerial 

Capabilities among second 

and third lines. 

• Reestablished relationships with 

media, NGOs and Opinion Leaders. 

• Active membership of the Global 

Compact. 

• Performed the first census 

among employees: Base line set 

for developing Human Resources 

and Social Responsibility indicators. 

4.5 Operations 

CAMPOSOL competitive advantages 

in operations consist in its complete 

and integrated control in the whole 

production chain. 

35

36 


Overview 

Product & 

categories 





Corporate 

Governance 



CAMPOSOL is one of the few Peruvian 

companies with a high percentage 

of production obtained from its own 

harvest materials, which currently 

accounts for more than 80% of total 

sales. Its operations have undergone 

a process of change since its creation 

in 1997, and are now headed by the 

Operations Management. The majority 

of its activities have been concentrated 

in industrial processing and in 

agricultural production; tasks that were 

previously separated. 

In 2009, operations were located in 

the geographical centers of Chao/Viru 

with 5,310 seeded has. and Piura and 

Tumbes with more than 1,000 seeded 

has. In Viru, white and green asparagus 

are cultivated as well as avocado. There 

is also an expansion of 100 has. of citrus 

(tangerines) planted in this area. In Piura, 

the company produces mango and 

pepper, and has 100 has. of red table 

grapes, planted last year, which were 

exported to Europe and the Far East. 

During 2009, CAMPOSOL managed 

to increase efficiencies in asparagus 

cultivation, restructuring the operations 

area and eliminating levels of 

unnecessary controls. 

Furthermore the Company managed to 

plant more the 1,000 has of avocado 

aligned to the free trade agreement with 

USA for Hass Avocado. 

Throughout 2009, the operation consisted 

of crop management, harvesting and 

processing of its three major categories: 

fresh, preserved and frozen. We were 

working in cost reduction, increased 

yield and increased efficiency of process 

in field and plant. 

4.6 Working Environment 

CAMPOSOL offers equal opportunities 

and working conditions to all its 

employees, irrespective of their race, 

color, sex, political affiliation religion or 

discriminatory conduct. 

One of the key factors that reinforces 

the company’s leadership is the 

constant attention paid to the training 

of its employees. During 2008, we 

achieved over 7,000 hours training of 

our employees which were aimed at 

strengthening technical knowledge, 

capacity building and aspects of 

human development as well as support 

for the various certification programs 

performed by the company such as 

BASC, GLOBAL GAP, HACCP, the 

Global Compact, and TESCO. In 2009 

training efforts were also directed at 

reinforcing personal development and 

technical knowledge in addition to 

supporting the certification programs 

mentioned above. The total number 

of training hours achieved was 32,897 

which are approximately five times 

more than the training executed 

during 2008. 

By means of the Human Resources 

Social Welfare area, CAMPOSOL also 

offers its personnel the services of 

health campaigns in ophthalmology, 

dentistry, gynecology and others 

addressed to the employees and their 

families; there are also programs of 

family orientation, medical insurance, 

allowances in case of death and loans 

for studies, housing or emergencies; 

the company has useful vacation 

schemes for the children of all our 

workers. 

4.7 Research 

& Development 

Despite the international financial 

crisis, CAMPOSOL invested in 

Research & Development (R&D) during 

2009, as the Company believes that 

innovation is a key aspect to boosting 

competitiveness and growth in the 

mid and long term. Through market 

research and analysis of potential 

new products that could benefit us 

from the Peruvian climatic advantages 

and the development of field trials to 

evaluate the technical, economic and 

commercial viability of new crops, 

we seek to diversify our portfolio 

of products and clients. R&D also 

provided support to the Agricultural 

Production Area for the evaluation of 

variety trials in our main current crops, 

asparagus and avocados, in an effort 

to improve the productivity and/or 

quality. Also, during 2009 CAMPOSOL 

installed field trials in one annual and 

three perennial fruit crops and have 

developed the work plan for 2010 

that includes one annual and four 

perennial new crops. Marinazul has 

also developed a high tech laboratory 

which allows substantial yield 

increases on its shrimp production. 

4.8 Social Responsibility 

In CAMPOSOL we manage Social 

Responsibility (SR) as a way of doing 

business, which aims to assure our 

business sustainability in the longterm. 

We strongly believe that in 

order to ensure our sustainability 

it is indispensable to ensure our 

compliance with ethical principles 

and respect for the people and the 

environment, acting in accordance 

with the social responsibility guidelines 

of our organization and the United 

Nations Global Compact principles of 

which we are members since 2008. 

For this reason, the Company 

contemplates the triple bottom line 

in all decisions - economic growth, 

social development and environmental 

care - making efforts to embed 

and implement social responsibility 

principles and values in all processes, 

operations and company areas. 

Moreover, CAMPOSOL makes efforts 

to take into account the feedback 

of its stakeholders and regularly 

conducts surveys of the attitudes and 

perceptions of its main stakeholders 

in order to understand their opinions 

and points of view, with relation to 

our performance, and adopt the 

necessary measures to correct 

any mistakes in the Company’s 

management. 

In this sense, CAMPOSOL is the first 

Peruvian agro-industrial enterprise 

to present a Sustainability Report 

for 2009, which is available at our 

website, www.camposol.com.pe. 

This report, aligned to international 

best practices and Global Reporting 

Initiative (GRI) Indicators, reflects 

the base line and development of 

the main indicators that show the 

Company’s environmental and social 

performance, as well as the programs 

and activities we carry out in the field 

of social responsibility. 

Social Responsibility guidelines 

At CAMPOSOL we are constantly 

concerned about: 

• The wellbeing of the community 

and our employees: Contributing 

to develop their quality of life, 

promoting elements that provide 

tranquility and human satisfaction. 

• Care for the environment: 

Reducing the environmental impact 

created by the various Company 

activities by working under the 

highest environmental efficiency 

and sustainable development 

standards, so as to protect 

biodiversity and culture. 

• Quality assurance and product 

traceability: Constantly satisfying 

the needs of our customers by 

knowing the location and path of 

our products along the productive 

chain at any given time. 

• Development of products and 

markets: Re-thinking the market, 

constantly improving the quality 

of products so as to satisfy the 

changing needs of consumers 

and at the same time participate 

in markets where we have not 

competed previously. 

37

38 


Overview 

Product & 

categories 





Corporate 

Governance 



• Creation and protection of shared 

value: Performing activities that 

create competitiveness in the longterm, 

reporting benefits to society 

and minimizing negative impacts 

to the environment; a win-win 

relationship. 

• Reputation management: Building 

positive feelings and attitudes 

of the stakeholders towards the 

Company, through the creation and 

protection of shared value. 

To ensure compliance with these 

guidelines, CAMPOSOL has set up an 

IMS Committee (Integrated Management 

System) represented by members of 

the Company and employees. This 

committee contemplates security, 

environmental care, social responsibility 

and production and quality issues, 

among others. 

4.9 Financial Results 

In 2009 CAMPOSOL’s total sales 

accounted for USD 123 MM, a reduction 

of USD 18 MM if compared with the 

USD 141 MM in 2008. The main drivers 

for such reduction were lower avocado 

volumes, 48% due to natural alternate 

bearing of the trees and 14% lower 

unitary prices in asparagus and lower 

sales of artichokes as the company took 

the decision to remove this product from 

the market. 

Total COGS was USD 98.6 MM, 

representing 80% of total sales, showing 

a small increase from 78% in 2008. 

Such increase responded to a lower 

selling price in asparagus and a different 

product mix, however, due to operational 

efficiencies, average per unit costs 

decreased throughout the portfolio. 

In addition, government increased 

drawback rate from 5% to 8% in 2009 

as a counter crisis measure for exporters. 

In spite of all these efforts, the Company 

was not able to totally compensate the 

drop in prices and thus Gross Margin 

was USD 24.0 MM, 20% of sales, USD 

6.0 MM less than in 2008 (22% of sales). 

As a result of a focus on doing more 

with less, the company managed to 

reduce its administrative expenses 

(without provision for workers profit 

sharing) from USD 13.0 MM in 2008 

to USD 12.0 MM in 2009. Sales 

expenses also went down USD 2.0 

1 Drawback: Import tax duty refund calculated as a percentage of FOB value 

MM, from USD 16.0 MM in 2008 to 

USD 14.0 MM in 2009. 

Total EBITDA b.f.v.a. (before fair value 

adjustment) for the year was USD 8.8 

MM, 7.2% of total sales, USD 1.1 MM less 

than the USD 9.9 MM in 2008 or 7% of 

sales. Considering the effects on avocado 

and asparagus previously explained, the 

Company considers that the EBITDA 

b.f.v.a. attained for the year is an important 

success. In addition CAMPOSOL had a 

positive record of improving EBITDA for 

four consecutive quarters. 

Financial expenses for the year were USD 11.0 MM, USD 0.4 MM less than in 2008 

due to the reduction of bank debt achieved during 2009 as well as a reduction in 

interest rate. 

From the balance sheet side, the company focused on liquidity, especially in working 

capital optimization and debt reduction. As a result company was able to reduce its 

operational working capital from USD 58.7 MM in December 2008 to USD 32.4 MM 

in 2009. Accounts receivable went from USD 26.0 to USD 21.0 MM or from 66 to 60 

days of sales. Inventories which showed the main reduction went from USD 58 to USD 

32.0 MM, or from 189 to 117 days due to important improvement in planning which 

allowed us to reduce lead times and safety stocks in supplies, packaging and label 

and selling efforts in preserved products. Finally, trade accounts payable were USD 

20.0 MM compared to the previous USD 25.0 MM, as a result of improved commercial 

terms with main suppliers. 

Operational Working Capital Evolution (USD MM) 

Trade Receivable / Inventories / Trade Payables Evolution 

(USD MM) 

In November 2009, the Company sold its office building in San Isidro, Lima, where 

its Headquarters were located for USD 4.0 MM generating a gain of USD 0.9 MM, 

which also had a positive impact on liquidity. Headquarters were moved to a 

rented space in an office building in La Victoria, Lima. In addition, Company also 

sold a pier in Paita from Marinasol (fishing company owned by CAMPOSOL for 

direct human consumption) at USD 1.0 MM. 

As a result of its liquidity focus the company was able to reduce its bank leverage 

in USD by 16.6 MM during the year. Bank debt dropped from USD 82.8 MM to 

USD 66.2 MM. 

39

40 


Overview 

Product & 

categories 





Corporate 

Governance 



Total Bank Debt Evolution (USD MM) 

4.11 Shares and 

shareholders 

Investor Shares Percentage 

1 DYER – CORIAT HOLDING 8 571 000 28,73% 

Largest 20 Shareholders as of 

18 February, 2010. 

2 DEUTSCHE BANK AG LON PRIME BROKERAGE FULL 4 350 018 14,58% 

3 ANDEAN FISCHING L.L. 3 380 100 11,33% 

4 EUROCLEAR BANK S.A./ 25% CLIENTS 2 196 000 7,36% 

5 FONDO DE INVERSIóN A Y FORESTAL 1 908 750 6,40% 

6 CLEARSTREAM BANKING CID DEPT, FRANKFURT 1 829 400 6,13% 

7 SOUTH WINDS AS 1 753 000 5,88% 

8 PERU LAND FARMING LL 1 195 950 4,01% 

9 ORKLA ASA 750 000 2,51% 

10 BROWN BROTHERS HARRI S/A GENESIS EME OPP 404 000 1,35% 

The Company concluded the exchange rate SWAP agreement it maintained with Credit 

Suisse at no cost for the Company on October 2009. Afterwards, CAMPOSOL signed 

the third addendum with Credit Suisse in order to ease the financial covenants for the 

following year, and to reduce the impact of repayment for the years 2010 and 2011. 

11 DEUTSCHE BANK AG LON 393 482 1,32% 

12 STOREBRAND LIVSFORSI P980, AKSJEFONDET 322 000 1,08% 

13 CREDIT SUISSE SECURI SPECIAL CUSTODY A/C 309 000 1,04% 

During the 

year company 

invested three 

million dollars 

in fixed assets 

During the year the Company invested USD 3.0 MM dollars in fixed assets, especially 

in irrigation equipment, and USD 3.6 MM for 1,071 new has. of avocado. With this 

investment, CAMPOSOL reinforces its position as the largest avocado plantation in the 

world and the main Peruvian exporter of this fruit the consumption of which is growing 

at considerable levels in the most important markets. 

4.10 Allocation of Net Income 

The Board of Directors has proposed the net income of CAMPOSOL to be attributed 

to Retained earnings. The proposal is a reflection of the wish to strengthen the equity 

position of the Company. 

14 JPMORGAN CHASE BANK NORDEA RE:NON-TREATY 234 500 0,79% 

15 VPF NORDEA AVKASTNIN C/O JPMORGAN EUROPE 193 900 0,65% 

16 DNB NOR SMB VPF 165 000 0,55% 

17 SABARO INVESTMENTS L JOHN CASELY 157 000 0,53% 

18 MP PENSJON 137 000 0,46% 

19 VPF NORDEA NORGE VER C/O JPMORGAN EUROPE 91 300 0,31% 

20 VITAL FORSIKRING ASA OMLØPSMIDLER 77 043 0,26% 

TOTAL TOP 20 28,418,443 95,27% 

OTHERS 1,415,377 4,73% 

TOTAL 29,833,820 100.00% 

41

42 


Overview 

Product & 

categories 





Corporate 

Governance 



4.12 Branches & 

New Offices 

CAMPOSOL opened two offices in 

Europe during 2009. In February, 

CAMPOSOL EUROPE was opened in 

La Rioja, Spain, and in May CAMPOSOL 

FRESH was opened in Rotterdam, The 

Netherlands. Both offices are located 

in our main markets for preserved and 

fresh products, respectively. Their 

main purpose is to acquire knowledge 

about the markets in which we 

operate, improve our service through 

a more constant presence and identify 

new opportunities. 

4.13 Contingency Plan, 

Risk Management 

and Uncertainties 

CAMPOSOL annually identifies and 

evaluates risks that could affect 

the achievement of its objectives, 

and establishes permanent specific 

control and monitoring activities to 

mitigate these risks accordingly. The 

internal control activities are detailed 

in the Company’s internal rules and 

procedures, and the vast majority 

is done through SAP. The risk and 

control matrices will be completed 

by the end of the year. In order to 

improve organizational performance 

and governance, the Company will 

also complete the implementation 

of activities which consolidate and 

encompass all internal control, 

enterprise risk management and 

fraud detection policy based on the 

COSO (Committee of Sponsoring 

Organization) framework model. 

CAMPOSOL also applies integrated 

business principles, which reflect its 

commitment to health, safety and 

environment. The preservation of the 

environment is one of CAMPOSOL’s 

most important concerns. The production 

process involves several factors 

and conditions that interact with the 

environment, such as the use of water, 

fertilizers, generation of waste through 

emissions and particulate matter in the 

water, and solid waste management. 

Among some of the Company’s 

practices and to ensure the 

preservation of the environment, 

CAMPOSOL is currently implementing 

environmental education, internal 

campaigns, specialized treatment 

systems, quality management 

systems, certifications and community 

relations programs. 

4.14 Financial Calendar 

CAMPOSOL Holding PLC Financial Calendar 2009 

25.02.2009 Non-audited Results 2008 / Q4 2008 

17.04.2009 Audited Financial Results 2008 

28.05.2009 Q1 2009 



24.02.2010 Q4 2009 

CAMPOSOL Holding PLC Financial Calendar 2010 

25.02.2010 Non-audited Results 2009 / Q4 2009 

1.1.2010 Audited Financial Results 2009 

27.05.2010 Q1 2010 

06.08.2010 Q2 2010 

04.11.2010 Q3 2010 

24.02.2011 Q4 2010 

4.15 Future Prospects 

The company is currently analyzing new opportunities to consolidate its market 

leaderships through additional planting of current crops, planting of new crops and 

strategic alliances. They will be informed opportunely as they materialize. 

4.16 Auditors 

The auditors, PricewaterhouseCoopers Limited (PwC) have expressed their willingness 

to continue in office. 

43

5Key Investment 

Consideration

46 


Overview 

Product & 

categories 





Corporate 

Governance 



A combination of strong fundamentals, solid strategy, management capacity and corporate governance place Camposol in a unique position in the competitive landscape. 

Strategic Location: The Peruvian Climatic Advantage. 

• Due to its location in the Peruvian coastal desert plains, the crops are exposed to reduced variations of temperatures throughout the year which supports higher yields. 

• Such conditions allow us to have year round supply of asparagus and significantly better yields in the rest of the crops than other competitor countries. 

Vertical Integration 

CAMPOSOL is present in the entire value chain, and has the flexibility to commercialize its products fresh, preserved or frozen. 

Diversified Product Portfolio 

CAMPOSOL produces five of the most important non traditional export produce. 

Global reach with World Class Customers: 

• Products are sold by the leading retailers in Europe and USA. 

• Low client concentration risk: Company has been gradually reducing its exposure to one client. In 2007 the largest client accounted for 25% of total sales while in 2009 only 

for 11%. 

Future Strong Growth without additional planting investments: 

• Only 55% of Asparagus’s and 34% of Avocado’s planted area are fully matured and thus generating the optimum yields. 

• They will all reach maturity in a 1 to 4 years term. 

• The US, which is the largest market for avocados, was opened for Peruvian products in January 2010. 

• Strong competitive position versus local peers. 

47

Fredy Asmat Cedeño 

Head of SAP Project for Fieldwork 

Corporate Systems Management. 

“I was born in Moche and have worked for six and 

a half years in Camposol. Five years ago I married 

and we have a 4 years old daughter called Nicol. 

I finished my computer and systems studies graduating 

as a technician in the ABACO Institute and 

then confirmed my studies in the Private University 

of the North. Before joining Camposol I taught 

and worked in computer maintenance and when 

I arrived here the focus as analyst and developer 

allowed me to apply the knowledge I had learned. 

I had never seen systems development before but 

in CAMPOSOL I was able to apply it, it was a very 

good experience. 

I began in the area of projection analysis for the 

growing of asparagus and my first job was to develop 

a system to automate the process. With 

time we began to improve the subject of projections 

and were given other crops such as pepper, 

artichoke and mangos. 

After 4 years in projections, around 2007, the SAP 

implementation project in CAMPOSOL began. A 

team was designated for the plant and the fields. I 

continued in the projections, but in 2008 when we 

were ready to go live we encountered problems 

with the system which we had originally bought for 

the field and that was when I was asked to change 

to the Systems Area because I had already participated 

in the development of the system in the 

field. I transferred therefore to the Systems area. 

Subsequently, I was assigned the responsibility of 

taking the support to plant production. I was able 

to see not only the part of the Production Planning 

Module (PP) but also part of the Commercial 

modules (SD) for the subject of exports and also 

to participate in all the costing processes with 

module SB. 

All this occurred in two years and in October 2009 

I was assigned the responsibility of Head of the 

SAP Project for the fields and of a special module 

aimed at field management but in SAP all taken 

to the Project System module (PS) which was implemented 

and then launched in production on 

February 16. 

Camposol is a company full of opportunities. 

Those who conform easily may say the opposite; 

however, I have managed to enjoy those 

benefits, because as you deliver you will also 

receive. I feel that I have grown both personally 

and professionally within the company. I hope 

that Camposol continues to grow as this will give 

more opportunities for work to more people”.

6Corporate 

Governance

52 


Overview 

Product & 

categories 





Corporate 

Governance 



CAMPOSOL is committed to the 

practice of sound corporate governance, 

which strengthens the confidence in 

the Company and contributes, as a 

result, to the best possible value for 

the shareholders, the employees, and 

other stakeholders. The objective of 

corporate governance is to regulate the 

division of roles between shareholders, 

the Board, and management in a more 

comprehensive way compared to what 

is required by current legislation. 

CAMPOSOL HOLDING PLC 

(CAMPOSOL or the Company) is a public 

company with limited responsibility, 

established and incorporated under 

the laws of Cyprus. Furthermore, as 

CAMPOSOL is listed in the Oslo Stock 

Exchange (OSE) in Norway, it voluntarily 

complies with the Norwegian Corporate 

Governance Code as well as other 

relevant Laws and requirements of 

Norway. 

The Norwegian Corporate Governance 

Board (NCGB) has issued the Norwegian 

Code of Practice for Corporate 

Governance (the Code). Adherence 

to the Code is based on the “comply 

or explain” principle, which means 

that a company must comply with 

the recommendations of the Code or 

explain why it has chosen an alternative 

approach to specific recommendations. 

The OSE requires listed companies 

to publish an annual overview of their 

policy on corporate governance in 

accordance with the Code applicable at 

the time. 

The principles of CAMPOSOL’s 

corporate government are based on the 

code published on 21 October 2009. 

This can be found on the web page 

www.ncgb.no. 

The development and the improvements 

of the Company’s corporate government 

principles constitute a continuous and 

important process, to which both the 

Board of Directors (the Board) and 

management find themselves very 

committed. 

The management - and control - of 

CAMPOSOL are shared between the 

shareholders, represented by the 

General Meeting, the Board and the Chief 

Executive Officer (CEO) in accordance 

with the applicable company law and 

the company’s articles of association 

that are audited by an independent 

external auditor. 

1. Implementation and reports on 

corporate government 

Code: The board of directors must 

ensure that the company implements 

sound corporate governance. 

The board of directors must provide 

a report on the company’s corporate 

governance in the annual report. The 

report must cover every section of 

the Code of Practice. If the company 

does not fully comply with this Code of 

Practice, this must be explained in the 

report. 

The board of directors should define 

the company’s basic corporate values 

and formulate ethical guidelines in 

accordance with these values. 

Implementation 

The Board of CAMPOSOL is 

responsible for the implementation 

of solid corporate governance in the 

Company. As part of this, the Board 

and management hold an annual 

meeting to review the principles for 

corporate governance. 

CAMPOSOL provides information on 

corporate governance in the annual 

report and on the Company’s web 

page www.CAMPOSOL.com.pe. 

Corporate values and ethical 

guidelines 

Confidence in CAMPOSOL as 

a company is essential for the 

continuance of the competitiveness of 

the group. The transparency seen in 

relation to the systems and procedures 

for the management of the group 

strengthens the creation of value, 

builds internal and external confidence 

as well as promoting an ethical and 

sustainable attitude towards the 

business. 

CAMPOSOL has established the 

corporate values detailed in the 

Overview Section of this Annual 

Report. The Company also has 

ethical guidelines for all personnel, in 

accordance with these values. These 

are included in the Internal Working 

Rules (RIT) that present the key criteria 

to direct the conduct of all company 

personnel, the policies of human 

resources as well as the published 

“Code of Conduct”. 

CAMPOSOL CODE OF CONDUCT 

1. Safety The health and safety of our employees are priority concerns for CAMPOSOL, as well as preventing possible harm to the environment and 

interacting with the communities in our area of operations. 

2. Responsibility We respect occupational health and safety policies, conducting training in accident prevention and first aid, installing first aid kits, 

implementing contingency plans for earthquakes, flooding and fire. Toxic substances are stored in a responsible manner. 

3. Equality We promote a positive and constructive working atmosphere in which there is no discrimination due to race, sex, sexual orientation, disability, 

marital state, age, religion or political ideology. 

4. Integrity We consider that abuse of authority and intimidation are unacceptable forms of behavior. By intimidation we mean any action that makes an 

individual feel threatened, humiliated or oppressed. Neither physical nor psychological ill treatment will be tolerated. 

5. Horizontality CAMPOSOL recognizes in theory and practice the right of all employees to establish working organizations under their own criteria and to 

collectively negotiate their conditions of work. 

