Voluntary Report - public distribution

**Date:** 9/9/2005

**GAIN Report Number:** MX5080

MX5000

**Mexico**

**Agricultural Situation**

**Weekly Highlights and Hot Bites, Issue #30**

**2005**

Approved by:

![](media/image1.wmf)Suzanne Heinen

U.S. Embassy

Prepared by:

Dan Martinez, Bruce Zanin, and Erich Kuss

Report Highlights:

-   Wal-Mart Mexico to expand into rural areas

-   **FAS/FCS WebEx on ISPM-15 (Wood Packaging Materials)
    Implementation**

######## Mexico sends 45-truck Convoy of Humanitarian Aid to Katrina Victims 

######## Kellogg\'s to diversify selection in Mexico 

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Mexico \[MX1\]

\[MX\]

###### Wal-Mart Mexico to expand into rural areas

Wal-Mart Mexico announced that it would focus its new store construction
on smaller Mexican cities, emphasizing smaller store formats. The
smaller store formats will be within the traditional Wal-Mart
Supercenter and Bodega Aurrera formats. For example, the most recently
opened Wal-Mart Supercenter covers 6,500 square meters instead of the
normal 9,000 square meters. Supermarket competition in Mexico continues
between Wal-Mart, with over half of Mexican supermarket sales, and
Soriana, Comercial Mexicana and, to a lesser degree, Gigante. In
addition, HEB, a Texas-based supermarket chain with a strong presence in
northern Mexico, announced this week that it will expand into the
central Mexican states of Aquascalientes and Guanajuato in 2006.
(*Reuters America Latina*, 9/9/05)

**FAS/FCS WebEx on ISPM-15 (Wood Packaging Materials) Implementation -**
On Tuesday, September 6, USDA's Foreign Agricultural Service and the
Department of Commerce's Foreign Commercial Service joined together to
conduct an Internet-based seminar on the implementation of ISPM-15, an
international standard regulating the treatment and certification of
wood packaging material in international commerce. This regulation is
scheduled to be implemented by Canada, the United States and Mexico on
September 16, 2005. Company representatives comprising a broad spectrum
of U.S. industries from logistics, manufacturing, distribution, and
exporting called into a toll-free number to hear the presenters and
viewed a power point presentation transmitted via the Internet. There
was a question and answer session following the presentation. (*ATO
Monterrey*)

**Mexico sends 45-truck Convoy of Humanitarian Aid to Katrina Victims
--** On September 8, a 45-Truck convoy of humanitarian aid from Mexico
crossed the border at Colombia, N.L. Among the products donated by the
GOM, were many food products including beans, sugar, cooking oil, rice,
wheat flour, sardines, tuna, and other products. The humanitarian
gesture was recorded by up to 50 different Mexican news organizations
that were present at the border crossing. Once across, the convoy
proceeded to the U.S. Customs inspection facility where it was met by
inspectors from CBP, FDA and FSIS. FAS/Mexico City, ATO Monterrey,
FSIS/W and APHIS/W collaborated together to facilitate a smooth crossing
of the convoy. (*ATO Monterrey*)

######## 

######## 

######## Kellogg\'s to diversify selection in Mexico

Kellogg\'s aims to significantly increase breakfast cereal consumption
in Mexico, which, it claims, is the lowest per capita in the world at
1.4 kilograms annually. Its strategy concentrates on introducing limited
offer items - products that will be on the shelves for only a few
months - aimed at the adult consumer who is looking for healthy foods.
The latest cereal brand Kellogg\'s has introduced, "Go", is aimed at
consumers in the 30-45 year-old age group. In addition to expanding
supermarket sales, Kellogg\'s has a sales force dedicated to the small
retailer as well as consumers in small-medium size cities. Of the three
market segments in which Kellogg\'s participates in Mexico - cereal
bars, children\'s breakfast cereal, and adult breakfast cereal - the
former is the fastest growing, enjoying double digit growth, with women
the primary consumers. (*El Financiero*, 6/9/05).

REPORTS RECENTLY SUBMITTED BY FAS/MEXICO CITY

+----------+------------------------------------------------+----------+
| # NUMBER | # TITLE                                        | # DATE   |
+----------+------------------------------------------------+----------+
| MX5079   | Apple Annual                                   | 9/07/05  |
+----------+------------------------------------------------+----------+
| MX5078   | Weekly Highlights and Hot Bites, Issue #29     | 9/02/05  |
+----------+------------------------------------------------+----------+
| MX5077   | Livestock Annual                               | 9/01/05  |
+----------+------------------------------------------------+----------+
| MX5076   | Weekly Highlights and Hot Bites, Issue #28     | 8/29/05  |
+----------+------------------------------------------------+----------+
| MX5075   | Mexican Customs Establishes Grace Period for   | 8/29/05  |
|          | Correcting Errors in Import and Export         |          |
+----------+------------------------------------------------+----------+
| MX5074   | Mexico Announces Tariffs in Response to Bryd   | 8/22/05  |
|          | Amendment                                      |          |
+----------+------------------------------------------------+----------+
| MX5073   | Implementation of Secretariat of Health        | 8/19/05  |
|          | Regulations Governing Certain Segments of the  |          |
|          | Meat Industry                                  |          |
+----------+------------------------------------------------+----------+
| MX5072   | Weekly Highlights and Hot Bites, Issue #27     | 8/19/05  |
+----------+------------------------------------------------+----------+
| MX5071   | Mexico Announces a Unilateral Soybean Meal TRQ | 8/19/05  |
+----------+------------------------------------------------+----------+
| MX5070   | Mexico Establishes 2005 Additional Volume on   | 8/17/05  |
|          | Out-of-Quota Milk Powder Imports               |          |
+----------+------------------------------------------------+----------+
| MX5069   | Ciudad Reynosa Now Eligible as a Border        | 8/12/05  |
|          | Crossing Point For CLQs & Bovine Edible Offal  |          |
|          | Products                                       |          |
+----------+------------------------------------------------+----------+
| MX5068   | Weekly Highlights and Hot Bites, Issue #26     | 8/12/05  |
+----------+------------------------------------------------+----------+
| MX5067   | Tree Nut Annual Report                         | 8/10/05  |
+----------+------------------------------------------------+----------+
| MX5066   | Weekly Highlights and Hot Bites, Issue #25     | 8/05/05  |
+----------+------------------------------------------------+----------+
| MX5065   | Final Decision in the Antidumping Case Against | 8/04/05  |
|          | U.S. Inedible Soy Oil                          |          |
+----------+------------------------------------------------+----------+