TRADE MEXICO A PUBLICATION FROM EUROFRUIT
2013 / 2014
Spreading the word Mexico is working hard to build a global reputation to match the quality and diversity of its fruit and vegetable output OVERVIEW NORTH AMERICA EUROPE ASIA
TRADE MEXICO 2013 / 2014
Streets ahead of the rest ew York, London, Tokyo. The global economic crisis has impacted them all. Their culinary response? Street food revolutions. The rituals of fine dining replaced by gourmet burgers on the hoof – it makes economic sense in a recession. The chilangos of Mexico City have understood the value of comida de la calle for a lot longer. All Mexicans have. You’ll see taquerias and food stalls on the corners of every town. What you’ll also find is street fruit: floral papaya, buttery Ataulfo mangoes, bubblegummy prickly pears. And a hundred other product lines, always local and always with a splash of lime. Coming from the rest of North America, Europe or Asia you know you can’t replicate the supply chain that makes it cost-effective to sell Mexican fresh produce from the street, but you can get an idea about the quality and consumer appeal of Mexico’s fruit and vegetables. If you can’t get to a street corner in Mexico anytime soon, well, trade mexico has been there for you. And this supplement is where we tell you exactly what we found. We caught up with the berry producers of Jalisco, garlic growers from north-central states and the lime specialists in steamy Veracruz – and still we only skimmed the surface of a splendid product range. Believe us, the supply is there – it’s increasingly consistent as well – and, given the quality and certification, you can be pretty sure the demand will be too. With a little thought to the logistics of introducing them to each other – this is what government, exporters and overseas importers are now all working on – the relationship between Mexican fresh produce and international consumers will be a long and happy one. Welcome to the revolution. _
N
The supply is there and, given the quality and certification, you can be pretty sure the demand will be too
Tobias Gourlay Editor
Contents
Editorial
Shipping out around the world
2-3
Safety-first strategy pays dividends
4-5
Sharing a wealth of natural resources 6-7 Building the complete package
8-9
Beating the competition black and blue 10 Spurred on to diversify
11
Experience makes the difference
12
Time to get serious
14-15
Safari the next step
16-17
San Gabriel boosts European business
18
Flying high
20-21
Coliman celebrates 50 years
22-23
AGF steps up to export challenge
24
Tobias Gourlay +44 20 7501 3700 supplement editor tobias@fruitnet.com
Advertising Rodrigo Magdaleno +44 20 7501 3718 supplement manager rodrigo@fruitnet.com
Design Simon Spreckley +44 20 7501 3713 design manager simon@fruitnet.com Ligia Durán Murphy +44 20 7501 3715 senior graphic designer ligia@fruitnet.com Craig Bowyer +44 20 7501 0317 middleweight designer craig@fruitnet.com Cat Barylak +44 20 7501 3721 junior creative artworker cat@fruitnet.com
trade mexico 2013/2014
01
OVERVIEW REPORT —Production
Shipping out around the world mexico city—Japan and other Asian countries are likely to be markets of high sales growth for Mexico over the coming seasons, says México Calidad Suprema’s Juan Laborín. by Steven Maxwell
T
he huge potential of Asia for Mexican fresh produce exports could be realised over the coming seasons, with export organisation México Calidad Suprema pushing for greater access
following a strong 12 months in Japan. Headed by avocados, Mexico’s exports to eight Asian countries increased by a combined 11 per cent during 2012 compared with the previous year, with Japan a particular growth centre. The country achieved record exports to the East Asian nation in ten categories, including avocados, beer and pork prod-
hoping to repeat achievements already made in China,
ucts, with total sales up by 11.8 per cent year on year to
Hong Kong, South Korea and Taiwan.
approximately US$91.5m.
02
Mexico’s progress in Japan follows an impressive 12
México Calidad Suprema’s president, Juan Laborín,
months for the country in several major export mar-
says Japan is being viewed as a “high potential” market
kets, with sales rising in South America (32 per cent),
that could also act as a “launching point” for Mexican
Europe (3.8 per cent) and Russia (9.2 per cent), although
products that have already achieved success in other
exports to Canada dropped by 18.5 per cent. Despite the
Asian countries. He reveals that the organisation is
success stories, Laborín admits challenges remain before
trade mexico 2013/2014
OVERVIEW
Over the past year México Calidad Suprema has given commercial training to 800 producers in 20 cities According to Laborín, agricultural production in Mexico is continuing to rise, with output up by 22.1 per cent (or 3.1m tonnes) during April 2013 compared with the same month a year before. Aside from grain crops, one of the biggest recorded increases was ABOVE—Mexico is ready to capitalise on a strong 12 months in the Japanese market
in potato production, with the 2012
LEFT—Juan Laborín is aiming for governmental and societal joint thinking
harvest up on 2011 by 166 per cent (or 116,000 tonnes).
further progress can be achieved,
producers, while also increasing the
In seasonal crops, total produc-
highlighting the needs to increase
productivity and competitiveness of
tion climbed 26.4 per cent, with a
food production in order to guar-
our products.”
notable rise in orange production, which jumped 131.5 per cent on 2011.
antee food security and to improve
Laborín says México Calidad
the added value of Mexican pro-
Suprema, which is co-funded by the
As an organisation, México Cali-
duction in order to better compete
country’s fresh produce sector and
dad Suprema is undergoing restruc-
globally.
the government, has made consider-
turing during 2013, with the aim of
He believes Mexico can only con-
able progress supporting producers
offering associated producer mem-
solidate its position as an export force
to increase productivity and improve
bers a “more complete” certifica-
for agro-food products if it adapts to
the competitiveness of their products
tion system to meet global supplier
new consumption trends and pro-
through training.
demands.
duction forecasts, while taking into
Over the past year, he says the
A total of 720 associated producers
account climate change and improv-
group has carried out commercial
are now certified under Mexicogap
ing logistics to access new markets.
training for 800 producers in 20 cities,
and México Calidad Suprema’s own
“To do this, we must overcome
taking “full advantage” of the trade
certification, representing an increase
structural and short-term obstacles
negotiations Mexico has undertaken
of 28 per cent on 2011. _
by achieving institutional, govern-
worldwide.
mental and societal joint thinking, so
A further 650 producers have also
we are all able to focus our economic
been given training in carrying out
and human resources in a combined
proper planning, logistics and expor-
strategy to consolidate and open
tation, while 515 producers have been
markets.