6. Transparency The contracting of personnel and the acquisition of goods and services by CAMPOSOL will be carried out by the Human Resources 

Department and the Logistics Department respectively. The payment process will be documented. 

7. Coherency CAMPOSOL does not participate in political activities and prohibits political campaigning in the production facilities; it does however 

respect the political options its employees may wish to exercise in their private activities. 

8. Sobriety The consumption, possession and distribution of alcoholic drinks, or illegal drugs are strictly forbidden in the company as is attendance at 

work under the influence of these. 

9. Honesty Bribery, unnecessary payments and other attitudes that could be considered as direct or indirect dishonesty are inadmissible. 

10. Legality All employees are informed of their rights, obligations and responsibilities. 

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CAMPOSOL, by means of its Chief 

Audit Executive has implemented a 

confidential complaints system where 

our employees and third parties will be 

able to formally and discretely present 

any complaints they may have, the 

company provides assurance that they 

will be attended. 

The Company has been admitted to 

the Global Compact of the United 

Nations Organization. This pact forces 

the Company to monitor progress 

in terms of human and labor rights, 

environment and corruption practices. 

CAMPOSOL also has a commitment 

to publish an annual report on social 

responsibility (Sustainability Report) 

and a Communication on the Progress 

Report to be sent to the United Nations 

Global Compact also once a year. 

2. The business 

Code: The Company’s business should 

be clearly defined in its articles of 

association. 

The company should have clear 

objectives and strategies for its business 

within the scope of the definition of its 

business in its articles of association. 

The annual report should include the 

business activities clause from the 

articles of association and describe 

the company’s objectives and principal 

strategies. 

Although Although the company 

has clear objectives and strategies 

regarding its business, there is no 

definition of such business in its articles 

of association. Current CAMPOSOL’s 

Board and Management deem it is 

important to have the business clearly 

defined in the Company’s articles of 

association; it is projected to include 

this in the General Meeting agenda for 

2010 a recommendation included in 

this article. 

Nevertheless, a complete description 

of the commercial activities of 

CAMPOSOL as well as its objectives 

and strategies can be found in this 

annual report. 

3. Equity and dividends 

Code: The Company should have an 

equity capital at a level appropriate to 

its objectives, strategy and risk profile. 

The board of directors should establish 

a clear and predictable dividend policy 

as the basis for the proposals on 

dividend payments that it makes to the 

general meeting. The dividend policy 

should be disclosed. 

Mandates granted to the board of 

directors to increase the company’s 

share capital should be restricted to 

defined purposes. If the general meeting 

is to consider mandates to the board 

of directors for the issue of shares 

for different purposes, each mandate 

should be considered separately by 

the meeting. Mandates granted to the 

board should be limited in time to no 

later than the date of the next annual 

general meeting. This should also apply 

to mandates granted to the board for the 

company to purchase its own shares. 

Equity 

The Board considers that CAMPOSOL’s 

equity is satisfactory. The amount of 

capital is sufficient and is constantly 

reviewed with regards to the company’s 

objectives, strategy and risk profile. 

Dividend policy 

The objective of CAMPOSOL is 

to provide the shareholders with a 

competitive return on capital invested, 

by means of a combination of distribution 

of dividends and an increase in the 

price of the shares. When evaluating 

the amount of dividends to be paid in 

future, the Board places its focus on 

security, foreseen ability and stable 

development, the company’s payment 

capacity, the solid and optimum capital 

requirements as well as the adequate 

financial resources for growth and 

investments in future, applicable legal or 

contractual restrictions and the wish to 

minimize the cost of capital. 

Increases in Share Capital and 

purchase of own shares 

Any mandates granted to the Board to 

increase the company’s share capital 

will be restricted to defined purposes. 

This also applies to mandates granted to 

the Board for the company to purchase 

its own shares. 

4. Equal treatment of 

shareholders and transactions 

with close associates 

Code: The Company should only have 

one class of shares. 

Any decision to waive the pre-emption 

rights of existing shareholders to 

subscribe for shares in the event of 

an increase in share capital must be 

justified. 

Any transactions the company carries 

out with its own shares should be 

conducted either through the stock 

exchange or at prevailing stock exchange 

prices if carried out in any other way. If 

there is limited liquidity in the company’s 

shares, the company should consider 

other ways to ensure equal treatment of 

all shareholders. 

In the event of any material transactions 

between the company and shareholders, 

members of the board of directors, 

executive personnel or close associates 

of any such parties, the board should 

arrange for a valuation to be obtained 

from an independent third party. This 

will not apply if the transaction requires 

the approval of the general meeting 

pursuant to the requirements of the 

Public Companies Act. Independent 

valuations should also be arranged 

in respect of transactions between 

companies in the same group where any 

of the companies involved have minority 

shareholders. 

The company should operate guidelines 

to ensure that members of the board of 

directors and executive personnel notify 

the board if they have any material direct 

or indirect interest in any transaction 

entered into by the company. 

Equal treatment 

The Articles of Association do not 

impose any restriction on the right to 

vote. All shares have equal rights and 

there is only one class of shares in 

CAMPOSOL. The Company has issued 

29,833,820 ordinary shares with a par 

value of EUR 0.01 each. Each Share 

carries one vote, and gives equal rights 

in the Company. 

In addition to this, the Company has 

issued 2,570,000 dormant shares each 

with a par value of EUR 0.01. The 

Dormant Shares are not listed on Oslo 

Axis, nor registered with the VPS. The 

Dormant Shares have no voting rights 

and no dividend rights, and they only 

were created due to requirements under 

Cypriot law to have seven registered 

shareholders in a public company. 

The Dormant Shares are not included 

for the purposes of calculating the 

mandatory bid requirements and the 

requirements relating to disclosure of 

large shareholdings. 

The Board of CAMPOSOL and executive 

management are committed to treating 

all shareholders equally and any 

transaction that the company carries 

out with its own shares is carried out by 

means of the Oslo Stock Exchange. 

Transactions with close 

associates 

In the case of any material transaction 

between the company and shareholders, 

members of the Board, members 

of executive management or close 

associates of such parties; the Board 

will arrange for a third party independent 

evaluation. 

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If the fee exceeds 5% of the total 

CAMPOSOL share capital, such 

transaction will be approved by the 

shareholders at a General Meeting. 

The directors and executive 

management will notify the Board if 

they have any direct or indirect material 

interest in any transaction in which 

CAMPOSOL is involved. 

5. Free Negotiability 

Code: The Company’s shares must, in 

principle, be freely negotiable. 

Therefore, no form of restriction on 

negotiability should be included in a 

company’s articles of association. 

The shares of CAMPOSOL are freely 

negotiable. The articles of association 

do not impose any restriction on 

the transfer of shares. Additionally, 

CAMPOSOL is listed on the Oslo Stock 

Exchange. 

6. General Shareholders’ Meeting 

(GSM) 

Code: The board of directors should 

take steps to ensure that as many 

shareholders as possible may exercise 

their rights by participating in general 

meetings of the company, and that 

general meetings are an effective 

forum for the views of shareholders 

and the board. 

Such steps should include: 

• making the notice calling the 

meeting and the support information 

on the resolutions to be considered 

at the general meeting, including the 

recommendations of the nomination 

committee, available on the 

company’s website no later than 21 

days prior to the date of the general 

meeting. 

• ensuring that the resolutions 

and supporting information 

distributed are sufficiently detailed 

and comprehensive to allow 

shareholders to form a view on all 

matters to be considered at the 

meeting 

• setting any deadline for shareholders 

to give notice of their intention to 

attend the meeting as close to the 

date of the meeting as possible 

• the board of directors and the 

person chairing the meeting making 

appropriate arrangements for the 

general meeting to vote separately 

on each candidate nominated for 

election to the company’s corporate 

bodies 

• ensuring that the members of the 

board of directors and the nomination 

committee and the auditor are 

present at the general meeting 

making arrangements to ensure an 

independent chairman for the general 

meeting 

• Shareholders who cannot attend the 

meeting in person should be given the 

opportunity to vote. 

The company should: 

• provide information on the procedure 

for representation at the meeting 

through a proxy 

• nominate a person who will be 

available to vote on behalf of 

shareholders as their proxy to the 

extent possible prepare a form for 

the appointment of a proxy, which 

allows separate voting instructions 

to be given for each matter to be 

considered by the meeting and for 

each of the candidates nominated for 

election. 

Shareholders exercise the supreme 

authority in CAMPOSOL by means 

of the General Meetings. The Board 

strives to ensure that the General 

Meetings constitute effective forums 

for communication between the 

shareholders and the Board. 

The Company 

has been 

admitted to 

the Global 

Compact of 

the United 

Nations 

Organization 

Preparation for the General 

Shareholders Meeting 

The CAMPOSOL General 

Shareholders’ Meeting is held every 

year before the end of the month 

of June. Although the date has not 

been published in the company’s 

financial calendar, the date will be 

communicated to all shareholders in 

due course. 

The notice announcing the GSM 

is distributed to shareholders and 

placed on the company web page at 

least 21 days before the GSM. This 

notice includes all the information 

needed for the shareholders to form 

their point of view on the items on 

the agenda. Shareholders that cannot 

attend the meeting can vote by proxy. 

The Company will normally nominate 

the Chairman of the Board to vote on 

behalf of shareholders as their proxy. 

It is also possible for the shareholders 

to name their own proxy. The proxy 

form allows the shareholder to give 

separate voting instructions for each 

item on the agenda, including voting 

separately for each candidate to be 

voted for in any election. 

The Chairman of the Board attends the 

GSM and the other members of the 

Board are encouraged to participate. 

Agenda and conduction of the GSM 

The Board decides the agenda of the 

GSM. The main points of the agenda are 

determined by the requirements of the 

Limited Responsibility Public Companies 

Act and the Articles of Association. 

Among other things the GSM will approve 

the annual accounts, the report from the 

Board and the distribution of dividends. It 

will also approve the resolutions required 

under the applicable laws. 

Each GSM names a Chairman for the 

meeting, in this way the presence of an independent 

president is ensured, according 

to the recommendations of the Code. 

Normally the Chairman is designated with 

anticipation and he is named in the notice 

calling the meeting. The minutes of the 

GSM are published on the CAMPOSOL 

web page (www.CAMPOSOL.com.pe) 

and on the Oslo Stock Exchange –OSE 

web page (www.newsweb.no). 

The Board may call for an extraordinary 

GSM when it considers it to be necessary 

or when it is a legal requirement. 

The CAMPOSOL Auditor and any shareholder 

or group of shareholders representing 

more than 5% of the issued and 

subscribed share capital of the Company 

may demand that the Board calls for an 

extraordinary GSM. 

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7. Nomination Committee 

Code: The Company should have a 

nomination committee, and the general 

meeting should elect the chairperson and 

members of the nomination committee 

and should determine the committee’s 

remuneration. 

The nomination committee should be 

laid down in the company’s articles of 

association. 

The members of the nomination 

committee should be selected to take 

into account the interests of shareholders 

in general. The majority of the committee 

should be independent of the board of 

directors and executive personnel. At 

least one member of the nomination 

committee should not be a member of 

the corporate assembly, committee of 

representatives or the board. No more 

than one member of the nomination 

committee should be a member of the 

board of directors, and any such member 

should not offer himself for re-election. 

The nomination committee should not 

include the company’s chief executive or 

any other executive personnel. 

The nomination committee’s duties are 

to propose candidates for election to 

the corporate assembly and the board of 

directors and to propose the fees to be 

paid to members of these bodies. 

The nomination committee should justify 

its recommendations. 

The company should provide information 

on the membership of the committee 

and any deadlines for submitting proposals 

to the committee. 

In accordance with section 100A of the 

Articles of Association of the company, 

CAMPOSOL has a nomination committee 

made up of three members. The 

committee is elected by the GSM which 

will also decide on their remuneration. 

Information on the committee members 

will be available for the public on the 

company’s web page. 

The committee will make its recommendations 

to the General Shareholder’s Meeting 

on the appointment and retirement of Directors, 

as well as their remuneration. 

8. Corporate Assembly and 

Board of Directors: Composition 

and independence 

Code: The composition of the corporate 

assembly should be determined with 

a view to ensuring that it represents a 

broad cross-section of the company’s 

shareholders. 

The composition of the board of 

directors should ensure that the board 

can attend to the common interests 

of all shareholders and meets the 

company’s need for expertise, capacity 

and diversity. Attention should be paid 

to ensuring that the board can function 

effectively as a collegiate body. 

The composition of the board of 

directors should ensure that it 

can operate independently of any 

special interests. The majority of the 

shareholder-elected members of the 

board should be independent of the 

company’s executive personnel and 

material business contacts. At least two 

of the members of the board elected by 

shareholders should be independent of 

the company’s main shareholder(s). 

The board of directors should not 

include executive personnel. If the board 

does include executive personnel, the 

company should provide an explanation 

for this and implement consequential 

adjustments to the organization of the 

work of the board, including the use of 

board committees to help ensure more 

independent preparation of matters for 

discussion by the board, cf. Section 9. 

The chairman of the board of directors 

should be elected by the general meeting 

so long as the Public Companies Act 

does not require that the chairman must 

be appointed either by the corporate 

assembly or by the board of directors 

as a consequence of an agreement that 

the company shall not have a corporate 

assembly. 

The term of office for members of the 

board of directors should not be longer 

than two years at a time. 

The annual report should provide 

information to illustrate the expertise of the 

members of the board of directors, and 

information on their record of attendance 

at board meetings. In addition, the annual 

report should identify which members are 

considered to be independent. 

Members of the board of directors 

should be encouraged to own shares in 

the company. 

The Board of Directors of CAMPOSOL 

will have at least two directors according 

to section 68 of the company’s Articles 

of Association. Currently the Board has 

seven members, one woman and six men. 

The composition of the Board satisfies 

the company’s needs in terms of experience, 

knowledge, capacity and diversity. 

The CAMPOSOL web page and the 

annual report provide information to illustrate 

the experience and capacity of 

the Board members and identify which 

members are considered independent. 

A majority of the members of the Board 

are independent of the Company’s management 

and main commercial partners. 

The Board does not include any 

representatives from the CAMPOSOL 

executive team. Also, five of the directors 

are independent of the Company’s 

main shareholders. 

CAMPOSOL does not have a corporate 

assembly or any employee representative 

on the Board. 

The term of office is two years and members 

of the Board are encouraged to 

own shares in the company. A summary 

of the shares owned by the members of 

the Board is included in the Company’s 


9. Work of the Board 


produce an annual plan for its work, with 

particular emphasis on objectives, strategy 

and implementation. 

The board of directors should issue instructions 

for its own work as well as for 

the executive management with particular 

emphasis on clear internal allocation 

of responsibilities and duties 

In order to ensure a more independent 

consideration of matters of a material 

character in which the chairman of 

the board is, or has been, personally 

involved, the board’s consideration of 

such matters should be chaired by some 

other member of the board. 

The Public Companies Act stipulates 

that large companies must have an 

audit committee. The entire board of 

directors should not act as the company’s 

audit committee. Smaller companies 

should give consideration to 

establishing an audit committee. In 

addition to the legal requirements on 

the composition of the audit committee 

etc., the majority of the members 

of the committee should be independent. 

The board of directors should also consider 

appointing a remuneration committee 

in order to help ensure thorough 

and independent preparation of matters 

relating to compensation paid to 

the executive personnel. Membership 

of such a committee should be restricted 

to members of the board who are 

independent of the company’s executive 

personnel. 

The board of directors should provide 

details in the annual report of any board 

committees appointed. 

The board of directors should evaluate 

its performance and expertise annually. 

The work of the Board 

The responsibilities of the Board include 

the strategic direction of CAMPOSOL, 

the effective monitoring of top management, 

the control and monitoring of 

the company’s financial situation and 

communications with shareholders and 

stakeholders. 

These obligations can be found in the 

applicable legislation, in the articles of 

association, in the authorizations and instructions 

given by the General Meeting 

and instructions or resolutions adopted 

by the Board itself. 

The Board’s duties may be divided into 

two main categories: 

• The management of the company by 

the Board. 

• The supervisory responsibility of the 

Board. 

The Board will discuss all matters related 

to the important activities of the 

company or those of an extraordinary 

nature. It will produce an annual work 

plan focused on those tasks that are 

oriented towards developing corporate 

strategy as well as monitoring its implementation. 

Additionally it will execute 

supervisory actions to ensure that the 

company is managing its business, its 

assets and a prudent and satisfactory 

control of risks. The Board is responsible 

for the appointment of the General 

Manager. 

Financial Control 

The Board will keep itself informed of the 

financial situation of the Company and will 

ensure that the operations, the accounts 

and the management of company assets 

are subject to satisfactory controls. 

Board Mandate 

In accordance with the applicable law, 

the terms of reference for the Board are 

established in a formal mandate that includes 

specific rules and guidelines on 

the work of the Board and its decision 

making. Additionally, CAMPOSOL has 

prepared specific instructions for the 

work of the Board, including procedural 

rules as well as indications as to discussions, 

duties and responsibilities of the 

Board in relation to the General Manager. 

The Chairman of the Board is responsible 

for ensuring that the work of the 

Board is carried out effectively, and 

correctly, according to applicable legislation. 

The Board has named a Deputy 

Chairman as is recommended in the 

Code. 

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www. 

camposol. 

com.pe 

Committees 

CAMPOSOL has three committees: 

• Strategy, Business Development 

& Finance Committee. 

• Objective: To evaluate the possibility 

of new investments by CAM- 

POSOL in accordance with its financial 

situation and forecasts. 

• Audit, Control & Risks Committee 

• Objective: To assist the Board in 

complying with its responsibilities 

in relation to the financial report 

issuing process, the internal control 

system, the internal auditing 

process and observance of the 

governance provisions, rules and 

code of conduct. 

• Human Resources, Ethics, Corporate 

Government and Social Responsibility 

Committee. 

The Board constantly evaluates the 

need to create new committees. 

Mandate for the General Manager 

The Board issues a mandate for the 

work of the General Manager, including 

his duties and responsibilities to the 

Board. There is a clear division between 

the responsibilities of the Board and 

those of executive management. The 

General Manager is responsible for the 

daily management of the company’s 

activities, according to the strategy and 

guidelines adopted by the Board. 

The Board will ensure that the General 

Manager reports on a monthly basis on 

the company’s financial situation. 

Financial Reports 

The Board receives periodic reports on 

the commercial and financial situation 

of CAMPOSOL. The Company follows a 

timetable established by the Oslo Stock 

Exchange and the CySEC (Cypriot 

Security Exchange Commission) for 

the publication of annual and interim 

reports. 

Annual Evaluation of the Board 

Annually, at the first meeting of the 

calendar year, the Board performs an 

evaluation of its own performance, as 

well as those of the committees and of 

each individual Director. 

For the evaluation to be effective, 

the Board sets objectives, both at 

collective and individual level, against 

which it will be able to measure its 

performance. 

The Board also carries out a similar 

evaluation of the CEO. 

10. Risk Management and 

Internal Control 

Code: The board of directors must 

ensure that the company has sound 

internal control and systems for risk 

management that are appropriate in 

relation to the extent and nature of the 

company’s activities. Internal control 

and the systems should also encompass 

the company’s corporate values and 

ethical guidelines. 

The board of directors should carry 

out an annual review of the company’s 

most important areas of exposure 

to risk and its internal control 

arrangements. 

The board of directors should provide 

an account in the annual report of the 

main features of the company’s internal 

control and risk management systems 

as they relate to the company’s financial 

reporting. 

The Board is responsible for ensuring 

that the Company has efficient and 

sound processes for internal control. 

The Board must be completely up to 

date with the Company’s financial and 

operational performance, the company’s 

commercial model, the risks associated 

with its economic activities and long 

term sustainability. 

In summary, the Board must be completely 

sure that the company has the necessary 

control systems installed in all its areas and 

that these systems are constantly updated 

to guarantee their optimum operation. 

CAMPOSOL annually identifies and 

evaluates the risks that could affect the 

achievement of corporate objectives 

and establishes control and monitoring 

activities to mitigate these risks as 

required. The Company has an Internal 

Audit function comprising three persons. 

The internal control activities are found 

in detail in the CAMPOSOL internal 

rules, policies and procedures, most of 

them being carried out through SAP. 

The Audit Committee receives quarterly 

information on the principal risks and 

their control activities. 

CAMPOSOL has developed a project that 

has aligned the progress made in all the 

aspects of risk management and internal 

control in a COSO framework (Committee 

of Sponsoring Organizations of the 

Tradeway Commission). The project will 

be fully implemented by the end of 2010. 

11. Remuneration of Board 

Members 

Code: The remuneration of the board of 

directors should reflect the board’s responsibility, 

expertise, time commitment 

and the complexity of the company’s 

activities. 

The remuneration of the board of directors 

should not be linked to the company’s 

performance. The company should 

not grant share options to members of 

its board. 

Members of the board of directors and/ 

or companies with which they are associated 

should not take on specific assignments 

for the company in addition 

to their appointment as a member of 

the board. If they do nonetheless take 

on such assignments this should be disclosed 

to the full board. The remuneration 

for such additional duties should be 

approved by the board. 

Any remuneration in addition to normal 

directors’ fees should be specifically 

identified in the annual report. 

The remuneration granted to the members 

of the Board is decided by the 

GSM. The annual report provides information 

on all the remuneration paid to 

each Board member. 

In addition to the remuneration, the 

directors hold share options, which 

were granted by CAMPOSOL Holding 

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Plc, a company which has Cyprus as 

its home state. This deviates from the 

recommendations of the Code. 

The directors, or the companies 

with whom they are associated, will 

not accept other appointments or 

commitments for CAMPOSOL without 

the knowledge of the Board. In such 

cases, any remuneration must be 

approved by the GSM. 

12. Remuneration of executive 

management 

Code: The board of directors is required 

by law to established guidelines for the 

remuneration of the executive personnel. 

These guidelines are communicated to 

the annual general meeting. 

The guidelines for the remuneration of the 

executive personnel should set out the 

main principles applied in determining 

the salary and other remuneration of 

the executive personnel. The guidelines 

should help to ensure convergence of 

the financial interests of the executive 

personnel and the shareholders. 

Performance-related remuneration of the 

executive personnel in the form of share 

options, bonus programs should be 

linked to value creation for shareholders 

or the company’s earnings performance 

over time. Such arrangements, including 

share option arrangements, should 

motivate performance and be based 

on quantifiable factors over which 

the employee in question can have 

influence. 

The Board adopts guidelines for the 

remuneration of the management 

team that are reported to the General 

Meeting. The salary and other payments 

to the General Manager are determined 

by the Board. 

Details of remuneration paid to the 

executives as well as the remuneration 

guidelines for the General Manager and 

other top executives are included in the 

notes to the financial accounts in the 


13. Information and 

Communication 


establish guidelines for the company’s 

reporting of financial and other information 

based on openness and taking into account 

the requirement for equal treatment of all 

participants in the securities market. 

The company should publish an overview 

each year of the dates for major 

events such as its annual general 

meeting, publication of interim reports, 

public presentations, dividend payment 

date if appropriate etc. 

All information distributed to the company’s 

shareholders should be published 

on the company’s web site at the same 

time it is sent to shareholders. 


guidelines for the company’s contact 

with shareholders other than through 

general meetings. 

CAMPOSOL maintains regular dialogue 

with analysts and investors and 

considers it very important to inform 

shareholders and other stakeholders 

about the Company’s commercial and 

financial performance. CAMPOSOL is 

committed to ensuring that all the participants 

in the stock market receive 

the same information at the same time. 

