Vertical Integration, Thriving Middle Class are Keys to SuKarne’s Success

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SuKarne’s vertical integration model allows the company to control every step of the process, from purchasing the cattle to distribution of the beef. Such a strategy cuts costs while improving quality, and helped SuKarne become the fifth largest grain-fed beef supplier in North America.

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'It’s difficult for competitors to follow the SuKarne model because we have the processing plant next to the feedlot,' Vizcarra said. 'This cuts transportation costs and reduces stress on the animals, which improves the quality of the meat.'

SuKarne’s vertical integration model allows the company to control every step of the process, from purchasing the cattle to distribution of the beef. Such a strategy cuts costs while improving quality, and helped SuKarne become the fifth largest grain-fed beef supplier in North America.

The integrated business model has been so successful that company leaders report that SuKarne has seen a 20 percent growth rate for the past two decades and current sales in excess of US$2.1 billion and exports of US$700 million.

In the driver’s seat at SuKarne is Jesus Vizcarra Calderon. One of Mexico’s most prominent businessmen, Vizcarra led the company from its humble beginnings as a beef trader to the largest Mexican company in the global market for animal protein.

SuKarne has grown exponentially from its home base in Culiacan, the largest city in the state of Sinaloa.

The company’s Integrated Meat Production Unit serves as the model for the entire operation that currently includes five facilities in Mexico and one in Nicaragua.
Every piece of beef in the production chain is traced back to one of these locations.

“It’s difficult for competitors to follow the SuKarne model because we have the processing plant next to the feedlot,” Vizcarra said. “This cuts transportation costs and reduces stress on the animals, which improves the quality of the meat.”

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Lamor Williams
Social Innovation
501-376-0321
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