shown how to reduce contamination
“Among other things, this will
risks and implement Good Agricul-
allow us to diversify exports and
tural Practices to achieve Mexicogap
strengthen the capabilities of our
certification.
trade mexico 2013/2014
03
OVERVIEW
REPORT —Safety Senasica has also put in place Contamination Risk Reduction Systems designed to offer healthy and high-quality foods at national and international levels. “Through an official prevention initiative, Contamination Risk Reduction Systems are being implemented from initial production through to the packing and transportation of fruits and vegetables from Mexico.” This initiative, Fragoso says, is focused on reducing the risk of contamination during fruit and vegetable production and covers 16 elements including company reg-
Safety-first strategy pays dividends mexico city—After high-profile salmonella cases in the US and Canada linked to Mexican mangoes, the national government is keen to demonstrate that progress has been made. by Steven Maxwell
T
he dangers of contami-
National
Service
for
istration, their history, water use, ABOVE—
nated fruit and vegeta-
Health, Food Safety and Agricultur-
bles were highlighted in
al Food Quality – better known as
July 2012 when 105 people in the
Senasica – which says it has been
US and 80 in Canada were affected
working to improve safety stan-
improvements
reduce the danger of the microbi-
by a salmonella outbreak linked to
dards, from the largest growers to
TOP LEFT—
ological, chemical or physical con-
contaminated mangoes that were
poor, rural farmers.
By safeguarding
tamination of food taking place.
traced back to a producer in the Mexican state of Sinaloa.
04
country’s
Although food safety issues are not the direct responsibility of
Senasica has been pushing through food safety
production, the agency can help the industry avoid
hygienic practices, traceability, fertilisation and damage to wildlife. “The initiative enables us to
Moreover, when a suspected contamination happens, an immedi-
A year on and, although the
Senasica, the agency’s Hugo Frago-
memory of the outbreak lingers,
so says it is working to protect
to identify the origin of the prod-
Mexico’s authorities say they have
Mexico from foreign pests and dis-
uct concerned and reduce the risk
been making progress in improv-
eases by safeguarding Mexican food
of further contamination.”
ing food safety standards across the
production and, through this, avoid-
country to try to make incidents
ing supply problems that could lead
PEST CONTROLS
of this kind a thing of the past.
to shortages of some of the most
However,
These efforts are being led by the
important foodstuffs.
es remain a major problem for
trade mexico 2013/2014
supply problems
ate plan of action is put in action
pests
and
diseas-
OVERVIEW
Mexican growers. According to a report in regional daily Cambio de Michoacán, around half of the vegetable producers in Michoacán state have experienced major problems with pests, principally potato psyllid, which has caused significant losses to potato, tomato and chilli pepper crops. Some 14,612ha fall prey to the
Vegetable health committees in every state of the country offer producers technical support for controlling pests and diseases
greening, which has been detect-
These
citrus greening.
initiatives
have
been
ed in 25 of the region’s 920 citrus orchards, equivalent to 2.7 per cent of the production area. To limit the spread of the disease, the organisation has been using chemical and biological pest controls to tackle the presence of Asian citrus psyllids, the insect which spreads
pest every year, with total losses
undertaken with vegetable health
Looking at the longer term,
estimated to reach more than
committees in every state in the
Fragoso says one of the biggest
US$24m a year in wages and
country, through which producers
challenges for Mexican growers is
lost sales. Separately, around 4,800ha
are offered technical support for
going to come from climate change,
of citrus groves are reported to have
controlling pests and diseases.
with frost and drought damage
been affected by citrus greening in
Fragoso points out that white-
becoming ever more frequent and
the southern state of Quintana Roo.
fly and potato psyllid, the most
happening unexpectedly in major
In response, Fragoso says Sena-
common pests for vegetable pro-
production zones.
sica
agriculture
ducers in Michoacán, do not fall
For this reason, he says the Mexi-
department (Sagarpa) have car-
and
Mexico’s
under government regulation and
can authorities are putting in place
ried out phytosanitary campaigns
are therefore the responsibility of
support programmes to compensate
against pests that have an “eco-
the producer.
men and women working in the
nomic impact and limit national and international trade”.
He says Senasica is working in Quintana Roo to control citrus
countryside and to maintain levels of production. _
The difference is...
quality & experience
T: +52 (232) 324-0920, Libramiento Martinez-Tlapacoyan S/N. E: bsgrupoexportador@bsgrupoexportador.com.mx Col. Las Palmas. C.P. 93600. Martinez de la Torre, Ver. Mexico.
www.bsgrupoexportador.com.mx
lime ad.indd 1
trade mexico 2013/2014 09/07/2013 09:40
05
OVERVIEW
INFOGRAPHIC —Exports
Sharing a wealth of natural resources EXPORT VALUE (US$ ‘000)
2012
2011
CANADA Avocados 59,713 56,619
Berries 758 255
Tomatoes 51,201 207,586
Other lettuce 59 265
Coconuts 109 18
Garlic 346 226
Grapefruit 501 261
Limes 1,578 2,030
Onions 460 509
Papayas 95 387
Pineapples 3.30 7.44
Mangoes 25,666 23,511
Asparagus & broccoli 7,891 4,052
Avocados 763,212 772,606
Bananas 9,232 5,739
Berries 803,130 589,304
Mangoes 202,375 135,158
Asparagus & broccoli 292,016 312,877
Carrots 282,078 242,977
Limes 201,648 236,135
Papayas 63,813 46,123
Pineapples 23,821 17,134
Cucumbers Pumpkins & courgettes 1,203 384 551 437
Tomatoes 1,650,159 1,883,025
Onions 285,875 275,690
Watermelons Pumpkins & courgettes 27,015 258,987 30,293 258,673
Table grapes 156,052 136,513
Cucumbers 410,357 269,309
UNITED STATES mexico city—The US dominates Mexico’s export charts, of course, but the latest figures reveal a willingness to experiment – with new products and new markets. by Tobias Gourlay 06
trade mexico 2013/2014
OVERVIEW
Source: Aserca - Sagarpa
EUROPEAN UNION
Garlic 3,763 3,060
Chicory & endive 0.00 237
Coconuts 6.38 2.01
Bananas 4.29 6.05
Tomatoes 86 0.25
Pineapples 4.83 16.80
Avocados 7,626 5,446
Grapefruit 5,821 8,316
Limes 63,945 13,308
Onions 3,584 4,027
Papayas 33 2.02
Berries 32,684 25,302
Mangoes 4,015 5,490
Asparagus & broccoli 688 1,598
Avocados 96,990 84,834
Berries 4,267 845
Cashew nuts 8,105 4,792
Papayas 0.09 1.17
Tomatoes 122 165
Garlic 0.00 1.35
Grapefruit 0.00 137
Lettuce 0.01 0.00
Limes 1,379 1,814
Mangoes 2,754 8,822
Pineapples 0.00 22
Table grapes 593 40
Carrots 129 355
Asparagus & broccoli 4,747 4,858
Pumpkins & courgettes 8,670 6,716
EAST ASIA trade mexico 2013/2014
07
NORTH AMERICA INTERVIEW —Production
Building the complete package guanajuato—Managing director Miguel Usabiaga answers questions about Mr Lucky’s quest to be a leader in the production, development and distribution of high-quality Mexican fresh produce. by Tobias Gourlay
M
exican-owned Mr Lucky grows
capacity of our processing plant –
fresh
and
for fresh produce and our fresh-
fresh-cut salads in central and
cut salads – by more than 100
northern Guanajuato. With a pro-
per cent. We have already begun
cessing plant in the south of the
installing sustainable equipment,
state and distribution centres in
such as solar panels, that allows
four big cities around the country,
us to reduce power consumption.
