TRADE MISSION MÉXICO AMHPAC as your Gateway to México Oscar Woltman De Vries President of National Council June 12, 2018
MEXICAN ASSOCIATION OF PROTECTED HORTICULTURE
AMHPAC AND GREENTECH What is AMHPAC? AMHPAC as your gateway to Mexico AMHPAC and technology
CHARACTERISTICS OF MEXICO Sixth place worldwide in protected agriculture with a surface of 40,862 hectares (ha), 25,398 ha with vegetables; 13,383 ha with fruits (berries) and 2,081 with flowers. High volume export (almost 3 million tons of tomato, pepper and cucumber) with production value of around 3,000 MDD. Given the diversity of climates and diversity of technology used in different regions, it allows production and export all year. Great generator of jobs (~ 400,000 jobs). 9.8 jobs / ha: 3.4 fixed jobs and 6.5 temporary jobs. The fixed jobs are increasing more. Basically 3 crops: tomato (66%), pepper (17%) and cucumber (16%). Industry of high investment, high risk and high profitability.
TRENDS Consumption shift from open field vegetables (42%) to protected agriculture vegetables (58%). The migration of other crops to this activity has intensified, specially soft fruits and avocado. Second and third generation family business. Greater automation and search for sustainability. Increase in some niche markets (organic, specialty, packaging). Search for processing technologies to create value added.
STRENGTHS Agrimercante Increased access to financing and insurance, through our own AMHPAC insurance fund. Food safety program and social responsibility. -STPS; BAMX; INEA; CONAFOR; Vitamin Angels; SS. Search for new markets, crops and value-added. - Shelf life - Value added
POLITICAL ENVIRONMENT NAFTA
Dependence on a single market
⁻ Sunset (termination). ⁻ Expiration of agreement (5 years). ⁻ Dispute settlement (dumping). Unacceptable to Mexico. They do not fly! ⁻ Agricultural temporality (seasonality). ⁻ Rules of origin (automotive). ⁻ Minimis.
POLITICAL ENVIRONMENT NAFTA There are 3 scenarios: 1. Optimistic: closes without affecting Mexican interests. 2. Agreement is signed giving in some aspects (Example: Automotive; Minimis). 2. Pessimist: falls, we will operate with rules of the WTO (fees ~ 3-5% for Mexico).
THREATS Agreement of “Suspensión Dumping del Tomate” The actual agreement just concluded at the beginning of March of 2018. Sunset Review started in December-January 2018. Without dumping agreement members will pay fee of 17.5% of the tomato week price. We have just received a proposal of Florida which is completely unacceptable. Negotiations will cover most of 2018.
OPORTUNITIES / PRESENT WEAKNESSES Public politics Improve response of the IMSS; INFONAVIT; SAT; Allocation of federal support, directing them to accomplish the goals established (Example: Strengthening of the internal market? The exports promotion? To crop diversification? To the value added?). Further enhance the Social responsibility. Moral obligation and issue of competitiveness. We will begin lobbying with new Congress. There is a study: Vision 2030 for the CNA.
PERSPECTIVES Industry will maintain a sustained growth of 10 - 13% (1,300 has / year) with or without TLCAN. Why? Climate change. USA can not supply its own demand. Population continues to grow and needs more produce. Increase in yields of 70-80% from open field to protected. Currently 7,500 million inhabitants growing to 9,500 m by 2050. FAO says that you are required to produce more with less. Opening of financial oportunities and insurance. Trends in consumption towards protected (Millennials), sustainable and safe produce.
AMHPAC AS YOUR GATEWAY TO MEXICO
We have 235 members, spread geographically over 22 states and using various technologies. Our members have more than 10,500 Ha and are growing 10% anually. We have annual congress. We organize monthly sponsor orientated workshops and webinars.
AMHPAC AND TECHNOLOGY Labour shortage. Water shortage. Need for value added processing technology.
Ing. Alfredo DĂaz Belmontes Director General de la AMHPAC alfredo.diaz@amhpac.org (667) 715 9868