orchard

vegetables
Growing success!
No. 08 April 2011

OPPORTUNITIES GETTING THERE GLOBAL WINDOW SINALOA’S MARKET

SOIL NUTRITION TRACEABILITY: USDA INSPECTION EXPANDING
AND TOMATOES SPREADING CODE SERVICES PRODUCE SCOPE
 EDITORIAL
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.
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.
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.
Adriana Elizondo Villarreal
staff
General Director
Alberto E. Peña Pedraza

Commercial Director
Adriana Elizondo Villarreal

Translation
Diana Margarita Morales V.

Contributors
Gonzalo López
Ing. Maria Castro
Lic. Radko Tichavsky
Karla Ugalde
Luis Gerónimo Gómez Mesillas
Christopher Purdy
Lic. Enrique López Félix

Circulation
Luis Angel Elizondo

Redaction and Style

Fernando Torres

Editorial Design
BMazul.com

Art Director
Beba Mier

Design
Cinthia Castañeda
Manuel Robles

Photography
shutterstock.com

Subscriptions
+1 (956) 537-9459. McAllen, TX, USA
+52 (81) 8850-3830. Monterrey, NL, MX
ventas@agro-expansion.com
www.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.
Index
Opportunities

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

GLOBAL G.A.P. :
The importance of global certification
There is an organization aimed at implementing and certifying Good Agricultu-
r al Pr actice, in order to provide the world with safe, sustainable agricultur al
products. GlobalG.A.P. is constituted by more than 300 members around the globe
that work together to set tr ansparent 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.

I
t 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-
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. Global GAP small farmers session. London, October, 2010.

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.
●●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.

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.
●●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 er a
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.
 OPPORTUNITIES

Soil nutrition
and 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.

R adko Tichavsky
 Clusters of organic
tomato greenhouse
production
Clusters of organic tomato greenhouse
production.
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.
S
oil 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.
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,

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
As controversial as
the use of vitamins in
agriculture is, it is still
believed that vitamin
C increases the
absorption of calcium
in plants.
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- Pruning is a practice recommended for
tomato production
mon practice among organic produ-
cers, although not recognized by con-
ventional producers, however it adds
power to the plant. tion is more resistant to insects, and
It is also very helpful to grow “guard” pathogens.
plants around the tomato crops to pro- The desired levels of refraction at
tect tomatoes against pests, and to an organically produced tomato fruit
stimulate their growth; the most impor- should exceed the 12 Brix, and ideally
tant of them is sweet basil. A good idea should be close to 18 Brix.
can be a tomato intercropping with this Good soil composition prevents 90%
aromatic plant. of diseases and pests. Remember, it
It is important to observe the level is much cheaper and easier to prevent
of refraction in sap of the plant. The than to cure. An adequate composition
greater the molecular concentration of the soil will translate into highly mi-
of the liquid, the higher the refractive neralized plants, resistant to climate
index and higher sugar, mineral, and stress, and immunes to diseases,
protein content will be. The fruit is then and pests. Soil care means fruits with
sweeter tasting and richer in minerals. great taste, and benefits not only for
Furthermore, the plant with high refrac- your health, but for your business.
 OPPORTUNITIES

Dawn comes earlier at the Terminal

Market
of Culiacan
CENTR AL DE ABASTOS DE CULIACAN, THE HUB THAT JOINS THE WEST TO
THE NORTHEAST OF MEXICO AND TO THE WORLD
W
ith 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
At the beginning, most of them were owner-served small busi-
businesses. Almost each and every of its 190 warehouses ness, but they have grown through time.
are running at 100%. A thousand and one products have

