Introduction to Grupo Herdez and its Sustainability Efforts
Grupo Herdez, a prominent player in Mexico’s food industry, has been leveraging sustainable agricultural practices to expand its reach into European markets. Juan Rodríguez Tafolla, the head of Inocuidad y Sostenibilidad (Food Safety and Sustainability) at Grupo Herdez, has highlighted the importance of these practices in meeting stringent European regulations and boosting export opportunities for their product portfolio.
The Journey to European Markets
Two years ago, the adoption of sustainable farming practices for key ingredients like tomatoes, chili peppers, and onions opened the door for Grupo Herdez to enter the European market. Initially, they targeted the UK with their salsa products, and now that France and Spain have joined, the company is actively working on various projects due to similar regulations.
“Sustainable agricultural practices were the key that unlocked the UK market two years ago for our salsa products, and now with France and Spain entering the scene, we’re well-prepared thanks to similar regulations,” explained Juan Rodríguez Tafolla.
Expanding Sustainable Practices Across the Supply Chain
Currently, Grupo Herdez focuses on sustainable farming for their primary ingredients. However, they aim to extend these practices throughout the entire supply chain. This year, they plan to fully integrate yellow corn production, while gradually incorporating frozen products and strawberries for jam production, along with honey by 2030.
Benefits of Sustainable Agriculture
Rodríguez Tafolla emphasized that transitioning from traditional to sustainable farming methods has not only facilitated market entry but also resulted in significant cost reductions—up to 25% in agricultural production expenses.
“Although this percentage fluctuates based on factors like production type and climate, we’ve seen substantial savings. For instance, a study with one of our suppliers revealed an 11.5 million pesos saving over two harvests in 250 hectares after implementing sustainable practices,” he shared.
Investments in Sustainability
In 2024, Grupo Herdez invested 60 million pesos in sustainability-related projects and initiatives. They procured a total of 134,000 tonnes of raw materials, including chili peppers, onions, tomatoes, honey, and frozen goods.
Supporting the “Hecho en México” Program
As a Mexican company, Grupo Herdez remains committed to the “Hecho en México” (Made in Mexico) initiative, which encourages local production and consumption. Their value chain comprises 3,800 agricultural producers, with 57% of their agricultural raw materials sourced directly from local farmers through their sustainable agriculture program.
More than 98% of their agricultural raw materials come from Mexican suppliers. Grupo Herdez aims to strengthen ties with local producers, currently working on integrating wheat and increasing the proportion of regenerative harvest grain in their pasta category to 25%.
In the near future, Grupo Herdez plans to feature the “Hecho en México” label on their products, emphasizing the national origin of their ingredients to consumers.
Key Questions and Answers
- What are sustainable agricultural practices? Sustainable farming methods that minimize environmental impact, conserve natural resources, and promote long-term agricultural productivity.
- How has sustainable agriculture impacted Grupo Herdez? It has enabled the company to meet European market regulations and reduced production costs by up to 25%.
- What are Grupo Herdez’s plans for expanding sustainable practices? They aim to integrate yellow corn, frozen products, strawberries for jam, and honey into their sustainable supply chain by 2030.
- How is Grupo Herdez supporting the “Hecho en México” program? By sourcing 57% of their agricultural raw materials directly from local farmers and striving to increase the proportion of locally-sourced ingredients in their products.
