Attendees leave with optimism for future Participa ...

8/4/1995 12:00:00 AM

By Tom Karst

Attendees leave with optimism for future Participants discuss the centralmarket system and economic recovery.

By Tom Karst

Executive Markets Editor

MONTERREY, Mexico -- Mexico's economy may resemble a soft taco, butwholesalers and government analysts attending the Expo CONACCA conventionpredicted a stronger economic outlook for 1996 and 1997.

U.S. produce exporters, well represented at the event, are at various stagesof dealing with the 7-month-old Mexico peso crisis. Washington apple and pearshippers already had absorbed the brunt of the devaluation and have watchedsales plunge and then stabilize.

Washington apple exports to Mexico totaled about 3.5 million cartons throughmid-July, down about 50 percent from the same time a year ago.

California grape exporters were just beginning the export phase of theirseason.

``I am cautiously optimistic,'' said Scott Horsfall, export director for theCalifornia Table Grape Commission.

``The apple and pear people say the market is down, but the market is stillthere. I think we will be in a similar situation.'' September through Decemberis the big time for moving U.S. grapes to Mexico.

Other commodity groups were using the event to educate the Mexican trade aboutthe handling of their product.

For example, Adrian Rivera of the California Tomato Board was distributingpostage stamp-sized refrigerator magnets with the words ``No Los Refrigere,''a reminder to avoid improper refrigeration of tomatoes.

Despite the ailing peso, attendance and participation was strong at the July27-29 event, which has swelled from just 20 exhibitors two years ago to wellmore than 100 booths this year.

Horsfall said attending a convention of Mexican wholesalers makes sense forU.S. commodity groups.

``Almost all the fruit goes through the central markets and that's why thisparticular show is so important,'' he said.

The health and evolution of the central market system in Mexico was a majortopic at CONACCA '95.

One Mexican government speaker said that of 57 primary wholesale markets inthe country, 30 were reported to be facing obstacles ranging from higherinterest rates to lower consumer demand.

``In 33 of the 57 units there are many problems,'' said Felix Aguilar directorof SECOFI, Mexico's Commerce Department with oversight responsibilities forthe central market system.

In fact, Aguilar said some markets are empty because the lack ofinfrastructure or trade interest in locating where the wholesale market wasbuilt.

Aguilar said wholesalers in Mexico need to increase the use of refrigeration,forklifts, palletization and conveyors to become more efficient in handlingproduct.

All but one chain store in Mexico buys from the central market system, andAguilar said successful wholesalers must find ways to add value for theirretail customers.