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El Mercado Paisano Opportunities for Small-Scale Mexican Producers in the U.S

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El Mercado Paisano Opportunities for Small-Scale Mexican Producers in the U.S El Mercado Paisano Opportunities for Small-Scale Mexican Producers in the U.S. Nostalgia Market A Report for the Rockefeller Foundation by Rick Mines, Ph.D. Sandra Nichols, Ph.D. September 14, 2005 Under the auspices of: The California Institute for Rural Studies 221 G Street, Davis, CA 95616-4550 Note: This report is intended for internal use only by the Rockefeller Foundation. For additional information please contact Rick Mines ([email protected]) or Sandra Nichols ([email protected]). TABLE OF CONTENTS Acknowledgements.............................................................................................................. i Introduction: The Dilemma of Nostalgia Markets.............................................................. 1 Section I: Background......................................................................................................... 3 Overview of Nostalgia Markets...................................................................................... 3 What are the Products? ............................................................................................... 3 How Important are These Markets?............................................................................ 4 Why Focus on Small Producers? ................................................................................ 6 Tools of Analysis to Determine the Benefits to Small and Medium Producers of the Nostalgia Market............................................................................................................. 6 Region Specificity....................................................................................................... 6 Specialized Products ................................................................................................... 7 High Costs of Entry .................................................................................................... 8 Product Chain.............................................................................................................. 8 The Workings of Nostalgia Markets............................................................................... 9 Problems with the Nostalgia Market Small-Scale Producer Model as a Motor for Development................................................................................................................. 14 Section II: Examples and Case Studies ...................................................................... 16 Examples of Locality-specific Products ....................................................................... 16 Appeal of Locality-specific Products........................................................................ 16 Pinole Jerezano ......................................................................................................... 18 Additional Challenges Facing Small Producers ....................................................... 20 Expanding the U.S. Market for Localized Products ................................................. 20 Mexico-wide Generic Products..................................................................................... 21 Lessons from the Mexico-wide Market .................................................................... 25 Case Studies.................................................................................................................. 26 Oaxacan Foods Case Study........................................................................................... 26 Emergence of Oaxacan Food Merchants .................................................................. 29 Growth in Demand for Oaxacan Foods .................................................................... 31 Methods of Importing ............................................................................................... 33 Product Chains: Tlayudas ......................................................................................... 33 Product Chains: Mole ............................................................................................... 35 Other Oaxacan Products ........................................................................................... 38 Clothing and Crafts................................................................................................... 39 Impact on Home Regions.......................................................................................... 39 Opportunities............................................................................................................. 41 Constraints and Challenges....................................................................................... 42 Charro Gear Case Study................................................................................................ 43 The Charro and the Sport of Charrería ..................................................................... 43 Charro Equipment and Attire.................................................................................... 45 Growth of U.S. Charrería.......................................................................................... 47 Production of Charro Goods ..................................................................................... 50 A Case of Local Production...................................................................................... 51 Charro Goods in the United States............................................................................ 52 Methods of Importing ............................................................................................... 53 Impacts on Home Region.......................................................................................... 54 Constraints to Growth............................................................................................... 55 External Intervention ................................................................................................ 55 Role of the government......................................................................................... 55 Role of the Federación Mexicana de Charrería .................................................... 55 Producer organizations.......................................................................................... 55 Fresh Produce Exports Case Study—Models for Small Producer Wealth Capture by Heavily Migrant and Remittance-Rich Areas in Rural Mexico.................................... 56 Introduction............................................................................................................... 56 Prickly Pears (Tunas) in Zacatecas........................................................................... 57 History of exports to the United States................................................................. 57 Organization of producers..................................................................................... 57 Role of the government......................................................................................... 58 Cost structure ........................................................................................................ 59 Export methods ..................................................................................................... 60 Packers’ share ....................................................................................................... 61 Investment and help from the U.S. side................................................................ 61 Impact on the home region ................................................................................... 62 Mangos of Lombardía, Michoacán........................................................................... 62 History of exports to the United States................................................................. 62 Organization of producers..................................................................................... 63 Role of the government......................................................................................... 65 Cost structure, packers’ share, investment from U.S. side, and methods of export ............................................................................................................................... 65 Impacts on the home region.................................................................................. 68 Another attempt to bring in Michoacano mangos................................................. 68 Edible Tubers from Tuxtepec, Oaxaca ..................................................................... 69 History of exports to the United States................................................................. 69 Organization of producers..................................................................................... 69 Role of the government......................................................................................... 70 Cost structure and export methods........................................................................ 70 Packers’ share ....................................................................................................... 72 Investment and help from the U.S. side................................................................ 72 Impact on the home region ................................................................................... 73 Vegetable Production Under Cover in Izúcar de Matamoros, Puebla...................... 73 History of exports to the United States................................................................
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