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N° Description Upload on
1 To complete this report the consultants from Buen Día software and consulting Inc. used reports from the Food and Agriculture Organization (FAO) and Foreign Direct Investment, World Bank Group(FDI)


Analysis

We found that Dairytown Products Limited could be marketing to Latin America in 4 countries, where in the initial stage of the study the best probabilities were in Mexico.

On further analysis, following information from Food and Agriculture Organization (FAO), we discovered there was a substantial possibility for success in the Agriculture sector (Sector classification from FDI 1), Chemicals & Pharmaceutical sector (Sector classification from FDI 3) and Food & Beverage sector (Sector classification from FDI 8)

The FDI report shows that 92% of total Investment Success Opportunities are centred in four countries: Colombia, Peru, Brazil y Chile with a total of 68 Foreign Direct Investment Opportunities in these countries.


Recommendation

Upon review of acquired information, the consultant team has decided to obtain additional information from the Food and Agriculture Organization (FAO) as Dairytown products limited will need to focus more in countries that import milk products and are more likely to invest in these areas.

The information compiled by the consultant team indicates that the 5 countries that import the highest quantity of milk products are: Mexico, Venezuela, Brazil, Guatemala and Peru.

Our recommendation is to focus the initial search in the first four countries, with an emphasis on Mexico and Venezuela. As for opportunities found for Dairytown Products Limited, 60% of them were in these two countries.

In Mexico, the production of milk has been insufficient, thus requiring importation to satisfy the national supply, in 2008 Mexico imported 44,492 Metric Tons of milk products. Most of the imported milk corresponds to dry skim milk 70%, followed by dry whole milk 26%. The dry skim milk is imported mainly from the European Union.

On the other hand Venezuela has an estimated demand for milk of 135.000 MT per year, in 2008 it imported 43,706 Metric Tons of milk products. The country's domestic dairy industry only covers 67% of demand, and the rest it is covered by imports from New Zealand and the European Union.		 June 15, 2009
 
 
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