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

traveled some kilometers or maybe they arrive to this trading are now not confined to California and Florida, as it used to
center in the Pacific after crossing half the country from the be. Nowadays, commercial scope spreads to every corner of
distant coasts in Veracruz. They will not take long to be again the United States. However, he made clear that this is mostly
on the road. Everything here is strictly fresh. The Terminal the result of an effort of the businessmen. In the case of the
Market of Culiacan takes pride in a very high product rota- Terminal Market of Culiacan there are less than a dozen busi-
tion. You will never find anything outdated here. nessmen who establish direct connections. They attend PMA
and have their own expertise and vision. Some of them work
“At the beginning, according to Mr. Enrique Lopez, from the through Nogales or have warehouses on the border. Others
Terminal Market of Culiacan, there were only small busines- trade through McAllen, from where the whole northeast of
ses. Nobody had a name. The owners would serve the clients the US is being supplied. They generally work with brokers
at the counter. Within time, these small businesses became who deliver the goods more to the North. They may be recei-
full fledged enterprises with a formal structure”. Lopez des- ving state or federal support.
cribes how, today those dynamic organizations have a good
command of logistic and supply chain aspects. They are sup- Some of the most important products for the American mar-
ported by teams specialized in sales, storage and adminis- ket are tomato, a wide variety of chili, cucumber and, mostly,
tration. “All that is needed to run a real business”. eggplant, which is not very popular in the national market.
Between 2001 and 2008, the terminal market developed a
Entrepreneurial talent and exports strategy and many exhibitions were carried out. International
exhibitors, traders and people interested in trade were invi-
Agro-Expansion was particularly interested in knowing how ted. This was a good experience, allowing direct contact with
businessmen in the Central de Abastos de Culiacan have businessmen from faraway locations, such as Chile. Unfortu-
succeeded in capturing the market beyond their borders. nately, there have been so many agricultural exhibitions lately
Mr. Lopez tells us that the exports of agricultural products that the market has been saturated, and its effect is now void.
 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-

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

Businessmen must have expertise and vision, make direct

connections and attend networking shows. They generally
work with brokers, too.

Hard times. Great opportunities

Wholesale food markets may receive support from the govern-
ment through pymes funds.
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.

Devising the Optimal
Distribution
Network
There are no non-important aspects
regarding distribution in the current
economic environment.
GETTING THERE
I
n 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.
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:
 Creating a strategic distribution
network map implies compile every
bit of information about distribution
centers.
●●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
Each point in throughput capacity (current and
site maximum); number of SKUs; is
the distribu- it owned or leased (if leased, term of
tion network lease); geographic position; 3rd par-
ty or self-operated; service region
must be mapped and customer base; the frequency
and characte- and mode of outbound shipments
(to customer locations and inter-
rized in terms facility transfers).
of its logistics 3. The customers served should
function. 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: To conclude, the final aim is to project
●●A sample period is chosen and all the dynamic distribution network model
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.

The final aim is
to project the
dynamic dis-
tribution net-
work model to
a future state
or design year.
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.
●●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
Satisfy customer’s demands as they
evolve and seek costs reductions is
essential.
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 Consulting
www.komintl.com
Contact Canada:
•Denise Beamish (Marketing & Sales Mana-
ger)
denise_beamish@komintl.com
Tel. (514) 8994000
Contact Mexico:
•Maria Castro (Partner – Director)
maria_castro@komintl.com
•Gonzalo López (Marketing &
Sales Manager)
gonzalo_lopez@komintl.com
Tel. +52 (55) 56711870
 getting there

Tr aceability:
a code says more than a
thousand words
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.

It is spreading through the world

Traceability 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
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 tr aceabili-
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
tr aceability
However, 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-
In the US, the industry
is working on building
a common framework
and nomenclature
for case labeling, and
connectivity across the
supply chain.
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
border
We 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.
 GLOBAL WINDOW
USDA INSPECTION SERVICES:
A helpful Tool for the International
Fruit and Vegetable Industry
ROBERT C. KEENEY
DEPUTY ADMINISTRATOR U.S. DEPARTMENT OF AGRICUL-
TURE, AGRICULTURAL MARKETING SERVICE, FRUIT AND
VEGETABLE PROGRAMS.
Selling produce in the U.S. can be cha-
llenging, but there are resources avai-
lable to help you meet these challenges.
our customs broker can navigate the
rules and regulations necessary to ex-
port produce into the U.S., but you may
need additional help.
T he 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-
ment of fresh or processed produce can request an official
USDA inspection. Inspections provide an unbiased, indepen-
dent certification of the quality and/or condition of products
in domestic and international marketing systems. For sell-
ers, these services demonstrate that products meet specific
grade or contract requirements; for buyers, grading services
ensure that the expected quality is being delivered.
“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
An inspection by USDA helps both the seller and the buyer as-
can visually inspect or measure the ambient temperature of suring they are fulfilling their expectations in every operation.
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 Tr ade
Associations for Education
USDA 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 Inspection
USDA 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.
USDA Inspections
can be used as:
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.
 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.
F
or 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 Trade with Japan is
avocado supplier, surpassing our South
American competitor. Watermelons,
increasing, where our
cantaloupes, and berries are also im- avocado and squash
portant Mexican imports. Our country
is also the main provider of lemons and are highly apprecia-
mango.
However, the US is not the only destina-
ted.
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

