Thursday 18 August 2011

Interview with Rafael Ayala Magdaleno, Director of Cuervo Distilleries.

 Interview with Rafael Ayala Magdaleno, Director of Cuervo Distilleries.
(June 1st, 2011 14:00 GMT+6)

What is your job position at Cuervo Distilleries, and what are the main responsibilities?

Cuervo Distilleries has two locations: the biggest one is located at La Laja, at the municipality of Zapotlanejo, near the exit to Guadalajara Mexico Road. The other location is at tequila (actually two distilleries at the same location).

My main responsibility is to coordinate the activities on both locations, all the tequila productive chain since the agave “piña” is received until tequila is ready to be bottled. I report to the Operations Director. There are other divisions, as the Agriculture Division, which manages the company agave fields and the planning of crop cultivation and harvesting, according to the tequila demand.

In our distilleries we receive the agave piña with the base of the leaves. Roots and leaves are left at the field. Average measurements allocate 51% of weight to the agave piña and 49% to leaves and roots *but basically roots are too shallow and small, so it’s mostly the weight of the leaves). When harvesting the agave, the field worker known as “jimador” removes the agave core with the “coa” and manually cuts the leaves and piñas are piled up to be taken to the distillery.

From your perspective, would it have any impact on agave yield and soil fertility if leaves were not sent back to the fields as organic matter?

Honestly, there is no real benefit for the next crop cycle to leave them on the field. Agave leaves have a very fibrous structure, that takes a lot of time to degrade as organic matter, so there is no significant impact on yield or pH adjustment.

What is the current use given to the tequila co-products, agave bagasse and vinasses?

80% of Mexico total tequila production is from the biggest distilleries: Cuervo, Sauza, Herradura, Patron and Cazadores. Regarding tequila vinasses, there has been investment from the biggest firms towards vinasse treatment, since there is a regulatory framework opposing to discharge it to rivers or sewage.

Small and medium tequila producers are somehow reluctant to perform vinasse treatment due to its cost. Vinasses have a high organic matter concentration (COD and BOD). The biggest companies are performing treatment so vinasses are not discharged to effluents. They are also working on other projects, as:

  • La Laja plant is currently the biggest distillery plant, and they already have installed a vinasse treatment plant consisting on several steps: 1) anaerobic stage (to degrade organic matter producing methane and CO2, as a biogas), 2) aerobic stage (to deplete the rest of organic matter) and disinfection.

Biogas contains around 66 – 70% of methane to be burned and generate renewable energy, and to be used instead of fuel oil, which is obtained from petroleum refining.

Another use for vinasses is to be used on agave fields for irrigation purposes. Once agave is harvested, field is prepared for next cycle adding vinasse. Maximum allowed is 1000 m3 of vinasse per year per ha. Vinasse contains both organic matter and minerals. COD and BOD depends of the cooking process, but based on the cooking step used by Cuervo, Patron and Herradura distilleries average values for COD are 75000-78000 ppm, and BOD are 48000-50000 ppm. The practice of using vinasse for field irrigation has been questioned lately due to potential lixiviation of aquifers.

Bagasse and vinasse is also used to generate compost. Most of vinasses at Tequila factories have been used for compost generation. Bagasse is mixed with vinasse, in order to help fiber degradation (fibrous structure) with nutritional value. This is the only use of bagasse currently.

There have been several attempts, not successful at a larger scale, like producing bagasse pellets as fuel, compacted via extrusion). Another use could be package tubes. Bagasse has a very high calorific power which makes it a good prospect for combustion to generate heat. Even though it has a very high humidity, there is no problem; it can be dried off through several techniques, like furnace heating via recirculation of hot air, etc. There have been also attempts to make paper, construction materials, and mattress filling. But the main problem is that there are not a lot of people interested on investing to make these projects to go on a larger scale.

Lately Cuervo Distillery has been working on the project of using agave bagasse as fuel to replace fuel oil. In order to be used as fuel, humidity needs to be reduced from 65% to at least 50% (mainly by furnace recirculation heating or hot air process, simultaneous drying and burning). This project is already proposed and by the end of this year it’s intended to have bagasse used as fuel and methane generated from vinasse.

Advantage for bagasse as fuel are: reduced carbon emission by not using fuel oil, eliminate sulphur issues carried with fuel oil usage, reduced corrosion in burner exhaust, and it’s also a cost-effective strategy since cost reduction by buying less fuel oil.

Another potential use for bagasse and vinasse is to generate electricity. This would reduce both direct (process-related emissions) and indirect emissions (those from electricity consumption).

