Mexico
Total Page:16
File Type:pdf, Size:1020Kb
-, , ,FlillR-220 MEXICO:L~}F'EXPOHT~-~EJ<E~, PROFILE. (FOREIGN AGRICULTURA'L EC ONOMrCS REP!.) ! 0'. H • ROBERTS ,'ET AL. ECONOMIC RESEARCH SE,RYICE}' WASHINGTON, DC. rNTERNATIONAL ECONOMICS OIV. MAY 8,6 67P PB86-214426 Mexico:" An Export Matke1; Prof'ile ~ ',' \\ (tJ. S .) Economic Re~\earch Service, washington, DC May 86 c'rf:,'~:J_ ,"'~"":: . ',.'c';!l" ",c",e"i{ ':;'" 6'"' . ",. ..... "",.-:; o I " '!II ,0., CI. ' .., to • • • • USA Ship to: )11~XI(~f) • • • . TECHNICAL INFO MATION SERVICE u.s. DEPARTMENT OF COMMERCE SPRINGFIELD, VA. 22161 U212·IDI REPORT .. ~JCUMENTAnON II. HfIOWT MO• .'PAGE 1 FAER-220 L ...... DItte May 1986 Mex>i.co: An Export Harket Profile .. ~------------------------------------------------------------------i~~----------------------~7. Author(.) L .......nnI.. Orpftlzlitlon IIteot. No. Donna R. Roberts and Myles J. Mielke FAER-220 •. "'~"",I,. O,..ftlailtlon Name .ftd Add_ 10. .......naelllWAftI Unit No. International Economics Division -.---::--------~ Economic Research Service u. CcNItr..ct{C) or Qr8nt<G) Ho. U.S. Department of Agriculture le) Washington, D.C. 20005-4788 14. 15. Sup""omontary Hal.. \ \. ~; Mexico will1i~ely remain one of the top 10 markets for u.s. agricultural products through 1990, altho\'1gh its recent financial difficulties will reduce its imp~rts of nonbasic commodities in the next few years. Its steadily expanding population Ilnd highly variable weather will underpin expected increases of import.~ of grains and oUseeds. The United States is expected to retain its present position" as the dominant supplier of Mexico's agricultural imports because of the two countries' close trading relationships and well-· established marketing channels. Economic recovery in the late eighties wi.111argely determine the size and composition of Mexico's agricultural import bUt. \. 17. Doc:umeftt An.I~i. a. Descriptors Commodities Markets Consumption policies Farm population Import Production It. Idofttlfiors/Opan.EncteCI Term.Trade Agricul.tural import bill Prices as of 10/1/85: Economic recovery Paper: Marketing channels Fiche: $5.95 Mexico Cost codes are: for Papp..r Co COSATI FWtci/Group 02-B, 05-C and AOl for Fiche IL Availability ,,~,~ I .. a.v",~ ClaN ""'It ......u 11............. National Technical Information Service :-. Unclassified 68 5285 Port Royal Road, Springfield, VA 22161 ....u~ CIns (Thla .....' a. PrIce Unclassified See bo:.;; 17 (Sea AHSt-Z3t.l1) CIfIT10NAL I'OMI zn (t-771 C'em.rtJ NTI$-IIS) United States o oDallas Fort Worth .~ MEXICO OSan Antonio State Boundaries - Rivers ,,\ Mountainous areas A Indicates State Capitals * National Capital - Mexico D.F., Cuidad de Mex. D.F. a Cities • Principal Ports of Entry J \ Pacific Ocean GulfofMexico "-f \ GulfofCampeche See map on inside back cover for agricultural regions and complete list of Mexican States. '-'------...~~-----~..-.----.-...... -..-~.-----~.-.--....- ..-...- .. .-".,......-,-~---.- ··-~ ~_W~'_"~ _~ .............. - __ ... ..____ -..:_______ MEXICO: An Export Market Prome. By Donna. H. Roberts and Myles J. Mielke. International Economics Division, Economic Research Service, U.S. Department of AgricultW'e. Foreign Agricultural Ecooomic Report No. 220. f I ABSTRACT Mexico will likely remain oae of the top 10 markets for U.S. agricultural products through 1990, although its recent f"mancial difficulties will reduce its imports of nonbasic commodities in the next few years. Its steadily expanding population and highly variable weather will underpin expected increases of imports of grains and oilseeds. The United States is expected to retain its present position as the dominant supplier of Mexico's agricultural imports because of the two countries' close trading I relationships and well-established marketing channels. Economic recovery in the late ei.ghties will largely determine the size and I composition of Mexico's agricultural import bill. Keywords: Mexico, farm production policies, f&rm consumption - policies, agricultural trade policies, market shares, import If projections. t \ I ACKNOWLEDGMENTS We thank the analysts in the International Economics Division of the Economic Research Service for their comments and suggestions, especially Oswald Blaich, John Link, Nicole Ballenger, and George Gardner. Thanks also to the many analysts in the Foreign Agricultural Service, especially John Montel, Dee Linse, and Anne Grace, who reviewed earlier drafts of this study. Jim Carlin and Tom McDonald provided editorial assistance and review. Many thanks are extended to Norma Giron, Denise Sanchez, Brenda Powell, Mary Oliver, and Linda Turner for their time and effort in preparing the manuscript. Washington, DC 20005- 4788 May 1986 PREFACE Expanding the markets for U.S. agricultural exports is a