Agri-Food Trade Service

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This Web site was created 15 years ago as a source of market information and export support activities for Canadian companies. As the web evolves and our interaction with clients intensifies we've decided to take a more active approach in keeping you informed with what we've published recently and to give a sneak peak at what you can look forward to in the coming months in the hopes of giving you a reason to come back and get more involved with our projects.

SIAL Canada - Supporting Canadian Agri-Food Manufacturers Realize Exports

Comments (2)

Speaker:
Lynn Coté, Sector Advisor, Light Manufacturing, Export Development Canada (EDC)

Lynn Coté delivered an informative presentation highlighting EDC's market development activities and how the corporation supports the food and beverage sector within Canada. Lynn specifically highlighted EDC's emerging market, Mexico, as a potential opportunity market for Canadian exporters.

EDC is Canada's Export Credit Agency, which is a crown corporation owned by the Government of Canada. EDC aims to support and develop Canada's export trade and international business efforts. In addition, they offer financing and insurance solutions for Canadian exporters and investors. EDC also offers various services and products for exporters, including: risk mitigation, exporter credit capacity, and buyer credit capacity.

In 2011-2012, EDC will be geographically focusing on two developed markets important to Canada, which include the United States and the Eurpean Union. There are a number of emerging markets that are also important for Canada to develop business relations with including Mexico, Brazil, Chile, Peru, GCC (Halal). Subsectors that are increasingly important are organics, nutraceuticals and functional foods, and private label. EDC is currently working to expand their knowledge on the Nutraceutical Supply Chain Study, how Canada can be competitive (opportunities and who are the buyers?), the EU's $7 billion organic market, and where EDC can work with partners to support the industry.

Lynn turned the focus to Mexico as she explained why it is such an important market for EDC and Canada. In 2010, EDC support in Mexico totalled $2.4 billion. EDC established direct representation in Mexico City in 2000, and in Monterrey in 2002. With a current population of 112,468,855 (July 2010), and more than 20 million living in Mexico City, this lucrative market is showing significant growth in consumption of food, soft drinks, and premium alcohol. In fact, Mexico is the world's largest consumer of carbonated beverages. Mexican consumers are relatively young (50% aged 15-44 years) and living in major cities, which are experiencing demographic changes. Demand for high-quality and convenience foods are increasing, as Mexico experiences an increase in middle- and upper-classes. Consumer consumption of milk has grown 18%, green vegetables 17%, poultry 11% and red meat 6%.

Since NAFTA, Mexican imports of agri-food products have more than doubled. Canada's main agriculture and agri-food exports to Mexico include: canola, beef, wheat, wood pulp, malt, barley, guts, bladders and stomachs of animals, pork, sugar, processed foods and beverages. Opportunities exist to import value-added food and beverage products from Canada such as beef, pork, deli-style meats, sauces, condiments and spices, ready-meals, specialty grains and foods, canned goods, beverages, etc. Processed, ready-to-eat, and frozen meals are increasing as well. Consumers demand better food quality, presentation, and packaging as well as fresher flavours and more hygienic conditions. Private label products are becoming more popular as consumers shop more at retail outlets such as convenience and club stores. Presently, 20% of private label brands sold in Mexico are imported.

Food ingredients are also a growing market that has not been fully exploited. Some of the fastest-growing Mexican ingredient imports are canola and flaxseeds, flour and meal of oilseeds. The Hotel and Restaurant market is experiencing significant growth and is expected to reach $43 billion by 2010. The best opportunities for Canadian products are supplying high-end restaurants and hotels in Mexico's major cities and tourist regions. Health and wellness products are yet another segment seeing an increasing demand. Opportunities exist in fortified and functional products particularly fortified milk products, which is consumed by Mexicans in all economic segments.

Lynn closed by highlighting upcoming events in Mexico that are of particular interest to Canadian exporters and important contacts for companies to be aware of.

Upcoming events:

Alimentaria Mexico
Dates: May 31 - June 2, 2011. Mexico City.
www.alimentaria-mexico.com

Abastur
Dates: August 30 - September 1, 2011. Mexico City
www.abastur.com

Sample Canadain Mexico City, November 2011. Mexico City.

Contacts: EDC in Mexico

In Canada

Stephanie Butt-Thibodeau
Regional Vice-President -Mexico, Caribbean and Central America
Tel.: (613) 598-3849
Email: sbutt-thibodeau@edc.ca

Jean-Sébastien Charron, Senior Associate –Mexico, Caribbean and Central America
Tel: (613) 598-2993
Email: jcharron@edc.ca

In Mexico

Johane Seguin
Chief Representative –Mexico
Tel: 613-598-2762 or (011) 52-55-5387-9316
Email: jseguin@edc.ca

Nathan Andrew Nelson, Regional Manager
Mexico City
Tel.: (011) 52-55-5387-9319
Email: nnelson@edc.ca

Marcos Pruneda, Regional Manager
Monterrey
Tel.: (011) 52-81-8344-3200 Ext. 3360
Email: mpruneda@edc.ca

Mariana Novo, Associate Regional Manager
Mexico City
Tel.: (011) 52-55-5387-9318
Email: mnovo@edc.ca

For more information regarding opportunities and trade statistics for Mexico, please visit the Mexico market information section on the ATS website.

If you have any further questions regarding the information shared during this presentation, please contact:

Lynn Coté,
Sector Advisor, Light Manufacturing
Export Development Canada (EDC)
LCote@edc.ca

Until next time,
Cheryl Hogan
Project Officer, ATS
cheryl.hogan@agr.gc.ca

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