Mario Steta, Driscoll's Vice President and General Manager for Latin America “Mexico continues to be the fastest growing origin for Driscoll's despite COVID-19”

Despite COVID-19, the essential sector of berries, as well as a large part of the agri-food industry, maintained its activity in Mexico. The restrictions on the border with the United States, the temporary loss of part of the labor force, the closure of the Food Service channel (HORECA), the increase in production costs and the adaptation to the new situation by employees, It has been a challenge for the producer and marketer of berries Driscoll's México, which despite everything continues to be the subsidiary of this multinational with the highest growth in recent years.

Mario Steta, Vice President and General Director of Driscoll's for Latin America.

"In the most essential, I would say that there has not been a significant impact on the production activity of berries, with the exception of organic, which was affected in volumes and in the price differential in recent weeks. The strongest structural challenge is to understand the medium and long-term impact on the consumption patterns of the markets to which we export. An example of this is the food service, which stopped completely and at the moment has not exceeded 25-30% of its usual activity, however, the gap it left in the markets was compensated, at the time, by the demand of the large distribution chains ”Explains Mario Steta, Vice President and General Director of Driscoll's for Latin America. "After a period of strong instability, consumption patterns have stabilized until they reach levels not far from the usual levels, although the way food is distributed is having and will have a fundamental change, particularly due to the impact of online sales".

Although the fruit and vegetable sector has a strong commitment and great experience in the field of safety, modifications have had to be made to the protocols, which in some cases has not been easy culturally in Mexico. “In addition to the hygiene measures that include the use of masks, gloves and sanitizing gels, we have had to restructure the facilities in the packing plants to ensure that the safety distance between workers is maintained. The criteria in the field have not been so difficult to implement, although culturally it has been a challenge to make people understand the limitations to occupy with fewer passengers the motor transports that move from the communities to the fields, the temperature taking, thus such as the prohibition on sharing kitchen utensils, among other measures. Unfortunately, the federal government, starting with President Lopez Obrador himself, generated contradictory messages by not giving relevance to the pandemic at first, or by not supporting the implementation of prevention measures, ”says Mario Steta. "For us it has been essential to take care of the health of our people, throughout the production process, as well as in the camps and shelters."

Irremediably, production costs have increased. The question is, who will take this on? U.S? The consumer? The big distribution? We still don't understand it. In some way, it is going to have to be distributed throughout the value chain, including large distribution. In the meantime, we will continue to improve efficiency in the way we produce berries. ”

Mexico continues to be the fastest growing source for Driscoll's

In terms of business dimension, Mexico represents the most important growth for Driscoll's in recent years. And it is that, the special conditions that the Mexican highlands meet allow to produce almost all year round. Driscoll's México has more than 400 producers and employs around 60.000 workers.

The strawberry, by volume, is the berry Driscoll's México's most important fruit, followed by raspberries, while blackberries have been gaining ground both in production and in value. "For us, the blueberry has an interesting challenge in productivity, considering that Peru has gained a lot of presence in international markets. However, Driscoll's has a model for obtaining its own varieties, with a direct connection between producer and market, something that is reflected in a notable way in consumption”, explains Mario Steta.

Driscoll's México exports 90% of its production, which is directed to more than 40 countries, with the United States and Canada being the main markets. According to Mario Steta, this Driscoll's subsidiary is the one that has experienced the most growth in recent years. "Even Mexico, as a consumer market for berries for this company, which is ranked number 7 in the ranking, could climb to the 4-5 market number. Its consumption potential is very great in the future ”.

“The truth is that Mexico has greatly improved its supply chain, implementing new production systems and improving its air connectivity to Europe and Asia, with five or six daily loading programs to these destinations. We will continue in this line because these are destinations with increasing growth for us. In Europe we compete strongly with South Africa and Morocco and in Asia, mainly with Peru and Chile, which in the case of the Chinese market, enter without tariff. Peru and Chile also represent great competition in the North American markets. However, while Peru has opted to gain market share through large volumes and aggressive prices, Mexico increasingly positions itself as a quality player and consistent in deliveries, which is making us more competitive, "says the representative of Driscoll's for Latin America.

Lack of labor, one of the main challenges to continue growing
“Despite the coronavirus crisis and not having the best policies to increase investment due to budget cuts for agriculture, we continue to grow. The agricultural sector is the second generator of foreign exchange in Mexico, in which between 6 and 7 million people are employed. However, in the long term, the shortage of employees is one of our main challenges. There is a certain perception that in Mexico there is a lot of labor availability, but this has changed significantly in recent years”.

“The areas with the most production are suffering from a significant lack of workers, even in the south of the country, where a large part of temporary workers come from. However, since the end of April, we have seen how the pandemic has impacted the Mexican economy, which has caused many people, not having a job, to turn to agriculture. Now we have the opportunity to show that the field is a good employment alternative and not an occasional emergency resource. We can now demonstrate that the field has good remuneration and good working conditions. We have very professional companies that are committed to the workers, although not much has been publicized”, concludes Mario Steta.

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