AIB International an Overview

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AIB International World Wide Business Focus on
Mexico
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Kansas Trade Mission to Mexico
13 November, 2007
Presented by Jim Munyon President and CEO, AIB
International
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NAFTA

• North American Free Trade Agreement (NAFTA)
• Signed in 1992 came into effect in 1994
• Implemented to eliminate tariffs and foster
  international trade
• Has resulted in increased trade between Mexico,
  Canada, and the US
• Mexicos trade regime is among the most open in
  the world
• In 2006, trade with Mexico's two northern
  partners accounted for almost 90 of its exports
  and 55 of its imports
• Two-way agricultural trade between the United
  States and Mexico increased 150 percent since the
  NAFTA went into effect, reaching 15.7 billion in
  2005 compared to 6.3 billion in 1993

Source Wikipedia http//en.wikipedia.org/wiki/Eco
nomy_of_Mexico
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Mexican Ag Exports to US Under NAFTA

• Mexicos agricultural exports to the United
  States have more than tripled since 1993,
  reaching a record 8.3 billion in 2005
• The United States is Mexicos largest
  agricultural food products market

Source USDA Benefits of NAFTA PowerPoint
Presentation http//www.fas.usda.gov/itp/Policy/N
AFTA/NAFTA_Overview_2006_files/frame.htm
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U.S. Ag Exports to Mexico Under NAFTA

• U.S. agricultural exports to Mexico have more
  than doubled under NAFTA since 1993, reaching
  9.4 billion in 2004
• Mexico is second largest agricultural market for
  the U.S.

Source USDA Benefits of NAFTA PowerPoint
Presentation http//www.fas.usda.gov/itp/Policy/N
AFTA/NAFTA_Overview_2006_files/frame.htm
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Kansas

• NAFTA partners Canada and Mexico are Kansas
  largest export markets, totaling nearly 2.0
  billion in 2004

• Since NAFTA went into effect, Kansas exports to
  Canada and Mexico have increased by over 120

Source http//trade.businessroundtable.org/trade_
2006/cafta_dr/studies/new_studies/kansas01.pdf
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Challenges

• Meeting Regulatory Requirements
• Sanitation
• Safety
• Quality
• Labeling
• Food Defense
• Becoming more competitive
• Otherwise
• Food Safety Recalls
• Import Detentions
• Refusal of Admission
• Import Alerts

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Recent Refusals of Admission
Mexican Food Exports to the US August 06 July
07
Number of Shipments Refused Reason for Entry Refusal
370 Contamination (Deterioration Unclean)
241 Labeling Issues
239 Pesticide Contamination
166 Salmonella Contamination
151 Unsafe Additives
46 Thermal Processing Issues
21 Poisonous Substances
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AIB InternationalAn Overview
Serving the Food Industry Since 1919
Manhattan, Kansas USA
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AIB VALUES
Integrity Independence Commitment Rigor

• CORE
• Food Safety Advanced Education
• Food Safety Basic Education

SCIENCE DRIVEN APPLICATION
OPERATIONS-DRIVEN APPLICATION

• Food Safety Inspection Audits

• Custom Research
• Other

• Food Defense
• Sustainability
• Other

• Baking Science Technology

• Maintenance Engineering

FOUNDATION
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(No Transcript)
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The Concept We Offer

• The Integrated Quality System (IQS)
• Three structural elements
• Prerequisite Programs (GMPs/ Environment)
  non-negotiable
• Food Safety Programs (HACCP) non-negotiable
• Quality Programs negotiable

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The Concept We Offer

• The Integrated Quality System (IQS) (cont.)
• Three managerial elements
• Education Training
• Skills Knowing how to do it
• Values Understanding why to do it
• Knowledge Adopting global best practices
• Plant Culture
• Policies Doing it right all the time, every
  time
• How Well Are We Doing?
• Inspections Audits Are we meeting
  expectations?
• Performance Indicators Are we prospering?

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The Approach to the Concept

• Food safety is not about checking against a list
  and passing the test
• Food safety is about educating plant personnel in
  knowing
• Where to find and Identify any problems
• How to understand the causes and Control the
  problems
• How to Eliminate root causes
• The benefit is to be able to turn
  food safety into a
  competitive
  advantage
• Mexican exports to Kansas
• Kansas exports to Mexico

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Integrated Quality Systems
Values/Skills/Knowledge Education/Training
IQS
How well we are doing? Inspections/Audits Performa
nce Indicators
Prerequisite Programs (GMPs and Environment)
Quality Programs
Food Safety Program (HACCP)
Plant Culture Quality Policies
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Services Offered Under IQS

• Inspections Audits
• GMPs / Prerequisite Programs
• HACCP
• Quality (QSE)
• GAPs / Agricultural
• Food Defense (Bioterrorism)
• ISO 22000
• Labeling Reviews
• Seminars Training
• GMPs / Prerequisite Programs
• HACCP
• IQS
• GAPs
• Labeling
• Food Defense (Bioterrorism)
• ISO 22000

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AIBs Mission in Mexico

• AIB helps reduce non-negotiable food safety
  issues
• These reductions
• Foster interstate and international commerce
• Protect consumers

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Who Is AIB Mexico?

• Office in Querétaro, México
• Staff
• 6 fulltime inspectors / auditors
• 3 fulltime employees in our Querétaro office
• Devoted Latin American Services Division at
  Headquarters in Manhattan
• Record of success in providing education,
  training, audits, and support to clients in
  Mexico and exporters to Mexico

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AIB in Mexico

• Inspections Audits
• 2006 351 inspections / audits
• 2007 410 inspections / audits
• Public Seminars
• 2006 19 public seminars 560 trained
• 2007 22 public seminars 868 trained so far
• In-plant Training
• 2006 35 events 1047 trained
• 2007 12 events 286 trained so far

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Benefits of Developing Improving Food
Sanitation Safety

• Reduction of regulatory actions in Mexico and US
• Advise Mexican companies on how to resolve issues
  with the FDA, including import alerts
• Improve internal efficiencies
• Reduce customer complaints
• Gain easier access to US and other international
  markets, and vice versa
• Smoother running NAFTA

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AIB on the Internet

• www.aibonline.org (English language site)
• http//americalatina.aibonline.org (Spanish
  language site)