Companies with Mexican Origin: SuKarne
HISTORY, ORIGIN & EVOLUTION OF SUKARNE
SuKarne initiated operations in 1969 in Culiacan, Sinaloa, Mexico, through the marriage of Jose Isabel Vizcarra and Maria Calderon, when Don Isabel decided to start his own business by buying a truck to move his own cattle for feeding, avoiding competence to his former boss in pork business, while Maria Calderon carried out the business accounting, along her household duties.
In that same year, Jesus Vizcarra, their firstborn, was only nine years old. However, besides attending school, he would go to the feedlot to help his father feed the animals, accompany clients, and even helped negotiate prices. Maturity and an eye for business has always been notorious in Jesus. So, when he was of age, at the end of the 70s, his father saw the opportunity of growing the business even more. He opted to leave the reins of the business to his young son, the one he had built for almost twenty years.
That was how with simplicity, discipline, firmness and wisdom, he invested in the launch of the first “Unidad Ganadera Integral” in 1985, located in Culiacan, where he would consolidate the feedlot, processing and packaging, with better capacity, technology and efficiency. At that same time, they were able to develop commercial relations with supermarket chains at a regional and national level, and with entities of the national finance system, including after ten years the capital investment of the Mexican Government Fund for Investment and Capitalization of the Rural Sector (FOCIR).
Then in the 90s, the company got associated with the European investment fund ING Baring and the Darby Fund, of Nicholas F. Brady, former US Secretary of Treasury. In 1995, Jesus’ vision was proven when the first shipment of meat was sent to the United States with the help of NAFTA. Without a doubt, it was an achievement that marked the history of SuKarne and became the turning point to achieve presence in four continents: Asia, Europe, Africa, and America. By the first two decades of 2000, the distribution network grew and the imports of beef from USA began. Now, with 50 years of experience, SuKarne is the Mexican company leader in the global market of animal protein.
SuKarne today is emerging as one of the most innovative companies in this industry worldwide, directly incorporating +100 K small farmers and livestock producers as suppliers, and +70 K microentrepreneurs as clients. They are also the biggest link to the Mexican rural sector, being the main source of income for +183 K families, including its +13 K employees. Currently, SuKarne has five Integrated Beef Production Units and two processing plants, where +1.6 million heads of cattle are processed, with a distribution network consisting of +400 sales routes and +300 stores in Mexico, US and Central America. +
q: WHAT INDICATORS WERE TAKEN INTO CONSIDERATION WHEN IT CAME TO MAKING THE DECISION TO EXPAND INTO THE U.S. AND NOT ANOTHER COUNTRY?
A: With the United States being the world’s biggest market for beef, SuKarne decided to take advantage of all the geographic and commercial opportunities the company had. Throughout the years, Mexico has been a complementary market in various other products, and meat is a significant example of the benefits of cooperation and the use of the different consumption habits in both countries. The taste of the American consumer is focused on cuts like Rib Eye, T-Bone, and on a variety of cuts derived from the Loin, so they are willing to assign a higher value and pay for it; however in Mexico, the domestic demand goes towards the rest of the cuts, which facilitates the “trading” game in order to generate more value in both markets.
q: THREE MAJOR CHALLENGES THAT SUKARNE ENDURED IN ORDER TO ENTER THE AMERICAN MARKET.
A: It is important to acknowledge that in the animal protein industry, the binomium “Food Safety – Globalization” cannot be separated when determining the competitiveness of the countries and the companies that participate in it. In this way, the development of the international market is linked to the fulfillment of the necessary investments on equipment and procedures to comply with the required standards for each importing country. Thus, the first challenge to enter into the American market was for Mexico to exhibit a good level of competency before the American authorities; prepared to implement and supervise the required quality standards. Once that was achieved, the next challenge was to consolidate the plant operations as a company, complying with all operational and safety conditions required to obtain certification by the U.S. Department of Agriculture (USDA), while simultaneously developing the sale channels and distribution network inside the country.
q: CONTRIBUTIONS BY SUKARNE TO THE U.S. SOCIETY (JOBS, SALES, CONSUMER OPTIONS, PRODUCT QUALITY)
A: SuKarne is the number one importer client in Mexico of USA produced animal protein, as of the equipment and supplies for cattle feed, slaughter and meat processing, which makes SuKarne a relevant player in the job creation and economic development of this important industry within the US. Through their products and innovative systems of distribution, SuKarne offers the US consumer quality products with American market standards, with optimal conditions in flavor, size and accessibility.