Page 60 - January_2019

“Organics is a growing trend. We see greater consumer demand
worldwide. Mexico is now the fth- or sixth-largest producer of
ORGANIC HOLDING STEADY
Organic production also continues upward in volume and variety. “Our organic program is growing 10 to 15 percent per year,” says Havel of Farm Fresh. “We’re expanding organic in almost all of our lines, and it’s custom- er-driven. All of Mexico’s bene ts with respect to availability, volume and fair pricing translate to the organic o ering, as well.”
Cohen reports Vision continues to expand and maintain a presence in organic. “We are folding in organic options,” he says. “We already o er organic lemons, and next year we plan on adding limes and mangos.”
Matt Mandel, vice president of opera-
organics in the world.”
— Alejandro Vazquez Salido, ASERCA
Mexico. “According to Mexico´s Secretary of Agriculture, in 2017 there were 25,764 hect- ares (63,664 acres) of protected horticulture in Mexico,” he says. “Of that production, 68 percent was in tomatoes, 15 percent in cucumbers, 14 percent in bell peppers, and the remaining 3 percent was mainly eggplants
and hot peppers.”
Developments in hothouse production
include expansion of variety, including toma- toes, explains Food King’s Melendrez. “We see an increase in specialty tomatoes at our stores and just started a line of new, unique tomatoes,” he says.
nQ&A: MEXICO’S FUTURE STRATEGIC MOVES
An interview with Alejandro Vázquez Salido, chief executive of ASERCA (Mexi- co’s Agency for Trading and Agricultural Markets Development) at SAGARPA (Mexico’s Ministry of Agriculture).
PB: What is the position of the produce industry to Mexico overall?
Vázquez: Agriculture, and partic- ularly produce, is a crucial sector for Mexico. Our fruit and vegetable exports have been increasing during the past two decades. If you just look at growing area, in 1993 the growing area was only 8 percent of our harvest. Now it’s around 11 percent. Even though it only increased 3 percent, the value of those crops has increased around 12 percent.
PB: With this increase, what notable trends are you seeing in production?
Vázquez: Organics is a growing trend. We see greater consumer demand worldwide. Mexico is now the fifth- or sixth-largest producer of organics in the world. Our growers have been evolving their production methods to accommo- date this new trend. Another trend we see is that of sales done by internet. We recently had a meeting with Amazon to see how they can participate in the fruit and vegetable sector in Mexico. It’s important to note that in all these trends, we are working to ensure not only access for big growers but also that small growers are incorporated.
PB: Do you think the move from NAFTA to the new trade agreement will change produce trade?
Alejandro Vázquez Salido
Vázquez: Because of our proximity to each other, the United States and Mexico and Canada will continue to be trade part- ners — with or without an agreement. It’s a matter of economics. For example, in the case of avocados, Mexico produces around 60 percent of the world’s produc- tion. In some regions, 99 percent of berries comes from Mexico. Even in strong ag states such as Florida, California and Texas, a lot of product is sourced from Mexico when those states can’t supply. We hope the new agreement brings everyone to the table and helps maintain a fair and efficient way of doing business.
PB: Are we finally over the stereo- type of Mexican product and methods being inferior, unjust and unsafe?
Vázquez: We should be. Mexico has been building food safety and other standards, even higher than world stan- dards for a long time now. Mexico’s prod- ucts represent confidence, quality and reliability. We are selling to countries all over the world, including Japan — which
has the highest standards. We are also on the forefront of social responsibility. ... In fact, many Mexican farms are way ahead of U.S. farms in this area.
PB: What challenges do you foresee in the future?
Vázquez: One challenge is to figure out how we involve the small and medium producers for them to compete in international markets. We need econo- mies of scale for them and a system for them to cooperate and work together. We will also be challenged in moving from being a volume producer to a value producer. For example, right now, avocado production is booming, but we only sell fresh avocados to the United States. We need to look at other value-added prod- ucts, such as salsas, oil or extract so we can diversify our markets. Regardless, we are positive about the future of Mexico’s produce industry. We have a saying in Mexico, “You are what you eat, so all over the world everyone is becoming a little more Mexican.” pb
60 / JANUARY 2019 / PRODUCE BUSINESS