For company-owned agave fields, do you use fertilizers? Herbicides, weed control?
Currently our division is working on synergy with the Agricultural Division, which manager is Fernando Lozano. Cuervo has some fields for agave crop, but the rest are leased. There is a R&D department for soil management techniques. With time, soils get more acid, so lime is added to get pH adjusted between 5 – 7.

Fertilizer is being used, according to the nutritional analysis carried on the fields, to determine which kind of minerals is required. Main soil nutrients are potassium, phosphorus and nitrogen. Also zinc, magnesium, manganese and boron are monitored.

Regarding weed control and use of herbicides, it has decreased due to the following situation: it was performed before, but studies showed agave surrounding weeds is actually an indicator of current nutritional deficiencies for agave plant based on color of weeds. What is currently being performed is a set of “good agriculture practices” which is a exchange of good practices between companies, related but not limited to cleaning, disinfection, etc.

What about micro-propagation? I read an article by Rosalba Casas mentioning that one of the biggest distilleries developed this kind of techniques.

Sauza was the only company to perform micro-propagation. Cuervo has a “mother plant” system, which generate around each “mother plant” several smaller plants called “hijuelos” (baby plants). This baby plants depend a lot on the mother’s growth, and when they are 2 years old they are transplanted and after a full life cycle of 7 years they are ready for harvesting. Baby plants need to be separated in order to allow the mother plant to concentrate all its sugars and stop feeding the baby plants.

Do you use mechanical or manual harvesting?

All the industry uses manual harvesting. There have been several attempts to move towards mechanical harvesting but there is a lack of will.

Several years ago, I went to a forum in Irapuato, and met some Polish entrepreneurs from a company with very strong mechanical expertise. They were developing a system to run mechanical harvesting, but it is still under construction.

Do you use tillage for your fields? Which kind of tillage is used?

Tillage is being used currently. There have been several trials to run mechanical planting. Tractors are use to open “surcos”, to plow the fields then apply nutrients and vinasses. Mechanical tillage is not very feasible on hills, steep slopes, etc.

Which kind of energy supply is being used for tequila production?

All the industry uses fuel oil (price around 7 pesos a liter). Diesel is the second alternative but it’s more expensive (price around 10 pesos a liter). Both products are quoted every 15 days. Ther are used mainly for vapor generation.

I read on Lucie Leclert’s thesis about tequila denomination and she mentioned that some distilleries add citric acid or glycerol at their process. Is this practice performed by Cuervo?

Glycerol is used at the final stage of the process in order to increase softness of the finished product (as an additive). Some producers add syrup or caramel color as well.

Citric acid could have been used for acidulation purposes for fermentation process where glycerol is not too convenient to be added since it could lead to loss of sugars. Actually at fermentation, glycerol formation is being measured, since it is not convenient to have it in excess to avoid loss of sugars.

How agave maturity is being monitored regarding optimal sugar content in order to be harvested?

Basically, that would be something desirable to be measured, but for harvesting purposes, agave lifecycle is followed, which is 7 years.

R&D and Operations are working together to determine factors to help to harvest at the optimal sugar (inulin) content. Maturity is relative, since there are plants that at 5 years could be harvested. Currently there is a project about to be developed, which scope is to develop decision criteria based on historical data to measure certain factors as humidity, fiber and inulin content on the plant and develop statistical models. But so far havesting cycle is 7 years.

After 7 years, a long stem starts to grow in the middle of the plant from the core. If it starts growing and it’s not cut, a flower develops using all the sugars in the plant as a source of energy, reducing the available inulin to be processed for tequila. If by the time of harvesting the long flower stem is present (known as quiote), it is discarded with leaves and roots at the field.

In your company, has been any research about obtaining tequila from leaves. I found a US patent for a process of tequila making from agave leaves.

Legally tequila manufacturers are forbidden by law to produce tequila from leaves, based on Mexican norm. Harvesting of agave core must be made cutting leaves totally from it, just leaving base attached to the core. Several years ago, due to the shortage of agave supply, some producers used to leave 5 to 8 cm extra from base. But from 2004, last modification to the Tequila norm states that only agave core can be used to produce tequila.

Which kind of energy supply is used for distillation?

Fuel oil. The distillation uses vapor produced from water heated with fuel oil.

Which types of distillation do you use for tequila making?

In our distilleries we have two kinds of distillation: column and using copper or stainless steel stills (“alambiques”) Still distillation includes double distillation, column distillation is a single step.