Additionally the company proactively 

communicates its long term ambitions, 

including its strategies and risk 

factors. The Company has a policy 

of open and reliable communications 

with the investors and a web page 

which is continuously updated. 

Although the Management is responsible 

of the communication with all stakeholders, 

the Chairman of the Board and the 

other directors are available to meet with 

any shareholders and develop a balanced 

understanding of the topics of 

their interest or concern, subject always 

to applicable law and the rules of the 

stock exchange. The CEO ensures that 

the shareholders’ points of view are duly 

communicated to the Board. 

CAMPOSOL strives to communicate 

all relevant information to the market 

in a timely, efficient and non-discriminate 

manner. All the notices issued by 

the Company are available on the web 

page, as well as the website of OSE 

(www.newsweb.no) and news agencies 

through Hugin (www.huginonline.com). 

Financial reports and events 

CAMPOSOL normally publishes its 

provisional annual financial statement 

at the end of February. The complete 

annual report and the accounts statements 

are distributed to shareholders 

at least three weeks before the GSM. 

Quarterly interim reports are published 

within two months of the end of each 

quarter. 

The Company publishes an annual financial 

calendar that includes the dates 

on which it is planned to publish the 

quarterly results. The calendar can be 

found on the web page www.camposol. 

com.pe and is distributed as a stock 

market notice. It can also be found on 

Oslo Stock Exchange’s website, www. 

oslobors.no. The calendar is published 

at the end of each fiscal year. 

CAMPOSOL gives quarterly presentations 

open to the public. These sessions 

provide a financial and operational review 

of the previous quarter, as well as a 

review of the market conditions and the 

Company’s outlook. 

The presentations are given by the General 

Manager and/or the Financial Manager. 

After each quarterly presentation 

the managers give other presentations 

for investors in various locations. The 

quarterly interim reports and presentation 

materials can be found on the CAM- 

POSOL web page. 

14. Acquisitions 


establish guiding principles as to how it 

will act in the event of a take-over bid. 

During the course of a take-over 

process, the board of directors and 

management of both the party making 

the offer and the target company 

have an independent responsibility 

to help ensure that shareholders 

in the target company are treated 

equally, and that the target company’s 

business activities are not disrupted 

unnecessarily. The board of the target 

company has a particular responsibility 

to ensure that shareholders are given 

sufficient information and time to form 

a view of the offer. 

The board of directors should not seek 

to hinder or obstruct take-over bids for 

the company’s activities or shares unless 

there are particular reasons for this. 

In the event of a take-over bid for the 

company’s shares, the company’s 

board of directors should not exercise 

mandates or pass any resolutions 

with the intention of obstructing the 

take-over bid unless this is approved 

by the general meeting following 

announcement of the bid. 

If an offer is made for a company’s 

shares, the company’s board of 

directors should issue a statement 

evaluating the offer and making 

a recommendation as to whether 

shareholders should or should not 

accept the offer. If the board finds 

itself unable to give a recommendation 

to shareholders on whether or not to 

accept the offer, it should explain 

the background for not making such 

a recommendation. The board’s 

statement on a bid should make it 

clear whether the views expressed are 

unanimous, and if this is not the case 

63

64 


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categories 





Corporate 

Governance 



it should explain the basis on which 

specific members of the board have 

excluded themselves from the board’s 

statement. 

The board should consider whether to 

arrange a valuation from an independent 

expert. If any member of the board or 

executive personnel, or close associates 

of such individuals, or anyone who has 

recently held such a position, is either 

the bidder or has a particular personal 

interest in the bid, the board should 

arrange for an independent valuation 

in any case. This shall also apply if the 

bidder is a major shareholder. Any such 

valuation should be either appended to 

the board’s statement, be reproduced 

in the statement or be referred to in the 

statement. 

Any transaction that is in effect a 

disposal of the company’s activities 

should be decided by a general 

meeting, except in cases where such 

decisions are required by law to be 

decided by the corporate assembly. 

Fundamental Commitments and 

Guidelines 

The CAMPOSOL Board is committed 

to treating all shareholders equally, 

as well as ensuring transparency with 

regard to any offer to acquire the 

company. 

However, the Board has not prepared 

formal guidelines for its conduct in 

the case where an offer is made for 

CAMPOSOL, as is recommended by 

the Code. 

CAMPOSOL will not establish 

any mechanism that impedes an 

acquisition unless this has been 

resolved by a General Meeting and 

with a majority of two thirds (of votes 

issued and share capital represented). 

The Norwegian Securities Negotiation 

Act (chapter 6) indicates the formal 

requirements related to the obligation 

in a hostile bid and a friendly bid in 

connection with possible acquisitions 

of CAMPOSOL. 

Evaluation of an Offer 

If a formal offer is received for 

CAMPOSOL, the Board will normally 

attempt to obtain other competitive 

offers. This will not apply if the Board 

can definitely recommend an offer 

received, or if the process of seeking 

a competitive offer could provoke 

the withdrawal of the offer already 

received. 

Should an offer be received for the 

shares of CAMPOSOL, the Board will 

issue a statement evaluating the offer 

together with a recommendation to the 

shareholders to accept or not accept 

said proposal. If the Board cannot 

recommend a decision on the offer, it 

should explain the reasons for such 

abstention. If the statement by the 

Board is not unanimous, this should 

also be explained. The Board should 

also consider if a valuation by an 

independent expert is pertinent. 

15. Auditor 

Code: The auditor should submit the 

main features of the plan for the audit 

of the company to the audit committee 

annually. 

The auditor should participate in 

meetings of the board of directors 

that deal with the annual accounts. 

At these meetings the auditor should 

review any material changes in the 

company’s accounting principles, 

comment on any estimated accounting 

figures and report all material matters 

on which there has been disagreement 

between the auditor and the executive 

management of the company. 

The auditor should at least, once a 

year, present to the audit committee 

a review of the company’s internal 

control procedures, including 

identified weaknesses and proposals 

for improvement. 

The board of directors should hold 

a meeting with the auditor at least 

once a year at which neither the chief 

executive nor any other member of the 

executive management is present. 


guidelines in respect of the use of the 

auditor by the company’s executive 

management for services other than 

the audit. 

The board of directors must report the 

remuneration paid to the auditor at 

the annual general meeting, including 

details of the fee paid for audit work 

and any fees paid for other specific 

assignments. 

Election of the Auditor 

CAMPOSOL’s financial statements 

for 2009 have been audited by 

PricewaterhouseCoopers (PwC). 

Cyprus law requires that the auditor 

be elected by the shareholders in the 

General Meeting. The Board will make 

recommendations to the General 

Meeting on the appointment, removal 

and remuneration of the auditor. 

Relationship of the Auditor with 

the Board 

The auditor participates in the Annual 

General Shareholders Meeting. At the 

meeting, the auditor informs the Board 

of the plan for the audit. The Board holds 

one or more meetings every year with the 

auditor without the CEO being present. 

Additionally, the auditor participates in the 

meetings in which the Board considers 

the annual accounts. In these the auditor 

comments on any material changes in 

the principles and the accounting figures 

of the company, reporting at the same 

time all material matters where there 

has been disagreement between the 

auditor and the company’s executive 

management. 

In the GSM the auditor presents to the 

Board a review of the company’s internal 

control procedures, including proposals 

for improvements. 

CAMPOSOL has established an audit 

committee that supports the Board in 

revising, evaluating and, when necessary, 

proposing appropriate measures related 

to the internal and external auditing of 

the group. 

65

Martha Zamora Armas 

Head of Parcel in Africultor Farm 

“I believe that Camposol is growing more each day. I hope that all my workmates, all the new people that 

the company is giving an opportunity to, take maximum advantage of it because it helps us develop, 

both professionally, as well as in the family sense. If one does not work, how can one support the family? 

I have 3 children, one of them is a professional and the other two small ones are at elementary school. I 

was born in Viru and I live in Huancaquito Bajo. I began working in Camposol in 1999, in the area of field 

care; I then went to harvesting before being promoted to supervisor of field care then pruning supervisor 

and then evaluator before becoming coordinator and now Head of Parcel. 

I thank God, my family for the sacrifice and my colleagues, because they have supported me a lot to do 

something normally performed by a professional. I am not a professional, I only studied until the third 

year of secondary school. 

Together with all the people I work with we make a team because we work towards the same objective, 

if we do something we do it with good communication between bosses and workers, we communicate 

every day regarding the work we are performing. 

Camposol is a serious company that trains its people. When one wants to develop in the company 

one has to put in a lot of effort to succeed. I thank God and pray to Him for the whole company, for 

everyone who has helped me. I think that one comes to work to support the family and one has to 

do it better every day. I hope that we will always have this goal of wanting to grow, in this company 

we can do it because there are professionals who give a helping hand and support us constantly”.

7Board of Directors’ Report

70 camposol annual report 2009 

Overview 

Product & 

categories 





Corporate 

Governance 



CAMPOSOL HOLDING PLC AND SUBSIDIARIES 

CONSOLIDATED FINANCIAL STATEMENTS 

DECEMBER 31, 2009 

CONTENTS 

General information 

Directors’ report 

Report of the independent auditors 

Consolidated statement of financial position 

Consolidated statement of comprehensive income 

Consolidated statement of changes in shareholders´ equity 

Consolidated statement of cash flows 

Notes to the consolidated financial statements 

USD = United States dollar 

PEN = Nuevo sol 

€ = Euros 

GENERAL INFORMATION 

Directors 

Samuel Edward Dyer Ampudia (appointed 15 January 2008) 

Chairman 

Christian Alte Lyndstorm Selmer (resigned 18 June 2009) 

Samuel Barnaby Dyer Coriat (appointed 15 January 2008) 

Synne Syrrist (resigned 15 June 2008) 

Pavlos Aristodemou (resigned 15 June 2008) 

Frixos Savvides (appointed 15 January 2008) 

Gianfranco Dante Máximo Castagnola Zúñiga (appointed 10 June 2008) 

Mimi Kristine Berdal (appointed 19 June 2009) 

Richard Christopher Yetter (appointed 19 June 2009) 

Hugo Walter Chumbez Panesi (appointed 19 June 2009) 

Company Secretary 

Altruco Secretarial Limited 

Arch. Kyprianou & Ag. Andreou, 

Loukaides Court, 5 th Floor 

3036 Limassol, 

Cyprus 

Registered office 

Arch. Kyprianou & Ag. Andreou, 

Loukaides Court, 5th Floor 

3036 Limassol, 

Cyprus 

Independent auditors 

PricewaterhouseCoopers Limited 

Cyprus 

DIRECTORS’ REPORT 

The Board of Directors submit presents its report together with the audited consolidated 

financial statements of Camposol Holding Plc (the “Company”) and its subsidiaries 

(collectively referred to as the “Group”) for the year ended December 31, 2009. 

Principal activities 

Camposol Holding PLC is the holding company of the Camposol Group (hereinafter the 

“Group”). During the year the Group continued its agricultural activities and is the largest 

exporter of asparagus in the world. 

Financial Results 

The Group’s results for the year are set out on page 7. The Board of Directors does not 

recommend the payment of a dividend and the net profit for the year is retained. 

Review of developments, position and performance of the Group’s business and its 

position 

The profit of the Group for the year ended 31 December 2009 was USD2,005,000 (2008: 

profit of USD985,000). Turnover in 2009 decreased to USD123 million, compared to 

sales for 2008 of USD141 million. On 31 December 2009 the total assets of the Group 

were USD351 million (2008: USD369 million) and the net assets were USD235 million 

(2008: net assets USD221 million). The financial position, development and performance 

of the Group as presented in these financial statements are considered satisfactory. 

Future Developments 

The Group sets as its strategic priorities for the four years from 2010 to 2013 the 

maintenance of its position as a global leader in the asparagus, avocados market and 

the diversification in new products, such as red table grapes and mandarins, to satisfy 

demand. 

Risk Management 

Like other agricultural businesses the Group is exposed to risks, the most significant of 

which are natural phenomena such as the cold and hot ocean currents of “El Nino” and 

“La Nina” which impact agricultural production, adverse movements in the market prices 

for fruit and vegetables, interest rate risk and liquidity risk. 

The Group monitors and manages these risks through various control mechanisms. 

Detailed information relating to risk management is set out in Notes 3 and 4 to the 

financial statements. 

Branches 

The Group did not operate through any branches during the year. 

Share capital 

During 2009, there were no transactions related to the issuance of share capital, share 

options or warrants. 

Directors 

The Directors of the Company at the date of this report are as shown on page 1. 

The Directors who served during the year and up to the date of this report are the 

following: 

Appointed 

Samuel Edward Dyer Ampudia 15 January 2008 

Resigned 

Christian Alte Lyndstorm Selmer 15 January 2008 18 June 2009 

Samuel Barnaby Dyer Coriat 15 January 2008 

Synne Syrrist 15 January 2008 18 June 2009 

Pavlos Aristodemou 15 January 2008 18 June 2009 

Frixos Savvides 15 January 2008 

Gianfranco Dante Máximo Castagnola Zúñiga 10 June 2008 

Mimi Kristine Berdal 19 June 2009 

Richard Christopher Yetter 19 June 2009 

Hugo Walter Chumbez Panesi 19 June 2009 

71


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All of the Directors shall hold office until the next General Meeting and are eligible for 

re-appointment by the shareholders. 

There were no significant changes in the assignment of responsibilities and 

remuneration of the Board of Directors. 

Events after the balance sheet date 

Material events occurred after the reporting period are disclosed in Note 33 to the 

financial statements 

Independent auditors 

PricewaterhouseCoopers Cyprus Ltd has expressed its willingness to continue in 

office. A resolution proposing their re-appointment and fixing the remuneration will 

be put forward for consideration of the shareholders at the Annual General Meeting. 

By order of the Board 

Samuel Dyer Ampudia, Chaiman 

Walter Chumbez, Director 

Cyprus 

21 April 2010 

___________________________________ 

Signature 

___________________________________ 

Signature 

Independent Auditors’ Report To the Members of 

Camposol Holding Plc 

Report on the Financial Statements 

We have audited the consolidated financial statements of Camposol Holding Plc (the 

“Company”) and its subsidiaries (collectively referred to as “the Group”) on pages 

6 to 67, which comprise the consolidated statement of financial position as at 31 

December 2009, the consolidated statements of income and comprehensive income, 

consolidated statement of changes in equity and consolidated cash flow statement 

for the year then ended, and a summary of significant accounting policies and other 

explanatory notes. 

Board of Directors’ Responsibility for the Financial Statements 

The Company’s Board of Directors is responsible for the preparation and fair presentation 

of these consolidated financial statements in accordance with International Financial 

Reporting Standards as adopted by the European Union (EU) and the requirements 

of the Cyprus Companies Law, Cap. 113. This responsibility includes: designing, 

implementing and maintaining internal control relevant to the preparation and fair 

presentation of financial statements that are free from material misstatement, whether 

due to fraud or error; selecting and applying appropriate accounting policies; and 

making accounting estimates that are reasonable in the circumstances. 

Auditors’ Responsibility 

Our responsibility is to express an opinion on these consolidated financial statements 

based on our audit. We conducted our audit in accordance with International Standards 

on Auditing. Those Standards require that we comply with ethical requirements and 

plan and perform the audit to obtain reasonable assurance whether the financial 

statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts 

and disclosures in the financial statements. The procedures selected depend on the 

auditor’s judgment, including the assessment of the risks of material misstatement 

of the financial statements, whether due to fraud or error. In making those risk 

assessments, the auditor considers internal control relevant to the entity’s preparation 

and fair presentation of the financial statements in order to design audit procedures 

that are appropriate in the circumstances, but not for the purpose of expressing an 

opinion on the effectiveness of the entity’s internal control. An audit also includes 

evaluating the appropriateness of accounting policies used and the reasonableness of 

accounting estimates made by the Board of Directors, as well as evaluating the overall 

presentation of the financial statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to 

provide a basis for our audit opinion. 

Opinion 

In our opinion, the consolidated financial statements give a true and fair view of 

the financial position of Camposol Holding Plc its subsidiaries as of 31 December 

2009, and of its financial performance and its cash flows for the year then ended in 

accordance with International Financial Reporting Standards as adopted by the EU 

and the requirements of the Cyprus Companies Law, Cap. 113. 

Report on Other Legal Requirements 

Pursuant to the requirements of the Companies Law, Cap. 113, we report the following: 

• We have obtained all the information and explanations we considered necessary 

for the purposes of our audit. 

• In our opinion, proper books of account have been kept by the Company. 

• The Company’s financial statements are in agreement with the books of account. 

• In our opinion and to the best of our information and according to the explanations 

given to us, the consolidated financial statements give the information required by 

the Companies Law, Cap. 113, in the manner so required. 

• In our opinion, the information given in the report of the Board of Directors on 

pages 2 and 3 is consistent with the consolidated financial statements. 

Other Matter 

This report, including the opinion, has been prepared for and only for the Company’s 

members as a body in accordance with Section 156 of the Companies Law, Cap. 

113 and for no other purpose. We do not, in giving this opinion, accept or assume 

responsibility for any other purpose or to any other person to whose knowledge this 

report may come to. 

PricewaterhouseCoopers Limited 

Chartered Accountants 

Limassol, 21 April 2010 

73

8Independent Auditor’s 

Report And Audited 

Financial Statements


Overview 

Product & 

categories 





Corporate 

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CAMPOSOL HOLDING 

PLC AND SUBSIDIARIES 

CONSOLIDATED STATEMENT OF 

FINANCIAL POSITION 

ASSETS 

Non-current assets 

As of December 31, 

Note 2009 2008 

USD000 

USD000 

Property, plant and equipment 5 111,927 120,360 

Investments in associated 

companies 

6 422 274 

Intangible assets 7 26,586 27,580 

Non-current portion of biological 

assets 

8 125,802 99,962 

Total non-current assets 264,737 248,176 

CURRENT ASSETS 

Prepaid expenses 643 1,339 

Current portion of biological assets 8 15,031 15,386 

Inventories 9 32,033 58,037 

Other accounts receivable 10 12,445 14,077 

Trade accounts receivable 11 20,589 25,822 

EQUITY AND LIABILITIES 

Equity attributable to shareholders of the parent 

Share capital 507 507 

Share premium 212,318 212,318 

Share warrants 2,050 4,114 

Share options 914 745 

Other reserves 358 (10,662) 

Retained earnings 18,270 14,114 

Total equity attributable to 

shareholders of the parent 

234,417 221,136 

Minority interests 88 88 

Total equity 13 234,505 221,224 

NON-CURRENT LIABILITIES 

Long - term debt 16 48,319 56,826 

Deferred income tax 14 13,414 10,094 

Other payables 18 10,140 19,707 

Total non-current liabilities 71,873 86,627 

CURRENT LIABILITIES 

Current portion of long-term debt 16 8,635 9,528 

Trade payables 17 20,262 25,134 

Other payables 18 6,614 9,638 

Bank loans and overdrafts 19 9,285 16,456 

Total current liabilities 44,796 60,756 

Total liabilities 116,669 147,383 

Total equity and liabilities 351,174 368,607 

Approved for issue and signed on behalf of the Board of Directors of Camposol 

Holding PLC on April 21, 2010. 

Directors 

Samuel Dyer Ampudia Chairman 

Walter Chumbez 

Cash and short-term deposits 12 5,696 5,770 

Total current assets 86,437 120,431 

Total assets 351,174 368,607 

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CONSOLIDATED STATEMENT OF 

COMPREHENSIVE INCOME 

For the year ended 

December 31, 


USD000 USD000 

Continuing operations: 

Revenue 21 122,773 140,705 

Cost of sales 22 (98,608) (110,362) 

Gross profit 24,165 30,343 

Net adjustment from change in fair value of biological assets 8 24,029 17,076 

Profit after adjustment for biological assets 48,194 47,419 

Profit attributable to: 

Equity shareholders of the parent 2,005 985 

Minority interests - - 

2,005 985 

Basic earnings per ordinary share 

(expressed in U.S. dollars per share) 29 0.067 0.034 

Diluted earnings per ordinary share 

(expressed in U.S. dollars per share) 29 0.067 0.034 

Administrative expenses 23 (13,314) (12,659) 

Selling expenses 24 (14,301) (16,286) 

Other income 26 1,359 733 

Other expenses 26 (7,418) (4,806) 

Operating profit 14,520 14,401 

Share of gain (loss) of associated companies 6 148 (79) 

Financial income 27 64 1,975 

Financial expenses 27 (11,019) (11,374) 

Currency translation differences (301) (4,042) 

Profit before income tax 3,412 881 

Income tax 28 (1,407) 104 

Profit for the year 2,005 985 

Profit for the year 2,005 985 

Other comprehensive income: 

Net unrealized gain/(loss) on cash flow hedge 11,093 (11,093) 

Translations adjustment (73) 431 

Other comprehensive income net of tax 11,020 (10,662) 

Total comprehensive income (loss) for the year 13,025 (9,677) 

Attributable to: 

Equity shareholders of the parent 13,025 (9,677) 

Minority interests - - 

Total comprehensive income (loss) for the year 13,025 (9,677) 

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CONSOLIDATED STATEMENT OF CHANGES IN SHARHOLDERS´ EQUITY 

Note 

Number 

of shares 

Share 

capital 

Share 

premium 

Attributable to owners of the parent 

Share 

warrants 

Share 

options 

Other 

reserves 

"Retained 

earnings” 

Total 

“Minority 

interests” 

“Total 

equity” 

000 USD000 USD000 USD000 USD000 USD000 USD000 USD000 USD000 USD000 

Balance as of January 1, 2008 29,341 459 189,453 6,133 257 - 11,037 207,339 88 207,427 

Comprehensive income: 

Profit for the year - - - - - - 985 985 - 985 


Net unrealized loss on cash flow hedge 3-a - - - - - (11,093) - (11,093) - (11,093) 

Translations adjustment - - - - - 431 431 - 431 

Total comprehensive income - - - - - (10,662) 985 (9,677) - (9,677) 

Transactions with owners: 

Issue of shares 13 3,063 48 23,774 - - - - 23,822 - 23,822 

- fees and expenses 13 - - (909) - - - - (909) - (909) 

Stock options 13 - - - - 561 - - 561 - 561 

Options and warrants expired 13 - - - (2,019) (73) - 2,092 - - - 

Total transactions with owners 3,063 48 22,865 (2,019) 488 - 2,092 23,474 - 23,474 

Balance as of December 31, 2008 32,404 507 212,318 4,114 745 (10,662) 14,114 221,136 88 221,224 

Comprehensive income: 

Profit for the year - - - - - - 2,005 2,005 - 2,005 


Net unrealized gains on cash flow hedge 3-a - - - - - 11,093 - 11,093 - 11,093 

Translations adjustment - - - - - (73) (73) - (73) 

Total comprehensive income - - - - - 11,020 2,005 13,025 - 13,025 

Transactions with owners: 

Stock options 13 - - - - 256 - - 256 - 256 

Options and warrants expired 13 - - - (2,064) (87) - 2,151 - - - 

Total transactions with owners - - - (2,064) 169 - 2,151 256 - 256 

Balance as of December 31, 2009 32,404 507 212,318 2,050 914 358 18,270 234,417 88 234,505 

Companies which do not distribute 70% of their profits after tax, as defined by the Special Contribution for the Defence of the Republic Law, during the two years after the end 

of the year of assessment to which the profits refer, will be deemed to have distributed this amount as dividend. Special contribution for defence of 15% will be payable on such 

deemed dividend to the extent that the shareholders /individuals and companies) at the end of the period of two years from the end of the year of assessment to which the profits 

refer, are Cyprus tax residents. The amount of this deemed dividend distribution is reduced by any actual dividend paid out of the profit of the relevant year at any time. This 

special contribution for defence is paid by the Group for the account of the shareholders. 

