Corporación para el Desarrollo Agropecuario de Nuevo León
Transcripción
Corporación para el Desarrollo Agropecuario de Nuevo León
CONTENTS Page Message from the “Corporación para el Desarrollo Agropecuario de Nuevo León” President ..…….…..……. “CORPORACIÓN PARA EL DESARROLLO AGROPECUARIO DE NUEVO LEÓN” General Information of Nuevo Leon State….....….……. José Natividad González Parás Governor-State of Nuevo Leon Guillermo Zambrano Lozano “Corporación para el Desarrollo Agropecuario de Nuevo León” Honorary President Farming..….….….….…..…………...…..…..…..….…………… 2 5 Citrus………………………...……………………. Fruits…...….……….……...……………….……. Vegetables………………………………….…….. 6 7 8 Livestock……………………………….....…………………...…. 9 Bovines.………………………..………..……….. Goats……………………….....………………….. Sheep..……….……………..…..………..………. Porks………...……………....………..…….…… 10 11 11 12 Poultry...…………………....…………..…..…… 13 Dairy………………………………………..…….. Apiculture….…..……………………...………... 15 16 Forestry….…………………………………………………..…….. 16 Agroindustry……………………………………………....…….. 17 Foreign Trade……...……………………….…...……….…..…. 19 Investment Options………………………....……….............. 20 Business Incentives.…….…………………………....……….... 23 Guide for Business Opening…….……….……………..……. 25 Fermín Montes Cavazos “Corporación para el Desarrollo Agropecuario de Nuevo León” General Director Vicente Galván González Livestock Director Alonso Ibarra Taméz Farming Director Ismael García Garza Rural Development Director Jesús Martínez de la Cerda Growers Organization and Training Director Gustavo Frías Treviño Animal and Plant Health Director Guillermo Rodríguez y Rodríguez Forestry and Aquaculture Coordinator José Nazario Pineda Osorio Legal Affairs Manager Salvador Castillo Lucio State Information Office for Sustainable Rural Development Manager “Corporación para el Desarrollo Agropecuario de Nuevo León” Ave. Eugenio Garza Sada #4601 Sur Col. Condesa, Monterrey, N. L. Zip Code. 64880, Tel. (5281) 2020-6900 Visit our web site: http://www.nl.gob.mx/? P=des_agropecuario http://www.oeidrus-nl.gob.mx/ “ 1 C orporación para el Desarrollo Agropecuario de Nuevo León” Is a decentralized public agency with private participation whose main functions are to design, participate in promote, coordinate, execute and evaluate programs related to the agricultural sector and sustainable rural development of the State. The challenges of “Corporación para el Desarrollo Agropecuario de Nuevo León” are to support primary producers with effective actions to consolidate the State's agriculture and improve welfare conditions in the rural area. M essage from the “Corporación para el Desarrollo Agropecuario de Nuevo León” President Dear Friends: The State Government, through the “Corporación para el Desarrollo Agropecuario de Nuevo León”, operates a great diversity of support programs to develop food, agricultural and rural activities. Support Programs are focused to actions that improve the competitiveness of agri-food production through the integral and sustainable utilization of natural resources and modernization of productive units. These actions are mainly encouraged by the great enterprising spirit of people in our State, that translates to the integration of the productive chains that generates added value to primary production of our food and agriculture sector. The aforementioned, has a direct economic benefit for the producers and community that makes up our state and country, for they receive fresher food products, with better quality standards. Thank you for giving us the opportunity to be your host. Guillermo Zambrano Lozano P. D. Remember to visit our web site: http://www.nl.gob.mx/?P=des_agropecuario http://www.oeidrus-nl.gob.mx/ Nuevo Leon… State of Progress 1 G eneral Information of Nuevo Leon State STATE PROFILE Total Population 4.2 million inhabitants Economically Active Population 1.9 million inhabitants Territorial Extension 16 million acres Counties (Municipalities) 51 Capital Monterrey The State is divided into three economic geographical areas: NORTHERN REGION: Grassland, scrubland, grain production (sorghum and wheat) and pecans. Strategic Geographical Location ♦The capital, Monterrey, is CENTRAL REGION: Vegetables, citrus; poultry, bovines, hogs, sheep and honey. 