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Agriculture and US-Mexico Border Region

Agriculture and US-Mexico Border Region. XVI Border Legislative Conference, Santa Fe, N.M., October 19, 2007. Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación. Agenda. Market integration Mexican policies to promote agribusiness Migration and agriculture

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Agriculture and US-Mexico Border Region

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  1. Agriculture and US-Mexico Border Region XVI Border Legislative Conference, Santa Fe, N.M., October 19, 2007 Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación

  2. Agenda Market integration Mexican policies to promote agribusiness Migration and agriculture Further integration issues Final remarks Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación

  3. Market Geography Geography: • 10 border states • 2,000 miles of border • Population: 92 million Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación

  4. Food Culture US Consumers: • Spend 18 billion USD a year on “Mexican Food” • Spend 1 billion USD a year on tortillas • Spend more on salsa than on ketchup Mexican Consumers: • Increased consumption in fast food in US franchises Both: • Fresh Fruits, Vegetables and Organics can be considered superior goods (higher income of consumers implies higher demand in those goods) Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación

  5. Market Integration Since NAFTA: • Mexican agrifood exports to US have increased 129% • US agrifood exports to Mexico have increased 189% Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación

  6. Mexican policies to promote Agribusiness Federal Government: As a result of government macroeconomic policies, Mexico offers an attractive business environment: • Low country risk level • Investment grade economy • Low inflation rates • Sound public finances • Historic levels of monetary reserves Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación

  7. Baja California Baja California Sonora Sonora Chihuahua Chihuahua Coahuila Coahuila Nuevo Leon Nuevo Leon Tamaulipas Tamaulipas Avian Influenza Avian Flu Eradicated Eradicated Free Free Free Free Free Free Free Free Free Free Newcastle disease Newcastle Free Free Free Free Free Free Free Free Free Free Free Free Avian Salmonella Avian Salmonellosis Free Free Free Free Free Free Free Free Free Free Free Free Pork Fever Classic Swine Fever Free Free Free Free Free Free Free Free Free Free Free Free Aujezky Aujezky’s disease Free Free Free Free Free Free Control Control Eradicated Eradicated Free Free Bovine Tuberculosis Bovine Tuberculosis Control Control Eradicated Eradicated Eradicated Eradicated Eradicated Eradicated Eradicated Eradicated Eradicated Eradicated Brucelosis Brucellosis Control Control Eradicated Eradicated Control Control Control Control Control Control Control Control Bovine Paralitic Paralytic Rabies Bovine Rabies Free Free Free Free Free Free Free Free Free Free Control Control Tics Ticks Free Free Free Free Free Free Control Control Control Control Control Control Varroosis Varroasis Free Free Control Control Control Control Control Control Control Control Control Control Mexican policies to promote Agribusiness SAGARPA: • Animal Health Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación

  8. Mexican policies to promote Agribusiness SAGARPA: • Med fruit fly eradication campaign Free Low prevalence Low control Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación

  9. Mexican policies to promote Agribusiness Undersecretariat of Agribusiness Development: • Market Oriented Program • Determine strategic products • Realign productivity programs • Shift production from traditional to strategic commodities • Public-private joint ventures • Consulting Services • Investment Promotion • Market Analysis Services Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación

  10. Mexican policies to promote Agribusiness • By: • Planning with a long-term perspective • Focusing on the high value crops • Restructuring and aligning the programs within SAGARPA • Investing in the key infrastructure • Mexico will: • Increase competitiveness and exports • Attract foreign direct investment to the sector • Increase agricultural trade Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación

  11. Agriculture and Rural Migration Source: SAGARPA Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación

  12. Further integration issues • Further harmonization of agricultural policies in North America. • Developing compatible sanitary, phytosanitary and food security policies to strengthen a common trade region. • A North America wide agreement is needed to address biosecurity and agricultural supply chain issues. • Fostering research, innovation and promotion of “North American” products.

  13. Final Remarks The competitiveness of the North American agrifood market depends on the free flow of agricultural products within the region. The harmonization of sanitary policies is necessary to facilitate the flow of agricultural products. Agricultural business and labor depend on each other. Mexico needs its rural labor force to increase the level of development and well-being of its agricultural sector. SAGARPA will promote the high market value and labor intensive agricultural production. Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación

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