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National Pork Board Leadership Team Visits USMEF-Mexico

Published: Nov 21, 2008

National Pork Board Leadership Team Visits USMEF-Mexico

As part of the National Pork Board Pork Leadership Academy, an NPB team saw the Pork Checkoff and USMEF-Mexico at work promoting U.S. pork exports in Mexico, Nov. 11 to 14. The Pork Leadership Academy is a yearlong leadership program funded by the Pork Checkoff to identify and give leadership training to pork producers while exposing them to the program areas of the Pork Checkoff.

John Hinners, USMEF’s assistant vice president for industry relations, gave the visiting NPB team an overview of USMEF, and USMEF Regional Director for Mexico and the Dominican Republic Chad Russell provided details regarding the key drivers behind U.S. pork export success in Mexico:

  • Market access
  • Competitor developments
  • Domestic production
  • Political situation
  • Economic situation
  • Consumer trends

Aaron Gutierrez, USMEF-Mexico marketing director, explained USMEF’s marketing strategy: a top-down approach that focuses primarily at the point of sale. It involves the “market discovery process” to make best use of USMEF’s funding sources’ dollars.  USMEF develops partnerships with organizations that align to its strategy and evaluates those business partnerships on a regular basis to allocate promotional resources to the best-performing activities.

The NPB team learned that USMEF-Mexico constantly evaluates relationships with leading Mexican supermarket chains and ensures the use of key tactical retail elements to differentiate U.S. red meats at the meat case.  Another area of focus for USMEF is training retail meat case personnel to display product to its best advantage and explain product benefits to potential purchasers. USMEF concentrates its efforts in carefully selected zones:

  • Mexico City metropolitan area
  • Guadalajara
  • Monterrey
  • Queretaro

In addition, USMEF-Mexico focuses its resources on the largest supermarket partners:

  • Wal-Mart (500 stores)
  • Soriana (more than 500 stores)
  • Comercial Mexicana ( 250 stores)
  • Chedraui (200 stores)
  • Casa Ley (25 stores)
  • Al Super (27 stores)
  • VH (30 stores)
  • Costco (32 stores)

Following the briefing by USMEF staff, the NPB leadership team visited the Naucalpan and the Central de Abasto markets to see for themselves the wet markets where 60 percent of the meat consumed in Mexico is sold.  The group also observed USMEF promotions in action at Soriana, COSTCO and Chedraui supermarkets.

Half of the group traveled with USMEF Technical Director Nelson Huerta to Puebla and the other 11 visited sites in Mexico City with USMEF HRI Manager Julieta Hernandez. The Puebla group went to RYC Alimentos facilities and lunched with a Mexican senator. RYC Alimentos is a TIF (Federally Inspected) plant and one of the main importers of U.S. pork in Mexico.

“Through the tours arranged by USMEF, we were able to see the works of the Pork Checkoff and USMEF in action firsthand,” said James Magolski, a graduate research assistant in the Department of Animal Sciences, North Dakota  State University. “The tour of RYC meats gave us an in-depth look at procedures in a typical further processing plant in Puebla.  It was great to talk to (co-owner and U.S.-educated meat scientist) Ramon Lozano and learn some of the marketing trends and public perception of meat products throughout Mexico.  

“The presentations at the Hacienda by both the Mexican senator and the secretary of livestock of Puebla were very informational,” added Magolski.  “We discussed production agriculture in Puebla and the current challenges facing the regional livestock industry.  Speaking for myself, I learned a lot of things that I can take back to my state producers and educate them on the actions of USMEF and their importance to the U.S. livestock industry.”

The Mexico City group toured the facilities of OPERATIF, a TIF plant which purchases U.S. pork and processes it into deboned hams. The team witnessed two U.S. pork promotions that USMEF conducts with the restaurants Hacienda Los Morales and the Hard Rock Café.

“These visits are an excellent means to better inform future leaders of the U.S. pork industry about the importance of foreign markets to their financial health and the value USMEF adds to their bottom lines,” said Russell.

Mexico is the second-largest foreign market for U.S. pork and pork variety meats, with imports of 267,230 metric tons (589.1 million pounds) valued at $475 million in the first nine months of 2008.