MEXICAN AGRICULTUR AL EXPORTS TO THE U.S.

Other agricultural Livestock and animal

products products
Other vegetables and
19% 9% preparations

16%
21%
Beer
6%
4% 15% 10%
Peppers

Other prepara-
tions (not fruit Tomatoes
juice)
Fruits and
preparations

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.

26 AGROEXPANSION
(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 thinking

The 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

Mexican exports of fruits and vegetables
to the US exploted in the last 15 years.
Avocados, fresh or dried 1 505 Source: USDA.

Avocados, processed 12 67

Grapes, fresh 59 258

Limes, fresh or dried 20 155 Horticultural production in our country

is highly technified. Irrigation agriculture
Watermelons, fresh 18 174 prevails and is growing. Source: Siacon,
in “La producción de hortalizas en Méxi-
co”, Financiera Rural, Mexico, 2008.
Mangoes, fresh3 63 142

Strawberries, fresh 15 133

Strawberries, frozen 18 67

Blackberries, mulberries, and * 91

loganberries, fresh
Raspberries, fresh * 62

Papayas, fresh 4 56

Other 111 350

1991-1993 2007-2009
Support and assistance
vegetables and preparations 322 2,059
A number of government funded organi-
Tomatoes, fresh 1 505 zation at a federal or state level provide
assistance to producers and exporters,
Peppers, fresh 12 67 to improve the quality of their products.
SAGARPA, NAFTA, and more than 40
Cucumbers, fresh 59 258
Free Trade Agreements have exceeded
Squash, fresh 20 155
all expectations in recent years. Another
driving force has been the participation
Onions, fresh 18 174 in international events, where Mexico’s
presence has increased in the last
Broccoli, frozen 63 142 years. Thus, through the Mex Best im-
age “The Best from the Fresh”, a big
Asparagus, fresh 15 133
effort has been made to position Mexi-
Lettuce, fresh 18 67 can produce as the best of the mar-
ket in terms of freshness, and quality.
Cauliflower and broccoli, fresh * 91

Other * 62
 fresh produce: sown field area in hectare

300, 000

250, 000

200, 000

150,000

100,000

50,000

0
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
Irrigation Seasonal

In 2002, we participated in 7 events, comfortable with produce grown in their

with 57 participants involving 4,114 own country. So, to become really com-
producers. Six years later, we were in petitive, achieving certifications and
37 events, with 638 participants that traceability stands as a key objective.
To become really stood for 17, 521 producers: that is
four times more. In the local front, we face growing costs
competitive, of input, a weak economy, lack of quali-
Challenges and opportuni-
achieving certifica- ties for a healthy future
fied labor, and higher standards of food
safety and sustainability.
tions and traceability Looking to the years to come, there are
areas that demand hard work. It is es- Happily, the future is full of opportuni-
stands as a sential to continue advancing in food ties. The demand for fruits and green

key objective. safety. Even when most American con-

sumers trust the food they find in the
produce is now in function all year long.
The growing of the Hispanic population
supermarket, 4 out of 10 still are wor- in the US is also a driving force of this
ried about the safety of fruits and pro- demand. Furthermore, the awareness
duce, and almost all would feel more of the role of produce in a healthy diet
is also gaining strength every day.
 GETTING THERE

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 stor age location. These locations can be on the floor, in shelving units,
r acks, case flow lanes, etc… These locations are usually labeled for tr ack abili-
ty and tied into a database that has some basic information such as: SKU cha-
r acteristics, quantity on hand and aver age sales.