124 miles from Texas border. ♦Direct access to international border SOUTHERN REGION: Fruits, grains, vegetables (potato, garlic and tomato); goats, poultry and forestry. crossing points: Colombia and Nuevo Laredo. Modern Infrastructure ♦ Efficient Train and Road Communication: Train System is operated by private companies with connections to main ports and cities in the United States of America. ♦ Airports: “Mariano Escobedo” International Airport and “Del Norte” Airport. ♦ Telecommunication services: Extensive network, fiber optics T1 and DSL. ♦ Supplies and Industrial Infrastructure: Abundant supply of natural gas to Monterrey. Installed electric capacity surpasses the demand by 2,350 MW. Worldwide Quality Education MEXICO HAS FREE TRADE AGREEMENTS WITH: United States and Canada Colombia and Venezuela Costa Rica Bolivia Nicaragua Chile European Union Israel El Salvador, Guatemala and Honduras Iceland, Norway, Switzerland and Liechtenstein ♦ More than 30 universities with 124 Uruguay thousand students in undergraduate and Japan graduate level. 2 “Corporación para el Desarrollo Agropecuario de Nuevo León” G eneral Information of Nuevo Leon State GROSS DOMESTIC PRODUCT (GDP), 2004 (CURRENT USD) FOOD AND AGRICULTURE MINING 5.9% 0.5% TRADE AND TRANSPORTATION 32.7% OTHER MANUFACTURING 17.9% CONSTRUCTION 3.9% ELECTRICITY, GAS AND WATER 1.1% FINANCIAL AND PROFESSIONAL SERVICES 38% GDP: 45,851 MILLION USD Source: “Sistema de Cuentas Nacionales”, INEGI 2004. Note: Food & Agriculture GDP includes the agricultural, forestry and fishing great division and the food, drinks and tobacco division. POPULATION NUEVO LEON 1970 1980 1990 TOTAL 1,694,689 2,513,044 3,098,736 RURAL* 397,846 315,756 248,079 252,770 236,835 23.5 12.6 8.0 6.6 5.6 % RURAL POPULATION 2000 2005 3,834,141 4,199,292 * Settlements of less than 2,500 people. Source: “Censo General de Población y Vivienda” , INEGI 1970-2000. “II Conteo de Población y Vivienda”, INEGI 2005. EMPLOYED POPULATION NUEVO LEON STATE TOTAL PRIMARY SECTOR % OF STATE TOTAL 2002 2003 2004 2005 1,646,991 1,683,001 1,797,378 1,832,395 47,136 47,342 55,830 49,225 2.9 2.8 3.1 2.7 Source: “Encuesta Nacional de Empleo” (IV Quarterly 2002—2004) and “Encuesta Nacional de Ocupación y Empleo” (IV Quarterly 2005), INEGI. Nuevo Leon… State of Progress 3 G eneral Information of Nuevo Leon State LAND USE SURFACE LAND USE Farming Irrigated Nonirrigated Livestock Irrigated grassland Nonirrigated grassland Scrubland Forest 2/ Other uses Total Grassland Water bodies % (ACRES) 1/ 969,668 6.1 322,449 2.0 647,219 4.1 13,679,454 85.8 45,640 0.3 1,302,644 8.2 12,331,170 77.3 930,376 5.8 372,218 2.3 15,951,716 100 1/ Open areas for cultivation. 2/ Forest area of conifer and broadleaves. Source: SAGARPA Human Settlements Forest Nonirrigated agriculture Irrigated agriculture Scrubland FARMING, LIVESTOCK AND FORESTRY PRODUCTION VALUE, 2005 FARMING, LIVESTOCK AND FORESTRY PRODUCTION VALUE, 2005 ( PERCENTAGE DISTRIBUTION) LIVESTOCK 61.1% FORESTRY 0.6% (MILLION USD) FARMING 38.3% Farming1/ 269 Livestock1/ 428 Forestry2/ 4 Total 701 1/ Source: SIACON 2005, SIAPSAGARPA. 2/ Source: SEMARNAT 4 “Corporación para el Desarrollo Agropecuario de Nuevo León” F arming PLANTED ACREAGE IN NUEVO LEON, 2005 (PERCENTAGE DISTRIBUTION) POTATOES 0.9% CITRUS 8.1% PECANS 1.1% OTHER 2.2% OTHER VEGETABLES 0.8% TOTAL: 937,075 ACRES FORAGES 51.0% GRAINS 35.9% Source: SIACON 2005, SIAP- SAGARPA. FARMING PRODUCTION VALUE IN NUEVO LEON, 2005 ( PERCENTAGE DISTRIBUTION) TOTAL: 268,922 THOUSAND USD OTHER 3.2% Potatoes rank 1st place in farming production value in the State. OTHER VEGETABLES 10.5% CITRUS 9.9% FORAGES 30.8% POTATOES 32.9% GRAINS 10.5% Forages rank 2nd while grains and other vegetables share the 3rd place in farming production value in the State. PECANS 2.2% Source: SIACON 2005, SIAP- SAGARPA. Nuevo Leon… State of Progress 5 C itrus CITRUS ACREAGE IN NUEVO LEON, 2005 (PERCENTAGE DISTRIBUTION) TOTAL: 75,816 ACRES TANGERINES 11.3% GRAPEFRUITS 5.1% ORANGES 83.6% Nuevo Leon is one of the main citrus producers in Mexico. Ranks 2nd place nationwide in tangerine production and 4th place in orange and grapefruit. Our State has a low fruit fly prevalence category, which contributes to its high quality. Source: SIACON 2005, SIAP- SAGARPA. CITRUS PRODUCTION IN NUEVO LEON, 2005 PRODUCTION (THOUSAND POUNDS) 772,529 PRODUCTION VALUE (THOUSAND USD) 26,650 Source: SIACON 2005, SIAP- SAGARPA. CITRUS ACREAGE BY COUNTY, 2005 (PERCENTAGE DISTRIBUTION) OTHER 0.6% MONTEMORELOS 31.7% ALLENDE 7.5% CITRUS ZONE TOTAL: 75,816 