Arturo Marroquín Ríos Clearwater Beach, Florida

September 17th, 2014

Facts about

MEXICO:

Population: 119,426,000 P

Surface: 1,964,380 Km2

Agricultural land: 53%

Lifespan Average: 74 years

“Country of youth” (54% of total popultation

under 30 years old)

…and in

terms of

economy?

Countries in: North America, Latin America

Europe, Asia-Pacific.

45

Source: Mexico Secretary of Economy

9.46 9.34 9.67 10.79

11.29 10.89 10.90 10.93 11.14

13.50 12.63 12.43

13.17 12.77 8.96

4.40

5.70

3.98

5.19

3.33

4.05 3.76

6.53

3.57

4.40 3.82 3.57

3.97

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Infla

tio

n

Ex

ch

an

ge

ra

te

Peso - Dollar USA Inflation

GDPcomposition by sector

(%) Agricultural Industrial Services

India 17.4 25.8 56.8

China 10 43.9 46.1

Argentina 9.3 29.7 61

Brasil 5.5 26.4 68.1

Russia 4.2 37.5 58.3

Mexico 3.6 36.6 59.8

Spain 3.1 26.1 70.8

Italy 2 24.5 73.5

France 1.9 18.7 79.4

Canada 1.7 28.4 69.9

Japon 1.1 25.6 73.3

USA 1.1 20.5 78.4

Germany 0.8 30.1 69.1

Source: BANXICO (Mexican Central Bank)

Source: OECD

Meat and

Poultry,

35%

Animal

Feed,

31%

Fruits,

Vegetables

and

Processing

food,

27%

Fish and

Seafood,

4%

Tobacco,

3%

Source: INEGI and SIAP

People working in

the Agricultural sector (6.9M)

Source: INEGI and SIAP

# Crop Prod. (MT)

1 Sugar Cane 61,182,077

2 Corn 22,663,953

3 Sorghum 6,308,146

4 Orange 4,409,968

5 Wheat 3,357,307

6 Red tomato 2,694,358

7 Green Chili 2,294,400

8 Banana 2,127,772

9 Lemon/Lime 2,120,613

10 Agave 1,899,735

- - - 28 Grapefruit 425,433

- -

# Crop Value (M$USD)

1 Corn 5,974

2 Sugar Cane 2,466

3 Sorghum 1,442

4 Avocado 1,414

5 Red Tomato 1,178

6 Greed Chili 1,145

7 Beans 1,005

8 Wheat 934

9 Potato 890

10 Lemon/Lime 510

- - 13 Orange 432

47 Grapefruit 51

Source: INEGI and SIAP

Infrastructure

Growth

Education

Security

World Citrus Production

Source: FAO

-

5

10

15

20

25

30M

MT

Orange Grapefruit

Tangerine Lemmon and Limes

Source: SAGARPA -SIAP

Veracruz

Michoacán

San Luis Potosí

Tamaulipas

Nuevo León

Puebla

Oaxaca

Colima

Sonora

Yucatán

Tabasco

Orange

64%

Lemon

and Limes

30%

Grapefruit

3%

Tangerine

3%

Citrus

producing

regions

Estado kHas %

Veracruz 216 43% Michoacán 43 9%

San Luis Potosí 40 8% Tamaulipas 36 7% Nuevo León 27 5%

Puebla 24 5% Oaxaca 20 4% Colima 19 4%

Yucatán 17 3%

Tabasco 15 3% Others 42 8%

Total 499.9 100% Source: SAGARPA - SIAP

Source: SAGARPA -SIAP

Veracruz

San Luis Potosí

Tamaulipas

Nuevo León

Puebla

86% is concentrated in 5 states.

…where the most important

OJ processors are located.

Total Production:

3.6 M MT

Total Surface area:

321 k ha.

Estado Thousands

of Has %

Veracruz 159 49%

Tamaulipas 30 17%

San Luis Potosí 38 9%

Nuevo León 25 7%

Puebla 20 5%

Others 48 15%

Total 321 100%

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2009 2010 2011 2012 2013 2014 2015e

Veracruz Other States

Mexico’s orange production

in Veracruz state over

the last year

Source: ANAPROCI

MM

T o

f fr

uit

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2009 2010 2011 2012 2013 2014 2015e

Veracruz Other States-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2009 2010 2011 2012 2013 2014 2015e