On the industry there was a popular belief that still distillation needed to be made on copper stills as synonym of quality. It has pros and cons, for example using stills of stainless steel have the advantage of durability. Currently this kind of distillation equipment is made of stainless steel, with copper serpentines (internally) which is enough to eliminate sulphur generated by fermentation. Active copper absorbs sulphur and make it to react. This was found on a study in Scotland for whisky distillation, which if copper is not cleaned it can generate another kind of compounds.

One disadvantage for stills distillation is that there is no way to fraction; column distillation alcohol gets more concentrated and undesired compounds can be eliminated. Regarding energy consumption, column distillation is more efficient. Still distillation has public preference since it is thought by consumers that tequila has better flavor.

Which pH do you use for inlet stream for fermentation? Do you use S. cerevisae?

Inlet stream for fermentations starts with pH=4.2 and process basically is acid, since outlet flow has a pH of 3.8. Most of the industry uses S. cerevisae.

Rosalba Casas in her article mentiones that Cuervo distillery was the first tequila producer that started to use diffuser to process agave prior to fermentation. Is that correct?

Traditional tequila process uses cooking to hydrolyze inulin and then milling to separate agave bagasse from extracted fructose juice to be fermented. La Laja distillery plant uses a modified process where agave core is milled on diffuser, where fiber is washed on a countercurrent extractor with water. Diffuser has 24 stations, and station 1 receives the agave core, while clean water is entered at station 24. Then at the first stations there is n enriched juice, and is being recollected on a tank with a content of 12% inulin not hydrolyzed.

This has been a discussion topic within the industry, since actually efficiency is higher with diffuser; it creates less furfural (which is a toxic compound for the process).






