Value Chain

 

The traceability of our raw materials and our relationship with suppliers are of prime importance to ensure that our products reach the consumer’s table in good time, in good condition and with the quality for which we are known.

For Grupo Herdez, local or national suppliers are defined as those with manufacturing and transformation plants within Mexican territory.

 

All our producers of agricultural raw materials are located within the Mexican Republic, in the states of Baja California, Campeche, Chiapas, Chihuahua, Coahuila, Durango, Guanajuato, Michoacán, Morelos, Puebla, San Luis Potosí, Sinaloa, Sonora, Tamaulipas, Veracruz, Yucatán and Zacatecas; in 2017, 100 percent of our agricultural purchases were local.

 

In terms of raw materials and materials for packaging, 92 percent of our purchases are local and only 8 percent are sourced from foreign suppliers. (GRI 204-1)

 

Regardless of the type of product or service they provide, all our business partners must sign and adhere to the Code of Conduct for Suppliers, which describes the minimum environmental and social requirements they must meet and evaluates their compliance with labor standards and current environmental regulations. In 2017, 77 new suppliers signed the Code.

Agricultural Sustainability

 

Aided by our Good Practices Manual, training sessions and environmental audits, we accompanied our agricultural suppliers in the adoption of best labor and environmental practices. In 2017, we gave two training sessions on Sustainable Agriculture for integrated crop management, followed up on the regulations concerning the proper use of agricultural chemicals, and monitored compliance with the Good Agricultural Practices Manual.

In addition, to give continuity to the development of these initiatives and to the progress of the Sustainable Agriculture Plan, we have a team of six auditors who evaluate and follow up on the condition of land properties, monitor whether the suppliers are located in ecologically sensitive areas and the measures being introduced to protect them, and the measures being adopted to improve soil quality, increase recycling and reduce waste generation, as well as the working conditions and health of agricultural workers. All this is done through an evaluation list which measures the progress and points of improvement for each supplier. In 2017, 48 agricultural suppliers were audited. (GRI 308-1, GRI 308-2, GRI 414-1, GRI 414-2)