vegetables,
berries
it sends produce to supermarkets across North America and beyond.
Any other upcoming plans and goals you want to talk about?
What has Mr Lucky been up to recently?
MU: We are about to install a production line that allows us to
Miguel Usabiaga: We’ve kept our
innovate in the packaging of our
commitment to introduce technol-
products, so that we can present
ogy across the production process
different products in different
and, by improving the collection,
ways. We will be strengthening the
treatment and care of water, we
development of new products and
now have 100 per cent drip irriga-
presentations according to market
tion technology in all our fields.
needs and customer needs.
Meanwhile, overall production
08
And
our
distribution
net-
OPPOSITE—Promotional work focuses on
has increased 10 per cent in 2013.
work within Mexico is growing:
the quality of Mexican garlic
By 2015 we plan to have raised the
it currently reaches more than 50
trade mexico 2013/2014
NORTH AMERICA
How have your destination markets behaved this year? MU: They have been very erratic. It would seem that the consumer is thinking twice or more before making a decision. But there is still great potential in Asia and South America, and at home in Mexico. You’ve been making moves in the berry business too. What’s the news on that front? MU: Right now, berries is only a very small percentage of our business, but they are products with high growth rates around the world – I think berries is the only category achieving double-digit growth for supermarkets. So we believe that our brand should be present in this category. Anything else you want to add? MU: We are very proud of all of the certificates that help to bring our products to international markets, confirming the agriculture cities with more than 1,100 direct deliveries each week. trade mexico spoke to you last year about your garlic offer. How is that going? MU: We will export 5,000 tonnes in 2013. It is a drop on the pre-
We are about to install a production line that allows us to innovate in packaging, so that we can present different products in different ways
and manufacturing practices that govern us, such as ccof, ct-pat, Globalgap, sqf 2000 Level iii, usda and México Calidad Suprema. The use of technology is essential in all areas of the process, so we adopt increasingly efficient processes – to be fast and secure from the field to the shelf. We are determined to be ever
vious year caused by weather conditions: we got very low tem-
major exhibitions on different con-
more
sustainable
too:
using
peratures three weeks before har-
tinents. We also share information
energy as efficiently as possible;
vest that affected the yield and
about the requirements of interna-
rationing water through drip irri-
the quality.
tional markets to facilitate entry.
gation; cutting back on pesticides
Promotions have been focused
through integrated pest controls;
But everyone is still working hard
on the quality of Mexican garlic,
packaging our products in biode-
to raise the profile of Mexican
which has better taste, longer
gradable plastics and not bleach-
garlic around the world?
shelf-life and bigger cloves than
ing our cartons.
Chinese or South American garlic.
On top of all of this, we are very
MU: There are institutions that
In particular, we have been
open to helping our customers, lis-
are promoting Mexican products
highlighting all of the certifica-
tening to their needs and develop-
worldwide, through digital media,
tions we have that allow us to
ing the products that meet their
print media and a presence at
meet the needs of our customers.
requirements. _
trade mexico 2013/2014
09
NORTH AMERICA
REPORT —Berries
Beating the competition black and blue leÓn—In western Mexico a large organisation is nimble enough on its feet to move one step ahead of rivals from abroad. by Tobias Gourlay
N
ext to innovation, social
with selling the same produce in
The company has around 45 cus-
awareness
trust,
Europe from October to May. This
tomers for its berries around the
Berry Lovers lists respon-
and
means sending fruit, which is sensi-
world and is on the look-out for more.
siveness as one of the brand values
tive to temperature and even turbu-
In the 2012/13 season it has begun
that is integral to its way of doing
lence, as airfreight.
operations in Hong Kong and Dubai.
business. And, with the global finan-
Mexican exporters cannot sell
Although berries are not well known
cial crisis biting the blackberry
direct to Europe because of certifica-
in those markets, Berry Lovers hopes
market harder in Europe than else-
tion requirements on the continent,
to grow demand significantly.
where, it has moved quickly to refo-
especially in the UK and Germany.
Blueberries and raspberries will
cus its efforts.
“It is impossible for us to implement
drive the increase in European sales.
TOP—Berry Lovers
standards like brc because none of
Berry Lovers plans to expand produc-
as demand in North America, partic-
sends 2.5m cases
these organisations have offices in
tion of blueberries from 20ha to 150ha
ularly eastern Canada, has risen.
to North America
Mexico,” says Pablo López. Import-
over the next 7-10 years and of rasp-
ers such as Total Berry, which is
berries from 10ha to 50ha.
Prices in Europe have fallen just
It takes 2-6 days and two truck journeys for fruit grown in Los Reyes, Michoacán to reach the US
each year BOTTOM—Cristina
Domínguez and Pablo López
Berry Lovers’ main UK customer, are required to arrange certification.
