No. 08 April 2011

OPPORTUNITIES GETTING THERE GLOBAL WINDOW SINALOA’S MARKETSOIL NUTRITIONAND TOMATOES

TRACEABILITY:SPREADING CODE

USDA INSPECTION SERVICES

EXPANDING PRODUCE SCOPE

Growing success!

orchard vegetables

EDITORIAL

Adriana Elizondo Villarreal

IN ORDER TO CROSS THE BORDER AND CAP-TURE THE BIG MARKETS, WE SHOULD BE

ABLE TO PUT INTO PRACTICE STANDARDS GLOBALLY ACCEPTED AND RECOGNIZED.

Dear Reader,The name of the game in this 21st century is opportunities and challenges; and it seems to be an endless game. There is a clear shot for us. We live in a country favored by a wide variety of soil, weather and we are located next to the world’s biggest market. We have an enviable tradition on agribusi-ness. Mexico’s strength as one of the first producers of fresh produce worldwide has been proved. We can also be proud of the amazing growth we have experienced for the last 15 years. Nevertheless, nothing is worse than feeling fulfilled with our achievements.

For the challenges are numerous. The water supply is beco-ming more and more scarce, as well as the qualified work-force required by a high-tech industry. Moreover, consumers are more and more concerned on quality and food safety is-sues. In order to cross the border and capture the big mar-kets we should be able to put into practice standards globally accepted and recognized.

In AgroExpansion we are thrilled to cope with these challenges and to look for information and new tools to be in the fore-front. Our intention is to become your main source of informa-tion so your company can have a better performance, more profitable and competitive in the current circumstances.

Therefore, we are not only committed to keep on being a truthful and appropriate witness of the real condition of our industry, with its strengths, weaknesses and opportunities.

Moreover, we intend to keep you in constant contact with the areas that hold the keys of our time, such as global standardization, the capacity to trace back our products and food safety, among others.

In this way we will be able to make the most of opportuni-ties and together overcome the challenges of our time.

General DirectorAlberto E. Peña Pedraza

Commercial Director Adriana Elizondo Villarreal

Translation Diana Margarita Morales V.

ContributorsGonzalo LópezIng. Maria CastroLic. Radko TichavskyKarla UgaldeLuis Gerónimo Gómez MesillasChristopher PurdyLic. Enrique López Félix

CirculationLuis Angel Elizondo

Redaction and Style Fernando Torres

Editorial DesignBMazul.com

Art DirectorBeba Mier

DesignCinthia CastañedaManuel Robles

Photography shutterstock.com

Subscriptions +1 (956) 537-9459. McAllen, TX, USA+52 (81) 8850-3830. Monterrey, NL, MXventas@agro-expansion.comwww.agro-expansion.com

AgroExpansión Import Export. Quarterly journal of interna-tional trade in fruits and vegetables. Editor of the publica-tion: Adriana Lucero Elizondo Villarreal. All Rights Reserved. Circulation 7.000 copies. Distribution Mexico: Nuevo León, Jalisco, Distrito Federal, Michoacán, Veracruz, Sinaloa, So-nora, Baja California. Distribution USA: Texas, California, Illinois, New York, Georgia and Florida. AgroExpansión con-siders its sources as reliable and verifies their content the best way possible, however, there may be errors in the accu-racy of the data so it is up to the reader. Book Number by the National Institute of Copyright in tramit. Address in Mexico: Hermosillo #3312-A Col. Mitras Centro, Monterrey, NL CP 64460. Printed in Mexico on April 2011 Printed by Impresos Artegraf SA de CV. Privada Artemio Elizondo # 1034, Parque Industrial ELICAN, Apodaca, N.L. CP 66603. Distribution in Mexico by SEPOMEX, Ocampo # 500 Pte Col. Centro. Mon-terrey, N.L. CP 64000. Distribution in U.S. by USPS, 620 E. Pecan Blvd, McAllen, TX 78501.

staff

IndexOpportunities

6. Global G.A.P: The importance of global certification

8. Soil Nutrition and organic tomatoes

12. Dawn comes earlier at the Terminal Market of

Culiacan

getting there

16. Devising the Optimal Distribution Network

20. Traceability: A code says more than a thousand words

face to face

23. Produce: Fresher and Stronger

global window

28. Improving the Bottom line with Optimal slotting

32. Brocolli from Guanajuato captures de U.S. market

36. USDA Inspection services: A helpful tool for the International fruit and vegetable industry

38. FDA

Agroevents

40. Events calendar through April-May 2011

OPPORTUNITIES

It all began in Europe. In the late 90’s, supermarkets and their major agricultural providers created Eurep-GAP, a common standard intended for farm manage-ment with the objective of reassuring consumers about

the way that the food offered to them is produced. Nowa-days, the organization has surpassed European borders. All 5 continents are involved in this private sector effort that has become the most widely implemented and valued certifica-

GLOBAL G.A.P. :

The importance of global certificationThere is an organization aimed at implementing and certifying Good Agricultu-ral Practice, in order to provide the world with safe, sustainable agricultural products. GlobalG.A.P. is constituted by more than 300 members around the globe that work together to set transparent standards and guidelines. With the sup-port of 1,500 auditors, it has certified more than 100,000 farms in over 100 coun-tries. And the best news is that you can benefit from it.

tion scheme. As recent as 2007, its name was changed to GlobalG.A.P., reflecting its wide scope and vocation.

What GlobalG.A.P. can do for you

Certification is the most valuable service that Global G.A.P. offers to farmers around the world. Unlike other certification schemes, it gives transparent and definite rules for growers

to follow. Third party auditors, or Certification Bodies who are licensed by the organization’s secretariat, carry out the certification. GlobalG.A.P. has a global integrity program that checks out every CB.

To obtain a certification, producers must prove their compli-ance to the GlobalG.A.P standard; they can choose from a list of approved Certification Bodies –nowadays there are 1500 around the world. They act as independent auditing companies that are constantly checked through an Integrity Program. To prepare themselves for the certification, produ-cers are provided with five types of documentation: general regulations, control points, compliance data, checklists, and benchmarking cross reference checklists. Inspections by Certification Bodies are made on a yearly basis and may in-clude unannounced visits.

Currently, having a GlobalG.A.P. certification is more than an advantage. It is an entrance ticket to global business with top retailers. But this is not the only service. Capacity buil-ding, via events and training, benchmarking activities and consumer information are other tools this organization pro-vides for your global business metamorphosis.

Five areas to pursue excellence

There are five standards that are continuously worked on and revised by GlobalG.A.P and its members:

●●Integrated Farm Assurance (IFA). Version 4 has been recently released. This is a single integrated standard with modular applications for different product groups that range from plant and livestock to plant propagation materials and compound feed manufacturing. To apply the standard, a series of documents is provided to guide every member and allow him to position in a global mar-ketplace with respect to consumer needs.

●●Compound Feed Manufacturing (CFM). This standard focuses on the quality of the animal nourishment, which is an integral part of the food chain. Members can se-lect suitable resources for compound feed based on GlobalG.A.P. guidelines.