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CONSOLIDATED STATEMENT OF CASH FLOWS 


December 31, 


USD000 USD000 

CASH FLOWS FROM OPERATING ACTIVITIES 

Collections 128,063 158,252 

Payment to suppliers and employees (114,369) (174,308) 

Interest paid (10,279) (11,292) 

Other collections 13,339 8,774 

Interest received on bank deposits - 1,416 

Income tax paid (1,041) (2,129) 

Net cash generated from (used in) operating activities 15,713 (19,287) 

CASH FLOWS FROM INVESTING ACTIVITIES 

Purchases of property, plant and equipment 5 (3,874) (29,714) 

Purchases of intangibles 7 (208) (1,746) 

Proceeds from sale of property, plant and equipment 4,486 140 

Net cash from (used in) investing activities 404 (31,320) 

CASH FLOWS FROM FINANCING ACTIVITIES 

Bank loans and overdrafts 19 (6,791) 14,978 

Prepayment of borrowings - (7,000) 

Payment to Camposol AS shareholders - (320) 

Capital contribution, net of transaction cost - 21,003 

Payments of long-term debt 16 (9,400) (62,050) 

Net cash used in financial activities (16,191) (33,389) 

Net decrease in cash and cash equivalents (74) (83,996) 

Cash and cash equivalents at beginning of year 5,770 89,766 

Cash and cash equivalents at end of year 12 and 19 5,696 5,770 

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CONSOLIDATED STATEMENT OF CASH FLOWS (Continue) 

CASH FLOWS FROM OPERATING ACTIVITIES 


December 31, 


USD000 

USD000 

Reconciliation of profit for the year to net cash from 

(used in) operating activities: 

Profit before income tax 5 3,412 881 

Depreciation 7 6,168 5,110 

Amortization 26 1,202 1,208 

Provision for doubtful accounts receivable 26 2,628 3,435 

Provision for obsolescence of inventories 8 2,500 - 

Interest expenses 27 10,627 - 

Write down off inventories 26 1,493 - 

Biological assets 8 (25,485) (17,076) 

Net cost of fixed assets sold 27 293 56 

Stock options expense 25 256 561 

(Profit) loss of investments in associates 6 (148) 79 

Income tax and workers’ profit sharing 15 3,642 (381) 

Change in derivative financial instruments 3-a (1,611) 1,611 

Write-off of accounts receivables - (1,315) 

Net exchange difference (81) 431 

Increase (decrease) of cash flows from operations due 

to changes in assets and liabilities: 

Trade receivables 11 2,662 15,822 

Other receivables 10 1,580 3,512 

Inventories 9 23,505 (31,334) 

Prepaid expenses 696 825 

Trade payables 17 (4,872) 7,613 

Other payables 18 (12,754) (10,325) 

Net cash generated from (used in) operating activities 15,713 (19,287) 

Transactions not affecting cash flows: 

Fixed assets acquired under financial leases - 1,268 

Share premium increase for fair value of liability 13 - 2,230 

- 3,498 

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CAMPOSOL HOLDING PLC AND SUBSIDIARIES 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 

DECEMBER 31, 2009 

1 GENERAL INFORMATION 

a) Business activities - 

Camposol Holding PLC (hereinafter the Company) was incorporated in Cyprus on July 

9, 2007, under the name Halemondi Holdings Limited, as a private company under 

the provisions of the Cyprus Companies Law, Cap. 113, and was converted to a 

public limited liability company on November 8, 2007. The name of the Company was 

changed to Camposol Holding PLC on February 11, 2008. 

The Company’s legal address is at Arch. Kyprianou & Ayiou Andreou, Loukaides Court 

5th Floor, 3036 Limassol, Cyprus. 

As from May 2008 the shares of the Company are listed on the Oslo Axess stock 

exchange. 

direct or indirect 

equity interest 

as of December 31, 

Country of 

Company Principal activity incorporation 2009 2008 

% % 

Camposol S.A. Agribusiness Peru 100.00 100.00 

Campoinca S.A. Agriculture Peru 100.00 100.00 

Preco Precio Económico S.A.C. Retail Peru 50.00 50.00 

Sociedad Agrícola 

Las Dunas S.R.L. Agriculture Peru 99.99 99.99 

Prodex S.A.C. Agriculture Peru 100.00 100.00 

Balfass S.A. Agriculture Peru 100.00 100.00 

Vegesol S.A. Agriculture Peru 100.00 100.00 

Muelles y Servicios 

Camposol Holding PLC and its subsidiaries are referred to hereinafter as the Group. 

Camposol S.A. is a Peruvian agribusiness corporation incorporated in the city of Lima 

on January 31, 1997, and is the world’s largest producer and exporter of asparagus. 

Camposol S.A. contributes substantially to all the Group’s revenue and net profit. 

The legal domicile of Camposol S.A. is Calle Francisco Graña 155, La Victoria, Lima, 

Peru. In addition, Camposol S.A. has a operation and commercial office located at 

Carretera Panamericana Norte Km. 497.5, Chao, Viru, La Libertad, and three production 

establishments or agricultural lands located at Carretera Panamericana Norte Kms. 

510, 512 and 527 in the department of La Libertad, Peru. Camposol S.A. also has two 

offices in the department of Piura. 

The Group has control of Preco Precio Económico S.A.C., which remained dormant 

and had no income or expenses in 2009 and 2008. 

The table below presents details of the agricultural land where the Group develops its 

activities: 

Area in Hectares (Ha) 

Land Peruvian region 2009 2008 

Mar Verde La Libertad 2,496 2,496 

Huangala - Terra Piura 2,662 2,662 

Agricultor La Libertad 1,726 1,726 

Gloria La Libertad 1,018 1,018 

Agromás La Libertad 414 414 

Pur Pur La Libertad 246 246 

Virú - San José La Libertad 616 416 

Compositan La Libertad 3,778 3,778 

Yakuy Minka La Libertad 2,770 2,762 

Santa Ana Piura 3,370 3,370 

Santa Anita Piura 128 128 

The subsidiaries and their activities are as follows: 

Paita S.R.L. Services Peru 100.00 100.00 

Santa Julia Piura 2,105 2,105 

Marinazul S.A. Shrimp farming Peru 100.00 100.00 

María Auxiliadora Piura 1,980 1,980 

Marinasol S.A. Fish canning Peru 100.00 100.00 

La Merced Piura 1,000 1,000 

Camposol Europa S.L. Distribution Spain 100.00 100.00 

Ocoto Alto Piura 112 112 

Camposol Fresh B.V. Distribution Netherlands 100.00 100.00 

Ocoto Bajo Piura 31 31 

Madoca Corp. Holding Panama 100.00 100.00 

Ica Ica 175 175 

Grainlens Ltd. Holding Cyprus 100.00 100.00 

Tumbes Tumbes 462 462 

Blacklocust Ltd. Holding Cyprus 100.00 100.00 

25,089 24,881 

Siboure Holding Ltd. Holding Cyprus 100.00 100.00 

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The Group develops its activities over the following planted areas: 

area in Hectares (Ha) 

2009 2008 

Asparagus 2,702 2,993 

Avocados 2,278 1,207 

Mangoes 415 415 

Grapes 100 97 

Tangerine 101 57 

5,596 4,769 

The Group also has 560 Ha of area ready to plant pepper and 253 Ha for shrimp 

farming. As of December 31, 2009 the Group had planted 466 Ha of pepper in this 

designated area, while at December 31, 2008 did not have any pepper planted in such 

area. 

b) Group reorganization - 

Camposol AS was established on September 5, 2007, and was financed through a 

private placement on October 8, 2007. On October 17, 2007 Camposol AS acquired 

100% of the shares in Siboure Holding Ltd (previously known as Siboure Holdings Inc.) 

which held 100% of Camposol S.A. 

On March 3, 2008, the Company made a voluntary offer to acquire all the issued 

shares in Camposol AS in exchange of the shares of the Company. The shareholders 

of Camposol AS became shareholders of the Company, holding the same number of 

shares and warrants in the Company as they did in Camposol AS. As a result of this 

exchange, Camposol AS became a wholly-owned subsidiary. This transaction does not 

represent a business combination and is outside the scope of IFRS 3 (2007). There is 

no economic substance in terms of any real alteration of the composition or ownership 

of the Group. Accordingly the consolidated financial statements are presented as 

a continuation of the Camposol AS group using the pooling of interests method. In 

applying the pooling of interests method, the items of the financial statement of the 

combining enterprises for the period in which the combination occurred and for any 

comparative periods disclosed are presented as if they had been combined from the 

beginning of the earliest period presented. 

Camposol AS was liquidated on December 22, 2008 with no impact on the Group’s 

financial statements as all its rights and obligations were transferred to Camposol 

Holding PLC. 

c) Approval of the financial statements - 

The 2009 consolidated financial statements of the Company and its subsidiaries were 

approved by the Board of Directors Meeting hold on April 21, 2010. 

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

The principal accounting policies applied in the preparation of these consolidated 

financial statements are set out below. These policies have been consistently applied 

to all the years presented, unless otherwise stated. 

2.1 Basis of preparation - 

The consolidated financial statements of the Group have been prepared in accordance 

with International Financial Reporting Standards (IFRS), as adopted by the European 

Union (EU), and the requirements of the Cyprus Companies Law, Cap. 113. 

As of the date of the authorization of the financial statements, all International Financial 

Reporting Standards issued by the International Accounting Standards Board (IASB) 

that are effective as of 1 January 2009 have been adopted by the EU through the 

endorsement procedure established by the European Commission, with the exception 

of the following: 

i) Certain provisions of IAS 39 “Financial Instruments: Recognition and Measurement” 

relating to portfolio hedge accounting; 

ii) Improvements to IFRSs 2009. 

In addition, the following interpretations have been endorsed; however, their effective 

dates are not the same, although an entity may choose to early adopt them: 

i) IFRIC 12 “Service Concession Arrangements”; 

ii) IFRIC 15 “Agreements for the construction of real estate”; and 

iii) IFRIC 16 “Hedges of a Net Investment in a Foreign Operation”. 

The adoption of these standards will not have any impact on the financial statements. 

The consolidated financial statements have been prepared under the historical cost 

convention, as modified by the revaluation at fair value of biological assets and 

derivative financial instruments. 

The financial statements are presented in thousand of United States dollars (USD) 

unless otherwise stated. Where relevant, there are amounts expressed in Nuevo Sol 

(PEN), Euro (EUR), and Norwegian Kroner (NOK). 

The preparation of financial statements in conformity with IFRSs requires the use of certain 

critical accounting estimates. It also requires Management to exercise its judgment in the 

process of applying the Group’s accounting policies. The areas involving a higher degree 

of judgment or complexity, or areas where assumptions and estimates are significant to 

the consolidated financial statements are disclosed in Note 4. 

2.2 Changes in accounting policy and disclosures - 

a) New and amended standards adopted by the Group - 

The Group has adopted the following new and amended IFRSs as of January 1, 2009: 

IFRS 7 ‘Financial instruments - Disclosures’ (amendment) - effective January 1, 2009. The 

amendment requires enhanced disclosures about fair value measurement and liquidity 

risk. In particular, the amendment requires disclosure of fair value measurements by 

level of a fair value measurement hierarchy. As the change in accounting policy only 

results in additional disclosures, there is no impact on earnings. 

IAS 1 (revised). ‘Presentation of financial statements’ - Effective January 1, 2009. The 

revised standard prohibits the presentation of items of income and expenses (that is, 

‘non-owner changes in equity’) in the statement of changes in shareholders’ equity, 

requiring ‘non owner changes in equity’ to be presented separately from owner changes 

in equity in a statement of comprehensive income. As a result the group presents in the 

consolidated statement of changes in stockholders’ equity all owner changes in equity, 

whereas all non-owner changes in equity are presented in the consolidated statement 

of comprehensive income. Comparative information has been re-presented so that it 

also is in conformity with the revised standard. As the change in accounting policy only 

impacts presentation aspects, there is no impact on earnings per share. 

IFRS 2 (amendment), ‘Share-based payment’ (effective 1 January 2009) deals with 

vesting conditions and cancellations. It clarifies that vesting conditions are service 

conditions and performance conditions only. Other features of a share-based payment 

are not vesting conditions. These features would need to be included in the grant date fair 

value for transactions with employees and others providing similar services; they would 

not impact the number of awards expected to vest or valuation there of subsequent to 

grant date. All cancellations, whether by the entity or by other parties, should receive 

the same accounting treatment. The Group has adopted IFRS 2 (amendment) from 1 

January 2009. The amendment did not have a material impact on the Group’s financial 

statements. 

IAS 23 ‘Borrowing costs’ (2007) deals with the mandatory capitalization of borrowing 

costs directly attributable to the acquisition, construction or production of a qualifying 

asset as part of the cost of that asset. The revised standard did not have any impact 

on earnings per share for 2009 since the Group did not present any qualifying assets. 

b) Adoption of new and revised IFRSs 

During the current year the Group adopted all the new and revised International 

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Financial Reporting Standards (IFRS) that are relevant to its operations and are effective for accounting periods beginning on 1 January 2009. This adoption did not have a material 

effect on the accounting policies of the Group. 

At the date of approval of these financial statements the following accounting standards were issued by the International Accounting Standards Board but were not yet effective: 

New standards / Amendments/ Interpretations 

IFRIC 15, ‘Agreements for the construction of real estate’ 

Effective for annual periods 

beginning on or after 

1 January 2009; (EU:31 December 

2009 

New standards / Amendments/ Interpretations 

Adopted by the European Union 

Effective for annual periods 

beginning on or after 

IFRIC 16 “Hedges of a Net Investment in a Foreign Operation” 

1 October 2008 

(EU: 30 June 2009) 

IFRIC 17 “Distributions of Non cash Assets to Owners” 1 July 2009 

IFRIC 18 “Transfers of Assets from Customers” 1 July 2009 

New standards 

(ii) 

Not adopted by the European Union 

IFRS 3 (Revised) “Business Combinations” 1 July 2009 

IAS 27 (Revised) “Consolidated and Separate Financial Statements” 1 July 2009 

IFRS 1 (Revised) “First Time Adoption of International Financial Reporting Standards” 1 July 2009 

Amendments 

Annual Improvements to IFRS (2008) re IFRS 5 “Non-current Assets Held for Sale and 

Discontinued Operations” 

Amendment to IAS 39 “Financial Instruments: Recognition and Measurement” on “Eligible 

Hedged Items” 

1 July 2009 

1 July 2009 

Amendment to IFRIC 9 and IAS 39 regarding embedded derivatives 30 June 2009 

Amendment to IFRS 7 “Financial Instruments: Disclosures” 1 January 2009 

New IFRICs 

IFRIC 12 “Service concession arrangements” 1 January 2008; (EU:30 March 2009) 

New Standards 

IAS24 Revised “Related Party Disclosures” 1 January 2011 

IFRS 9 “Financial Instruments: Classification and Measurement” 1 January 2013 

Amendments 

Amendment to IFRIC 14 Prepayments of a Minimum Funding Requirement 1 January 2011 

Annual Improvements 2009 1 January 2009 to 1 January 2010 

Amendments to IFRS2 Group Cash-settled Share-based Payment Transactions 1 January 2010 

Amendments to IFRS1 Additional Exemptions for First-time Adopters 1 January 2010 

Amendments to IAS 32 Classification of Rights Issues 1 February 2010 

IFRICS 

IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments 1 July 2010 

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The Board of Directors expects that the adoption of these accounting standards in 

future periods will not have a material effect on the financial statements of the Group. 

2.3 Consolidation - 

The consolidated financial statements include the assets, liabilities, results and cash 

flows of its subsidiaries detailed in Note 1-a). 

a) Subsidiaries - 

Subsidiaries are all entities over which the Group has the power to govern the financial 

and operating policies by means of shareholding more than one half of the voting rights. 

The existence and effect of potential voting rights that are currently exercisable or 

convertible are considered when assessing whether the Group controls another entity. 

Subsidiaries are fully consolidated from the date on which control was transferred to 

the Group. They are de-consolidated when control ceases. 

b) Purchase accounting - 

The purchase method of accounting is used to account for the acquisition of subsidiaries. 

The cost of an acquisition is measured as the fair value of the assets given, equity 

instruments issued and liabilities incurred or assumed at the date of exchange, plus 

costs directly attributable to the acquisition. The fair value of the services rendered in 

connection with the combination is recorded in equity and included in the total cost of 

the business combination. Identifiable assets acquired and liabilities and contingent 

liabilities assumed in a business combination are measured initially at their fair values 

at the acquisition date. The excess of the cost of acquisition over the fair value of the 

Group’s share of the identifiable net assets acquired is recorded as goodwill. If the cost 

of acquisition is less than the fair value of the net assets of the subsidiary acquired, the 

difference is recognized directly in the statement of comprehensive income. 

Inter-company transactions, balances and unrealized gains on transactions between 

the Company and its subsidiaries are eliminated. Unrealized losses are also eliminated. 

Accounting policies of the subsidiaries have been revised and changed where 

necessary to ensure consistency with the policies adopted by the Group. 

The financial statements of subsidiaries are prepared for the same reporting period 

as the Group, using consistent accounting policies. All intra-group balances and 

transactions, including unrealized profits and losses, are eliminated in full. 

c) Minority interests - 

Minority interests represent the portion of profit or loss and net assets that is not held by the 

Group and are presented separately in the consolidated statement of comprehensive income 

and within equity in the consolidated balance sheet, separately from parent shareholders’ 

equity. The difference between the consideration and the book value of the share of the net 

assets on acquisitions of minority interests is recognized in retained earnings in equity. 

2.4 Foreign currency translation - 

Functional and presentation currency - 

The Group’s consolidated financial information is presented in US dollars, which is its 

functional currency, the currency of the primary economic environment in which the 

holding company and all key subsidiaries operate. Each entity in the Group determines 

its own functional currency and items included in the financial statements of each 

entity are measured using that functional currency. 

Transactions and balances - 

Foreign currency transactions are translated into the functional currency using the 

exchange rates prevailing at the dates of the transactions or valuation where items are 

re-measured. Foreign exchange gains and losses resulting from the settlement of such 

transactions and from the translation at year-end exchange rates of monetary assets 

and liabilities denominated in foreign currencies are recognized in the consolidated 

statement of comprehensive income as other comprehensive income. 

Foreign exchange gains and losses that relate to borrowings and cash and cash 

equivalents are presented in the statement of comprehensive income within ‘finance 

income or cost’. All other foreign exchange gains and losses are presented in the 

consolidated statement of comprehensive income within ‘other (losses)/gains - net’. 

Group Companies - 

The results and financial position of all the Group entities (none of which has the 

currency of a hyper inflationary economy) that have a functional currency different from 

the presentation currency are translated into the presentation currency as follows: 

Assets and liabilities for each balance sheet presented are translated at the closing 

rate at the date of that balance sheet; 

Income and expenses for each income statement are translated at average exchange 

rates (unless this average is not a reasonable approximation of the cumulative effect of 

the rates prevailing on the transaction dates, in which case income and expenses are 

translated at the rate on the dates of the transactions); and 

All resulting exchange differences are recognized as a separate component of equity. 

On consolidation, exchange differences arising from the translation of the net 

investment in foreign operations, and of borrowings and other currency instruments 

designated as hedges of such investments, are taken to shareholders’ equity. When 

a foreign operation is partially disposed of or sold, exchange differences that were 

recorded in other reserves in the statement of net stockholders’ equity are recognized 

as income from continuing operations in the statement of comprehensive income as 

part of the gain or loss on sale. 

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are 

treated as assets and liabilities of the foreign entity and translated at the closing rate. 

2.5 Associates - 

Associates are all entities over which the group has significant influence but not control, 

generally accompanying a shareholding of between 20% and 50% of the voting rights. 

Investments in associates are accounted for using the equity method of accounting 

and are initially recognized at cost. 

The group’s share of its associates’ post-acquisition profits or losses is recognized in 

the statement of comprehensive income, and its share of post-acquisition movements 

in reserves is recognized in reserves. The cumulative post-acquisition movements are 

adjusted against the carrying amount of the investment. When the group’s share of 

losses in an associate equals or exceeds its interest in the associate, including any 

other unsecured receivables, the Group does not recognize further losses, unless it 

has incurred obligations or made payments on behalf of the associate. 

Unrealized gains on transactions between the group and its associates are eliminated 

to the extent of the group’s interest in the associates. Unrealized losses are also 

eliminated unless the transaction provides evidence of an impairment of the asset 

transferred. Accounting policies of associates have been changed where necessary to 

ensure consistency with the policies adopted by the group. Dilution gains and losses 

arising in investments in associates are recognized in the statement of comprehensive 

income. 

2.6 Property, plant and equipment - 

Property, plant and equipment are stated at cost less accumulated depreciation and 

impairment losses, except biological assets which are booked according to IAS 41. 

Historical cost comprises the purchase price and any cost directly attributable to 

bringing the asset into working condition for its intended use. Cost of replacing part 

of the plant and equipment is recognized in the carrying amount of the plant and 

equipment if the recognition criteria are satisfied. All other repair and maintenance 

costs are recognized in the statement of comprehensive income as incurred. The 

present value of the expected cost for the decommissioning of the asset after its 

use is included in the cost of the respective asset if the recognition criteria for a 

provision are met. Borrowing costs that are directly attributable to the acquisition, 

construction or production of a qualifying asset are capitalized as part of the cost 

of that asset. 

Subsequent costs are included in the asset’s carrying amount or recognized as a 

separate asset, as appropriate, only when it is probable that future economic benefits 

associated with the item will flow to the group and the cost of the item can be measured 

reliably. The carrying amount of the replaced part is derecognized. All other repairs 

and maintenance are charged to the statement of comprehensive income during the 

financial period in which they are incurred. 

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The cost less the residual value of each item of property, plant and equipment is 

depreciated over its useful life. 

Depreciation is calculated on a straight-line basis over the estimated useful life of 

individual assets, as follows: 

Years 

Buildings 33 

Irrigation structure 70 

Plant and equipment Between 5 and 10 

Furniture and fixtures 10 

Other equipment Between 3 and 10 

Vehicles 5 

Depreciation commences when assets are available for use. Land is not depreciated. 

The assets residual values, remaining useful lives and methods of depreciation are 

reviewed at each financial year end and are adjusted prospectively if appropriate. 

An asset’s carrying amount is written-down immediately to its recoverable amount, if 

the asset’s carrying amount is greater than its estimated recoverable amount. 

Gains and losses on disposals are determined by comparing the proceeds with the 

carrying amount and are recognized within ‘Other (losses)/gains – net’ in the statement 

of comprehensive income. 

2.7 Intangible assets - 

a) Goodwill - 

Goodwill is initially measured at cost being the excess of the cost of the business 

combination over the Group’s share of the net fair value of the acquirer’s identifiable 

assets, liabilities and contingent liabilities at the date of acquisition. Goodwill on 

acquisition of subsidiaries is included in ‘intangible assets’. 

After initial recognition, goodwill is recognized at cost less any accumulated impairment 

losses. 

Goodwill is tested for impairment annually (as at 31 December) and when circumstances 

indicate that the carrying value may be impaired. For the purpose of impairment testing, 

goodwill acquired in a business combination is, from the acquisition date, allocated to 

each of the Group’s cash-generating units that are expected to benefit from the synergies 

of the combination, irrespective of whether other assets or liabilities of the acquire 

are assigned to those units. Impairment is determined for goodwill by assessing the 

recoverable amount of each cash-generating unit (or group of cash-generating units) to 

which the goodwill relates. Where the recoverable amount of the cash-generating unit is 

less than their carrying amount an impairment loss is recognized. 