“Mexico will become a more important blueberry supplier than
and Canada. This is organised by
In spite of the more complicated
Chile,” predicts López. Although the
Growers Union, the biggest all Mex-
process, Berry Lovers expects to raise
Chilean production is more concen-
ican-owned group of companies in
sendings to Europe from 200,000
trated – it produces 20 tonnes of fruit
the business.
2kg cases this season to 350,000
per ha, compared to 12-15 tonnes for
cases next time. Its North American
Mexico – proximity to major markets
exports currently total 2.5m cases.
gives Mexico a logistical advantage.
Switzerland-based Sofresco, part of the same organisation, is charged
Growing
blueberries
is
three
times more expensive than growing blackberries, but this will be Berry Lovers’ major investment of the next few years. Buyers on the other side of the Atlantic are not as familiar with Mexican blueberries, so the first task for the growers is to show the world exactly what they can do. “Customers expect less than they see when they visit,” says Cristina Domínguez. “They see the investments we’ve made and the reality gives them a much better impression of Mexico.” _
10
trade mexico 2013/2014
NORTH AMERICA
REPORT —Diversification
Spurred on to diversify
RIGHT—The packhouse can now handle
100 tonnes of carrots a day
stomach anything more than US$6-8 for the same product.
aguascalientes—Garlic specialist Los Rancheros is refocusing its core business
With the worldwide financial crisis hitting Europe hard, managing director Sergio Narváez says
containers – we will send them as much as we can ship.”
the grower-exporter has redoubled
Although Los Rancheros farms four varieties of garlic
on the US market while
its focus on North America. It has
– white pearl, purple, purple striped and early Califor-
launching lines of carrots,
opened an office in Macallan, Texas,
nia – like growers the world over it is susceptible to unfa-
from where Lourdes Narváez co-ordi-
vourable weather. The crop is especially sensitive to rain
nates the distribution not only of Los
during the April-June harvest. To mitigate the risk, the
Rancheros’ own production, but also
company is committed to a policy of diversification.
broccoli and bell peppers. by Tobias Gourlay
that of other Mexican garlic growers.
In Los Rancheros’ hometown of Aguascalientes, there
Its own production stretches
is now a packhouse to accommodate the expansion of
to 4,000ha, of which around 40 per
other produce lines. Each day the facility can cope with
or three generations Los
cent is usually exported. The busi-
100 tonnes of the carrots that the business has been suc-
Rancheros has sent its pro-
ness has the infrastructure and agil-
cessfully supplying to the domestic and US markets.
duce around the world – to
ity to respond to orders with short
Los Rancheros already supplies dried chillies to the
Australia, Brazil, Canada, Europe and
turnaround times. On and off it has
local market. In the greenhouses of its main production
South Africa – and earned Mexican
supplied Brazil, a country that Sergio
base in Fresnillo – just across the Aguascalientes state
garlic a reputation for high quality
Narváez says consumes 1m 10kg
border with Zacatecas – bell peppers have been grow-
in the face of immense competition
boxes of garlic every month. In 2013 a
ing well and the plan is to sell to the US. Having supplied
from China, which grows around 70
window opened up for two weeks in
frozen broccoli to the horeca sector across the border, it is
per cent of all the garlic on Earth.
June between the end of the Argen-
making the first steps towards a fresh supply line.
F
Chinese output is up 30 per cent
tinean deal and the start of China’s
If the firm can establish new products while continu-
in 2013, cutting global prices in half:
offer. “We were asked: ‘Pack as much
ing to supply significant volumes of top-quality garlic to
the market paid US$12-15 a kilo in
as you can.’ So we worked around
clients at home and abroad, it will be a big name in fresh
2012, but 12 months on it will not
the clock and now one, two, four, ten
produce for another three generations and more. _
trade mexico 2013/2014
11
NORTH AMERICA
REPORT —Limes
T
Experience makes the difference he b&s Exporter Group has
martínez de la torre—After 28 years growing, packing and marketing
grown consistently since
high-quality Persian limes, b&s is expanding and improving its production
taking its current name
after a merger in 2000 and, indeed,
process to satisfy the most demanding markets in the world.
since it was established as Empacadora Rojo Gómez in 1985.
by Tobias Gourlay
“We are a highly qualified team,” asserts ceo Enrique Saavedra Bonilla.
LEFT—Limes to the US now arrive with
“With honesty, creativity and perse-
better quality and a longer shelf-life
verance, we practise the highest standards of quality.”
of quality and safety.” b&s is officially
b&s believes those are the values
recognised by Globalgap, gsv, México
that deliver excellent results for
Calidad Suprema, Primusgfs, the
customers and bring success to a
Rainforest Alliance and Senasica.
business that provides social and eco-
In 2012 b&s exported just over
nomic stability to the lime-growing
4,800 tonnes of Persian limes to
community of central Veracruz.
Europe by sea and air. Its prima-
The company is confident it can
ry markets are France, Spain, Italy
still do more. In 2013 it is increasing
and the Netherlands. With improve-
its production capacity – its packing
ments in the field and at the
facilities will extend across 11,000m2
packhouse, b&s expects to raise pro-
– and redesigning its automated pro-
duction by 25 per cent in 2013 and
cesses to ensure the best possible company. We always aim to care for and preserve the envi-
sian limes. It has also opened 800m2
ronment.” b&s sends limes across the globe and in 2013
“We believe that the Persian lime
of coldstorage space.
its fruit will arrive at destinations in the US with better
has great potential and surely its
quality and a longer shelf-life, thanks to new pre-cooling
consumption will increase day by
facilities.
day in the European market, and
These are b&s’s landmark endeavours, but it sweats the small stuff
12
it’s ready to bet its extra capacity
selection and packaging of its Per-
on Europe.
too. “Every day we improve our com-
“And in Japan we have captured 60 per cent of exports
we think that this market is a good
pliance with regulations requiring
to that country – always maintaining the quality stan-
opportunity for Mexican exporters,”
certificates of quality and good prac-
dards that the market requires.”
confirms Saavedra.
