Summer in the northern hemisphere and winter in the southern hemisphere brings good dynamics to the food sector.  The Fancy Food Show, one of the most important shows in the industry took place in New York July 10 -12 and Intrix’ president attended, confirming the great development in the sector.

During July our associate from Mexico returned to China with a client who participated in the customized trip service we provide. This Mexican company is already sourcing from a Chinese supplier and finalized another agreement during this second trip.

New York Fancy Food Show has become more global, more international producers were exhibiting at the 2005 show, an indication that tastes in specialty foods are becoming evermore cosmopolitan. More than 22% of exhibiting food producers was international and 40% of these were new exhibitors.

While the Europeans in general, and the Italians in particular, are still the largest regional groups the next largest is from South America. Most countries were represented by larger groups of exhibitors than in previous years.

One of the most active pavilions was from Chile where several of the new producers of olive oils, avocado and nut oils demonstrated how this sector is gathering momentum in Chile. From the region as a whole, the analysis of the main products being exhibited is: first: olive oils and other condiments and sauces; second: cheeses; third: honey and conserves; fourth: snacks, and baked goods; fifth: fish products.

Other examples of increasing diversity, between 2000 and 2004 US retail sales of Asian foods increased 27.3%. The show presents over 50,000 specialty foods from all around the world. For more information visit: www.specialtyfood.com/do/fancyFoodShow/LocationsAndDates

The cheese market and how Chile can get a slice.  Traditionally in the world cheese market the champions are the Europeans producers  (45% of total exports), followed by New Zealand (23%), Australia (16%), and the US (4%), representing altogether 84% of the total market in 2004.

On the importing side the main players are: US (23%), Japan (23%), Russia (20%), Europe (12%) and Mexico (8%), representing 86% of the total imports in 2004. In both cases the world's supply and demand are highly concentrated, therefore, a small player like Chile has to find a smart way to penetrate the market.

After analysis conducted by the Investment Agency from the X Region, the conclusion is to expand exports with a mixed strategy of entering both the commodity and the niche sectors in the US and Mexican market. In Mexico cheese exports from Chile have increased notably during the last years.

The cheese commodities sector, strongly dominated by Australia and New Zealand, is making some changes. Part of the exports from these countries is being redirected to China, which is increasing the consumption of cheese. Therefore, Chile has an opportunity to supply for the uncovered demand. The producers will need to improve the quality standards and increase the production of cheddar and mozzarella, which is currently low.

In the case of the niche market, the idea is to elaborate own varieties and also produce the ones of major consumption in the market such as Roquefort, Gruyere, Provolone or Butterkase.

The projections indicate that the country could increase its exports by 40,000 tons per year within a 5 year period. The Chilean producers have cost production advantages, high capacity to expand milk production, preferred access to main international markets, a favorable environment to do business and good cattle-sanitary conditions.

The Top companies in the Region, a mirror of their countries.  The last ranking of the 500 top companies that Latin Trade published reflects the performance of the countries' economies. Mexicans are heading the list with Pemex, Telmex and American Mobile. Following are the Brazilians with Petrobras, CVRD, Bunge and Electrobras. Chile is represented by Codelco among the top 20; Copec, Enersis, Enap are included in the top 50. Petroleos de Venezuela is in second place, but it has no more on the list.

Not surprisingly the oil sector is the best in revenues, thanks to the spike in crude oil prices. The mining sector had important growth in 2004 explained by the high demand on raw materials from China.  Of the 10 fastest growing companies, 5 are Brazilian. The country is being favored by the foreign trade boost. Latin America's biggest publicly traded companies are seeing a bonanza year: up 27% in sales, and 62% on net income. For the region as a whole, the growth is forecast to continue, but at moderate pace.