Where goodwill forms part of a cash-generating unit and part of the operation within 

that unit is disposed of, the goodwill associated with the operation disposed of is 

included in the carrying amount of the operation when determining the gain or loss 

on disposal of the operation. Goodwill disposed of in this circumstance is measured 

based on the relative values of the operation disposed of and the portion of the cashgenerating 

unit retained. 

b) Customer relationships - 

Customer relationships are initially recognized at fair value at the date of acquisition in a 

business combination and subsequently at cost less amortization over their estimated 

useful lives of between 2 to 20 years. 

The intangible asset is valued using an income approach and the “multi-period excess 

earnings” method. The excess of earnings is defined as the difference between aftertax 

operating cash flow generated by the existing customers at the acquisition date; 

and, the cost contribution required by the remaining assets (tangible and intangible) for 

maintaining the relationships with the customer. The application of the “multi-period 

excess earnings” requires the following estimations: 

Future sales attributable to the existing customer list at the acquisition date, excluding 

any sales from other customers without an established and clear relationship. The 

sales forecast for each customer, or customer category, takes into consideration 

organic sales growth as well as the deterioration rate for this customer list. 

Calculation of operating margins (EBIT), taking into account only costs related to the 

existing customer base at the acquisition date. 

c) Computer software - 

Acquired computer software licenses are capitalized on the basis of the costs incurred 

to acquire and bring to use the specific software. These costs are amortized over their 

estimated useful lives (four years). 

Costs associated with developing or maintaining computer software programmers are 

recognized as an expense as incurred. Costs that are directly associated with the 

development of identifiable and unique software products controlled by the Group, 

and that will probably generate economic benefits exceeding costs beyond one year, 

are recognized as intangible assets. Costs include the employee costs incurred as a 

result of developing software and an appropriate portion of relevant overheads. 

2.8 Impairment of non-financial assets - 

Assets that have an indefinite useful life are not subject to amortization and are tested 

annually for impairment. Assets that are subject to depreciation or amortization are 

reviewed for impairment whenever events or changes in circumstances indicate that the 

carrying amount may not be recoverable. At each reporting date the Group assesses 

if there are indicators of impairment and if so, or if an impairment test for an asset is 

required, an assessment is undertaken to determine whether the carrying values are in 

excess of their recoverable amount. Such review is undertaken on an asset by asset 

basis, except where such assets do not generate cash flows independent of other 

assets, in which case the assessment is undertaken at cash-generating unit level. If 

the carrying amount of an asset or of a cash-generating unit exceeds its recoverable 

amount, the asset is considered to be impaired and is written down to its recoverable 

amount. Impairment losses are recognized in the statement of comprehensive income. 

The recoverable amount of assets is the greater of their value in use or fair value 

less costs to sell. Fair value is based on an estimate of the amount that the Group 

may obtain in a sale transaction on an arm’s length basis. In assessing value in use, 

the estimated future cash flows are discounted to their present value using a pre-tax 

discount rate that reflects current market assessments of the time value of money and 

the risks specific to the asset. For an asset that does not generate cash inflows largely 

independent of those from other assets, the recoverable amount is determined for the 

cash -generating unit to which the asset belongs. The Group’s cash-generating units 

are the smallest identifiable groups of assets that generate cash inflows that are largely 

independent of the cash inflows from other assets or groups of assets. 

For assets excluding goodwill, an impairment loss is reversed if there has been a 

change in the estimates used to determine the recoverable amount. An impairment 

loss is reversed only to the extent that the asset’s carrying amount does not exceed the 

carrying amount that would have been determined, net of depreciation or amortization, 

if no impairment loss had been recognized in prior periods. Impairment losses relating 

to goodwill cannot be reversed in future periods. 

2.9 Financial assets - 

Classification - 

The Group classifies its financial assets in the following categories: at fair value through 

profit and loss, loans and receivables, held-to-maturity and available-for-sale. The 

classification depends on the purpose for which the financial assets were acquired. 

Management determines the classification of its financial assets at initial recognition. 

As of December 31, 2009 and 2008 the Group only holds financial assets in the 

category of loans and receivables. 

Loans and receivables - 

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Loans and receivables are non-derivative financial assets with fixed or determinable 

payments that are not quoted in an active market and for which there is no 

intention of trading the receivable. They are included in current assets, except 

for maturities greater than 12 months after the end of the reporting period. These 

are classified as non-current assets. The Group’s loans and receivables comprise 

‘trade and other receivables’ and cash and cash equivalents in the balance sheet 

(Notes 10 and 11). 

The criteria that the Group uses to determine that there is objective evidence of an 

impairment loss include: 

- Significant financial difficulty of the issuer or obligor; 

- A breach of contract, such as a default or delinquency in interest or principal 

payments; 

basis of an instrument’s fair value using an observable market price. 

If, in a subsequent period, the amount of the impairment loss decreases and the 

decrease can be related objectively to an event occurring after the impairment was 

recognized (such as an improvement in the debtor’s credit rating), the reversal of the 

previously recognized impairment loss is recognized in the consolidated statement of 

comprehensive income. 

of changes in equity in other reserves. The fair value of a hedging derivative is classified 

as a non current asset or liability when the remaining maturity of the hedged item is 

more than 12 months, and as a current asset or liability when the remaining maturity of 

the hedged item is less than 12 months. Trading derivatives are classified as a current 

asset or liability. 

Derivatives and Hedge transactions applicable to the Group are cash flow hedges. 

Recognition and measurement - 

Regular purchases and sales of financial assets are recognized on the trade-date – 

the date on which the group commits to purchase or sell the asset. Investments are 

initially recognized at fair value plus transaction costs for all financial assets not carried 

at fair value through profit or loss. Financial assets are derecognized when the rights 

to receive cash flows from the investments have expired or have been transferred 

and the group has transferred substantially all risks and rewards of ownership. Loans 

and receivables are subsequently carried at amortized cost using the effective interest 

method. 

Offsetting financial instruments - 

Financial assets and liabilities are offset and the net amount reported in the balance 

sheet when there is a legally enforceable right to offset the recognized amounts and 

there is an intention to settle on a net basis, or realize the asset and settle the liability 

simultaneously. 

2.10 Impairment of financial assets - 

The Group assesses at the end of each reporting period whether there is objective 

evidence that a financial asset or group of financial assets is impaired. A financial 

asset or a group of financial assets is impaired and impairment losses are incurred 

only if there is objective evidence of impairment as a result of one or more events that 

occurred after the initial recognition of the asset (a ‘loss event’) and that loss event 

(or events) has an impact on the estimated future cash flows of the financial asset or 

group of financial assets that can be reliably estimated. 

- The Group, for economic or legal reasons relating to the borrower’s financial 

difficulty, granting to the borrower a concession that the lender would not otherwise 

consider; 

- It becomes probable that the borrower will enter bankruptcy or other financial 

reorganization; 

- The disappearance of an active market for that financial asset because of financial 

difficulties; or 

- Observable data indicating that there is a measurable decrease in the estimated 

future cash flows from a portfolio of financial assets since the initial recognition of 

those assets, although the decrease cannot yet be identified with the individual 

financial assets in the portfolio, including: i) adverse changes in the payment status 

of borrowers in the portfolio; and ii) national or local economic conditions that 

correlate with defaults on the assets in the portfolio. 

The Group first assesses whether objective evidence of impairment exists. 

The amount of the loss is measured as the difference between the asset’s carrying 

amount and the present value of estimated future cash flows (excluding future credit 

losses that have not been incurred) discounted at the financial asset’s original effective 

interest rate. The asset’s carrying amount of the asset is reduced and the amount of 

the loss is recognized in the consolidated statement of comprehensive income. If a 

loan or held-to-maturity investment has a variable interest rate, the discount rate for 

measuring any impairment loss is the current effective interest rate determined under 

the contract. As a practical expedient, the Group may measure impairment on the 

Impairment testing of trade receivables is described in Note 2.14). 

2.11 Derivatives - 

Derivatives are initially recognized at fair value on the date a derivative contract is 

entered into and are subsequently re-measured at their fair value at each balance 

sheet date. 

The method of recognizing the resulting gain or loss depends on whether the derivative 

is designated as a hedging instrument, and if so, the nature of the item being hedged. 

The group designates certain derivatives as either: 

a) Hedges on the fair value of recognized assets or liabilities or a firm commitment (fair 

value hedge); 

b) Hedges on cash flow a particular risk associated with a recognized asset or liability 

or a highly probable forecast transaction (cash flow hedge); or 

c) Hedges of a net investment in a foreign operation (net investment hedge). 

The Group documents at inception of the transaction the relationship between hedging 

instruments and hedged items, as well as the risk management objectives and 

strategy for undertaking various hedging transactions. The Group also documents 

its assessment, both at hedge inception and on an ongoing basis, of whether the 

derivatives that are used in hedging transactions are highly effective in offsetting 

changes in fair values or cash flows of hedged items. 

Derivative instruments used for hedge purposes are disclosed in Note 3.1, a), i). 

Movements on the hedging reserve in equity are shown in the consolidated statement 

Cash flow hedge - 

The effective portion of changes in the fair value of derivatives that are designated 

and qualify as cash flow hedges is recognized in other comprehensive income. The 

gain or loss relating to the ineffective portion is recognized immediately in continuing 

operations as ‘other gains/(losses) -net’ in the statement comprehensive income. 

Amounts accumulated in equity are reclassified to continuing operations profit or loss 

in the periods when the hedged item affects profit or loss (for example, when the 

forecast sale that is hedged takes place). The gain or loss relating to the effective 

portion of interest rate swaps hedging variable rate borrowings is recognized in the 

statement comprehensive income within ‘finance costs’. The gain or loss relating to the 

ineffective portion is recognized in the statement comprehensive income within ‘other 

gains/(losses) - net’. However, when the forecast transaction that is hedged results 

in the recognition of a non-financial asset (for example, inventory or fixed assets), 

the gains and losses previously deferred in equity are transferred from equity and 

included in the initial measurement of the cost of the asset. The deferred amounts are 

ultimately recognized in cost of goods sold in the case of inventory or in depreciation 

in the case of fixed assets. 

When a hedging instrument expires or is sold, or when a hedge no longer meets the 

criteria for hedge accounting, any cumulative gain or loss existing in equity at that 

time remains in equity and is recognized when the forecast transaction is ultimately 

recognized in the statement comprehensive income. When a forecast transaction is 

no longer expected to occur, the cumulative gain or loss that was reported in equity is 

immediately transferred to the statement comprehensive income within ‘other gains/ 

(losses) - net’. 

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2.12 Biological assets - 

Biological assets of asparagus, avocados, mangoes, artichokes, pepper, grapes and 

shrimp are stated at their fair value less point of sale costs. Land and related facilities 

are accounted for under property, plant and equipment. 

Fair value is determined using the present value method at current conditions for 

asparagus, avocados, mangoes, artichokes, grapes, pepper and shrimp. Tangerines 

are stated at cost. Changes in fair value are recognized in income in the period in 

which they arise. 

For the present value method, assumptions are used to estimate the harvest volumes, 

cost per ton, and depletion. Cost of delivery includes all costs associated with 

getting the harvested agricultural and shrimp produce to the market, being harvesting 

and allocated fixed overheads. Future cash flows are discounted using the pre-tax 

weighted average cost of capital. The net change in the fair value of biological assets 

as of the date of the balance sheet is recognized in the statement of comprehensive 

income. 

2.13 Inventories - 

Inventories are valued at the lower of average cost and net realizable value. 

The cost of biological products is determined as the fair value less estimated point of 

sale costs at the time of harvest. 

The net realizable value is the estimated sale price in the ordinary course of business, 

less estimated costs to place inventories in selling condition and commercialization 

and distribution expenses. 

The cost of inventories may not be recovered if : i) those inventories are damaged or 

become wholly or partially obsolete; and ii) their selling prices decline or the estimated 

necessary costs to be incurred to make the sale increase. In such circumstances, 

inventories are written down to their net realizable value. The Group determines the 

provision for obsolescence as follows: 

Fresh and frozen products 

Preserved products 

100% of cost at expiration 

50% of cost after 2 years 

100% of cost at expiration 

The provision is estimated on an item by item basis or for groups of items with similar 

characteristics (same crop, market and other characteristics). 

2.14 Trade receivables - 

Current trade receivables are recognized initially at fair value and subsequently remeasured 

at amortized cost using the effective interest method, less any provision for 

impairment. 

A provision for impairment of trade receivables is estimated when there is objective 

evidence that the Group will not be able to collect all amounts due according to the 

original terms of the invoice. The amount of the provision is the difference between the 

carrying amount and the present value of the recoverable amounts and this difference 

is recognized in the statement of comprehensive income. Bad debts are written off 

when they are assessed as uncollectible. 

2.15 Cash and cash equivalents - 

For the purposes of the statement of cash flow, cash and cash equivalents comprise 

cash in hand, short-term deposits held with banks with an original maturity of three 

months or less net of bank overdrafts. Bank overdrafts are shown within borrowings in 

current liabilities on the balance sheet. 

2.16 Share capital - 

Ordinary shares are classified as equity. Any excess over the par value of issued 

shares is classified as share premium. 

Incremental costs directly attributable to the issue of new shares or options are shown 

in equity as a deduction, net of tax, from the proceeds. 

2.17 Share warrants - 

Share warrants were measured at fair value at the acquisition date and were part of the 

acquisition cost of the Group on October 17, 2007. At the date in which the warrants 

expire, fair value is transferred to retained earnings. 

2.18 Trade payables - 

Trade payables are obligations to pay for goods or services that have been acquired 

in the ordinary course of business from suppliers. Accounts payable are classified as 

current liabilities if payment is due within one year or less (or in the normal operating 

cycle of the business if longer). If not, they are presented as non-current liabilities. 

Trade payables are recognized initially at fair value and subsequently measured at 

amortized cost using the effective interest method when the effect of cost of money is 

important; otherwise these accounts are subsequently measured at their face value. 

2.19 Borrowings - 

Borrowings are recognized initially at fair value, net of transaction costs incurred. 

Borrowings are subsequently stated at amortized cost. Any difference between the 

proceeds (net of transaction costs) and the redemption value is recognized in the 

income statement over the period of the borrowing using the effective interest method. 

Fees paid on the establishment of loan facilities are recognized as transaction costs of the 

loan to the extent that it is probable that some or all of the facility will be drawn down. In this 

case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that 

it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment 

for liquidity services and amortized over the period of the facility to which it relates. 

Borrowings are classified as current liabilities unless the Group has an unconditional right 

to defer settlement of the liability for at least 12 months after the balance sheet date. 

2.20 Leases - 

The determination of whether an arrangement is or contains a lease is based on 

the substance of the arrangement at inception date: whether the fulfillment of the 

arrangement is dependent on the use of a specific asset or assets or the arrangement 

conveys a right to use the asset. 

Finance leases that transfer to the Group substantially all risks and benefits incidental 

to ownership of the leased items are capitalized at the inception of the lease at the 

fair value of the leased property, or if lower, at the present value of the minimum 

lease payments. Finance lease payments are apportioned between finance charges 

and reduction in the lease liability so as to achieve a constant rate of interest on the 

remaining balance of the liability. Finance costs are recognized in the statement of 

comprehensive income. Capitalized leased assets are depreciated over the shorter of 

their estimated useful life and the lease term, if there is no reasonable certainty that the 

Group will obtain ownership at the end of the lease term. 

Leases in which a significant portion of the risks and rewards of ownership are retained 

by the lessor are classified as operating leases. Payments made under operating 

leases are charged to the statement of comprehensive income on a straight line basis 

over the period of the lease. 

2.21 Current and deferred income tax - 

The tax expense for the period comprises current and deferred tax. Tax is recognized in 

the income statement, except to the extent that it relates to items recognized in other 

comprehensive income or directly in equity. In this case the tax is also recognized in 

other comprehensive income or directly in equity, respectively. 

The current income tax charge is calculated on the basis of the tax laws enacted or 

substantively enacted at the balance sheet date in the countries where the Company’s 

subsidiaries operate and generate taxable income. Management periodically 

evaluates positions taken in tax returns with respect to situations in which 

applicable tax regulation is subject to interpretation. It establishes provisions where 

appropriate on the basis of amounts expected to be paid to the tax authorities. 

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Deferred income tax is recognized, using the liability method, on temporary 

differences arising between the tax bases of assets and liabilities and their 

carrying amounts in the consolidated financial statements. However, the deferred 

income tax is not accounted for if it arises from initial recognition of an asset or 

liability in a transaction other than a business combination that at the time of the 

transaction affects either accounting nor taxable profit or loss. Deferred income tax 

is determined using tax rates (and laws) that have been enacted or substantially 

enacted by the balance sheet date and are expected to apply when the related 

deferred income tax asset is realized or the deferred income tax liability is settled. 

Deferred income tax assets are recognized only to the extent that it is probable 

that future taxable profit will be available against which the temporary differences 

can be utilized. 

Deferred income tax is provided on temporary differences arising on investments 

in subsidiaries and associates, except where the timing of the reversal of the 

temporary difference is controlled by the Group and it is probable that the temporary 

difference will not reverse in the foreseeable future. 

Deferred income tax assets and deferred income tax liabilities are offset, if a legally 

enforceable right exists to set off current tax assets against current income tax 

liabilities and the deferred income taxes relate to the same taxable entity and the 

same taxation authority. 

2.22 Share-based payments - 

The Group operates a number of equity-settled share-based compensation plans. 

The cost of equity settled transactions is measured by reference to the fair value of 

the equity instruments at the date on which they are granted using the Black and 

Scholes - Merton model. The cost, together with the corresponding increase in 

equity, is recognized on a straight-line basis over the vesting period in which the 

performance and/ or service conditions are fulfilled. At each balance sheet date, the 

Group revises its estimates of the number of options that are expected to vest and 

recognizes the change in cost if any, in the income statement, with a corresponding 

adjustment to equity. 

2.23 Provisions - 

Provisions are recognized when the Group has a present obligation (legal or 

constructive) as a result of a past event, it is probable that an outflow of resources will 

be required to settle the obligation and a reliable estimate can be made of the amount 

of the obligation. If the effect of the time value of money is material, provisions are 

determined by discounting the expected future cash flows at a pre tax rate that reflects 

current market assessments of the time value of money and, where appropriate, the 

risks specific to the liability. Where discounting is used, the increase in the provision 

due to the passage of time is recognized as a financial expense. 

2.24 Employee benefits 

Worker’s profit sharing and other employee benefits - 

In accordance with Peruvian Legislation the Group is required to provide for worker’s 

profit sharing equivalent to 10% of taxable income in Peru of each year. This amount 

is charged to the statement of comprehensive income (included in cost of sales, 

administrative expenses and selling expenses) and is deductible for income tax 

purposes. 

The workers’ profit sharing liability is presented in Other payables in the balance sheet. 

The liability is computed following the criteria of IAS 12 - Income Taxes using the balance 

sheet liability method recognizing the effects of temporary differences between asset 

and liability balances for accounting purposes and those determined for income tax 

purposes. The liability is measured using the workers´ profit sharing rates expected to 

be applied to the taxable income in the years in which these differences are recovered 

or eliminated. Effects corresponding to changes in workers` profit sharing rates are 

recognized in the results of the year in which the change is known. 

The Group has no pension or retirement benefit schemes. 

2.25 Revenue recognition - 

Revenue comprises the fair value of the consideration received or receivable for the 

sale of goods and services in the ordinary course of the Group activities. Revenue is 

shown net of value-added tax, returns, rebates and discounts and after eliminating 

sales within the Group. 

Revenue is recognized to the extent that it is probable that the economic benefits will 

flow to the Group and the revenue can be reliably measured. The following specific 

recognition criteria must also be met before revenue is recognized: 

a) Sale of goods - 

Sales of goods are recognized when all risks and rewards of ownership have been 

transferred to the buyer, usually on delivery of the goods. Sales of goods comprise: 

Exports of fresh products. This mainly includes fresh products of asparagus, avocado 

and mango. Some of these exports are invoiced at a fixed price while others on a 

preliminary liquidation basis (provisionally priced) which is determined on current 

market prices at the date of issuance of the export invoice. In the case of sales on 

a preliminary liquidation basis, an adjustment to the provisional price is made based 

on current market prices at the date agreed with the customer, usually within a period 

ranging from 7 to 30 days after the export delivery. The price adjustment arrangement 

is an embedded derivative which is separated from the sales contract at each reporting 

date. The value of the provisionally priced fresh products is re-measured using the 

forward selling price for the respective quotational period agreed with the customer 

until this quotational period ends. The selling price of fresh products can be measured 

reliably as these products are actively traded on international markets. The change in 

value of provisionally priced contracts is recorded as an adjustment to revenue and to 

trade receivables. 

Exports of preserved products. Revenue is recognized when export delivery conditions 

are met. 

Export of frozen products. Revenue is recognized when export delivery conditions are met. 

Domestic sales Revenue is recognized on delivery. 

b) Interest income - 

Revenue is recognized as interest accrues using the effective interest method. 

2.26 Costs and expenses - 

The cost of sales corresponds to the cost of production of goods sold, and is 

recorded simultaneously with the recognition of revenue. Other costs and expenses 

are recognized on an accrual basis and recorded in the periods to which they are 

related. 

2.27 Dividend distribution - 

Dividend distribution to the Group’s shareholders is recognized as a liability in the 

consolidated financial statements in the period in which the dividends are approved 

by the shareholders. 

2.28 Contingencies - 

Contingent liabilities are not recognized in the financial statements and are disclosed 

in notes to the financial statements unless their occurrence is estimated as remote. 

Contingent assets are not recognized in the financial statements and are disclosed 

only if their realization is assessed as probable. 

2.29 Segment Reporting - 

Operating segments are reported in a manner consistent with the internal reporting 

provided to the chief operating decision-maker. The chief operating decision-maker, 

who is responsible for allocating resources and assessing performance of the operating 

segments, has been identified as the Board of Directors that makes strategic decisions. 

3 RISK MANAGEMENT 

3.1 Financial risk factors 

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The Group’s activities expose it to a variety of financial risks: market risk (including 

currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), 

credit risk and liquidity risk. 

The Group’s senior management and the Board of Directors oversee the management 

of these risks and implement a risk management program aiming at reducing to a 

minimum any potential adverse effect on the Group’s financial performance. 

a) Market and operational risks 

Almost all of the Group’s products are sold in the international market. A further 

economic slowdown in the key markets may cause lower sales volumes and prices, 

and losses on trade receivables. 

The financial position and future development of the Group will depend significantly on 

the sales prices of its fruit and vegetables produce. The Group produces fresh, frozen 

and preserved products. Fresh products tend to be more profitable, followed by frozen 

products and finally preserved goods. However the complexity of production and the 

distribution logistics are greater in the case of fresh and frozen products compared to 

preserved goods. In this way there is an inversely proportional relationship between 

profitability and commercial complexity of the product type. 

Fresh products, because of their very nature, have a much quicker rotation and almost 

no inventory of finished products. Preserved products may be stored for up to 5 years 

and this means that in the distribution chain there are times of very high or very low 

inventories that have a significant impact on prices. 

Natural phenomena such as the cold or hot ocean currents of “El Niño” and “La Niña”, 

present a threat to farming during half of the year. 

“La Niña” generally means that the winter is colder than usual and this has a positive or 

negative repercussion on our activities according to the crop. For example, in the case 

of avocado, the cold weather reduces the rate at which the fruit grows and it reaches 

its period for harvesting at a lower weight per fruit than usual. In the case of asparagus, 

however, although growth is slow during the period of the cold current, the plants that 

are maturing and will be harvested at the end of the year have volumes well in excess 

of the average. 

