Amazon plans mega-warehouse for Mexico growth spurt

Amazon plans mega-warehouse for Mexico growth spurt

Sep 22, 2017

Amazon.com is preparing to open a 1 million square-foot warehouse near Mexico City, sources familiar with the project said, part of an effort to boost its presence in Mexico’s nascent e-commerce industry. The new warehouse is slated to be built in the Tepotzotlan municipality about 25 miles (40 km) north of the Mexican capital, according to four Mexico City real estate professionals familiar with the plans. Expected to be completed next year, the facility would triple Amazon’s distribution space in Mexico, home to around 120 million potential customers. Amazon’s Mexico push comes amid talks to revamp the North American Free Trade Agreement, which could benefit the Seattle-based retailer if the United States persuades Mexico to raise a $50 limit on the value of online purchases that can be imported duty-free. Amazon is a relative newcomer to Mexico; it opened its Kindle e-books site to Mexican customers in 2013 and expanded into sales of physical goods just two years ago. But it is growing much faster than rivals such as Wal-Mart Stores, and is already the nation’s third-largest online retailer. Amazon posted $253 million in sales in Mexico last year, more than double the year before, according to market research firm Euromonitor International. Sharing a nearly 2,000-mile long border with the United States, Mexico would seem a logical place for Amazon to expand. But duplicating the company’s U.S.-style success could prove tougher. Online shopping comprises nearly 3 percent of all retail sales in Mexico compared with over 10 percent in the United States. Some Mexican shoppers are wary of online fraud and many do not have credit cards. Some analysts believe Amazon is willing to take the risk as it races to bulk up in foreign markets to compete with fast-moving global competitors such as China’s Alibaba. “Amazon is not afraid to plow into a new market in a very big way, take a big hit, but say, 10 years down the line, this is going to be big and profitable,” said Neil Saunders, managing director at the GlobalData Retail research firm. Amazon spokesman Julio Gil declined to comment on plans for a new warehouse in Mexico. He said the company’s Mexican unit is aiming...

Cotton harvesting advances in the Mexicali Valley

Cotton harvesting advances in the Mexicali Valley

Sep 17, 2017

MEXICALI BC- “The cotton crop of the spring-summer 2017 agricultural cycle continues to advance in the Mexicali Valley, where so far, 199 hectares have been harvested”, announced the delegate of the Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA) in Baja California, Engineer Guillermo Aldrete Haas. He stated that harvesting activities are currently ongoing mainly at the agricultural fields assigned to the Centers of Support to Rural Development (CADER) Delta and Hechicera. The official explained that the biggest advance is recorded in CADER Delta, with the harvest of 118 hectares, of a program of 2,394 hectares. The production of fiber generated to September 13, will allow the maquila sector to come up with 801 bales. The recorded yield is 6,790 bales per hectare, according to the report of the Rural Development District 002, Río Colorado, Valle de Mexicali. Talking about CADER Hechicera, Aldrete Haas explained that 81 hectares have been harvested, representing an advance of 1.26 percent, compared to the 6,423 hectares planted. The fiber obtained, will provide the maquila sector with 595 cotton bales. The yield reported by the producers is 7,340 bales per hectare. The delegate said the average overall yield is 7,014 bales per hectare; while the production obtained so far, will provide the maquila sector with 1,396 bales per hectare. During the spring-summer 2017 agricultural cycle, in the Mexicali Valley, a total of 25,789 hectares were planted, from an initial program of 18,464 hectares. Finally, the official stated that cotton is one of the most important crops for the Valley of Mexicali and for the economy of Baja California, reason why the federal government and the head of SAGARPA, José Calzada Rovirosa, through the State Delegation, will continue to work in a coordinated way with the cotton farmers of the region, in order to achieve the development and consolidation of this important industry for the State....

State Government presents programs of credit and supports for Mipymes of the Mexicali Valley

State Government presents programs of credit and supports for Mipymes of the Mexicali Valley

Sep 13, 2017

MEXICALI, BC- Monday, September 11, 2017. As part of the Crusade for Family Economy and Economic Growth, the State Administration led by Governor Francisco Vega de Lamadrid, through the Economic Development Secretariat (SEDECO) will hold on Wednesday, September 13, an exhibition of support programs and credits available to the MSMEs at the Center for Entrepreneurial Development located in Ciudad Guadalupe Victoria in the Mexicali Valley. This was reported by the Undersecretary of Economic Development, Alfredo Babun Villarreal, who explained that the credits are accessible and the amounts range from 20 thousand pesos to 1 million pesos. Service companies, commerce, industry and agribusiness with more than six months of operation can participate. He explained that interest rates are very attractive and start from 6% a year and are modified according to the amount and term of the financing, while the resources can be used for equipment, infrastructure, working capital, and there is a special credit to acquire utility transport equipment. Another of the programs promoted is MODERNIZATIC, which promotes the strengthening of business skills through training, business consulting and technological tools, he said. This program includes courses, business consultancy within the business and adoption of technology, as it provides a smart phone with coverage, data and internet for up to 6 months and the digital solution for charging clients by credit card, as well as software for electronic billing and sale of cell phone credit. “MODERNIZATIC is aimed at microenterprises in the commerce, industry or services sector, with less than 10 employees, that have up to 4 million pesos in annual sales”, Babun Villarreal said. The state official invited those interested to register at the Guadalupe Victoria Entrepreneurial Development Center located at Calle 10, in Plaza del Carmen, Local 3. The telephone number is (658) 516-2662 and email:...