After the Hurricane: Monterrey first

By Noor-Hal Cuellar         

"True is it that we have seen better days".
William Shakespeare, As You Like It
Hurricane Alex left Monterrey, the third most populous city in Mexico, in difficult conditions and facing big challenges in urban infrastructure caused by the accumulation of intense rainfall.[1] Four months later, things have been changing due to the intervention of the public, private and voluntary sectors in order to rebuild the main arterial streets of Monterrey, as well as to provide help for reconstruction of the city (damaged households, affected industries and commerce, etc).
2010 will be a year not easily forgotten by the citizens of Monterrey. It was the summer when the Hurricane Alex did not look like an immediate hazard, but came to disturb it all, disfiguring and disabling the course of its two main avenues, which were built along the Santa Catarina River, as well as many other streets and avenues severely damaged. Aside of that, Alex took everything which was located on the free space between both avenues; the concessional land used as football fields and other sport facilities, parking lots, flea market, and only left a muddy abundant stream and took its toll of human lives as well.[2]
People could not believe their eyes. Missing chunks of pavement, fallen bridges, pictures were worth a thousand words. And that was only the beginning. Traffic chaos, lack of water and electricity became a daily matter to deal with during the next weeks. And these consequences made no difference between social classes: even the wealthiest areas woke up with newborn rivers streaming down their once peaceful streets, with an unusual force destroying everything in its path, even taking their expensive cars with the flow.[3] And even within the collapse, some took advantage of it: having damaged the water infrastructure of Monterrey due to the hurricane, merchants saw the opportunity of price gouging of bottled water. After a number of complaints, the PROFECO Federal Agency reported that 20 businesses were sanctioned with heavy fines since they were found to be overcharging bottled water prices during inspections through the city.[4] We could keep discussing all the economic, environmental and social effects brought by Hurricane Alex. But I would like to focus more in the response that engaged stakeholders have provided over the following four months.
Voluntary aid came flowing from a different kind of sources. In this the role of social networks and Internet diffusion helped tremendously to spread the current situation in a fast manner throughout the entire world.[5][6] Also the informal networks of alumni of the main universities of Monterrey, those who generally keep a sense of loyalty towards this city, were part of this information effort. That is how videos and slide presentations flooded the Internet, some of them in order to create awareness that could lead to an appropriate aid response.[7] All of it to help Monterrey inhabitants, who were going to deal with this as well as they were already living with violence caused by drug wars. [8]Another important source of relief was provided by the television media. A few days after the rainfall, there was a joint effort from the Mexican television companies, and overcoming the normal barriers of competition among all of them, they organized a massive concert named "Unidos Somos Nuevo León" (Together We Are Nuevo Leon) to raise funds and support for the victims.[9] This action also brought responses from entertainment celebrities, who donated funds to several local charity organizations. Sport football clubs as well organized aid drives in order to collect humanitarian aid for affected people.[10]
Private sector was eager to contribute, or so it seems so due to the impact it had to all the city's industrial activities. For example, one of the consequences of the severe devastation from the storm was the total disruption during several days of rail service in Nuevo Leon. Several bridges were totally damaged and fallen.[11] Of course, these unexpected delays on railroad system had an impact on supply chain activities for big firms, as Ford and General Motors, to mention some of them.[12][13] The rest of industrial plants were also affected due to traffic chaos and lack of water and electricity.
However, private and voluntary aid was directed towards the relief efforts used to help local residents to rebuild their homes, and delivering aid packages.[14] For the main challenge, reconstructing the damaged urban infrastructure, public sector has been in charge. Recently, the federal government inaugurated the Second Phase of Reconstruction Works and the President in his recent visit to Monterrey, announced the increase of Disaster Federal Funds to ten thousand million of pesos (approximately five hundred million of sterling pounds).[15] When the works started back in July, the initial estimated amount was half a billion of pesos (approximately one billion of sterling pounds) only to repair the affected sections of the streets listed before (5.6 out of 23 km for Constitucion, and 5.9 out of 24 km for Morones Prieto). But today the studies conducted from different universities indicate that it is necessary to increase the river’s hydraulic area, as well as to perform modification on several sections of the arterial streets to be elevated in order to avoid potential floods in the future. According to the delegate of the Secretary of Transportation and Communications, there is a ninety percent of completion of the First Phase of reconstruction. Second phase will mainly consist of complementary work with the firm intention to shield the viaducts so potential rainfall will not affect them.[16] The State Governor Rodrigo Medina, as well has declared that “we need to make sure that the works done reflect the needs and are suitable for this community, specifically regarding technical specifications in order to resist any potential similar hurricane threats”.[17]
We might be able to justify the flow of funds towards the redevelopment of Monterrey based on how severe were the impact and how relevant is the city for Mexican economy. It is understandable then why Monterrey will be first in receiving the aid to overcome the consequences of the hurricane; but for those who were affected through the rest of Northeastern Mexico due to flooding farmlands and households, it could not be so. Also all those affected by the closure of the Matamoros-Reynosa toll way, due to its partial flooding due to the opening of the dams during last summer which caused increased levels of the Rio Grande, where federal funds will be applied but not as a priority.[18] Same happens with the common landowners with farmlands still flooded and disabled for agriculture due to the dam opening (more than 4,000 ha).[19] Based on the personal appreciation of the direct stakeholders, mainly low-income people who have lost it all, relief funds mainly from local and state governments are not enough. [20] In these examples, damage is not enough to be set as a priority in the eyes of federal government when there are some other urgent matters to work on and yield faster results, like we have mentioned it is reconstruct the city that yields the highest business income of the country and is the capital of the state that generates 8% of the GDP.[21] Aside of that, current social conditions are not the optimal due the strong war against drug traffic that has been the motto of this federal government. The beautiful intention behind this, aside providing safety to the people, is to avoid the main issue that is driving off the area potential investment and economic growth since it is being considered unsafe - during the last two years; several travel warnings for the region have been issued by the U.S. Department of State. And this is happening to the place once chosen by the UN to host the International Conference on Financing for Development in 2002.[22] Obviously, it would be quite ironic if development is not prioritized after the hurricane here, at least if social disturbances cannot be controlled at all.




