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Technology to Increase Profitability of Small Producers

Isai Mendoza - Grupo INDERS
Director General

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Perla Velasco By Perla Velasco | Journalist & Industry Analyst - Thu, 02/08/2024 - 09:55

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Q: What specific mission does Grupo INDERS serve in the agroalimentary sector, and how has this evolved since the company’s inception?

A: Through our multidisciplinary team, our mission is to provide solutions to small producers who lack access to the full range of technologies available in the market. Our goal is for agriculture to be profitable, sustainable, and prosperous from an environmental, economic, and even social perspective.

 

Q: What is the biggest challenge small producers face?

A: Mexico has two types of agriculture: that which is oriented toward profitability and another that is focused on food security. Grupo INDERS works mainly with agriculture for food security, which involves the production of basic foods essential for subsistence. Small producers face significant challenges in terms of productivity, as their yields are low. Thus, they have limited access to supplies and often have to buy them at higher costs. The implementation and adoption of new methods and technologies are additional obstacles for producers, resulting in low productivity and lack of profitability and competitiveness. We address these issues and ensure that producers are not only more productive, but also profitable and competitive. 

 

Mexico is diverse, which is why the application of technology is challenging, since each region is different. Technology has been integrated into every aspect of our operations, from seed to substrate to automation. Agriculture 4.0 allows for the precise control of irrigation and nutrients through machines. Our objective is to apply technology in a way that increases the profitability of production, both for large and small producers. Through research and training, we seek to put technology into practice, providing practical and effective solutions for each segment of the production chain.

 

Q: What role does Grupo INDERS play in enhancing agricultural production?

A: Our role is to guide the producer, showing them that their experience is valuable while helping them improve their methods. We first observe how they carry out their processes and then suggest improvements, whether through irrigation systems, automation, improved seeds, or organic fertilizers. In addition to providing the necessary supplies, we provide technical assistance. This is crucial, since it is useless to introduce technology and the latest products if we do not train the producer to use them effectively. 

 

Our goal is for producers to achieve both quantity and quality in their harvests. This not only increases the value of their products in the local market, but also gives them the possibility of expanding to regional, national, and even international markets through an organizational and strategic approach.

Q: What states and regions has Grupo INDERS significantly impacted, and how do you choose the areas for your projects?

A: We have extensive experience in rural communities characterized by their high degree of marginalization. In 2017, we worked on a project in a remote area in Arroyo Triste, Oaxaca. Despite the logistical difficulties to reach the location, we observed significant productive potential. We work mainly in the south and southeast of Mexico, mostly in Oaxaca, Chiapas, Guerrero, Puebla, and Veracruz. We have visited 24 states, and although we have also worked in the north, our attention has been focused mainly on the central, southern and southeastern parts of the country.

 

Q: How does Grupo INDERS incorporate principles of sustainable development into its projects and operational practices?

A: INDERS stands for Sustainable Rural Engineering and Development. Sustainability can be seen from an economic or environmental perspective. We want to combine practices to make them both environmentally and economically sustainable. For example, by using organic products, it is possible to be environmentally sustainable; by adding a chemical fertilizer solution, it is also possible to be economically sustainable. We seek a balance between both terms. We are also prioritizing the efficient use of water, since it is becoming increasingly scarce. Through technologies such as drip irrigation systems, we can produce water savings of up to 70%.

 

Our projects also promote the use of renewable technologies, such as solar panels. A producer who spends up to MX$100,000 (US$5,800) on gasoline to irrigate 50ha of corn can invest that same budget in a photovoltaic irrigation system, which will be a one-time investment that will last over 20 years. By making production profitable, clients can gradually adopt more advanced technologies, such as photovoltaic systems.

 

Q: How does Grupo INDERS envision its role in the agroalimentary sector in the coming years?

A: We will be highly active in the coming years because we have many dreams to fulfill. Our main objective is to offer comprehensive and complete solutions to producers, especially small and medium-sized businesses. We will achieve this through a value proposition that involves the sale of inputs through different marketing channels. Our goal is to develop many strategically located sales points, especially in the center, south, and southeast of the country, and explore e-commerce.

 

Our competitive advantage lies in our complete solutions that benefit both new and experienced producers, providing them with everything they need from supplies to training. We have specialists in nutrition, pests, diseases, irrigation systems, infrastructure, and more within our multidisciplinary team. Our "INDERS Academy" platform allows producers to take courses from anywhere in the country. This year, the challenge is to incorporate all our services into an app through which producers can buy, request visits from technical advisers, and train.

 

 

Grupo INDERS is a Mexican developer of agricultural and environmental real estate projects. With a focus on sustainability, it has executed over 1,000 projects, fostering social and economic well-being through holistic solutions.

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