●●Animal Transportation (AT). This module is being deve-loped at present. It has gone through 2 rounds of public commenting and has been tried in January-February 2011.

●●Plant Propagation Material (PPM). This standard is cur-rently on version 2.0. There is a number of Certification Bodies around the world that provide certification.

●●Risk Assessment on Social Practice (GRASP). This mo-dule consists on 11 control points and compliance criteria, covering key issues as employee legal rights, communica-tion channels, written working contracts, legal status of employees, children rights, working time, wages, and pay-ment, among other social benefits.

Living up to the challenge of the era

No other production area faces a bigger challenge than food production in this globalizing era. That’s why GlobalG.A.P.’s task is very important, for it has established itself as a key reference for Good Agricultural Practice in the global market-place. Reaching this point is not easy. The organization has a Governance Board that bases its decisions on a structured consultation process, where sector specific interests and stakeholders input are consolidated to insure global accep-tance. There are 12 Sector Committees, in which 50% are retailer and 50% producer representatives, who discuss and decide upon product and sector specific issues.

The best news is that you can benefit from it, or even better, help build it by becoming a member. The time is now. Visit www.globalgap.org for more info.

Global●GAP●small●farmers●session.●London,●October,●2010.

OPPORTUNITIES

soIl nutrItIonand organIc

tomatoes The soil in organic farming is considered a living organism, or a set of organisms, this is why it requires adequate nutrition to

offer the best conditions for your plants.

Radko Tichavsky

The preparation of a good compost should ideally be the responsibility of the producer, to ensure adequate content of nutrients in the soil.For example, fruitworm in tomato is a plague that appears when there are se-quential deficiencies of calcium, phos-phorus, selenium and cobalt.If we want to add to the compost these four elements, we refer help of some of the following herbs: Valerian root, con-taining up to 42 000 ppm of calcium, or sugar beet root, flower of Hibiscus with 143 ppm of Selenium, and Golden seal root of with 153 ppm of cobalt. Calcium is an essential nutrient for plants, it has important structural roles and is the key element in intercellular communication. Without calcium, the plant could not adapt to enviromental challenges.Corn ear worm attack becomes visible in tomato plants when nutritional defi-ciencies of calcium, phosphorus, and manganese appears. We then add ex-tract of stems of white oak that con-tains up to 3800 ppm of manganese.Stems of white oak contain over 70 known compounds, and it is an excel-lent pesticide, fungicide, bactericide, and antiviral. So in addition to solving nutritional deficiency of manganese, it will also provide your tomatoes a pack-age of protections against different pathogens. Fusarium, a very dangerous and fre-quent fungal pathogen in the tomato,

The preparation of a good compost should ideally be the responsibility of the producer, in order to ensure adequate content of nutrients in the soil.

Clusters●of●organic●tomato●greenhouse●production

Soil nutrition is as important as plant nutrition, and indeed the im-balance in soil nutrients often re-

sults in diseases and pests in crops, poor flavor and weak consistency of the fruit.Conventional nutrition focuses primarily on the content of nitrogen phosphorus and potassium, but is much more impor-tant to consider the shortcomings of cal-cium, and some micronutrients such as selenium, boron, copper, or cobalt.The best way to add the trace is adding different plants or their extracts to the compost; this is much more advanta-geous than the store bought trace of agricultural chemicals.

Clusters●of●organic●tomato●greenhouse●production.

can be eliminated by solving the defi-ciencies of phosphorus, copper and molybdenum.Stem of black cherry contains more than 378 ppm of copper, and shoot of pignut hickory contains about 33 ppm of molybdenum.As controversial as the use of vitamins in the agriculture is, it is still believed that vitamin C increases the absorp-tion of calcium in plants; this element is responsible for the creation of pro-tective coatings on the leaves and has a significant impact on the transmis-sion of nerve signals within the plant. That is, efficiency of communication of attack of pathogens reported in one part of the plant to her other part de-pends of rate of calcium in the corp.The fruits of wild rose Dog Rose, are an abundant source of vitamin C; it con-tains up to 25 000 ppm of ascorbic acid.Viruses are a very dreaded disease in tomato crops and are considered incurable. An adequate “diet” for the plant must be based on calcium, phos-phorus, vitamin C, cobalt, selenium and vitamin E to avoid the viruses’ problem. Sunflower seeds contains up

to 34 000 ppm of tocopherol (vitamin E) and its extract can be helpful.An important role of vitamin E was re-cently discovered, related to cellular signaling in plants, helpful to protect the plant agains virus diseases, and increasing the plants’ resistance to the climatic stress.Adding carbohydrates (molasses or corn clintose) to a compost is a com-mon practice among organic produ-cers, although not recognized by con-ventional producers, however it adds power to the plant.It is also very helpful to grow “guard” plants around the tomato crops to pro-tect tomatoes against pests, and to stimulate their growth; the most impor-tant of them is sweet basil. A good idea can be a tomato intercropping with this aromatic plant.It is important to observe the level of refraction in sap of the plant. The greater the molecular concentration of the liquid, the higher the refractive index and higher sugar, mineral, and protein content will be. The fruit is then sweeter tasting and richer in minerals. Furthermore, the plant with high refrac-

As controversial as the use of vitamins in agriculture is, it is still believed that vitamin C increases the absorption of calcium in plants.

tion is more resistant to insects, and pathogens.The desired levels of refraction at an organically produced tomato fruit should exceed the 12 Brix, and ideally should be close to 18 Brix.Good soil composition prevents 90% of diseases and pests. Remember, it is much cheaper and easier to prevent than to cure. An adequate composition of the soil will translate into highly mi-neralized plants, resistant to climate stress, and immunes to diseases, and pests. Soil care means fruits with great taste, and benefits not only for your health, but for your business.

Pruning●is●a●practice●recommended●for●tomato●production

OPPORTUNITIES

market of culIacan

Dawn comes earlier at the Terminal

CENTRAL DE ABASTOS DE CULIACAN, THE HUB THAT JOINS THE WEST TO THE NORTHEAST OF MEXICO AND TO THE WORLD

Agricultural products are not confined to California and Florida, as it used to be. Nowdays, commercial scope spreads

to every corner of the Unites States

are now not confined to California and Florida, as it used to be. Nowadays, commercial scope spreads to every corner of the United States. However, he made clear that this is mostly the result of an effort of the businessmen. In the case of the Terminal Market of Culiacan there are less than a dozen busi-nessmen who establish direct connections. They attend PMA and have their own expertise and vision. Some of them work through Nogales or have warehouses on the border. Others trade through McAllen, from where the whole northeast of the US is being supplied. They generally work with brokers who deliver the goods more to the North. They may be recei-ving state or federal support.

Some of the most important products for the American mar-ket are tomato, a wide variety of chili, cucumber and, mostly, eggplant, which is not very popular in the national market. Between 2001 and 2008, the terminal market developed a strategy and many exhibitions were carried out. International exhibitors, traders and people interested in trade were invi-ted. This was a good experience, allowing direct contact with businessmen from faraway locations, such as Chile. Unfortu-nately, there have been so many agricultural exhibitions lately that the market has been saturated, and its effect is now void.