ACRES CADEREYTA JIMENEZ 19.0% LINARES 7.9% HUALAHUISES 5.4% 6 GENERAL TERAN 27.9% Source: SIACON 2005, SIAP- SAGARPA. “Corporación para el Desarrollo Agropecuario de Nuevo León” F ruits FRUIT ACREAGE IN NUEVO LEON, 2005 PERCENTAGE DISTRIBUTION (NOT INCLUIDING CITRUS) TOTAL: 20,692 ACRES FRUIT PRODUCTION IN NUEVO LEON (2005) APRICOTS 0.2% PEARS 0.6% AVOCADOES 9.0% PLUMS 1.4% PEACHES 14.3% PECANS 50.9% PRODUCTION (THOUSAND POUNDS) 39,088 PRODUCTION VALUE (THOUSAND USD) 12,604 APPLES 23.6% Source: SIACON 2005, SIAP- SAGARPA. FRUIT ACREAGE IN NUEVO LEON BY REGION, 2005 PERCENTAGE DISTRIBUTION (NOT INCLUDING CITRUS) Nuevo Leon ranks 5th place nationwide in pecan production volume, with a production of 7,695 thousand pounds. TOTAL: 20,692 ACRES SOUTH 37.4% For apple production volume, Nuevo Leon ranks 7th place nationwide, with a production of 16,690 thousand pounds. Rayones and Bustamante counties concentrate 47.3% of pecan acreage. NORTH 15.8% CENTER 46.8% Source: SIACON 2005, SIAP- SAGARPA. Nuevo Leon… State of Progress 7 V egetables VEGETABLE PLANTED ACREAGE IN NUEVO LEON, 2005 (PERCENTAGE DISTRIBUTION) TOTAL: 15,691 ACRES ASPARAGUS 2.7% OTHER 7.2% HUSK TOMATOES SQUASHES 1.9% PEPPERS 13.3% CABBAGES 1.9% 5.2% TOMATOES 11.2% Nuevo Leon is the 5th producer of potatoes nationwide, representing 6.2% of total production volume in Mexico. Within the State, production value of this crop represents 33% of farming production. POTATOES 52.1% WATERMELONS 4.5% Source: SIACON 2005, SIAP- SAGARPA. VEGETABLE PLANTED ACREAGE IN NUEVO LEON BY REGION, 2005 (PERCENTAGE DISTRIBUTION) VEGETABLE PRODUCTION IN NUEVO LEON, 2005 PRODUCTION (THOUSAND POUNDS) PRODUCTION VALUE (THOUSAND USD) TOTAL: 15,691 ACRES NORTH 0.4% 369,546 116,800 CENTER 38.8% Source: SIACON 2005, SIAP- SAGARPA. 87% of the vegetable planted area is located in the Galeana and CadereytaJimenez counties. SOUTH 60.8% Source: SIACON 2005, SIAP- SAGARPA. 8 “Corporación para el Desarrollo Agropecuario de Nuevo León” L ivestock LIVESTOCK PRODUCTION VOLUME IN NUEVO LEON, 2005 478 MEAT (MILLION POUNDS) EGGS 180 (MILLION POUNDS) MILK 11 (MILLION GALLONS) OTHER PRODUCTS* (MILLION POUNDS) 0.9 Source: “Corporación para el Desarrollo Agropecuario de Nuevo León”, with information from SAGARPA and slaughterhouses TIF and Counties. *Honey, beewax and wool. LIVESTOCK PRODUCTION VALUE IN NUEVO LEON, 2005 (PERCENTAGE DISTRIBUTION) The 2005 Livestock production value in Nuevo Leon accounted for 428 million USD. Poultry ranks 1st place in the State livestock production value. BOVINE 24.8% EGGS 15.5% PORK 9.6% Bovine meat and egg rank 2nd and 3rd place, respectively, in the livestock production value of the State. MILK 3.4% POULTRY 44.9% GOATS 1.3% SHEEP OTHER 0.3% PRODUCTS* 0.2% Source: SIACON 2005, SIAP-SAGARPA. *Honey, beewax and wool. Nuevo Leon… State of Progress 9 B ovines MEAT PRODUCTION, 2005 Nuevo Leon has a high annual beef consumption per capita. INSTALLED CAPACITY PER CYCLE 198,900 ANNUAL FEEDING 354,010 LIVE CATTLE PRODUCTION 374,614 BEEF PRODUCTION 191,208 (HEADS) (HEADS) (THOUSAND POUNDS) (THOUSAND POUNDS) National: 46 pounds Nuevo Leon: 82 pounds Source: “Corporación para el Desarrollo Agropecuario de Nuevo León”, with information of slaughterhouses TIF* and Counties. SACRIFICE OF CATTLE IN SLAUGHTERHOUSES IN NUEVO LEON, 2005 CONCEPT Nuevo Leon has 97 quarantined feedlots with an installed capacity per cycle of 198,900 heads, with strict sanitary control. NUEVO LEON Leader in Meat Certification A classification system to certify beef quality has been developed and applied through the “CALIDAD NUEVO LEÓN” brand. The producers are organized to market their products with this distinguished brand. *By its abbreviations in Spanish. 10 FEDERALLY COUNTY INSPECTED SLAUGHTERSLAUGHTERHOUSES HOUSES (TIF)* SLAUGHTERHOUSES 6 18 NUMBER OF SLAUGHTERED HEADS 372,607 62,931 Source: INEGI and “Servicio de Clasificación de Carnes de Nuevo León”. 