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Mayora secures export deal from Latin American firms
Publicly listed processed-food producer PT Mayora Indah has secured a one-year export contract starting this October from Mexican processed-food company Galletas Juanita Mexico to further expand the companyâs exports to the Latin American country
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ublicly listed processed-food producer PT Mayora Indah has secured a one-year export contract starting this October from Mexican processed-food company Galletas Juanita Mexico to further expand the company's exports to the Latin American country.
The memorandum of understanding (MoU) for the contract worth about US$1 million was signed on Wednesday at Mayora's industrial complex in Cikupa, Tangerang, Banten, on Wednesday in the presence of the Industry Ministry's director general for export development, Nus Nuzulia Ishak, and the Mexican company's representative, Omar Barrera.
'We appreciate the hard work of PT Mayora Indah in their efforts to increase exports. We hope that the bilateral trade between the two countries will be improved with this activity,' Nus said during the MoU-signing ceremony.
Nus said that she appreciated the efforts of Mayora in entering the Latin American country, a market expansion which could further help Indonesia increase its exports of processed foods.
She said that the country's exports of foodstuffs reached $4.6 billion 2013, an increase of 15.43 percent from the figure recorded at the end of 2009.
'I think this is quite good, and we've set a growth target for this industry of about 10-15 percent from $4.6 billion to $4.9-5 billion [by the year's end],' Nus added.
Nus also said that the ministry would work with the country's trading partners to ease trade barriers especially non-tariff measures that impeded export growth. 'We'll work together so that this obstacle does not hinder exports,' she added.
In addition, Mayora also secured a $255,500 export order for food products such as wafers and butter cookies from Colombian company Sweet Brands SAS, beginning September.
Indonesia's processed-food exports to Mexico amounted to $5.56 million during the period between January and May this year, or an increase of 29.27 percent from the same period last year.
Meanwhile, exports of processed food to Colombia were still relatively small amounting to only $173,000 in the same period.
Dipa Komala, PT Mayora Indah group's country manager, said a new regulation in Mexico issued in the last three months about calorie labeling could potentially hamper the deal.
'In Mexico, there is an 8 percent increase in export costs for products with a calorie content of over 100 calories per section,' Dipa told reporters on Wednesday.
Even so, he remained optimistic about the deal, citing the company's potential to do business in Mexico. 'In 2012, the market for biscuits in Mexico amounted to $1.6 billion per annum. For coffee it was $750 million, while candy production stands at $450 million each year,' he said.
Dipa revealed that the products slated for export to Mexico included famous coffee-candy brand Kopiko and chocolate snack Choki-Choki, among others.
Mayora corporate secretary Yuni Gunawan revealed that the company's exports accounted for about 36 percent of total turnover of Rp 7 trillion (US$599.36 million) turnover as of June 2014.
