83% of Peruvian companies are preparing for El Niño, survey finds

Four out of five nonfinancial companies in Peru are taking precautions for El Niño, according to a survey published by the Central Reserve Bank of Peru. The climate phenomenon could severely disrupt product distribution and logistics routes in the coming months.

The survey covered 345 companies. Some 83% said they had adopted or planned preventive measures, including alternative logistics routes, operational continuity plans and stronger facilities. The most common steps were establishing alternative routes, reported by 42%; preparing continuity plans, 41%; and reinforcing facilities, 40%.

Companies identified delays or higher logistics costs as the main channel of impact, cited by 62% of respondents. Other concerns included distribution difficulties, higher input prices and reduced input availability. Sixty-seven percent expected costs to rise, although 63% did not anticipate changing their selling prices. Forty-eight percent expected lower sales and 46% foresaw reduced production, with the effects expected to continue through February 2027.

The northern region, which often faces torrential rain and flooding during El Niño, reported the strongest preparations. Ninety-four percent of companies there had taken or planned preventive measures, led by facility reinforcement, continuity plans and alternative logistics routes. All companies surveyed in the region expected some impact, especially damage to facilities or equipment and higher or delayed logistics costs. The survey found that 81% expected lower sales and 69% lower production.

Peru’s national El Niño study estimated a roughly 70% chance that the phenomenon would reach extraordinary intensity in the following months, easing slightly to 62% in January. For February and March, the expected intensity ranged from strong to very strong. The country also forecast unusually high coastal air temperatures from August through October. In August, average national maximum temperatures stood 4.4 degrees Celsius above normal, while minimum temperatures were 3.8 degrees higher.