[1] Anon, 2010. “Monterrey, colapsada por fuertes lluvias”. Informador, [internet] 2 July. Available at http://www.informador.com.mx/mexico/2010/214861/6/monterrey-colapsada-por-fuertes-lluvias.htm [Accessed 10 November 2010]
[2] Anon, 2010. “Arrastra autos y puestos crecida  de río Santa Catarina en NL”. Telediario, [internet] 1 July. Available at http://www.telediario.mx/node/24414 [Accessed 10 November 2010]
[3] Anon, 2010. “Sufre Nuevo León estela de destrucción de Alex”. Milenio, [internet] 2 July. Available at http://www.milenio.com/node/478174 [Accessed 10 November 2010]
[4] Zuñiga, F., 2010. “Sanciona Profeco  a cerca de 20 empresas por subir precios en agua”. Telediario, [internet] Available at http://www.telediario.mx/node/25583 [Accessed 10 November 2010]
[5] Garza, J., 2010. “Ayuda para los damnificados del Huracán Alex” MetMEX [internet] 7 July. Available at http://www.metmex.net/2010/07/ayuda-para-los-damnificados-del-huracan-alex/ [Accessed 10 November 2010]
[6] Architecture for humanity, 2010. The Impact of Hurricane Alex. [Online] (Updated 22 July 2010) Available at http://architectureforhumanity.org/updates/2010-07-22-the-impact-of-hurricane-alex [Accessed 11 November 2010]
[7] RegioMty400, 2010. Ayuda a Monterrey 2010 [Online video] (Updated 12 July 2010) Available at http://www.youtube.com/watch?v=V4VRH7e5Z7U [Accessed 10 November 2010]
[8] Emmott, R., “Drug war hits Mexico’s richest city”. Reuters, [internet] Available at http://www.reuters.com/article/idUSTRE6674RL20100708?pageNumber=1 [Accessed 10 November 2010]
[9] Anon, 2010. “Concierto Unidos Somos Nuevo León”. Telediario, [internet] 14 July. Available at http://www.telediario.mx/node/26834 [Accessed 11 November 2010]
[10] CEMEX MEDIA CENTER STORIES, 2010. CEMEX in Mexico continues efforts to assist victims of hurricane Alex in Nuevo Leon, Mexico. [Online] (Updated 13 July 2010) Available at http://www.cemex.com/mc/stories/mc_st071310_2.asp?b=st [Accessed 11 November 2010]
[11] García, L., 2010.“Detiene Alex marcha del ferrocarril en NL”. Telediario, [internet] 7 July. Available at http://www.telediario.mx/node/25570 [Accessed 11 November 2010]
[12] Tokic, A., 2010. “2011 Ford Fiestas delayed, customers offered $50 gift cards”. Autoguide, [internet] 18 August. Available at http://www.autoguide.com/auto-news/2010/08/2011-ford-fiestas-delayed-customers-offered-50-gift-cards.html [Accessed 11 November 2010]
[13] Anon, 2010. “GM cancels Mich. Plant’s Friday shifts due to delivery woes”. FoxBusiness, [internet] 15 July. Available at http://www.foxbusiness.com/markets/2010/07/15/gm-cancels-mich-plants-friday-shifts-delivery-woes-ap/ [Accessed 11 November 2010]
[14] CSRwire, 2010. Johnson Controls donates $130,000 to support hurricane relief efforts in Monterrey. [Online] (Updated 2 August 2010) Available at http://www.csrwire.com/press_releases/30197-Johnson-Controls-donates-130-000-to-support-hurricane-relief-efforts-in-Monterrey-Mexico [Accessed 11 November 2010]
[15] Presidencia de la República, 2010. El Presidente Calderón en la puesta en marcha de la segunda etapa de reconstrucción de los daños ocasionados por el huracán Alex. [Online] (Updated 29 October 2010) Available at http://www.presidencia.gob.mx/index.php?DNA=85&page=1&Prensa=15154&Contenido=61068 [Accessed 11 November 2010]
[16] Anon, 2010. “Aumentará área hidráulica del río Santa Catarina”. Milenio, [internet] Available at http://www.milenio.com/node/552934 [Accessed 10 November 2010]
[17] Oviedo, M., 2010. “Inician trabajos de reconstrucción en Monterrey, tras paso de Alex”. HoraCero, [internet] 22 July. Available at http://www.horacero.com.mx/noticia/index.asp?id=NHCVL34588 [Accessed 10 November 2010]
[18] Anon, 2010. “Graves pérdidas por cierre de autopista”. El Bravo, [internet]. Available at http://www.elbravomatamoros.com/noticias.aspx?seccion=1&noticia=262612 [Accessed 11 November 2010]
[19] Anon, 2010. “Caos y emergencia en ejidos inundados”. El Bravo, [internet]. Available at http://www.elbravomatamoros.com/noticias.aspx?seccion=1&noticia=239666 [Accessed 11 November 2010]
[20] Mendez, A., 2010. “Agradecen al municipio el apoyo a ejidos inundados, pero no es suficiente”. El Despertar. [internet]. 12 October. Available at http://www.despertardetamaulipas.com/nota.php?art_ID=62003 [Accessed 11 Noviembre 2010]
[21] Campos, L., 2010. “Después del PRI… el diluvio”, El Mañana, [internet]. 21 July. [Accessed 11 November 2010]
[22] UN, 2002. International Conference on Financing for Development. [Online] (Updated 10 February 2003) Available at http://www.un.org/esa/ffd/ffdconf/ [Accessed 11 November 2010]

APPENDIX

1.        “Ayuda a Monterrey 2010” video from Youtube, user RegioMty400
2.       “Monterrey” slide presentation from personal e-mail.