86% of slaughtering in Nuevo Leon takes place in Federally Inspected Slaughterhouses (TIF)* which guarantees a safe healthy product. NUEVO LEON Breeding cattle with high genetic quality The national headquarters of 7 cattle breeder associations are located in Nuevo Leon. • Simmental-Simbrah • Charolais • Beefmaster • Santa Gertrudris • Italian Breeds • Texas Long-Horn • Red Brangus “Corporación para el Desarrollo Agropecuario de Nuevo León” G oats MEAT PRODUCTION GOAT MEAT PRODUCTION, NUEVO LEON 2005 PRODUCTION VOLUME (THOUSAND POUNDS) PRODUCTION VALUE (THOUSAND USD) 3,115 5,655 Nuevo Leon is one of the Mexican states with the highest kid goat consumption per capita, hence most of the State production is for local markets. PRODUCTION VALUE OF GOAT MEAT BY REGION, 2005 (PERCENTAGE DISTRIBUTION) Source: SIACON and “Anuario Pecuario 2005”, SIAP-SAGARPA. CENTER 56.3% NORTH 7.0% SOUTH 36.7% Source: SIACON 2005, SIAP- SAGARPA. S heep PRODUCTION VALUE OF SHEEP MEAT BY REGION, 2005 MEAT PRODUCTION (PERCENTAGE DISTRIBUTION) SHEEP MEAT PRODUCTION, NUEVO LEON, 2005 PRODUCTION VOLUME (THOUSAND POUNDS) PRODUCTION VALUE (THOUSAND USD) 884 1,216 SOUTH 20.8% NORTH 20.7% CENTER 58.5% Source: SIACON and “Anuario Pecuario 2005”, SIAP-SAGARPA. Source: “Anuario Pecuario 2005”, SIAP-SAGARPA. Nuevo Leon… State of Progress 11 P orks MEAT PRODUCTION PORK MEAT PRODUCTION, NUEVO LEON 2005 PRODUCTION VOLUME (THOUSAND POUNDS) PRODUCTION VALUE (THOUSAND USD) 36,155 40,988 Nuevo Leon has 315 thousand hogs, distributed in 145 hog farms, owned by 130 producers. Source: SIACON and “Anuario Pecuario 2005”, SIAP-SAGARPA. PORK MEAT PRODUCTION VALUE BY REGION, 2005 (PERCENTAGE DISTRIBUTION) CENTER 85.3% NORTH 3.2% SOUTH 11.5% Source: SIACON and “Anuario Pecuario 2005”, SIAP-SAGARPA. HOG POPULATION IN NUEVO LEON, 2006 (PERCENTAGE DISTRIBUTION) TOTAL: 315 THOUSAND HOGS FEEDING 63.5% SUCKLING PIGS 24.0% REPLACEMENT 0.9% BREEDING SOWS 11.1% BOARS 0.5% Source: “Corporación para el Desarrollo Agropecuario de Nuevo León”, with information of State organizations of animal health. 12 “Corporación para el Desarrollo Agropecuario de Nuevo León” P oultry BROILER PRODUCTION In Nuevo Leon 77 million poultries are slaughtered annually. BROILER PRODUCTION, NUEVO LEON 2005 PRODUCTION VOLUME (THOUSAND POUNDS) PRODUCTION VALUE (THOUSAND USD) 246,429 192,342 Source: SIACON and “Anuario Pecuario 2005”, SIAP-SAGARPA. BROILER PRODUCTION VALUE BY REGION, 2005 (PERCENTAGE DISTRIBUTION) Nuevo Leon has 109 broiler feeding farms and 17 reproductive plants. NORTH 1.95% SOUTH 0.03% CENTER 98.02% Source: “Anurario Pecuario 2005”, SIAP-SAGARPA BROILER CONSUMPTION PER CAPITA IN MEXICO 53.4 POUNDS 53 50.0 46.3 44 51.6 BROILER CONSUMPTION PER CAPITA IN NUEVO LEON 47.6 43.9 2000 2001 2002 2003 Nuevo Leon ranks 11th place nationwide in broiler production. It has a privileged sanitary situation, free of Avian Influenza, Salmonelosis and Newcastle disease. 2004 YEAR POUNDS 2000 49 2005 53 2005 YEAR Source: “Unión Nacional de Avicultores”. Nuevo Leon… State of Progress 13 P oultry EGG PRODUCTION Nuevo Leon ranks 4th place in egg production nationwide. EGG PRODUCTION IN NUEVO LEON, 2005 PRODUCTION VOLUME (THOUSAND POUNDS) PRODUCTION VALUE (THOUSAND USD) 180,388 66,294 Source: SIACON and “Anuario Pecuario 2005”, SIAP-SAGARPA. EGG PRODUCTION VALUE BY REGION, 2005 (PERCENTAGE DISTRIBUTION) SOUTH 0.6% Nuevo Leon has 104 commercial laying farms. They are located mainly in the counties of: Allende, Montemorelos, Mina, Cadereyta Jimenez, Cienega de Flores, Sabinas Hidalgo, Marin and Salinas Victoria. NORTH 5.9% CENTER 93.5% EGG CONSUMPTION PER CAPITA IN MEXICO Source: “Anuraio Pecuario 2005”, SIAP-SAGARPA. POUNDS 53 49 44 47.4 43.9 2000 45.0 2001 45.0 2002 48.5 45.0 2003 2004 EGG CONSUMPTION PER CAPITA IN NUEVO LEON YEAR POUNDS 2000 44 2005 49 2005 YEAR Source: “Unión Nacional de Avicultores”. 14 “Corporación para el Desarrollo Agropecuario de Nuevo León” D airy COW MILK PRODUCTION COW MILK PRODUCTION IN NUEVO LEON, 2005 PRODUCTION VOLUME (THOUSAND GALLONS) PRODUCTION VALUE (THOUSAND USD) 10,113 12,813 Source: SIACON 2005, SIAP-SAGARPA. Nuevo Leon dairy cow population is approximately 10 thousand, mainly distributed among the counties of: General Zuazua, Cienega de Flores, Salinas Victoria, Sabinas Hidalgo, Cerralvo, Agualeguas and Doctor Gonzalez. Source: “Comité de Fomento y Protección Pecuaria”, UGRNL. GOAT MILK PRODUCTION GOAT MILK PRODUCTION IN NUEVO LEON, 2005 PRODUCTION PRODUCTION VALUE VOLUME (THOUSAND USD) (THOUSAND GALLONS) 1,217 1,622 Source: SIACON 2005, SIAP-SAGARPA. Nuevo Leon ranks 7th place nationwide in goat milk production. Nuevo Leon… State of Progress 15 A piculture APICULTURE PRODUCTION, 2005 PRODUCT PRODUCTION VOLUME (THOUSAND POUNDS) PRODUCTION VALUE (THOUSAND USD) HONEY 831 897 BEEWAX 31 59 TOTAL 862 956 Apiculture plays an important