Optimal slotting incorpor ates historical sales,

inventory levels, growth, numbering, hit r ates, 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.

The right match between assigned slot types and slots available make work easier for everyone.
T
he 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.
These slot types can be as
small as shelving units or as
large as multiple deep and
multiple faced pallet 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.
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.
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 Limitations
2. Building clear height
3. Sprinkler levels
4. Maximum fork lift height
5. Vendor TIER and vendor HI
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
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 Consulting
www.komintl.com
Contact Canada:
•Denise Beamish (Marketing & Sales Manager)
denise_beamish@komintl.com
Tel. (514) 8994000
Contact Mexico:
•Maria Castro (Partner – Director)
maria_castro@komintl.com
•Gonzalo López (Marketing & Sales Manager)
gonzalo_lopez@komintl.com
Tel. +52 (55) 56711870
 GLOBAL WINDOW

Broccoli
from Guanajuato
captures the US
market
Broccoli, a vegetable so prized by the American
consumer, flagship of a healthy way of life and r aw
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”

T
his 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-
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.

usa global brocolli import & produce origin

90%
17% GUANAJUATO
IMPORTS

USA has 17% of global imports of broccoli. In the other hand, 90% of the fresh and frozen broccoli which
Mexico exports comes from producers in Guanajuato.
Our northern neigh-
bour is a mature
market in which the-
re are higher chances
to position Mexican
broccoli;
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.
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
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 Administr ation regulations.
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/
FDA
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.
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. Being prepared for every inspection at the border is the best way to avoid
time-consuming rejections.

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.

While many importers see the We would be more than pleased to discuss in greater detail
what steps your company can take to minimize FDA issues.
FDA as just another nuisance Remember – an educated importer/exporter is a successful
to the import process, they are importer/exporter.

actually asked to perform a Phillip Garcia

Phillip Garcia Customs Broker

monumental task. 700 S. Bridge St

Pharr, TX 78557
(956) 843-7050
Fax: (956)843-9511
Phillipgarcia.com
phillipgarciachb@yahoo.com
 AGROEVENTS

Events
calendar
Congreso Nacional Set Canada 2011
de la Sociedad
Mexicana de 11 - 13 may
Ciencias Hortícolas
Toronoto, Ontario, Canada
Culiacan, SIN, Mexico
Nadia Rousseau●
10 - 14 April nadia.rousseau@●
comexposium.com
www.somech.com.mx
+1-514 289-9669 ext 2241
www.setcanada.com/set/en/
index.sn

Simposio Internacional de
Cultivos sin Suelo e Hidroponía

GLOBALG.A.P Tour Puebla, PUE, Mexico

15 - 19 May
Mexico D.F., Mexico
www.soillessculture.org
11 - 12 April
www.tour2011.org Convención Mundial
del Chile

Leon, GTO, Mexico

26 - 28 Mayo
www.octavaconvencionmundi-
aldelchile.com.mx
april may

Curso de Producción y Diseño United Fresh

en Invernadero
Tucson, Arizona, Estados Unidos
4 - 8 April
ag.arizona.edu/ceac
Nutrición orgánica
especializada (Course)
Tezoyuca, MOR, Mexico
JUNE
Nueva Orleans, Luisiana, ●
Estados Unidos Alimentaria México
2 - 5 May
Mexico, DF, Mexico
www.unitedfresh2010.org/
uf2011 May 31 - June 2
alimentaria-mexico.com
Sial Canada
Convención anual ASTA
Toronoto, Ontario, Canada

7 - 8 de April 11 - 13 Mayo Huntington Beach, California,

Estados Unidos
www.fira.gob.mx www.sialcanada.com
18 - 22 June
www.amseed.com
If you know Craig
and Tony, then you
know United Fresh.
Or you might know others like them. Thousands of industry leaders already
They’re leaders who want to make a know the value of working together
real difference in the produce industry, through United Fresh. Are you ready
and shape their own future in the to make a difference?
process. People just like you.

www.unitedfresh.org
Craig Kelly and Tony Mosco, CHEP, Orlando, Florida 202-303-3400
AGROEXPANSION 41
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