Grape Growing Regions of Texas
Agribusiness Opportunities unexplored opportunities
Latin America is home to hundreds of agricultural cooperatives and associations of small producers regional. Often, these cooperatives and associations are home to much competition as cooperation. This represents a challenge for producers seeking access to export markets for their products. It also represents a development opportunity that will generate sustainable growth in the sector of agro-industry.
The proximity of Mexico to the United States, along with its climate and availability of agricultural labor at low cost, make it a logical source of meeting fruit and vegetable consumption in the United States USA. The value of U.S. imports Mexico's agricultural products is approximately equal to the value of U.S. imports agricultural products in all countries S. America combined. (Source: USDA Market News)
Orange Case
Development banks are willing to invest in infrastructure to support the development of export markets for agribusiness. Nacional Financiera, SNC is currently working on a project with Mangazo SA de CV for export of oranges from Baja California Sur Mexico. This project is a good model to examine the possibilities of orange throughout Mexico. BCS producers sell their oranges in the country instead of exporting to the United States, where markets expect the price of loans with citrus ten times greater than that of Mexico.
To follow the most attractive price, small producers in the region should cooperate and invest collectively. They need more infrastructure such as packaging material system USDA certified free with cooling and selection of equipment and the country of origin labels for the right price look (PLU) numbers and bar codes used by vendors in the United States and other countries.
Exporters were also representatives of the marketing needs in export markets to plan promotions with all retailers, POS equipment, contributions to be made available six weeks prior to retail customers as well as the volume and size of the forecast, the season regular basis for reliable suppliers to deliver products on time and analysis to ensure that the product reaches the store Store the desired lifetime for distribution to stores.
Handle Case
With adequate physical infrastructure and professional programs exports have been very profitable. A case study provides valuable information on export opportunities for agricultural products in Mexico is growing mango. Before NAFTA, the mangoes were exported to the United States through agricultural intermediaries Florida, Texas, Arizona and California. These products maximize the corridors to retailers, to minimize the return to producers, and pocketed a profit very heavy due to its minimum value added.
In 1994, started a program by the international market resources to Mexico's largest producers handle Diazteca Agro SA de CV of Sinaloa. This was the first retailers in the States Mangoes imported directly from U.S. producers. Eight years, annual sales of this same producer has increased by 400% and 80% of game crops sold directly to retailers in the United States. By eliminating the middleman, the producer has managed to increase the profitability of the firm, consistent and low arrears.
The option is exercised when farmers have the tools to manage the export sales. This preserves the marketing representatives rather than brokers that control rests with producers, building relationships with staff of the USDA and the third part of the certification bodies, strengthening relationships with professionals in providing retail for the planning of future results, prices and varieties, the investment in a packing plant for export and phytosanitary measures in orchards and fields to the final delivery to the customer.
Success Stories
The Fresh Produce Association of the Americas is an organization binational based in Nogales, Arizona, which has benefited many producers and cultures in Mexico. It hits include beans, chiles, peppers, cucumbers, eggplant, grapes, lemons, mangoes, melons, pumpkins and tomatoes. Most fresh produce consumed during the winter in the western United States comes from Mexico through Nogales, Arizona.
Some of these products, like tomatoes, benefit from economies of scale of large multinational companies. Some products are being distributed primarily through brokers to produce at the border. Most manufacturers set up their own distribution business United States. However, there are many opportunities for regional producers' cooperatives and associations to develop export markets on behalf of its members.
Biological
One of the areas most promising for biological products. In Latin America, Uruguay has the highest percentage of organic farmland – especially in urban areas. But Uruguay is not close enough to the USA to maintain low carbon footprint for agricultural exports. organic consumers are very interested in foods produced in the region.
In 2000, Mexico ranked 16th in the world and fifth in Latin America by land in organic production. Unfortunately, Argentina 3 million hectares certified includes biological unmanaged pasture, so that the statistic is misleading. "The value of production organic in 2000 was 150 million dollars in Mexico, five times more than Argentina, which is the second in Brazil, Mexico's total value of production ecological in Latin America ", according to Agriculture researcher Don Lotter Davis, California.
Mexico's domestic demand is still weak, but the value of organic production in Mexico is fully grown at twice the U.S. rate. Coffee is the main cash crop of Mexico. For coffee Latin American Professional assistance to small farmers more than most food you can buy. "More than 50,000 small farmers, with an average farm producing more than two acres two-thirds of the value of organic production in Mexico. As is well beyond the capabilities a producer of this size for individual certification, the certification is done by farmer groups and cooperatives, "Lotter States.
Opportunity
The possibility exists for investors in regional producer cooperatives and associations to provide infrastructure and professional development to increase sales to export directly to Fortune 100 retailers and wholesalers of quality in the United States. With adequate infrastructure and marketing, producers in Mexico can create long-term profitable relationships with organizations that produce retail in the U.S..
About the Author
Stephen Kaczor is a Seattle-based writer, entrepreneur, and consultant. He is a partner at International Market Resources, a Latin American trade consultancy, and the founder of Changes In Latitude, a travel company. The focus of Stephen’s consulting is strategic market development, research & management. In addition to consulting and writing, he is passionate about Latin American culture, travel, and sustainable agriculture.
www.alternativelatininvestor.com
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