major goal of the U.S. Department of Agriculture (USDA). In support of this goal, the Economic Research Service (ERS), in cooperation with the Fcreign Agricultural Service (F AS), is preparing export profiles for a number of high-potential markets for U.S. agricultural products. ERS is USDA's major source of agricultural and trade information on foreign countries and regions, while FAS has the key role in helping United States increase its agricultural exports in world markets. Similar profiles have been Of' will be prepared for selected markets in Africa and the Middle East, Asia, and Latin America. See list of titles available elsewhere in this , i publication. This report presents information and analysis on the prospects for U.S. agricultural exports to Mexico. The study surveys the basic factors underlying agricultural supply and demand in Mexico and presents longrun projections of food and agricultural trade. SALES INFORMATION Additional copies of this report can be purchased from the Superintendent of Documents. U.S. Government Printing Office, Washington, DC 20402. Ask for Mexico: An Export Market Profile. Write to the above address for price information or ca11 the GPO order desk at (202) 783-3238. You can also charge your purchase to your VISA, MasterCard, Choice, oX" GPO deposit account. Bulk discounts available. Foreign customers, please add 25 percent extra for postage. Microfiche copies ($5.95 each) can be purchased from the National Technical Information Service, Id6Iltification Section, 5285 Port Royal Road, Springfield, VA 22161. Ask for Mexico: An Export Market Profile. Enclose check or money order, payable to NTIS. For additional information, ca11 the NTIS order desk at (703) 487-44650 The Economic Research Service has no copies for free mailing. ii CONTENTS Page Abbreviations iv Summary vi Introduction 1 Mexico's Demand for Agricultural Products Population 3 Domestic Economy 3 Balance of Payments 4 6 '/ Mexico as a Market for Agricultural Products Agricultural Trade 8 U.S.-Mexican Trade 8 8 The Agricultural Sector Structure of Agriculture 13 Livestock Production 14 Characteristics of Crop Production 18 Production Limita.tions 22 Marketing System 24 25 Agricultural Policies Production Policies 25 Conswnption Policies 26 Trade Policies 31 31 Future Farm Product Demand Food Consumption Patterns 33 33 Trends and Projections for Major Com.modities Prospects for U.S. Exports to Mexico 34 41 Marketing in Mexico Marketing Channels 46 Constraints to Trade 46 48 Conclusions 49 References 50 Appendix: Projection Assumptions and Methodology 54 iii ABBREVIATIONS Spanish Abbreviation Spanish Name English Name ANAGSA P.seguradora Nacional Agricola National Crop and Livestock Insurance :r Ganadera, S.A. Company ANDSA Almacenes Nacionales de National Storage and Deposit Company Deposito, S.A. BANAMEX Banco Nacional de Mexico National Bank of Mexico BANRURAL Banco Nacional de Credito Rural National Rural Credit Bank BORUCONSA Bodegas Rurales de CONASUPO, S.A. Rural Storage Company of CONASUPO CECONCA Centres de CONASUPO de CONASUPO Training Centers Capacitacion CIMMYT Centro Internacional de International Center for the Mejoramiento de Maiz y Trigo Improvement of Corn and Wheat CONASUPERS Supermercados de CONASUPO, S.A. CONASUPO Retail Outlets CONASUPO Compania Nacional de National Popular Subsistence Subsistencias Populares, S.A. Company CORDIMEX Corderla Mexicana National Sisal Company DGEA Direccion General de Directorate General for the Economia Agricola Agricultural Economy DICONSA Distribudores CONASUPO, S.A. CONASUPO Distributors FERTIMEX Fertilizantes Mexicanos, S.A. Mexican Fertilizer Company FIRA Fondos Instituidos en Relacion Funds Instituted for Agriculture a la Agricultura (National Bank of Mexico) ICONSA Industrias CONASUPO, S.A. CONASUPO Industries INMECAFE Instituto Mexicano de Cafe Mexican Coffee'Institute INIA lnstitut9 Nacional de National Institute of Investigaciones Agricolas Agricultural Research LICONSA Leche Industrializado de Milk Industry of CONASUPO CONASUPO, S.A. MICONSA Maiz Industrializado CONASUPO, Com Industry of CONASUPO S.A. PEMEX Petroleos Mexicanos Mexican Petroleum Company iv Spanish-· ·Continued PRONAL Programa Nacional de Alimentacion National Food Program SAM Sistema Alimentario Mexicano Mexican Food System SARH Secretaria de Agricultura y Secretariat of Agriculture and Recursos Hidraulicos Water Resources SECOFIN Secretaria de Comercio y Secretariat of Commerce and Fomento Industrial Industrial Development SPP Secretaria de Programacion y Secretariat of Program and Presupuesto Budgeting TRICONSA Trigos Industrializados de Wheat Industry of CONASUPO CONASUPO. S.A. English CPI Consumer Price Index FAO Food and Agriculture Organization of the United Nations GDP Gross Domestic Product GOM Government