Download Presentation trends agri-food Mexico

Trends in the
agrifood sector
in Mexico
FOOD VALLEY AMBASSADORS PROGRAMME
2016
Salvador Reyes Garay
National Demographics | Overview
 Population: 119,530,753 inhabitants.
• 11th most populated country in the
world.
• Median age: 27 years old.
 Total area: 1,960,670.2 km2.
• ≈ 47 times the area of The Netherlands.
• Country is administratively divided in 32
sovereign states and the states are
divided into municipalities.
• Total area sown: 221,367.42 km2.
• Total harvested area: 180,938.07 km2.
 Key economy indicators.
•
•
•
•
•
GDP (2014): USD $1,295 billion.
Annual rate of growth (2015): 2.5%.
12 FTA’s with 45 countries.
30 APPRI’s
9 partial trade agreements.
Data from 2015.
Metropolitan Area of the Valley of Mexico (MAVM)
 Region located in the centre of the
country and constituted by:
• Mexico City (16 boroughs).
• 59 municipalities of the State of Mexico.
• 1 municipality of the state of Hidalgo.
 Population: 20,116,842 inhabitants.
• 8,851,080 in Mexico City
• 11,265,762 in adjacent municipalities.
• 2nd largest metropolitan area in North
America.
 Total area: 7,854 km².
Data from 2014.
National AgriFood Industry | Overview
 Rankings:
• 12th in food production
worldwide.
• 8th in processed food
production worldwide.
• 13th in agricultural crops
production worldwide.
• 11th in primary livestock
farming production worldwide.
• 17th in fishing and aquaculture
production worldwide.
 Total personnel employed:
• Agricultural activities: ≈ 5.6
million people.
• Food industry: ≈ 794,000
workers.
• Breeding and production of
livestock: ≈ 709,000 people.
• Fishing and aquaculture:
≈121,000 people.
National AgriFood Industry | Overview
Production in 2014: USD $135.5 billion.
(3.9% of the national GDP)
AAGR (2014-2020): 4%.
FDI (2004-2014): USD $16.392 billion.
Top investor countries from 2004 to 2014:
The Netherlands, USA, Switzerland, Japan and Luxembourg.
MAVM AgriFood Industry | Overview
 Rankings:
• 1st in number of economic units in the Food
Industry.
 Total personnel employed:
• Food industry: ≈ 205,000 workers.
 Economic units are well-spread all over the
region.
 Industrial facilities (factories) are located mainly
in the following municipalities:
• State of Mexico:
Toluca, Ecatepec, Tlalnepantla, Naucalpan
and Atizapán de Zaragoza.
• Mexico City:
Gustavo A. Madero and Azcapotzalco.
 No industrial clusters related to food industry
have been found.
Health & Wellness
Market
trends
Organic agriculture.
Agricultural development
1. Health & Wellness
 In 2010, Mexico’s National Ministry of Public Health published
the National Strategy for Prevention and Control of Overweight,
Obesity and Diabetes.
 Mexican Government introduced a new tax on sugarsweetened beverages ($1 MXN / liter) and high-caloric content*
snacks (8% tax) beginning in January 2014.
 Examples:
• Food +
Offering value-added ingredients and proposing food products
that are rich in calcium, proteins, fibers, vitamins and other
nutritional substances.
• Food –
Offering reduced sugars, carbohydrates, fat or calories.
• Clean label
Offering no added sugar, low salt content, etc.
 Dairy, bakery and cereal products are among the largest subsectors offering functional foods.
* Non-basic foods with a caloric content > 275 kcal/100 grams.
2. Organic Agriculture
 ≈ 352,900 hectares for organic
food production in 2010.
 4th place in Latin America in
terms of sales and production
of organic food products.
 1st place as exporter of organic
coffee worldwide.
3. Agriculture Development
 Mexico imports 77% of the fertilizers used.
 Very low use of high-quality seeds.
 60% of Mexico’s territory is semiarid and
production in these areas largely depends on
rainfall as very few producers have irrigation
systems.
 In 2012, Ministry of Agriculture (SAGARPA)
published the Development Program for
Mexico’s Agricultural Sector.
• Achieve at least a 3% average yearly growth rate
for the agricultural sector between 2013 and
2018.
• Increase national oilseed/ grains production from
63% (in 2012) to 75% of total consumption by
2018.
• Measure water use savings by the use of
irrigation technologies.
Mexican Food Market | Overview
Market segmentation: consumers can be divided in
four groups according to average income.
• High purchasing power: food sourcing from high-end mass grocery retail
stores and gourmet shops (≈ 3 million consumers).
• Moderate purchasing power: food sourcing from mass grocery retailers
and convenience stores but also from street markets (> 20 million
people).
• Low purchasing power: food sourcing from street markets, centrales de
abasto (wholesale markets) and convenience stores. (> 30 million
consumers).
• No purchasing power: people living in poverty. (≈ 60 million people).
Distribution chanels | Overview
 Mass grocery retail stores:
• Walmart: biggest retailer in Mexico. ≈ 2,000 retail stores in
Mexico under different names (Walmart Supercenter, Sam's
Club, etc.).
