|
Research and Markets: New report provides independent forecasts and
competitive intelligence on Mexico's food and drink industry
(M2 PressWIRE Via Acquire Media NewsEdge)
RDATE:09052008
Dublin - Research and Markets
(http://www.researchandmarkets.com/reports/c91154) has announced the
addition of Mexico Food and Drink Report Q2 2008 to their offering.
The Mexico Food and Drink Report provides independent forecasts and
competitive intelligence on Mexicos food and drink industry.
Executive Summary
Under the North American Free Trade Agreement (NAFTA), the start of
2008 saw an end to trade restrictions between Mexico and the US on a
raft of farm commodities including corn, beans, powdered milk and
sugar. These were the last tariffs to be eliminated under the agreement
and the move has implications for entire food and drink industry, as
discussed in BMIs newly-published Q208 Mexico Food & Drink Report.
NAFTA has been far from universally welcomed in Mexico with tens of
thousands of agricultural workers taking to the street to protest about
the new trade rules in February 2008.
However, for many of the country's food and drink producers the
agreement should allow access to a new supply of cheap raw ingredients
that could allow firms to boost margins and/or reduce prices. Mexican
agricultural workers claim that the greater financial assistance
provided to US farmers in the form of subsidies means that their own
products are no longer competitive. This is exacerbated by the
technological advantages of very sophisticated US agricultural
producers. However, the lifting of trade barriers between Mexico and US
has also been criticised on the other side of the border. Many US
commentators suggest that NAFTA has caused a vast number of
manufacturing jobs to be outsourced to Mexico where labour is cheaper.
It has also been suggested that the increase in illegal immigration
from Mexico to the US can be attributed to the demise of rural Mexican
farmers' livelihoods because of an influx of cheap US imports. The
logical move for many agricultural producers would be to move to
products that cannot be grown in the US, such as coffee, however many
agricultural workers found it easier to simply export themselves.
Although it is generally accepted that NAFTA has been positive for the
Mexican economy as a whole, with many industries booming thanks to the
opening up of the massive US market, agricultural producers are perhaps
on the sharp end of this process.
Outside of agriculture many Mexican firms involved in food and drink
production are likely to benefit from the most recent abolishment of
trade restrictions. For example, the Mexican soft drink industry - one
of the world's largest - is expected to make a transition from
sweetening products with relatively expensive Mexican sugar to
sweetening with low-cost corn syrup imported from the US.
Another firm taking advantage of the opening up of the sugar market is
Mexico's Ingenios Santos, which announced a joint venture with US sugar
refiner Imperial Sugar. Sugar refiners such as Imperial and Santos will
now have an enlarged market for their products and can now benefit from
a greater abundance of raw material suppliers. The ongoing benefits of
NAFTA to Mexico's food manufacturing industry was highlighted by
confectionery giant Hershey's decision in January 2008 to close a
number of plants in the US and open a new factory in Monterey, Mexico.
The free trade in confectionery, implemented in 2005, means that firms
can relocate to Mexico and take advantage of the cheap prices for
labour and sugar while still having free access to the massive US
market. Finally, the free trade in corn is likely to benefit the
countries corn tortilla producers, who have had to contend with
rocketing corn price in the last year on the back of rising demand from
the biofuel industry.
Companies Mentioned:
Industrias Bachoco
Grupo Herdez SA de CV
Grupo Maseca SA de CV
Grupo Bimbo SA
Grupo Modelo
Coca-Cola FEMSA
Wal-Mart de Mxico Sa de CV (Walmex)
Controladora Comercial Mexicana SA de CV (CCM)
For more information visit
http://www.researchandmarkets.com/reports/c91154
CONTACT: Laura Wood, Senior Manager, Research and Markets
Fax: +353 1 4100 980
e-mail: press@researchandmarkets.com
((M2 Communications Ltd disclaims all liability for information
provided within M2 PressWIRE. Data supplied by named party/parties.
Further information on M2 PressWIRE can be obtained at
http://www.presswire.net on the world wide web. Inquiries to
info@m2.com)).
Copyright ? 2008 M2 Communications Ltd.
[ Back To TMCnet.com's Homepage ]
|
Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO West, September 16-18, 2008. Los Angeles, California.
