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TRADE LOGISTICS CONFERENCE 2010

TRADE LOGISTICS CONFERENCE 2010. Company Overview Logistics Food Safety Costs of freight and customs Key Issues & Challenges. COMPANY OVERVIEW. Kaliroy Produce is an exclusive distributor for: Agricola La Primavera S.A. de C.V. Bioparques de Occidente S.A. de C.V.

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TRADE LOGISTICS CONFERENCE 2010

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  1. TRADE LOGISTICS CONFERENCE 2010

  2. Company Overview • Logistics • Food Safety • Costs of freight and customs • Key Issues & Challenges

  3. COMPANY OVERVIEW • Kaliroy Produce is an exclusive distributor for: • Agricola La Primavera S.A. de C.V. • Bioparques de Occidente S.A. de C.V. • We are a fully integrated organization, from growing to marketing. • Total Production acres managed by the company are more than 1,000 (440 Hectares ). Acres Has • Open Field 375 150 • Green-House 725 290

  4. DISTRIBUTION COMPANY OVERVIEW Nogales, AZ McAllen, TX CULIACAN GROWING AREAS SAN GABRIEL JALISCO TO NOGALES 1,822 KMS, AVERAGE TIME 19:00 HRS SINALOA TO NOGALES 973 KMS, AVERAGE TIME 9:30 HRS JALISCO TO McALLEN 1,270 KMS, AVERAGE TIME 13:00 HRS

  5. Operations COMPANY OVERVIEW

  6. PRODUCT PACKAGE PRESENTATIONS • TOMATOES • PRODUCTPACKING • Roma 25 Lbs., clams • Vine Ripe 2 Layer/25 Lbs., RPC • HH Beefsteak 15 Lbs, 5lbs, clams • Grape Volume-fill, clams • TRUCKLOAD MAP ON PACKAGES SHIPPED • 25 LBS = TRUCK LOAD WITH 1920 BOXES • 2 LAYER = TRUCK LOAD WITH 2112 BOXES • 1 LAYER = TRUCK LOAD WITH 2400 BOXES LOGISTICS

  7. INSPECTIONS AT THE BORDER LOGISTICS INSPECTIONS NEVER ARE LESS THAN 4 HOURS, COULD BE 8 HOURS NEVER SPENT MORE THAN 2 HOURS ON INSPECTIONS

  8. MEXICAN CUSTOMS LOGISTICS MEXICAN CUSTOMS • KEY POINTS: • MAYMAR FACILITY INSIDE THE FISCAL CORRIDOR • GOOD TIME INSPECTIONS

  9. LOGISTICS Source:

  10. FOODSAFETY Mission “Detect and prevent terrorists and terrorist weapons from entering the United States, while facilitating the orderly and efficient flow of legitimate trade and people at and through our Nation’s borders”.

  11. FOODSAFETY • Committed with our product and people Security, • since October, 2009 we are a C-TPAT Certified • and Validated Company. • It means hard work and costs, however, the • benefits we received are better. The Company • invested around of $200,000 on C-TPAT Program • implementation. • Wal-Mart Program • Fast Lane • Tranquility • Possibility of better trade relations

  12. FOODSAFETY • One of our most important concerns is to provide our customers with safe and quality products. • Our operations have an excellent & reliable Food Safety Program. • Our companies are certified for: • GMP (Good Manufacturing Practices) • GAP (Good Agricultural Practices) • HACCP • Mexico Calidad Suprema • SENASICA www.primuslabs.com/kaliroy/index.asp http://www.senasica.gob.mx/ http://www.mexicocalidadsuprema.com.mx/organismos.php

  13. PRODUCTION COSTS FREIGHT FROM JALISCO $2,500 USD FREIGHT FROM SINALOA $1,500 USD COSTS

  14. CHALLENGES • WAL-MART OPPORTUNITY • Since 2007 Wal-Mart developed a program to buy • directly from the growers. • We deliver our product directly to Wal-Mart’s Distribution Centers at Los Lunas, NM. and Casa Grande, AZ. • We also deliver at Nogales, AZ to SunFed which • distributes to more Wal-Mart’s Distribution Centers. • We sell our product to others Wal-Mart’s direct • suppliers. (Brokers)

  15. KEY ISSUES & CHALLENGES • Keep and Improve all Certifications • Increases on Diesel affects us directly (Freight Cost) • Military check point @ Benjamin Hill, inspection lasts • 4 to 8 hours • CTPAT compliance with ALL business partners • New technology @ Nogales border CBP to expedite • the inspection processes • Maintain and improve all food safety initiatives (Culture) • Improve OTD (On Time Delivery) CHALLENGES

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