tice,” says Saavedra. “We recently
Quality certificates are an important distinction
The plan is to increase sendings to
obtained Primusgfs certification, and
around the world. “Certifications help you to take an order,
the Czech Republic, Germany and the
do not forget that we have also been
to be a responsible company and to make sure your prod-
UK, while entering countries such as
honoured as a socially responsible
uct arrives with the consumer at the best possible levels
Poland, Russia and Scandinavia. _
trade mexico 2013/2014
Ekland Marketing.indd 1
29/07/2013 11:56
EUROPE REPORT —Bananas
Time to get serious mexico city—Mexico’s biggest banana producer-exporter believes a co-ordinated promotional nudge could help the country’s high-quality fresh produce reach and compete in more markets around the world. by Tobias Gourlay
H
ot, dry, temperate and cold: Mexico has four main climates and many variations within them. Around the high, rugged mountains of the north, open-field vegetable growers grapple
sometimes with winter frosts. In January 2013 tomato, pepper, pumpkin and courgette crops were damaged by the cold in Sonora and Sinaloa. On the eastern coastal plains of Veracruz, citrus producers spent the same month worrying about huanglongbing, the greening virus that thrives in the tropics
Company, “but Mexico, which start-
tic market, supplying supermarkets
and subtropics.
ed with a similar area of banana
such as Walmart, Costco, Chedraui
There are optimal conditions for growing banan-
production 25 years ago, has a non-
and Comercial Mexicana. Exports
as in south-eastern states, but geographical and climat-
specialist reputation. We have good
go to the US and Canada, of course,
ic diversity means Mexico is much more than a banana
quality; now we have to change
and San Carlos is established in
republic. A wide range of production can make it hard
mentality in order to build a strong
European markets (Bulgaria, Ger-
to define and promote a unified country brand, however.
image of Mexico as a reliable export-
many, Hungary, Italy and Montene-
er of consistent volumes.”
gro) and beyond (Iran).
“Ecuador is known as a banana producer,” says Elena Vergara Hauser, export manager of San Carlos
14
trade mexico 2013/2014
Founded in 1989, San Carlos has
Seventy per cent of its year-
been Mexico’s biggest banana pro-
round exports – around 30 con-
ducer since 1994. With 2,400 employ-
tainers a week – go to Europe, with
ees, the group controls 2,500ha of
northern Europe taking more than
banana production across Chiapas,
anyone else. Demand is strongest
Tabasco and Veracruz, yielding 7.2m
from July to September and still
boxes of bananas a year. It has a
increasing: recently confirmed con-
“very strong” position in the domes-
tracts will see San Carlos sending
EUROPE
FAR LEFT—San
Carlos has been Mexico’s biggest
“We need business – and government – to work with us on this,” says Vergara. “At the moment it can be
banana producer
cheaper to send fruit to Italy than
since 1994
Canada.” And Ecuador, which is fur-
LEFT—Export
ther away from Europe, still has
manager Elena
better transit times for Italy.
Vergara Hauser BELOW—Italy
and Germany
San Carlos is doing its bit: as well as opening a commercial office in
are among
Switzerland in October 2013, it has
its European
set up San Carlos Nigeria. With the
destinations
advantage of geographical proxim-
OPPOSITE—The
ity to Europe – and the historical
group controls 2,500ha of banana production in Mexico
leg-up of tariff-free entry into the European Union – African banana producers have been serious rivals to Mexican growers. Now they can become serious allies. On the same latitude as Ecuador, conditions in Nigeria are ripe for fruit production. San Carlos has acquired 2,000ha to be given over to banana plants and 1,000ha for dwarf pineapples. It will bring with it the specialist knowledge required to
grow
the
fruits
successful-
ly and production should begin in
Seventy per cent of San Carlos’ year-round exports go to Europe, with Northern Europe taking more than anyone else
“The Russian market is strict, with
Because Mexico’s banana vol-
1,000ha in Isla, Veracruz. In fields protected
more than 20 containers a week to
umes are much smaller than, say,
from cold winds and freezing conditions, the
Italy throughout 2014.
August 2013.
lots of paperwork and high quality
In this way Vergara hopes San
requirements, but these have been
Carlos’ year-round production will
fulfilled.”
encourage the idea among interna-
If the volume continues to
tional buyers – and shipping lines –
increase, it could be enough for the
that Mexican exporters are “serious”
bulk cargo service from Dos Bocas
about their export markets. _
port in Tabasco. This would circumnavigate the problems that arise when San Carlos arranges ship-
Dwarf pineapples are San Carlos’s other main
ments to other markets.
product. Weighing 1-2.5kg, they are grown across
Ecuador’s – and because Mexi-
production cycle is 18 months and, when it’s
Russia is San Carlos’ next target.
can producers have not been able
ready to eat, the fruit is harvested manually, to
Trial shipments have been complet-
to guarantee constant volumes
minimise mechanical damage. In a temperature-
ed, prospective importers have been
throughout the year – reefer ship-
and humidity-controlled environment, the
to Cancún for discussions and, at
ping lines are reluctant to invest in
pineapples are selected, washed and refrigerated
the time of trade mexico’s visit, Ver-
the routes that would take Mexican
ahead of their distribution around the world. The
gara felt a contract for 40 containers
bananas to their destinations most
next step is to recreate this supply chain across
a week would be signed imminently.
quickly and cheaply.
1,000ha in Nigeria.
trade mexico 2013/2014
15
EUROPE
INTERVIEW —Breeding
FESTIVAL SEASON STARTS EARLY The international licensing team of Ekland Marketing Company (Emco Cal) is preparing for the third year of its Festival
Safari the next step in Planasa’s Mexican venture michoacán—In 2010 Spanish soft fruit breeder Planasa Group launched Planamerica to develop new berry varieties for Mexican producers. Alexandre Pierron-Darbonne, Planasa’s managing director, outlines the progress it has made since then.
strawberry licensing programme in Mexico.
by Maura Maxwell
Festival is heavy yielding and early maturing. It is the first strawberry ready for each shipping season in Mexico – when the prices are highest. Its firmness means it ships very well, and with a long shelf-life. A glossy appearance and excellent taste create a favourable impression with consumers and store buyers, according to Erika Montañez, Emco Cal’s licensing executive for Mexico. The country’s marketers and exporters have traditionally supplied fresh strawberries to the domestic market and the rest of North America. “We are starting to see them open new markets. The industry is now airfreighting licensed Festival strawberries to Asia and Europe.” In recent years European Union customs authorities have seized many unlicensed shipments of
T
his year you’ve been very prolific in terms of
tropical climates such as Mexico
new varieties. What’s the latest news from
and Florida. It is what’s known as
Planamerica?
