Upload
lorena-gaytan
View
29
Download
3
Tags:
Embed Size (px)
DESCRIPTION
Revista Promexico
Citation preview
VI - 2013
Negociospara exportadores
The Lifestyle FeatureMexico Gets the Grass Growing
Business TipsMexican Agri-food Industry: An Ideal Business Meal
Table of Contents June 2013
Mexicos Partner
Catoex
La Huerta
Amell Bioactivos
Eco Agri Tec
S o S
Naturkost de Mxico
Grupo Versa
Frucasa
Amb Wellness
Tecnofruit
COVER FEATURE
MexicanAgro-industry:
Supplying Food to the World
From ProMxico
Guest OpinionMexican Agriculture:
A Paradise of Opportunities
Mexico in the WorldFood Market Trends:
An Overview of North America
Business TipsMexican Agri-food Industry:
An Ideal Business Meal
14 16 18
Special Report3D Robotics: Droning
On and On in Mexico
12
22
7
Briefs8
26
28
30
32
34
36
38
40
42
44
Figures
46
pho
to
co
urt
esy
of
3d r
obo
tics
pho
to
arc
hiv
e
There Are mAny wAys To geT your clienTs ATTenTion,
none As effecTive As ours
negocios.promexico.gob.mx [email protected]
Published monthly.
Distributed among business people, potential investors, decision-makers, research centers and national and international subscribers.
Close to 10,000 copies out of 15,000 are distributed abroad through a network of 36 representative offices located in 23 countries in the Americas, Asia, Europe and the Middle East; all Mexican embassies and consulates and at international trade shows and expos.
Geographic distribution covers a wide spectrum of key countries and cities, which guarantees a strategic coverage in the worlds leading markets.
The Lifestyle The CompleTe Guide To The mexiCan Way of life
64
Mexico Gets the Grass Growing
57
The LifestyleBriefs
50
Mexican Chefs, Whetting the Worlds Appetite
52
I try to make jewelry with a sense of funInterview with Mexican designer Daniela Villegas
London MexFestMexico Gets Creative in London
pho
to
co
urt
esy
of
ben
ito
mo
lin
aph
ot
o c
ou
rtes
y o
f d
anie
la v
ille
gas
pho
to
ian
do
lph
in
pho
to
co
urt
esy
lon
do
n m
exfe
st
pho
to
co
urt
esy
of
el p
acf
ico
pu
nta
de
mit
a
Mezcal, Fire on the Tip of Everyones Tongue
pho
to
arc
hiv
e
54
62
Para exportadores proMxicoFrancisco Gonzlez DazCeo
Karla Mawcinitt Buenoimage and Communications General Coordinator
Sebastin Escalantedirector of publications and [email protected]
Natalia HerreroCopy editing
download the pdf version and read the interactive edition of Negocios ProMxico at: negocios.promexico.gob.mx
This publication is not for sale. Its sale and commercial distribution are forbidden.
Negocios ProMxico ao 6, nmero VI, junio 2013, se termin de imprimir el 14 de junio de 2013, con un tiraje de 13,000 ejemplares. Impresa por Ca. Impresora El Universal, S.A. de C.V. Las opiniones expresadas por los auto-res no reflejan necesariamente la postu-ra del editor de la publicacin. Queda estrictamente prohibida la reproduc-cin total o parcial de los contenidos e imgenes de la publicacin, sin previa autorizacin de ProMxico. Publica-cin Gratuita. Prohibida su venta y dis-tribucin comercial.ProMxico is not responsible for inac-curate information or omissions that might exist in the information provided by the participant companies nor of their economic solvency. The institution might or might not agree with an authors state-ments; therefore the responsibility of each text falls on the writers, not on the insti-tution, except when it states otherwise. Although this magazine verifies all the information printed on its pages, it will not accept responsibility derived from any omissions, inaccuracies or mistakes. June 2013.
Mxico: Una cosecha de escala global
Japn: Una alternativa para la exportacin de agro productos mexicanos
Tendencias del mercado de alimentos: El panorama estadounidense
LA IMPORTAnCIA de LA BIOTeCnOLOGAALIMenTARIA en MxICO
78
72
74
76
fot
os
arch
ivo
fot
o a
rc
hiv
o
Negocios ProMxico es una publicacin mensual editada en ingls por Pro-Mxico, Camino a Santa Teresa nmero 1679, colo-nia Jardines del Pedregal, Delegacin lvaro Obre-
gn, C.P. 01900, Mxico, D.F. Telfo-no: (52) 55 54477000. Pgina Web: www.promexico.gob.mx. Correo elec-trnico: [email protected] Editor responsable: Gabriel Sebastin Escalante Bauelos. Reserva de dere-chos al uso exclusivo No. 04-2009-012714564800-102. Licitud de ttulo: 14459. Licitud de contenido: 12032, ambos otorgados por la Comisin Ca-lificadora de Publicaciones y Revistas Ilustradas de la Secretara de Gober-nacin. ISSN: 2007-1795.
Frompromxico.
Only a handful of countries can claim to have the vari-ety of foods and agricultural products that abound in Mexico. Thanks to Mexicos
climate diversity, it can produce fresh veg-etables almost all year round as well as co-pious amounts of some of the worlds most coveted fruits and vegetables.
Adding to the benefits of its geographic location, Mexicos long agricultural tradi-tion is the basis of a modern industry that not only produces foods, but processes and adapts them to satisfy the needs and tastes of specific consumer niches around the globe.
Today, Mexicos flavors can be enjoyed anywhere in the globe, meeting the most
demanding quality and health standards. From natural and fresh, to those that might seem plucked from a science fiction movie but are filled with flavor and ben-efits, food made in Mexico offers consum-ers the quality guarantees they have come to seek in everything they consume.
Mexicos agro-industry is constant-ly innovating; every day new solutions emerge to satisfy consumer needs world-wide, which strengthens Mexicos pres-ence on the shelves of international markets. This, added to the increasing demand for food throughout the world, fuels the belief that Mexico will maintain its position as a major player in the global agri-food industry.
Welcome to Negocios!
Francisco Gonzlez DazCEO
ProMxico
Breves70
BRIEFS BRIEFS
SHAPed exPAnSIOn
METALLURGICAL
HOndA RAISeS ITS BeT On MexICO
Japanese automaker Honda will build an additional manu-facturing plant to produce transmissions on the site of its vehicle plant currently under construction in Celaya, Gua-najuato. Production at the 470 million usd transmission facil-ity is planned to serve both do-mestic and overseas demand. It will open during the second half of 2015 and will be able to make as many as 700,000 continuously variable trans-missions a year.
corporate.honda.com
AUTOMOTIVE
STRuCTuRAL STRenGTHenInG
Holcim Apasco, the Mexi-can subsidiary of Swiss cement giant Holcim, will invest approximately 40 million usd to upgrade assets in Mexico in 2013. Resources are earmarked for replacing plant equip-ment and improving sys-tems to increase competi-tiveness.
www.holcim.com.mx
CONSTRUCTION
BuSIneSS WITH WHITe And YOLK
Bonovo opened a liq-uid and dehydrated egg plant in Tehuacn, in the state of Puebla, assigning capital of approximately 6.5 million usd.
bonovo.com.mx
FOOD
GeTTInG ReAdY TO ROLL
Indian tire manufacturer JK Tyre & Industries Ltd plans an investment of 25 million usd over the coming year to expand production at its Mexican subsidiary Tornel.
www.tornel.com.mx
AUTOMOTIVE
ReAdY, SeT, GO!
German luxury auto-maker Audi started construction of its first manufacturing plant in Mexico.
The 1.2 billion usd facility in the state of Puebla is planned to produce luxury sport utility vehicles.
www.audi.com
AUTOMOTIVE
CALIFORnIA-STYLe BuSIneSS
Mexican franchise operator Alsea will invest approxi-mately 50 million usd to open 50 new California Pizza Kitchen restaurants in Mex-
FOOD
ico over the next five years. Alsea operates casual dining locations of brands including Starbucks, Dominos Pizza and Burger King, among oth-ers, in the country.
www.alsea.com.mx
Sintermetal, a business unit of Germanys Schunk Group, plans investment of 6 million usd to expand capacity at its sintering plant in Estado de Mxico. The facility produces highly complex sintered parts for the manufacture of rotors for oil pumps and variable valve timing systems.
www.schunk-group.com
pho
to
ar
ch
ive
pho
to
ar
ch
ive
pho
to
co
ur
te
sy o
f n
issa
n
pho
to
co
ur
te
sy o
f h
ol
cim
apa
sco
pho
to
co
ur
te
sy o
f h
on
da
pho
to
co
ur
te
sy o
f si
nt
er
me
ta
l
pho
to
co
ur
te
sy o
f c
al
ifo
rn
ia p
izz
a k
itc
he
n
BRIEFS BRIEFS
InveSTInG In HeALTH
Mexican pharmaceutical group Neolpharma will build a new plant to produce biotechno-logical medication. The 29 million-usd facility in Mexico City is planned to include a research center in biotechnology and nanotechnology.
