Oh là là! Mexico already represents 40% of its income for this French company

Malta Cleyton, Neovia’s livestock, and pet food brand, accounts for a third of the national commercial food production and plans to invest 210 million pesos in 2020 for its growth.

The concern of analysts and economic experts about the slowdown in consumption facing the country has not stopped the French company Neovia to continue betting on Mexico, a market that already represents 40% of its revenues, and in which it plans to invest minus about 210 million pesos (mdp) for next year.

Resultado de imagen para Neovia's livestock

The company’s goal for its livestock business division, under the Malta Cleyton brand with which it produces food for livestock, aquaculture, and pets, is to produce 715,000 tons of food – 510,000 intended for ranch animals, fish and shrimp, and 205,000 tons for pets — for the next year equivalent to 470 million dollars.

“In Mexico, 33,000 million tons of balanced food is produced, of which one third is for commercial food, a segment where we are market leaders with 8.3% market share and in which we estimate to grow to 9.5% by 2015 looking for being the market leader, ”says Jorge González, vice president of the Livestock Business of Neovia to Expansión.

To achieve this goal, the company is already targeting investments of 210 million pesos for the expansion and modernization of three plants: 60 million pesos to inaugurate a new production line at its shrimp plant in Culiacán, Sinaloa, in order to open it at the end of next year and with which they plan to increase their production by 20%; 50 mdp to modernize its plant in Monterrey and 100 mdp more for Texcoco.

Resultado de imagen para malta cleyton yucatan

The company has eight plants in the country, six for livestock and aquaculture and two for pet food, in Mérida, Monterrey, Guadalajara, Tlaxcala, Texcoco, Tabasco, Veracruz, Culiacán and Morelos. Mexico already occupies the first place in the income for the multinational, followed by Brazil, then the regions of Europe and Asia.

Resultado de imagen para malta cleyton yucatan

“Mexico is doing things very well in terms of going to the forefront in consumer trends because we finally feed the animals so that they, in turn, feed us. We are at the forefront because we are on the subject of being respectful of the environment, the non-use of antibiotics and especially developing new channels, ”González adds.

The manager explains that by 2025 the firm seeks to create 45 macro distributors – a kind of Oxxos, Modeloramas or Construramas – in the country and generate 25% of revenues through that route in 2025. At the moment they have in Guanajuato, State from Mexico, Colima, Michoacán, and San Luis Potosí.

How is the industry going?

The animal feed industry is equivalent to 1.7% of the country’s GDP, with a production value of 225, 397 million pesos. Mexico is sixth in the world as the main producing country – with 34.81 million tons – after China, the United States, Brazil, Russia, and India, according to Anafab.

This figure includes the food market for birds, cattle, pigs, goats, sheep, fish and pets. “To give us an idea, the market value of this sector is greater than that of medicines for human consumption,” says Iván Franco, founder, and director of the consulting firm Triplethree International.

In total, there are at least 6,000 varieties of the finished food, mixtures, and additives that are traded in the Mexican market. And a total of 400 companies dispute a piece of the cake, although, in practice, approximately 5% of the companies dominate the sales

“Neovia competes in its same size with companies like Cargill, under its division of animal nutrition, and companies that produce their own products in a vertical business such as Bachoco, Pilgrims, Tyson, the producer of San Juan Egg or SuKarne,” explains Franco.

A complicated economic panorama is coming

However, one of the great challenges that the manager observes for next year is the volatility and the exchange rate facing the agricultural sector due to the value of raw materials.

“It is a complicated market because it is globalized, what happens in China affects the rest of the world and that encourages the nervousness of raw materials. We have to advance them and look for a mechanism to know how to shield the exchange rate and make advance purchases for greater increases or price changes. That is an important challenge, ”adds González.

The manager adds that the company performs analyzes that allow studying and knowing the behavior of the demand in the future. For this, it measures approximately 20 variables and they have been able to observe that next year there will be a change in the consumer since they are going to prefer foods at a lower price and they have had to develop alternatives so that they do not impact their sales.

“For example, we develop food additives through allies that have the same performance, the cost does not increase and they develop an optimization. The issue of bags where we store the food previously plasticized and much more expensive and we decided to use a bag of raffia that can be recycled, less expensive to be in line with this demand, ”he concludes.

Despite the industry outlook, it expects that by 2020 production will grow to 36,204 million tons.

Source: expansion.mx

The Mazatlan Post

Facebook Comments