role in the State due, to honey production and pollination of citrus and other crops. Source: SIACON 2005, SIAP- SAGARPA. Honey produced in Nuevo Leon is highly preferred in the national markets, due to the following properties: APICULTURE PRODUCTION VALUE, 2005 (PERCENTAGE DISTRIBUTION) TOTAL: 956 THOUSAND USD - Low moisture content. Slow crystallization. Good texture. Attractive, pale amber color. Considered an energizing product. - Therapeutic attributes. WAX 6.1% HONEY 93.9% Source: SIACON 2005, SIAP- SAGARPA. F orestry FORESTRY PRODUCTION VALUE IN NUEVO LEON, 2005 STATE ACREAGE FOREST ACREAGE PERCENTAGE 15,951,716 ACRES 930,376 ACRES 6% The State forestry activity emphasizes pine production for timber and lechugilla, a nontimber forest product, which is used for fiber. ( PERCENTAGE DISTRIBUTION) TOTAL: 4,254 THOUSAND USD NON TIMBER FOREST PRODUCT TIMBER-YIELDING 33% 67% Source: SEMARNAT 2005. 16 “Corporación para el Desarrollo Agropecuario de Nuevo León” A groindustry NATIONAL AGROINDUSTRY GDP 32,566 Current Million USD STATE Distrito Federal Jalisco Mexico Veracruz Nuevo Leon PERCENTAGE PARTICIPATION PLACE 14.2% 13.5% 12.6% 6.8% 6.4% 1 2 3 4 5 During 2004, Nuevo Leon contributed with 6.4% of the National Agroindustry GDP, ranking 5th place nationwide. Source: “Sistema de Cuentas Nacionales”, INEGI 2004. AGROINDUSTRY PARTICIPATION OF NUEVO LEON IN THE STATE GDP* Agricultural GDP: Agroindustry GDP: Food and Agricultural GDP: The entity has 3,090 agroindustries, are of which 79% are food industries, related 16% wood industries and 5% are other agroindustries. 1.3% 4.6% 5.9% In 2004, agroindustry investment in Nuevo Leon accounted for 180 million USD, 10.6% of the national total. Out of these 114 million USD corresponded to food industry, 10% of the investment made in this area in Mexico; and 54 million USD for the beverage and tobacco industry, which represented 11.3% of the national investment made in this sector. AGROINDUSTRY IN NUEVO LEON 1/ AGROINDUSTRY ECONOMIC EMPLOYED UNITS PERSONNEL Food industry Beverages and tobacco industry Wood industry Fishing and aquaculture Tanned and finished leather and hides Production of machinery and equipment Production of textile supplies Irrigation system construction TOTAL 2,440 88 504 8 10 26 8 6 3,090 39,055 10,203 2,958 33 1,160 2,631 646 73 56,759 GROSS CENSAL ADDED VALUE (MILLION USD)* 648 538 29 0.1 4 65 10 0.2 1,294.3 Source: “Censo Económico 2004”, INEGI. 1/ Data correspond to the activities made from january 1st to december 31st, 2003. Includes data of businesses that began in 2004, referred to labor period in 2004. Data obtained from the census march 1st to june 30th, 2004. *Current USD. Nuevo Leon… State of Progress 17 A groindustry ECONOMIC UNITS OF FOOD INDUSTRY IN NUEVO LEON BY BRANCH, 2004 (PERCENTAGE DISTRIBUTION) FOOD INDUSTRY: 2,440 ECONOMIC UNITS 80% of the economic units dedicated to the food industry, are concentrated in the Metropolitan Area of Monterrey. Bakery and tortillas products Milk Products Beef and poultry packing and process 75% Processed food Sugar, chocolates, candies and similar 4% 5% 10% 1% 3% 1% 1% Balanced feed Oilseed crushing Other food industries Source: “Censo Económico 2004”, INEGI. ECONOMIC EMPLOYED UNITS PERSONNEL FOOD INDUSTRY Beef and poultry packing and process Milk products Bakery and tortillas products Oilseed crushing Sugar, chocolates, candies and similar Balanced feed Processed food Other food industries TOTAL Source: “Censo Económico 2004”, INEGI. 96 251 1,798 34 79 27 35 120 2,440 6,764 3,013 16,943 2,190 2,280 928 2,940 3,997 39,055 GROSS CENSAL ADDED VALUE TOTAL INVESTMENT 221 155 147 62 46 32 16 -31 648 25 9 36 4 25 4 1 10 114 (MILLION USD) * (MILLION USD) * * Current USD MAIN AGROINDUSTRIES IN NUEVO LEON FOOD PROCESSING FRUITS AND VEGETABLES PROCESSING • ICMOSA • ORVAL KENT • DIMECI • AGRÍCOLA ZARAGOZA • AGROJABA • EMP. MÉXICO “GALLITO” TRADITIONAL CANDIES • PRODUCTOS DE LECHE “SAN PABLO” • ROGE • LA PALMA • PRODUCTOS “ALA” • LA IMPERIAL 18 • • • • • • • • • GRUMA (MASECA) SIGMA ALIMENTOS FEMSA PROEZA RAGASA PROSAZON PONDEROSA EURODELLI GAMESA MEAT, BROILER AND EGG PROCESSING FOREIGN AGROINDUSTRIES • IGAMEX • SAN BARR • EMPACADORA LAS CAÑAS • EMPACADORA TREVIÑO • GRUPO YESAKI • DESARROLLOS AGRA • ALIMENTOS LIBRA • AYVI • GRIFFITH LABORATORIES • CATERPILLAR • JOHN DEERE • KRAFT • NEW HOLLAND MILK PRODUCTS • LALA • SELLO ROJO • CAPRICO “Corporación para el Desarrollo Agropecuario de Nuevo León” F oreign Trade NUEVO LEON'S FOOD AND AGRICULTURAL TRADE BALANCE FOOD AND AGRICULTURAL EXPORTS 1/ (MILLION USD) In 2005 the food and agricultural exports represented 4.4% of the State total exports, imports accounted for 8.3% of the total in the same period. Variation 2004-2005 37.6% 615 500 447 2004 2005 2006* 1/ Includes trade made with other countries and other states of Mexico. Preliminary data. Source: “Secretaría de Desarrollo Económico” with information from SAT (SHCP). * October 2006. FOOD AND AGRICULTURAL EXPORT STRUCTURE OF NUEVO LEON, 2005 2/ Beverages, spirits and vinegar Vegetable and fruit-based preparations (PERCENTAGE DISTRIBUTION) Preparation based on cereals, flour, starch, milk; pastry shop products TOTAL EXPORTS: 615 MILLION USD Sugar and candies Meat and seafood-based preparations 15% 58% 6% 8% Meat and offals 8% Vegetables, plants, roots and tubers Fruits; citrus peel, melons or watermelons Others 1% 1% 1% 2% 2/ Includes exports made to other countries and other states of Mexico. Preliminary data. Meat and offals FOOD AND AGRICULTURAL IMPORT STRUCTURE OF NUEVO LEON, 2005 3/ Oilseed and other; industrial or medicinal plants; hay and forage (PERCENTAGE DISTRIBUTION) Preparation based on cereals, flour, starch, milk; bakery Cereals Food industrial residues; balanced feed TOTAL IMPORTS: 1,281 MILLION USD 43% 20% Milk and derived products; poultry eggs; natural honey; edible animal products Beverages, spirits and vinegar 10% Meat and seafood-based preparations 7% Milling products; malt; starch; inulin; gluten from wheat 2% 2% 2% 3% Diverse food preparations Others 3/ 3% 4% 4% Includes the imports made from other countries and other states of Mexico. Preliminary data. Nuevo Leon… State of Progress 19 I nvestment Options Agriculture in Nuevo Leon has important investment options for activities oriented to export, service supply and added value of the primary production. AGRICULTURAL SECTOR Traditional and greenhouse horticulture Our State has a great potential for vegetable production (tomato, husk-tomato, garlic, jalapeño pepper and sweet pepper), through traditional production methods, shading and greenhouses. Likewise, in specific microclimates of the State there is a great productive potential for flower cultivation in greenhouses. These activities have an important commercial demand in national and international markets (United States of America and Europe). Organic products for export There is a growing worldwide interest for organic products due to consumers preference for healthier food, free of toxic residues and growing in productive systems that do not harm the environment. Vegetables, citrus and honey, are some of the organic production options in the State. Fruits and vegetables concentrated and conserves BANCOMEXT has identified market opportunities for concentrates and preserves of fruits and vegetables in Canada, the European Union, Japan and Korea and some niches in the United States of America. This activity is an attractive investment option due to the growing demand for processed food and agricultural products in cities around the world; so opportunities are being created in economically stable countries but with food production deficit. Our State has an interesting vegetable and fruit potential which combined with its geographical position becomes an investment option. Nopal (cactus leaves) industrialization Nuevo Leon's production of this crop is growing and represents an investment option; mainly because the State has local experience to introduce primary products into the State from other places of the country to process and give them the presentation that the market demands. This product has an important demand from Latin American population in the United States of America. 