www.neolpharma.com
PHARMACEUTICALMOLdInGTHe FuTuRe
US based plastics producer Sonoco Products is building a new manufacturing facility in the state of Guanajuato. The 10.5 million usd plant will produce molded foam products for industries such as automotive, aerospace, medical and appliance manu-facturing.
www.sonoco.com
MANUFACTURING
BOSCH TAKeS ROOT In MexICO
German auto parts maker Robert Bosch plans investment of 150 million usd in Mexico in 2013. Projects in-clude installation of new production lines and systems upgrades to existing lines at the companys eight manu-facturing sites in the country.
www.bosch.com
AUTOMOTIVE
LeARS BRAndneW FACILITY
US automotive components manufacturer Lear Corp. inaugurated a new produc-tion facility in the northern border city of Ciudad Jurez, Chihuahua. The 22 mil-lion usd plant will produce electrical harnesses for auto OEM Chevrolet.
www.lear.com
AUTOMOTIVE
dAIdO BeGInSOPeRATIOnS
AUTOMOTIVE
FRISA KeePSGROWInG
Mexican heavy industrial manufac-turer Frisa inaugurated a new produc-tion plant at its existing site near the city of Monterrey, Nuevo Len. The 80 million usd open-die forging plant is planned to produce large industrial pieces such as steel laminating roll-ers and oil well blocks, the company reported.
www.frisa.com
METALLURGICAL
CHIHuAHuA, HOMe FOR SIze
US trailer maker Heil Trailer International will invest ap-proximately 12 million usd to establish a new manu-facturing plant in the state of Chihuahua. The facility is planned to produce alu-minum tank trailers for the transport of liquids.
www.heiltrailer.com
AUTOMOTIVE
Japanese metal form-ing firm Daido Metal Corp. inaugurated a new manufacturing plant in the state of Jalisco. The 50 million usd facility will pro-duce automotive bear-ings utilizing barrel plating processes.
www.daidometal.com
pho
to
co
ur
te
sy o
f b
osc
hph
ot
o c
ou
rt
esy
of
son
oc
o p
ro
du
ct
s
pho
to
co
ur
te
sy o
f l
ea
r c
or
p.
pho
to
ar
ch
ive
pho
to
ar
ch
ive
pho
to
ar
ch
ive
pho
to
co
ur
te
sy o
f fr
isa
13
Negocios ProMxico |
12 June 2013
| Negocios ProMxico
June 2013
Special Report photos courtesy of 3d robotics Special Report
3D Robotics: Droning On and On in MexicoChris Anderson is the CEO of 3D Robotics and founder of DIY Drones. From 2001 to 2012 he was the Editor in Chief of Wired magazine. Before Wired, he was with The Economist for seven years in London, Hong Kong and New York in various positions, ranging from Technology Editor to US Business Editor. Chris is the author of the New York Times bestselling books The Long Tail and Free as well as Makers: The New Industrial Revolution. In 2007, he made the Time 100 list, the newsmagazines compilation of the 100 most influential men and women in the world.
by GRAEME STEwART
Chris Anderson admits he has been blown away by the skill, expertise and sheer hard work of his Mexican employ-ees at 3D Robotics Tijuana factory and was delighted to announce that moves are afoot to double the number of workers in a brand new
14,000 square-feet facility in the border city.
The affable Californian, co-founder and CEO of 3D Robotics, cant praise his Mexican employees highly enough. They are, he says proudly, incredible people; so talented, skilled and hard
Anderson, 51, co-founded 3D Robotics, a robotic manufacturing company that specializes in Do it yourself (DIY) projects, in 2009 with Jordi Muoz, another self-confessed geek who saw the possibilities of drones in a commercial market. They joined forces and, eventually, Anderson left his day job
That makes all the difference, having our factory so close to our headquarters. We can get things done much quicker than if we were dealing with a factory in China.
Anderson remembers his journey towards 3D Robotics began some five years ago. I started down the road five years ago, beginning with projects with my kids and then going down the rabbit hole of open source electron-ics, robotics and eventually drones, with the community site I set up, DIYDrones.com. That led to the creation of a company, 3D Robotics, with Jordi Muoz, who I had met online at DIY Drones, to make some of the tech-nologies that the DIYDrones community was creating.
With Anderson and Mu-ozs drive, ambition and vision allied to Mexican elec-tronics engineering know-how, the sky is the limit for 3D Robotics. n
3drobotics.com
working. There is an amaz-ing pool of labor in Mexico, especially in electronics engi-neering. I cant find a group of such highly-skilled engi-neers anywhere else in North America.
And the hard work of the Mexican employees is being rewarded by plans to double the workforce in Tijuana from 27 to 54, ensuring production and employment at the new factory for years to come.
The fruits of their labor are drones: not the military ones that scan the skies over the worlds hot spots but much smaller, camera-carry-ing aircraft, unmanned aeri-al vehicles that can be used on a more commercial scale.
Anderson explains: Ba-sically, our drones are just cameras in the sky. They can be used mainly in agriculture for crop surveys but can also be destined for search and rescue, although we are not focusing on that right now. They are manufactured at our plant in San Diego and anoth-er in Tijuana where we have been extremely impressed by our employees. Mexico is one of the few places in North America where they still make electronic goods; almost all other electronics production has been transferred to China. Tijuana has proved to be the ideal location for our 3D Ro-botics factory, especially as it is so close to San Diego where we have our headquarters and another operating factory.
He has also been pleas-antly surprised by the wel-come and offers of assistance from the Baja California and Mexican governments, even if those proposals have been politely refused. As it hap-pens, we dont need much support, Anderson says. But if we ever do, then we know where to get it. We have had no problems whatsoever, he continues.
There is an amazing pool of labor in Mexico, especially in electronics engineering. I cant find a group of such highly-skilled engineers anywhere else in North America.
Chris Anderson, co-founder and CEO
of 3D Robotics
as editor in chief of Wired magazine to oversee the managerial side of 3D Robot-ics, using his experience and contacts to attract investors and nurture the fledgling company.
He has been successful as only three months ago he was able to announce that 3D Robotics had received a round of venture capital funding from Jon Callaghan at True Ventures and Bryce Roberts of OReilly AlphaT-ech Ventures that is now enabling the company to expand in Tijuana.
The good news is that the skills are there in Mexi-co, Anderson enthuses. We know we can hire 50 plus talented employees in Tijuana. You get great value for money south of the border and more companies like mine are com-ing to Mexico, Tijuana in particular, because it offers viable options to China. The cost of labor is similar to that in China but Mexico offers the opportunity for speed.
photo archive
15
Negocios ProMxico |
14 June 2013
| Negocios ProMxico
June 2013
Guest Opinion Guest Opinion
Mexican Agriculture: A Paradise of Opportunities
Since the North American Free Trade Agreement (NAFTA) came into force, Mexicos agricultural industry has undergone an extremely interesting transformation that has taken it from an economy with domestically consumed agricultural products, to one with a free market where agricultural goods are exported globally on a regular basis.
by HUGO jAVIER CHAGOyN*
Michoacn is one of Mexicos top agricultural producers. It ranks first in perennial production and in 2011 the states output reached a value of 1.089 billion usd, which accounted for 7.1% of the national total, according to the Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA).
Mexico is currently one of the most open economies in the world, boasting a large number of free trade and bilateral agree-ments. That openness has resulted in an increase in agri-food exports, which have gone from 8.2 billion usd in 2002 to 22.5 billion usd in 2012, with a compound annual growth rate (CAGR) of 10.6% between 2002 and 2012. That figure is proof of the huge penetration and accep-tance that Mexicos agricultural products have had in international markets, par-ticularly exports to its NAFTA trade part-ners, the US and Canada, and to countries in Europe and the Asia-Pacific region.
Furthermore, in terms of costs, Mex-ico is the fourth most attractive country for investment in the agri-food sector, ac-cording to the Competitive Alternatives 2012 study by consulting firm KPMG. That fruitful cost advantage has strength-ened Mexicos position as an agro-in-dustry investment destination with sev-eral investment incentives and accessible, high-quality inputs for the manufacture of products.
Said commercial success has also brought about more challenges for Mexi-can producers, who must continue to improve their cultivation processes and increase the quality of their products to compete internationally. With that goal
corn, mango, cantaloupe, potato, banana and papaya, among others. These systems have been created to comprehensively ad-dress the issues of the members of each crops supply chain and jointly strengthen the efforts of those involved in produc-tion chains to improve processes, technifi-cation and the supply of improved prod-ucts to demanding international markets.
Michoacn is one of Mexicos top ag-ricultural producers. It ranks first in pe-
rennial production and in 2011 the states output reached a value of 1.089 billion usd, which accounted for 7.1% of the national total, according to the Ministry of Agriculture, Livestock, Rural Develop-ment, Fisheries and Food (SAGARPA). A large part of Michoacns produce is sent to the global market to supply customers in the Americas, Europe and Asia-Pacific. The state is internationally renowned for its production of blackberry, guava, lentil,
cucumber, pear, lime, grapefruit, straw-berry, peach, plum, coconut and its lead-ing product, avocado, with an export value of 53 million usd.