“El Niño”, which is usually predictable some months in advance, increases the 

temperature in both summer and winter. This phenomenon benefits the avocado 

plant, producing a fruit of greater weight but on the other hand it reduces the harvest 

levels of asparagus in the months following warmer weather. 

i) Foreign exchange risk - 

The Group buys and sells its products and services and obtains funding for its working 

capital and investments mainly in its functional currency. A minor proportion of the 

Group’s costs are incurred in Nuevo Sol and therefore the financial results are not 

significantly affected by exchange rate fluctuations between the US Dollar and the 

Nuevo Sol. However, on significant transactions management evaluates and decides 

the use of economically hedge contracts to hedge any possible risk of adverse changes 

in the foreign currency rate that will affect the cash outflows. 

As of December 31, 2009 and 2008 the Group had the following assets and liabilities 

in Nuevo Sol (PEN) and Euros: 

2009 Total 2008 Total 

PEN000 €000 USD000 PEN000 €000 USD000 

Assets - 

Available funds 2,255 1,103 2,360 1,170 1,846 (2,930) 

Accounts receivable 28,177 6,966 (19,729) 38,513 8,569 (24,137) 

30,432 8,069 (22,089) 39,683 10,415 (27,067) 

Liabilities - 

Bank overdrafts and loans 491 - 170 864 74 (378) 

Accounts payable 51,705 1,500 (20,040) 30,9851,912 (12,517) 

52,196 1,500 (20,210) 31,849 1,986 (12,895) 

(Liability) asset position, net (21,764) 6,569 (1,879) 7,834 8,429 (14,172) 

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The following table demonstrates the sensitivity to a reasonably possible change in 

Nuevo Sol exchange rate and Euro exchange rate for twelve months, with all other 

variables held constant, on the Group’s profit before tax: 

increase/ Effect on increase/ Effect on 

decrease in profit decrease in profit 

PEN rate before tax € rate before tax 

usd000 

usd000 

2009 + 4% ( 93) + 4% 421 

- 4% ( 100) - 4% ( 421) 

2008 + 4% ( 96) + 4% 464 

- 4% 104 - 4% ( 465) 

Camposol S.A. entered into a derivative transaction (Cross Currency SWAP) with 

Credit Suisse with an original maturity as of to hedge its exposure to the risk of adverse 

changes in the foreign currency rate that will affect the cash outflows to settle its 

monthly payroll denominated in Nuevo Sol amounting to PEN 5,993,000. 

In this context the Group defined the hedging relationship as a cash flow hedge. The 

hedging instrument was the Cross Currency Swap, the hedged item corresponded to 

the cash outflows in Nuevo Sol for the settlement of its payroll in the amount of PEN 

5,993,000 (highly probable forecasted transaction) and the risk hedged corresponded 

to the exposure to changes in the foreign exchange rate of Nuevo Sol to U.S Dollar. 

As of December 31, 2008, the fair value of the Cross Currency SWAP represented 

a loss of USD11,093 thousand. On 19 October 2009 Camposol and Credit 

Suisse agreed to unwind the USD/PEN Cross Currency SWAP mentioned above. 

At that date the swap fair value estimated by the Group approximates to zero 

and therefore, the loss recorded as of December 31, 2008 was reversed. As a 

consequence the Group no longer holds any currency hedging instrument. The 

terms agreed did not involve any cost or cash payment to Camposol or Credit 

Suisse. The decision was made in order to reduce the risk of the Group from 

future fluctuation of the derivative market value that might require margin calls 

from its counterparty. 

As of December 31, 2009 and 2008, the effect of the Cross Currency SWAP is shown 

in one line at the consolidated statement of comprehensive income. 

The following table demonstrates the sensitivity to a reasonably possible change in 

Nuevo Sol exchange rate with all other variables held constant on the valuation of the 

cash flow hedge as of December 31, 2008: 

increase/ 

decrease in 

PEN rate 

Effect on 

Valuation 

Hedge 

usd000 

2008 +4% 1,505) 

-4% ( 1,505) 

ii) Interest rate risk - 

Changes in interest rates impact primarily loans and borrowings by changing either 

their fair value (fixed rate debt) or their future cash flows (variable rate debt). 

Since all interest bearing loans and borrowings have a fixed interest rate, the Group is 

not exposed to cash flow interest rate risk. 

Fixed rate borrowings of the Group are renegotiated at market rates on a timely basis, 

in order to reduce the Group´s exposure to fair value interest rate risk. 

b) Credit risk - 

Credit risk is the risk that counterparty will not meet its obligations under a financial 

instrument or customer contract leading to a financial loss. The Group is exposed to 

credit risk on trade and other receivables and deposits with banks. 

The Group places its excess funds with top ranked financial institutions (institutions 

with no history of default and prestigious locally). 

The maximum exposure to credit risk is the carrying amount of accounts receivable 

as shown on the balance sheet. Sales transactions are carried out with a number of 

different counterparties, which mitigates credit risk concentration. 

The Group seeks for external assistance to evaluate the rating of the possible new 

customer. With this information, a credit limit for the customer is set. As of December 

31, 2009, the Group has had commercial relationship longer than 6 months. As of 

December 31, 2009 and 2008, no credit limits had been breached. 

The accounts receivable from a single customer represent 8 per cent of the balance as 

of December 31, 2009 (24 per cent as of December 31, 2008). All new transactions with 

this customer are being executed with letters of credit to mitigate credit risk exposure. 

In addition, the Group has a multimarket credit insurance coverage over the exports 

of fresh and preserved products in an aggregate amount up to USD40 million at 

December 31, 2009 (USD42 million at December 31, 2008). 

c) Liquidity risk - 

The Group has sufficient credit capacity to have access to credit lines with top ranked 

financial institutions (institutions with no history of default and prestigious locally) under 

market terms. In addition, the Group develops new bank relationships in order to have 

adequate funding available all the time. However, with the current world financial crisis 

there is risk that banks may revise the terms of the lines of credit. 

The table below analyses the Group’s financial liabilities into relevant maturity groupings 

based on the remaining period at the balance sheet to the contractual maturity date: 

Total 

2009 - 

Between 1 Between 2 

Within 1 year and 2 years and 5 years 

usd000 usd000 usd000 usd000 

Long - term debt 15,059 21,950 34,028 71,037 

Trade payables 20,262 - - 20,262 

Other payables 6,614 - - 6,614 

Bank loans 9,285 - - 9,285 

2008 - 

51,220 21,950 34,028 107,198 

Long - term debt 15,868 22,042 44,317 82,227 

Trade payables 25,126 - - 25,126 

Other payables 5,730 - - 5,730 

Bank loans 16,456 - - 16,456 

63,180 22,042 44,317 129,539 

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3.2 Capital risk management 

The Group objectives when managing capital are to safeguard the Group’s ability to 

continue as a going concern and to maintain an optimal capital structure to reduce 

the cost of capital. In order to maintain or adjust the capital structure, the Group may 

adjust the amount of dividends paid to shareholders, return capital to shareholders, 

issue new shares or sell assets to reduce debt. 

The Group monitors capital on the basis of the gearing ratio. This ratio is calculated 

as net debt divided by total capital plus net debt. Net debt is calculated as total 

borrowings, less cash and cash equivalents. Total capital is calculated as equity as 

shown in the consolidated balance sheet, less unrealized gains reserve. 

As of December 31, 2009 and 2008, the Group’s strategy was to maintain the gearing 

ratio in no more than 1. 

The gearing ratios at December 31, 2009 and 2008 were as follows: 


usd000 

usd000 

Bank loans 9,285 16,456 

Long - term debt 56,954 66,354 

Less available funds ( 5,696) ( 5,770) 

Net debt 60,543 77,040 

Equity attributable to owner of the parents 234,417 221,136 

Equity and net debt 294,960 298,176 

Gearing ratio 0.20 0.26 

The decrease in the gearing ratio in 2009 is due to the decrease in the balance of the 

long term debt. 

3.3 Fair value estimation - 

Effective 1 January 2009, the Group adopted the amendment to IFRS 7 for financial 

instruments measured at fair value. The amendment requires to disclose fair value 

measurements by level of fair value measurement hierarchy, as follows: 

Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1). 

Inputs other than quoted prices included within level 1 that are observable for the 

asset or liability, either directly (that is, as prices) or indirectly (that is, derived from 

prices) (level 2). 

Inputs for the asset or liability that are not based on observable market data (that is, 

unobservable inputs) (level 3). 

The following table presents the Group’s liabilities that are measured at fair value at 31 

December 2009: 

level 1 level 2 level 3 Total balance 


Share warrants - 2,050 - 2,050 

Share options - 914 - 914 

- 2,964 - 2,964 

The instrument is included in level 3, since significant inputs are not based on observable 

market data. Specific valuation techniques used to value financial instruments include 

discounted cash flow analysis. 

4 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS 

Critical accounting estimates and assumptions 

The Group makes estimates and assumptions concerning the future. The resulting 

accounting estimates will, by definition, seldom equal the related actual results. 

The estimates and assumptions that have a significant risk of causing a material 

adjustment to the carrying amounts of assets and liabilities within the next financial 

year are discussed below. 

Critical accounting estimates made by management are continually evaluated and 

are based on historical experience and other factors, including expectation of future 

foreseeable events that are believed to be reasonable under the circumstances. 

Management performs sensitivity analyses of the estimates made as a way of 

determining the related error margins. 

The most significant use of judgment is the estimation of the fair value of biological 

assets, including asparagus, avocados, mangoes, artichokes, pepper and shrimp. 

The inputs to the valuation models are derived from observable market data where 

possible, but where observable market data are not available, judgment is required 

to establish fair values. The judgments include considerations of plantation volumes, 

cost per ton, depletion and the discount rate used to estimate the present values. 

The valuation of biological assets is described in more detail in Note 8. Management 

performs sensitivity analyses of the cash flow performed as a way of determining the 

related error margins. 

The estimates and assumptions that have a significant risk of causing a material 

adjustment to the carrying amounts of assets and liabilities within the next financial 

year are addressed below. 

- Determination of functional currency - Note 2.4 

Management has determined that its functional currency is the U.S. dollar based on the 

fact that it is the currency in which the prices of the Group’s products are denominated, 

sales and accounts receivable are stated and collected, and is the currency in which a 

significant portion of the Group’s production costs are incurred and settled. 

- Recognition and determination of useful lives of customer relationships - Note 2.7.b 

At the date of acquisition, the Group valued the customer relationships (trained and 

assembled workforce, customer and distribution relationships) using an income 

approach and the “multi-period excess earnings”, to estimated the accounting value 

that should be recognized as intangible assets. The useful life of this intangible asset 

was determined to be between 2 to 20 years and based on the estimated cash flows to 

be generated in the future. 

Customer relationships are amortized on a straight-line basis over their estimated 

useful live. 

Revenue forecasts for intangible assets represent management’s best estimates and 

are based on actual revenues earned for similar assets and such forecasts are reviewed 

by management at last annually. Ultimate responsibilities for revenue forecasts rest with 

the Group’s Management. The main factors which could influence the Group’s revenue 

forecasts and ultimately the amortization of intangibles are: growth expectation, future 

financial crisis and political risk. 

If any one of the factors or assumptions, on which the revenue forecasts above are 

based, were to decrease by more than 10%, then the carrying value of the customer 

relationships would decrease by more than US$750,000. 

- Review of asset carrying values and impairment charges - Notes 2.7 and 7 

The Group estimates that the value of its permanent assets will be recovered in the 

normal course of its operations. Its estimate is supported by assumptions regarding 

the international price of its products, world production levels and the estimates of 

future production of the Group. At the date of the financial statements the available 

projections of these variables show trends favorable to the interests of the Group which 

supports the recovery of its permanent assets. Management performs sensitivity 

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analyses of the impairment testings performed on its assets as a way of determining 

the related error margins. 

5 PROPERTY, PLANT AND EQUIPMENT 

- Estimation of deferred income and workers profit sharing - Note 2.21 

Determination of the tax obligations and expenses requires interpretations of the 

applicable tax laws and regulations. The Group receives advice from professional legal 

tax counsel before making any decision on tax matters. Even though Management 

considers its estimates are prudent and appropriate, differences of interpretation may 

arise with the interpretation of norms made by Tax Authorities that may require future 

tax adjustments. The Group recognizes liabilities for situations observed in preliminary 

tax audits based on estimates as to whether the payment of additional taxes is 

required. When the final tax result of these situations is different from the amounts that 

were initially recorded, the differences are charged to the current and deferred income 

tax assets and liabilities in the period in which this fact is determined. 

Opening Closing net book 

balance additions disposals Adjustments Transfers balance value 

usd000 usd000 usd000 usd000 usd000 usd000 usd000 


Cost 

Land 38,654 33 - - - 38,687 

Buildings and other 

constructions 25,803 40 (4,167) (2) 1,845 23,519 

Plant and equipment 42,195 115 (1,920) (1) 5,744 46,133 

Furniture, fixtures and 

other equipment 4,806 124 - (19) 65 4,976 

Vehicles 3,238 39 (51) - 13 3,239 

Construction in progress 11,012 3,523 - (428) (7,667) 6,440 

125,708 3,874 (6,138) (450) - 122,994 

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2008 


Accumulated depreciation 

Opening Closing net book 

balance Additions disposals Adjustments Transfers balance value 

usd000 usd000 usd000 usd000 USD000 usd000 usd000 

Land - - - - - - 38,687 


constructions (672) (878) 244 (55) (65) (1,426) 22,093 

Plant and equipment (3,297) (3,974) 231 - (348) (7,388) 38,745 


other equipment (895) (712) - - 231 (1,376) 3,600 

Vehicles (484) (604) 29 - 182 (877) 2,362 

Construction in progress - - - - - - 6,440 

Total (5,348) (6,168) 504 (55) - (11,067) 111,927 

Cost 

Land 34,460 3,073 316 805 38,654 


constructions 13,975 125 (53) (130) 11,886 25,803 

Plant and equipment 31,926 4,302 (160) (44) 6,171 42,195 


other equipment 2,458 946 (2) (10) 1,414 4,806 

Vehicles 1,619 1,187 (247) (18) 697 3,238 

Construction in progress 10,298 21,349 - 338 20,973 11,012 

Total 94,736 30,982 (462) 452 - 125,708 

Accumulated depreciation 

Land - - - - - - 38,654 


constructions (119) (595) 52 (10) - ( 672) 25,131 

Plant and equipment (317) (3,104) 31 93 - ( 3,297) 38,898 


other equipment (109) (772) 1 (15) - ( 895) 3,911 

Vehicles (134) (639) 182 107 - ( 484) 2,754 

Construction in progress - - - - - - 11,012 

Total (679) (5,110) 266 175 - (5,348) 120,360 

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a) Camposol did not made any important acquisition of fixed assets in 2009. 

Acquisitions of 2008 include the Project Yakuy - Minka (7A) for USD17,4 million which 

consists of land and land preparation, an irrigation channel and irrigation equipment 

for crops on 3,654 Area. The extension of the structure constructed for the water 

transfer was of 7.4 kilometers. The total cost of the irrigation channel was USD10.1 

million and its useful life was estimated at 70 years, with nil residual value. 

b) As of December 31, 2009 the balance of construction in progress comprises mainly 

complementary works to main 7A Project of USD4.5 million. 

c) As of December 31, 2009, property, plant and equipment include fixed assets 

acquired under finance leases for USD5,275,000 (USD5,465,000 in 2008) net of their 

corresponding accumulated depreciation, which are secured on the same assets. 


usd000 

usd000 

Cost of sales (Note 22) 5,242 4,954 

Administrative expenses (Note 23) 900 144 

Selling expenses (Note 24) 26 12 

6,168 5,110 

Bank borrowings are secured by fixed assets the value of which amounts to USD70 

million in 2009 and 2008. 

The summarized financial information for this associated company for the year as a 

whole: 


usd000 

usd000 

Total assets 2,945 2,219 

Total liabilities 1,892 1,534 

Total revenue 4,300 3,041 

Gain (loss) for the year 370 ( 197) 

7 INTANGIBLE ASSETS 

The movement of the cost and the accumulated amortization of intangibles assets is 

a follows: 


accumulated 

Cost amortization net 

usd000 usd000 usd000 

Goodwill 16,279 - 16,279 

Customer relationships 9,566 (2,257) 7,309 

d) As of December 31, 2009 and 2008, property, plant and equipment is insured up 

to a value of USD40 million. Management believes that this policy is consistent with 

international practices in the industry and takes into account the nature of the assets 

in estimating the risk of eventual losses. 

e) As of December 31, 2009 this account includes fixed assets for the production of 

artichokes with a net book value of USD2,992,000. The Group decided to discontinue 

the production of artichokes. The Group leased all of its artichoke producing land. 

Approximately 30% of the relevant machinery and equipment for this line was 

transferred in 2009 to the production of preserved pepper, preserved asparagus, and 

frozen plant and 70% of the machinery will be sold to third parties. As of December 

31, 2009, the realization value was estimated to be higher than book value. 

f) The total depreciation for the years 2009 and 2008 includes USD1,454,000 that 

corresponds to the depreciation of the fair value of acquired assets in business 

combination (see Note 7). 

6 INVESTMENTS IN ASSOCIATED COMPANIES 

% share 

in the capital stock 2009 2008 

% usd000 usd000 

Empacadora de Frutos Tropicales S.A.C. 40.0 422 274 

On September 30, 2006 Camposol S.A. participated in the incorporation of 

Empacadora de Frutos Tropicales S.A.C (Empafrut), a Peruvian company engaged in 

the processing and commercialization of fresh fruits products, mainly mangoes. The 

cost of the investment was USD600,000. 

Total equity 1,050 685 

Software 3,382 (384) 2,998 

2008 

29,227 (2,641) 26,586 

Goodwill 16,279 - 16,279 

Customer relationships 9,566 (1,340) 8,226 

Software 3,174 (99) 3,075 

29,019 (1,439) 27,580 

Amortization of USD917,000 (USD1,109,000 for 2008) is included in selling expenses 

and USD285,000 (USD99,000 for 2008) in administrative expenses in the consolidated 

statement of comprehensive income. 

Goodwill - 

g) The allocation of depreciation charge is a s follows: 

The Group’s share in the earnings of this company is USD148,000 (losses of USD79,000 

in 2008). 

On October 17, 2007, Camposol AS acquired 100% of the share capital of Siboure 

Holding Inc., parent of Camposol S.A.; as a result of this operation the Group 

recognized a goodwill. 

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Goodwill is the difference between the cost of the business combination and the 

Group’s share of the net fair values of the acquiree’s identifiable assets, liabilities 

and contingent liabilities at the date of acquisition. 

The goodwill is attributable mainly to the workforce of the acquired business and 

the systems and processes of the acquired companies which do not meet the 

criteria to be separately recognized in the financial statements as per IFRS. 

Impairment tests for goodwill - 

An impairment test for goodwill was performed by comparing the value in use of 

the assets acquired and their carrying value (including goodwill). To estimate the 

value in use, the Group has used the following assumptions: 

Projections are based on the Group’s forecasts approved by management 

A 10-year term of cash flows has been used in the calculation, as the forecasted 

cash flows can be based on reasonable and reliable assumptions. 

Projections do not include cash inflows or outflows from financing activities or from 

income tax payments. 

Future cash flows are pre-tax and are estimated at current values (no effect due to 

inflation has been considered), thus, the discount rate is a pre-tax real rate. 

The discount rate is deemed to be the `Group’s WACC of 10,7% as this rate is 

affected by the specific industry and market risks, therefore it represents market 

current conditions. 

Goodwill is allocated to a single cash-generating unit. The results of reportable 

segments do not show significant dispersion; therefore no significant difference 

would arise from performing the calculation at a lower level of cash-generating 

units. 

Cash flows projections encompass the entire cash flows expected to be generated 

in the normal course of business, including the cash flows that relate to biological 

assets. All non-current assets have been grouped as a single asset. 

The fair value of the discount in share premium is calculated as the difference 

between share premium paid by the investors and share premium paid by the 

founding shareholder. The fair value of warrants and options was estimated by 

external professional values. 

The recoverable amount of a CGU is determined based on value-in-use calculations. 

These calculations use pre-tax cash flow projections based on financial budgets 

approved by management covering a ten-year period. Cash flows beyond the 

five-year period are extrapolated using the estimated growth rates stated below. 

The growth rate does not exceed the long-term average growth rate for a similar 

business in which the CGU operates. 

The key assumptions used for value-in-use calculations in 2009 and 2008 are as 

follows: 


% % 

Gross margin 29 27 

Growth rate 27 10 

Discount rate 10.7 10.7 

These assumptions have been used for the analysis of each CGU within the operating 

segment. 

Management determined budgeted gross margin based on past performance and its 

expectations of market development. The weighted average growth rates used are 

consistent with the forecasts included in industry reports. The discount rates used are 

pretax and reflect specific risks relating to the relevant operating segment. 

Even if the gross margin and growth rate applied to the discounted cash flows for 2009 

had been amended to 10% and 22% respectively, the Group would not need to 

recognize any goodwill impairment. 

Customer relationships - 

The relationships with customers established over time become a valuable 

intangible for the Group. The loyalty of the customers has had a positive impact 

on sales and profits during the last 10 years of operation of Camposol Group, 

allowing it to have foreseeable growth. 

Predictable commercial relationships generate a set of economic benefits for 

the Group, including increased sales and minimization of the risks of sharp 

fluctuations in sales. Currently, Camposol has a base of 197 customers, 24 of 

which explain 70 per cent of sales (according to 2009 commercial statistics). 

At the date of acquisition, customer relationships were assigned a fair value 

using the income approach and the “multi-period excess earnings” method to 

calculate the excess of earnings attributable to customer relationships during 

their economic life. The excess of earnings is defined as the difference between: 

• After-tax operating cash flow generated by the existing customers at the 

acquisition date; and, 

• Cost contribution required by the remaining assets (tangible and intangible) 

for maintaining the relationships with customer 

The application of the “multi-period excess earnings” requires the following 

estimations: 

• Future sales attributable to the existing customers with an established 

relationship. The sales forecast for each customer, or customer category, 

must take into consideration organic sales growth as well as the deterioration 

rate for this customer list. 

• Calculation of operating margins (EBIT), taking into account only costs 

related to the existing customer base at the acquisition date. 

The useful life of customer relationships is amortized over their estimated useful 

lives which range from 2 to 20 years. 

8 BIOLOGICAL ASSETS 

The Group measures the value of agricultural plants and shrimps using the 

expected cash flows for the production of each of its biological assets. The cash 

flows included in the projections are discounted at the rate of 10.7%. Tangerine 

is stated at cost as a reliable estimate of fair value cannot be made due to the 

fact that is a recent plantation. 

The net effect of the IAS 41 fair value adjustment is USD18,382,000 (USD12,184,000 

in 2008), and is determined as follows: 


usd000 

USD000 

Change in fair value of biological assets 25,485 28,660 

Net cost of permanent plantations 

and maintenance ( 1,456) ( 11,584) 

Adjustment from change in fair value of biological assets 24,029 17,076 

Deferred income tax and workers’ profit sharing ( 5,647) ( 4,192) 

IAS 41 adjustment, net of deferred taxes 18,382 12,884 

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The net cost of permanent plantations and maintenance of farms is as follows: 


usd000 

usd000 

New Plants (6,590) 11,456 

Change products in process (5,066) 737 

Change fair value of harvest product (68) (609) 

Net Cost of permanent plant (1,456) 11,584 

The amortization of permanent plantations at cost for the year 2009 is USD3,443 

thousand (USD1,823 thousand in 2008). 

