Doporto Pr1me Capital: vertical integration, the future of agribusiness
Currently the avocado industry in our country represents one of the great national commercial and export values. Mexico is the main supplier to the international market with a contribution of almost 46% of the value of world exports. Likewise, the demand for this fruit has increased in 26 countries that include members of NAFTA, TPP, TLCTN and China. By 2030, the value of exports is estimated to be $ 4.655 billion.
Against this background, the vertical integration of this industry represents the opportunity to generate greater added value in the entire production, distribution, transformation and marketing chain of avocado.
Companies like Doporto Pr1me Capital, led by Luis Doporto Alejandre , have begun to materialize this strategic vision through synergies and collaborations that coincide in a common objective: to strengthen and enhance the competitiveness of the industry through innovation in the chain through vertical integration, which in principle benefits all participants, including avocado producers.
“The strategy of DOPORTO PR1ME CAPITAL demonstrates that, through a vertical integration correctly applied to any business or industry, it is possible to generate added value to the product and at the same time benefit local producers and encourage the growth of the communities’ economy they inhabit ” concluded Luis Doporto Alejandre.
With the United States as our largest client (it purchases 80% of national production) and Michoacán as the only state authorized and certified to export to that country, Doporto Pr1me Capital promoted the constitution of three new business units: El Rancho Agrícola el Zapotal , Guacamolito and GoldenStone Comercializadora.
Rancho Agrícola El Zapotal
As part of the vertical integration strategy, direct investment was made in the field with the acquisition of the Rancho Agrícola El Zapotal, which today contains a plantation of more than 4,000 avocado trees. The objective is to invest in more land areas in Michoacán to increase avocado plantation and production.
With 84 hectares of cultivation divided into three orchards: Comburinda is the largest and is planted with Hass Mendez trees , Loma de Enmedio and Llano del Burro, the latter two are planted with trees of the Hass variety. The three orchards are certified by the United States Department of Agriculture for export, and as of July this year, they will be certified as “Organic Fruit”, which will increase their market value. Also, all are registered in the Export program of the Association of Producers and Packers of Avocado of Mexico (APEAM). It should be noted that the process of bringing a conventional export garden to one with organic products is a minimum two-year process that requires continuous audits and supervision.
“The consumption of avocado in the USA is in the form of guacamole. For the Super Bowl 2018 alone, approximately 300 million dollars were exported for the production of more than 1,000 tons ”Miguel Peinado, General Director GoldenStone and Guacamolito.
Guacamolito Procesadora is a new production plant for the transformation of fruit into frozen pulp. This process makes the product have a life span of up to more than two years. With presentations of 3, 6 and 9 pounds, its final destination is mainly North America, Japan and the European Union, and thus meet the growing demand of the food preparation industry. Despite being at the forefront of processing technology, this company is intensive in the use of labor since, to preserve the characteristics and qualities of the fruit, it is necessary to extract the pulp, through a manual process.
This trading company was created to ensure the continuous supply of fruit directly to customers in the United States and Europe, avoiding costly intermediation steps and giving greater added value to producers, including El Rancho El Zapotal and Guacamolito Procesadora at an international level. However, the scope of this marketer goes beyond supporting these two companies. GoldenStone’s priority is to synergize with the Avocado Producers Association of Uruapan with the aim of organizing and coordinating actions that avoid unnecessary intermediation with producers and end customers, in order to allow them to obtain higher profits and bring their product directly to the points of sale.
“GoldenStone uses a network of international contacts that we have created over the years and from the references of many clients, with the aim of negotiating with international buyers continuous supply programs that ensure that the fruit is marketed from the field to the point of sale. directly, without intermediaries ”Antonio Herrero Castillo, Financial Director GoldenStone and Guacamolito.
Currently, Mexican producers are subject to the conditions initially set by packing houses (the most relevant are foreign companies), which, derived from export rules, limit the profits that producers can obtain.
On the other hand, wholesalers work on the border and speculate on prices and volume availability through intermediaries or marketers, who have contacts with retail product buyers.