Guatemala's Agritrade evolves with maturing industry
Guatemala's Agritrade evolves with maturing industry
GUATEMALA CITY -- The faces of Agritrade have changed in the 18 years since the Guatemalan trade show was launched.
Importers from Miami and Pompano Beach, FL, are no longer so common within the crowd. Consultants from the U.S. Agency for International Development, who once populated and promoted Central American produce export development activities, were nowhere to be seen, with AID budgets now going to the Middle East. The display booths in the now-biannual trade show are dominated by suppliers targeting Guatemalan fresh produce growers. Once-budding export businesses are more sophisticated now; they are no longer looking for someone -- anyone -- to take their goods. There was scarcely an exporter exhibiting at the March 22-24 show. A large Mex Best booth, however, dominated the center of the show floor. As they had at the PMA show this past fall, the Mexicans managed to attract quite a crowd of conventioneers and offered plenty of food to promote Mexican exports. In many ways, Agritrade is more subtle than it used to be. But there was a lot of business going on at the recent show.
Agritrade organizers arranged for 73 produce buyers from the United States, Europe and even Africa to attend the show. Alongside the exhibit hall was a block of about 30 tables set up for one-on-one meetings, where buyers and sellers could sit and meet for preliminary discussions. In many cases, buyers would subsequently disappear in the SUVs of grower-exporters for a closer look at countryside operations.
The Produce News tagged along on one such jaunt, literally heading for the hills March 25 with long-time baby vegetable exporters, brothers Antonio and Manolo Maldonado, who were making plans to not only ship their French beans and baby vegetables, but also to create a whole new greenhouse operation to ship a wide variety of fresh herbs to the Miami and Everett, MA, operations of Infinite Herbs. Camilo Pe?alosa, vice president of business development for Infinite Herbs, toured the fields and operations of the Maldonados' company, Baby Fresh of Guatemala, and made recommendations for greenhouse design.
With Mr. Pe?alosa, other importers at the meeting included Ben Friedman of Riviera Produce in Englewood, NJ; Mark Hill of International Produce Exchange in New York; John Hickey of John Vena Inc. in Philadelphia; Eric Mitchnick of S. Katzman Produce in New York; and Javier Mendez of Team Produce International Inc. in Miami.
Donald Rogozinski, a director of the organizing committee of Agritrade, didn't yet have figures for the 2006 show, but said exporters claimed $24 million in sales resulting directly from the 2004 Agritrade show. He said many Guatemalan grower-exporters have matured their businesses to the point of being sold out. Yet he indicated that Guatemala has the potential to double its current production and export levels with the proper new markets and expansion of facilities for greater efficiencies.
"Agritrade has evolved. We have more products and more to offer as the country and region have evolved to serve our markets with improved quality," he said. "We all learned to be better trading partners and understand markets and production better as we identified niches. We have more value-added, better packaging and more [quality and food-safety] certifications. We have more packing options for a more retail-oriented market. Having been through different phases and different aspects of technology has enhanced us as we learned to adapt to changes in consumer needs. Experience has made us more shrewd. They've matured and been exposed to different trade shows and know what to ask of each other as trading partners."
Mr. Rogozinski, a native Guatemalan, has an agronomy degree from Texas A&M University. He said that the Central American Free Trade Agreement was planned to be a focal point of discussion at the 2006 Agritrade show, but those plans went awry when all Central American countries except El Salvador had failed to ratify the agreement with the United States. "I hope to see that squared away in the next month," he said. Mr. Rogozinski, who was among the early pioneers of Agritrade, said that the show was also intended to focus on Central American produce as a whole and to "bring the region together." Each Central American country was visited by Agritrade representatives at least twice to be encouraged to participate. But several Central American booth reservations were canceled late in the process, for reasons Mr. Rogozinski couldn't explain. Still, there were individuals from throughout Central America present at the show.
The Agritrade dates conflicted with the Canadian Produce Marketing Association's annual conference, which drew away some attention, Mr. Rogozinski said. Displays in the exhibit hall in Guatemala City's modern Tikal Futura Hotel focused heavily on new technology and packaging. "Locals are always more aggressive in exhibiting products," he said.
Mr. Rogozinski, who is general manager of Semeca in Guatemala City, said that Central American exporters are working to expand their markets to Asia and Europe. Generally speaking, Central American produce exporters are shifting production to suit international markets, and are being more aggressive in developing extensive product lines, which include processed, frozen or ingredient markets. Alternative markets are very healthy for small-volume growers, who need options in times of low fresh markets.
Guatemala has created Guateinvierte as an organization to provide financial support for small- and medium-sized grower groups. Guateinvierte is insuring crops, helping to provide market access and technical support for growers, according to Mr. Rogozinski. "It was created a year ago in response to the need of developing our system." The processors involved guarantee they will buy products. "There is no reason to finance and insure crops if there is no access to markets," he concluded.