The main assumptions used to estimate the fair values of the biological assets were 

as follows: 

Asparagus: 

• 61 lots in Agromás, Pur Pur, Mar Verde, Gloria, Agricultor, Aeropuerto, Oasis, San 

José, Sincromax, Terra and Yakuy Minka. 

• Lots have a useful life of 10 years. 

• Each harvest cycle lasts 6 months. 

• Assumes reduction of production in year 2018 due to the “Fenómeno del Niño”. 

Avocados: 

• 48 lots in Frusol, Agromás and Yakuy Minka. 

• Lots have a useful life of 20 years. 

• Every harvest cycle lasts 1 year. 

• Assumes reduction of production in year 2018 due to the “Fenómeno del Niño” 

• Lots have their first harvest after 3 years from planting 

Mangoes: 

• 8 lots in Atypsa, Balfass and Dunas. 

• Parcels have a useful life of 20 years. -Every harvest cycle lasts 1 year. 

• Assumes reduction of production in year 2018 due to the “Fenómeno del Niño”. 

• Lots have their first harvest after 3 years from planting 

Grapes: 

• 2 lots in Agroalgre. 

• The lots have a useful life of 20 years. 

• Each harvest cycle last 1 year. 

Pepper: 

• 6 lots lands from Terra 

• The lots have a useful life of 8 months. 

• Each harvest cycle last 8 months including preparation, maintenance and harvest. 

Shrimps: 

• 48 shrimp farms that cover an area of 252 Area 

• Each has a useful life of 180 days, approximately 25 weeks. 

• Each harvest cycle of shrimps lasts approximately 25 weeks, including preparation, 

maintenance and harvest. 

The movement for the period in the fair value of biological assets is as follows: 


Additions and 

Opening balance Deductions Closing balance 

Estimated 

Estimated 

change change less non 

in market in market final current current 

area value area value area balance portion portion 

usd000 usd000 usd000 usd000 usd000 usd000 usd000 usd000 

Asparagus 2,990 71,611 ( 291) ( 29,225) 2,699 42,386 (7,951) 34,435 

Avocados 1,193 32,585 1,085 42,616 2,278 75,201 (3,084) 72,117 

Mangoes 415 6,051 - 2,387 415 8,438 (1,431) 7,007 

Pepper 266 908 (50) (421) 216 487 (487) - 

Shrimp 245 3,155 126 ( 1,077) 371 2,078 (2,078) - 

Grapes 51 888 49 10,582 100 11,470 - 11,470 

Tangerine 45 150 56 623 101 773 - 773 

5,205 115,348 975 25,485 6,180 140,833 (15,031) 125,802 

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The movement for the year 2009 includes the cost of crops amounting to USD1.4 millions. 

2008 

Additions and 

Opening balance Deductions Closing balance 

Estimated 

Estimated 

change change less non 

in market in market final current current 

area value area value area balance portion portion 


Asparagus 3,318 57,470 (328) 14,141 2,990 71,611 (7,885) 63,726 

Avocados 840 18,370 (353) 14,215 1,193 32,585 (3,234) 29,351 

Mangoes 499 7,798 (84) (1,747) 415 6,051 (204) 5,847 

Pepper 268 871 (2) 37 266 908 (908) - 

Shrimp 224 2,179 21 976 245 3,155 (3,155) - 

Grapes - - 51 888 51 888 - 888 

Tangerine - - 45 150 45 150 - 150 

5,149 86,688 56 28,660 5,205 115,348 (15,386) 99,962 

The increase of USD25.5 million is explained mainly due to the addition of new planted areas of avocado and grapes. 

The movement of the year 2008 included the cost of crops amounting to USD11.6 millions. 

9 INVENTORIES 

Finished products: 


usd000 

usd000 

Artichokes 626 6,638 

Asparagus 13,863 20,997 

Peppers 2,953 4,544 

Avocados 206 95 

Mangoes 903 420 

Other 1,285 1,104 

(19,836) 33,798 

Supplies (5,885) 9,303 

Containers (6,777) 9,441 

Raw material and others (1,652) 2,275 

Product in process (21) 98 

In-transit raw material and supplies 362 3,122 

34,533 58,037 

Provision for obsolescence of inventories (2,500) - 

(32,033) 58,037 

10 OTHER ACCOUNTS RECEIVABLE 


usd000 

usd000 

Value added tax 3,910 5,315 

Drawback import duties 2,710 4,580 

Income tax credit 2,556 1,781 

Due from employees 593 1,232 

Prepayments to suppliers 823 680 

Accounts receivable for sale of fixed assets 855 - 

Related companies (Note 20) 44 - 

Other (1,550) 1,033 

13,041 14,621 

Less: 

Allowance for doubtful accounts (596) ( 544) 

(12,445) 14,077 

Movement in allowance for doubtful accounts: 

Opening balance (544) ( 153) 

Additions (Note 26) (54) ( 395) 

Adjustment (2) 4 

Balance at the end of the year (596) ( 544) 

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Other accounts receivables which are not impaired are current. 

The drawback recovered during the year 2009 was USD9,490,000 (USD4,019,000 in 

2008). Receivables from employees do not carry interest and are unsecured. 

11 TRADE ACCOUNTS RECEIVABLE 

Trade accounts 


usd000 

usd000 

Third parties 24,975 27,627 

Related companies (Note 20) - 10 

Less: 

24,975 27,637 

Allowance for doubtful accounts ( 4,386) ( 1,815) 

20,589 25,822 

Trade accounts receivable mainly correspond to invoices for the sale of fresh, preserved 

and frozen products. The credit period ranges between 90 and 180 days and do not 

accrue interest. Sales are usually made on the basis of export letters of credit. 

Trade accounts receivable in foreign currency (in thousands) amounts to USD7,899, 

USD177 and USD272 (USD11,587, USD1 and USD1 in 2008) in Euros, Pounds and 

Nuevo Sol, respectively. 

Movement in the allowance for doubtful accounts: 


usd000 

usd000 

Opening balance ( 1,815) (125) 

Additions (Note 26) ( 2,574) ( 3,040) 

Recoveries - 21 

Write-off of receivable from associate - 1,315 

Adjustments ( 3) 14 

Balance at the end of the year ( 4,386) ( 1,815) 

At December 31, 2009 and 2008, the accounts provided for have more than one year 

past due. 

As of 31 December 2009 and 2008, the aging analysis of trade receivables is as follows: 

31-90 91-180 181-360 More than 

Total Current days days days 361 days 

usd000 usd000 usd000 usd000 usd000 usd000 

At December 31, 2009 20,589 19,518 459 121 50 441 

At December 31, 2008 25,822 18,805 405 5 6,592 15 

At December 31, 2008 accounts receivable “between 181 - 360” days of maturity include mainly accounts 

receivable from one customer of USD6,301 thousand, out of which USD1,800 thousand was recovered during 

the first quarter of 2009. 

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As of December 31, 2009, trade receivables of USD441,000 (USD15,000 in 2008) were 

past due but not impaired. These relate to customers for whom there is no recent 

history of default. The ageing analysis of these trade receivables is as follows: 


usd000 

usd000 

1 year over 441 15 

As of December 31, 2009, trade receivables of USD4,386,000 (USD1,815,000 in 2008) 

that were impaired and for which a provision was made. The individually impaired 

receivables relate to customers, which are in unexpectedly difficult economic situations 

or and under litigation. The ageing of these receivables is as follows: 


usd000 

usd000 

1 year over 4,386 1,815 

As of 31 December 2009 and 2008 over 65% of accounts receivable are pledged as 

security for the Credit Suisse loan (Note 16). 

The credit quality of the trade accounts receivable that are neither past due nor 

impaired can be assessed by reference to historical information about counterparty 

default rates: 


usd000 usd000 

Group 1 - new customers (less than 6 months as a customer) - - 

Group 2 - existing customers (more than 6 months) 

without non-compliance in the past 18,959 17,141 

Group 3 - existing customers (more than 6 months) 

with some non-compliance in the past 1,630 8,681 

12 CASH AND SHORT-TERM DEPOSITS 

USD000 

20,589 25,822 


usd000 

The external credit rating of the financial institutions where the Group maintains their 

bank deposit is shown as follows: 

The credit quality of financial assets that are neither past due nor impaired can be 

assessed by reference to external credit ratings (if available) or to historical information 

about counterparty default rates: 

Bank deposits 

(counterparties with external credit rating) 


usd000 

usd000 

Classification A + 3,039 4,271 

Classification A 2,455 1,305 

Others 186 152 

5,680 5,728 

13 SHAREHOLDERS’ EQUITY 

Share capital and premium - 

The share capital and premium are as follow: 

number of share share 

shares capital premium Total 

usd000 usd000 usd000 

31 December 2008/31December 2009 32,403,820 507 212,318 212,825 

In 2009 and 2008, the total authorized numbers of ordinary shares are 32,403,820 

shares with a par value of €0.01 per share. All issued shares are fully paid. 

The initial shares are non-voting and do not participate in dividend distributions. 

In April 2008, the Company issued 27,925,070 shares to the shareholders of Camposol 

AS (Norway) in exchange for an equal number of shares in that company. 

In May 2008, the Company issued 1,908,750 new ordinary shares at a price of 

USD7,859 per share. 

The fair value of accounts receivable approximates their carrying amounts due to their 

short-term maturities. 

Cash 16 42 

Bank current accounts 5,680 5,728 

5,696 5,770 

The Group has bank current accounts mainly in United States dollars, Euros and 

Nuevo Sol. These funds are freely available and bear market floating interest rates. 

The share mentioned is in process of inscription in public’s register of Cyprus. 

Warrants to shareholders - 

Dyer Coriat Holding S.L was granted by Camposol AS 3.628.344 warrants to acquire 

shares in that company. These were replaced by warrants to acquire shares in 

Camposol Holding PLC as follows: 

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number of 

warrants Exercise price Exercise period 

Class A 1,375,000 NOK 40 8 April 2008 - 8 Oct. 2008 

Class B 1,195,652 NOK 46 8 Oct. 2008 - 8 Oct. 2009 

Class C 1,057,692 NOK 52 8 Oct. 2009 - 8 Oct. 2010 

The warrants represent a type of finder’s fee to Dyer Coriat Holding S.L for identifying 

the acquisition of Camposol S.A. and are included in the cost of the combination. The 

fair value of the warrants at the grant date was estimated using the Black and Scholes- 

Merton pricing model (using inputs for the share issue price, the exercise price, option 

life, volatility and risk free interest rate) at USD6,133,000. 

The Class A and B warrants with a fair value at grant date of USD2,019,000 and 

USD2,064,000 respectively, expired without being exercised and were reclassified to 

retained earnings within equity. 

Share options - 

In 2008 the Group has granted 300,000 share options to Directors and 585,000 

options to management. The fair value of the options was estimated at the grant date 

by an external expert using the Black and Scholes - Merton option pricing formula, 

at USD561.000. The exercise price of the options to Directors and management has 

been fixed at NOK 40 and ¼ can be exercised in each of the years 2009 to 2012. 

a fair value at grant date of USD160,000 expired during 2009 and 2008 without being 

exercised and were reclassified to retained earnings within equity. 

Movements in the number of share options outstanding and their related weighted 

average exercise prices are as follows: 


average 

average 

exercise 

exercise 

price in 

price in 

nOK per 

nOK per 

share Options share Options 

At 1 January 40 985,000) 40 150,000 

Granted - - 40 885,000 

Forfeited 40 ( 200,000) - - 

Expired 40 ( 50,000) 40 ( 50,000) 

At 31 December 40 735,000 40 985,000 

Share options outstanding at the end of 2009 and 2008 have the following expiry date 

and exercise prices: 

Exercise 

price in 

nOK per 

shares 

Expiration date share 2009 2008 

October 2009 50 - 50,000 

October 2010 52 50,000 50,000 

February 2012 40 685,000 885,000 

Total 735,000 985,000 

Largest 20 Shareholders - 

As of December 31, 2009, the largest 20 shareholders are: 

investor Shares % 

1 Dyer-Coriat Holding S.L. 8,571,000 28.73 

2 Deutsche Bank AG London 4,350,018 14.58 

3 Andean Fishing L.L.C. 3,380,100 11.33 

4 Euroclear Bank S.A. 2,196,000 7.36 

5 Fondo de Inversión Agroindustrial - FIDAF 1,908,750 6.40 

11 Deutsche Bank AG London 393,482 1.32 

12 Storebrand Livsforsi P980, Aksjefondet 322,000 1.08 

13 Credit Suisse Securi Special Custody A/C 309,000 1.04 

14 JP Morgan Chase Bank Nordea Re:Non-Treaty 234,500 0.79 

15 VPF Nordea Avkastnin C/O JP Morgan Europe 193,900 0.65 

16 DnB Nor SMB VPF 165,000 0.55 

17 Sabaro Investments L. John Casely 157,000 0.53 

18 MP Pensjon 137,000 0.46 

19 VPF Nordea Norge Ver C/O JP Morgan Europe 91,300 0.31 

20 Vital Forsikring ASA Omlopsmidler 77,043 0.26 

Others 1,415,377 4.73 

Other reserves - 

29,833,820 100.00 

The balance of this account includes net unrealized gains or losses on cash flows 

derivatives. It also comprises the net effect of the translation of the financial statements 

of the subsidiaries which have a different functional currency than that of the Company. 

During 2009, there were changes in some managements of the Group, so that 200,000 

options granted were terminated. Also, stock options granted to the Directors of the 

Group which were replaced, remain. 

Also, the Group has granted 150,000 share options to a former manager, valued at 

USD257,000. The exercise price of these options ranges from NOK 40 to 52 and 1/3 

can be exercised in each of the years 2008 to 2010. Options for 100,000 shares, with 

6 Clearstream Banking CID Dept, Frankfurt 1,829,400 6.13 

7 South Winds AS 1,753,000 5.88 

8 Peru Land & Farming LLC 1,195,950 4.01 

9 Orkla ASA 750,000 2.51 

10 Brown Brothers Harri S/A Genesis EME OPP 404,000 1.35 

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14 DEFERRED INCOME TAX 

The movement in the deferred income tax liabilities is as follows: 


usd000 

usd000 

Opening balance 10,094 12,262 

Income statement (Note 28) (1,401) (118) 

Other comprehensive income (1,958) (1,958) 

Adjustment (39) (92) 

(13,414) 10,094 

Deferred tax relates to the following: 


Deferred assets 

Other 

Opening income comprehensive Closing 

balance statement income Adjustments balance 

usd000 usd000 usd000 usd000 usd000 

Tax losses 2,308 (3,526) - (47) 5,787 

Swap valuation (Note 3-a) 1,958 - (1,958) - - 

Loss on investments in associates 44 (20) - - 24 

Provisions 636 (107) - (2) 527 

Deferred liability 

4,946 (3,399) (1,958) (49) 6,338 

Valuation of biological assets 8,747 (3,244) - - 11,991 

Fair value of fixed assets at 

acquisition of subsidiary 4,619 (196) - - 4,423 

Fair value of customer 

relationships 1,110 (124) - - 986 

Depreciation rates 172 15 - - 187 

Amortization rates 165 - - - 165 

Other 227 1,861 - (88) 2,000 

15,040 4,800 - (88) 19,752 

10,094 1,401 1,958 (39) 13,414 

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15 WORKERS PROFIT SHARING 

2008 - 

Deferred assets 

Tax losses - ( 2,308) - - 2,308 

Swap valuation (Note 3-a) - - 1,958 - 1,958 

Loss on investments in associates 135 ( 91) - - 44 

Provisions 292 344 - - 636 

427 2,561 1,958 - 4,946 


Valuation of biological assets 6,289 2,409 - 49 8,747 


acquisition of subsidiary 4,815 ( 196) - - 4,619 


relationships 1,260 (150) - - 1,110 

Depreciation rates 219 (47) - - 172 

Amortization rates - 165 - - 165 

Other 106 262 - (141) 227 

12,689 2,443 - (92) 15,040 

12,262 (118) (1,958) (92) 10,094 

In accordance with Peruvian Legislation the Group shall provide for worker’s profit 

sharing equivalent to 10% of taxable income of each year. 

This amount is charged to the income statement and is considered deductible for 

income tax purposes. 

Movement in workers´ profit sharing: 


Deferred asset 

Opening income Balance as of 

balance statement Equity adjusments december 31 

usd000 usd000 usd000 usd000 usd000 

Tax losses (1,494) 2,328 - - 3,822 

Swap valuation (Note 3-a) (1,450) - (1,450) - - 

Loss on investments 

in associates (33) (15) - - 18 

Provisions (459) (74) - - 385 

3,436 2,239) (1,450) - 4,225 

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Valuation of biological assets 6,481 2,403 - - 8,884 

Fair value of fixed assets at) 

acquisition of subsidiary 3,422 (145) - - 3,277 


relationships 822 (92) - - 730 

Depreciation rates 127 11 - - 138 

Amortization rates 123 - - - 123 

Other (36) 1,229 - 20 1,213 

10,939 3,406 - 20 14,365 

7,503 1,167 1,450 20 10,140 

2008 - 

Deferred asset 

Tax losses - 1,494 - - 1,494 

Swap valuation (Note 3-a) - - 1,450 - 1,450 

Loss on investments 

in associates 100 (67) - - 33 

Provisions 436 23 - - 459 


536 1,450 1,450 - 3,436 

Valuation of biological assets 4,569 1,785 - 127 6,481 


acquisition of subsidiary 3,474 (145) - 93 3,422 


relationships 909 111 - 24 822 

Depreciation rates 163 (36) - - 127 

Amortization rates - 123 - - 123 

Other 75 (368) - 257 (36) 

9,190 1,248 - 501 10,939 

8,654 (202) (1,450) 501 7,503 

The workers profit sharing liability, included in “other payables” (Note 18) on the balance sheet, has been determined 

pursuant to applicable legal provisions. 

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Corporate 

Governance 



Creditor and type of debt Guarantee Annual Interest Rate and Maturity 2009 2008 

USD000 USD000 

Credit Suisse, to the finance the capital 

expenditure 

program for 2007 and 2008 Camposol S.A. fixed assets 11.85% (9.85 % in 2008) year with installments until year 2012 50,086) 55,767) 

Banco Interbank for purchase of equipment 

and accessories 

Banco Interbank for purchase of water 

equipment 

Banco Interbank for purchase of tractors and 

accessories 

Property subject to financial lease 7.95 % per year with 12 installments every three months until 2010 448) 484) 



Credit Suisse for finance the reorganization of 

Banco Interbank for purchase of a Sprayer Property subject to financial lease 7.95 % per year with 12 installments every three months until 2010 106) 204) 

Banco Interbank for purchase of tractors Property subject to financial lease 8.60 % per year with 48 monthly installments until 2010 77) 148) 


Property subject to financial lease 8.60 % per year with 48 monthly installments until 2010 42) 115) 

equipment 

Banco Interbank for purchase of tractors Property subject to financial lease 8.20 % per year with 49 monthly installments until 2009 - ) 14) 

Banco Interbank for purchase of pick up truck Property subject to financial lease 8.40 % per year with 36 monthly installments until 2009 - ) 5) 

Banco Interbank for purchase of a pnEumatic 

seed drill 

Banco Interbank for purchase of valves and 

accessories 

Banco Interbank for purchase of a rotary 

labeler 




Banco Interbank for purchase of tractors Property subject to financial lease 7.86 % per year with 36 monthly installments until 2009 - ) 2) 

Banco Interbank for purchase of an hydraulic Property subject to financial lease 8.90 % per year with 10 installments every six months until 2012 72) 97) 

Excavator 

Banco Interbank for purchase of a pick up 


truck 

Banco Interbank for purchase of trucks Property subject to financial lease 8.90 % per year with 36 monthly installments until 2010 9) 25) 

Banco Interbank for purchase of a Sprayer Property subject to financial lease 8.20 % per year with 12 installments every three months until 2011 95) 152) 

Banco Interbank for purchase of pipes Property subject to financial lease 8.20 % per year with 12 installments every three months until 2010 78) 150) 

Banco Interbank for purchase of valves Property subject to financial lease 8.25 % per year with 12 installments every three months until 2010 8) 15) 

BBVA Banco Continental for purchase of pipes Property subject to financial lease 7.30 % per year with 12 installments every three months until 2011 1,572) 2,387) 

BBVA Banco Continental for purchase of pipes Property subject to financial lease 7.30 % per year with 12 installments every three months until 2011 1,312) 2,087) 

Banco Interbank for purchase of trucks Property subject to financial lease 7.95 % per year with 12 installments every three months until 2010 6) 19) 



equipment 

Banco Interbank for purchase of an automatic Property subject to financial lease 8.90 % per year with 60 monthly installments until 2013 227) 267) 

can seamer 

Banco Interbank for purchase of tools and 

machines 


BIF for purchase of a Power generator 

Cummins 

Banco Interbank for purchase of a excavator 

machine 

Banco Interbank for purchase of a truck 

Daihatsu and pick up Nissan 

Banco Interbank for purchase of Lab 

equipment for larvaes production 


Property subject to financiallease 9.11 % per year with 20 monthly installments until 2012 83) 115) 



133


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Corporate 

Governance 



Banco Interbank for purchase of Electric cable Property subject to financial lease 8.42 % per year with 12 installments every three months until 2010 4) 34) 

Celsa 

Banco Interbank for purchase of 2 four - Wheel Property subject to financial lease 8.42 % per year with 12 installments every three months until 2010 16) 9) 

moto Honda I 

Banco Interbank for purchase of a air vacuum 

cleaner 

Maofmadam Property subject to financial lease 8.42 % per year with 12 installments every three months until 2011 40) 57) 

BBVA Banco Continental for purchase of a Lab Property subject to financial lease 7.30 % per year with 12 installments every three months until 2011 ( 1,048 ( 1,346 

larvaes 

56,954) 66,354) 

Less- current portion (8,635) (9.528) 

48,319 56,826 

16 LONG-TERM DEBT 

All loans are in United States Dollars. 

The term of the non - current portion of long - term debt is as follows: 


usd000 usd000 

1 year 17,028 17,140 

2 year 31,227 17,306 

3 years 64 22,316 

More than 3 years - 64 

48,319 56,826 

Fair values - 

The carrying amount of both the short-term and long-term borrowing with Credit 

Suisse approximate their fair value as the interest rate of the loan is similar to market 

interest rates. 

Finance leases - 

The future minimum lease payments under finance leases together with the present 

value of net minimum lease payments are as follows: 


Minimum Present value Minimum Present Value 

payments of payments payments of payments 


Within one year 4,336 4,022 4,655 4,317 

After one year but not more than 

five years 3,165 2,846 7,157 6,270 

Total minimum lease payments 7,501 6,868 11,812 10,587 

Less amounts representing finance 

charges (633) (1,225) 

Present value of minimum lease 

payments 6,868 10,587 

Credit Suisse loan - 

In November 2007, Camposol S.A. signed a loan agreement with Credit Suisse for a 

total amount of USD65 million to be repaid by November 2012, at a fixed interest rate 

of 7.85%. Interest is payable monthly and amortization of the principal is performed 

during this period following the payment schedule in the credit agreement. 

135


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Corporate 

Governance 



On December 24, 2008, Camposol S.A. executed an amendment to the original 

USD65 million loan agreement with Credit Suisse. New covenants were agreed, and 

an additional margin of 2% was added to the previous 7.85% interest rate as from 

August 26, 2008 until the Group reaches a debt to EBITDA ratio of 2,5:1x. The 

interest rate remains at 9.85% as of December 31, 2008. 

