Hugo Z Flores
ERNESTO VILLARREAL JAUREGUI
manuel garcia
Guillermo Ramirez
EGADE Business School Tecnologico de Monterrey
Consuelo Garcia-de-la-torre
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“Ganadería 20X” improves the efficiency of the feedlot, through technology, multiple nutritional techniques, and taking care of animals, maximizing the food resources. All of these resources will help generate a wealth for the feedlot and a sustainable ecosystem for the industry.
We will show you the three main techniques of innovation for the feedlot:
1. “Rodado de Maíz”: A technique used by multiple countries, is the utilization of the corn that helps to use the full amount of corn starch which increases the efficiency from 82% to 98%. This technique helps increase the performance of the feedlot and decrease the animal waste. It is also an ancient technique and it’s been helpful throughout the years.
2. Formula design: These formula designs and substitutes to the traditional supplies, have given a competitive advantage to “Ganadería 20X”, by taking advantage of the supplies from other industries. One of the most interesting points is that the company commercializes their own formulas, to have economies of scale and take advantage of low costs.
3. Local supply chain: Thanks to a work done with the Association of Feedlots of the Northeast, they’ve helped the developing of agricultures from “El Prado” in Galeana, Nuevo León. In 2007, they both bought 180 tons of corn from these agricultures, in which the production increased from 5,000 in 2018 to 6,500 in 2019. This has helped decrease the migration of rural people to the city, having increased the transfer of knowledge from generation to generation and helping increase the quantity of children that assist to local schools. This is an efficient mechanism for small producers and agricultures, helping provide a fair commerce ecosystem.
“Ganadería 20X” had been growing rapidly over the last 15 years, with a 700% growth from 15 cattle heads to 8,000. Their strategy is to produce the best quality of meat thanks to their processes of innovation and to have a bigger market share locally and international. Currently the US market has been very interested in buying meat from Mexico, having 20 tons of meat that they export to the US.
The company is aware of the growth but also their responsibility with the community and the ecosystem involved. The generation of employees, the developing of small communities in Nuevo León, the developing of a productive local supply chain, with the use of fewer resources, have managed to position “Generation 20X” as a local responsible sustainable company.
“Ganadería 20X” has as we mention several impacts of these strategy. The first was the use of innovation which helped increase the use of resources and the generation of employees. This helped local communities’ population and avoiding migrating into the city. The impact with this is a bigger developing of the care taking and wealth of the animal. Also, a bigger demand of food thanks to the population growth and also to have higher quality standards towards the meat they produce.
“Ganadería 20X” intends to benefit economically from these practices. As we mentioned earlier, the company expects to reduce the variable and fixed costs, seeking efficiency in input costs and scale economies. Also, Ganadería 20X will benefit by increasing the performance of corn by the ¨Rodado de Maíz¨ resulting in a bigger profit for the company. Finally, the stakeholders will also benefit; as a result of these practices the costs of the final product will be cheaper and the externalities will be positive for the environment.
The increase of the local population with the increase of food demand becomes relevant for the next decades. It’s not only the use of innovation techniques, but also to guarantee the production of quality meat and food at prices affordable for the population in general. To strengthen the supply chain in the Mexican field will help to have a competitive industry and boost the economic development for the communities that participate in the primary sector. These innovations have helped the small local agricultures and to have a better environment for everyone.
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“Ganadería 20X” is a feedlot company located in Salinas Victoria, Nuevo León, México. As a local and small company, they had to struggle with the challenge of developing a business case that competes with big and international companies, especially in nutrition, and saving cost in supplies to have better performance. With just 20 employees, they manage to have sales of $4 million USD and approximately 8,000 cattle heads. A growing business throughout the years and in a country that is sixth worldwide in meat production, “Ganadería 20X” is not done yet and throughout this project, we will see this company committed to corporate sustainability.