With the support of the government in the early 80’s, a trust was founded and land was purchased in order to start the Terminal Market of Culiacan. Early enough, it became

of importance at a state level. The new century found it ex-panding its influence beyond state borders. Nowadays, its influence spreads over an area of 200 kilometers and also across the United States.

Nobody begins the day as early as the Central de Abastos de Culiacan. Orders taken the day before have to be deli-vered before 5 o’clock, to supermarkets, local markets, con-venience stores, green grocers, restaurants, and many other businesses. Almost each and every of its 190 warehouses are running at 100%. A thousand and one products have

traveled some kilometers or maybe they arrive to this trading center in the Pacific after crossing half the country from the distant coasts in Veracruz. They will not take long to be again on the road. Everything here is strictly fresh. The Terminal Market of Culiacan takes pride in a very high product rota-tion. You will never find anything outdated here.

“At the beginning, according to Mr. Enrique Lopez, from the Terminal Market of Culiacan, there were only small busines-ses. Nobody had a name. The owners would serve the clients at the counter. Within time, these small businesses became full fledged enterprises with a formal structure”. Lopez des-cribes how, today those dynamic organizations have a good command of logistic and supply chain aspects. They are sup-ported by teams specialized in sales, storage and adminis-tration. “All that is needed to run a real business”.

Entrepreneurial talent and exports

Agro-Expansion was particularly interested in knowing how businessmen in the Central de Abastos de Culiacan have succeeded in capturing the market beyond their borders. Mr. Lopez tells us that the exports of agricultural products

At●the●beginning,●most●of●them●were●owner-served●small●busi-ness,●but●they●have●grown●through●time.

Keeping the mechanism to a 100%

An Assembly rules the Central de Abastos de Culiacan. Every 3 years a new Administration is elected, depending entire-ly on the Assembly. President, Treasurer, Secretaries, and Members are appointed. The key post is the Market Man-ager. He is in charge of the operating aspect. Services such as cleaning and garbage collection, weighing, tolls, unload-ing tolls, etc. must be carried out. A human staff of 30 to 40 people takes part; they work the year round and organize special events to keep the market in optimal conditions. Mr. Lopez tells us that the Administration has been working in the black and that they only ask for the government’s sup-port in extraordinary occasions.

After almost 30 years of use, the premises have to be reno-vated. It is important to update the logistic, the scales, en-trances, streets, etc. The Administration of the Market is dealing with the government. There are pymes funds, which are specifically allocated for wholesale food markets in order to help them in their logistic issues. The last change in the government makes it a very favorable time to do this.

Hard times. Great opportunities

2011 has been particularly difficult for Mexican producers. Mostly in Sinaloa, where frosts worsened when the growing was at its most, 80% of the harvest was affected. In order to face this unusual and unexpected crisis, the Federal Govern-ment allocated substantial support. Those who were able to take advantage of it and place their products in the market will benefit from a strong demand and a reduced offer.

From our talk with Mr. Lopez it becomes clear that the ter-minal market of Culiacan, one of the most important in the country, is a perfect place in which businessmen with the best vision and initiative can succeed. Aspects such as pro-moting exports depend on the effort of each and every one of them. Product presentation and enveloping, and in general, the value added, are key to stand out; and many of them are already aware of this. The terminal market of Culiacan gives them an enviable platform from where they can do it.

Businessmen must have expertise and vision, make direct connections and attend networking shows. They generally

work with brokers, too.

Everything● is● strictly● fresh● here,● thus● packaging● and● correct●handling●is●also●important.

Wholesale●food●markets●may●receive●support●from●the●govern-ment●through●pymes●funds.

GETTING THERE

In a need to shed operating costs,particularly in an environment of high volatility, companies are turning attention to their distri-

bution networks. In the knowledge that distribution networks can offer com-petitive advantage in a marketplace demanding even higher levels of cus-tomer service, they’re asking how to optimize current infrastructures.

No pre-established solutions exist for what constitutes an optimal distribution network. Each operator has a unique context, influential on the outcome of any investigation into exactly what their optimal network should look like.However, the methodology employed to arrive at the answer is universal: collect the necessary information; model current network perfor-

mance under a series of growth projections; model potential alternatives under the same series of projections; com-pare the alternatives to the current infrastructure

in terms of capital and operating costs, custom-

er service, financial sensiti- vity, risk, and ease of implementa-

tion. Once complete, this method pro-vides an effective platform for building the optimal distribution network.

Devising the Optimal

dIstrIbutIon network

The first step, collecting the necessary information, is the most important. Ever yone wants to avoid the “garbage in, gar-bage out” maxim that leads to bad deci-sion making. Instead, all information for use in this exercise must be properly re-viewed, cleansed and validated; making it mission-critical to thoroughly review information needs prior to undertaking a distribution network study.

Each point in the distribution network must be mapped and characterized in terms of its logistics function. This in-cludes the supplier base from which the operator draws its product, the com-pany’s distribution centers and stoc-king points; as well as the customers and/or company’s stores.

1. The suppliers each need to be described in terms of volumes shipped into the network ex-pressed in: ●●cost of goods, pallets, pounds and cubic feet; the frequency and mode of shipment (truck load, LTL, rail cars, etc.); the lead times from sup-plier to distribution center site; the information exchange between your company and your suppliers.

2. Each facility within the distribution network should be described:

There●are●no●non-important●aspects●regarding●distribution●in●the●current●economic●environment.

●●product in terms of current capacity; geographic position, pallets, pounds and cubic feet; SKUs variety; on-site storage capacity; the frequency and mode of shipment; the destination of shipments (i.e., direct to customer, into distribution centers or stocking points)●●distribution centers and stocking points in terms of storage and throughput capacity (current and site maximum); number of SKUs; is it owned or leased (if leased, term of lease); geographic position; 3rd par-ty or self-operated; service region and customer base; the frequency and mode of outbound shipments (to customer locations and inter-facility transfers).

3. The customers served should be described in terms of ship-ping volumes, geographic loca-tion, service level, particular re-quirements.

Compiling the above allows an operator to create a static distribution network map. The next level of analysis converts the static map into a dynamic network model making use of transactions be-tween suppliers, distribution centers and customers. To do this:

●●A sample period is chosen and all

transactions occurring within that period are brought into a database to create a network model. Often, data management constraints lead com-panies to use an abbreviated sample period, for example 12 weeks. ●●12 months is the preferred sample period as it allows for a rigorous analysis that models seasonal dis-tribution network peaks and valleys and eliminates errors arising from “annualizing” a model. That is, con-verting a short sample period and the related cost model based on annualized figures rather than ac-tual P&L performance and operating budgets.●●All transactions for the sample pe-riod are incorporated at line level detail including:

●» Each purchase order line shipped into the network;●» Each inter-facility transfer at the SKU-line level;●» Each order line shipped to a customer.

●●Using the physical properties of the items and freight history, the tran-saction can be expressed in terms of pallets, cubic feet, pounds and shipments.