National Pork Board Leadership Team Visits USMEF-Mexico

As part of the National Pork Board Pork Leadership Academy, an NPB team saw the Pork Checkoff and USMEF-Mexico at work promoting U.S. pork exports in Mexico, Nov. 11 to 14. The Pork Leadership Academy is a yearlong leadership program funded by the Pork Checkoff to identify and give leadership training to pork producers while exposing them to the program areas of the Pork Checkoff.

John Hinners, USMEF’s assistant vice president for industry relations, gave the visiting NPB team an overview of USMEF, and USMEF Regional Director for Mexico and the Dominican Republic Chad Russell provided details regarding the key drivers behind U.S. pork export success in Mexico:

  • Market access
  • Competitor developments
  • Domestic production
  • Political situation
  • Economic situation
  • Consumer trends

Aaron Gutierrez, USMEF-Mexico marketing director, explained USMEF’s marketing strategy: a top-down approach that focuses primarily at the point of sale. It involves the “market discovery process” to make best use of USMEF’s funding sources’ dollars.  USMEF develops partnerships with organizations that align to its strategy and evaluates those business partnerships on a regular basis to allocate promotional resources to the best-performing activities.

The NPB team learned that USMEF-Mexico constantly evaluates relationships with leading Mexican supermarket chains and ensures the use of key tactical retail elements to differentiate U.S. red meats at the meat case.  Another area of focus for USMEF is training retail meat case personnel to display product to its best advantage and explain product benefits to potential purchasers. USMEF concentrates its efforts in carefully selected zones:

  • Mexico City metropolitan area
  • Guadalajara
  • Monterrey
  • Queretaro

In addition, USMEF-Mexico focuses its resources on the largest supermarket partners:

  • Wal-Mart (500 stores)
  • Soriana (more than 500 stores)
  • Comercial Mexicana ( 250 stores)
  • Chedraui (200 stores)
  • Casa Ley (25 stores)
  • Al Super (27 stores)
  • VH (30 stores)
  • Costco (32 stores)

Following the briefing by USMEF staff, the NPB leadership team visited the Naucalpan and the Central de Abasto markets to see for themselves the wet markets where 60 percent of the meat consumed in Mexico is sold.  The group also observed USMEF promotions in action at Soriana, COSTCO and Chedraui supermarkets.

Half of the group traveled with USMEF Technical Director Nelson Huerta to Puebla and the other 11 visited sites in Mexico City with USMEF HRI Manager Julieta Hernandez. The Puebla group went to RYC Alimentos facilities and lunched with a Mexican senator. RYC Alimentos is a TIF (Federally Inspected) plant and one of the main importers of U.S. pork in Mexico.

“Through the tours arranged by USMEF, we were able to see the works of the Pork Checkoff and USMEF in action firsthand,” said James Magolski, a graduate research assistant in the Department of Animal Sciences, North Dakota  State University. “The tour of RYC meats gave us an in-depth look at procedures in a typical further processing plant in Puebla.  It was great to talk to (co-owner and U.S.-educated meat scientist) Ramon Lozano and learn some of the marketing trends and public perception of meat products throughout Mexico.  

“The presentations at the Hacienda by both the Mexican senator and the secretary of livestock of Puebla were very informational,” added Magolski.  “We discussed production agriculture in Puebla and the current challenges facing the regional livestock industry.  Speaking for myself, I learned a lot of things that I can take back to my state producers and educate them on the actions of USMEF and their importance to the U.S. livestock industry.”

The Mexico City group toured the facilities of OPERATIF, a TIF plant which purchases U.S. pork and processes it into deboned hams. The team witnessed two U.S. pork promotions that USMEF conducts with the restaurants Hacienda Los Morales and the Hard Rock Café.

“These visits are an excellent means to better inform future leaders of the U.S. pork industry about the importance of foreign markets to their financial health and the value USMEF adds to their bottom lines,” said Russell.

Mexico is the second-largest foreign market for U.S. pork and pork variety meats, with imports of 267,230 metric tons (589.1 million pounds) valued at $475 million in the first nine months of 2008.