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Latin America

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Title: Latin America

1
Latin America Homero Recio New Orleans May
2001
2
Latin America

The Approach (Beef)
Teams
Seminars
Partner with Texas Beef Council
Promotion

3
Latin America

The Approach (Pork)
Teams
Seminars
Mostly processors, some contact with retailers in
Central America and Andean Pact countries.

4
Beef Exports, Central America
5
Pork Exports, Central America
6
Beef Exports, South America
7
Pork Exports, South America
8
Free Trade Aggreement of the Americas (FTAA)

34 countries from North, Central, South America
the Caribbean with the exception of Cuba
800 million population
Last Ministerial Meeting was in Buenos Aires in
April of 2001

9
Free Trade Aggreement of the Americas (FTAA)

Areas Agriculture will negotiate
Base rates for tariffs and timetable for tariff
elimination
Rules of origin
Customs procedures
SPS issues
How to eliminate export subsidies for products
traded in the region

10
CUBA

The Goal is to conduct market research by the end
of 2001.
Possible easing of restrictions for agricultural
trade to Cuba
Payment will be an issue

11
The Retail Sector in Mexico

Gilberto Lozano
New Orleans May 2001

12
Mexicos Political Outlook

Sweeping Political Change Marked Mexico in 2000
End of a 70 year party dictatorship
Peaceful transition to a true democracy
Balance of power among political forces
PRI, PAN, PRD.
Legislative Power VS. Excutive Power
More power brokers to deal with.
eg.Border Verification Points

13
Outstanding Mexican Economic Development
Annual Economic Growth ( GDP)
Preliminary, AC Nielsen with Mexicos Central
Bank Data
14
Meat Poultry Production in Mexico
Units Million Metric Tons
15
Meat Poultry Share of Production
Pork 15.3
Beef 26.3
Beef 20.9
Pork 18.1
P. Meats 7
Chicken 27.9
P. Meats 8.2
Chicken 22.3
Eggs 26.3
Eggs 27.7
Source SAGARPA
16
Mexico Meat Supply 1961-1998 (mt)
2,000,000
Poultry
Pork
Beef
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
17
Mexico. Relative Meat Prices, 1981-2000(Nominal
Prices. Weighted Average Prices)
18
Meat Price Index vs Inflation
Feb. 2000 to Feb.2001
19
Food Retailing Growth
2054 Outlets 5.5 Times More
374 0utlets
312
Mex city No Change
20
Food Retailers by Store Format
21
Mexican Food Retail Sector
Total 2054 Outlets 45 Chains 1000
Sell Meat
Convenience
22
Retail Outlet Geographic Distribution
23
Market Positioning
More Variety
Mega
Hiper
Super
High Price
Low Price
Warehouse
Clubs
Less Variety
AC Nielsen
24
Percentage of Avarage Disposable Income Spent on
Food
25
Percentage of Avarage Disposable Income Spent on
Animal Protein
26
Retail Sales Share Development Programs

Before
2 to 3 Chains at a time.
60 Outlets
Weekend presence
Theme promotions

Since 2000
5 to 8 Retail chains at a time.
220 Outlets
Continuos presence
Theme promotions

27
Retail Sales Share Development Programs
28
Retail Sales Share Development Programs

Since 1999
15 to 20 sale increase
Longer term impact on sales
All week effect
High residual impact
Simpler, more effective and lower cost to
maintain

Before 1999
20 to 25 sales increase
Impact on sales had a short term effect
Only Weekend effect
Low residual impact
Higher cost for desired impact

29
Retail Sales Share Development Programs
30
Retail Sales Share Development Programs

Full time presence Brand Development through
U.S. Meat Sections.
Country of origin identification of the package
at all times.

31
MEF Retail Program Presence With Major Retailers
Soriana 97 vs. 20
C.Mexicana 131 vs. 60
Sams 38 Walmart 33
Gigante
32
Retail Sales Share Development, Approach

Previous
Introduce American meat products to the market
Push demand through the trade
Enhance positive attributes among the trade

Most Recent
Develop product awarenes among consumers
Position American meat products according to
Mexican consumers needs wants
Use American Beef Pork as Solutions for
Retailers

33
Key Attributes for U.S. Pork

MEF will continue to Focus On the 3 main
attributes that were found to be key drivers for
the purchase of Pork
Confiable Wholesome / Safe
Sabroso Tasty
Nutritivo Nutritious

34
Key Attributes for U.S. Beef

After several studies, MEF concluded the Key
Driver/Attribute for Beef is Freshness.
Therefore, all materials and tactics are
developed to deliver this key message.