• Soriana: 2nd biggest retailer in Mexico. ≈ 827 retail stores in
Mexico.
• Comercial Mexicana: operates mainly in Central Mexico. As
from 2015 is part of Soriana group.
 Convenience Stores:
• Oxxo: largest chain of convenience stores in Mexico with over
13,000 stores.
 Street markets:
• Mainly used for the purchasing of fresh products (fruits,
vegetables and meat). There are approximately 144 street
markets/day in Mexico City.
Distribution chanels | Overview
 Specialized retail stores:
• Organic stores and Gourmet store: mainly located in
upper-middle class neighborhoods. Particularly in Mexico
City is becoming trendy in neighborhoods frequented by
young urban people.
 Indoors public markets:
• There are 329 traditional indoors markets in Mexico City.
Normally dedicated for the purchasing of fresh products.
• Modern indoors markets: mainly located in upper-middle
class neighborhoods. The number of modern markets has
increased rapidly in Mexico City in the last 5 years.
National Infrastructure | Overview
 Road network is the most widely used
transport infrastructure.
• 370,000 km of toll roads that Mexico has
integrated (freeways, highways, roads
and trails that allow connectivity between
almost all locations in the country).
 The Mexican railway system consists of
26,727 km, mainly dedicated to goods
transportation.
 117 different types of port facilities and
vocations, including harbors, commercial,
industrial counted, oil, fisheries, tourism and
military and national security purposes.
 Mexican airport system consists of 85
airports and 1,385 airfields.
Mexican road network
Regulatory environment | Overview
 Three Secretariats regulate Mexico’s food sector and are the main
responsible for food safety and ensuring consumers protection.
Secretariat of Agriculture, Livestock and Fisheries (SAGARPA).
Secretariat of Economy (SE).
Secretariat of Health (SS).
• COFEPRIS: Federal Commission for the Protection Against Sanitary Risks.
• SENASICA: National Service for Sanity, Food Safety and Quality.
 The most important laws and regulations related to Mexico’s food and
beverage sectors are:
•
•
•
•
•
General Health Law.
Animal Health Federal Law.
Plant Health Federal Law.
Mexican Mandatory Standards (NOM).
Mexican Voluntary regulations (NMX).
 Tax Administration Service (SAT).
Product labeling requirements | Overview
 Food and non-alcoholic beverages need to comply with labeling regulation
NOM-051-SCFI/SSA1-2010.
• The NOM states that all the commercial and nutrition information has to be in
Spanish and metric system.
• Minimum required information:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Generic product name or product description.
Net content.
Ingredients.
Country of origin.
Exporter's name and address, if different from the manufacturer, both have to be named.
Importer's name, address and Tax ID number.
Lot number.
Expiration or preferred consumption date.
Cautions, warnings and conservation measures.
Nutrition facts (using required format).
Serving size or serving measure in grams or ml.
Number of servings in package or container.
Secretariats & Governmental Institutions | Overview
 Secretariat of Agriculture, Livestock and Fisheries (SAGARPA).
www.sagarpa.gob.mx
 Secretariat of Economy (SE).
www.gob.mx/se
 Secretariat of Health (SS).
www.gob.mx/salud
 PROMEXICO.
Government promoter for exports and foreign direct investment attraction.
www.promexico.mx
Office in The Hague:
[email protected]
Educational Institutions | Overview
 Universidad Nacional Autónoma de México.
www.unam.mx
 Universidad Autónoma de Nuevo León.
www.uanl.mx
 Instituto Politécnico Nacional.
www.ipn.mx
 Universidad de las Américas Puebla.
www.udlap.mx
 Universidad Autónoma de Chapingo.
www.chapingo.mx
 Instituto Tecnológico de Tepic.
www.ittepic.edu.mx
 Instituto Tecnológico y de Estudios Superiores
de Monterrey.
www.tec.mx
 Universidad Autónoma de Coahuila.
www.uadec.mx
 Universidad Autónoma del Estado de México.
www.uaemex.mx
 Universidad de Guadalajara.
www.udg.mx
 Benemérita Universidad Autónoma de Puebla.
www.buap.mx
 Universidad Autónoma Agraria Antonio Narro.
www.uaaan.mx
 Consejo Nacional de Ciencia y Tecnología
(CONACYT).
www.conacyt.gob.mx
Chambers | Overview
 National Chamber Of Bakery Industry.
www.canainpa.com.mx
 National Chamber Of Processed Foods Industry.
www.canainca.org
 National Association Of Coffee Industry.
www.anacafe.com
 Beef Mexican Council.
www.comecarne.org
 National Association Of Chocolate, Candies And Similar Manufacturers.
www.confimex.org.mx
 National Chamber of Dairy Products.
www.canilec.org.mx
 National Chamber Of Restaurants And Prepared Foods Industry.
www.canirac.org.mx
 National Chamber Of Sugar and Alcohol Industry.
www.camaraazucarera.org.mx
Thanks for your attention!