INSIGHT
FROM MEXICO, WITH BEEF JESÚS VIZCARRA President and Director General of SuKarne
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Mexico’s top beef producer is ready for any outcome from
death and consumption of livestock. In Mexico, the National
the renegotiation of NAFTA that could impinge efforts to
Health Service, Food Safety and Food Quality (SENASICA)
export to the country’s largest single market, the US. Top beef
plays an important role in the supervision of compliance.
producer SuKarne says companies need to sail into uncharted
That implies having strict control of the livestock, including
waters. It has been doing just that for a long time now. “We
knowing where it was born or from where it was obtained. This
understand the importance of the US market but we also
is not a problem for SuKarne. “We have a traceability system
know that it is important to be prepared for everything,” says
that allows us to know our livestock, where it came from and
Jesús Vizcarra, President and Director General of SuKarne.
its previous owners,” Vizcarra says.
“
Our first and most important market is Mexico. Nevertheless, we are always on the hunt for new opportunities”
Market diversification has been a central theme across
Such is the interest of the Mexican beef industry to enter the Middle East that a series of commercial missions led by SAGARPA have already taken place, as well as visits from representatives of the United Arab Emirates and Saudi Arabia to Mexican feedlots. According to a Forbes interview with Rogelio Pérez, CEO of Mexican Beef, only six Mexican companies have the halal certification. Pérez is certain that once a deal with Middle Eastern countries is reached, Mexican beef producers will be exporting 20,000 tons of beef yearly, which would account for US$100 million in sales.
Mexico’s industries since Donald Trump, who has vowed to change the NAFTA agreement, was elected US president
Russia, a front that remained closed for four years on Russian
in November 2016, specifically targeting trade with Mexico.
allegations that Mexican beef producers were using growth
SuKarne, however, has been ahead of the curve with its
enhancers, has also re-entered the picture. In February 2017,
strategy to look for other markets. Only 10 years after NAFTA
José Calzada, Minister of SAGARPA, announced that Russia
came into effect in 1994, allowing companies like SuKarne to
would buy 300,000 tons of Mexican beef per year. Then there
begin exporting and commercializing its production in the
is the Chinese market. “A number of significant dealings with
US, the Mexican beef producer decided to venture into the
China are already underway and I believe that agreements can
Asian market, exporting beef to Japan. Its Units for Integrated
be made,” Vizcarra says. Europe is another likely destination
Beef Production (UGIs) in Sinaloa, Baja California, Michoacan,
for the country’s beef products. “We are working on obtaining
the Comarca Lagunera region, Durango and Nicaragua, has
all the needed certifications. It is a process that has taken two
allowed SuKarne to develop a strong presence in Angola,
years but we are confident that we will be ready to begin
Vietnam, Japan, South Korea, Hong Kong and in a number of
exporting to Europe in one more year,” he adds.
Central American countries. Regardless of the political environment in the US, Vizcarra Ranked among the top-five beef-packing companies in North
believes that SuKarne’s future is solid and that the company
America and the third-largest feedlot company in the world,
will continue seeing the double-digit growth rates it has
SuKarne has hopes for further expansion. “We are trying to
enjoyed in the last 20 years. Its business strategy ensures high
enter the Middle East market with halal meat,” Vizcarra says.
margins. “We are in an industry with small margins on returns
According to a SuKarne press release, the halal certification the
but our integrated model allows us to ensure a higher return.”
company already has allows it to access a market with 2 billion
Diversification will only add to the company’s advantages.
consumers. To obtain a halal certification a company must
“Our first and most important market is Mexico. Nevertheless,
comply with specifications outlined in the Quran regarding the
we are always in the hunt for new opportunities.”