There are approximately 7,312 com-panies in Michoacn that transform agricultural products, of which 16 are the leaders in frozen, dehydrated and lyophilized fruits and vegetables as well as fruit and vegetable pulp, among other goods. These leaders are mainly multi-nationals with foreign equity and sub-sidiaries in various countries in North America, Europe and Asia. Some of the industrial plants established in the state are Calavo de Mxico, S.A. de C.V. (avo-cado processing), Agrana Fruit Mxico (berries and mango processing), Pro-fusa (berries, mango and lime process-ing) and Simplot (avocado processing), among many other.
The outstanding success of Micho-acns avocado in the international mar-ket is based not only on its remarkable quality and nutritional properties but also due to its solid supply chain. For instance, the Association of Export-ing Producers and Packagers of Mex-ico (APEAM) is a clear example of the product systems of Mexican agriculture that strengthen the competitive position of the countrys crops and enable it to increase its exports year after year and introduce new products to new markets.
To sum up, Mexican agriculture has an incredible growth potential and is a strategic industry for international inves-tors seeking to boost their profits in an overtly healthy industry. n
*Promotion Director, Secretariat of
Economic Development (SEDECO),
Michoacn.
in mind, Mexico has created what are known as product systems, which are simply the set of concurring elements and agents of the production processes of agricultural products, including the sup-ply of technical equipment, inputs and services for primary production, storing, transformation, distribution and market-ing. In that sense, the success or failure of Mexican agricultural products depends largely on the appropriate coordination
of all the players involved in the supply chain. Thus, the creation of product sys-tems is aimed precisely at enhancing ag-ricultural production processes not only from a producers perspective but also providing an integrated approach that improves the processes of everyone in-volved in the supply chain.
There are several agricultural product systems in Mexico, such as agave, Hass avocado, lime, rice, cocoa, guava, lemon,
17
Negocios ProMxico |
16 June 2013
| Negocios ProMxico
June 2013
Mexico in the World Mexico in the World
by DIANA I. CASTAEDA*
Currently, US consumers demand a wide variety of high quality food, boosting the import of products that are not produced domestically. According to estimates by IHS Global Insight, US imports of agri-cultural products will reach 41.2 billion usd in 2013, exceeding the 41.5 billion forecasted for 2012.
In 2012, the four leading fresh veg-etable suppliers to the US were Mexico, Canada, China and Peru. Mexico was the leading exporter, providing 60% of fresh vegetables consumed on the US market.
In 2012, the US imported 17.6 mil-lion usd in fresh and processed foods from Mexico. The main categories were fresh vegetables, 4.4 million usd, fresh fruit (excluding bananas), 3.2 million usd, wine and beer, 1.8 million usd, and sweets including chocolate, 1 million usd, according to data furnished by the Global Trade Atlas (GTA).
That same year, in the fresh vegeta-bles category, Mexico exported 85% of tomatoes and 67% of eggplants, aspara-gus, celery and artichokes, among other vegetables demanded by the US market, which represent areas of opportunity for Mexican producers. The fast food sector
value. In addition, drinks must be lim-ited to 12 ounces (355ml) in middle and high-schools and 8 ounces (236ml) in elementary schools. Consequently, the sale of candies, foods or beverages that exceed these amounts is forbidden at cer-tain educational levels.
Commercial opportunities will be found in foods such as yogurts, popsi-cles and drinks with 100% natural fruit juices, whole wheat breads, cereal bars, dried fruits, baked snacks and plain and/or flavored sugar-free water.
is another niche of opportunity that Mex-ican companies must leverage to export.
Frozen potatoes, used to prepare French fries, are the third most imported vegetable in the US and accounted for 11% of total vegetable imports in 2012. It is worth noting that Mexico is the pri-mary supplier of potatoes to the US.
The value of US imports of fresh and processed fruits and vegetables un-derlines their importance in the diet of American families. In 2012, US imports of processed fruits and vegetables, in-cluding all kinds of juice, except wine, reached 6.7 million usd or 6% of total imports of fresh and processed foods.
The GlobAl ouTlook AnD FooD TRenDsWhile food prices globally fell by 7% in 2012, according to estimates by the Unit-ed Nations Food and Agriculture Orga-nization (FAO), they will continue an up-ward trend in 2013. Price falls recorded at the end of 2012 derived from the weak behavior of the global economic activity.
Climate factors, such as droughts, will affect food supply worldwide, mak-ing import activities an alternative op-
tion to guarantee local supply. Mexico is the second largest food seller to the US, after Canada. The US Department of Agriculture (USDA) in its Outlook for US Agricultural Trade 2012 reveals that fresh and processed fruits, vegetables, wines, sugar, coffee, cattle, grains and seeds will be the products with the larg-est share in US food imports in 2013.
According to projections from the aforementioned study, in 2013, cattle and dairy imports in the US will exceed 900 million usd. The trend will be to consume lean meats that are free of hormones and preservatives. Finally, preferences in the US market for the processed food sector will lean towards foods with little or no calories, fat, sodium, sugar, preservatives, coloring, flavoring and Monosodium glu-tamate (MSG), with natural and prefer-ably organic ingredients.
An example of these trends can al-ready be seen in the new USDA regu-lations to be implemented in public schools. According to these rules, snacks sold in cafeterias, vending machines and stores inside educational institutions, must contain fewer than 200 calories and contribute with a specific nutritional
Changes in consumer habits have af-fected the supply of fresh and processed food in the US. The North American market is a wonderful platform of op-portunities for businesses that are willing to adapt to the new regulations and offer nutritional, natural and organic products that meet the strict quality standards re-quired to enter into the worlds leading consumer market. n
*First secretary, ProMxico Office in Dallas,
Texas.
photo archive
Food Market Trends: An overview of north America
In the last decade, global trade, particularly in the food sector, has been affected by events such as price fluctuations, subsidies, exchange rate movements, economic agreements and changes in consumer incomes and habits which have forced countries to look for alternatives to satisfy the populations consumption needs.
In 2012, the US imported 17.6 million usd in fresh and processed foods from Mexico. The main categories were fresh vegetables, 4.4 million usd, fresh fruit (excluding bananas), 3.2 million usd, wine and beer, 1.8 million usd, and sweets including chocolate, 1 million usd, according to data furnished by the Global Trade Atlas (GTA).
19
Negocios ProMxico |
18 June 2013
| Negocios ProMxico
June 2013
Business Tips Business Tips
Mexican Agri-food Industry: An Ideal Business Meal
Mexico has significant comparative and competitive advantages over other nations in the agri-food sector. The countrys participation in the interna-tional trade of fresh and processed food is considerable and increasing. Some regions in Mexico, where natural resources are plentiful, offer interesting opportunities for agri-food businesses.
by MARA CRISTINA ROSAS*
The United Nations (UN) Food and Agri-culture Organization (FAO) is aware of the fact that the demand for food and agricul-tural products is undergoing unprecedented changes. The growing per capita income, urbanization and number of women in la-bor markets have increased the need for high-value commodities and processed and prepared foods. Evidently, this involves a change in societies eating habits, which poses significant challenges, particularly in the health arena. There is a trend, then, that favors the consumption of more animal products, such as fish, meat and dairy, which in turn creates a need for more feed grain.
No less important is the growing use of agricultural products, particularly grains and oil seeds, once intended for human and animal consumption, as raw materials for the production of bioenergy. There are fac-tors that prompt these significant transfor-mations in the global agri-food sector, name-ly international trade and communications, which accelerate changes in demand and in-creasingly lead to the convergence of dietary patterns and a growing interest in ethnic foods from specific geographical areas.
The participation of developing coun-tries in the international trade of non-tra-ditional fruits and vegetables has increased rapidly in recent years and considering that the global demand for processed foods is estimated at over 4,639 billion usd or three quarters of total food sales globally it is clear that the agri-food sector is becom-ing more and more relevant for countries such as Mexico.
In the last 25 years, most processed food sales have gone to high-income countries. However, developing nations have generated a percentage that is almost twice the added value in global production of the main cat-egories of products manufactured by agro-industries.
The agri-food sector in Mexico is im-portant and, according to data by the Na-tional Institute of Statistics and Geography (INEGI), accounted in 2012 for 8.1% of the Gross Domestic Product (GDP). The role of grain, fruit and vegetable production is of particular significance. In addition, the pro-cessed food industry creates highly relevant jobs and provides work opportunities that benefit more than 500,000 people around the country.
That is because Mexico has significant comparative and competitive advantages over other nations in the sector. For instance, the countrys weather conditions are favor-able for year-round production. Further-more, it has a competitive cost structure that gives it access to important markets. In ad-dition, Mexicos wide network of free trade agreements gives it preferential access to the US, the European Union and Japan, to name a few of the worlds most relevant markets.
Mexico also has a prestigious health sta-tus that is globally renowned and the dyna-mism of agri-food production chains make it one of the countries with the largest po-tential to open new markets both at home and abroad. Domestically, consumers have become more aware of the food they buy and eat, so that criteria such as sustainability and good production practices are already significant for their purchases.
Closely related to the transformation of the agro-industrial sector is the restructuring of retail food distribution markets, which in turn have been induced by this restructuring.
