Page 116 - STRATEGY Magazine (G)

PROFILE: AGROAMERICA NOURISHING A HEARTLAND
Latin America is well on its way to becoming a global food superpower, with innovative companies like AgroAmerica leading the way, delivering quality products around the world while adhering to a strict code of corporate social responsibility.
“AgroAmerica’s leadership in banana and palm oil production and export goes beyond the business aspect, setting an example of caring about the environment, the workforce, and the community.” —Fernando Bolaños, CEO, AgroAmerica
FACTS
AgroAmerica
Founded: 1958
Industry: Food production and agriculture
Investments: Entertainment, fast food companies, renewable energy and wind power projects, commodity hedge fund in U.S., and World Food, a leading producer of non-GMO and organic plant-based protein ingredients in the United States
AgroAmerica, a principal grower and exporter of agricultural products in Latin America, produces bananas and palm oil for markets in North America, Europe, the Mediterranean, Asia, and Latin America. The company has sold its Guatemalan- and Ecuadorian-grown fruits in the United States and Europe for 40 years and produces 22 million boxes of bananas annually. In 2014, AgroAmerica expanded organic banana farming into Peru and palm oil into Panama. Palm oil production and export, mainly to large industrial companies, makes up the remainder of the firm’s product portfolio.
The name means quality
To ensure quality receipt of AgroAmerica’s produce at the point of sale to consumers, the company acquired its own fleet of refrigerated shipping units and has developed extensive in- house expertise in the global transportation pipeline for fresh food products. This service is also offered to other exporters in the region, ensuring supply chain control and quality delivery for a large percentage of Latin American food production.
Although the company packages bananas for sale under the Dole and Del Monte labels, AgroAmerica’s innovation and commitment to excellence have yielded an exceptional product capable of carrying its own brand, leading to the launch of ONE Banana in November 2014 with distribution in the United States, Canada, and Europe. “Each day the market is more aware of quality and wants to know the circumstances in which the fruit is produced. The ONE brand fulfills consumer expectations through high standards and consistent quality, cultivated by a company with good social and environmental practices,” observes Fernando García-Salas, Vice President of AgroFruit, an AgroAmerica subsidiary.
Investing in neighbors and nature
While maintaining focus on commercial success, AgroAmerica is equally committed to improving the welfare of its employees, communities, and the environment. A great deal of investment is poured into the rural, and often disadvantaged, areas where its products are grown. For example, to provide safe drinking water and help reduce the incidence of gastrointestinal infections in children, AgroAmerica donated 400 ecological filters to schools in the states where its employees live, and 690 filters to families in communities near its operations. The company also built a medical clinic in southwestern Guatemala that provides specialized medical services, giving workers access to high-quality general, pre-natal, and dental care, as well as laboratory and pharmacy services, at a nominal cost.
Recognizing the reliance of its enterprise on nature, AgroAmerica’s program of corporate social responsibility endeavors includes environmental causes. In January 2015, the company signed a memorandum of understanding with the World Wildlife Fund to fund efforts aimed at protecting the Mesoamerican Reef, the largest coral reef system in the Americas and second largest in the world.
A potent player
Latin America is home to about 28 percent of the world’s potential new arable land (second only to sub-Saharan Africa), and it also holds the highest share of renewable water resources. These distinct advantages solidify the potential—and necessity—for the region to evolve into a food superpower. In this atmosphere of opportunity, AgroAmerica has already proven itself a fierce and able competitor with no barriers inhibiting continued growth.
SPECIAL REPORT
Number of employees: 12,000 Products: Bananas and palm oil
Certifications: RSPO (Roundtable for Sustainable Palm Oil), BASC (Business Alliance for Secure Commerce), Rainforest Alliance, Global Gap
Website: www.agroamerica.com 114 STRATEGY