an ‘infra short day’ cultivar, which
fresh strawberries, but Emco Cal has developed license
Alexandre Pierron-Darbonne: We’ve just launched
earlier than normal as it requires
programmes for new University
a strawberry, Safari, which grows very well in central
fewer photo-inductive cycles to
of Florida strawberry varieties
Mexico. We’re also starting to produce strawberry and
provoke flowering.
that carefully balance positive
raspberry plants from our state-of-the-art nurseries in
Designed to be planted in mid-
economic incentives with
Ciudad Guzmán in the state of Jalisco. Outside berries,
August, it starts to produce fruit in
rigorous enforcement against
we’re very excited about a new area of business for us:
November, with production peak-
the production of asparagus plants.
ing during December and January.
unlicensed shipments.
means it flowers substantially
Montañez is quick to point out that doing business
We believe it has the potential to Tell us a bit more about Safari.
in Mexico has been a “complete pleasure for Emco Cal, with no serious difficulties”. _TG
16
trade mexico 2013/2014
replace the current market leader, Festival, as it produces a superior
APD: Safari is an extra-early high-quality variety that
quality berry and is able to maintain
has been specially developed for production in sub-
its berry size much better during
EUROPE
January and February, when sizes usually start to be compromised.
technique developed by Planasa in Spain which enables us to deliver virtually limitless supplies of propa-
You introduced the Adelita rasp-
gation material within two years of
berry in 2011. How have sales
selection.
developed?
of cheap labour and is well served OPPOSITE—
Alexandre Pierron-Darbonne is Planasa’s MD
logistically – in short, it has all the ingredients for success. Up to now, the greatest barrier has been the lack of varieties developed specifically to suit the
Mexico wants to capitalise on its
local climate, but this is gradually
APD: Interest in the variety has
berry export potential. How should
changing as more breeders move in
truly surpassed our expectations.
it do this?
to exploit the country’s potential.
our exporters’ club, which we set
APD: Planasa has invested heavily
What other projects do you have
up to develop and test new varieties
in Mexico because we believe the
lined up for the coming years?
on the market, have thrown them-
country could become one of the
selves fully behind Adelita. Last
world’s leading berry exporters in
APD: Our blackberry breeding pro-
season there were just 10ha under
the short to medium term thanks
gramme is progressing rapidly and
production but, such has been
to its ability to produce extremely
we have a number of promising
the interest generated through-
high-quality fruit from October
selections lined up which we hope
out the supply chain – from grow-
right through to May.
to start trialling from next year. Our
The five companies who make up
ers to supermarket buyers – that we
The past five years have seen
objective is to bring the first new
expect this figure to rise to 150ha
an explosion in production and we
varieties to market by 2015 or 2016.
this season.
expect this to continue through
Eventually we hope to make Plan-
Part of this rapid expansion is
the next decade. Along with the
america the number-one berry
down to a new plant propagation
climate, Mexico has an abundance
breeder for the Mexican market. _
trade mexico 2013/2014
17
EUROPE
REPORT —Limes
San Gabriel boosts European business martínez de la torre—The Persian lime exporter is enjoying a strong increase in sales in Europe, partly driven by greater volumes of better-quality fruit. by Steven Maxwell
B
ased in the Veracruz city of Martínez de la Torre, San Gabriel is in the heart
of the country’s Persian lime production region, but has lately been making a name for itself outside
San Gabriel’s lime exports soon
its traditional sector. The company
began to pick up speed, with 9-10 con-
made headlines during 2013 when its
tainers shipped to Europe each week
managing director, Rolando Olivares,
during June and July. Rodrigues con-
was elected municipal president of
fidently predicts that the company
into production,” he explains. “The quality is also better
Martínez de la Torre, representing a
will ship substantially more limes
than last year and people are happy with the fruit that
coalition headed by the ruling Insti-
to European markets during 2013 –
they have been receiving so far.”
tutional Revolutionary Party.
approximately 6,300 tonnes – with
Although sendings are expected to decrease slight-
improved fruit quality helping to
ly during August, Rodrigues predicts that volumes will
boost demand and sales.
recover quickly, with shipments expected to reach June-
Despite Olivares’ election, San Gabriel is keen to emphasise that
helping to raise San Gabriel’s profile at home and abroad
business rather than politics remains
“The season started a little later
its primary concern and that, when it
than usual, but there are plenty of
comes to Persian lime production, it
limes on the ground and there are
“There is more fruit being exported to Europe because
continues to make progress in Euro-
more volumes being shipped than
the quality allows for that,” he says. “Last year the same
pean export markets.
last year due to new orchards coming
amount of fruit was available, but it was badly affected by
Pedro Rodrigues, head of European subsidiary San Gabriel UK, says the company expects to ship 20 per cent more limes to Europe in 2013 than it did during the year before, and the increase is being driven by strong market demand. The positive result should come despite the 2013 campaign getting off to something of a rocky start, with exports to Europe beginning four weeks later than normal in late April,
18
ABOVE—Rolando Olivares (left) and Pedro Rodrigues are
After a late start to the season San Gabriel sent 9-10 containers of limes to Europe each week during June and July
July levels again in September and stay strong through to the close of 2013.
rain and, with lower quality, lower volumes were shipped. This year fruit quality is better, so more is being shipped.” With an average transit time of 21-22 days from Mexico to Europe, Rodrigues says Mexican lime exporters “need to be comfortable” with the quality of the fruit they are sending to “avoid any problems with sales”. He estimates that around half of all San Gabriel’s European exports come into the UK, with the balance going into Rotterdam for distribution across Europe. The company, which was established in Mexico in 1989, currently sends its Persian limes to ten countries in Europe, Asia and the Americas.
partly due to weather-related factors,
San Gabriel UK was opened in the south-eastern
but also as a result of a “much better”
county of Kent in 2009 to develop a greater presence for
market in the US during the early
the exporter in Europe and that is exactly what it is on
part of the year.
target to achieve this year. _
trade mexico 2013/2014
ASIA REPORT —Berries
Flying high guadalajara—Berry exporters are spreading their wings and reducing their reliance on nearby North American markets. by Tobias Gourlay
A
neberries turned three years old on 1 June 2013. There was pause for celebration, but not for long. That same month, the national association of berry exporters’ president, Mario Steta,
flew to China and South Korea as part of a Sagarpa-led trade mission. Aneberries’ international ambitions are in line with those of the Mexican government, which is working to secure formal access to a number of Asian countries. To enter new markets successfully, there must be internal improvements too. The association, which works with 2,000 farmers, has two areas of focus: phytosanitary standards and food safety.