Veracruz Other States

2009 – 2014/15

production 2009 - 2014

Source: USDA - ANAPROCI

60% to fresh

market

40% to

industry

70

80

90

100

110

120

130

140

2009 2010 2011 2012 2013 2014 e

FC

OJ k

MT

-

2

4

6

8

10

12

14

16

18

20

2009 2014

Fru

it

kM

T

+42%

Mexico’s OJ Installed Capacity

Stability

of orange

production (2.5 million MT)

but…

of

Installed

capacity

over the fruit

U.S. OJ Imports Mex Imports

Share 2005

17%

Mex Imports

Share 2013

31%

2005 –

Ju

n2014

1.3% 9.1%

-

100,000

200,000

300,000

400,000

500,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jul

México

Others

Belize

Costa Rica

Brazil

Source: U.S. Department of Commerce

Source: Altex

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Orange

Limes

Lemon

Grapefruit

Tangerine

Image at: gardeningblog.net

China

15% India

15%

Argentina

9%

Brazil

8%

USA

5%

Turkey

5%

Spain

4%

Iran

4%

Italy

2%

Egypt

2% Others

17%

Lemon & Lime

Source: FAO

production

Export

18%

Domestic

58%

Industry

24%

Persian

Lime

42%

Key

Lime

54%

Italian

4%

State k Ha. %

Michoacán 39 26%

Veracruz 39 26%

Colima 19 12%

Oaxaca 15 10%

Tabasco 7 5%

Guerrero 7 5%

Yucatán 5 3%

Tamaulipas 4 2%

Others 15 10%

Total 150 100%

Total Production:

2.12 M MT

Total Surface area:

150 k ha.

Concentrated in:

8 states

Processing (after Argentina)

Source: USDA - SIAP

Guerrero

Colima

Oaxaca

Michoacán

2% Export

78% Domestic

20% Industry

54% of mexican Lemon and

Lime production

lime

Source: USDA - SIAP

Veracruz

Jalisco

Oaxaca

Yucatán

Tabasco

Puebla

40% Export

30% Domestic

30% Industry

42% of mexican Lemon and

Lime production

lime

Source: USDA - SIAP

Source: Mexico Secretary of Economy

0.57 0.70

0.31

0.50

1.14

-

0.20

0.40

0.60

0.80

1.00

1.20

2010 2011 2012 2013 2014U

SD

/ k

g

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00U

SD

/ k

g

lime price in mexican domestic market

2014

2014

price was

affected by

HLB in

Colima, lost of

Veracruz first bloom

…reaching

record

prices

during March

and April.

Remember?...

(my precious) (new payment method)) (Tequila - simple: $50.00 double:$75.00 with lemon: $500.00)

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2007 2008 2009 2010 2011 2012

TM Evolución de Producción de Limón en México por Estado 2007 - 2012

COLIMA MICHOACAN VERACRUZ OAXACA

Even though Colima’s production of limes decreased by 30% during the last 6 years, other states like Veracruz, Michoacán &

Oaxaca made up the difference.

Mexican Lime production

Source: SIAP -SAGARPA

San Luis Potosí

Colima

Tamaulipas

Yucatán

Italian

38% Export

2% Domestic

60% Industry

4% of mexican Lemon and

Lime production

lemon

Source: USDA - SIAP

… unfortunately we also have

,

this is the current status:

Source: SAGARPA / SENASICA (2014)

2009 2010 2011 2012 2013 2014

HLB Psyllid

Chronology of Detections

Source: SAGARPA / SENASICA

Veracruz

Tamaulipas

Nuevo León

San Luis Potosí

4 major orange production

states are officially free of

HLB…

… there are only positive psyllids…

Sour orange rootstock

Temperatures up to 100 °F

Low

density plantation

Orange groves

mixed with other

citrus crops.

(more natural enemies)

Mayas

NOTE: We’re open to any suggestions.

Small farmers MT/ha.

Competencies

Integration

Productivity

Profitability

Quality of life

Food Safety

(Between 5 - 10 ha)

INCREASE YIELD.

Very low

compared to

Brasil & Florida

HLB

Mature

Trees

69%

Actual Plantation

Rate must increase ( )

What is

doing?

2. Financing

3. Value chain integration

“Altex’s

Entrepreneur Farmers model”

1.- Human, technical and

entrepreneurial training

strawberry

S u c c e s s f u l i m p l e m e n t a t i o n i n

A l t e x ’ s c r o p s :

Clearwater Beach, Florida September 17th, 2014

NOTE: The images and photographs you see in this presentation (taken from searches on Printerest®, Google Chrome® and others, are not meant for commercial purposes.