To conclude, the final aim is to project the dynamic distribution network model

Creating●a●strategic●distribution●network●map●implies●compile●every●bit●of●information●about●distribution●

centers.

Each point in the distribu-tion network must be mapped and characte-rized in terms of its logistics function.

●●Alternate suppliers or supply chan-nels: optimal network design should incorporate future planned changes to supply. This may impact geo-graphic origin of the supply such that new infrastructure or increased capacities are required. For exam-ple, sourcing product from overseas affects not only the frequency and mode of inbound shipments, but related extended lead times and variances alter inventory positions a company takes on those products.●●New customers: the absolute vol-ume growth must be characterized in terms of growth from both existing accounts and new accounts or customers. This latter growth may be regionally specific or dispersed along the lines of the current cus-tomer base and therefore plays a determinant role in the optimal net-work solution.●●New customer demands: as custo-mers evolve and seek cost reduc-tions and service level improve-ments from their own networks, demands change. It’s important to ascertain forthcoming changes in customers’ demands. For example, a supplier may deliver product di-rectly to customer retail locations while down-the-road that customer

requires product shipments to dis-tribution centers instead, leaving the store deliveries to the custom-er’s own network.

Having amassed, cleansed and vali-dated the appropriate information, the operator is ready to model the current distribution network and explore alter-natives that yield a better cost-service outcome. In this way, when it comes time to recommend changes toward an optimal distribution network as a result of the study, management can be confident of a sure footing.

KOM International Global Leaders in Supply Chain Consultingwww.komintl.com

Contact Canada:•Denise Beamish (Marketing & Sales Mana-ger)denise_beamish@komintl.comTel. (514) 8994000Contact Mexico:•Maria Castro (Partner – Director)maria_castro@komintl.com•Gonzalo López (Marketing & Sales Manager)gonzalo_lopez@komintl.comTel. +52 (55) 56711870

to a future state or design year. Too often, this step simply models using a volume growth rate assumption or set of assumptions and measures the ef-fect on the network. However, while ab-solute volume growth is an important component of projecting future network requirements, other critical elements to consider include:

●●New item variety: new products originate for a variety of reasons, from packaging changes to entirely new product lines. Changes in SKU variety have an important impact on network capacity.

The final aim is to project the dynamic dis-tribution net-work model to a future state or design year.

Satisfy●customer’s●demands●as●they●evolve●and●seek●costs●reductions●is●essential.

GETTING THERE

It is spreading through the worldTraceability is a term that made headlines in the news due to problems like bioterrorism and the mad cow disease. In fact, in the US, the Bioterrorism Act of 2002 required every food handler to establish and maintain records of their products all the way along the supply chain. However, traceability is far from being only a way to prevent emergencies or crime activity. Many pro-ducers practiced it long ago as a way of improving efficiency. And governments are enforcing it as a way to insure public health

traceabIlIty:

Everybody is talking about it and there’s news that it will be a must for custom purposes. If you are already prepared for it, this is good news.

Otherwise, it’s time to catch up.

a code says more than a thousand words

and also to serve the consumer’s right to know. Examples are the European Union’s General Food Law, passed on 2002, which made traceability compulsory for food and feed opera-tors. The TRACES System, dating from 2004, tracks the move-ment of animals within the EU and other countries. Australia implemented a National Livestock Identification System and India has a system called Grapenet, that monitors fresh grapes exported to the European Union.

What is it?Traceability in fresh produce means re-cording all the steps of the production and distribution process, and encoding it via barcodes, rfid tags or other media. This way, all the movements can be traced in the different sections of the business, including suppliers and clients. Special software must to be used to read and identify every particular transaction within the supply chain. When a company imple-ments a traceability system, it is making an investment for life.

There are three main objectives in a traceabili-ty system:Improving supply management. The expense related to movement, storage and control of products across the supply chain could be the difference between a successful and a failing business.

Tracing back for food safety and quality. This means the ability to isolate the source and the extent of a safety is-sue. The possibility to avoid the produc-tion and distribution of unsafe or poor quality products is key. Fast and effective identification of a problem is a way to avoid bad publicity. Many buyers, like res-taurants and grocery stores, require their suppliers to adopt traceability systems, in

some cases endorsed by third-party cer-tification.

Differentiate food for marketing purposes. Traceability also makes it easier to market products tailored to the needs and preferences of various groups of consumers. There are many process attributes that are not apparent to the eye or the taste, such as the country of ori-gin, whether they are shade grown, earth friendly, genetically modified, calcium en-riched, and so forth. Tracing back makes it easier to insure consumers they are get-ting what they are looking for.

Towards total traceabilityHowever, it is not sufficient that all pro-ducers practice their own traceability sys-tems, confined to the operations of their own companies. Whereas this may have been enough in the past, the objective is to depend on a system with an indus-try scope. Nowadays, there are retailers that have their own traceability systems and push providers to adopt them. In the US, the industry is working on building a common framework and nomenclature for case labeling, and connectivity across the supply chain. A plan is in the works to provide a single system that will be able to identify the manufacturer, a lot num-

ber and the producer’s harvest or pack date. With these three pieces of data, any handler will be able to search in its own internal traceability system for all the necessary information about any product in in concern.

Added value at the borderWe must not wait until that kind of trace-ability is enforced on the other side of the border. We must be ready to demonstrate that the fresh produce we are exporting is not only appreciated because of its quali-ty and safety attributes. We have no doubt that being certified in terms of the trace-ability, will translate into added value, and efficiency at the border.

In the US, the industry is working on building a common framework and nomenclature for case labeling, and connectivity across the supply chain.

USDA INSPECTION SERVICES: A helpful Tool for the International Fruit and Vegetable Industry

The USDA’s Agricultural Marketing Service (AMS) of-fers inspection and grading services, valuable tools for the global fruit and vegetable industry. In ad-

dition, your buyer and industry trade associations can help with marketing and other challenges. Upon request, any party with an ownership stake in a ship-

USDA inspection. Inspections provide an unbiased, indepen-

in domestic and international marketing systems. For sell-

grade or contract requirements; for buyers, grading services ensure that the expected quality is being delivered.

Selling produce in the U.S. can be cha-llenging, but there are resources avai-lable to help you meet these challenges.Your customs broker can navigate the rules and regulations necessary to ex-port produce into the U.S., but you may need additional help.

ROBERT C. KEENEYDEPUTY ADMINISTRATOR U.S. DEPARTMENT OF AGRICUL -TURE, AGRICULTURAL MARKETING SERVICE, FRUIT AND VEGETABLE PROGRAMS.

GLOBAL WINDOW

“It’s always important to be sure that trading partners are specific about their expectations. Using the USDA inspection service can help you know whether your supply chain part-ners have met those expectations. It benefits both the seller and the buyer,” said Nancy Tucker, vice president of Global Development for the Produce Marketing Association (PMA), a leading industry trade association whose members often rely on the USDA inspection services.While most customers contract with USDA to inspect a ship-ment for quality, weight, size, count and other commodity specific conditions, inspectors also can assess a number of conditions related to the shipment. For example, inspectors can visually inspect or measure the ambient temperature of the shipping container. In addition to a written inspection re-port, customers can also request that USDA provide digital photographs to support an inspection result.

