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The New Mexico Chile Pepper Industry: Description, Labor Issues, and Economic Impact

The New Mexico Chile Pepper Industry: Description, Labor Issues, and Economic Impact. Presented By: Teri Hall. Objectives:. Describe the New Mexico Chile Pepper Industry Describe the current labor situation and labor issues relevant to the New Mexico chile pepper industry;

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The New Mexico Chile Pepper Industry: Description, Labor Issues, and Economic Impact

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  1. The New Mexico Chile Pepper Industry: Description, Labor Issues, and Economic Impact Presented By: Teri Hall

  2. Objectives: • Describe the New Mexico Chile Pepper Industry • Describe the current labor situation and labor issues relevant to the New Mexico chile pepper industry; • Provide estimates of the industry’s employment and economic impacts on Doña Ana County; • Evaluate the economic effects of industry changes.

  3. Agriculture and the Chile Pepper Industry in New Mexico and Dona Ana County

  4. Chile Pepper Imports From Mexico Through New Mexico Ports of Entry

  5. Chile Pepper Acreage Harvested in 1999

  6. New Mexico Chile Pepper Industry

  7. Chile Peppers processed in Southern New Mexico by chile type and growing region

  8. Demographics characteristics of hired farm workers in Doña Ana County • 10,000 farm laborers • 3rd grade education • 100% Hispanic descent • 40% U.S. citizens • 20-40% illegal immigrants working • Average family is 4.2 people • Average household income is $7,000/year Source: Local interviews and previously published material

  9. Hand Mechanical 1995 1997 1995 1997 Red Chile 41.22% 49.07% 9.71% 11.56% Jalapeños 42.57% 47.16% 6.54% 7.79% Labor as a percentage of production cost for hand and mechanical chile harvest in Doña Ana and Sierra Counties, 1995, 1997, and 2000. *Labor cost divided by total production costs. Source: Eastman, 1997

  10. Total estimated industry workforce needed by month Source: Eastman, 1996, Processor interviews conducted 5/2001-9/2001

  11. IMpact Analysis for PLANning (IMPLAN) • Direct effects • Indirect effects • Induced Effects • Backward linkages • Full-time equivalents

  12. Green Chile Pepper, Jalapeño, and Red Chile Industry Input-Output Modeling-Doña Ana and Luna Counties Combined Source: IMPLAN 2001, Model Output

  13. Summary • Thesis objectives • Chile pepper processor interviews • Description of the chile pepper industry • Review existing information • Application of IMPLAN

  14. Implications • Inaccurate and limited industry data • Significant “employment” economic impacts on the local economy

  15. Shortcomings • Exercise caution when looking at results • Backward linkages • Accurate representation of the local economy • Agriculture employment data

  16. Recommendations • Unanswered questions • Create new sector within IMPLAN

  17. Questions?

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