AMLO GOVERNMENT WILL HAVE THE LARGEST GROCERY CHAIN IN MEXICO; WILL OVERTAKE OXXO AND 7 ELEVEN

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The Government of Andrés Manuel López Obrador will administer the largest chain of groceries in the country, surpassing the famous convenience stores Seven Eleven, Oxxo and Extra, after he started his territorial structural fusion strategy of Diconsa and Liconsa.

Through this strategy, the Federal Government has reoriented 27,000 convenience stores located in the main cities and remote points of the national territory.

According to information from Fomento Económico Mexicano (Femsa), Oxxo, the largest chain currently, reports 17,724 stores and a growth rate of 106 new stores every month, 41 years after being founded.

It is estimated that the Government of Mexico will add in November thousand more stores, that is to say that there will be about 36 thousand stores where Mexicans will be able to purchase products such as:

  • Basic grains
  • Milk
  • Merchandise produced by the communities
  • Canned
  • Batteries
  • Refreshments

As well as services like:

  • Air time recharges for cell phone
  • Services pay
  • ATM operations

Government premises, which will now be called Mexican Food Security (Segalmex), will become the suppliers of:

  • Prisons
  • Federal police
  • Some state governments
  • National DIF and Mexico City
  • Secretary of Defense
  • Marine Secretary
  • Health Secretary
  • Secretary of Public Education
  • IMSS
  • ISSSTE

In addition, it is contemplated that this plan ends with the peasant organizations, which will no longer receive public resources, in order to put an end to the intermediation and thus deal directly with the producers.

Insured sales

Although the strategy for the Federal Government to be the one that operates companies that intend to block intermediaries and thus improve the quality of life of the population buying producers directly and selling at fair prices has already been done before.

However, this is the first time that the Federal Government has managed a unified infrastructure of this size.

According to the Ejecentral website , the premises of Segalmex claim the same as their predecessors: promote “the development of small and medium producers, as well as seek food self-sufficiency in the four basic grains (corn, wheat, rice, beans) and milk “, As well as promoting financial inclusion.

It is also intended to change the model of attention to the field, since it is returned to the times of guarantee prices, such as when the Mexican Food System (SAM) existed in the 1980s.

Thus, Segalmex makes its own census to reach every small and medium producer of milk, corn, beans, wheat, bread, and rice.

And, to close the circle of the production line of Liconsa and Diconsa, Segalmex will be the supplier of federal and state dependencies, although the solution of the distribution problem still needs to be solved.

How will the Segalmex work scheme be?

Milk

For the collection of milk there is a daily collection of 1.5 million liters in the 47 centers, involving 8 thousand small producers, owners of between one and 35 cows , as well as medium, between 36 and 100 cows, which were registered to the register from on January 1 last.

This will result in 929 million liters per year for 9 thousand points of sale.

For its part, the pattern that will receive the product exceeds 6 million beneficiaries: 3 million minors between six months and 12 years; 1.5 million are elderly and the remaining one and a half million is for low-income population.

a guaranteed price for milk is 8.20 pesos per liter and buy up to 15 liters per cow. Segalmex officials explained that in the south-southeast areas, more collection centers with cold tanks are being searched, or to buy in trucks and share them.

Before, 90 percent of what Liconsa bought was paid three months later , but now, with the guarantee price, they will be liquidated immediately.

Grain

Segalmex will pay 5,610 pesos per ton of corn to one million 600 thousand producers who have up to five hectares of rainfed. A maximum of 20 tons will be bought from each of the 1,600 producers, with a support for freight of 150 pesos per ton.

For beans, they will pay 14 thousand 500 pesos per ton if they have up to 20 hectares of rain or five hectares of irrigation . There will be a purchase limit of 15 tons for each of the 300 thousand producers.

It is planned that 5,390 pesos per ton will be paid for bread wheat, with a limit of 100 tons per producer. Regarding rice, the ton will be purchased at 6 thousand 120 pesos and the limit will be 120 tons per producer.

Source: polemon

The Mazatlan Post