Building a stronger, long-term. partnership. The Mexican Altex Project

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1 The Mexican Altex Project Building a stronger, long-term partnership

2 How it all started The initial contact between Altex and Bayer occurred at a WEF meeting and was subsequently intensified before this Food Chain Partnership project got off the ground in April Several activities such as technology transfer, training and technical assistance were developed during the subsequent years. In October 2015, we developed a joint diagnosis to define a new vision & scope for our Food Chain project, given recent market trends and needs (safety issues, traceability, disease pressure for key crops such as citrus), competitive landscape (new entrants such as fresh & IQF local producers, commodity prices) and, most importantly, ALTEX growth initiatives. What we aimed to achieve The objective of this project is to deliver value along the value chain for key crops such as citrus, grapefruit, strawberry and mango, involving growers, processing and packaging plants, retailers & end-consumers. At the core of this joint effort are the consumer needs regarding quality and safe products, but also our vision to further strengthen Mexico s position in the world agricultural markets. The main aims of this project have been to promote sustainable agriculture, to grow safe and better-quality produce, and to train the participating farmers to make good use of agrochemicals, handle them properly and use better agricultural practices.

3 Who is involved Altex: One of the most important agro-industrial groups in Mexico, Altex has focused, since its founding 30 years ago, on ensuring the highest quality of its products and services. This has made Altex a national leader in the production and processing of fruits and vegetables. Farmers (more than 430): Growing oranges, strawberries, mango and broccoli for Altex in more than 16 k hectares across different regions in Mexico. Bayer: Leader in crop protection solutions (seeds, chemical and biological crop protection products) and a broad portfolio of services, ranging from agronomic support, field demonstrations, diagnostics, and prediction tools to certification support. Bayer also provides a unique approach to sustainable agriculture and value generation with its Food Chain Partnership initiative and more than 10 years of experience, partnerships in more than 40 countries and covering 30 different crops.

4 The integrated crop solution During the first stage ( ), a crop protection program was developed with a clear focus on quality, performance and sustainability to meet Altex s requirements. For oranges and strawberries the focus of the program has been on measures to control mildew and gray mold, with Serenade Max and Scala applied as crop protection products. Herbicide training started with an external expert and continued at seven events where approx. 250 farmers and Altex technical staff were given more detailed training in Bayer s crop protection program. In addition, various blogs were created and personal protective equipment, SINTOX sponsorship kits and agrochemical storage kits made available to the farmers. From Left to Right: Alejandro Salazar, Jefe de Inocuidad, Grupo Altex-Frexport; Jorge Sanchez, Jefe de Compras Fresa, Grupo Altex-Frexport; Arturo Marroquin, Dirección Agrícola, Grupo Altex; Isaias Quezada, Jefe de Compras, Grupo Altex-Frexport; Gerardo Dominguez, Jefe de Opeaciones, Grupo Altex

5 What we achieved We have already been working together for two years, through which both parties have reaped interesting benefits; these range from a deeper understanding of their businesses and challenges to improved capabilities of Altex s growers regarding crop management and improved yields (from 35 to 60 tonne per hectare), quality and sustainability metrics such as watersaving for strawberry production, of at least 1,300 Lt per kg. Some of the activities that have been of great value are the training and technology transfer program with orange and broccoli growers that included crop protection portfolio (chemicals and biologicals such as Serenade Max ) and sustainable agriculture best practices (agrochemicals safe handling and usage). Better product quality and safety is fundamental to compete in international markets such as Altex s; this initiative will be a strategic pillar for both parties to achieve their goals in the near short term and, most importantly, to demonstrate that sustainable agriculture is feasible from a business perspective. The key success factors to these results are communication among parties, continuous and open dialogue among technical experts (e.g. Bayer and Altex crop managers) and also continuous screening of best practices around the world, with support from Bayer experts and other Food Chain Partnership specialists. Next steps From 2016, the priorities will focus on 4 key areas: 1. Integrated crop management solutions for citrus, grapefruit, strawberry and mango and papaya (including crop protection portfolio, crop management and other crop services). 2. Product safety and quality, according to more recent specifications and market needs (e.g. shelf-life, coloring, sweetness, residues, etc.). 3. On-the-field information acquisition and processing to improve harvest volume forecasting, processing capacity utilization and decision-making. 4. Update the commercial model to respond to partner needs and Altex / Bayer growth targets. left: Maria Fernanda Guirado Urrea Food Chain Partnership Manager Bayer Cropscience right: Arturo Marroquín Dirección Agricola Grupo Altex

6 Consumers are becoming increasingly conscious of the need for healthy nutrition. Food Chain Partnerships help to supply consumers with high-quality fresh produce, which forms the basis of a healthy diet. But such partnerships can only succeed if they involve every player in the food chain from the farmer and processor to the exporter or importer and retailer. Bayer CropScience has the global experience and cutting-edge expertise to create a successful partnership at every level. For more information contact: Bayer CropScience Miguel Ángel Saavedra Mexico Phone: Paseo de las Palmas No. 820 Piso 1 Col. Lomas de Chapultepec México, D.F. Mexico Teléfono: Bayer CropScience AG Food Chain Management Alfred-Nobel-Str Monheim Germany Phone: Fax: foodchainpartnership@bayer.com Internet: by Bayer CropScience FCP