Importers from Miami and Pompano Beach, FL, are no longer so common within the crowd. Consultants from the U.S. Agency for International Development, who once populated and promoted Central American produce export development activities, were nowhere to be seen, with AID budgets now going to the Middle East. The display booths in the now-biannual trade show are dominated by suppliers targeting Guatemalan fresh produce growers. Once-budding export businesses are more sophisticated now; they are no longer looking for someone -- anyone -- to take their goods. There was scarcely an exporter exhibiting at the March 22-24 show. A large Mex Best booth, however, dominated the center of the show floor. As they had at the PMA show this past fall, the Mexicans managed to attract quite a crowd of conventioneers and offered plenty of food to promote Mexican exports. In many ways, Agritrade is more subtle than it used to be. But there was a lot of business going on at the recent show.
Agritrade organizers arranged for 73 produce buyers from the United States, Europe and even Africa to attend the show. Alongside the exhibit hall was a block of about 30 tables set up for one-on-one meetings, where buyers and sellers could sit and meet for preliminary discussions. In many cases, buyers would subsequently disappear in the SUVs of grower-exporters for a closer look at countryside operations.
The Produce News tagged along on one such jaunt, literally heading for the hills March 25 with long-time baby vegetable exporters, brothers Antonio and Manolo Maldonado, who were making plans to not only ship their French beans and baby vegetables, but also to create a whole new greenhouse operation to ship a wide variety of fresh herbs to the Miami and Everett, MA, operations of Infinite Herbs. Camilo Pe?alosa, vice president of business development for Infinite Herbs, toured the fields and operations of the Maldonados' company, Baby Fresh of Guatemala, and made recommendations for greenhouse design.
With Mr. Pe?alosa, other importers at the meeting included Ben Friedman of Riviera Produce in Englewood, NJ; Mark Hill of International Produce Exchange in New York; John Hickey of John Vena Inc. in Philadelphia; Eric Mitchnick of S. Katzman Produce in New York; and Javier Mendez of Team Produce International Inc. in Miami.
Donald Rogozinski, a director of the organizing committee of Agritrade, didn't yet have figures for the 2006 show, but said exporters claimed $24 million in sales resulting directly from the 2004 Agritrade show. He said many Guatemalan grower-exporters have matured their businesses to the point of being sold out. Yet he indicated that Guatemala has the potential to double its current production and export levels with the proper new markets and expansion of facilities for greater efficiencies.
"Agritrade has evolved. We have more products and more to offer as the country and region have evolved to serve our markets with improved quality," he said. "We all learned to be better trading partners and understand markets and production better as we identified niches. We have more value-added, better packaging and more [quality and food-safety] certifications. We have more packing options for a more retail-oriented market. Having been through different phases and different aspects of technology has enhanced us as we learned to adapt to changes in consumer needs. Experience has made us more shrewd. They've matured and been exposed to different trade shows and know what to ask of each other as trading partners."
Mr. Rogozinski, a native Guatemalan, has an agronomy degree from Texas A&M University. He said that the Central American Free Trade Agreement was planned to be a focal point of discussion at the 2006 Agritrade show, but those plans went awry when all Central American countries except El Salvador had failed to ratify the agreement with the United States. "I hope to see that squared away in the next month," he said. Mr. Rogozinski, who was among the early pioneers of Agritrade, said that the show was also intended to focus on Central American produce as a whole and to "bring the region together." Each Central American country was visited by Agritrade representatives at least twice to be encouraged to participate. But several Central American booth reservations were canceled late in the process, for reasons Mr. Rogozinski couldn't explain. Still, there were individuals from throughout Central America present at the show.
The Agritrade dates conflicted with the Canadian Produce Marketing Association's annual conference, which drew away some attention, Mr. Rogozinski said. Displays in the exhibit hall in Guatemala City's modern Tikal Futura Hotel focused heavily on new technology and packaging. "Locals are always more aggressive in exhibiting products," he said.
Mr. Rogozinski, who is general manager of Semeca in Guatemala City, said that Central American exporters are working to expand their markets to Asia and Europe. Generally speaking, Central American produce exporters are shifting production to suit international markets, and are being more aggressive in developing extensive product lines, which include processed, frozen or ingredient markets. Alternative markets are very healthy for small-volume growers, who need options in times of low fresh markets.
Guatemala has created Guateinvierte as an organization to provide financial support for small- and medium-sized grower groups. Guateinvierte is insuring crops, helping to provide market access and technical support for growers, according to Mr. Rogozinski. "It was created a year ago in response to the need of developing our system." The processors involved guarantee they will buy products. "There is no reason to finance and insure crops if there is no access to markets," he concluded.
