AMHPAC Hosts Convention In Mexico

AMHPAC’s third annual business and technical convention was held August 25th to 27th in Guadalajara, Jalisco Mexico. The hall was filled with grower/shippers, packers, produce buyers, distributors, marketing / sales specialist, quality assurance, government officials and industry researchers. The convention’s attendance was close to 300 participants and the agenda was complete with industry professionals from around the world. Commencing the conference on August 25th, key speaker Nancy Tucker of PMA presented The Challenges of Global Market: The Many Headed Monster. She was followed by Sergio Sarmiento (MEX) with the subject: How to build a better future in Mexico and shortly after followed Eric Viramontes, AMHPAC CEO, spoke about The Search for the Lost Productivity. To wrap up, Ana Serna (MEX) presented the “Importance and Characteristics of Advertising in Specialized Media”.

On Thursday, August 26th, the Business Convention began and Mariano Ruiz Funes Macedo (MEX) of Sagarpa presented Actions of the Federal Government for the Protected Horticulture in 2011, followed by Mark Munger, Vice President of Marketing (USA) for Andrew and Williamson who spoke about Fresh Product, Season 2010: Strategy or Luck? Munger pointed out, “There has to be strategy or you can’t be productive”. He further explained how the productivity model consisted of production, cost and price. Munger reported that consumers’ choices are changing – they buy produce by what the product looks like and then the repeat business comes back because of the flavor.

Munger added that consumers are interested about the story behind the product i.e. where it is grown, shipped and also added that the consumers shop based on convenience. In an interview after his presentation, he mentioned that “we will all sell more tomatoes when we focus on quality, safety and flavor.” He also stated AMHPAC, a market oriented advancement organization, focuses on Mexico’s promotion for the Mexican brand and that the Mexican government’s desire is focused on quality starting with the trade displaying the Mexico brand prominently. He then added “consumer perception changes one box at a time.” He also mentioned the seed companies which are working diligently to develop high flavored products, specialty produce and improved commodities with strong varieties that are exhibiting tremendous innovation within the industry and reported that consumers will be the beneficiaries of these new varieties within the next couple of years. When asked what he wants U.S. buyers to know he answered, “I want the U.S. buyers to know is that I am extremely appreciative of their confidence and support and by their support of Mexican produce this will enable the industry to advance in the technology and trade.”

Sergio Alejandro Garcia de Alba (MEX) of WTC Trust presented next, speaking about the Aerial logistics of profitable markets. He was followed by Jorge Rodriguez Gaytan (MEX) Intellectual Capital, Consultants, who discussed Advanced Negotiation. Juan Antonio Aguila Marin (MEX) from ITESM presented the importance of communication / Commnic-Action.

Participating at the round table discussion: “What does the market want from Mexico?” were the following speakers:
Nancy Tucker – PMA USA
Jamie Chamberlain – Chamberlain Distributing USA
Mark Munger – Andrew & Williamson Fresh Produce USA
Fried De Schouwer – Greenhouse Produce Company USA
Raymundo Gomez Orta – CEDAAC MEX

The discussion consisted of: Perspective: how they see the industry? The panel shared their thoughts and experience regarding the following questions.

Question: What are the challenges of the Mexican agricultural industry?
– Munger: In protected agriculture, we need to determine what are the best products to grow – we have an environment that we can grow any type of produce.
– Schouwer: Profitable access to the market, we have to make sure that we are getting a good return on investment.
– Chamberlain: We see that there is an identity crisis struggle with buyers – struggling with representing Mexico by standing together, creating awareness within the market place.

Question: In the distribution channel who is the link that keeps the most profit?
– Schouwer: The retailer holds the money – why – because there are too many players in the market.
– Munger: Don’t bite the hand that feeds you. We should focus more of our efforts and energies on ways to improve our own business models and manage our own costs efficiently.
– Tucker: It is important to learn about the other people in the chain to glean an understanding of how the entire business model works. There are a number of pressures that each partnership/link has to go through.
– Chamberlain: Retailers take the largest chunk of the profits – we have to remember your growing and selling the product and it is the goal is to sell the crop and in doing so at the end of the day your ROI will be higher.
– Orta: It is good that the channels exist – our focus needs to be that we need to cut the logistics chain down from the traditional for the producers to have a direct connection to the retailers.

Question: How important is food safety?
– Chamberlain: Very important, it’s the number one issue and consumers expect growers to have a food safety plan in place. We have to work together and be able to help each other – we are representing imported produces into the United States.
– Tucker: Food safety is a difficult issue – it is almost like oxygen – we have to have it and there is a cost in which growers must work with each other in this cause to limit any potential outbreaks.
– Munger: The link that values the food safety is the consumer – it is not on their radar until there is an outbreak. Food service providers also take food safety very serious, and who should lead in this effort it has to be us the growers.
– Chamberlain: Retailers look at the growers for food safety.
– Otra: It is not only a producers issue – it is an industry issue and focus.

Question: Why is traceability important?
– Tucker: Traceability is a huge initiative – there is a lot of information regarding the best practices on the PMA website. Traceability helps companies to identify your product – ultimately it gives a face to the product, providing a story to the consumers.
– Munger: Traceability is the tool to swiftly find out where the product came from and also a good method to communicate your message.
– Chamberlain: Traceability for me is a marketing tool it is really the best way to tell your story, where the product was grown, packed and shipped.

Question: What are some areas of opportunity?
– Schouwer: Promoting protected agriculture as a quality product. Building efficiencies within your business model and deliver a quality product.
– Munger: Making sure that your own business models are sound!
o Collaboration – within the industry – there is tremendous opportunity.
o Location – we have a unique location and access to the US market.
o Build direct relationships.
– Tucker: Building opportunity along the supply chain through value, value and more value through:
o special packaging
o promotion
o education
each step in the supply chain is important to keep adding value.
– Chamberlain: The opportunity begins with the grower to get your products to market. AMHPAC is trying to get that message out to media and consumers, especially of what growers are doing to feed the American public.

Question: Who are the allies to Mexico?
– Munger: The biggest allies are the retailers because they support us and they promote our products in their stores – they are also the allies in promoting confidence in Mexico products.
– Tucker: This is a global market place – we need to look at each other to share information – build those bridges and look at the opportunities together.
– Schouwer: Your image is your ally – we are only as good as our last sale.
– Chamberlain: We are going to face competition – because we are in a global market place. Your allies are your distributor partnerships they will help find a focused vision for your business.

All of these presenters brought to the table many new ideas, innovation and industry experience that gave each of the participants of the convention new information regarding trade opportunities and the scope for potential threats that affect the market and business development today.

AMHPAC is doing a great job of developing education and awareness through collaborating groups and businesses together in one setting to assist in advancing the industry.

The technical portion of the convention featured technical experts discussing: Characterization and analysis of the effects of greenhouse climate control equipment on greenhouse microclimate and crop response presented by Constantinos Kittas (GRE), University of Thessaly. Following, Incorporation of a model to predict crop transpiration in a commercial irrigation system, as a control for the supply of water to horticultural crops without spoil, by Evengelina Medrano (SPA). Then technical solutions to prevent the reduction in crop growth caused by heat and stress in three climate regions in Mexico, by Victor Manuel Loaiza Mejia (MEX). Then, Biorrational management in crop production by Ricardo Alvarez (MEX), Pablo Borquez Field. Then Present and future of biological control of pests in the world, by Antonio Gimenez (SPA) Koppert.

Source: AMHPAC