Inspired by the success of its distribution company in Argentina, and Latin's America's growth in general, Belgium-based fresh produce giant Univeg has announced plans to open up elsewhere in the region.
The company has had an active distribution company in Argentina for 15 years, enabling it to source and supply a wide range of local and imported fruit for the domestic market.
Now, Univeg has launched a trading company in Sao Paulo, Brazil, to distribute local and imported fruit from the rest of South America and Europe.
“We believe there is room to start new trading companies in other countries, as business and economic conditions favour the domestic markets,” said Adolfo Storni, the region’s business development director.
The market has been positive in 2013, although Storni pointed to rising costs of freight, energy and labour as key issues. These are significant in Argentina, with its high inflation and poor exchange rates, although restructuring measures have maintained profitability.
“The main areas in which we have worked to improve performance have been farm and packing productivity, sourcing and commercial strategy, logistics agreements and increased co-operation on products for which there is more than one supplier,” noted Storni. “Under a common grape strategy we have made deals with breeders to develop new varieties. So we are able to offer customers a secure volume of Southern Hemisphere grapes from October to June.”
