Targets where most of the production come from Mexico where higher yields can be achieved due to lower labor and land costs and where the value-added distribution occurs in the United States and Canada.
This strategy seeks to resolve the problem around the reliability of supply and is also designed to enable higher margin capture with an integrated value chain from the farm to the end retail market.
Companies in the primary sector which have the potential to merge with companies in the value-add sector to create a vertically integrated company.
Ideal investment targets will have strong growth potential, high profitability margins and robust corporate governance practices.
US & CANADA
MÉXICO
High labor cost
Low yields
Strong economy
Expensive supply chain
Large market
Strong purchasing power
High margins
Low barriers to entry
Low labor cost
High yields
Natural resources
Inexpensive land
Low retail prices
Low margins
Small market
High barriers to entry
PRIMARY
VALUE ADD