20 “Corporación para el Desarrollo Agropecuario de Nuevo León” I nvestment Options LIVESTOCK SECTOR Bovine feeding The production of beef has a very important national and international market demand. Currently in Nuevo Leon there are 97 cattle feedlots with a capacity of 398 thousand head per year, this activity represents an attractive investment option in the State due to its cattle productive vocation. Ovine feeding The production of sheep meat has an important demand in the national markets, mainly from the Central Region of Mexico because of its traditional consumption. Domestic production only satisfies 42% of the actual demand, while the remaining volume is imported as culled ewes and frozen meat. With regards to international trade, we export mainly to the United States of America, the European Union, Middle East, Africa and Brazil. This represents, an attractive investment option for the productive vocation in our State with fast recovery of the investment in this activity. Production of balanced feed The Northeast Region of Mexico, comprised by Nuevo Leon, Coahuila, Tamaulipas and San Luis Potosi, produces 13,889 thousand pounds of grains and farming residues annually; these are main ingredients for this agroindustry. Honey industrialization and bottling Honey from citrus bloom produced in the State's Citrus Region has great acceptance at national and international level. The Northeast Region of Mexico has the possibility to supply 5,070 thousand pounds of honey from citrus bloom and other flowers annually that require a simple process, representing an attractive investment option. Nuevo Leon… State of Progress 21 I nvestment Options HUNTING TOURISM, FORESTRY AND AQUACULTURE Hunting ranches The establishment of Units for the Management, Conservation and Sustainable Explotation of the Wild Life (UMA´s)*, is an opportunity for livestock diversification with a high economic impact. It is an important source of income because of hunting tourism, and it helps as backup for the livestock producers. Raising exotic animals Because of hunting and fishing tourism, reproduction and marketing of exotic animals has been converted into a very profitable investment, demanded by recreative hunting and fishing areas. Commercial forest plantations According to FAO’s estimations, the world demand for forest products will grow with an annual average rate of 7% during the next 15 years. This positions the forest activity as an attractive business option. Nuevo Leon offers interesting investment alternatives in commercial forestry plantations. For example, conifer species for wood production and Christmas trees. In addition, the interest for other species used to produce cellulose and subproducts is growing. The proximity of Nuevo Leon to the United States of America and its excellent road and railroad communications, are an advantage that is now being taken. Aquaculture and fishing The growing demand for young catfish, bass and tilapia in the Northeast Region of Mexico derived from aquaculture and fish repopulation of lakes, offering a business option. Black bass fishing, attracts thousands of sportsmen from around Mexico and South Texas to the Cuchillo, Mimbres and Cerro Prieto, Lakes. There is also an important demand for fish, so the fish processing industry stands out as major added-value business alternative. *By its abbreviations in Spanish. 22 “Corporación para el Desarrollo Agropecuario de Nuevo León” B usiness Incentives FEDERAL INCENTIVES Tax reduction Annual reductions. The Federal Government will reduce 1% the income tax for one year until 2007. Up to 96% of deductions in specific assets The costs of assets can be deductible as much as 96% in the year of acquisition or immediately in the next year. This incentive applies to different goods with reductions according to the type of investment. Fiscal incentives for research and development Companies can obtain a fiscal benefit of up to 30% off for research and development proposals, including product development, new production lines and training programs on research and development areas. STATE INCENTIVES Reduction on payroll taxes Payroll tax in Nuevo Leon is 2%, the State will offer a 50% reduction to companies located in the Metropolitan Area and a 95% reduction to those companies located outside the Metropolitan Area. This discount is offered for one year and can be extended for additional year based on the company's growth in employment. Personnel training program Through this program, the Nuevo Leon government becomes the employer of the personnel undergoing training for three months, providing them with a salary corresponding to 1.5 times the minimum wage, as well as the benefit of medical services; meanwhile the responsibility for the company is to contract 70% of the trained personnel when the program ends. Fees generated because of blueprints revision The State will provide to