USDA Partners with Industry Trade Associations for EducationUSDA partners with a variety of industry associations such as PMA, to educate the international produce industry about resources offered by USDA to assist companies doing busi-ness in the U.S. For example, last year a USDA staff member delivered a presentation at PMA’s “Fresh Connections: Cen-tral America” educational event held in Guatemala. The con-ference helped Central American growers and others along the supply chain get a better understanding of the challen-ges and opportunities of selling in the U.S. “Our members in Central America appreciated hearing first hand from USDA about some of their rights and responsibilities when expor-ting to the U.S.,” said Kathy Means, vice president of PMA’s Government Relations and Public Affairs.

USDA Office Locations & How to Re-quest an InspectionUSDA maintains a network of nearly 100 offices in the U.S., with locations at most of the major terminal markets and ports of entry. This includes a partnership with most of the state departments of agriculture to provide inspection sup-port in locations USDA does not cover.

To request an inspection of fresh produce, contact (800) 560-7956, select option #3 or visit www.ams.usda.gov/freshinspection. To request an inspection of processed fruit and vegetable products, contact (202) 720-4693 or www.ams.usda.gov/processedinspection.

AMS Fruit and Vegetable Programs helps U.S. and interna-tional produce buyers and sellers market their perishable products in the most efficient manner possible through distri-bution channels. To learn more about inspections and other services offered by AMS Fruit and Vegetable Programs, visit

www.ams.usda.gov/fv or contact Christopher Purdy (202) 720-3209 or christopher.purdy@ams.usda.gov. PMA is a global not-for-profit trade association representing companies that market fresh fruits, vegetables, and related products. The association's programs promote the efficient distribution and increased consumption of members’ pro-ducts around the world. For additional information about PMA, visit www.pma.com/resources/government-relations/navigating-government-agencies or contact Nancy Tucker (302) 738-7100 ext. 3005 or ntucker@pma.com.

An●inspection●by●USDA●helps●both●the●seller●and●the●buyer●as-suring●they●are●fulfilling●their●expectations●in●every●operation.

Evidence of compliance or noncompli-ance of contract specifications

Evidence of compliance or noncompli-ance with marketing order and agree-ment requirements, state regulations, and mandated import and export inspection requirements for several products

Factual evidence

Quality control

Establishing product value

Making and obtaining loans

Settling claims

Basis for acceptance or rejection of a shipment.

USDA Inspections can be used as:

FACE TO FACE

Produce: fresher and stronger

It is well known that Mexico is a great country to grow fruits and vegetables all year long with consistency in freshness and quality. Mexican soil and weather diversity have been contributing factors. People are another one. Considering these conditions, it’s no surprise that green produce has a great business poten-tial for Mexicans, and represents one of the most appealing export opportunities.

26 AGROEXPANSION

Mexico●grows●over●70●varieties●of●green●produce,●wich●represents●34●%●of●the●total●exports●to●the●U.S.,●being●15%●fruits●and●preparations●and●19%,●other●agricultural●products.

MEXICAN AGRICULTURAL EXPORTS TO THE U.S.

15%

16%

19%21%

9%

10%4%6%

Other prepara-tions (not fruit

juice)

Beer

Other agricultural products

Other vegetables and preparations

Tomatoes

Peppers

Fruits and preparations

Livestock and animal products

Trade with Japan is increasing, where our avocado and squash are highly apprecia-ted.

For many decades, Mexico has been one of the most dynamic producers and exporters of fruits and vegetables in the

global marketplace. It stands as the 4th producer worldwide and 1st in the Ame-rican Continent. Other big players are the Netherlands, Spain, China, France, Belgium, and Canada. The 10 main pro-ducers account for around 70% of the world’s production. Most of it goes to the European Union and the US, which absorb about half of the global imports. That’s why it is so important for our country to be placed next to the world’s largest market. In fact, Mexico is the largest supplier of the American market on many ve-getables, such as green bean, hot pep-pers, Brussel sprouts, cabbage, cucum-ber, eggplant, onion, red pepper, and tomato. Furthermore, our country is the first green produce provider to the US with over 65% in value, followed by

Canada (just over 20%.) Fruits follow suit with Mexico in a fierce competition with Chile, a prospect which arouses brighter for us. In the first years of the century, our country became US’ first avocado supplier, surpassing our South American competitor. Watermelons, cantaloupes, and berries are also im-portant Mexican imports. Our country is also the main provider of lemons and mango. However, the US is not the only destina-tion of our produce. Trade with Japan is increasing, where our avocado and squash are highly appreciated. Canada and Russia are other countries that are gaining importance in our trade of agri-cultural products.

70 ways to go

About 70 varieties of green produce are grown in our country. They can be classi-fied in 9 different groups: seeds-grains

(such as peas or green beans); fruits (such as tomatoes, hot peppers or eggplant); bulbs (garlic, onion); cabbages; leaves (such as lettuce, spinach, chard), stems (asparagus, celery); cucurbitales (cucumber, squash); roots (carrot, radish, beet, potato); edible flowers (artichoke, broccoli, cauliflower).

Even though horticultural products may be thought as high priced, some varieties stand out when it comes to commer-cial value, and profitability. Tomato, green hot pepper, onion, green tomato, zucchini, and cucumber, in that order, are re-garded as the best investments. However, onion and cucum-ber are noteworthy when thinking in terms of yield per hec- tare. According to SIACON, in 2006, the highest yielding crops were chayote, with 58 ton/ha, turnip (47 ton/ha), egg-plant (37.2 ton/ha), cabbage (34 ton/ha), and tomato (32 ton/ha). Geographically speaking, our horticultural production is con-centrated in the Bajio region and the Northwest. Sinaloa, Baja California, and Baja California Sur are major contribu-tors. Those, along with Sonora, and Chihuahua show a strong dynamism based on high yield and high output farming, ex-tensive and intensive agriculture mix, along with strong in-vestments in protected agriculture, and hydroponic methods.

Greenhouses and business thinkingThe growing use of protected agriculture is undoubtedly one of the reasons of the positive trend, even when we face ad-verse conditions such as water availability, lowering of water tables, droughts, and frosts. Protected agriculture is the way to go for intensive production, all year long or as a winter window, depending on the market strategy adopted. But it is said that the production in greenhouses could be even 10 times greater.

AMPHAC reports a spectacular growth of protected agricul-ture, going from 700 hectare in 1999 to 9000 in 2008 (in-cluding high tech greenhouses and shade mesh), whereas open field agriculture has remained steady in the same pe-riod. More than 8800 direct jobs and 22,000 indirect jobs have been generated by it. Yields may vary from 150 tons per hectare in shade mesh to 500 in high tech facilities.

Nevertheless, greenhouses and top technology are not a guarantee of success.

Business planning and involving personnel with expertise are key. Keep constant product quality, close supervision, and traceability, are also essential factors to the success of the operation.

