"Only four of the seventeen firms exporting strawberries from Los Reyes are Mexican Others include firms from the US, Austria, Guatemala and Chile, which are taking over most of the production because they have distribution subsidiaries all over the world," explained Miguel Romero Oseguera, Managing Director of the Mexican strawberry marketer Agroindustrial El Molinito.
He stressed that the main handicap for Mexican firms is that they have no direct access to the market in order to sell their strawberries in supermarkets, but neither are they able to deal directly with customers abroad, making it necessary to rely on brokers for the fruit to be sold, who usually take high fees.
He explained that the international firms leading the market count with distribution and commercialization networks in the US, Europe and Asia, through subsidiaries working under contract with supermarkets and potential customers.
He pointed out that national firms do not yet have the production capacity to generate enough income to face the costs of distribution subsidiaries in other parts of the world; unlike firms from some other countries, which are able to ship to various destinations during the entire season and do not rely as much on price expectations based on demand volumes or market saturation.
Finally, Miguel Romero mentions that on top of the competitive disadvantages for foreign commercialization, they face a second consecutive year of overproduction and suggested the need for producers to adjust their production to the market and "schedule the sale of their production with firms, so that the latter can properly meet international demand without saturating the market," he said.
Source: Cambiodemichoacan
He pointed out that national firms do not yet have the production capacity to generate enough income to face the costs of distribution subsidiaries in other parts of the world; unlike firms from some other countries, which are able to ship to various destinations during the entire season and do not rely as much on price expectations based on demand volumes or market saturation.
Finally, Miguel Romero mentions that on top of the competitive disadvantages for foreign commercialization, they face a second consecutive year of overproduction and suggested the need for producers to adjust their production to the market and "schedule the sale of their production with firms, so that the latter can properly meet international demand without saturating the market," he said.
Source: Cambiodemichoacan