Baja California tomato production expected to increase

Baja California tomato production expected to increase

Sep 9, 2017

The seasonal uptick in volume of Mexican tomatoes crossing the U.S. border at Otay Mesa, Calif., should be under way by the start of September. “Baja has been going since April,” Joe Bernardi, president of Bernardi & Associates, said Aug. 9 from the Turlock, Calif., branch of the Nogales, Ariz.-based brokerage. “They slow down in August. Growers don’t plant as much knowing there will be homegrown garden tomatoes and regional production in the summer. They come back for the fall deal.” Bernardi, whose company brokers round, roma and grape tomatoes from Baja California, Mexico, from April to December, said there have been no adverse weather issues to threaten the fall harvest. “I expect good quality and volume,” he said. Pricing The U.S. Department of Agriculture reported Aug. 28 that 25-pound cartons of loose roma tomatoes crossing from Mexico through Otay Mesa were mostly $14.95 for extra large and $12.95-14.95 for large sized tomatoes. Prices for roma tomatoes from California’s Central District were nearly the same, with 25-pound cartons mostly $14.95 for extra large and mostly $13.95-14.95 for large sized tomatoes. Sales manager Ricardo Roiz said Frank’s Distributing of Produce LLC, Nogales, Ariz., started sourcing conventional and organic roma and heirloom tomatoes and organic round tomatoes from Baja California in June. He said a higher-volume area in the south will ramp up production in mid-October and continue into mid-January. Roiz said the company’s Baja California tomato crops are 60% organic and 40% conventional. “We’re focusing more on organics,” he said. “We’re switching to organic more each year.”...

U.S. insists that salaries should be raised in Mexico

U.S. insists that salaries should be raised in Mexico

Sep 6, 2017

According to the LA Times, representatives of the United States, Mexico and Canada declared “progress” but unveiled no breakthroughs at the conclusion Tuesday of a second round of talks to revise the North American Free Trade Agreement Still unresolved are a number of controversial issues, including Washington’s desire for expanded use of U.S.-made materials in automobiles and other products and disagreements about the mechanisms for resolving trade disputes and whether steps should be taken to raise salaries for Mexican workers. The future of NAFTA has become a major irritant in U.S.-Mexico relations. President Trump has repeatedly assailed the deal as a job killer for the United States and threatened to pull out. The 23-year-old trade pact is being renegotiated at the insistence of Washington, which seeks to reduce its more than $60 billion annual trade deficit with Mexico. The talks are expected to last at least through the end of this year, with venues rotating among the three nations. The just-concluded five-day session in Mexico City followed an initial round last month in Washington. “We must have a trade agreement that benefits all Americans and not just some at the expense of others,” U.S. Trade Representative Robert Lighthizer said Tuesday at a news conference with Mexican and Canadian officials. “I am hopeful we can arrive at an agreement that helps American workers, farmers and ranchers, while also raising the living standards of workers in Mexico and Canada.” Mexico’s comparatively low wages are a major draw for U.S. and other international corporations. Efforts by labor activists and others to seek higher wages for Mexican workers as part of a retooled NAFTA have drawn opposition from business. Provisions to increase wages in Mexico — which Lighthizer said the Trump administration favors — would theoretically give U.S. firms less incentive to relocate manufacturing facilities south of the border. Initial talks have focused on issues on which there is broad agreement, said Ildefonso Guajardo, Mexico’s economic secretary and the country’s chief NAFTA negotiator. NAFTA took effect in 1994, phasing out tariffs and other trade restrictions among the three nations and creating one of the world’s largest free-trade zones. The pact governs much of the more than $1 trillion in annual commerce...

“Employment and Credit Fair 2017” in San Felipe

“Employment and Credit Fair 2017” in San Felipe

Sep 5, 2017

Mexicali B.C. September 4, 2017.- The 22 City of Mexicali through the Economic Development Coordination in alliance with other programs and institutions that offer credits and supports in the municipality, made an open invitation to the first “Employment and Credit Fair 2017” today Tuesday, September 5 in the Port of San Felipe. Economic Development Coordinator Jose Luis González reported that this fair is held at the Center for Integral Human Development of the Port, from 9 in the morning to 3 in the afternoon so I invite the entire community of San Felipe to be close. He mentioned that 15 credit institutions are present giving supports for small producers, entrepreneurs and productive companies, as well as financing support in the range of 10 thousand to 3 million pesos, with interest rates from 6% to 12%. The municipal official said that 21% of the companies in the municipality are located in the Valley and San Felipe, 77% of then belong to the commerce and services sector and 92% are micro-enterprises with no more than 10 employees. So, through this fair, the government seeks to improve services as well as businesses in the locality to make them more competitive. Finally, he explained that this Fair will be held on September 6 in the Morelos Interejidal Room and on September 7 at the Center for Integral Human Development of the Guadalupe Victoria Delegation with the same participating companies. Source: Ayuntamiento de...