1991-1993 2007-2009

Fruits and preparations 322 2,059

Avocados, fresh or dried 1 505

Avocados, processed 12 67

Grapes, fresh 59 258

Limes, fresh or dried 20 155

Watermelons, fresh 18 174

Mangoes, fresh3 63 142

Strawberries, fresh 15 133

Strawberries, frozen 18 67

Blackberries, mulberries, and loganberries, fresh * 91

Raspberries, fresh * 62

Papayas, fresh 4 56

Other 111 350

1991-1993 2007-2009

vegetables and preparations 322 2,059

Tomatoes, fresh 1 505

Peppers, fresh 12 67

Cucumbers, fresh 59 258

Squash, fresh 20 155

Onions, fresh 18 174

Broccoli, frozen 63 142

Asparagus, fresh 15 133

Lettuce, fresh 18 67

Cauliflower and broccoli, fresh * 91

Other * 62

Mexican●exports●of● fruits●and●vegetables●to● the●US● exploted● in● the● last● 15● years.●Source:●USDA.

Horticultural●production●in●our●country●is●highly●technified.●Irrigation●agriculture●prevails●and●is●growing.●Source:●Siacon,●in●“La producción de hortalizas en Méxi-

co”,●Financiera Rural,●Mexico,●2008.

Support and assistanceA number of government funded organi-zation at a federal or state level provide assistance to producers and exporters, to improve the quality of their products. SAGARPA, NAFTA, and more than 40 Free Trade Agreements have exceeded all expectations in recent years. Another driving force has been the participation in international events, where Mexico’s presence has increased in the last years. Thus, through the Mex Best im-age “The Best from the Fresh”, a big effort has been made to position Mexi-can produce as the best of the mar-ket in terms of freshness, and quality.

In 2002, we participated in 7 events, with 57 participants involving 4,114 producers. Six years later, we were in 37 events, with 638 participants that stood for 17, 521 producers: that is four times more.

Challenges and opportuni-ties for a healthy futureLooking to the years to come, there are areas that demand hard work. It is es-sential to continue advancing in food safety. Even when most American con-sumers trust the food they find in the supermarket, 4 out of 10 still are wor-ried about the safety of fruits and pro-duce, and almost all would feel more

To become really competitive, achieving certifica-tions and traceability stands as a key objective.

comfortable with produce grown in their own country. So, to become really com-petitive, achieving certifications and traceability stands as a key objective.

In the local front, we face growing costs of input, a weak economy, lack of quali-fied labor, and higher standards of food safety and sustainability.

Happily, the future is full of opportuni-ties. The demand for fruits and green produce is now in function all year long. The growing of the Hispanic population in the US is also a driving force of this demand. Furthermore, the awareness of the role of produce in a healthy diet is also gaining strength every day.

fresh produce: sown field area in hectare

Irrigation Seasonal

0

50,000

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

100,000

150,000

200, 000

250, 000

300, 000

GETTING THERE

Optimal slotting incorporates historical sales, inventory levels, growth, numbering, hit rates, priority, cube, weight, ergo-nomics, etc. This allows you to gain productivity savings on all direct labor functions (receiving, put away, replenishments, and selection). When taking basic slotting and creating an optimal slotting, we typically see a savings of at least 20% on direct labor. The following article describes the steps taken to create an optimal slotting.

ImProvIng the bottom lIne wIth oPtImal slottIng

Facility slotting is a dynamic process. Facilities that have implemented logical slotting and that maintain it on an ongoing basis are always more productive both on direct and indirect labor. basic slotting can be best described as the placement of Stock Keeping Units (SKUs) in a storage location. These locations can be on the floor, in shelving units, racks, case flow lanes, etc… These locations are usually labeled for track abili-ty and tied into a database that has some basic information such as: SKU cha-racteristics, quantity on hand and average sales.

The Optimal slotting process consists of four stages: the Preslot Stage, the Slot Refinement Stage, the Final Slotting Stage and the Slot Mainte-nance Stage. For most distribution centers, all

these stages are necessary to determine the optimal slotting system.

To begin the first or Preslot Stage, detailed analysis of each Stock Keeping Unit (SKU) must be preformed. Specifically: SKU sales (case and cube movement), inventory levels and dimensions data. The Preslot Stage can also incorporate rules to insure that unique complexities of your operations are adhered to. Examples of these complexities are: Vendor pallet heights and pallet weight, date or lot sensitive products, fire protection, chemical protection and other restrictions. Once analyzed, we then determine what the slot type should be for each item and then assign each specific item its opti-mal slot type. These slot types can be as small as shelving units or as large as multiple deep and multiple faced full pal-let slots.

While the preslot may have yielded the optimal slot type for each item, the preslot slot types rarely fit existing warehouse layouts and equipment. Assuming we are not going to build a new Greenfield facility, we must then proceed to the second or Slot Refinement Stage. Therefore, the slot types and/or layouts must be adjusted to ensure a good fit between the assigned slot types and the slots available in the facility.

After the sum total of all the assigned slot types correctly fit the given warehouse layout, the third or Final Slotting Stage can begin. In this stage, items are assigned an actual new slot or position number that is based on a combination of criteria. These criteria ensure that the most efficient ware-house operating system possible will be put into effect —pro-viding Optimal slotting for a given point in time—.

There are two basic methods for final slotting. The first, the Customer Receiving Method, emphasizes efficiencies in cus-tomer receiving and the second, the Warehouse Shipping Method, emphasizes the efficiencies in warehouse operations.

These slot types can be as small as shelving units or as large as multiple deep and multiple faced pallet slots.

The●right●match●between●assigned●slot●types●and●slots●available●make●work●easier●for●everyone.

The method chosen by most companies is a compromise be-tween these two methods and is designed to suit the specific needs of both the warehouse and the customers.

This method combines the best attributes of the first two methods. Slow and fast moving items are slotted together in one continuous pick by Family and SKU Type. Thus, a selec-tor need not travel the entire pick line for every order. Items are then slotted by sequence (descending/ascending case height or weight) within each Family, so as to facilitate the actual stacking of items on a pallet.

The combined method tries to satisfy the requirements of customer receiving, while emphasizing efficient warehouse shipping techniques. It also reduces selection travel by se-gregating different types of orders.

Other guidelines to slot items within a grouping are, as follows:

●●Numbering. Different numbering methods are used to optimize the productivity of all direct labor (Z-Pick,

U-Pick, X-Aisle, One sided, etc.) The preferred method is dependent on your type of operation. ●●Priority. Once the preferred numbering method is cho-sen, Items with the highest movement are slotted at “dot” positions. These positions concentrate movement and minimize the number of times an order picker will cross the aisles and walk backwards.●●Weight restrictions. Heavy items are kept at an ergono-mically friendly height.●●The number of slots. This should include a minimum of 10% opens positions for introduction of new SKUs and flexibility.

When new racking is installed or a major reslot of aisles occurs you must determine at what levels to set the new rack ele-vations. There are multiple factors to consider for this stage:

1. Existing Limitations2. Building clear height3. Sprinkler levels4. Maximum fork lift height5. Vendor TIER and vendor HI

It’s a challenge to take all of the information, tie it toge-ther and then use it to make all the necessary changes in the physical building.