In that area, the growth of the supermarket sector is key. While supermarkets have long operated in a series of developing countries, that has generally been in large cities and fo-cused on a segment of wealthy or medium to high income consumers. However, since the 90s there has been a type of supermarket revolution in some developing nations and Mexico is no exception.
Retail trade in Mexico accounts for more than 70% of sales income, particular-ly the American Walmart Stores Inc., with its affiliate Walmart de Mxico, followed by local stores Soriana and Comercial Mexi-cana. The global retailer is responsible for over 50% of sales of personal items that are acquired in supermarkets, while the compe-tition between the other two chains is sup-ported by multiple factors: the continuous expansion of their facilities in Mexico; sales at lower prices (explained in part by the ac-quisition of stock at lower prices due to the high volume of goods they demand for sale); the partnership with the countrys dominat-ing retail firm wherever they go (Aurrer
photo archive
Closely related to the transformation of the agro-industrial sector is the restructuring of retail food distribution markets, which in turn have been induced by this restructuring. In that area, the growth of the supermarket sector is key.
21
Negocios ProMxico |
20 June 2013
| Negocios ProMxico
June 2013
Business Tips Business Tips
in Mexico) and the installation of storage and distribution centers (CEDIS) for perishable and non-perishable items, among other logistics, or-ganization and operational measures.
Mexicos agri-food sector has a very soft economic cycle with stable jobs and wealth creation. It is a very sensitive industry due to the special impact of food safety on the popula-tion, with high financial requirements to cover permanent transformation, transportation and storage costs.
The importance of the food market in Mexico is evidenced by the fact that in 2012, 26.4 bil-lion usd were spent on food imports. Forty-two percent of food consumed in the country was ac-quired abroad. Some of the most important foods acquired in the global market are soy (95% of to-tal consumption), rice (80%), wheat (56%), beef and pork (40%), corn (33%) and beans (20%).
In terms of exports, Mexico plays an out-standing role, for instance, in organic products. More than 750,000 tons of organic products are produced every year, of which 85% are sold abroad since that market is in expansion throughout the globe, particularly due to the health benefits it offers consumers and the low-er impact it has on the environment.
In 2012, most of Mexicos production was sent to the US, Canada and Japan, and some members of the European Union, proving the quality of the countrys products. In the domes-tic market, farmers still have a huge playing field, since the remaining 15% of production is distributed in supermarkets with conventional products and natural food stores, markets and cafes. That sector is expanding noticeably as consumers become more informed about the benefits of organic products.
Mexicos agro-industry is showing inter-esting trends. For example, agro-industrial products such as tobacco and beer have seen
a decrease in their production value. On the other hand, the agro-industries with the high-est growth in production value are corn milling, feed (balanced), wheat milling and edible veg-etable oils and fats. These are basic products in the Mexican diet and the increase in their value is in turn due to the increase in cost of raw ma-terials, which is a global trend.
There is another group of agro-industries with a sustained increase in production value and above the average of the larger food di-vision, beverages and tobacco: non-alcoholic sodas and beverages, meat products, coffee, industrial and artisan bakery and starches, all with double-digits.
Take the non-alcoholic sodas and bever-ages industry, which includes juices and bot-tled water. Today, it is the largest sector with close to 15% of the total value of the divi-sion, which relates to the fact that this sys-tem is based on a relatively cheap raw mate-rial in Mexico water. The water issue cannot be avoided in the analysis of the present and future of Mexicos agro-industry, especially when the northern part of the country, where the resource is scarce, has achieved outstand-ing agro-industrial development.
The southern and southeastern parts of Mexico are set to be the countrys agro-in-dustrial core in the near future as large corn processing plants, cold chains for food and the optimization of grain yield give these places comparative and competitive advantages. Why? Because available water resources are plentiful and that will enable innovations in crop development for both the domestic mar-ket and exports. n
*Professor and researcher in the Political and
Social Sciences Faculty, National Autonomous
University of Mexico (UNAM).
In terms of exports, Mexico plays an outstanding role, for instance, in organic products. More than 750,000 tons of organic products are produced every year, of which 85% are sold abroad since that market is in expansion throughout the globe, particularly due to the health benefits it offers consumers and the lower impact it has on the environment.
23
Negocios ProMxico |
22 June 2013
| Negocios ProMxico
June 2013
Cover Feature
Mexican agro-induStry: supplying food to the World
Productive oceans and fields, World Heritage gastronomy and a series of competitive advantages make Mexico a place of growth for the agro-industry.
by jESS ESTRADA CORTS
The richness of Mexican food, which has been declared Intangible Cultural Heritage by the United Nations Educational, Scien-tific and Cultural Organization (UNES-CO), lies in the wide variety of its products, which not only nourish its population but also an industry that is constantly expand-ing. This combination of tradition and mo-dernity brings to Mexico the ingredients to become a global agro-industry power.
Mexicos agro-industry has experi-enced rapid growth due to several fac-tors, such as its surface area, which pro-
vides the sector with a significant diver-sity of climate, flora and fauna, and its geographic closeness to the US, one of the worlds leading markets, which has boosted exports.
Mexico has become the second larg-est supplier of processed foods to the US; close to 80% of Mexican exports are des-tined for that market. Since 1994, when the North American Free Trade Agreement (NAFTA) came into force, agricultural exchange between both countries has ex-panded by close to 9% every year.
Mexico is the third largest producer in the Americas and eleventh exporter globally of agri-foods; more than 800 Mexican food products are present in in-ternational markets. Nine of the 10 lead-ing processed foods transnationals in the world have active presence in Mexico.
Considered a strategic sector, the agro-industry in Mexico is a broad um-brella under which several branches are included: agriculture, forestry, hus-bandry, apiculture, hunting, fishing, bio-technology, drinks (alcoholic and non-
alcoholic), sweets, tobacco, snacks and packaging. Mexico stands out as a strong exporter in the majority of these food product categories.
According to data from the Minis-try of Economy (SE), between 2003 and 2007 Mexicos agricultural exports grew by 12% on average every year, while im-ports increased by 11%. By 2010, Mex-icos agri-food exports were valued at 16.9 billion usd.
Mexico is among the top global ex-porters of products such as avocado, pa-paya, mango, processed peppers, organic coffee, tomato, Persian lime, aloe vera, cucumber and greenhouse peppers, to name but a few. It also plays a notable role in other areas, as the eighth largest meat product manufacturer in the globe and, in the area of alcoholic beverages, Mexican tequila and mezcal have been granted denomination of origin in recent decades and found a spot in the prefer-ences of many international consumers, becoming symbolic of Mexico.
Mexico also shows strength in pro-cessed foods exports, which account for over 18.4% of total sales abroad, and their growth rate has ranged from 18% to 20% annually, going mainly to Japan, the US and South Korea.
Mexico owes its export success to the agro-industry and processed food indus-trys compliance with the leading health regulations in the world, including Good Agricultural Practices (GAP), the Haz-ard Analysis and Critical Control Points (HACCP) certifications and the US Food and Drug Administrations (FDA) re-quirements.
Close To ConsuMeRsIn 2012, Mexico produced 123.95 million usd in processed foods, a 2.3% increase compared to 2011; the food industry ac-counted for 23.2% of the manufacturing Gross Domestic Product (GDP) and 4.1% of the countrys total GDP, explains Ar-mando Cobos Prez, CEO of the National Chamber of the Food Preserve Industry (CANAINCA), a business organization which affiliates food packaging industries.
CANAINCA is the meeting point for 45 companies, which together account for more than 90% of all bottled foods in Mexico, and which include important inter-national trading companies such as Coca-Cola, Campbells, Famesa, Herdez, Jumex, La Costea and Nestl, among others.
Cover Feature
Mexico is the third largest producer in the Americas and eleventh exporter globally of agri-foods; more than 800 Mexican food products are present in international markets. Nine of the 10 leading processed foods transnationals in the world have active presence in Mexico.
CANAINCA is divided into 12 prod-uct families, such as peppers in every vari-ety; juices, nectars and fruit drinks; infant foods; sea products like tuna or sardines; soups, creams and broths; mayonnaise and dressings; and fruits.
We produce food for general consump-tion [...] we are supplying the countrys pop-
ulation, there has never been a shortage of supply, says Cobos Prez, who remembers that in the chambers 26 years, none of its members has recorded negative numbers.
Cobos emphasizes the importance of the industry as a trigger for Mexican farmland, since in 2012 the amount of product we purchased from farms in-
photos archive
25
Negocios ProMxico |
24 June 2013
| Negocios ProMxico
June 2013
Cover Feature Cover Feature
creased by 15.1% to 6.2 million tons. Our sales increased by 5.7% [...] our exports by 10.1% and they are mostly sent to the US (85%) and the rest to Europe (4.5%), Central and South America (3.1%) and Asia (1.5%).
According to forecasts, between 2012 and 2020 the Mexican industrys production is set to grow at an annual average rate of 7.6%.
The growth of the processed foods industry in Mexico is due to its produc-
These competitive advantages have led to a constant growth in Foreign Di-rect Investment (FDI), where between 2002 and 2011 the accumulated value was 21.722 billion usd and in 2011 alone, attracted production capital reached 1.968 billion usd, according to data from the SE.