On October 2009, Camposol S.A. prepaid USD7 million of the loan. The comparison 

of the discounted present value of the cash flows under the new terms of the loan, 

discounted using the original effective interest rate differs 1 per cent from the 

discounted present value of the remaining cash flows of the original loan. Accordingly, 

the terms of the new loan and those from the original loans are not substantially 

different, and the part early repayment is not accounted for as an extinguishment 

of the original loan. Accordingly, costs and fees incurred are recognized as part of 

amortized cost. 

On 24 November 2009, Camposol S.A. executed an amendment to the original 

USD65 million loan agreement with Credit Suisse. New covenants were agreed, and 

an additional margin of 2% was added to the previous 9.85% interest rate as from 

24 November 2009 until the Group reaches a Debt to EBITDA ratio of 2,5:1x. The 

interest rate remains at 11.85% as of 31 December 2009. 

In accordance with the loan contract of Camposol S.A. with Credit Suisse, the Group 

has to comply with the following covenants: 

- EBITDA to interest expense ratio. As of the end of each fiscal quarter, the EBITDA 

to interest expense ratio shall be at least: a) for each fiscal quarter in fiscal year 

2007, 3.50:1x, b) for the first and second fiscal quarters in fiscal year 2008, 

4.00:1x, c) for the third and fourth fiscal quarters in fiscal year 2008 and for the 

first two fiscal quarters of fiscal year 2009, 1.40:1x, d) for the third fiscal quarter in 

fiscal year 2009, 1.00:x1 (calculated by annualizing all available quarters for fiscal 

year 2009), e) for the fourth fiscal quarter in fiscal year 2009, 1.30:1x, e) for the 

first fiscal quarter in fiscal year 2010, 1.30:1x, f) for the second fiscal quarter in 

fiscal year 2010, 2.00:1x, g) for the third fiscal quarter in fiscal year 2010, 2.50:1x, 

h) for the fourth fiscal quarter in fiscal year 2010 2.75:1x, and, i) for each fiscal 

quarter thereafter 3.00:1x. 

- The total debt to EBITDA ratio shall not be greater than: a) as of the end of each fiscal 

quarter in fiscal year 2007, 3.50:1x, b) as of the end of the first quarter in fiscal year 2008, 

3.25:1x, c) as of the end of the second fiscal quarter in fiscal year 2008, 3.00:1x, d) as of 

the end of the third fiscal and fourth fiscal quarters in fiscal year 2008, 6.25:1x; e) as of 

the end of the first fiscal quarter in fiscal year 2009, 6.35:1x, f) as of the end of the second 

fiscal quarter in fiscal year 2009, 6.00:1x, g) as of the end of the third fiscal quarter in fiscal 

year 2009, 8.75:1x, h) as of the end of fourth fiscal quarter in fiscal year 2009, 6.50:1x, i) 

as of the end of the first fiscal quarter in fiscal year 2010, 5.75:1x, j) as of the end of the 

second fiscal quarter in fiscal year 2010, 4.50:1x, k) as of the end of the third fiscal quarter 

in fiscal year 2010, 3.40:1x, l) as of the end of the fourth fiscal quarter in fiscal year 2010, 

3.00:1x, and, m) as of the end of each fiscal quarter thereafter 2.50:1x. 

- The tangible net worth of the Borrower and its consolidated subsidiaries shall not 

be less than USD150,000,000 as of the Amendment effective date and as of the 

end of each fiscal quarter thereafter. 

- The Borrower shall sell (or cause to be sold) i) during each Coverage Period not less 

than 65% of the consolidated aggregate export sales of all Products sold during such 

period to Eligible Offtakers and ii) during each Coverage Period not less than 35% of 

the consolidated aggregate export sales of all Products sold during such period to 

Eligible Offtakers that are not Affiliates of either Obligor, in each case pursuant to Sales 

Agreements governed by the laws of country that is member of the Organisation for 

Economic Co-operation and Development. Notwithstanding the foregoing 75% of the 

consolidated aggregate export sales of grapes nectarines pomegranates (granadas) 

and lychees made during any Coverage Period shall be made to Eligible Offtakers 

pursuant to Sales Agreements governed by the laws of country that is member of the 

Organisation for Economic Co-operation and Development. 

During the period 2009 and 2008, Camposol S.A. has complied with all covenants and 

other agreements contained in the Credit Agreement with Credit Suisse. 

17 TRADE PAYABLES 


usd000 

usd000 

Suppliers 10,462 12,232 

Bills of exchange payable 9,644 12,894 

Payables to related parties (Note 20) 156 8 

20,262 25,134 

Payables to suppliers are mainly in US dollars, are due within 12 months and do not 

carry interest. 

Bills of exchange represent payables to suppliers mainly in foreign currency which are 

due within 12 months and carry interest at an average annual rate of 12%. 

The average payment terms of trade payables are between 30 to 60 days. 

18 OTHER PAYABLES 

Non-current - 


usd000 

usd000 

Derivative financial instrument (Note 3-a) - 12,204 

Deferred workers’ profit sharing (Note 15) 10,140 7,503 

10,140 19,707 

Current - 


usd000 usd000 

Derivative financial instrument (Note 3-a) - 3,908 

Vacations and other payables to employees 2,972 2,762 

Taxes payable 1,098 1,238 

Board remuneration 254 305 

Loans from third parties 227 228 

Payable to related parties (Note 20) 249 230 

Others 1,814 967 

6,614 9,638 

Current other payables, are due within 12 months and do not carry interest. 

137


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Product & 

categories 





Corporate 

Governance 



19 BANK LOANS AND OVERDRAFTS 


usd000 

usd000 

20 TRANSACTIONS WITH SHAREHOLDERS AND OTHER RELATED 

PARITES 

a) Transactions - 

Entities related to Directors 


usd000 

usd000 

Trade accounts receivable (Note 11) 


usd000 

usd000 

Loans - 

Banco Interbank 9,115 4,576 

Commercebank - 11,500 

Overdrafts - 

9,115 16,076 

Banco Scotiabank 170 373 

Banco Interbank - 7 

170 380 

9,285 16,456 

The main transactions carried out between the Group and its related parties are as 

follows: 

Associates 

Empacadora de Frutos Tropicales S.A.C. - 


USD000 

usd000 

Sales of finished products 7 10 

Purchase of services 545 969 

Apoyo Consultoría S.A.C. - 

Purchase of services 25 32 

Gestion del Pacifico S.A.C - 

Purchase of services and others 559 60 

Corporación Pesquera Inca S.A. (COPEINCA) - 

Purchase of raw material (fish) 956 - 

Purchase of services 31 - 

Associates 

Empacadora de Frutos Tropicales S.A.C. - 10 

- 10 

Other accounts receivable (Note 10) 

Associates 

Empacadora de Frutos Tropicales S.A.C. 36 - 

Loans represent promissory notes with maturities up to 180 days, obtained for working 

capital, with annual interest rates between 4.75 per cent and 6.80 per cent (2.50 per 

cent and 8.35 per cent in 2008). In 2009 the overdrafts are in Nuevo Sol (in Nuevo Sol 

and Euros in 2008). 

Purchase of fixed assets 142 - 

Aristodemou Loizides Yiolitis & Co - 

Purchase of legal services - 132 


Gestión del Pacífico S.A.C. 8 - 

44 - 

SP of Delaware Inc. 

Trade accounts payable (Note 17) 

Aircraft lease and maintenance - 368 

Associates 

b) Amounts due from/to related parties - 

Empacadora de Frutos Tropicales S.A.C. 88 - 

139


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Corporate 

Governance 





usd000 

usd000 

21 REVENUE 

Revenue represents the sale of fresh, preserved and frozen biological products and the 

rendering of services. 

22 COST OF SALES 


usd000 

usd000 

23 ADMINISTRATIVE EXPENSES 

Administrative expenses for the years ended December 31 are comprised of the 

following: 

Gestión del Pacífico S.A.C. 67 - 

Apoyo Consultoría S.A.C. 1 - 

SP of Delaware Inc. - 8 

Others payables (Note 18) 


156 8 

Copeinca 249 230 

These balances have no schedule date for collection or payment and do not bear any 

interest. 

For the years ended December, 31, comprise the following: 

USD000 


usd000 

Asparagus 58,752 62,073 

Avocado 16,347 31,611 

Artichoke 5,899 16,964 

Pepper 17,999 13,255 

Mango 8,463 8,620 

Cost of inventories recognized as expenses (66,934) 73,210 

Personnel expenses (Note 25) (34,064) 38,125 

Depreciation (Note 5) (5,242) 4,954 

Custom duties refund (7,632) ( 5,927) 

(98,608) 110,362 

In Peru, Camposol S.A and Marinazul S.A. are beneficiaries of a simplified procedure 

for import duty refund (Drawback) of customs duties, at a rate of 8% of FOB value in 

2009 (5% in 2008). 


usd000 

usd000 

Personnel expenses including profit sharing (Note 25) 7,076 4,891 

Professional fees 2,182 3,191 

Depreciation (Note 5) 900 144 

Travel and business expenses 383 724 

Rent of computer equipment 344 288 

Amortization of computer software (Note 7) 285 99 

Other transactions with related parties correspond to warrants (granted to Dyer Coriat 

Holding S.L.) and share options (granted to Directors and management). The details 

of these transactions are described in Note 13 and the balances are shown as part of 

equity. 

Compensation of key management personnel of the Group 


usd000 

usd000 

Shrimp 8,333 5,366 

Grapes 1,971 - 

Other 5,009 2,816 

Total 122,773 140,705 

Included within asparagus, avocado and mango revenue is the net change in the fair 

value, which amounted to USD195,000 in 2009 (USD491,000 for 2008). 

Auditors remuneration 265 370 

Expense of share based payments: options 256 561 

Transport and telecommunications 144 569 

Director’s remuneration 363 243 

Other expenses 1,116 1,579 

13,314 12,659 

Salaries of key managers 1,568 1,881 

Remuneration of directors (all non - executive) 363 243 

141


Overview 

Product & 

categories 





Corporate 

Governance 



24 SELLING EXPENSES 

Selling expenses for the years ended December 31 are comprised of the following: 


usd000 usd000 

25 PERSONNEL EXPENSES 

USD000 


usd000 

26 OTHER INCOME AND EXPENSES 

Other income - 


usd000 

usd000 

The gain (loss) on the currency derivative includes the net payments from the 

counterparty of USD315,000 and the gain of USD1,611,000 (receipts for USD530,000 

and the loss of USD674.000 in 2008) corresponding to the ineffective portion of the 

hedge (Note 3-a). 

27 FINANCE INCOME AND COSTS 

Freight 9,785 11,190 

Amortization of customer relationships (Note 7) 917 1,109 

Personnel expenses including profit sharing (Note 25) 949 912 

Customs 774 764 

Travel and business expenses 259 287 

Insurance 244 289 

Third-party services 704 992 

Depreciation (Note 5) 26 12 

Other expenses 643 731 

14,301 16,286 

Salaries and wages 37,378 (38,682) 

Vacations 1,864 (1,929) 

Other employees benefits 1,129 (1,168) 

Share based payments: options 256 (561) 

Other expenses 658 (2,024) 

Worker’s profit sharing (1,167) (193) 

(42,452) (44,171) 

Personnel expenses are allocated as follows: 

Cost of sales (Note 22) 34,064 38,125 

Administrative expenses (Note 23) 7,076 4,891 

Director’s remuneration - Administrative expenses (Note 23) 363 243 

Selling expenses (Note 24) (949) 912 

( 42,452) 44,171 

Gain from sale of property, plant and equipment 293 - 

Insurance claims 160 211 

Recovery of provision for doubtful receivables - 21 

Other 906 501 

1,359 733 


usd000 

usd000 

Other expenses - 

Provision for doubtful receivables (Notes 11) (2,628) (3,435) 

Provision for obsolescence of inventories (Notes 9) (2,500) - 

Write down of inventories (1,493) - 

Credit for value added tax not used - (165) 

Gain (loss) on currency derivative (1,296) (144) 


usd000 

usd000 

Income - 

Interest on bank time deposits - 1,416 

Other finance income 64 559 

64 1,975 

Costs - 

Interest on bank loans (Notes 16 and 19) (7,890) ( 8,551) 

Interest on finance leases (755) (871) 

Levy on financial transactions (372) (760) 

Interest of suppliers’ financing (418) (355) 

Bank fees (392) (608) 

Other finance costs (1,192) (229) 

(11,019) ( 11,374) 

Loss from sale of property, plant and equipment - (56) 

Other (2,093) (1,006) 

(7,418) (4,806) 

143


Overview 

Product & 

categories 





Corporate 

Governance 



28 TAX 

a) According to the tax legislation in force the income tax is determined on separate 

basis. Management has determined the taxable income under the general income 

tax regime, which requires adding to and deducting from the result derived from the 

accounting records maintained in Nuevo Sol is those items considered as taxable and 

non-taxable, respectively. 

The only subsidiary that has generated taxable income was Marinazul S.A. All other 

companies in the Group incurred tax losses for which a deferred tax asset was 

recognized - Note 14. 

The standard rate of Cyprus income tax for 2009 and 2008 is 10% and for subsidiaries 

in Peru is 15%. 


usd000 

usd000 

Current tax (6) (14) 

Deferred tax (Note 14) (1,401) 118 

Tax income / (expense) (1,407) 104 

b) For the years 2009 and 2008 the income tax credited to income differs from the 

theoretical amount that would arise using the tax rate applicable to profit before 

workers’ profit sharing and income tax as follows: 


usd000 usd000 

Profit before income tax 3,412 (881) 

At statutory income tax rate of 10% of the parent (341) (88) 

Difference in tax rate (171) (44) 

Expenses not deductible for tax purposes (1,236) (1,181) 

Non taxable revenue (499) (1,683) 

Other (158) (266) 

Tax income / (expense) (1,407) 104) 

Profit before income tax only corresponds to Peruvian subsidiaries; therefore taxation 

charge in the income statement is based on the Peru tax rate of 15%. 

c) The Tax Authority is empowered to review and, if required, amend the income tax 

or the tax loss carry forward determined by the Company and its subsidiaries in the 

last four years, as from January 1 of the following year in which the tax return of the 

corresponding income tax was filed (years open to examination). Since discrepancies 

may arise over the proper interpretation of the tax law applicable to the Company 

and its subsidiaries, it is not possible to anticipate at this date whether additional 

tax liabilities will arise as a result of eventual examinations. Additional tax, fines and 

interest, if any, will be recognized in results of the period in which the disagreement 

with the Peruvian tax authorities is resolved. Management considers that no significant 

liabilities will arise as a result of any eventual tax examinations. 

The following table shows the income tax and value added tax returns subject to 

review by the Tax Authority corresponding to the Company and its subsidiaries. 

Years open to tax review 

Company Income Tax Value Added Tax 

Camposol Holding PLC 2007-2009 2007-2009 

Camposol S.A. 2005-2009 December 2005 - December 2009 

Years open to tax 

review 

Company income Tax Value Added Tax 

Preco Precio Economico S.A.C. 2005-2009 December 2005 - December 


Sociedad Agricola Las Dunas S.R.L. 2005-2009 


December 2005 - December 

Prodex S.A.C. 2005-2009 October 2005 - December 2009 

Belfast S.A. 2005-2009 October 2005 - December 2009 

Vegetales del Norte S.A.C. 2005-2009 October 2005 - December 2009 

Muelles y Servicios Paita S.A.C. 2006-2009 August 2006 - December 2009 

Marinasol S.A. 2006-2009 December 2006 - December 


Marinazul S.A. 2006-2009 August 2006 - December 2009 

Grainlens Ltd. 2007-2009 2007 - 2009 

Blacklocust Ltd. 2007-2009 2007 - 2009 

Siboure Holding Ltd. 2007-2009 2007 - 2009 

Madoca Corp. 2008-2009 2008 - 2009 

Camposol Europa S.L. 2008-2009 2008 - 2009 

Campoinca S.A. 2007-2009 2007 - 2009 

Camposol Fresh B.V. 2009 2009 

145


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Product & 

categories 





Corporate 

Governance 



29 BASIC AND DILUTED EARNINGS PER SHARE 

Basic earnings per share - 

Basic earnings per share are calculated by dividing net profit attributable to equity 

holders of the parent by the weighted average number of ordinary shares in issue 

during the year. 

Profit attributable to equity holders of the Company 


(USD000) 2,005 985 

Weighted average number of ordinary 

shares in issue (thousands) 29,834 29,175 

Basic earnings per share (USD) 0.067 0,034 

The Company was incorporated on July 9, 2007. One class of 2,570,000 initial shares 

does not have the right to vote or participate in dividend distribution and are not taken 

into account for the purposes of determining earnings per share. 

The share capital was increased through the share exchange with Camposol AS 

shareholders in March 2008 by 27,925,070 shares and by a private placement towards 

Fondo de Inversion Agroindustrial (FIDAF) with 1,908,750 shares. 

Diluted earnings per share - 

Diluted earnings per share is calculated by adjusting the weighted average number 

of ordinary shares outstanding to assume conversion of all dilutive potential ordinary 

shares. The Group has granted share options and warrants which are dilutive. The 

Group determines the number of potential shares using the average market share price 

of the Group’s shares for the year. However, since during 2009 and 2008 the exchange 

value of the potential shares was greater than the fair value of the shares, the Group did 

not consider any potential ordinary shares for the determination of the dilutive earnings 

per share, being the dilutive earnings per share the same as the basic earnings per share. 

30 SEGMENT REPORTING 

Based on the reports reviewed by the Board of Directors that are used to make strategic 

decisions, Management considers that there is only one reportable segment engaged in 

producing, processing and commercializing a number of agricultural products, as fresh, 

preserved and frozen, which are mainly exported to European markets and the United 

States of America. 

The products include asparagus, avocado, piquillo pepper, mangoes, artichoke and 

shrimp. These are further distinguished in fresh, canned and frozen products. In 2008, 

the Group has decided to discontinue the production of artichoke and to plant grapes 

and tangerines which need at least 3 years to start production. 

All production and related assets are in Peru. 

The analysis of sales below is based on the country/area in which the customer is located. 


usd000 

usd000 

Europe 98,575 90,049 

USA 19,328 48,520 

Peru 1,378 877 

Other 3,492 1,259 

122,773 140,705 

The following table shows revenues and gross profit by product: 

Year 2009 

asparagus avocado artichoke Pepper Mango shrimp Other Total 


Revenues 58,752 16,347 5,899 17,999 8,462 8,333 6,981 122,773 

Gross profit 5,707 9,443 106 2,912 3,143 1,545 ( 1,309) 24,165 

Year 2008 

Revenues 62,073 31,611 16,964 13,255 8,620 5,366 2,816 140,705 

Gross profit 6,599 20,500 999 530 1,860 771 (916) 30,343 

147


Overview 

Product & 

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Corporate 

Governance 



The following table shows revenues and gross profit by customer: 

Year 2009 

Major 10 Major 11 to 20 Major 21 to 28 Other 

customers customers customers customers Total 

usd000 usd000 USD000 usd000 USD000 

Revenues 47,130 16,919 8,738 49,986 122,773 

Gross profit 3,706 1,720 1,605 17,134 24,165 

Year 2008 

Revenues 63,325 27,677 14,416 35,287 140,705 

Gross profit 5,407 8,195 4,494 12,247 30,343 

31 COMMITMENTS AND GUARANTEE 

a) On October 11, 2007, the Group acquired from a third party the lots of land 

Compositan II and III, in the Chavimochic Special Project for USD409,000. The 

acquisition requires an investment commitment which is secured by the Group with a 

bank guarantee for USD800,000. 

b) The commitments and guarantees in respect of the Credit Suisse loan are set out 

in Note 16. 

c) On October, 2008, Camposol S.A. signed an agreement with Peru Land & Farming 

LLC (PL&F) giving them a first option to purchase avocado production from a designated 

area of 800 Ha for sale in the United States of America When the US market opens for 

Peruvian avocado, PL&F will have the right to purchase 100% of the production from 

that area. The option will gradually decrease until year 10, after which it will maintain 

a lifetime option for 30% the production of the designated area. 

32 CONTINGENCIES 

As of, December 31, 2009, the Group has several contingencies labor-related claims 

amounting to USD1.1 millions. Based on legal advice the potential loss is not 

significant. A provision has been recognized for other labor claims for USD0.6 millions. 

33 EVENTS AFTER THE REPORTING PERIOD 

The following events occurred subsequent to the financial statements date: 

- Changes in management team 

On January 4, 2010 Camposol S.A. announced that the Board of Directors had 

appointed Fabio Matarazzo di Licosa as the new CEO of the Company. The new CEO 

assumed his position on January 18, 2010. 

On February 3, 2010, the Company promoted Mr. Piero Dyer, the former CFO, to 

Deputy CEO and Mr. Jorge Ramirez, the former Deputy CFO, to CFO. 

- Changes at U.S. avocado market 

On January 4, 2010, the U.S. Department of Agriculture (USDA) announced an 

amendment to their regulations allowing for import of Hass avocados from Peru. The 

rule became effective on February 3, 2010. 

- Other events 

On January 2010, the Group hired Consulting firm Synergos, which is an important and 

experienced firm of consultants, as part of the Group’s continuous process of seeking 

to optimize its operations. 

149

Segundo Namoc Amaya 

Planning Assistant. 

I joined Camposol on February 05 2001. I began 

in cleaning, then in can coding and jar filling in the 

area of empty containers. In 2002 I controlled the 

same area, then in 2003, I became production 

supervisor and then Administrative Assistant to 

the Head of Production in 2004. There I learned 

to prepare production reports. In September 

2004, after the resignation of the Head of 

Production Planning and Control, the engineers 

asked me if I could carry out these programs 

and I said I could. Since last year I have worked 

in the area of administrative management as a 

planning assistant. My job basically consists of 

programming and performing follow-up of the 

material needed by production. I have worked in 

the company for 9 years now and do it with a lot 

of love, energy and devotion. 

My parents are poor people and I really appreciate 

the effort my father made to buy me the necessary 

materials to apply for entrance to the National 

University in Trujillo. I didn’t have sufficient money 

for the pre-university academy but fortune was 

on my side because I got in on the first try. When I 

was in the fifth term of Industrial Engineering I left 

the University but in January 2005 two engineers, 

I worked with, Mario and Julio, helped me and 

provided me with the facilities to continue and 

demanded I return to the University, if I hadn’t 

done this I would not have continued to grow 

professionally within the company. I restarted 

my University Studies and at the time thought it 

was going to be difficult to finish them, now I am 

convinced that this year I will graduate because I 

have only a few credits to complete. In the future I 

hope to obtain my Master’s Degree and study the 

languages I need to learn. 

I first met Maribel when I travelled from Trujillo to 

Chao. She was working as an attendant on the 

bus. One day when I was in Chao ready to go to a 

party with my friends I met her again and she told 

me she had been working in the canned line for 

a week,since then we have been together. Angel 

aged 7 and Maria de los Angeles who is 1 year old 

are my two children. 

Day by day I feel more committed to my family 

and to the company: I consider them a gift and 

a blessing from God whom I will thank for ever 

for the opportunities and the achievements. My 

family is my reason for living. The company in 

the most difficult moments of my life gave me 

the opportunity to work and to study. I value the 

opportunities I have had for which I always try to 

be prepared; I believe that luck exists when the 

opportunity and the knowledge meet on the road 

of life.”

diseño gráfico pilar elías / alex bryce fotográfica alex bryce

Annual Report 2009 - Camposol

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