35
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36
Program Activities

Mystery Shopper
In 3 chains, 149 outlets
Enhance meat department image by training and
evaluating employees.
Direct impact by increasing sales.
Grilling Promotions
Conducted during the summer for brand development
and imaging

37
Key Attributes for U.S. Beef Pork
38
Program Activities
39
Program Activities

Butcher Certification Program by MEF and
Monterrey Tech.
First group of 21 persons certified at VH
Supermarkets in the state of Sonora
Second group will be 500 Wal-Mart employees
Training program to develop new trainers
Commitment to U.S. Meat products
Tool to keep a positive rapport with the chains,
workers and public opinion
On going and nation-wide reach
MEF will keep control of the program

40
Program Activities
41
Program Activities

Brand image development
Billboards
Magazines
Local radio programs and Ad Campaign
Spokes-person
Health professionals
Category management

42
Program Activities
43
Gaining Shoppers for US Meat

Consumer Educational Materials for Wet Markets
First edition of 60,000 issues to be distributed
at wet markets
Inform the consumer regarding differences that
exist between frozen, fresh, refrigerated and hot
meat.
Provide accurate information regarding American
meat production in a simple way (illustrations
approach).

CARIBBEAN
Elizabeth Wunderlich
New Orleans, LA
May 24, 2001

45
BEEF STATISTICS

Exports ? 3664 MT (JanDec, 2000) 23?
Key islands Dominican Republic (-2900) and
Jamaica (-1550) are down by 4500 MT
Dominican Republic permit and access issues
Jamaica with 86 duties brought in lower graded
U.S. beef, this coupled with a new feedlot
industry made U.S. beef considered on par with
local beef
January 2001 some decreases on British based
islands due to Mad Cow/FMD issues
Cayman 165 MT ? 58 (?65)
Barbados 327 ? 25 (?93)
Jamaica 55 ? 24 (?56)

Source USDA USMEF importer interviews
46
PORK STATISTICS

Exports ? 1729 MT (JanDec 2000) ?25
Key Island Dominican Republic (down 1798 MT)
Why? Access issues! Only pork for mftg.
In general, islands are price sensitive toward
U.S. pork
Dutch islands still bring in subsidized EU pork
Brazilian infiltration until FMD outbreak

Source USDA USMEF importer interviews
47
ACCESS ISSUES

Jamaica
virtually no pork proposal to raise duties on
beef 86 to 186
Barbados
Higher duties on pork (207) and beef (40)
St. Lucia
changed pork import requirements 6 mos. ago
Product mix was 40 local 60 imported
Now product mix must be 60 local 40 imported
Dominican Republic
Some mftg. pork allowedbut not enough
Beef from U.S. subject to permit problems

48
PROGRAMS--TRADE

Trade Shows
Americas Food BeverageMiami
Nov. 28 29 8 10 booths
Fall support local shows on islands
Trade Teams
Cancelled BOD team due to FMD problems
TxBC supported sales marketing team (week of
9/10) in conjunction with Beef 101 at Texas AM

49
CARIBBEAN--LAMB

Identify cuts for promotionDenver ribs a
hitsometimes difficult to get
Concentrating on value-added enhanced and items
specific to U.S.
Plans to Market test new products in lamb
islands (Bermuda and Caymans)

50
CARIBBEAN PROGRAMS--RETAIL

Beef Fully Cooked and Underutilized Cuts
Promotion--Bermuda
Used on-pack labels adapted from NCBA retail
program
Results were less than expected sales up 215
lbs.
Felt promotion stopped the bleeding. When
promotion ended, sales dropped 3500 lbs. for the
following month due to FMD hype. For
January/February Bermuda was only British island
which maintained U.S. imports.

51
CARIBBEAN PROGRAMS--RETAIL