The Economic Commission for Latin America and the Caribbean (CEPAL) states that in the last six years, Mexico has attracted 18.142 billion usd in FDI for the agro-industry, equal to 38% of the total received by the region as a whole. In addition, it points out that two Mexican companies are among the 10 largest firms in the region, Femsa and Bimbo, which opened two plants in 2012 in Brazil and Argentina. Another relevant case, Gruma, inaugurated facilities in the US.
According to the SE, some major investments in Mexicos agro-industry come from the Italian chocolatier, Fer-rero, which announced in 2012 an injec-tion of 200 million usd to open a new plant in the state of Guanajuato.
The Hershey Company, the largest chocolate manufacturer in the US, also announced a 50 million-usd investment last year in Nuevo Len, in the north-eastern part of Mexico, as part of its ex-pansion with two new production lines to launch a new product.
Danone, the dairy leader, channelled 36.5 million usd to increase its produc-tion capacity in Guanajuato by 40% to manufacture new products and expand the production of its existing brands.
More recently, in May 2013, the global giant Nestl expanded its cof-fee factory in Toluca, Estado de Mxico (central Mexico), considered the largest in the world, with an investment exceed-ing 110 million usd. This will result in the creation of 900 direct jobs and ex-pand the plants production capacity by 30%. Nestl operates 14 factories in the country and 16 distribution centers.
All these bets are paying off. Ac-cording to data by Global Insight, food companies net operative gains for 2012 reached almost 28.339 billion usd, ex-ceeding reports by countries such as Bra-zil and Canada.
TRADITIonAl oR CuTTInG-eDGeMexicos agro-industry has also allo-cated significant amounts of production capital to cutting-edge biotechnology
Mexicos agro-industry has also allocated significant amounts of production capital to cutting-edge biotechnology that will enable it to create genetically
enhanced foods. In 2012, the country was ranked sixteenth globally in available land for genetically enhanced crops, with 421,000 hectares, mainly used for
cotton, corn, wheat and soy.
tion capacity, the creation of high added value goods, the availability of skilled workforce and inputs for the supply. In addition, there is a huge potential for ex-port supply in the sector, the industry has competitive manufacturing costs and the size of the domestic market is appealing for foreign companies who want to trans-fer operations to Mexico, says Cobos.
Moreover, the fact that Mexican cuisine is considered World Heritage is opening many possibilities to increase our exports [...] the interesting thing is that we do not ex-port maquila, our brands are something else.
The main destination continues to be the US, but we are reaching other markets, he adds.
CANAINCA is optimistic that it will sustain a 4% growth in real terms in 2013 since the industrial sector is on the rise and has done its homework in creating new products, exporting, tech-nifying, reinvesting in fixed assets, en-suring the supply of inputs through con-tract agriculture and by adding channels so that consumers can get to know the products, says Cobos.
The industrys modernization has been boosted by a fixed investment of 1.8%, which, according to Cobos, will enable them to surpass packaged foods indus-tries from anywhere in the word; further-more, companies have focused on creating new product packaging with a diversity of sizes and mixes to satisfy the needs of Mexican and international consumers.
The WoRlDs lARGesT CoFFee PlAnTArmando Cobos Prez thinks that the Mexican agri-food industrys competitive advantages lie in the population of over
112 million, mostly young people; highly skilled workforce; closeness to the US and emerging economies in South America, and we have practically every raw ma-terial, every possibility in the fields and oceans of Mexico.
Other strengths of the agri-food in-dustry are the more than 790,000 higher education students that are enrolled in engineering and technology programs, ac-cording to the National Association of Uni-versities and Higher Education Institutions
(ANUIES) in Mexico; the over 750,000 en-gineers trained to serve the industry and the alliances between companies and academia, which enable the integration of new tech-nologies into the food production chain.
In addition, according to Alix Part-ners 2011 US Manufacturing Outsourc-ing Index, Mexico is the most competitive country in terms of manufacturing costs, which are almost 21% lower than in the US and 11% lower than in China. In the processed foods industry, Mexico offers 14.1% savings in manufacturing costs when compared to the US.
that will enable it to create genetically enhanced foods. In 2012, the country was ranked sixteenth globally in avail-able land for genetically enhanced crops, with 421,000 hectares, mainly used for cotton, corn, wheat and soy.
At the same time, it is one of the larg-est producers of organic agriculture world-wide, a sector that grew out of rescuing traditional agricultural processes from Mesoamerican peoples. In 2012, Mexico was among the top 20 markets in terms of organic product sales, and is ranked third in the Americas. Mexicos agro-industry is a delectable mix of the past and future of food production. And now the table is set for the world to enjoy this new Mexican banquet. n
The Economic Commission for Latin America and the Caribbean (CEPAL) states that in the last six years, Mexico has attracted 18.142 billion usd in FDI for the agro-industry, equal to 38% of the total received by the region as a whole.
27
Negocios ProMxico |
26 June 2013
| Negocios ProMxico
June 2013
photo courtesy of catoex
by OMAR MAGAA
Mexicos Partner Mexicos Partner
BIG TIMe SolubleThe pioneers of decaffeinated coffee are still setting the pace in the production of the grains derivatives. Diversification and innovation are the pillars of Catoex.
Caf Tostado de Exportacin (Catoex) has accelerated its growth in recent years and is now brewing a new boost that will increase its robustness and double its size.
Headquartered in the city of Crdoba, Veracruz, one of the most important coffee production centers in Mexico, Catoex has invested several million usd in its value chain, from coffee fields and mills (humid and dry) through industrial plants such as decaf-feinated, soluble and roasted, to packing facilities. This year the investment in infrastruc-ture is above 10 million usd.
Gabriel Bobadilla, CEO of the company, says that Catoex has invested non-stop in the last four years and that, at the same time, it has focused on innovation fitting its main brand, Los Portales de Crdoba, launching new added value lines and creating products for multiple markets. In order to do so, the firm has leveraged the infrastructure, labs and research centers of two of the states main aca-demic institutions: the Tec de Monterrey Campus Central de Veracruz and the Universidad Tecnolgica del Centro de Veracruz.
Thanks to these efforts, Catoex now has more than 500 employees: 250 of them work in production, while the rest carry out their activities in the sales, exports and man-agement departments of the company that is considered a leader among businesses with Mexican equity that partici-pate in the coffee market.
The companys leadership is supported by its verticality the group has its own coffee mills, decaf, roasted and instant plants, as well as a caffeine refinery.
Part of Sanroke Group and active since 1974, the firm considers itself a pioneer in the implementation of technology for decaffeination in Mexico as well as in a roasted and soluble technology for this type of product: Los Portales and Kasinka coffee. The companys leadership is supported by its verticality the group has its own coffee mills, decaf, roasted and instant plants, as well as a caffeine refinery. That has given it the versatility to participate in multiple niches and maintain its exporting profile for over two decades.
CoFFee FoR All Through its brand Los Por-tales de Crdoba, Catoex sells agglomerated soluble crystal coffee (regular and decaf), mixed soluble, soluble for cap-puccino and roasted-ground (from decaf to organic to fair trade, etc.).
Furthermore, Catoex offers machines in concession for of-fices, hotels and industries and sells them coffee. It also sells roasted coffee in bulk to firms that use it as raw material, such as baking companies or manufacturers of cappuccino-flavored solutions, and does tolling of soluble coffee for national supermarkets and international brands that have placed its product in more than 20 countries.
According to Bobadilla, Catoex exports 60% of its pro-duction and external sales of its own brand account for only 5% of its exports. The com-pany exports to the US, Central America, Canada, Spain, Israel,
Australia, Japan and China, among other relevant markets.
On the other hand, its posi-tioning in the domestic market gives it presence in every pos-sible corner of Mexico, says Bobadilla. Catoex has regional offices in Mrida, Guadalajara, Monterrey, Mexico City and Crdoba to meet the needs of its diverse portfolio of custom-ers, among which are super-markets, hotels, coffee shops, restaurants and offices.
As Bobadilla points out, for the Mexican market, the company has had to continue innovating and creating new products to gain a place in the heart of consumers who are not heavy coffee drinkers. He adds that the current challenge is to stimulate the consumption of coffee-derived beverages by promoting their health benefits.
In Mexico, Catoex has faced the habits of a soda-con-suming society and the strong
competition from multination-als that have a strong hold on the solubles market. At that juncture, innovation was key. For instance, last year, Los Portales de Crdoba added new technology for soluble coffee coffee crystals small flakes that enrich the drink with flavor and aroma on supermarket shelves.
The strategy has been to remain strong in foreign trade with soluble and roasted and
ground coffee, including its organic product. Its exports to the US, Japan, Canada, Austra-lia, New Zealand, Singapore, Israel, Saudi Arabia, Russia, Spain and China, among many other countries, have boosted the companys career through new certifications.
Catoex is ISO 9000:2008 and FSSC 22000 (Food Safety System Certification 22000) certified. The latter guarantees the safety of food products within a context of global trade. It has also been certified by JAS (Japanese Standard of Agriculture) and other entities that guarantee the quality of organic products, in addition to certifications by its own customers with third party audits, as well as support small coffee producers with fair trade products.
