Page 38 - PET worldwide issue 04/2022

Suppliers

The supply chain in

Latin America

How the so-called container crisis has affected the pet food in-
dustry in Latin America and strategies for how to deal with the

current challenges.

Globally, the pandemic has Pet Nutrition. However, the region with Russia). Brazil is the third
caused one of the biggest ship- also includes a large number of largest soya bean producer in
ping crises in history. Around 80 smaller pet food manufacturers. the world after the United States
per cent of the goods consumed and China.
in the world are transported by Access to raw materials In an interview published by
sea, according to estimates by Corn, wheat and soya beans are Bloomberg magazine, Grant
the United Nations Conference the main ingredients in many Reid, CEO of Mars, talked about
on Trade and Development. Sev- pet food products. As the global how their entrepreneurial vision
eral factors have combined to economy recovers from the pan- has made them confront the sup-
affect the flow of supply chains demic crisis, demand for these ply chain crisis: “When we come
for industrial production, bring- commodities will increase, putting to a country, we set up manufac-
ing them to a truly critical point. some pressure on international turing plants and secure the pro-
The so-called “container crisis” prices for these inputs. However, duction of raw materials in those
means that there is little space many agricultural companies in countries. We make most of our
available to move supplies from the region are prepared to take products for the US in the US.
the world’s largest manufactur- advantage of the benefits of an Most of our products for Mexico
ing countries, such as China, Ko- increase in raw materials, which are made in Mexico. We have
rea, Taiwan and Vietnam, to the will even allow them to expand generated great opportunities
West. This crisis is closely linked their crops. This is a complicated not only for our associates but
to the Covid-19 pandemic that scenario, since at the same time also for our supply base and
continues to affect economies the prices of basic products for those places where we partici-
around the world today, due to agricultural and livestock produc- pate.”
strict sanitary measures to con- tion, such as fertilisers and animal Carlos Romano, president of
trol it. All this also affects the pet feed, have also increased, which Nestlé Purina Petcare for Latin
food industry worldwide and in poses a certain risk to the ability America and the Caribbean,
Latin America. of Latin American farmers to guar- said in an interview with El Her-
Due to its climatic conditions antee the world’s supply of basic aldo de México that over the
and soil fertility, Latin America foodstuffs. next four years, the company
Diana Mercado is an ideal place for the devel- Brazil, Latin America’s lead- will invest one billion dollars to
opment of the food supply sec- ing economy, ranks as the larg- put into operation new factories
is CEO of Zoo Inc. Agency, tor, both for human and animal est producer of supplies for the in Latin America. “We consider
a marketing and communica-
tions agency for the pet food consumption. Today, the Latin food industry in the region and how close the production site
industry. American pet food market is led internationally and this could is to the demand, but also that
marketing@zooincagency.com by global players such as Mars, help fill the gaps left by Ukraine there is access to raw materials:
www.zooincagency.com
Nestlé Purina Petcare and Hill’s in corn supply (due to the conflict chicken, pork, cattle and grains,”

38 PET worldwide 4|2022

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