established businesses inside the Metropolitan Area, a 95% reduction in the fees charged because of the revision of blueprints during 2007 and 50% to those fees for sanitary engineering and construction of infrastructure for business activities, except offices. Nuevo Leon… State of Progress 23 B usiness Incentives STATE INCENTIVES Advisory and support to investors The “Secretaría de Desarrollo Económico” (State's Economic Development Secretariat) and “Corporación para el Desarrollo Agropecaurio de Nuevo León”, will assist companies interested in investing in Nuevo Leon through: • A tailor-made agenda for the needs of the companies; will organize business meetings and provide the necessary information to help the businesses make their decisions. • Support through an investment coordinator, so the establishment of the company in the State is fast and easy. • Support to contact qualified Mexican suppliers, through the Virtual Business Center (www.centrovirtualdenegocios.gob.mx). Governmental programs and universities The Universities and Technical Colleges have the possibility to modify or create classes so that their students can be incorporated to a company when they finish their academic studies. Besides the development of new products and processes can be done all together with educational institutions in their innovation and technology centers. Public Registration Fees The State will offer a 95% reduction on fees generated in the Public Property and Commerce Registry, registrations made during 2007 outside of the Metropolitan Area and a 50% reduction for those inside the Metropolitan Area. COUNTY INCENTIVES Real estate acquisition tax reduction The purchase of land and buildings is eligible for tax reduction. The tax applied to the acquisition of real estate is 2% and is applied to the total quantity paid for a property; a discount can be applied depending on each company’s project and the economic impact to the county. Property tax reduction It applies to any possession of land or property. The property tax is paid every year to the county; the amount changes depending on the property value. The reduction of this tax can be granted depending on the initial investment of the company. 24 “Corporación para el Desarrollo Agropecuario de Nuevo León” for Business G uide Opening PROCEDURE TO OPEN A BUSINESS IN NUEVO LEON PERMIT AND/OR PROCEDURE Land use permits Business constituting permits RESPONSIBLE Counties “Secretaría de Relaciones Exteriores” (SRE) www.sre.gob.mx Notarization of business constitutive documents Notary Public Work permits for foreigners “Secretaría de Gobernación” (SEGOB) www.gobernacion.gob.mx Subscribe in the Federal Tax Payer Registry and Inscription to the Importer Registry Registry of employees at the Institute of Social Security Enrollment of a charter Enrollment in payroll Enrollment in the Mexican Business Information System Authorization to open an establishment License for operation Foreign Innovation Registry “Secretaría de Hacienda y Crédito Público” (SHCP) www.shcp.gob.mx “Instituto Mexicano del Seguro Social” (IMSS) www.imss.gob.mx “Dirección Estatal del Registro Público de la Propiedad y del Comercio” http://www.nl.gob.mx/?P=d_reg_publico “Secretaría de Finanzas y Tesorería General del Estado” http://www.nl.gob.mx/?P=sec_finanzas Business Chambers www.siem.gob.mx “Secretaría de Salud” (SS) www.salud.gob.mx “Secretaría de Medio Ambiente y Recursos Naturales” (SEMARNAT) http://www.semarnat.gob.mx/ “Secretaría de Economía” (SE) www.economia.gob.mx OTHER WEB SITES OF INTEREST • SAGARPA (Main function: agricultural development) www.sagarpa.gob.mx • BANCOMEXT (Main function: foreign trade) www.bancomext.com • SEDEC (Main function: economic development) http://www.nl.gob.mx/?P=sec_des_economico • FIRA (Main function: agricultural financing) www.fira.gob.mx • SIAP (Main function: agricultural information service) www.sra.gob.mx • INEGI (Main function: statistics, geography and data processing nationwide) www.inegi.gob.mx Nuevo Leon… State of Progress 25 “Corporación para el Desarrollo Agropecuario de Nuevo León” Ave. Eugenio Garza Sada # 4601 Sur, Col. Condesa, Monterrey, N.L. Zip Code 64480, Tel. (5281) 2020-6900 www.nl.gob.mx/?P=des_agropecuario “Oficina Estatal de Información para el Desarrollo Rural Sustentable” (State Information Office for Sustainable Rural Development) www.oeidrus-nl.gob.mx