Bobadilla knows that the coffee market varies greatly with international prices that can suddenly change the num-bers of a commodity-focused firm. Therefore, Catoexs strat-egy has been to close medium-term supply deals with stable prices.
But Catoex has a big ad-vantage: the closeness of its supplies. By establishing in Crdoba, where the Grupo Sanroke, of which it is part, has worked storing and processing green coffee since 1925, the company is close to one of the best Mexican coffee beans and a network of small producers and firms that have tradition-ally bought and sold this priced product. n
www.catoex.com.mx
photos courtesy of la huerta
29
Negocios ProMxico |
28 June 2013
| Negocios ProMxico
June 2013
A HeALTHY & GReen JOuRneY ToWARD SuSTAINAbIlITY
La Huerta is one of Mexicos leading frozen vegetable exporters to the US and Canada. From humble beginnings, the company leads the way, not only in production and sales but also in social and environmental responsibility.
by GRAEME STEwART
In the middle years of the last century 1956 to be exact Jos Arteaga Campos went out into the fields with two mules and began plowing. By the 1960s, he had bought the land and by 1975 he was exporting frozen vegetables to the US and Canada.
These were the humble beginnings of La Huerta, a company that is now at the forefront of the Mexican fresh and frozen vegetables
export business, which is worth 10 billion usd to the Mexican economy.
Today, La Huerta is still a 100% family owned Mexican company, led by the founders sons, that produces organic and pesticide-free broccoli, cauliflower, spinach, carrots, onions and corn using the most advanced water tech-nology at farms located in the states of Aguascalientes, Jalisco and Zacatecas. tion for excellent quality and
responsibility by its custom-ers, the Mexican government and international organiza-tions. And while this perfor-mance has caught the eye, La Huertas domestic business is also thriving, capturing a high percentage of the Mexican frozen vegetable market. The firm has expanded its prod-ucts of choice to include other types of frozen foods, such as dinners, veggie burgers and onion rings. The company ex-pects sales this year to be split almost 50-50 between the domestic market and exports.
After more than 50 years of experience, La Huerta has become the master in its field. Our philosophy is to freeze within 24 hours of harvest-ing. If you do not succeed in freezing within that crucial time frame, levels of nutri-ents and vitamins deplete. La Huertas vegetables are at the peak of freshness by the time they are harvested, processed and shipped to our customers around the world.
The firm looks upon its employees as part of its extended family. Commit-ted to social sustainability, La Huerta provides workers with free healthcare, medica-tion and education. More than 500 scholarships a year are awarded to employees children and a daycare center is also available, not to men-tion an interest-free home loans scheme.
The companys exports and sales have grown hand-somely and La Huerta now offers a large range of high quality products that sell un-der its own brands (La Huer-ta, Little Farm, Nutriverde and Nutrifresco, among oth-ers) as well as under private labels for the leaders of the retail and club store markets worldwide.
La Huerta has received numerous best supplier awards, as well as recogni- Such success takes a great
deal of planning, strategy and innovation, in environmental and social responsibility as well as production and mar-keting.
Katrin Derntl, La Huertas B2B Coordinator, is proud of the companys achievements. She speaks of its modern wa-ter systems, introduced under La Huertas sustainability program, and says: For La Huerta, water is one of the most critical resources, so we have implemented a number of innovative systems in or-der to help preserve it. The highest impact is definitely achieved by La Huertas water saving, drip irrigation system that uses up to 70% less wa-ter than traditional gravity irrigation, reducing costs and conserving clean water for thousands of families in the surrounding communities.
That innovative system increases productivity as nutrients are taken to the plant more effectively. Other water saving measures we use
are hydroponic greenhouses and rainwater harvest as well as water saving measures during processing, Derntl continues.
La Huerta has also be-come an expert in biological pest control, of which Derntl says: In 1995, our farmers embarked on a mission to find a better way to control pests. Weve been using ben-eficial bugs to keep harmful ones at bay ever since. By applying natural parasites, which we develop and grow in our own laboratories, we managed to reduce our de-pendence on chemical pest control to less than 6%. That way, our farm workers are kept from being exposed to over one million pounds of dangerous chemicals each year and at the same time we increase the quality of our products. Its all part of our commitment to bringing the public the freshest, most natural foods. The savings we make by reducing pes-ticide and fertilizer use, are
Mexicos Partner Mexicos Partner
The companys exports and sales have grown handsomely and La Huerta now offers a large range of high quality products that sell under its own brands (La Huerta, Little Farm, Nutriverde and Nutrifresco, among others) as well as under private labels for the leaders of the retail and club store markets worldwide.
reinvested in our social sus-tainability programs.
And what of these social programs? Derntl explains: We take caring for our em-ployees very seriously as they are our extended family. Our workers enjoy free on-site healthcare and medication for themselves and their families, a state-of-the-art daycare cen-ter, scholarships for their chil-dren and interest-free loans to help them build a home.
For La Huerta, educa-tion is the key to helping our employees and their families getting further in life. We offer a scholarship program that supports all of our em-ployees children with aca-demic potential and, in 2013 over 620 will take advantage of it. We even founded our own La Huerta Education Center where our employ-ees have the opportunity of finishing their elementary school, middle school and high school, she adds.
Even the growers that supply La Huerta are not forgotten in the firms far reaching social responsibility program. La Huerta goes one step further in pursuit of social sustainability, investing actively in the development of our growers. In order to create wealth and develop en-trepreneurship, we offer our growers financial support, including loans, to finance new equipment and materials as well as free technical train-ing that helps them achieve higher yields and better qual-ity, Derntl says.
There is something very Mexican in La Huertas fam-ily values, values that have helped the company prog-ress to the top of its indus-try since the day that Jos Arteaga Campos took his two mules into the field and started plowing. n
www.lahuerta.com.mx
31
Negocios ProMxico |
30 June 2013
| Negocios ProMxico
June 2013
by ANTONIO VzqUEz
Mexicos Partner Mexicos Partner
AMeLL BIOACTIvOS: The PoWeR of bee-KeePINg
A Mexican company uses bee-made food to create energy products and intends to explore Asian and American markets in the short term.
Agustn de Alba shows confidence when discussing Amell Bioactivos portfolio. He says all of its products are completely natural and have health benefits since they increase energy levels, improve the immune system and help reduce stress.
For close to three years, Amell Bioactivos, a Mexican com-pany that produces organic foods, has focused on develop-ing a parent formula based on honey, pollen, propolis and royal jelly that it now seeks to introduce to markets such as Japan, the US, Argentina, Ven-ezuela and Colombia.
Our most sophisticated product is Amell Poder. It con-
tains honey, pollen, propolis and jelly and is a 100% energy product. The molecular inte-gration of the formulas ingre-dients took a long time because they would separate complete-ly. We have not found another product like this one in Mexico and it is still unknown in the rest of the world, says Agustn Carlos de Alba Ramrez, CEO of the firm.
After Amell Poder, the company based in the state
of Aguascalientes has created 15 more products: six bioac-tive foods and nine cosmetic products.
Agustn de Alba shows confidence when discussing Amell Bioactivos portfolio. He says all of its products are completely natural and have health benefits since they in-crease energy levels, improve the immune system and help reduce stress.
They have measurable health benefits and no side effects. They help increase energy and vitality, reinforce the immune system, mitigate
the effects of stress, regulate the activity of the circulatory system, rid the body of toxins and reduce bone and muscle deterioration, he says.
De Alba and his partner, Ral Adames Carbajal, had worked in food sectors that produce vegetables and other organic substrates, until they finally decided to explore bee-keeping and bee-made food.
Thus, in 2010, Amell Bioactivos began operations. Initially, the firm focused on researching the products it wanted to develop. A year
later they began testing the formulas and by mid-2012 they were already selling bioactive foods. The cos-metic product line was just launched during the second quarter of 2013.
Among other things, Amell Bioactivos cosmetic product catalog focuses on hair care, cell antioxidation and skin hydration.
We developed that line of cosmetic products to help people, to contribute with stability and benefits for the body, explains Ral Adames.
Currently, Amell Bioactivos presence in Mexico is signifi-cant. Agustn de Alba explains that the company has already received requests from custom-
ers in Japan, Argentina, Venezu-ela, Colombia and the US.
We are analyzing these offers and solving challenges in terms of both technology and negotiations and we hope to export our products to those countries in the short term. Furthermore, we plan to partic-ipate in an international show in Germany in October 2013, says Agustn de Alba.
The entrepreneurs say they have found advantages in oper-ating and investing in Mexico, especially in the state of Aguas-calientes.
Mexico, particularly Aguascalientes, has very fa-vorable conditions due to its geographic location and infra-structure, the stability of its
currency and the facilities and incentives offered by the state and federal government to get started, organize and develop the challenges we face, con-siders de Alba.
The impresarios state that to all of these advantages should be added the capacity of human resources in Mexico as well as the talent, knowledge, creativity and productivity that they apply to multiple sectors of the national economy.
According to de Alba, the combination of these elements results in great development expectations.
Amell Bioactivos is cur-rently researching and design-ing five new products. One of them is dairy food containing
the firms parent formula, Amell Poder.
