Industry Leaders
By Nancy Tucker ntucker@pma.com
Produce Marketing Association’s (PMA) Mexico Country Council met for the first time in December 2007 in Mexico City. This ground-breaking event brought together industry leaders from across the sectors of the produce supply chain — growers, wholesalers, retailers, suppliers — to discuss the needs and issues crucial to the Mexican produce industry. The council’s formation reflects the increasing importance of this market to PMA. The group will help the association better serve its Mexican members.
During the meeting, council members discussed trends in Mexico’s fruit and vegetable industry, challenges that will impact their businesses in the next two years, and the changes they foresee impacting the industry in the next five years. Following these discussions, council members met in smaller groups to discuss ways PMA-created programs and services could address these trends, challenges and changes.
Even though it has just begun, PMA’s Mexico Country Council is well on its way to being the forum to enable Mexican industry leaders to address the critical issues and needs in their country. The council will help PMA learn more about the unique needs of members in each country, and to ensure products, services and events are relevant to current and potential members around the world. The Mexican group is the second PMA country council; the Australia-New Zealand Country Council held its first meeting in May 2007.
“I am very proud of the group’s commitment and participation in this first meeting. Despite the busy time of year, each member of this prominent group of leaders was present to share good ideas and discuss market insights,” remarks council Chairman Francisco Obregon, director of produce, Latin America business development division, C.H. Robinson
Worldwide, Inc. of Eden Prairie, Minn. “These fresh perspectives will help PMA offer more valuable resources to meet our members’ needs.”
The council members provided very thoughtful perspectives on important issues or trends facing the fresh fruit and vegetable industry in Mexico today. The factors they identified included supply chain issues such as improving productivity, the need for more standardization (sizes, packaging, quality), challenges to training staff at all levels and all sectors of the industry, scarcity of labor, distribution system improvement needs, and food safety. Consumer issues were also highlighted, such as improving the image of produce in consumers’ mind, maintaining their confidence in the product and teaching consumers about the nutritional benefits of produce.
Council members shared what they thought would be the most important challenges facing their own businesses in the next 2-3 years. The results of the tremendous changes that have impacted the Mexican market were obvious — rapid retail growth, the move to more direct purchases by retailers, increased competition in all sectors, and rapid modernization. Council members identified as key challenges maintaining competitiveness, diversifying products, dealing with risks inherent in growth, getting and maintaining certifications, maintaining appropriate levels of stock, expanding regulations, increasing the value of their product, maintaining the cold chain and dealing with transportation issues.
Looking to the future, council members identified some of the most important changes that they felt would occur in the industry in the next five years. Globalization was top of mind, as the members discussed opportunities for global strategic alliances and the threat of global competition. Closer to home, council members see a great need to increase domestic consumption of fruits and vegetables. Consumers need to be better educated about produce items and healthy eating. Programs that involve
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