by Dan Vallada FoodBizDaily.com Miami
November 06 2009 - Frozen and dehydrated mashed potato manufacturer McCain (Canada) threatens to stall its production in Argentina next week due to Brazilian barriers against a range of products from the neighboring country, including some perishable ones.
The company produces more than 100 thousand tons per year in Argentina, and 80% goes to Brazil, according to Director Lucas Alvarez Bayon. "We are very concerned. Brazil is our main market. It's where our major customers are," he said.
Argentina-based since 1995, the Canadian company is directly affected by the Brazilian government restrictions launched in retaliation to Argentinean barriers imposed by President Cristina Kirchner for over a year- against 14% of Brazil's exports to its neighbor.
Since Brazil’s decision on Oct 20th to remove some items from the automatic import license system, McCain practically can not enter the country
In the past 15 days, McCain shipped the equivalent of only one day exporting to Brazil when "Normally we export 20 trucks with 23 tonnes per day, but with the restrictions we can only export 16 tonnes," he said.
"We would have started the license application earlier but we were not aware of the procedures. Now there’s the risk to stop production," he lamented. According to the director of the company, consequences would jeopardize about 7 thousand direct and indirect jobs, and the company’s suppliers.
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McCain Foods Limited
Address: 107 Main St. Florenceville, E7L 1B2 CAN
Telephone: +1-506-392-5541
Fax: 506-392-6062
About McCain Foods Limited
McCain Foods isn't a small-fry company: It's the #1 french fry maker in the world, processing about 1 million pounds of french fries and other potato products per hour. In addition to its own brands, it owns the Ore-Ida foodservice business (H.J. Heinz still owns the retail brand). The company also produces frozen vegetables, juices, pizza, entrees, and desserts. The McCain family began producing french fries in 1957 and still owns the company. A power struggle in the mid-1990s split family loyalties, and some of the clan went off to run Maple Leaf Foods, one of Canada's largest food processors.