The company also plans to launch a new line of food prod-ucts with high antioxidating properties that are also gour-met, according to Ral Adames.
Our development per-spectives are practically limitless, especially after the scientific discoveries on bio-active and functional foods, probiotics and prebiotics. The number of possibilities has multiplied, generating a wide scope of action to de-velop applications that are increasingly diverse and spe-cialized, concludes Agustn de Alba. n
www.amellbioactivos.compho
to
ar
ch
ive
pho
to
be
rn
ar
do
ve
la
sco
va
ld
ez
photos courtesy of eco agritec
33
Negocios ProMxico |
32 June 2013
| Negocios ProMxico
June 2013
eCO AGRI TeC: CluSTeReD gRoWTh Demagogy apart, there is strength in numbers. Eco Agri Tec, the horticulturist partnership, is like a ship that eludes the storm thanks to collaboration between producers.
by OMAR MAGAA
Weaving collaboration net-works is an excellent strategy to protect assets against eco-nomic or climate variations, especially with agri-food products, which depend on sunlight and rain.
Vegetable producers from Rioverde, Ciudad Fernndez and San Luis Potos form the Eco Agri Tec cooperative partnership. They are shielded under the greenhouses where they grow export gourmet tomatoes: elite Roma tomato on the vine (TOV), beef, grape and cocktail, as well as or-ange, red and yellow peppers.
The 35 agri-business own-
ers who make up Eco Agri Tec join forces to invest, take care of production and look for sales channels, protecting themselves from unexpected circumstances such as price falls and climate conditions that affect even protected horticulture.
The partnership was es-tablished in 2001 as a result of the uncertainty in open air production, especially for vegetables, explains Jos Alfredo Lpez Cardona, chairman of the Board of Directors.
Eco Agri Tec is sustained by the working relations
established between the part-ners and the ties they have made with other players in the agricultural production chain, especially in sales and technological innovation.
For four years, the part-nership operated with green-houses of the government of San Luis Potos and the Centro de Produccin y Co-mercializacin AgroIndustrial Invernadero de Santa Rita, which exports large volumes of red gourmet tomato to the US and Canada.
Eco Agri Tec has an agreement with Pure Flavor, which distributes 95% of the specialty tomato it pro-duces in its 10 hectares of greenhouses. The cooperative delivers the product in San Luis Potos and Pure Flavor transports it to its two ware-houses in San Antonio, Texas, and Detroit, Michigan, and places it in North American supermarkets.
We are trying to work as best we can and deliver qual-ity product, says Jos Alfredo Lpez. [Pure Flavor] has told us many times that they want us to grow together we in our greenhouses and they in their supermarket sales.
Chairman Lpez Cardona sees the relationship with the marketing company as a deal between equals. Pure Flavor has only been active for a few years but is slated to become a huge competitor. Eco Agri Tec is also gradually grow-ing; it has reinvested profits to acquire new hectares to build more greenhouses and begun its conversion into a storage center for other pro-ducers, which places it at the mid-point between tomato production and its departure for sale abroad.
During visits that Jos Alfredo Lpez and his part-ners have made to Boston and New York as part of Pro-Mxicos trade missions, they
Mexicos Partner Mexicos Partner
have established commercial contacts that Pure Flavor is following up on to open new niches for Mexican tomatoes. Thus, the idea of growing together takes shape.
Furthermore, the coopera-tive is part of the Red Poto-sina de Tecnologa Agrcola that brings together technol-ogy and agricultural supply companies, universities and research centers such as the Centro Potosino de Ciencia y Tecnologa (COPOCYT) and the Instituto Potosino de Investigacin Cientfica y Tecnolgica (IPICYT) in a single goal: to develop the knowledge and advanced utilities required by protected horticulture.
Since its creation, Eco Agri Tec has been counseled by the National Agri-Food Health, Safety and Quality Service (SENASICA) in matters re-lated to infrastructure, staff training in contamination risk reduction, microbiology, food diseases and good practices. Other entities such as the National Council of Science and Technology (CONACYT) and Koppert have worked with them on traceability and business plans.
That has helped the coop-erative to obtain certifications from SENASICA, Mxico Calidad Suprema, SQF 1000 Level 3 and C-TPAT, which allow it to venture calmly into the demanding and competi-tive North American market of specialty vegetables. The com-pany is preparing to obtain the ISO 9000 certification.
Lpez Cardona looks favorably on universities and technological institutes in the area that encourage programs related to agricultural man-agement, protected horticul-ture, plant nutrition, plagues and diseases. The new grow-ers that Eco Agri Tec needs in its greenhouses will come from there, he says.
oveRCAsT DAysEco Agri Tec is recognized worldwide for the technology of its greenhouses, which have hydroponic systems, multispan protection modules and heat-ing. That enables them to use water efficiently, control plant diseases, isolate the product from soil problems and har-vest more.
If it is overcast every day, even if you have the best technology, any greenhouse stops producing with quality, adds Jos Alfredo Lpez. He says that in 2012, Eco Agri Tec struggled to export tomatoes with uneven coloration and
green spots. That was due to many cloudy days.
He remembers that in that year, the cooperative sent a large part of its production to the domestic market, when normally they leave only 5% to 8% of their packages in Mexico.
In 2011 they experienced another setback when tomato producers from the coldest areas in the US, where the fruit does not grow regularly dur-ing the winter, were blessed with good weather, producing and selling their own products and affecting exporter prices. There was excess production
Eco Agri Tec has an agreement with Pure Flavor, which distributes 95% of the specialty tomato it produces in its 10 hectares of greenhouses.
worldwide and prices plum-meted. Not even distributors respected the contracts, ex-plains Lpez Cardona.
Those moments were pre-cisely what made the partners realize that strength lies in numbers. Eco Agri Tec contin-ues to yield positive results; it employs 300 people from Ciu-dad Fernndez and produces close to 3,815 tons of tomato every year (the combined sum of its multiple specialties) and it seems that it will have more control on foreign profit shortly. n
www.ecoagritecinvernaderos.com
photos archive Mexicos Partner Mexicos Partner
35
Negocios ProMxico |
34 June 2013
| Negocios ProMxico
June 2013
S O S: The elITe IN PRoCeSSeD fooDS TeChNologYS o S Alimentos is a Mexican producer of easy to prepare dry food. The company exports 99.9% of its processed foods output.
by ANTONIO VzqUEz
The technology we use is the Rolls Royce of dehydration, says Germino Villanueva, CEO of S o S Alimentos, a Mexican company that pro-duces and exports freeze dried foods throughout the Ameri-cas, Europe and Asia.
S o S began in 2006 as a university project. It was the final thesis of students at the Instituto Tecnolgico de Mo-relia, which involved develop-ing technology to dry foods that are plentiful in Mexico, maintaining their nutritional properties for export and consumption in other parts of the world.
Their technology has been perfected. Villanueva describes the process: The product is frozen and put in a high vacuum system that does not degrade it. It is then dried and the water is removed, leaving a product with the same flavor and nutrients it had when fresh.
S o Ss flagship product is avocado. The fruit, which is grown almost everywhere in Mexico, has too much oil, which complicates the process of extracting water from it. But instead of being an obstacle, that has been a challenge for the Mexican firm. Thanks
But the truth is that this Mexican business offers something that goes beyond opening a package and adding water to its contents. S o S has also thought about creat-ing food solutions for extreme situations.
Our products require no refrigeration so we have even thought about natural disasters, when power is out or in places where there is no access to power and re-frigeration is not an option, explains Villanueva.
The companys products have several certifications, like the organic food certification from the US Department of Agriculture (USDA Organic), the certification from the US
Ethical and Environmental Certification Institute (ICEA) and a US acknowledgement of Good Manufacturing Prac-tices (GMP).
In six years, S o S has increased its research pool almost fourfold. The company has 15 people working on improving each product tech-nologically, convinced that human resources are a basic tool for their development.
S o Ss plan is to grow exponentially in the medium term, develop new products with new foods and find new market niches.
The good thing about Mexico is that raw materials are numerous: there is a fan-tastic variety and most of our
While there are similar companies that work with fruits and coffee in Mexico and other parts of the globe, S o S was the first to innovate with avocado. In 2012, the firms guacamole was named one of the most innovative products during the SIAL Food Show in Paris.
to their patented technology, avocados are dried, powdered, packaged and exported to countries such as the US, the UK, Belgium, Spain and Turkey.
We are now sending sam-ples to more than 60 coun-tries. I can say that 99.9% of our production is exported as we only have a couple of customers in Mexico, says Villanueva.
With our process, avo-cado remains the same but dried. Our product does not contain other ingredients. It can be preserved for up to one year and its preparation is very simple, you only have
to add water to enjoy Mexi-can guacamole practically anywhere in the world, he explains.
And while there are simi-lar companies that work with fruits and coffee in Mexico and other parts of the globe, S o S was the first to inno-vate with avocado. In 2012, the firms guacamole was named one of the most in-novative products during the SIAL Food Show in Paris.
From then on, S o S has explored working with other foods that it is now exporting as well, such as coconut and cacao, the plant used to pro-duce chocolate.
Gernimo Villanueva points out that investing in technology innovation is essen-tial for the growth of S o S.