GuadalajaraHong Kong flights will begin in the second half of 2013 and the frequency could double next season
INTERNAL AFFAIRS
20
EAST SENDERS “There is lots falling into place in Asia too,” says Steta. Jalisco’s state government has worked hard to bring direct flights to Hong Kong from Guadalajara. The closest airport for Jalisco’s growers has invested in cold-chain management as part of an expansion of its cargo facilities. The Hong Kong flights will begin in the second half of 2013. There will be three a week at first, but the frequency could be
Working closely with government and private certifi-
beyond the US and Canada. After
cations, Steta has appointed a specialist to study safety
going twice to Berlin for Fruit Logis-
double next season. In October 2012 Mexico entered
risks in the supply chain, audit the farmers and produce
tica, it has strengthened its presence
talks about the Trans-Pacific Part-
a better methodology for production. The results of the
around northern Europe, particular-
nership, which could bring the kind
association’s US$5m investment will be made available to
ly in France, Germany and the UK.
of access to Japan, Malaysia, Singa-
everyone in Mexico’s berry sector.
With Lufthansa joining Air France
pore and Vietnam that Chile already
Spotted wing drosophila, the invasive pest from South
in flying direct from Guadalajara to
enjoys in Singapore under the earli-
East Asia that has recently been found in Europe and
Europe – and perhaps increasing the
er Trans-Pacific Strategic Economic
North America, has brought forward Aneberries’ overhaul
frequency of its twice-weekly service
Partnership Agreement.
of its integrated pest management programmes. A second
next season – there is room for Ane-
As well as Japan and South Korea,
new hire will help manage this area.
berries to grow its offer some more.
China is a major focus. As competi-
Opportunities have also emerged in
tors in the US market, general trade
WORLDLY WISE
the Middle East and Russia, where
relations between Mexico and China
Confident in the quality of its berries, the industry at
volumes are not yet big, but they are
have sometimes been strained, but
large has spent the last few years expanding its business
being consolidated.
president Xi Jinping visited Mexico
trade mexico 2013/2014
ASIA
within three months of his appoint-
ment”, and not an attempt to replace Europe in its port-
are optimised for export. Genetics
ment and the formal opening of
folio of destinations. “Economic logic says there will be an
was the focus of Aneberries’ second
China to Mexican berries is close.
opportunity in China for a few years, but eventually it will
international berry congress, where it
have its own production.”
emerged that useful work was being
Aneberries has the documentation that China demands and has
Although the financial crisis has raised an issue
done in Australia and Florida but,
filed it with Senasica, who will pres-
around payment collection in some of the worst-affect-
for blackberries in particular, Steta
ent it to Chinese authorities.
ed European countries, none of Aneberries’ members are
says the very best varieties will be
“It will take time but the aim is to
abandoning the continent. “For the right quality, our cus-
bred locally.
open these markets to the four differ-
tomers are always willing to pay and, with logistical and
ent berries as a package,” says Steta.
varietal developments, we are getting better and better.”
As improvements are made all the way along the supply chain and
Blackberries will arrive first, then
Mexican produce has a chance in the Middle East too.
the berry sector’s ambitions soar to
raspberries, blueberries – for which
In competition with southern African and European sup-
new heights, Steta remains ground-
there is a wide window from Sep-
pliers, there is a cost challenge, but Steta believes the high
ed. “We must not forget the input of
tember to May – and strawberries. If
quality of Aneberries’ fruit could make a difference.
the growers, particularly the small-
everything goes to plan, more than
Having caught the attention of state and federal gov-
er ones.” At the third Congreso
10 per cent of Aneberries’ exports –
ernments – by creating up to 100,000 jobs a season – the
Internacional Aneberries towards
by volume and value – will soon go
berry industry should soon find itself behind only the
the end of 2013, “We will show them
beyond the US and Canada. Within
tomato and avocado sectors as an exporter of Mexican
how important they are to the
four years, the value of its non-North
fresh fruit.
whole industry.” _
American
destinations
could
be
around US$100m.
The traditional growing area of Michoacán and the burgeoning industry in Jalisco could be joined by produc-
Steta is keen to point out that the
ers from the Baja California peninsula. Jalisco’s expan-
focus on Asia is an “expansion ele-
sion will be driven by the development of varieties that
OPPOSITE—Aneberries’ Mario Steta
info@francaisefood.com trade mexico 2013/2014
21
ASIA
REPORT —Anniversary
TIMELINE 1963 Coliman is founded as a family business by Custodio Aguilar Malaga with tropical fruit production in Tecomán, Colima in western Mexico.
Coliman celebrates 50 years in business hermosillo—After half a century growing and exporting fresh produce, Coliman believes its products are second to none for flavour, quality and nutritional value. by Gill McShane
he Coliman Group cele-
Jorge Aguilar junior, the group’s cor-
for the consolidation of the group,
brates its fiftieth anni-
porate divisional director. “It was
commercially speaking.”
versary in 2013 with a
founded by my grandfather, Custo-
Subsequently, Victor and Custodio
re-commitment to offering top qual-
dio Aguilar Malaga, 50 years ago and
joined their brother Jorge and opened
ity, flavour and food safety across
was mainly dedicated to banana and
several branches across the Baja Cali-
its impressive product range, which
mango production. He was only a
fornia peninsula. As the group contin-
is grown according to ten certifica-
grower, so he didn’t market the prod-
ued to grow so did the need for sales
tion standards, marketed under six
ucts directly, but they were exported
diversification. This led the Coliman
brands and exported to 11 countries.
to the US, Canada and Japan, as well
group to become a producer of avoca-
as sold in different states in Mexico.”
dos, bananas, papayas and Key limes
T
“The group was born in the state of Colima, hence the name,” explains
22
trade mexico 2013/2014
The young director recalls how
in Colima, Michoacán and Chiapas
his father, Jorge Aguilar senior, and
for distribution throughout Mexico’s
his uncles, Victor and Custodio Agu-
Pacific and northern regions. Later,
ilar, were introduced to the family
it started growing vegetables such as
business. “My father, the eldest
celery and broccoli in Sonora.
