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TRADE LOGISTICS
CONFERENCE 2010
• Company Overview

• Logistics

Food Safety
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•

• Costs of freight and customs

• Key Issues & Challenges

 • Kaliroy Produce is an exclusive distributor for:

 Agricola La Primavera S.A. de C.V.

 Bioparques de Occidente S.A. de C.V.

• We are a fully integrated organization, from

COMPANY
OVERVIEW growing to marketing. 3

• Total Production acres managed by the company

are more than 1,000 (440 Hectares ).

Acres Has

 Open Field 375 150

 Green-House 725 290

 DISTRIBUTION

COMPANY 4
OVERVIEW Nogales, AZ
GROWING AREAS

McAllen, TX

CULIACAN

SAN GABRIEL

JALISCO TO NOGALES 1,822 KMS, AVERAGE TIME 19:00 HRS

SINALOA TO NOGALES 973 KMS, AVERAGE TIME 9:30 HRS

JALISCO TO McALLEN 1,270 KMS, AVERAGE TIME 13:00 HRS

 Operations

COMPANY
OVERVIEW 5
 PRODUCT PACKAGE PRESENTATIONS

TOMATOES

PRODUCT PACKING

Roma 25 Lbs., clams

Vine Ripe 2 Layer/25 Lbs., RPC

HH Beefsteak 15 Lbs, 5lbs, clams

Grape Volume-fill, clams

LOGISTICS 6

TRUCKLOAD MAP ON PACKAGES SHIPPED

 25 LBS = TRUCK LOAD WITH 1920 BOXES

 2 LAYER = TRUCK LOAD WITH 2112 BOXES

 1 LAYER = TRUCK LOAD WITH 2400 BOXES

 INSPECTIONS AT THE BORDER

INSPECTIONS NEVER ARE LESS THAN 4

HOURS, COULD BE 8 HOURS

LOGISTICS 7

NEVER SPENT MORE THAN 2 HOURS

ON INSPECTIONS
 MEXICAN CUSTOMS

LOGISTICS 8

MEXICAN
CUSTOMS

KEY POINTS:

 MAYMAR FACILITY INSIDE THE FISCAL CORRIDOR

 GOOD TIME INSPECTIONS
LOGISTICS 9

Source:
 FOOD
SAFETY 10

Mission
“Detect and prevent terrorists and terrorist weapons
from entering the United States, while facilitating
the orderly and efficient flow of legitimate trade
and people at and through our Nation’s borders”.
 Committed with our product and people Security,
since October, 2009 we are a C-TPAT Certified
and Validated Company.

FOOD
It means hard work and costs, however, the
SAFETY 11
benefits we received are better. The Company
invested around of $200,000 on C-TPAT Program
implementation.
- Wal-Mart Program
- Fast Lane
- Tranquility
- Possibility of better trade relations
 • One of our most important concerns is to provide
our customers with safe and quality products.

• Our operations have an excellent & reliable

Food Safety Program.

 Our companies are certified for:

 GMP (Good Manufacturing Practices)

 GAP (Good Agricultural Practices)
FOOD  HACCP
SAFETY  Mexico Calidad Suprema 12

 SENASICA

www.primuslabs.com/kaliroy/index.asp
http://www.senasica.gob.mx/
http://www.mexicocalidadsuprema.com.mx/organismos.php
 PRODUCTION
  2008 2009 2010 TOTAL

EXPORT BOXES PACKED 5,791,910 5,708,832 6,141,680 17,642,422

DOMESTIC BOXES PACKED 1,762,316 1,794,390 1,896,014 5,452,720

EXPORT TRUCK LOADS 2,896 2,854 3,071 8,821

COSTS
USD FIGURES  2008 2009 2010 TOTAL
COSTS 13
FREIGHT 5,552,356 5,755,037 5,957,496 17,264,889

AMERICAN CUSTOM 243,161 246,957 296,184 786,303

MEXICAN CUSTOM 207,792 223,250 245,384 676,426

MAYMAR 191,133 188,391 202,675 582,200

DUMPING 53,618 46,263 41,040 140,921

SEALS 11,584 11,418 12,283 35,285

TOTAL 6,259,644 6,471,316 6,755,063 19,486,023

FREIGHT FROM JALISCO $2,500 USD
FREIGHT FROM SINALOA $1,500 USD
 WAL-MART OPPORTUNITY

• Since 2007 Wal-Mart developed a program to buy

directly from the growers.

• We deliver our product directly to Wal-Mart’s

CHALLENGES Distribution Centers at Los Lunas, NM. and Casa 14

Grande, AZ.

• We also deliver at Nogales, AZ to SunFed which

distributes to more Wal-Mart’s Distribution Centers.

• We sell our product to others Wal-Mart’s direct

suppliers. (Brokers)
 KEY ISSUES & CHALLENGES

• Keep and Improve all Certifications

• Increases on Diesel affects us directly (Freight Cost)

• Military check point @ Benjamin Hill, inspection lasts

4 to 8 hours

CHALLENGES • CTPAT compliance with ALL business partners 15

• New technology @ Nogales border CBP to expedite

the inspection processes

• Maintain and improve all food safety initiatives

(Culture)

• Improve OTD (On Time Delivery)