Ergonomics

6. Height of the beam in a two level pick (low enough to select product but high enough to get a pallet in the bottom position)

7. Height of the beam in a one level pick (high enough not to hit your head!)

It’s a challenge to take all the above information, tie it to-gether and then use it to make all the necessary changes in the physical building. Creating a detailed step-by-step move plan with associated time-lines is an integral part of the re-racking, re-setting and re-slotting project.

The Final Slotting of a facility is performed for a snapshot or a specific moment in time. Past historical levels of move-ment and inventory can quickly change due to new items, changing sales patterns, seasonality and many other fac-tors. As a result, the slotting must be constantly monitored and maintained, if you are to keep the warehouse at its highest operational efficiency.

Finally, the fourth or Slot Maintenance Stage would be the ongoing process of keeping the warehouse at peak opera-ting efficiency. Reports of changes and additions to the fi-nal slotting will allow you and your employees to keep the slotting continually up-to-date.

Slot Maintenance reports are essential to pinpoint problem areas and summarize overall operations.These reports will provide the analytical and support tools needed to easily keep your facility up-to-date. Many impru-dent companies stop after completion of the final slotting stage and suffer the consequences later, when the delicate balance achieved during final slotting is degraded over time.

The overall objective of the Slot Maintenance reports is to simplify the ongoing task of maintaining a good slotting system. Slotting systems are dynamic and cannot be main-tained without continuous effort.

KOM International Global Leaders in Supply Chain Consultingwww.komintl.comContact Canada:•Denise Beamish (Marketing & Sales Manager)denise_beamish@komintl.comTel. (514) 8994000Contact Mexico:•Maria Castro (Partner – Director)maria_castro@komintl.com•Gonzalo López (Marketing & Sales Manager)gonzalo_lopez@komintl.comTel. +52 (55) 56711870

The●ability●to●ship●in●an●efficient●way,●satisfying●the●requirements●of●every●client●and●reducing●selection●travel●is●a●token●of●the●benefits●of●a●well-implemented●slotting●method

GLOBAL WINDOW

broccolIfrom Guanajuato captures the US market Broccoli, a vegetable so prized by the American consumer, flagship of a healthy way of life and raw material for the best chefs in the world, is grown on Mexican soil. To be more specific, it is grown in the state of Guanajuato.

Broccoli is the main agri-food produce export from Guanajuato to the US. It is an “emblem product”

This central Mexican state stands as the first exporter of frozen broccoli in Mexico; with

185,325.25 tons produced only in 2010 and with the US as its main destination. Thus, Guanajuato supplies 70% of the fresh and frozen broccoli imported by the United States.

In other words, 90% of the fresh and frozen broccoli which Mexico exports comes from producers in Guanajuato. We are talking about 36 companies which supply both kinds of broccoli to the United States.

Agribusiness in Guanajuato is the se-cond most important of the traditional sectors and the third in importance within the state’s exports.

Therefore, the Coordinadora de Fomen-to al Comercio Exterior of the state of Guanajuato (COFOCE) –a decentralized institution which promotes exports on this state– is seeking out opportunities to strenghten the positioning of the agri-food industry in general and, of course, of its top produce, broccoli, in order to benefit the whole chain.

COFOCE is focused on promotion and advertising at an industrial level, as well as on providing new ideas for the end user on different and supplementary ways of preparing broccoli. But more-over, it is also willing to assist on the dif-

usa global brocolli import & produce origin

In●the●other●hand,●90%●of●the●fresh●and●frozen●broccoli●which●Mexico●exports●comes●from●producers●in●Guanajuato.

USA●has●17%●of●global●imports●of●broccoli.

ferent processes of food safety. COFOCE is developing the Broccoli Product Sys-tem, which would guarantee the quality of the product and would reduce the risk of rejection by the US consumers.

Broccoli is the main agri-food produce export from Guanajuato to the US. It is an “emblem product” and, as such, through the Broccoli Product System, strategies are being developed in order to maintain and increase exports to the US, its natural market; for it is the num-ber 1 buyer, with 17% of the worldwide imports of this product.

17%IMPORTS

90%GUANAJUATO

For Guanajuato, this is a fruitful and well-organized industry, which repre-sents aproximately 10 thousand em-ployees and, therefore, a substantial contribution to the income of families in Guanajuato.

Comparing 2009 to 2010, just broccoli exports increased by a 8.19%, which were sent to a total of five countries. The US standing on the first rank, followed by Canada, Germany, Japan and Guate-mala. This shows that we are also work-ing on the diversification of the market for this product.

Our northern neighbour is a mature mar-ket in which there are higher chances to position Mexican broccoli; this is to say, broccoli from Guanajuato, which is mainly grown in the counties of San Francisco del Rincón, Irapuato, Apaseo el Grande, Cortazar, Salamanca and Si-lao, within the so called “green” belt.

Our northern neigh-bour is a mature market in which the-re are higher chances to position Mexican broccoli;

For the last 5 years, the yearly aver-age growth rate on broccoli exports has been of 10%, and a growth of 16% on the volume imported by the US is expected by 2012.

Thus, once the state of Guanajuato achieves the certifications of food safety, it will not only boost the US market, but will increase its partici-pation within the European Union, in countries such as Germany and France. This way, broccoli grown in Guanajuato will capture not only the United States, but also the world.

Elaborated by COFOCE, with data from the Center for Statistical Information.

GLOBAL WINDOW

For the most part, Customs and Border Protection (CBP) is-sues are fairly cut and dried. As long as proper documen-tation can be provided, CBP issues can be resolved fairly easily (with the assistance of a competent Customs Broker, of course). But FDA issues are not so easily overcome.

While many importers see the FDA as just another nuisance to the import process, they are actually asked to perform a monumental task – protect the supply chain of food enter-ing the United States. Without the FDA examining imported foods, Americans run the risk of food borne illness, become less educated about what they are eating, and open them-selves to ingesting all sorts of unwholesome things like bug parts, pesticides and filth.

So, just how does the FDA operate in regards to imported fresh produce? And how can understanding a few FDA guide-lines help you avoid the dreaded “FDA Refusal”? In this ar-ticle, we’ll focus on the decision making process within FDA. Knowing how they “think” may help you avoid FDA issues in the future.

All information regarding an importation must be sent to the FDA at least 1 hour prior to importation. This information is usually electronically transmitted by your Customs Broker at the same time as your Customs information is transmitted. This is known as Prior Notice, and NO SHIPMENT will enter the country unless the FDA has received Prior Notice of what is arriving.

The critical pieces of data that are transmitted are: the Manu- facturer/Grower (in the form of the Manufacturer Identifica-tion Number – MID), the commodity (in the form of the Pro-duct Code), the field or plant location of the Manufacturer/

Grower (in the form of the FDA Registration Number), and the Importer (in the form of the EIN or Tax ID number). Once FDA has these four pieces of information, their systems can make a fairly logical decision about whether or not an FDA Inspec-tor needs to get involved.