son, worked with my grandfather
“Due to the large sales volume, as
throughout his childhood, but he
we grew other needs presented them-
wanted to leave Colima and start his
selves, so we opened specialised divi-
own business.”
sions such as a refrigerated trucking
At just 19 years of age, Aguilar
company and a plastic-carton man-
senior went to visit different states
ufacturing facility for the proper
across Mexico and 35 years ago he
distribution and packaging of our
saw in Hermosillo, Sonora a com-
products,” says Aguilar junior.
mercially virgin territory full of
Once established with sever-
opportunities. “Here he distributed
al distribution centres in Mexico,
his father’s produce,” Aguilar junior
the time came for Coliman to enter
explains. “It was a small business but,
other markets. More than ten years
as the years passed, he started doing
ago the firm opened its first US office
well and thanks to the work he did
in Phoenix, Arizona, from where it
in Hermosillo he was the catalyst
mainly distributed its star product –
1978 The group formally consolidates with the opening of its first commercial centre in Hermosillo, Sonora, led by Jorge Aguilar senior, followed by several branches in Baja California. 1990s Coliman’s offer expands to include more tropical fruit and vegetables grown in Colima, Chiapas and Michoacán. 2000s Commercial and distribution centres are established in the US as well as a refrigerated trucking firm and a packaging manufacturer. 2013 Coliman celebrates its fiftieth anniversary with 4,000 employees and an export presence in three continents.
ASIA
LEFT—The firm has gradually expanded
its fresh produce offer OPPOSITE TOP—(l-r) Custodio Aguilar jr,
Jorge Aguilar sr, Don Custodio Aguilar, Jorge Aguilar jr and Victor Aguilar OPPOSITE BOTTOM—Bananas are still
Coliman’s star export item
company’s biggest product. “We will continue focusing on our leading products – those that have given us growth and strength – since that’s what we do best. Thank you all for your preference and loyalty to the brand and Coliman Group during bananas – to the southern US. Following that success, Coli-
of the company and its product, and
these last fifty years. We will contin-
man began supplying bananas and avocados in impor-
gives confidence to employees, cus-
ue working to offer the best service
tant volumes to Europe, before realising the untapped
tomers and suppliers.
and quality.” _
potential in Asia.
Among the company’s strategic
Aguilar junior attributes Coliman’s success to the firm’s
plans for the future, Aguilar junior
full control of its processes – from planting and harvest-
singles out the medium-term aims of
ing through to distribution and handling.
tapping into the central and eastern
“Our clients are advised about the proper management
US markets – home to large Latin
of our fruits in order to retain the quality and ensure good
American populations – and dou-
presentation until the product reaches the final consum-
bling its banana exports to Europe.
er,” he explains. “There may be other companies that offer
Within Mexico, Coliman also has
the same products as us, but they don’t have the same
plans for expansion. Since its banana-
quality control.”
producing fields are located in the
This is one of Coliman’s strengths, according to Agu-
south of the country, Aguilar junior
ilar junior, and one which gives the company a solid
reveals that distribution and market-
advantage over its competitors. As a third-generation
ing centres will be established in
leader of the company, he has pledged his commitment
southern Mexico in a bid to consoli-
to upholding the philosophy of value that his grandfa-
date the presence of Coliman’s
ther started, which he believes is reflected in the quality
bananas, which continue to be the
Video bit.ly/Coliman
Watch Coliman’s fiftieth anniversary video and see the growing success of the company.
trade mexico 2013/2014
23
ASIA
REPORT —Transport & logistics
AGF steps up to export challenge
the coming months, for example, one of the key projects we’ll be working on is shipments of mangoes and lemons to Japan.”
mexico city—Access Global Forwarding (agf) expects to see double-digit growth in its fresh produce volumes in 2013 as the domestic industry broadens its export horizons.
Ramírez reports that volumes of Mexican fruit and vegetables trucked to other markets in Central America are also expanding rapidly. “Each and every one of our customers is allocated a dedicated member of the agf team specialising in the transportation of their particular
by Maura Maxwell
product, as well as an account executive who handles the operational side of the account, thereby ensuring that our know-how is transmitted and applied right along the
F
ounded in 2007 and based in Mexico City, agf is a logistics
company
pro-
BELOW—María Reyna Ramírez handles
agf’s pricing and international traffic
supply chain.” According to Ramírez, Mexico still lacks the coldchain infrastructure necessary to ensure that fresh pro-
viding air, maritime and overland
duce reaches the market in a state of optimal quality.
transport for customers throughout
Specifically, she points to insufficient coldstorage capac-
Mexico.
ity and a shortage of high-quality refrigerated trucks,
María Reyna Ramírez, who handles the firm’s pricing and interna-
suggesting that both must be improved if the industry is to expand further.
tional traffic, says 2013 has brought a
“By the same token, the growers themselves need to
considerable increase in the volume
invest in new technologies in order to maximise their
of Chilean blueberry imports, as well
opportunities as this would benefit not just them but
as exports of pineapples and straw-
also the consumer.”
berries, among other products. She
While there is advisory and financial assistance avail-
estimates that fresh produce cur-
able to growers to help them expand into overseas mar-
rently accounts for around a quarter
kets, Ramírez claims there is often a gulf between some
of agf’s sales volume and that this
government institutions and producers that can be dif-
figure could rise to 35 per cent by the
ficult to bridge.
end of 2013.
“I can point to a number of our customers who only
“We believe we have an important
decided to start exporting their produce on the advice of
role to play in supporting the coun-
agf, as we were able to provide the international logistics
try’s burgeoning export industry. In
advice they needed to take that first step.” _
Logistics is our specialty, transport our passion • Reefer containers 48´and 53´ to the USA, Canada and Central America • Express customs clearance • Cooled cargo reception and consolidation at the Airport of Mexico City • Picking and transportation all around the country • Service 365 days a year Access Global Forwarding S.A DE C.V Head Office: Col. La Condesa México | Operations Office and warehouse: Beside MEX airport +52 (55) 57851048 | info@agf.com.mx, pricing@agf.com.mx
24
trade mexico 2013/2014 AGF tm.indd 1
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