Technology develop-ment is the foundation for us to remain competitive. The market for these types of products is almost untapped and ours is very new. We have invested heavily in research to improve and compete. If we had stopped with what we did in 2010, when we only worked with avocado, a larg-er company would have put us out of business. I think our success lies in constantly in-novating and identifying new market niches where there is no other available solution, he says.
customers demand organic products. That forces us to comply with international standards and certifications, which we have always done, says Villanueva.
We always say yes in our culture. That is how we chose the name of our com-pany. When someone asks us if we can do something, we say: Yes, we surely can! We have also found a great deal of support from government entities such as ProMxico to place our products abroad and the National Council of Science and Technology (CONACYT) to develop the technology, he concludes. n
www.avocadopowder.com
photos courtesy of naturkost de mxico
37
Negocios ProMxico |
36 June 2013
| Negocios ProMxico
June 2013
In just two years, the Mexican Naturkost has quadrupled sales of organic chia, a seed that abounds in Mexico and which the company exports mainly to the US, Canada and Germany.
by ANTONIO VzqUEz
Naturkost de Mxico can certainly brag about its close to 400% growth in sales in the last couple of years. The formula for its success? Sell-ing chia, a plentiful seed in Mexico that is rich in fatty acids like Omega 3 and con-
sumed in a variety of forms.The firm was established
in 2005. At that time, Alejan-dro Palacio, an undergraduate student at the Tecnolgico de Monterrey, worked from his classrooms to innovate the elaboration of organic prod-
Mexicos Partner Mexicos Partner
CHIA, The SeeD ThAT RAISeD NATuRKoST IN MexICo
Naturkost has innovated with other foods as well. It exports agave and inulin, pecans and walnut praline, sesame, dried coconut and some dried fruits such as mango and apple.
ucts. During a congress, Ger-man producers showed inter-est in what students in Mon-terrey were doing, Palacio included, and offered funding for several proposals.
A year later, in 2006, the German company Naturkost asked him to be their rep-resentative in Mexico to continue with the project to produce organic chia that he had begun during his time at university.
The product was already done but at that time, laws in Europe made it impossible to import and market it. They asked me to go to the US and Canada but our first sales were difficult, we barely sold two tons in 2007, says the now CEO of Naturkost de Mxico.
Naturkost de Mxico was officially established in 2008 to supply mainly the US and Canada.
Five years after opening its doors in Tlajomulco de Ziga, Jalisco, it produces close to 500 tons of chia ev-ery year. Of that total, 99% is exported to countries such as the US, Canada, Peru, Ger-many, Israel, Australia and Malaysia.
The product is very pop-ular now. In 2007, we only managed to sell two tons. This year we reached 500 tons in annual sales just in chia. The seeds main benefit is its high content of fatty ac-ids like Omega 3 and Omega 6, much more than flaxseed. That has been its main ap-peal, in addition to its high fiber and antioxidant content as well as other health ben-efits, explains Palacio.
Naturkosts guiding prin-ciple is quality. And that is something that can only be accomplished through certifi-
cation, according to Palacio. Naturkost de Mxico has the German BCS ko-Garantie certification for organic products, as well as Israels Kosher certification and ISO 22000 for food safety. These and other certifications guar-antee the firms processes, which range from cleaning the seed to grinding it for consumption.
Naturkost has innovated with other foods as well. It exports agave and inulin, pecans and walnut praline, sesame, dried coconut and some dried fruits such as mango and apple.
We ask Palacio: Chia is widely consumed in Mexico but what is it used for in other countries?
Many clients use it for cereal, granola bars and bread. For example, in Germany it is used in bread making, for multigrain bread. In South Korea they use it to make chia granola bars. Some customers make cereals and there is a
market that extracts chia oil to produce Omega 3 capsules, he explains.
And while globally, com-panies in Bolivia, Argentina, Peru or Australia use a pro-cess similar to Naturkost de Mxicos, the Mexican corporation is the only one to apply it with organic products.
The company is growing. It currently has 15 employees and plans to open another process-ing line and a second ware-house in the medium term.
There are several brands of chia or agave nectar on the market but our added value is that we are certified organic, which means that our product is healthy and environmentally friendly. This gives Naturkost an incredible head start in a market such as the organic, which is developing and growing exponentially, con-cludes Palacio. n
www.organic-mexico.com
39
Negocios ProMxico |
38 June 2013
| Negocios ProMxico
June 2013
GRuPO veRSA: gRADuAl gRoWThThe needs of the land are endless. Every crop in every region is exposed to a series of variables that affect its yield. Grupo Versa, a company of plant health products, has come up with a solution to every problem.
by OMAR MAGAA
A glance at Grupo Versas plant health product catalog is enough to appreciate the companys growth and evolu-tion since 1980 and reaffirm its focus on innovation. As its COO, Fernando Vera ex-plains: Our firm has tried to offer more and more solutions over the years.
Based in Torren, Coa-huila, the company has not stopped working for more than 30 years but after a review of its expansion and diversification history, it is clear that it has done so with careful steps and securing each rung on its career ladder.
Grupo Versa began op-erating in 1980 as an agro-inputs distributor. Later, in 1984, it established its first phytosanitary product for-mulation plant to satisfy the demands of cotton crops in the Comarca Lagunera region. With the decline in cotton production in Coahuila in the mid-90s, the agri-business began to expand its scope and look for new opportunities, developing new products for other crops in other areas of the country.
Today, the company has distribution offices practically everywhere in Mexico. In the 90s, Grupo Versa expanded its liquid insecticide plant and opened facilities that special-ize in liquid herbicides and others in granules, fungicides and flowable pesticides. Then, in the 21st century, the firm added wettable powders, bio-
photo archive Mexicos Partner Mexicos Partner
fertilizers and seeds, to end 2010 with latest generation products.
In 2010 we installed a plant where we produce mi-croorganisms to control pests organically, says Fernando Vera.
That is Grupo Versas largest investment in a single line (3 million usd). However, it will result in high-end prod-ucts based on microorganisms that can be used in organic agriculture and integrated pest management.
We are presenting a com-plete alternative that uses mi-croorganisms to control crop plagues, whether they are due to plant disease or insects, explains Vera.
Although this is an in-novative line that will enable Grupo Versa to expand its customer portfolio abroad, Vera says that the strategy will be to advance slowly, analyzing each countrys re-quirements and making the necessary registrations in each of them. For the time being, they have focused on advertis-ing their products and review-ing the markets they could enter successfully. Although their first destination will be South America, they already have requests from producers in the Middle East.
In The WoRlDs FIelDsOrganic products, a field in which the company plans to continue researching and de-veloping new products, will be
ucts designed to control crop plagues, heal plants and gener-ate higher yields. Products also come in a long list of forms: wettable powders, emulsion concentrates, aqueous suspen-sions, soluble liquids, granules, miscible liquids and flowables. The catalog also contains do-mestic use solutions for insects such as mites, scorpions, spiders, bedbugs, cochineals, cockroaches, beetles, ants, flies, gnats, moths, silverfish, earwigs and mosquitoes.
We focus on innovation. We are developing new prod-ucts to penetrate the market and complement our line of latest generation products and different formulas and
we will undoubtedly expand our organic line, says Vera.
During testing and prod-uct development, Grupo Versa relies on public uni-versities and research insti-tutions from Mexico and abroad. Our products are well studied, Vera explains to those who point out the potential collateral effects of plant health products in agriculture. From his point of view, they are plant medicines that are needed to increase the efficiency of the land. Their raison dtre lies in the increasingly larger need to guarantee food for populations that are growing exponentially.
We focus on innovation. We are developing new products to penetrate the market and complement our line of latest generation products and different formulas and we will undoubtedly expand our organic line, says Vera.
the spear head that will enable Grupo Versa to venture outside of Mexico. Its presence in the foreign market is the result of a combination of direct and indirect exports, the latter made through plant health companies for which it operates as a toll formulator.
According to data provided by Grupo Versas COO, 70% of the firms production bears its brand, while the other 30% is produced for its trade partners.
Many of our inputs come from abroad and we process them to fit our customers needs, says Vera about the companys maquila profile.
The groups portfolio has a wide variety of prod-
In the case of micro-organism-based organic products, there are products with bad qualities or without registration that have affected the image in the market, he explains. Therefore, he underlines that a more strict observance from authorities is needed in that area.
That is why Grupo Versa has decided to penetrate the market gradually. For now, the company has registered five products and will continue with several more to complete the organic line for the markets it has already conquered and are awaiting its new technology. n
www.agroversa.com
41
Negocios ProMxico |
40 June 2013
| Negocios ProMxico
June 2013
FRuCASA: uNlIMITeD guAvAS
by OMAR MAGAA
photos courtesy of frucasa Mexicos Partner Mexicos Partner
Frucasa is sustained by the participation of 14 families who work individually in the field with food health and safety standards they have created as a group and are shareholders in the plant that purchases, collects, packages and sells the fruit.
Guava, the fruit with the highest vitamin C content, is expanding its transit routes in the US. Frucasa opened the doors for the extra nutritious pod in that market and is preparing for the imminent arrival of other players.
