Victoria Gutierrez has been thinking about plays lately.
The President Trump would warn Mexico, Canada and China about food and other supplies. So Mrs. Gutierrez started a working group by Sysco, global food distributor and company within the company’s thousands of suppliers.
The good news of Sysco was a company with almost $ 79 million in annual income.
Bad news? Avocados.
“Most of the avocadoes eaten in the United States come from Mexico. Can we meet the full demand for US avocado? No,” said Gutierrez Mrs. Ms. February. He added, “It doesn’t grow a lot in the winter in the United States.”
On Tuesday, the threat of fares became a reality. The Trump Administration placed a 25% rate in all Canadian and Mexican imports. This year he has also added 20% rates from China this year, on the tax that remained from the first term of Trump.
Before Tuesday, companies like Sysco were exciting to build inventories, especially more perishable goods, or find new suppliers in countries aimed at new rates.
“We’ve got a million pounds of coffee from Mexico,” the main official of the Westrock Coffee, McDonald’s and Walmart produces private coffee manufacturers in February, before putting rates in the February. “We tried to seek the source from a different origin origin. Maybe we will replace Mexico with Honduras or Guatemala.”
It is to build a limited inventory of coffee or tequila from Mexico, but it is almost impossible with perishable goods like avocados. There, companies have two options: they have additional costs from the rates or they move along with consumers.
Mexico, the largest producer of the world Avocado, supplies about half avocadoes used in the Chipotle restaurant chain. This company said this week he did not charge extra customers, at least for now.
“Being here today is absorbed by these costs,” Scott Boatwright said, Chipotle General Manager interview “NBC with night news”. He was careful, however, if the costs became “important headaches”, prices can be raised.
The General Director of the target, Brian Cornell, on the other hand, said Cnbc On Tuesday, Retail was raised fruit and vegetable prices imported from Mexico “in the following days”.
The ability to pass companies across the rates may be limited by consumers, some analysts warned. The packaged food companies, for example, should be absorbed at least “at least costs,” rather than the risk of loss of market share, S & P Global Ratings analysts wrote in mid-February.
A few years ago, the main supply chains of large companies or procurement managed mostly in search of lowest cost producers, or for companies that try to market sustainability, they were produced to customers in climate and ethical ways.
Manufactured manufacturers and shipping delays, in some cases, suppliers, “suppliers”, Canada and Mexico, closer to the United States. The idea was to build safety networks of the supply chain.
On Tuesday, however, these local people became harmful to the north and as harmful as neighbors to the south.
Mondelez International, a snack located in Chicago, has a Mexican factory, which converts Ahoy in Mexico, Oreo and Chips! Cookies and Ritz Crackers. This factory recounts approximately 18% of the company’s sales according to the estimates of the analysts of the Piper Sandler. Plants, analysts written in a note in February, is “the highest cost efficiency, it is very difficult to return production to the US without having higher production costs.”
Mondelez did not answer a comment message.
Some alcohol companies are especially influenced by new rates. Last month, 45% of other liquors imported from US sales and Mexico, which warned Canada’s whiskey, could be a success of $ 200 million in this year’s second sex. Analysts also notice that more than 75% of the US constellation brand sales are imported from Mexico, such as model and crown.
The constellation brands did not return to the comments of the emails, and an experiment made visions in early February. The company expected to reduce the impact of fare, through its supply chain and “through other relief strategies”.
In Sysco, restaurant and drink offers restaurant channels and the most important hospital and school systems, Mrs. Gutierrez said that the company changed its supply chain during Covid.
“Before, perhaps we had a product for a product,” Gutierrez said in mid-February. “We’ve had two or three years ago. If we had someone from a country, they became two or three countries.
In addition, large global food companies like Sysco can send prices of components that need to be adapted to climate-related or other topics that they may have difficulty, like eggs.
The most notable parts of Sysco’s supply chain are fruits and vegetables.
“From Mexico and South America, we get avocadas, limo, tomatoes and onions,” Gutierrez said. From Canada, Sysco imports cannola oil and wheat, but also frozen potatoes like french fries.
In an email on Tuesday, Sysco said if there was no immediate alternative to all products affected by the rate, trying to identify customer opportunities.
“The name of the game is the name of the game,” the game to deal with official supply chains, uncertainty and shocks. “Said Gutierrez. “Whether the storms in a particular geography, rates”.
2025-03-05 10:04:00