The FDA will never release it’s determination of whether the shipment will be examined until such time as it has arrived at the Port of Entry. Once it has arrived, you can expect one of two messages: May Proceed or Review.

May Proceed means exactly that – the FDA has determined that your shipment poses no immediate threat to the food chain, and it may proceed to destination. It is important to understand that, like CBP, this release is CONDITIONAL, meaning the FDA has the right to rescind this release within 30 days of release.

Review means that an actual FDA Inspector will have to fur-ther review the data to see if additional examination is re-quired. The Inspector may issue a May Proceed, may sample the merchandise to determine admissibility, or may Detain the merchandise based upon the history of the grower or product – known as Detention Without Physical Examination (DWPE).

If the FDA makes a determination to sample the merchan-dise, they will usually send the samples to their laboratory for analysis at no cost to the importer. Results for fresh pro-duce are usually generated in 3 – 5 days from date of sam-ple. Based upon the results, the FDA will either release the goods, or detain them if they are found Violative. In either case, it’s a good idea to leave the entire load intact at the Port of Entry until such time as results are obtained.

There are so many issues facing your importations of fresh produce from Mexico, but one of the most complicated matters receives the least amount of attention – the Food and Drug Administration regulations.

fda

DWPE occurs when the FDA has examined merchandise from a particular manufacturer/grower in the past and has found Violative issues, or that merchandise from an entire country has presented issues to the FDA in the past. These Importer issues or Country issues are contained in what is known as the Import Alert. In either case, your merchandise will not be allowed entry into the USA until such time as a Private Laboratory report from an FDA approved lab can be sent to the FDA stating that the products are safe for human consumption. In addition, you will have to pass a minimum of five (5) consecutive clean shipments through FDA in order to have your Manufacturer/Grower taken off of Import Alert.

If your shipment is determined to be Violative by either a positive laboratory exam, or DWPE, it will be Detained by the FDA. You will then have approximately 3 weeks to present oral or written testimony to the FDA on the admissibility of the shipment. If the FDA does not agree to release the goods, then they will be Refused admission into the USA.

Once Refused, FDA will notify CBP of the refusal, and CBP will demand redelivery of the merchandise to CBP custody at the Port of Entry for either exportation or destruction under CBP/FDA supervision. If the merchandise cannot be rede-livered to CBP/FDA custody within 90 days, CBP will issue Liquidated Damages (penalties) against the Importer in the amount of Three Times the imported value.

The majority of these adverse FDA issues can be avoided by exercising your due diligence prior to importing. Here are three critical things to know:

Know your Grower – Does this grower use only FDA approved pesticides? Does the grower follow established GMP’s? Has this grower had previous issues with the FDA?

Know your Product – Does this commodity have a history of problems with the FDA? Is it currently on Import Alert? Is there a possibility that the product is currently under investigation within FDA?

Know your own History – Keeping your com-pany above board and honest with the FDA and CBP goes a long way to avoiding unnecessary delays. Work with credi-ble Customs Brokers and Laboratories. Offer prior disclo-sure when you are made aware of adverse information.

One last consideration…Use a US Customs Broker who can seamlessly move your goods from the Mexican side to the U.S. side, clear your shipment through U.S. Customs and FDA, cross dock or cold store your shipment, and deliver to market. Phillip Garcia US Customs Broker is an experienced US Customs Broker and Full Service Provider. We would be more than pleased to discuss in greater detail what steps your company can take to minimize FDA issues. Remember – an educated importer/exporter is a successful importer/exporter.

Phillip GarciaPhillip Garcia Customs Broker700 S. Bridge StPharr, TX 78557(956) 843-7050Fax: (956)843-9511Phillipgarcia.comphillipgarciachb@yahoo.com

While many importers see the FDA as just another nuisance to the import process, they are actually asked to perform a monumental task.

Being●prepared●for●every●inspection●at●the●border●is●the●best●way●to●avoid●time-consuming●rejections.

GLOBALG.A.P Tour

Mexico●D.F.,●Mexico

11●-●12●April

www.tour2011.org

United Fresh

Nueva●Orleans,●Luisiana,●●Estados●Unidos

2●-●5●May●

www.unitedfresh2010.org/uf2011

Sial Canada

Toronoto,●Ontario,●Canada

11●-●13●Mayo

www.sialcanada.com

Alimentaria México

Mexico,●DF,●Mexico

May●31●-●June●2

alimentaria-mexico.com

Convención anual ASTA

Huntington●Beach,●California,●Estados●Unidos

18●-●22●June

www.amseed.com

Set Canada 2011

11●-●13●may

Toronoto,●Ontario,●Canada

Nadia●Rousseau●nadia.rousseau@●comexposium.com

+1-514●289-9669●ext●2241

www.setcanada.com/set/en/index.sn

Simposio Internacional de Cultivos sin Suelo e Hidroponía

Puebla,●PUE,●Mexico

15●-●19●May

www.soillessculture.org

Convención Mundial del Chile

Leon,●GTO,●Mexico

26●-●28●Mayo

www.octavaconvencionmundi-aldelchile.com.mx

JUNE

Congreso Nacional de la Sociedad Mexicana de Ciencias Hortícolas

Culiacan,●SIN,●Mexico

10●-●14●April●

www.somech.com.mx

april

eventscalendar

AGROEVENTS

may

Curso de Producción y Diseño en Invernadero

Tucson,●Arizona,●Estados●Unidos

4●-●8●April

ag.arizona.edu/ceac

Nutrición orgánica especializada (Course)

Tezoyuca,●MOR,●Mexico

7●-●8●de●April●

www.fira.gob.mx

If you know Craig and Tony, then you know United Fresh.Or you might know others like them. They’re leaders who want to make a real difference in the produce industry, and shape their own future in the process. People just like you.

Thousands of industry leaders already know the value of working together through United Fresh. Are you ready to make a difference?

Craig Kelly and Tony Mosco, CHEP, Orlando, Florida

www.unitedfresh.org202-303-3400

0264_uf_BrandAd5_AE.indd 1 4/6/11 5:02 PM

41AGROEXPANSION

www.agro-expansion.com

Present in key cities, such as: Monterrey,Guadalajara, Ciudad de México, Sonora,Sinaloa, California, Chicago, Nueva York,Atlanta, Florida, Texas.

Join today and start enjoying of the benefitsof being part of Agro-Expansión, andreceive all necessary information to makekey decisions in your business

Subscription

Ph. USA +1 (956) 537-9459

ventas@agro-expansion.com

would you like to be part of the most exclusive

network?International Business

www.agro-expansion.com

Present in key cities, such as: Monterrey,Guadalajara, Ciudad de México, Sonora,Sinaloa, California, Chicago, Nueva York,Atlanta, Florida, Texas.

Join today and start enjoying of the benefitsof being part of Agro-Expansión, andreceive all necessary information to makekey decisions in your business

Subscription

Ph. USA +1 (956) 537-9459

ventas@agro-expansion.com

would you like to be part of the most exclusive

network?International Business